PUBLIC PURCHASING IN FLORIDA PROCUREMENT METHODS REV 9182007
PUBLIC PURCHASING IN FLORIDA PROCUREMENT METHODS (REV. 9/18/2007) 1
PROCUREMENT METHODS • • • GENERALLY AVAILABLE, All Jurisdictions: Small purchase Invitation to Bid (ITB) Request for Proposal (RFP) Single source/Sole source Emergency 2
FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK First consider in-place agreements: 1. State Term Contract (possibly RFQ) 2. FARF workshop (RESPECT) 3. Correctional work program (PRIDE) 4. Agency Term Contract 5. State Purchasing Agreement 6. Alternate Contract Source 3
FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK (2) Second, consider sourcing “from scratch. ” 7. Discretionary purchase 8. Exempt purchase 9. Informal competitive purchase (quote, informal bid) 10. Formal competitive: ITB, RFP, ITN 11. Single source 12. Emergency IMPORTANT TO CODE CORRECTLY IN MFMP 4
PROCUREMENT METHODS State Term Contracts 5
STATE TERM CONTRACTS o o STCs are requirements contracts entered into by State Purchasing pursuant to s. 287. 042 & s. 287. 056(1) Fla. Statutes & 60 A-1. 002(4)(m) & 60 A-1. 044(2)(a), FAC They combine common requirements to achieve deep discounts, and to provide administrative efficiencies State agencies must use state term contracts unless certain exceptions apply Eligible users, including state universities and political subdivisions may use STCs 6
OBJECTIVES OF STATE TERM CONTRACTING Our goal is to deliver State term contracts, strategically sourced, administratively easy to use, with the best value (prices, item/service quality, terms and conditions) obtainable by a customer of our stature. 7
STATE TERM CONTRACTS o There are some multi-vendor state term contracts (vehicles, copiers, IT consulting, others), based on a variety of factors: n n Specifications Geographic area Acquisition method (e. g. outright purchase or lease) Competition among state contractors 8
State Term Contracts o http: //dms. myflorida. com/business_ope rations/state_purchasing/vendor_inform ation/state_contracts_agreements_and_ price_lists/state_term_contracts 9
State Term Contracts Number Name Start End 03 -STO-011 SUNCOM Wireless Data Services - CITS 06/22/2006 06/27/2010 030 -040 -06 -1 Air Conditioners, Room Type Window / Wall Mount 06/18/2006 06/17/2008 070 -700 -07 -1 Medium & Heavy Trucks 03/28/2007 05/31/2009 070 -840 -06 -1 Utility Vehicles, Small: ATVs & Motorcycles 02/26/2006 09/30/2008 071 -000 -08 -1 Motor Vehicles 02/15/2008 09/30/2008 120 -440 -08 -1 Boat Motors 02/12/2008 02/28/2013 200 -05 -1 Uniforms 10/20/2004 10/19/2009 250 -000 -03 -1 IT Hardware 08/01/2002 07/31/2008 250 -040 -08 -1 PCs, Laptops and Monitors 03/01/2008 02/28/2011 252 -099 -03 -1 Web-Based e. Procurement System 10/09/2002 11/07/2010 10
State Term Contracts Number Name Start End 255 -001 -01 -1 Principle Technology: Microsoft License, Maintenance, & Services 02/08/2001 03/31/2009 268 -000 -04 -1 Pharmaceutical Purchasing Program - MMCAP 310 -000 -07 -1 Envelopes, Kraft, White Wove and Others 11/04/2006 11/03/2009 345 -200 -07 -1 Disaster Recovery Services 02/04/2004 02/01/2009 360 -240 -06 -1 Carpet & Flooring Materials 06/01/2006 05/31/2009 365 -001 -06 -1 Floor Maintenance Machines, Commercial 11/18/2005 11/24/2008 388 -600 -06 -1 Dietary Supplements & Vegetable Protein Dinners 06/27/2006 06/26/2009 390 -350 -07 -1 Food-Grade Ice for Emergency Operations 09/22/2006 08/02/2009 11
State Term Contracts Number Name Start End 390 -910 -07 -1 Potable Water for Emergency Operations 09/22/2006 08/02/2009 405 -000 -04 -1 Gasoline and Fuel Oil 08/01/2003 06/30/2009 405 -200 -08 -1 Liquefied Petroleum Gas 11/01/2007 10/31/2012 405 -215 -04 -1 Capacity Management and Acquisition of Natural Gas Supply 01/01/2004 12/31/2008 420 -07 -1 Furniture: Educational/Institutional 02/21/2007 02/20/2011 420 -590 -07 -1 Furniture: Library 02/21/2007 02/20/2011 425 -001 -06 -1 Furniture: Office and Files 03/02/2006 03/01/2010 445 -001 -07 -1 Tools, Hand Held, and Held Power Tools 07/30/2006 07/29/2009 12
State Term Contracts Number Name Start End 450 -000 -04 -1 Maintenance, Repair and Operation (MRO) Supplies 11/14/2003 11/13/2008 450 -000 -07 -1 MRO Electrical Equipment and Safety Equipment 11/14/2006 11/13/2009 450 -120 -06 -1 Batteries, Dry Cell & Rechargeable 02/14/2006 02/13/2009 475 -000 -05 -1 Medical and Dental Supply 10/01/2004 09/20/2010 477 -860 -08 -1 Equipment Maintenance Management Services 04/16/2008 04/15/2011 485 -060 -07 -1 Liners: Can, Plastic, Disposable 01/01/2007 12/31/2009 490 -000 -07 -1 Laboratory and Safety Supplies and Equipment 05/01/2007 04/30/2012 515 -630 -06 -1 Lawn Equipment 05/17/2006 05/16/2009 518 -020 -05 -1 Rental Vehicles 07/01/2004 06/30/2009 13
State Term Contracts Number Name Start End 600 -340 -06 -1 Copying and Facsimile Equipment, Maintenance, and Supplies 05/23/2006 05/22/2009 600 -760 -07 -1 Mail Processing Equipment 02/21/2007 02/20/2010 618 -001 -07 -1 Office and Classroom Supplies 01/29/2007 01/01/2010 640 -002 -06 -1 Paper: Tissues and Towels 08/04/2005 07/31/2008 645 -120 -04 -1 Paper: Office, Virgin and Recycled Content 03/28/2004 03/27/2009 680 -050 -07 -1 Ammunition, Handcuffs, Targets, Pepper Spray & Less-Lethal Munitions 10/05/2006 10/01/2008 680 -330 -06 -1 Security X-Ray/Walk-Through Metal Detectors and Hand-Held Wands 06/06/2006 06/05/2009 680 -350 -04 -1 Drug Screening Testing Devices, Disposable 03/12/2004 01/31/2009 14
