1. HOW TO DO BUSINESS WITH THE STATE OF SOUTH CAROLINA John R. Stevens, CPPB State Procurement Officer Procurement Services Division S.C. Budget & Control Board

2. 1. LEARN THE SOUTH CAROLINA CONSOLIDATED PROCUREMENT CODE u http://www.state.sc.us/mmo/codes/pcr.htm http://www.state.sc.us/mmo/codes/pcr.htm u All State Agencies u All Sources of Funds u School Districts With Annual Budgets of $75 Million

3. SOURCE SELECTION METHODS u Small Purchases u Competitive Sealed Bidding u Best Value Bidding u Fixed Price Bidding u Request for Proposals u Reverse Auction

4. SMALL PURCHASES u <$25,000 u Competition Required – <$1,500.00 - None – $1,500.01 - $5,000.00 - 3 Telephone Quotes – $5,000.01 - $10,000.00 - 3 Written Quotations – $10,000.01 - $24,999.99 - Advertisement in South Carolina Business Opportunities (SCBO)

5. COMPETITIVE SEALED BIDS u $25,000.00 and more u Competition Required -Advertisement in SCBO u Award - Lowest Responsive & Responsible Bidder

6. COMPETITIVE BEST VALUE BIDDING u Hybrid Between Competitive Sealed Bids & Competitive Sealed Proposals u Award Based on Evaluation Factors u Price Must Be Worth 60% of Total Evaluation

7. COMPETITIVE FIXED PRICE BIDDING u State Sets Maximum Price Allowed u Award - All Qualified Bidders Agreeing to the Maximum Price u May Add Contractors After Award

8. COMPETITIVE SEALED PROPOSALS u Less than $10,000 - Competition Required u $10,000.00 and more - Advertisement in SCBO u Evaluation - Team Scores of Weighted Factors u Award - Highest Ranked Offeror u Expanded Negotiation Methods

9. STATE PREFERENCES u Resident Vendor 7% u S. C. End Product 7% u Combined Resident Vendor & S.C. End Product 10% u U. S. End Product 2% u Vendors MUST Request Preferences

10. PREFERENCE REQUIREMENTS u Resident Vendor Preference – Authorized to Transact Business in the State – Maintains an Office in the State – Maintains an Inventory of Items Being Purchased of $10,000 or more – Paid All Assessed Taxes

11. PREFERENCE REQUIREMENTS u End Product Preference – Items Made, Manufactured, or Grown in the State or United States.

12. PREFERENCE EXCEPTIONS u Do not Apply to: – Procurements of Construction Services – Procurements of A-E Services or Land Surveyors – Price of a Single Unit is >$30,000 – Procurement is <$10,000 – Requests for Proposals

13. 2. SUBSCRIBE TO SCBO u South Carolina Business Opportunities – SC Procurement Code mandates State Agencies to advertise solicitations at or above $10,000 in SCBO – The Materials Management Office publishes SCBO twice-weekly to satisfy this mandate – Advertises quotes, bids and proposals involving goods, services, information technology and construction – Other governmental entities (i.e. cities, counties and school districts) can voluntarily advertise

14. COST TO SUBSCRIBE u Hard Copy Subscribers (Print Version) $125.00/year u Internet (Online) Subscribers $45.00/year

15. 3.VISIT OUR WEB SITE www.procurement.sc.gov Links to both Materials Management and Information Technology Management -Online Awards & Solicitations -South Carolina Business Opportunities -MMO Publications -MMO Forms www.procurement.sc.gov

16. VISIT OUR WEB SITE -South Carolina Procurement Code -Other Agencies Online Solicitations (includes State Agencies, Universities and Colleges, Cities, Counties and School Districts)

17. 4. GET TO KNOW AGENCY PROCUREMENT OFFICERS u All State Agencies Certified to $25,000 u Higher Certification Limits May Be Requested –Examples: Clemson University, DOT, Corrections, USC certified to $1 million for Goods. u Listing of Procurement Offices for governmental entities available on MMO website at http://www.state.sc.us/mmo/ops/procure.htm http://www.state.sc.us/mmo/ops/procure.htm

18. 5. BEST PRACTICES u Study Each Solicitation’s Requirements u Ask Questions About Solicitation Requirements u Attend Pre-Bid and Pre-Proposal Conferences u Use the Freedom of Information Act u Submit Bids that Meet Solicitation Requirements

19. BEST PRACTICES (cont.) u Do Not Alter Terms & Conditions of the Solicitation u Prepare Reasonable Bids - Do Not Overbid or Underbid u Make Sure the Bid is Received On Time u Sign Your Bid u PERFORM, PERFORM, PERFORM

20. THE FUTURE OF PROCUREMENT u South Carolina is moving many operations away from paper to electronic format to take advantage of opportunities computer and Internet technologies provide.

22. South Carolina’s Approach to Electronic Commerce u Created a platform for Electronic Commerce -Web Site www.procurement.sc.gov -Windows based automated procurement system - APS 2000 -Electronic signature legislationwww.procurement.sc.gov

23. South Carolina’s Approach to Electronic Commerce u Automated Procurement System (APS) – Advertising all solicitations on the Internet – Posting all solicitations and awards on Internet – Posting agency solicitations on the Internet

24. South Carolina’s Approach to Electronic Commerce u Implementing Electronic Commerce-continued – Automatic distribution of solicitations and awards via email & fax – On-Line agency requisitioning – On-Line agency tracking of requisitions

25. South Carolina’s Approach to Electronic Commerce u Implementing Electronic Commerce-continued – On-Line bidder response – Advanced Bid Tabulation – Document storage/retrieval - imaging – Internet based fully electronic solicitation, response, tabulation, evaluation and award

26. Assistance Available to You u We Are Always Willing To Help u Call Us @ (803)-737-0600 u Internet Web Site u www.procurement.sc.gov www.procurement.sc.gov – www.state.sc.us/mmo/ www.state.sc.us/mmo/ – http://cio.state.sc.us/itmo/main.htm http://cio.state.sc.us/itmo/main.htm