1. FORUM 2004

2. PROCUREMENT OPTIONS Presented by:
Barbara Norton – OSC Bureau of Contracts
Bruce Hallenbeck- OGS Procurement Services

3. PREFERRED SOURCES Correctional Services (Corcraft) – Commodities only
Industries for the Blind of New York State (IBNYS)
NYS Industries for the Disabled (NYSID)
Buy “OMH”
Qualified Veterans’ Workshop
FORUM 2004

4. Preferred Sources
If product meets form, function and utility (i.e.. quality, quantity, delivery, packaging) order should be placed with appropriate preferred source
If does not meet form, function and utility, must document in Procurement Record
FORUM 2004

5. OGS CONTRACTS Why Use OGS Contracts
Expedient – generally place an order
No need to bid
No need for OSC or AG approval (mini-bids may need OSC approval)
No need to advertise in Contract Reporter
FORUM 2004

6. Filed Requirements Contracts
Covers specific delivery points and estimated quantities
Guaranteed source of supply for critical commodities
Agencies “file” their requirements prior to establishment of contract
Contractual obligation to purchase
Examples include rock salt and fuels
FORUM 2004

7. Multi-State Contracts
Permits participation by NYS authorized users as well as other entities
Contract administered by one of the participating entities
Minnesota Multi-State Drug Contract
FORUM 2004

8. Prime Vendor Contracts
Comprehensive contract; source for broad range of goods and/or services within a given market
May be awarded to single or multiple vendors
Examples include food contract, office supplies and industrial supplies
FORUM 2004

9. Brand Bid Contracts
Issuance of multiple contracts or a single contract with multiple lots for different brands of a similar product
Provides customer the widest selection of products
Examples include printer contracts, copier contract, mailing machines
FORUM 2004

10. Continuous/Periodic Recruitment
Used in long term contracts
Allows OGS/PSG to accept bids after the bid opening, adding vendors after the original award
Included in printers, microcomputers, books and many service contracts, etc.
FORUM 2004

11. OGS Piggyback Agreements
OGS piggybacks onto existing contracts developed by other governmental agencies (federal, political subdivision or other states) creating a NYS contract
Includes additional terms as they relate to NY State procurement rules
FORUM 2004

12. OGS Negotiated Contracts
Established by agreements between OGS and a vendor in lieu of issuing a bid
May include continuous/periodic recruitment
Printer contract is a negotiated contract
FORUM 2004

13. Backdrop Contract
Consists of a pool of pre-qualified contractors who are eligible to participate in the contract’s Mini-Bid process or other specified selection process
Examples include elevator maintenance, telephone PBX, and IT services
FORUM 2004

14. Discretionary Purchases
AGENCY STRATEGIES
Discretionary Purchases
Not subject to State’s competitive bidding requirements
$15,000 for most State agencies
$15,000 to $50,000 if purchased from NYS small business, M/WBE or recycled/remanufactured products
Guidelines on website at:
FORUM 2004

15. OGS or Less
Allows purchase from other than State contract if lower prices or terms are more economically efficient to the State agency.
Contractor must be given opportunity to match pricing.
“OGS or Less” purchases must meet requirements of law.
FORUM 2004

16. Discretionary Purchases
Under $15,000:
- Procurement record must support selection of vendor and reasonableness of price
- Must advertise quarterly in the Contract Reporter for anticipated purchases between $5,000-$15,000
FORUM 2004

17. Discretionary Purchases
$15,000 - $50,000:
- Procurement record must support selection of vendor and reasonableness of price
- Must advertise in Contract Reporter
- Must submit to OSC for approval
FORUM 2004

18. Small Business Initiative
For products not available from Preferred Sources or OGS contracts
For procurements from small, minority or women owned NYS businesses
For purchases up to $50,000 without advertising in Contract Reporter or formal bid
Purchases over $15,000 require OSC approval
Agency responsible for documenting reasonableness of price in procurement record
FORUM 2004

19. Filed Price Agreements
For products not available from Preferred Sources or OGS contracts
For discretionary purchases up to $15,000
Agency responsible for determining that product meets form, function and utility
Agency responsible for documenting reasonableness of price in procurement record
FORUM 2004

