1. Purchasing Using Discretionary Authority

2. Presenters: Karla Ravida John Corbett Dan Ryan
Office of the State Comptroller
Bureau of State Expenditures and Bureau of Contracts

3. Agenda Resources Order of Procurement Purchasing Requirements
Overcome Pitfalls

4. The Purpose
The purpose of State procurement is to facilitate each State agency's mission while protecting the interests of the State and its taxpayers and promoting fairness in contracting with the business community.

5. Procurement Goals
Guard against favoritism, improvidence, extravagance, fraud and corruption
Ensure that the results meet agency needs
Protect the interests of the State and its taxpayers
State agencies should make a responsible effort to administer a process which provides maximum opportunities for vendors to compete

6. Resources NYS Finance Law §163 NYS Finance Law §112 NYSCRR
NYS Executive Law Article 15-A
NYS Education Law
The Economic Development Law – Article 4C
OGS Procurement Guidelines
OSC A and G Bulletins, DOB Budget Bulletins
Agency Policies, Procedures and Guidelines

7. Ask Yourself What are you looking to buy?
Is your purchase a Commodity, Service, or Technology Related?
What is the estimated cost?
Is your estimated cost greater than or less than your Formal Competitive Bidding Limits?
What process do you follow?

8. Order of Procurement Preferred Source Commodities Services
Centralized Commodity Contracts
Procure on your own

9. Preferred Source Commodities
Department of Mental Health
Not subject to competitive procurement requirements.

10. Preferred Source Services
Department of Mental Health
Not subject to competitive procurement requirements.

11. Centralized Commodity Contracts
PCXXXX
Buying Power
Exceptions to the use of PSG contracts include:
“OGS or Less” - agencies may competitively procure items otherwise available on a centralized contract when the resultant price is less, in accordance with “OGS or Less” Guidelines.
Consortia procurements - when justified by price, State agencies may purchase from consortia, in lieu of using a centralized contract, in accordance with Consortia Guidelines.

12. Centralized Contracts for Services and Technology
PSXXXX or PTXXXX
The use of most centralized service and technology contracts is at the option of State agencies.
The State Procurement Council may, however, mandate the use of certain service and technology contracts where warranted.
Bulk discounts
20% Rule

13. If your answer is NO, procure on your own
Did a Preferred Source or OGS Centralized Commodity Contract meet your need?
If your answer is NO, procure on your own

14. Requirements Reasonableness of Price / Reasonableness of Vendor
Competition
Ensure the procurement process produces the best possible product at a reasonable price
Guard against favoritism, fraud and collusion

15. Discretionary Buying Thresholds
Purchases under the Discretionary Buying Threshold do not require a formal competitive procurement process.
When procuring under the Discretionary Buying Threshold, the agency has the responsibility to obtain the commodities or services at a reasonable cost.

16. Ask Yourself What is the estimated cost?
Is your estimated cost greater than or less than your Formal Competitive Bidding Limits?
What do you think your estimated Annual cost will be?
One Year Rule

17. City University of New York (CUNY) State University of New York (SUNY)
Advertising Limits
State Agencies
City University of New York (CUNY)
State University of New York (SUNY)
Advertising Limits
Quarterly Ad
$5,000
$10,000
Individual Ad
$15,000
$20,000

18. Discretionary Contract Reporter Ad
ALTERNATIVE LANGUAGE #1
Agency X intends to purchase (insert project description, e.g., 1,000 widgets) pursuant to its discretionary authority under State Finance Law section 163(6), which authorizes purchases without a formal competitive process in certain circumstances, including purchases from New York State small businesses, from businesses certified pursuant to Article 15-A of the New York State Executive Law and, if applicable, from businesses selling commodities or technology that are recycled or remanufactured. Interested parties should contact (agency purchasing officer) to discuss this opportunity.

19. Discretionary Contract Reporter Ad
ALTERNATIVE LANGUAGE #2
Agency X intends to purchase (insert project description, e.g., 1,000 widgets), pursuant to its discretionary authority under State Finance Law section 163(6). Interested parties should contact (agency purchasing officer) to discuss this opportunity.

20. Discretionary Contract Reporter Ad
ALTERNATIVE LANGUAGE #3
Agency X intends to purchase [1,000 widgets] pursuant to its discretionary purchasing authority under State Finance Law Section This procurement opportunity is limited to NYS Small Businesses, businesses certified pursuant to Article 15-A of the NYS Executive Law and, if applicable, businesses selling recycled or remanufactured commodities or technology.

21. Do not specify a particular vendor

22. Discretionary Purchases Exceeding OSC Contract Approval Threshold
Avoid Formalities
Reasonableness of Price
Reasonableness of Transaction
Compliance with Rules, Regulations and Law

23. Discretionary Thresholds
Limit
General Purchases
M/WBE
Small Business
Recycled/Remanufactured
Printing

24. Discretionary Thresholds
State
Agencies
City University of New York
(CUNY)
State University of New York
(SUNY)
Formal Competitive Bidding Limits
General Purchases
$50,000
$20,000
$125,000
Printing
$5,000
M/WBE, Recycled/Remanufactured
and Small Business
$100,000
Comptroller's Office Pre-approval
All Purchases
$50,000 if single or sole source
$250,000 (unless SUNY doesn't certify to compliance with the IC act for that campus)
$125,000 for single or sole source

25. Procurement Record Purchase Order Vendor Invoice
Vendor’s Quotation/Bid
Selection of Vendor/Reasonableness of Price
Contract Reporter Ad (if required)
Exemption Letter – Preferred Source or ‘OGS or less’
Recycled/Remanufactured Certification (if required)
Procurement Lobbying Documentation (if required)

26. Avoid Pitfalls Get the most from your Purchases Be Specific Monitoring
Do your homework
OGS or less
Talk to everyone – don’t reinvent the wheel

27. QUESTIONS?? Questions and Answers
New York State Procurement Council Guidelines
OSC Help Desk

28. Presenter Contact Information
Karla Ravida
Bureau of State Expenditures
Office of the State Comptroller
John Corbett
Bureau of State Expenditures
Office of the State Comptroller
OSC Website:

29. Presenter Contact Information
Dan Ryan
Bureau of Contracts
Office of the State Comptroller
OSC Website: