3. PURCHASING 101 Welcome & Introductions Course Overview General Information Session Time – One Hour Hush Sounds Ask Questions LISTEN, LEARN AND ENJOY!

4. State Purchasing Forum 2004 3 Purchasing 101 Today’s Presenters: Larry Klein – OGS Eileen A. Germain - ESD Wendell R. Ponce - ESD Mary McDonnell - Labor Barbara Norton - OSC

5. State Purchasing Forum 2004 4 Resources Governing Rules and Regulations Governing NYS Laws, Rules, Regulations and Other References and Resources Discretionary and Prior Approval Thresholds Procurement Requirements Procurement Guidelines Appendix A and B Agency Purchasing Flowchart Batch types-Bulletin G-194, April 3, 2002

6. State Purchasing Forum 2004 5 The Procurement Process -Larry Klein Determining Your Need Discretionary Purchasing Levels IFB or RFP

7. State Purchasing Forum 2004 6

8. 7 The Agency Purchasing Flowchart Choices and decisions at each step Remember the Procurement Record

9. State Purchasing Forum 2004 8 Complete Needs Assessment Selecting A Procurement Method Commodities, Services and Technologies Complete Needs Assessment Are needs met by Preferred Sources? Preferred Sources Yes Centralized Contract Are needs met by Centralized Contract? Are needs met by Competitive Bid? Competitive Bid While more than one contractor could meet needs, could agency provide substantial basis for selecting a single contractor? SINGLE SOURCE Build It Yourself STRATEGIC PARTNERSHIP SOLE SOURCE IFB RFP Would only one contractor meet needs? Is price the sole criterion for selection, provided contractors satisfy minimum specifications? No Best Value Acquisition Sharing Existing Contract Resources Or Developing new P/S w/existing Contractor

10. State Purchasing Forum 2004 9 Process a Request for a needed commodity or service.. 1.Form, function, and utility determination 2.Availability from preferred source offerings/Purchase from preferred source 3.Check list of OGS centralized contracts/Purchase from OGS contract Not available as needed from either? First determine:

11. State Purchasing Forum 2004 10 Purchases Up to $15,000 Dollar value $5,000, $10,000, $15,000 Discretionary Purchase If under $15,000 Discretionary purchase then Justification of price and vendor selection

12. State Purchasing Forum 2004 11 Purchases Between $15,000 to $50,000 Discretionary Purchase Purchase from small business, certified M/WBE (products or services)(see www.empire.state.ny.us) or purchase recycled or remanufactured products (commodities or technology)-NYS Contract Reporter notice required or Purchase from OGS Small Business Initiative (SBI)- no NYS Contract Reporter notice required (see www.empire.state.ny.us ) OSC approval precedes Purchase Order release to vendor

13. State Purchasing Forum 2004 12

14. State Purchasing Forum 2004 13 Over $15,000 to $50,000… (continued) Seek OGS procurement technical services assistance- OGS can issue purchase instructions Complete procurement using formal competition, IFB, Requires notice in NYS Contract Reporter Under $30,000 Obtain Quote: Over $30,000

15. State Purchasing Forum 2004 14 If over $50,000… Single/sole source justification Piggybacking Formal competition, and advertisement in the NYS Contract Reporter required

16. State Purchasing Forum 2004 15 Choosing a method of bidding Be sure you know what your agency really needs Write a specification that gets to what is needed but is not unduly restrictive IFB RFP Formal Competition IFB or RFP?