State Term Contracts Number Name Start End 680 -370 -07 -1 Live Capture Electronic Fingerprinting Equipment 11/29/2007 11/28/2010 680 -650 -05 -1 Officers’ Equipment 12/23/2004 12/22/2008 680 -850 -05 -1 Body Armor (Protective Vests) 02/03/2005 08/02/2009 715 -001 -07 -1 Library Materials 03/01/2007 02/28/2012 725 -001 -01 -1 Statewide Law Enforcement Radio System 10/23/2000 06/30/2021 725 -330 -05 -1 Wireless Voice Services 05/11/2005 05/10/2010 730 -310 -99 -1 Telephone Systems, Electronic Key 03/26/1999 09/24/2008 730 -650 -99 -1 Telecommunications Equipment. Private Automatic Branch Exchange 02/17/1999 08/15/2008 740 -650 -07 -1 Ice Making Machines 07/30/2006 07/29/2008 15
State Term Contracts Number Name Start End 760 -001 -08 -1 Construction, Industrial & Agricultural Equipment 10/12/2007 06/30/2009 863 -000 -06 -1 Tires 03/01/2006 02/28/2009 880 -001 -06 -1 Audio Visual Equipment 01/23/2006 01/22/2009 908 -660 -07 -1 Training for Public Purchasing Professionals 972 -310 -06 -1 Court Reporting Services 06/01/2005 06/30/2008 973 -001 -06 -1 Management Consulting Services 06/01/2006 05/31/2009 973 -020 -07 -1 Benefit Consulting and Actuarial Services 11/07/2006 11/06/2009 973 -120 -97 -1 Purchasing Card Services 07/07/1997 07/05/2010 973 -163 -06 -1 Fuel Card Services 09/13/2005 09/12/2010 973 -320 -08 -1 Energy Savings 01/01/2008 12/31/2012 16
State Term Contracts Number Name Start End 973 -561 -06 -1 Information Technology Consulting Services 06/21/2006 06/20/2009 973 -890 -05 -1 Computer Software Training 07/20/2004 07/19/2008 991 -150 -04 -1 Computer Assisted Legal Research Services 08/06/2003 08/05/2008 991 -160 -05 -1 Courier Services 08/15/2004 08/14/2010 991 -300 -05 -1 Pest Control Services 05/03/2005 05/02/2010 991 -340 -02 -1 Food Service Operations 01/01/2002 06/30/2008 991 -380 -05 -D Security Guard Services 07/01/2005 06/30/2008 991 -460 -07 -1 Temporary Employment Staffing 05/17/2007 05/16/2010 991 -490 -05 -1 Lawn Care Services 12/01/2004 11/30/2009 991 -530 -04 -1 Mail Services 10/24/2003 09/30/2009 991 -705 -05 -1 Recycling Services, End of Life Electronics Equipment 07/22/2004 07/21/2008 17
CONTRACT EXCEPTIONS o o o The use of state term contracts is mandatory for agencies [Rule 60 A 1. 044(2), FAC], optional for other eligible users. Florida purchasing rules indicate acceptable reasons, and the process to follow [Rule 60 A-1. 044(3), FAC]. Some STCs include some degree of “built in” exception authority. 18
REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60 A-1. 044(3) FAC 1. 2. 3. 4. Critical delivery schedules which the ST contractor cannot provide. Need for compatibility with existing equipment. Non-availability of service. Applications of unique technical requirements, product quality or specifications that differ from those of the contract commodities or services. 19
REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60 A-1. 044(3) FAC o Exceptions are also authorized if n The purchase does not exceed the greater of $250 or any other amount authorized in the contract, or n The state term contract is expressly designated as a nonexclusive contract. 20
CONTRACT EXCEPTION PROCEDURE [60 A-1. 044(3)(b) FAC] o o o Exceptional purchases shall be documented by the agency making those purchases. The agency shall determine the conditions and circumstances justifying the purchase. Note: Exceptions exceeding Category Two are subject to the competitive or other sourcing requirements of statute and rule. 21
PROCUREMENT METHODS FARF workshop (RESPECT) 22
FARF workshop (RESPECT) o o o Requirements are established in Chapter 413, Florida Statutes DMS authority & responsibility are established by s. 413. 035 and s. 287. 042(1)(g), Florida Statutes 413. 031 Products, purchase by state agencies and institutions: Any purchasing officer who violates the provisions of this section shall be guilty of a misdemeanor of the second degree, punishable as provided in s. 775. 082 or s. 775. 083. 23
Rule 60 E – 1. 005(3)(d), F. A. C. “If a commodity or service is available from both an employment center and under a state term contract, the agency or eligible user may purchase such commodity or service from whichever of the two procurement options provides the best value to the agency or eligible user. ” 24
FARF workshop (RESPECT) o Fla. Stat. 775. 082 & 775. 083 n n o 775. 082 Penalties; applicability of sentencing structures; mandatory minimum sentences for certain reoffenders previously released from prison. 775. 083 Fines. RESPECT Web site at www. respectofflorida. org 25
FARF workshop (RESPECT) o S. 413. 036(1): If any agency intends to procure any product or service on the procurement list, that agency shall, … procure such product or service … from a qualified nonprofit agency … if the product or service is available within a reasonable delivery time…. this act shall have precedence over any law requiring state agency procurement of products or services from any other nonprofit corporation. . . 26
FARF workshop (RESPECT) o 413. 036(4) No similar product or service of comparable price and quality … may be purchased from any source other than the nonprofit agency for the blind or for the severely handicapped if the nonprofit agency certifies that the product is manufactured or supplied by, or the service is provided by, the blind or the severely handicapped and the product or service meets the comparable performance specifications and comparable price and quality requirements as determined by the department or an agency…. 27
