1. SURVIVING YOUR PROCUREMENT CODE’S REQUIREMENTS
Voight Shealy
State of South Carolina
Materials Management Officer
Chief Procurement Officer for Supplies and Services

2. WHY YOU SHOULD CARE

3. LEGISLATION
1979, American Bar Association produced its Model Procurement Code for State and Local Governments
1981, State of South Carolina
adopted its Consolidated
Procurement Code
24 other states have adopted
some form of the ABA’s
Model Code
Source: NASPO’s 2012 Survey of State Government Procurement Practices

4. PROCUREMENT RULES – ALL OF YOU HAVE THEM
All states have adopted procurement codes
Ours requires political subdivisions to adopt model ordinances
If you expend federal funds, you must follow your procurement policy or the Federal Acquisition Regulations
It’s the buyers v. the sellers ladies and gentlemen

5. YOUR CODE’S PRIMARY PURPOSE?
What do you think?

6. ANY CODE’S PRIMARY PURPOSE?
To protect the citizens of our states from you and me.

7. EVERY PROCUREMENT CODE WRITTEN WAS REMEDIAL
It was caused by someone else's transgressions

8. SURVIVAL TIP # 1
Know Your Authority

9. STATE PROCUREMENT ORGANIZATIONS
Every state has a central purchasing office
In SC, it’s the Budget and Control Board Procurement Services Division
3 Chief Procurement Officers
Information Technology Management Officer – Mike Spicer
State Engineer – John White
Materials Management Officer – Voight Shealy

10. STATE PROCUREMENT ORGANIZATIONS
Vary from state to state
Some are more centralized
Some are more decentralized
Most are center lead

11. CENTRAL PROCUREMENT’S ROLE
To process procurements of the highest complexity as well as statewide term contracts and multi-state cooperative purchases to save money on common items and services used by most agencies.
Large, complex agency buys.
State term contracts
1) to aggregate various agencies’ needs into very large buys for discounted pricing
2) So 100 agencies don’t have to

12. AGENCY PROCUREMENT ORGANIZATION
Determined by Each Agency
Know your personal authority

13. AGENCIES’ PRIMARY ROLE
To manage procurements for:
Routine needs
Agency expertise

14. AGENCY AUTHORITY Varies state to state from $2,000 to unlimited
In SC, Every State Agency’s authority - $50,000
Higher Limits May Be Requested
All you have to do is hire a competent procurement staff and follow the Code

15. SURVIVAL TIP # 2
Learn how to write unambiguous specifications that accurately describe the products you need or the services you require.

16. SPECIFICATIONS - Products
Describe what you need
What should it do? How fast?
Heavy or light duty?
How big? How tall? How long?
Do you care? Don’t spec it if you don’t need it
Spec Quality Necessary
Low Bid Does Not Mean Cheap!

17. Specifications - Products
For products, most common specifications are "Brand Name or Equal" specs
Name an acceptable make and model or two to describe the quality needed
List Salient Features Desired
What distinguishes this model from all others?
Allow bidders to offer the models listed or other “equal” products

18. SPECIFICATIONS - Services
Describe what services you need
What must the contractor do? Be Specific!
Spec qualifications required
i.e., Do you want a licensed contractor?
How fast should the response time be?
How many staff should be devoted to your job?
Past experience requirements?
Always require references – Check Them

19. Specifications
It is vital that your Scope of Work is clear in defining what you expect your contractor to do.
It is vital that you are clear in stating what must be covered in each bidder’s price
Be precise

20. Specifications Should Be Open and Competitive. But:
Every specification imposes a requirement. Therefore, it may limit competition. If necessary, that is fine.
But, it cannot be unduly restrictive.
It's OK to Seek Info From Vendors Before You Solicit

21. LET’S BUY SOMETHING!

22. SPECIFICATIONS
It’s all about building successful contracts

23. SURVIVAL TIP # 3
Know your Code’s authorized source selection methods

24. UNIVERSAL SOURCE SELECTION METHODS
Small Purchases
Competitive Sealed Bidding
Competitive Sealed Proposals
Emergency
Sole Source

25. SOURCE SELECTION METHODS
ALL PROCUREMENTS MUST BE MADE BY ONE OF THE METHODS LISTED ABOVE.

26. SMALL PURCHASES – INFORMAL PROCEDURES
In SC, <$50,000
Competition Required
<$2, None
$2, $10, Call for 3 Written Quotations
$10, $49, Advertisement in South Carolina Business Opportunities

27. SMALL PURCHASES DO DON’T Be Consistent With Specifications
Call the Required Number of Vendors
Document Calls - Write them down
DON’T
Tell Competitors What Other Vendors Bid
Split Orders

28. COMPETITIVE SEALED BIDS
Formal process for $50,000 or more
Written solicitations request written bids
Award - Lowest Responsive & Responsible Bidder

29. COMPETITIVE SEALED BIDSDO
Allow Bidders Adequate Time to Develop Bids
Make Sure Low Bidder is Responsive and Responsible
Don’t
Base your specifications on a single vendor’s product
Make your specifications overly restrictive

30. COMPETITIVE SEALED PROPOSALS
Evaluation - Team Scores of Proposals Judged Against Weighted Factors
i.e., past experience with similar projects, innovation in solving our problem, team qualifications, financial stability
Award - Highest Ranked Offeror, not necessarily lowest cost
State your problem - Buy solutions!

31. EMERGENCY
Allowed only in emergency situations - Threats to Public Health, Welfare,
Critical Economy or Safety
Written Determinations Often Required
Authorized Approval Required

32. EMERGENCY Plan Your RequirementsDO
Plan Your Requirements
Explain the Emergency - What happened?
Compete as Practical
DON’T
Shoot Yourself in the Foot!
“This annual event” – REALLY?!

33. SOLE SOURCE Unique Item or Service and Available From Only One Source
It’s not the source we like the most
Written Determination Often Required
Authorized Approval Required

34. SOLE SOURCE DO Search for Competitors
Document Efforts to Find Competition - How do you know it’s a sole source?
DON’T
Play a Bad Hand - if in doubt, compete it

35. SURVIVAL TIP # 4 Protect Yourself People are watching
As a public manager, it is your duty to ensure that you and your employees comply.

36. LEGAL AND CONTRACTUAL REMEDIES
Every state (except Massachusetts) has a protest process
In SC, Protests - $50,000 or more
Solicitations - Any Prospective Bidder or Offeror
Awards - Any Actual Bidder or Offeror
Contract Controversies - State or Vendor May File

37. STATE AUDITING State Auditors Legislative Auditors Other Auditors
In SC, Audit and Certification - Performs compliance audits of procurement activity

38. THE ULTIMATE CUSTOMER
Taxpayers

39. Questions