20. Sole Source Procurement
Where only one vendor can provide the product/service required
Procurement record must explain:
- Unique nature of the requirement
- Basis for determining only one vendor is
able to meet needs
- Reasonableness of price
FORUM 2004

21. Single Source Procurement
Where two or more vendors can supply product/service but selection of one is based on expertise, previous experience, etc.
Procurement record must explain:
- Alternatives considered
- Rationale for selecting specific vendor
- Reasonableness of price
FORUM 2004

22. Backdrop Mini-Bids Benefits - Terms & Conditions already in place
- Negotiating time saved
- Pre-qualified list of vendors
- Contract Reporter advertisement not required
- AG approval not required
FORUM 2004

23. Piggyback Contracts
Contract established by NYS based on existing contracts developed by other governmental agencies (federal, political subdivision or other states)
Must obtain OGS approval
Guidelines available on OGS website at:
- pdfdoc/pgbguidelines.pdf
FORUM 2004

24. Piggyback Contracts
Agency should address the following when submitting package to OGS:
- Subject matter comparison
- Procurement method
- Notice to Originating Agency
- Consent of Vendor & Terms of Piggyback
- Absence of other Contracting Alternatives
- Price Justification
FORUM 2004

25. Continuous/Periodic Recruitment
Recommend that the vendor contact OGS for addition to existing contract
Allows accepting bids after the bid opening and adding vendors after the original award
FORUM 2004

26. Emergency Purchases
Agency head must approve waiver of competitive bidding requirements
Must document nature of emergency; potential effect on health, safety or conservation of public resources; and detailed description of commodities, services and technology to be provided
FORUM 2004

27. Emergency Purchases
Should make reasonable attempt to get at least three oral quotes with written confirmation within a reasonable time
FAILURE TO PROPERLY PLAN IN ADVANCE DOES NOT CONSTITUTE AN EMERGENCY
FORUM 2004

28. Competitive Bids using IFB
Invitation for Bids (IFB) is most typically used where requirements can be stated and award will be made to the “lowest responsive and responsible bidder(s)”
Typically used for commodities
Also used for many services and technologies
FORUM 2004

29. Competitive Bids using IFB
Lowest Price
- Basis for Awarding Contracts for Commodities
- Low Bid “Meeting Specifications”
- Price May Include Other “Costs”
FORUM 2004

30. Competitive Bids using RFP
Request for Proposals (RFP) is used for procurements where factors in addition to cost are considered and weighted in awarding the contract and when the method of award is “best value”
Mostly used for services and technology
Used for complex procurements
FORUM 2004

31. Competitive Bids using RFP
Best Value
- Basis for Awarding Contracts for Services (Including Technology)
- Optimizes Quality, Cost and Efficiency
FORUM 2004

32. SELECTING THE CORRECT CONTRACT VEHICLE
Purchase Order
PA Contract
Contract Agreement
AC-340
FORUM 2004

33. PURCHASE ORDER REQUIRING OSC APPROVAL
One time purchase
Fully encumbered
Must include all copies (vendor, OSC, agency)
All relevant terms on the face or attached
Appendix A referenced on vendor copy
Purchase Orders have no dollar limitations
A Purchase Order is the contract document approved by OSC
Should be used when the transaction is for a one-time purchase. --Purchase Orders must be fully encumbered for the entire amount of the purchase.
-The purchase order forms the contract document. It is the document that OSC approves. Therefore if there are budget constraints or other prohibitions to issuing a purchase order, the agency must hold the documentation until such time as the restriction has been lifted.
-All relevant contract terms regarding delivery time, prompt payment terms, etc. should be on the face of the purchase order or attached to it.
-The vendor’s copy of the purchase order must contain Appendix
A provisions.
-Purchase orders have no dollar limitations. -
FORUM 2004