FARF workshop (RESPECT) o S. 413. 036(2): The provisions of part I of chapter 287 do not apply to any purchase of commodities or contractual services made by any legislative, executive, or judicial agency of the state from a qualified nonprofit agency for the blind or for the other severely handicapped. 28
FARF workshop (RESPECT) S. 413. 036(3) If, pursuant to a contract between any legislative, executive, or judicial agency of the state and any private contract vendor, a product or service is required by the Department of Management Services or on behalf of any state agency that is included on the procurement list established by the commission pursuant to s. 413. 035(2), the contract must contain the following language: 29
FARF workshop (RESPECT) "IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES THAT ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACT SHALL BE PURCHASED FROM A NONPROFIT AGENCY FOR THE BLIND OR FOR THE SEVERELY HANDICAPPED THAT IS QUALIFIED PURSUANT TO CHAPTER 413, FLORIDA STATUTES, IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 413. 036(1) AND (2), FLORIDA STATUTES; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THE STATE AGENCY INSOFAR AS DEALINGS WITH SUCH QUALIFIED NONPROFIT AGENCY ARE CONCERNED. " 30
PROCUREMENT METHODS Correctional work program (PRIDE) 31
CORRECTIONAL WORK PROGRAM (PRIDE) o o Requirements are established in Chapter 946, Florida Statutes DMS authority & responsibility are established by s. 946. 515 and s. 287. 042(1)(d-f), Florida Statutes 32
CORRECTIONAL WORK PROGRAM (PRIDE) Legislative intent (Chapter 946, FS): 1. To reinforce relevant education, training, and post release job placement and help reduce recommitment 2. To serve the security goals of the state through the reduction of idleness of inmates and to provide incentives for good behavior 3. To reduce the cost of state government by operating enterprises primarily with inmate labor 33
CORRECTIONAL WORK PROGRAM (PRIDE) 4. 5. 6. 7. To serve the rehabilitative goals of the state by duplicating…the operating activities of a freeenterprise type of profit making enterprise To aid inmates in adjustment after release and to prepare inmates for gainful employment The state shall have a continuing interest in assuring continuity and stability in the operation The corporation will devise and operate correctional work programs to utilize inmates of all custody levels, with specific emphasis on reducing idleness among close custody inmates. 34
CORRECTIONAL WORK PROGRAM (PRIDE) o No similar product or service of comparable price and quality found necessary for use by any state agency may be purchased from any source other than the corporation if the corporation certifies that the product is manufactured by, or the service is provided by, inmates (http: //www. prideenterprises. org) and the product or service meets the comparable performance specifications and comparable price and quality requirements as specified under s. 287. 042(1)(f) or as determined by an individual agency as provided in this section. The purchasing authority of any such state agency make reasonable determinations of need, price, and quality with reference to products or services available from the corporation. (s. 946. 515 FS) 35
Pride Products o http: //dms. myflorida. com/business_o perations/state_purchasing/vendor_in formation/state_contracts_agreement s_and_price_lists/pride 36
Pride Products Number Name Start End 200 -050 -06 -P Detention Clothing 10/06/2005 10/05/2008 425 -001 -05 -P Office Furniture 06/16/2005 425 -540 -95 -P Lockers, Metal Storage 04/30/1997 450 -130 -96 -P Shelving, Metal, Open & Closed 04/30/1997 485 -000 -06 -P Cleaning Chemicals & Supplies 11/27/2006 535 -000 -00 -P Fencing 02/25/2000 550 -00 -P Signage 06/12/2000 630 -550 -97 -P Traffic Paint, Water Emulsion-Based 10/10/1997 650 -000 -98 -P Furniture, Park Recreational 03/13/1998 850 -500 -95 -P Mattress, Polyester Fiberfill & Synthetic Foam 04/30/1997 991 -470 -96 -P Key Data Entry Services 07/01/1995 37
CORRECTIONAL WORK PROGRAM (PRIDE) o In the event of a dispute between the corporation and any purchasing authority based upon price or quality under this section or s. 287. 042(1)(f), either party may request a hearing with the Department of Management Services and if not resolved, either party may request a proceeding pursuant to ss. 120. 569 and 120. 57, which shall be referred to the Division of Administrative Hearings 38
CORRECTIONAL WORK PROGRAM (PRIDE) o o o 120. 57 Additional procedures for particular cases. -- (1) ADDITIONAL PROCEDURES APPLICABLE TO HEARINGS INVOLVING DISPUTED ISSUES OF MATERIAL FACT. 120. 569 Decisions which affect substantial interests. 39
CORRECTIONAL WORK PROGRAM (PRIDE) o S. 946. 515(4) The provisions of part I of Chapter 287 do not apply to any purchases of commodities or contractual services made by any legislative, executive, or judicial agency of the state from the corporation. Exception: Printing (ref. 283. 33 FS). 40
Correctional work program (PRIDE) o S. 946. 515(6) If, pursuant to a contract between any … agency … and any private contract vendor, a product or service is required … (and) is certified by or is available from the corporation …, and has been approved in accordance with subsection (2), the contract must contain the following language: 41
