1. New Procurement Rules Training Purchases Greater Than $25,000

2. 3/30/20102 Why do we have new procurement rules? Law that renewed mayoral control of the schools gave the Panel for Educational Policy (Panel) the authority to approve (among other things) most of the DOE’s contracts a new procurement policy that met specific requirements stated in the Law

3. 3/30/20103 Many processes are the same, but some things are new New procurement processes Emergency purchases Demonstration projects Innovative procurement methods No more sole source for services Must use Negotiated Services (fka Exception to Bid or Committee on Contracts) when there is only one source for services

4. 3/30/20104 What’s new (cont’d) Request for Authorization - New Requirements Now required for all procurements except Simplified Procurement All other procurements $25,000 or less ($15,000 if competitive sealed bidding) Educational Investment Case Required for technology, software, consulting or technical services contracts >$1 million

5. 3/30/20105 What’s new (cont’d) Educational Investment Case (cont’d) Describes the need for the project, how it fits within educational objectives Key risks/dependencies Cost benefit analysis Client must provide information needed to complete See Section 2-07 (c) for details Contract changes Dispute resolution process

6. 3/30/20106 What’s new (cont’d) Performance evaluations for contracts – in development now, will provide training when procedures are completed Contract Manager required for each contract and purchase order Approves/monitors payments Performs quality assurance, inspection and testing

7. 3/30/20107 New procurement processes (cont’d) Contract Manager (cont’d) Monitors/enforces contractor compliance with DOE security requirements, including fingerprinting Monitors and evaluates contractor performance Assesses need for changes, extensions and renewals Participates in dispute resolution activities Maintains file containing records, correspondence and determinations pertaining to contract administration

8. 3/30/20108 Overview of Most Common Procurement Processes Request for Proposals (RFP) Process Used to procure services or a combination of services and goods when evaluation of proposals is based on a number of factors including experience, staffing, suitability for needs and quality of vendor, in addition to price RFP states what we want to procure in either general or specific terms, depending on the need Client must prepare specifications

9. 3/30/20109 Overview of Most Common Procurement Processes (cont’d) Request for Proposals (RFP) Process (cont’d) Selection criteria must be established in the RFP Solicitation must be advertised in City Record/DOE website if >$25K A committee of at least three people, none of whom can report to another committee member, reviews the proposals and scores them using rating sheets.

10. 3/30/201010 Overview of Most Common Procurement Processes (cont’d) Request for Proposals (RFP) Process (cont’d) Proposers may be given feedback on their proposals, and as a result, may make changes to their proposals Proposers may be asked to submit best and final offers (BAFO) Process takes about five to twelve months or more depending on complexity

11. 3/30/201011 Overview of Most Common Procurement Processes (cont’d) Multiple Task Award Contract (MTAC) Process (fka Prequalified Solicitation) Used to procure services when there is high demand for a type of service (such as prof’l dev in a specific field) and when we want to offer a choice among multiple providers of the service Contracts are awarded to every provider who meets the requirements of the solicitation

12. 3/30/201012 Overview of Most Common Procurement Processes (cont’d) Multiple Task Award Contract (MTAC) Process (cont’d) Client must prepare specifications Selection process is the same as the RFP process Process takes five to twelve months depending on complexity DCP has a training session on ordering from MTACs

13. 3/30/201013 Overview of Most Common Procurement Processes (cont’d) Negotiated Services Used when other processes are not practical or possible including need to extend a contract beyond the 12- month limit in the Contract Extension section only one vendor can meet the DOE’s requirements time constraints are such that only one vendor can provide the services

14. 3/30/201014 Overview of Most Common Procurement Processes (cont’d) Negotiated Services (Cont’d) a vendor’s services are discounted because another source of funding is covering a portion of the cost Must document determination that it is not practical/possible to use a competitive process Must publish notice of intent to award a contract in City Record/on DOE’s website, and evaluate responses, if any

15. 3/30/201015 Overview of Most Common Procurement Processes (cont’d) Negotiated Services (Cont’d) Chancellor’s Committee on Contracts (COC) approval is required for contracts > $100K Client must provide specifications Process takes six to twelve months (less time if < $100K)

16. 3/30/201016 Overview of Most Common Procurement Processes (cont’d) Simplified Procurement Used for goods $15K or less and services $100K or less 3 bids are required to be solicited Advertisement of solicitation is not required No bids are required for services $5K or less

17. 3/30/201017 Overview of Most Common Procurement Processes (cont’d) Simplified Procurement (cont’d) Office heads can approve up to $25K; DCP handles process >$25K When DCP handles, client must prepare specifications Process takes three or more months

18. 3/30/201018 Overview of Most Common Procurement Processes (cont’d) Contract Extension Can extend most contracts for up to one year Exceptions: contracts awarded through a bid before 9/15/08; emergency procurements; simplified procurements beyond the $ thresholds; and grant-funded contracts whose extensions will be funded through tax levy funds Must use all renewals or extensions provided for in contract first

19. 3/30/201019 Overview of Most Common Procurement Processes (cont’d) Contract Extension (Cont’d) COC approval is required for extensions >$100K and when COC approved original contract Panel approval is NOT required Process takes two to three months or less depending on amount

20. 3/30/201020 Overview of Most Common Procurement Processes (cont’d) Contract Changes Changes are permitted only for work necessary to complete the work in the original scope of contract and for non-material changes in scope Can change the price and/or term of contract Office heads can approve changes up to $25K Exception: when there is a change in unit or task price and the original contract is > $100K, DCP approval is required

21. 3/30/201021 Overview of Most Common Procurement Processes (cont’d) Contract Changes (cont’d) COC approval is required for changes >$100K and when the COC approved the original contract and when there is an extension of the term Panel approval is required when the change increases the contract cost by $25K or 10% of the original amount, whichever is greater Process takes three to four months or more, depending on amount and complexity

22. 3/30/201022 Overview of Most Common Procurement Processes (cont’d) Purchases Through Governmental Contracts Used to purchase goods/services from State, City or federal contracts when the price is lower than the prevailing market price Panel approval is not required Some State contracts require a “mini bid” among contracted vendors Process takes one to two months if no mini-bid, three to ten months or more if mini-bid is required

23. 3/30/201023 Overview of Most Common Procurement Processes (cont’d) Section 1-03(b) and (c) Exceptions 1-03(b) provides for exceptions to procurement processes for grants that specify a vendor to perform the work where court order, consent decree or law requires contracting with a specific source 1-03(c) is used for City Council or Borough President budget line item pass through contracts Process takes three to four months Good idea to have providers respond to appropriate MTAC solicitation and get contract through that process – eliminates this process

24. 3/30/201024 DCP Contacts Susan Dick-McKeon, Chief, School Based Procurement – 718-935-2027 Peter Frey, Chief, Funded & Special Services Procurement – 718-935-4298 Jason Henry, Innovation & Vendor Resources – 718- 935-2058 Jim McBride, Chief, Central Office Procurement – 718-935-5238 Jay Miller, Vendor Research & Price Analysis – 718- 935-4394 Olga Nieves, Chief, Transportation, Food & Facilities – 718-935-2026