34. PURCHASE ORDER (continued)
OSC approval not required for OGS centralized contract purchases unless otherwise specified by contract
Contract number must be shown in box labeled Comptroller’s Contract No
Contract number must be shown on the voucher
Purchase orders against OGS contracts and containing items purchased under agency discretion do not require OSC approval unless the discretionary items exceed $15000.
-Purchase orders issued pursuant to OGS contracts or PA contracts must indicate the contract number in the “Comptrollers Contract Number” field. Failure to include the contract number when purchases exceed $15,000 may result in the rejection of either the purchase order or the related vouchers.
Added discretionary purchases up to $15,000 do not require pre-approval
FORUM 2004

35. PURCHASE ORDER CHANGE NOTICE
If the original purchase order was approved by OSC, change notice should be accompanied by a copy of the original approved purchase order
Explanation for change
Encumbrance, if applicable
FORUM 2004

36. PA CONTRACT
A PA Contract can be used by an agency to establish a pricing agreement for commodity and printing procurements
(See OSC Bulletin G-191)
FORUM 2004

37. PA CONTRACT (continued)
Used for commodity and printing purchases that exceed agency prior approval threshold
Provides agencies with a “term contract” mechanism
Saves administrative costs
No Purchase Order approval required once PA Contract is approved
Procurement must follow the normal procurement rules (IFB, single/sole source, discretionary purchase).
FORUM 2004

38. CRITERIA FOR PA CONTRACTS
Estimated Quantities
Term Contract
Guaranteed Orders require a fully encumbered purchase order for the value of the guaranteed quantity
FORUM 2004

39. CREATING A PA CONTRACT Required Documents
One Completed PA Data Sheet for each awarded vendor
Three Contract Award Letters
(This is the contract document for authorized agency and OSC signatures.)
Three Notices of Contract Award
Must reflect the terms and conditions of procurement
Must include pricing and refer to Appendices
FORUM 2004

40. OSC’s ROLE IN PROCESSING PA CONTRACTS
Assigns the contract a unique number
Enters the contract on the Central Accounting System (CAS) under agency code 01055
Processes the transaction and enters the assigned contract number on each copy of the Contract Award Letter
Retains one original Contract Letter and Award and returns remaining copies to the agency
FORUM 2004

41. USING YOUR NEW PA CONTRACT
Issue Contract Award Letter and Notice of Contract Award to the vendor and any other agencies authorized to use it
Issue a Purchase Order referencing the contract number in the Comptroller’s contract number box and also on the voucher
FORUM 2004

42. PA CONTRACT AMENDMENTS
Required Documents
One completed PA Data Sheet for each awarded vendor
Three Contract Amendments
This is the contract document for authorized agency and OSC signatures
Must have written concurrence from the vendor
Must reflect the terms and conditions of procurement
Documentation supporting any changes must be included with the procurement package
FORUM 2004

43. PA CONTRACT ADVANTAGES
Functions as an agency specific P-Contract
Purchase Orders issued against PA Contracts do not require separate OSC approval
Standard format for “Contract Letter” and “Notice of Contract Award”
May be for a term up to five years
FORUM 2004

44. ADVANTAGES (Continued)
No prior approval for PO’s or change notices
Allows value monitoring for future contracting opportunities
No encumbrance required for contract approval
Can cover any contracting method - single/sole source, competitive bid, discretionary purchase, piggybacking agreement, etc.
FORUM 2004

45. CONTRACT AGREEMENTS A full or fiscal year encumbrance is required
An agreement between the State and a vendor must be created and executed
Signed and acknowledged by the vendor, signed by agency, AG, and OSC
Used for service, revenue, construction, etc.
FORUM 2004

46. AMENDMENTS TO CONTRACT AGREEMENTS
Must be accompanied by a completed and encumbered AC340. Action code on an amendment is c.
If the change is the result of a Contract extension, the new end date and the date of renewal must also be changed.
If the contract is being amended or extended, an executed contract amendment reflecting the change must also be included.
FORUM 2004

47. THE AC340
Is used when increasing the value of a contract (use an ECC batch when the purpose is solely to encumber funds)
To change an address (with additional documentation required)
The AC340 is also used to create a contract based on a CM master contract or a CMS single/sole source contract. (use your agency’s code, not that of the host agency)
FORUM 2004

48. Questions?
FORUM 2004

49. FORUM 2004