CORRECTIONAL WORK PROGRAM (PRIDE) o IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES WHICH ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACT SHALL BE PURCHASED FROM THE CORPORATION IDENTIFIED UNDER CHAPTER 946, F. S. , IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 946. 515(2), AND (4), F. S. ; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THIS AGENCY INSOFAR AS DEALINGS WITH SUCH CORPORATION ARE CONCERNED. 42
CORRECTIONAL WORK PROGRAM (PRIDE) PRIDE price agreements with DMS are available at: http: //www. pride-enterprises. org Other PRIDE products are available through the PRIDE web site at http: //www. pride-enterprises. org 43
PROCUREMENT METHODS Agency Term Contract 44
AGENCY TERM CONTRACT o o A term contract is defined in s. 287. 012(28) as “an indefinite quantity contract to furnish commodities or contractual services during a defined period. ” An agency, like State Purchasing, can and should examine repetitive small purchases to determine the possibility of consolidation (aggregation) into a term contract. 45
AGENCY TERM CONTRACT The purpose of an agency term contract is for that agency similar to the purpose of a state term contract: To combine common requirements in order to achieve deep discounts, and to provide administrative efficiencies. 46
AGENCY TERM CONTRACT o o o Methods of soliciting an agency term contract can include: Informal bid Invitation to Bid Request for Proposal Invitation to Negotiate Single Source Emergency 47
Agency Term Contracts can be established to enable o o o Definite quantity/schedule purchase orders Indefinite quantity/schedule “blanket” term purchase orders Term purchase orders with definite and indefinite quantity/schedule line items Individual delivery/performance purchase orders Purchasing card transactions All of the above 48
STATE PURCHASING AGREEMENTS o http: //dms. myflorida. com/business_o perations/state_purchasing/vendor_in formation/state_contracts_agreement s_and_price_lists/state_purchasing_a greements 49
STATE PURCHASING AGREEMENTS o o Reflect a policy change implemented Jan. 16, 2004, to replace vendor-driven, noncompetitive SNAPS agreements with buyer -driven competitive state purchasing agreements. Are solicited by State Purchasing informally upon buyer request accompanied by commodity specifications and/or a contractual services statement of work. 50
STATE PURCHASING AGREEMENT INTENDED USE n n The SPA is intended for individual purchases not exceeding the state agency bid threshold, Category 2 ($25, 000) If purchases exceeding the bid threshold for state agencies ($25, 000) are foreseen during the term of the SPA, the buyer cannot use the SPA, but must combine and “bid” the requirements. 51
STATE PURCHASING AGREEMENT The form for requesting a SPA and the terms and conditions applicable are posted on the State Purchasing web site at http: //dms. myflorida. com/business_o perations/state_purchasing/document s_forms_references_resources (PUR 7721) 52
STATE PURCHASING AGREEMENT o o State Purchasing Agreements are at least, 12 month agreements (and some have renewal(s)) with a single or multiple awarded vendor(s) per item or service or area, or combination thereof Each SPA is available for use by both state agencies and other eligible users, but is not mandatory for any user 53
STATE PURCHASING AGREEMENT o o ADVANTAGES n More competitive than a one-time informal bid by one buyer n After specs are developed, State Purchasing provides the terms & conditions, and has primary responsibility for the solicitation, evaluation and award n Resulting agreement available for other transactions n Usage not mandatory; may be used as benchmark for negotiation or further competition. DISADVANTAGE n May require more time than a one-time informal bid by one buyer 54
PROCUREMENT METHODS ALTERNATE CONTRACT SOURCE 55
ALTERNATE CONTRACT SOURCE o Among “powers & duties” of the division, s. 287. 042(16) FS allows State Purchasing to “evaluate contracts let by the Federal Government, another state, or a political subdivision for the provision of commodities and contract services…authorizing an agency to make purchases …. ” 56
ALTERNATE CONTRACT SOURCE o Further authority is contained in n S. 287. 057(5)(b) FS, as an exception to bidding, along with emergency and single source purchases n Rule 60 A-1. 047, FAC, referencing term contracts or requirements contracts competitively established by other governmental entities. 57
ALTERNATE CONTRACT SOURCE o The form for requesting an alternate contract source is available on the State Purchasing web site at http: //dms. myflorida. com/business_operati ons/state_purchasing/documents_forms _references_resources (PUR 7102) 58
ALTERNATE CONTRACT SOURCE Caveats before deciding: o Consider whether market conditions have changed and whether the contract price is indexed. o Consider whether the quantity priced was more or less than the quantity you wish to purchase and the possible impact of price breaks. o Consider applicability of the terms and conditions. o Obtain vendor consent. 59
PROCUREMENT METHODS Discretionary purchase 60
DISCRETIONARY PURCHASE o o o Discretionary purchases are small purchases under the $2, 500 threshold requiring informal bids in accordance with Rule 60 A-1. 002(2), FAC. The rule advises “good purchasing practices, ” which may include quotes. As with bid thresholds, consider purchasing office, and do not divide. 61
PROCUREMENT METHODS EXEMPT PURCHASE 62