17. State Purchasing Forum 2004 16 IFB Essentials Responsive and responsible offerers Contract Reporter insertion Fully defined method of award Be prepared for tie bids and other glitches

18. State Purchasing Forum 2004 17 If a “low bid” award is not feasible, use the RFP process Define the project Explain general parameters that will determine “best value” Have OSC review the draft RFP

19. State Purchasing Forum 2004 18 The RFP process (continued) Use uninvolved third parties to evaluate offers in addition to purchasing staff. Allow time for appropriate clarifications and other glitches

20. State Purchasing Forum 2004 19 Whether IFB or RFP… Level Playing Field

21. State Purchasing Forum 2004 20 Contract administration Remember:that an award is not the end of the process Monitor:timely purchase order placement contractor’s delivery product or service for compliance with specifications Prompt payment requirement Do not pay for products or services that did not meet requirements

22. NYS Contract Reporter OGS Purchasing Forum June 16-17, 2004 Eileen A. Germain

23. State Purchasing Forum 2004 22 What is the Contract Reporter? online listing of bid opportunities worth $15,000 or more; online listing of bid opportunities worth $15,000 or more; official source of New York State government bid solicitations; and official source of New York State government bid solicitations; and procurement resource for the business community. procurement resource for the business community.

24. State Purchasing Forum 2004 23 Who uses the Contract Reporter? Subscribers - Subscribers - Businesses both in and outside of NYS identify bid opportunities and agencies that are most likely to purchase their products or services. Businesses both in and outside of NYS identify bid opportunities and agencies that are most likely to purchase their products or services. Agencies – Agencies – Advertise for goods and services as required in Statute. Advertise for goods and services as required in Statute.

25. State Purchasing Forum 2004 24 Why are agencies required to advertise in the Contract Reporter? Uniform dissemination of bid information to the business community; thereby Uniform dissemination of bid information to the business community; thereby maintaining a level playing field for NYS firms that want to do business with government. maintaining a level playing field for NYS firms that want to do business with government.

26. State Purchasing Forum 2004 25 What are the guidelines for advertising? Requirements for advertising in the Contract Reporter are mandated under Economic Development Law. Requirements for advertising in the Contract Reporter are mandated under Economic Development Law. Visit www.nyscr.org and click on NYS Finance Laws -- See Article 4-C Procurement Opportunities Newsletter. Visit www.nyscr.org and click on NYS Finance Laws -- See Article 4-C Procurement Opportunities Newsletter.

27. State Purchasing Forum 2004 26 What am I responsible for? NYS agencies, public authorities, public benefit corp. are required to publish: NYS agencies, public authorities, public benefit corp. are required to publish: bid solicitations of $15,000 or more; bid solicitations of $15,000 or more; quarterly anticipated procurements of $5,000 - $15,000 (Agencies) and $10,000 - $20,000 (SUNY/CUNY); quarterly anticipated procurements of $5,000 - $15,000 (Agencies) and $10,000 - $20,000 (SUNY/CUNY); instructions of how to be placed on bid lists (with quarterly report); and instructions of how to be placed on bid lists (with quarterly report); and knowing and following applicable statute – Article 4-C. knowing and following applicable statute – Article 4-C.

28. State Purchasing Forum 2004 27 How do I submit a bid solicitation online? Contact your agency administrator to establish a user profile for you. Contact your agency administrator to establish a user profile for you. Go to www.nyscr.org. Go to www.nyscr.org. View the tutorials, user guide, FAQs. View the tutorials, user guide, FAQs. Become familiar with the site and submit a “test ad” (just delete it after successful submission). Become familiar with the site and submit a “test ad” (just delete it after successful submission).

29. State Purchasing Forum 2004 28 What if I have an exemption? Guidelines may be found at Contract Reporter website-NYS Finance Laws, Article 4-C. Guidelines may be found at Contract Reporter website-NYS Finance Laws, Article 4-C. OSC Bulletin No. G-107B Procurement Opportunities Newsletter OSC Bulletin No. G-107B Procurement Opportunities Newsletter OSC approves/denies exemption and notifies the Contract Reporter. OSC approves/denies exemption and notifies the Contract Reporter. Bid info must still appear in the Contract Reporter (w/o proposal due date). Bid info must still appear in the Contract Reporter (w/o proposal due date).

30. State Purchasing Forum 2004 29 Some details… Internet Explorer 5.5+ on your PC Internet Explorer 5.5+ on your PC download IE at "Agency Help" link download IE at "Agency Help" link cookies enabled cookies enabled The system will NOT run on Netscape. The system will NOT run on Netscape. The system will NOT run on a Mac. The system will NOT run on a Mac.

