1. OGS Procurement Services Group 2010 State Purchasing Forum Preferred Sources

2. 2010 Purchasing Forum – Preferred Sources Jerry Gerard, NYS OGS Director, Procurement Services Group Michael Hurt, NYS DOCS (Corcraft) Director, Division of Industries Rick Olivo, IBNYS Director, Marketing and Sales Andy Grosso, NYSID Vice President, Marketing and Sales Question / Answer - Presenters Presenters and Presentation Overview

3. 2010 Purchasing Forum – Preferred Sources NYS Finance Law (SFL § 162) http://www.ogs.state.ny.us/procurecounc/pdfdoc/pslist.pdf Purpose To advance special social and economic goals, certain providers have “preferred source” status under the law. The acquisition of commodities and/or services from preferred sources are exempted from statutory competitive procurement requirements (of SFL § 163). What is the Preferred Source Program?

4. 2010 Purchasing Forum – Preferred Sources NYS Finance Law (§ 163 3.a & 4.a) requires purchasing priority be given to the preferred sources for commodities and services, respectively. The purchase of [commodities|services]… shall be conducted in a manner which accords first priority to preferred sources in accordance with the provisions of this article… What About Competitive Procurement Requirements?

5. 2010 Purchasing Forum – Preferred Sources Applicability and Scope All state agencies, political subdivisions and public benefit corporations (including most public authorities) are required to purchase approved products and services from preferred sources. Purchases from preferred sources take precedence over all other sources of supply and competitive procurement methods. Who Is Required to Purchase From Preferred Sources?

6. 2010 Purchasing Forum – Preferred Sources Preferred Source status is accorded to: Corcraft Commodities produced by the NYS DOCS, Correctional Industries Program. IBNYS Commodities and Services produced by qualified, charitable, non-profit- making agency for the blind, approved by the Commissioner of Social Services. NYSID Commodities and Services produced by qualified, charitable, non-profit- making agency for the severely disabled persons, approved by the Commissioner of Education. Buy OMH Commodities and Services produced by any special employment program serving mentally ill persons, operated by facilities within the Office of Mental Health and approved by the Commissioner of Mental Health. Who Are The Preferred Sources?

7. 2010 Purchasing Forum – Preferred Sources List of Preferred Source Offerings established and maintained by OGS http://www.ogs.state.ny.us/procurecounc/pdfdoc/pslist.pdf Contains offerings and the specific preferred source(s) approved for the offering New or substantially different commodities or services are added to the list pending action by the Procurement Council and approval of Commissioner of OGS How Do I Know Who Offers What?

8. 2010 Purchasing Forum – Preferred Sources Priority Among Preferred Sources Commodities and Services available in the form, function and utility required by a State agency, political subdivision or public benefit corporation must be purchased from preferred sources in the following prioritized order: Commodities 1 st – Corcraft 2 nd – IBNYS 3 rd – NYSID or Buy OMH Services Equal Priority – if more than 1 preferred source meets the requirements, cost shall be the determining factor. Which Preferred Source Do I Purchase From?

9. 2010 Purchasing Forum – Preferred Sources What is the Preferred Source Procurement Process? Determine/define agency need for a commodity or service Review the current List of Preferred Source Offerings If offering on List, determine whether it meets agency form, function and utility required. If offering meets agency needs/requirements, proceed with purchase from preferred source If offering not on List, proceed with purchase from centralized contract or appropriate competitive procurement If offering does not meet agency needs/requirements, the 10 day notification requirement applies Complete Needs Assessment Preferred Sources Are needs met by Preferred Sources? Are needs met by Centralized Contract? Centralized Contract Are needs met by Competitive Bid? SINGLE SOURCE SOLE SOURCE STRATEGIC PARTNERSHIP BUILD IT YOURSELF Competitive Bid IFBRFP Yes No Yes Or

10. 2010 Purchasing Forum – Preferred Sources Broadly interpret the generic List of Preferred Source Offerings Make reasonable efforts to notify preferred source of agency needs and initiate discussion of needs To apply the form, function and utility standard, define the commodity/service in terms of the minimal essential requirements Consult directly with the preferred source to gain additional information and/or discuss potential accommodations to meet agency needs How Do I Determine Whether They Meet My Needs?

11. 2010 Purchasing Forum – Preferred Sources Does the preferred source offering meet either agency specifications or industry standards which may be applicable? Are deviations from specifications minor? Will the product suffice, or could the service be made to suffice, or will the offering substantially meet agency requirements for function and performance? Are delivery schedules, installation requirements, start-up lead times and performance standards reasonable, necessary and within accepted commercial practices? Has the preferred source been consulted? Can they make necessary accommodations to meet agency needs? Form, Function, and Utility Considerations

12. 2010 Purchasing Forum – Preferred Sources NYS Finance Law, Article XI, State Purchasing http://www.ogs.state.ny.us/purchase/snt/sflxi.asp Preferred Source Guidelines http://www.ogs.state.ny.us/procurecounc/pdfdoc/psguide.pdf List of Preferred Source Offerings http://www.ogs.state.ny.us/procurecounc/pdfdoc/pslist.pdf Procurement Council and Procurement Guidelines http://www.ogs.state.ny.us/procurecounc/default.asp Procurement Guidelines http://www.ogs.state.ny.us/procurecounc/pdfdoc/guidelines.pdf How or Where Do I Get Additional Information?

13. 2010 Purchasing Forum – Preferred Sources New York State Department of Correctional Industries (Corcraft) www.corcraft.orge-mail: productinfo@corcraft.docs.state.ny.us productinfo@corcraft.docs.state.ny.us phone: 800-436-6321 fax:518-434-7434 ext. 2620 Industries for the Blind of New York State (IBNYS) www.ibnys.orge-mail:info@ibnys.orginfo@ibnys.org phone: 800-421-9010fax:518-456-3587 New York State Industries for the Disabled (NYSID) www.nysid.orge-mail: administrator@nysid.org administrator@nysid.org phone: 800-221-5994 fax:518-463-9708 New York State OGS Procurement Services Group (PSG) www.ogs.state.ny.us/purchase/ e-mail:thomas.sherwood@ogs.state.ny.usthomas.sherwood@ogs.state.ny.us phone: 518-473-3923fax:518-474-2437 Who Can I Contact Regarding Preferred Sources?

14. 2010 Purchasing Forum – Preferred Sources Questions and Answers ? To assure that the Preferred Source representatives are afforded the opportunity to make their presentations, we ask that questions be held until the end of the session.