EXEMPT PURCHASE o o o Current Florida law and administrative rules exempt some purchases from competitive requirements. Some statutory exemptions include language requiring some degree of competition Many agencies already use formal “ 287” competitive procedures for some exempt purchases. 63
EXEMPT PURCHASE 1. 2. 3. Exemptions fall into three categories: Exempt only by reason of the commodity or service to be purchased. Exempt only by reason of the vendor/contractor selected. Exempt by reason of both the commodity or service and the vendor/contractor. 64
EXEMPT PURCHASE Current exemptions, basis & reference o Commodities purchased for resale. Exemption independent of vendor. Ref. s. 287. 012(5) FS. o Prescriptive assistive devices, e. g. prosthetics, orthotics, wheelchairs. Exemption independent of vendor. Ref. s. 287. 057(5)(e) FS. 65
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Artistic services. Exemption independent of vendor. Ref. s. 287. 057(5)(f)1. FS. “Artist” defined in s. 287. 012(3) FS. o Academic program reviews. Exemption independent of vendor. Ref. s. 287. 057(5)(f)2. FS. 66
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Lectures by individuals. Exemption independent of vendor. Ref. s. 287. 057(5)(f)3. o Auditing services. Ref. s. 287. 057(5)(f)4. o Legal services, incl. attorney, paralegal, expert witness, appraisal, or mediator services. Ref. s. 287. 057(5)(f)5. 67
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Health services. Ref. s. 287. 057(5)(f)6. o Services provided to persons with mental or physical disabilities by not-for-profit corporations. Requires consideration of price and other factors. Exemption considers both the service and the source. Ref. s. 287. 057(5)(f)7. 68
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Medicaid services by a health care provider who has not received a provider number, exemption valid 90 days. Exemption considers both the service and the source. Ref. s. 287. 057(5)(f)8. o Family placement services. Exemption independent of vendor. Ref. s. 287. 057(5)(f)9. 69
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Prevention services related to mental health, and shelters for runaways operated by non-profits. Requires consideration of price and other factors. Exemption considers both the service and the source. Ref. s. 287. 057(5)(f)10. 70
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o o Training & education services provided to injured employees. Exemption independent of vendor. Ref. s. 287. 057(5)(f)11. Contracts pursuant to s. 337. 11 FS: the construction and maintenance of all roads. . rest areas, weigh stations, and other structures, including roads, parking areas, supporting facilities and associated buildings…. Exemption independent of vendor. Ref. s. 287. 057(5)(f)12. 71
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Services or commodities provided by governmental agencies. Exemption independent of commodity or service. Ref. s. 287. 057(5)(f)13. o Use definition of “agency” in s. 163. 3164, FS: n n (a) The United States or any department, commission, agency, or other instrumentality thereof. (b) This state or any department, commission, agency, or other instrumentality thereof. (c) Any local government, as defined in this section, or any department, commission, agency, or other instrumentality thereof. (d) Any school board or other special district, authority, or governmental entity. 72
EXEMPT PURCHASE Current exemptions, basis & reference, cont. o Continuing education events or programs …offered to the general public and for which fees …collected … pay all expenses…. Exemption independent of vendor. Ref. 287. 057(5)(g) FS. 73
EXEMPT PURCHASE Exemptions per Rule 60 A-1. 002(3)FAC o Regulated utilities & govt. franchised services o Regulated public communications except long distance o Promotional services…from donated funds by the Secretary of State… o Payments for membership dues pursuant to s. 216. 345 o Examinations approved per s. 455. 217(1)(c) o Adoption placement services 74
PROCUREMENT METHODS INFORMAL COMPETITIVE PURCHASE (QUOTE) 75
INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) o o Chapter 287 FS requires competitive purchases over $25, 000, with some exceptions, and is silent on smaller purchases. Rule 60 A-1. 002(3), FAC, addresses informal bids, $2, 500 through $25, 000. 76
INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) Requirements of rule 60 A-1. 002 are simple: o Obtain informal bids in writing, or make a written record. o If fewer than two quotes are received, document why. o Document if proceeding with a single source and/or negotiated purchase. 77
INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) o Remember: In determining the bid threshold, do not consider only the immediate transaction. Consider requirements for that commodity class and group on an agency-wide (or purchasing office area-wide) basis [ref. 60 A-1. 002(5) Fla. Admin. Code]. 78
In all Procurements Remember o An agency shall not divide the procurement of commodities or contractual services so as to avoid the requirements of subsections 287. 057(1) through (5) Fla. Stat. n Fla. Stat. 287. 057(10) o Is this enforceable by the Purchasing Department? If so, HOW? 79
INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) o o As in formal bidding, announce all requirements, terms and conditions, relevant dates, and selection criteria. Treat all vendors alike: No disclosures or collusion to favor one over another. AWARD NEED NOT BE BASED ON RESPONSIVENESS AND PRICE ALONE! CAN DO A “MINI RFP” OR “MINI ITN. ” 80