31. State Purchasing Forum 2004 30 HOW DO I LOG ON? Go to www.nyscr.org Go to www.nyscr.org Select your user type (agency). Select your user type (agency). Login with: Login with: Username: email address Password: your choice A valid email address is required. A valid email address is required. Click on “Manage Submissions.” Click on “Manage Submissions.” Click on +Record Click on +Record

32. State Purchasing Forum 2004 31

33. State Purchasing Forum 2004 32

34. State Purchasing Forum 2004 33 HOW DO I KNOW MY AD WAS RECEIVED? After you hit the "Save" button for the last time, you should see this message: *********************************************************** Your Record Has Been Saved Ad Number: 1538338, Date Entered: 3/8/2004 9:06:02 PM Click Here to return to the main Submissions screen. *********************************************************** Print the page with this message and/or elect to have a confirming email by clicking on the "Send Email” Button You must have Internet Explorer 5.5 and cookies enabled on your browser.

35. State Purchasing Forum 2004 34 Agency Administrators Submit bid solicitations and have additional capability to: Submit bid solicitations and have additional capability to:  establish user profiles  modify or delete user profiles at their location

36. State Purchasing Forum 2004 35

37. State Purchasing Forum 2004 36 Agency Help Click on the “Agency Help” link and view: Click on the “Agency Help” link and view:  Tutorials  Frequently Asked Questions  User Guide

38. State Purchasing Forum 2004 37

39. State Purchasing Forum 2004 38 AGENCY SUBSCRIBERS view published ads; view published ads; authorize sub accounts under shared- use policy; and authorize sub accounts under shared- use policy; and renew subscriptions via procurement card at the website. renew subscriptions via procurement card at the website.

40. State Purchasing Forum 2004 39 Subscribers "Manage My Account" view ads in selected categories first; view ads in selected categories first; change your password; change your password; receive an email alert; receive an email alert; check status of subscription; and check status of subscription; and renew subscription. renew subscription.

41. State Purchasing Forum 2004 40

42. State Purchasing Forum 2004 41 HOW DO I LOCATE MY AD? If you are a subscriber or have a sub account – If you are a subscriber or have a sub account –  set up your profile to include categories of interest;  make sure email alert is enabled;  click on search link to perform keyword search; and  click on archives to perform search.

43. State Purchasing Forum 2004 42

44. State Purchasing Forum 2004 43

45. State Purchasing Forum 2004 44 QUARTERLY REPORTS SUNY, CUNY & AGENCIES located on homepage under announcements; located on homepage under announcements; quarterly schedule is posted at the website; quarterly schedule is posted at the website; email reminders automatically generated; and email reminders automatically generated; and reports must be submitted by the due date. reports must be submitted by the due date.

46. State Purchasing Forum 2004 45

47. State Purchasing Forum 2004 46 Reminder… Before “crunch” time become familiar with: Before “crunch” time become familiar with: tutorials, user guide and FAQs; tutorials, user guide and FAQs; publication schedules; publication schedules; ad submission process; ad submission process; Create a word document with description of purchase for copy and paste into online submission form. Create a word document with description of purchase for copy and paste into online submission form.

48. State Purchasing Forum 2004 47 NYS CONTRACT REPORTER Eileen Germain Empire State Development egermain@empire.state.ny.us 30 South Pearl Street Albany, NY 12245

49. HOW TO DO A SEARCH IN THE MWBE DIRECTORY

50. Website Address: www.empire.state.ny.us www.empire.state.ny.us

51. 50 State Purchasing Forum 2004

52. 51 State Purchasing Forum 2004

53. 52 State Purchasing Forum 2004

54. 53 State Purchasing Forum 2004

55. 54 State Purchasing Forum 2004

56. 55 State Purchasing Forum 2004

57. 56 State Purchasing Forum 2004

58. 57 State Purchasing Forum 2004

59. 58 State Purchasing Forum 2004

60. 59 State Purchasing Forum 2004

61. 60 State Purchasing Forum 2004

62. 61 State Purchasing Forum 2004

63. 62 Department of Labor Bureau of Public Work Mary McDonnell What are Prevailing Wage Rates When To Use Prevailing Wage Rates Where To Find Them

64. State Purchasing Forum 2004 63 Prevailing Wage Rates.. What are they? Prevailing Wage Rates are the wages and supplements to be paid and/or provided to laborers, workers and mechanics employed on a public work project.