PROCUREMENT METHODS FORMAL COMPETITIVE PUCHASES: ITB, RFP, ITN 81
FORMAL COMPETITIVE: ITB, RFP, ITN o o Section 287. 057, Florida Statutes, and Rule 60 A-1. 002(4), Florida Administrative Code, require formal competitive solicitations for purchases exceeding Category Two (287. 012, FS). Exceptions include exempt purchases, and single source and emergency purchases. 82
FORMAL COMPETITIVE: ITB, RFP, ITN o The formal competitive methods are n Invitation to Bid n Request for Proposal n Invitation to Negotiate 83
FORMAL COMPETITIVE: ITB, RFP, ITN o These methods are ranked in order of preference. ITB is the first choice, with written justification required for one of the other choices. 84
FORMAL COMPETITIVE: ITB, RFP, ITN o o RFP is the second choice, requires justification as to why an ITB is not practicable [287. 057(2)(a) Fla. Stat. ] and is in fact the second most price-driven solution. ITN requires justification as to why neither of the others will result in best value [287. 057(3)(a) Fla. Stat. ] 85
FORMAL COMPETITIVE: ITB, RFP, ITN o “Best value” is defined as “the highest overall value … based on objective factors … not limited to price, quality, design, and workmanship. ” [s. 287. 012(4) Fla. Stat. ] 86
FORMAL COMPETITIVE: ITB, RFP, ITN o o Note that while ranked from most price-driven to least price-driven (let’s discuss!), the ranking also moves from least to greatest flexibility! Note also that they are ranked from least to most complex, and least to most time consuming! 87
FORMAL COMPETITIVE: ITB, RFP, ITN Let’s consider o Reasons for choosing one or the other o Advertising the solicitation o Specifications/Statement of Work o Vendor input o Responsiveness & Responsibility o Evaluation criteria and their weights, including price & other factors 88
REASONS FOR CHOOSING AN ITB 1. 2. 3. Standard off-the-shelf products are known to meet the need Standard services of a usual commercial type and price structure, especially technical or non -professional services, such as custodial or waste removal services, or equipment maintenance are known to meet the need Filling an immediate need one or a few times, or fulfilling a long term requirement with repetitive deliveries of same or similar products/services 89
REASONS FOR CHOOSING AN ITB 4. 5. 6. Wide competition is available The agency desires to fulfill the requirement at the lowest possible price consistent with at least meeting its minimum standards. The vendor’s experience, education, understanding of your mission, etc. , don’t greatly impact the agency’s results. 90
REASONS FOR CHOOSING AN ITB 7. Any concerns about vendor qualifications can be easily addressed by a simple submittal with the bid, e. g. copy of occupational license, certification by the manufacturer that vendor is a trained/authorized provider, three satisfactory references, etc. 91
ADVERTISING THE ITB o o o The ITB must be made available simultaneously to all vendors [287. 057(1)(a)]. Advertising is required for a minimum of 10 calendar days [s. 287. 042(3)(b)(1)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state. A longer period may be advisable to assure adequate competition. 30 days may be reasonable. 92
SPECIFICATIONS/STATEMENT OF WORK, ITB o o o Specs/SOW designed to avoid restrictive specifications and obtain maximum competition Deliverables are clearly and unequivocally spelled out Any product or service from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price 93
VENDOR INPUT, ITB o o Any necessary market research is conducted prior to solicitation Vendor conferences are more the exception than the rule Vendors have a limited time period to ask questions (up to 10 days before bid opening or as otherwise specified) Disputes must be noticed within 72 hours of public posting of the ITB 94
RESPONSIVENESS & RESPONSIBILITY, ITB o “Responsive” bid means a bid that conforms in all material respects to the solicitation. (Material means bid meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage). 95
RESPONSIVENESS & RESPONSIBILITY, ITB o Mandatory evaluation criteria reflect the factors and considerations that are essential to the requirement. Bidders must comply with these mandatory criteria. Words such as “must, ” “will, ” and “shall” are used t reflect the mandatory nature of each factor. 96
RESPONSIVENESS & RESPONSIBILITY, ITB o o Clauses containing mandatory language criteria must be clear and specific as to expectations of the bidder. It is the responsibility of the purchasing agent to ensure that the bidders can meet the conditions for compliance. NIGP “Sourcing in the Public Sector” first edition (2004) - page 194 – Responsiveness & Responsibility criteria for all procurements! 97
RESPONSIVENESS & RESPONSIBILITY, ITB o “Responsible” denotes a vendor “who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287. 012(24)]” 98
RESPONSIVENESS & RESPONSIBILITY, ITB o While vendor capability is not scored, responsibility can be considered: 1. Review suspended and convicted vendor lists 2. Use complaints for tie breakers 99
RESPONSIVENESS & RESPONSIBILITY, ITB 3. 4. Make certain that any necessary “responsibility” indicators are mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references of satisfactory service, location proximate to the work, D & B rating, etc. Require bonding and/or insurance if appropriate to mitigate risk 100
RESPONSIVENESS & RESPONSIBILITY, ITB 5. Consider at the time of evaluation any other relevant information you may obtain, e. g. from the company web site or other business related sites, or from state records. 101
EVALUATION CRITERIA & WEIGHTS All applicable terms and conditions, including the criteria to be used in determining acceptability must be stated in the ITB. o Include the price for each year for which the contract may be renewed. o Criteria not set forth may not be used. Ref. s. 287. 057(1) FS o 102
EVALUATION CRITERIA & WEIGHTS Bidders are compared to each other only as to price. The low responsive bid from a responsible bidder gets the award. 103
REASONS FOR CHOOSING AN RFP 1. 2. 3. It is not practicable to specifically define the scope of work, and the vendor will propose [287. 012(22)]. Professional and technical expertise and quality of the vendor and proposed offering are critical to success. Requirements include non-standard products/services, with some flexibility in what is ultimately purchased. 104
REASONS FOR CHOOSING AN RFP 4. The agency seeks to balance price and quality to achieve the best value. 5. There are believed to be more than two or three vendors who can submit a satisfactory offer. 6. The agency does not anticipate a need to revise the solicitation and proposals after initial receipt. Document the reason an ITB was not used [287. 057(2)(a) FS] 105
ADVERTISING THE RFP o o o The RFP must be made available simultaneously to all vendors [287. 057(2)]. Advertising is required for a minimum of 10 calendar days [s. 287. 042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state. A longer period may be advisable to assure adequate competition. 42 -60 days may be reasonable. 106
SPECIFICATIONS/STATEMENT OF WORK, RFP o o o Specs/SOW designed to avoid restrictive specifications and obtain maximum competition. Objectives, outcomes, performance specifications and measures are set forth, in addition to any commodity specifications or service outputs. A proposal from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price and other factors which make it the most advantageous to the state [287. 057(2)]. 107
VENDOR INPUT, RFP o o Market research is conducted prior to solicitation Disputes must be noticed within 72 hours of public posting of the RFP Vendor conferences are more the rule than the exception Vendors are invited to submit questions prior to and during a preproposal conference. 108
VENDOR INPUT, RFP o o Vendor questions and tentative answers are discussed at a pre-proposal conference, with the aim of learning from the vendors of any ambiguities, omissions, contradictions, or other possibly better terms and conditions that can be considered to improve the RFP, and assisting the vendors to understand the agency’s requirements and objectives. A written addendum providing official answers and changes to the solicitation will be published following the conference. 109
VENDOR INPUT, RFP o Discussions may be held to clarify offers, if allowed by the terms of the RFP. 110
RESPONSIVENESS & RESPONSIBILITY, RFP o “Responsive” proposal means a proposal that conforms in all material respects to the solicitation. (Material means bid meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage). 111
RESPONSIVENESS & RESPONSIBILITY, RFP o Mandatory evaluation criteria reflect the factors and considerations that are essential to the requirement. Bidders must comply with these mandatory criteria. Words such as “must, ” “will, ” and “shall” are used t reflect the mandatory nature of each factor. 112
RESPONSIVENESS & RESPONSIBILITY, RFP o o Clauses containing mandatory language criteria must be clear and specific as to expectations of the bidder. It is the responsibility of the purchasing agent to ensure that the bidders can meet the conditions for compliance. NIGP “Sourcing in the Public Sector” first edition (2004) - page 194 – Responsiveness & Responsibility criteria for all procurements! 113
RESPONSIVENESS & RESPONSIBILITY, RFP o “Responsible” denotes a vendor “who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287. 012(24)]” 114
RESPONSIVENESS & RESPONSIBILITY, RFP o o Vendor capability is typically scored, and is a factor in determining the award. In addition, responsibility can be considered similarly to an ITB process: 1. 2. review suspended and convicted vendor lists use complaints for tie breakers 115
RESPONSIVENESS & RESPONSIBILITY, RFP 3. 4. Make certain “responsibility” indicators mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references, location proximate to the work, D & B rating, etc. Require bonding and/or insurance if appropriate to mitigate risk 116
RESPONSIVENESS & RESPONSIBILITY, RFP 5. Consider at the time of evaluation any other relevant information you may obtain, e. g. from the company web site or other business related sites, or from state records. 117
EVALUATION CRITERIA & WEIGHTS All applicable terms & conditions, including the criteria to be used in determining acceptability, which shall include but need not be limited to price, must be stated in the RFP. o Include the price for each year for which the contract may be renewed. o Award shall be to the proposal determined in writing to be the most advantageous, taking into consideration price & the other criteria set forth in the RFP. Ref. s. 287. 057(2) FS o 118