65. State Purchasing Forum 2004 64 Prevailing Wage Rates… How are they determined? Prevailing rates are based on collectively bargained agreements. The Department utilizes those agreements to determine the rate that covers the type of work activity in question.

66. State Purchasing Forum 2004 65 Prevailing Wage Rates… When are they determined? The prevailing rate of wages and supplements are determined annually on July 1 of each year and are effective through June 30, i.e. July 1, 2002 – June 30, 2003. (Article 8, Section 220, subd. 5a)

67. State Purchasing Forum 2004 66 Prevailing Wage Rates … When should they be used? Prevailing Wage Rates must be used on any public work project.* *Generally, projects for construction, reconstruction or maintenance done on behalf of a public agency (entity) are public work.

68. State Purchasing Forum 2004 67 Prevailing Wage Rates … When should they be used? The Contracting Agency must provide the prime contractor with a copy of the appropriate prevailing wage schedule.

69. State Purchasing Forum 2004 68 Prevailing Wage Rates … When should they be used? State law requires that these schedules be made part of all contracts between a government entity and a contractor. (Article 8, Section 220, subd. 3)

70. State Purchasing Forum 2004 69 Prevailing Wage Rates … Which rates apply? W ork involving the employment of laborers, workers or mechanics is subject to Article 8. Building service workers, i.e., janitorial services, are covered under Article 9 of the New York State Labor Law.

71. State Purchasing Forum 2004 70 Prevailing Wage Rates … Which work classification applies? The Bureau of Public Work looks at all factors to determine classification, including: * Nature of the work * Collective bargaining agreements * Jurisdictional agreements * Jurisdictional decisions * Historical practice * Past DOL recognition * Case law precedents

72. State Purchasing Forum 2004 71 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

73. State Purchasing Forum 2004 72 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

74. State Purchasing Forum 2004 73 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

75. State Purchasing Forum 2004 74 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

76. State Purchasing Forum 2004 75 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

77. State Purchasing Forum 2004 76 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

78. State Purchasing Forum 2004 77 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

79. State Purchasing Forum 2004 78 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

80. State Purchasing Forum 2004 79 Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us).www.labor.state.ny.us

81. State Purchasing Forum 2004 80 Additional Information: A copy of the current or past year’s Prevailing Wage Rates can be obtained on CD by e-mailing your request to: NYSDOL@labor.state.ny.us Any questions, please contact: NYS DOL Bureau of Public Work SOBC – Bldg. 12 – Rm. 130 Albany, NY 12240 Phone (518) 457-5589 Fax (518) 485-1870

82. 81 State Purchasing Forum 2004 CONTRACT APPROVAL -Barbara Norton Contracting Vehicles Quick Contracting Tips for Successful Approvals

83. 82 State Purchasing Forum 2004 TYPES OF CONTRACTING VEHICLES Purchase Orders Purchase Authorization (PA) Contracts Refer to Bulletin G 191 Contract Agreements AC340

84. 83 State Purchasing Forum 2004 QUICK CONTRACTING A mechanism that agencies can adopt to have certain contracts processed through OSC with a two-day turnaround time Refer to Bulletins G192 for commodities G201 For Services and Equipment

85. 84 State Purchasing Forum 2004 SOME TIPS FOR A SUCCESSFUL APPROVAL! Make sure that: the transaction is correctly batched, please review the new batch types – G194), your transaction is properly encumbered and signed by an authorized signatory, all the required documentation is included in the bid package.

86. State Purchasing Forum 2004 85 Questions Answers

87. Thank You for Being Here!