EVALUATION CRITERIA & WEIGHTS o Respondents are compared to each other as to price and the other criteria identified in the RFP, such as qualifications and proposed processes, equipment and services (solutions). The highest scoring responsive proposal from a responsible vendor gets the award, as the most advantageous to the state. 119
REASONS FOR CHOOSING AN ITN 1. 2. 3. 4. Negotiations may be necessary to receive the best value [287. 057(3)(a) FS. ] Non-standard or customized products/services or systems. High complexity. Emphasis on technology. 120
REASONS FOR CHOOSING AN ITN 5. 6. 7. 8. Process re-engineering may be included. Innovative solutions may be required. Performance based contract may be sought. Outsourcing of governmental functions is included. 121
REASONS FOR CHOOSING AN ITN 9. 10. 11. 12. Highly professional service requirements. Limited availability of competition. Multiple options for achieving the desired results. Uncertainty of how much of the “wish list” can be had within budget or time requirements, and willingness to adjust. 122
REASONS FOR CHOOSING AN ITN 13. 14. 15. 16. Mission critical for the agency. Significant portion of the agency’s procurement budget. Long term relationship with the contractor. Price is important but not enough by itself to select from among the responsive offers. A written determination for selecting an ITN process is required [s. 287. 057(3)]. 123
ADVERTISING THE ITN o o o The ITN must be made available simultaneously to all vendors [287. 057(3)]. Advertising is required for a minimum of 10 calendar days [s. 287. 042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state. A longer period may be advisable to assure adequate competition. 42 -60 days may be reasonable. 124
ADVERTISING THE ITN o Typically, competitive negotiations are a two-step process. In the first step, respondents are ranked, and a “short list” of firms to participate may be developed, and in the second step, negotiations are conducted with the top ranked or shortlisted firms to arrive at the award of a contract. This requires additional time, usually 3 or more meetings at weekly intervals with each negotiating firm. 125
SPECIFICATIONS/STATEMENT OF WORK, ITN o o o Specs/SOW designed to avoid restrictive specifications and obtain maximum competition. Objectives, outcomes, performance specifications and measures are set forth, in addition to any commodity specifications or service outputs. A best-and-final offer (BAFO) from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price and other factors which make it the most advantageous to the state [287. 057(3)]. 126
VENDOR INPUT, ITN o o Market research is conducted prior to solicitation Disputes must be noticed within 72 hours of public posting of the ITB Vendor conferences are more the rule than the exception Vendors are invited to submit questions prior to and during a preproposal conference. 127
VENDOR INPUT, ITN o o Vendor questions and tentative answers are discussed at a pre-proposal conference, with the aim of learning from the vendors of any ambiguities, omissions, contradictions, or other possibly better terms and conditions that can be considered to improve the RFP. A written addendum providing official answers and changes to the solicitation will be published following the conference. 128
VENDOR INPUT, ITN o After the vendors are selected for participation in negotiations, it may be useful to hold a “debriefing” meeting with each in turn, more fully explaining the state’s view of their initial proposal, how it may be improved, and asking any questions the team has that may lead to revisions of our requirements or the vendor proposals. 129
VENDOR INPUT, ITN o Meet separately with each selected vendor fact finding and proposal development. And, be open to further revisions of the requirements document. If useful during one of these negotiation process meetings, there’s nothing wrong with taking a break during a meeting for the parties to confer separately, “call home, ” or whatever, and then reconvene. 130
VENDOR INPUT, ITN o Negotiation offers the greatest flexibility of the three methods discussed, allowing both the requirements of the agency and the proposal of the respondent to be repeatedly improved after the initial solicitation and response. The agency may obtain maximum value from the vendors’ expertise, by encouraging vendors to offer suggestions for requirements and solutions, and price/quality trade-offs. 131
VENDOR INPUT, ITN o In addition, the purchasing officer guiding the ITN process can craft it so that technical errors of responsiveness or responsibility, which often plague the ITB and RFP processes, resulting in exclusion from consideration of what may be the best offer, or litigation, can be resolved at the negotiation table. 132
RESPONSIVENESS & RESPONSIBILITY, ITN o “Responsive” proposal or best-and- final offer (BAFO) means a proposal that conforms in all material respects to the solicitation. (Material means offer meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage). 133
RESPONSIVENESS & RESPONSIBILITY, ITN o Mandatory evaluation criteria reflect the factors and considerations that are essential to the requirement. Bidders must comply with these mandatory criteria. Words such as “must, ” “will, ” and “shall” are used to reflect the mandatory nature of each factor. 134
RESPONSIVENESS & RESPONSIBILITY, ITN o o Clauses containing mandatory language criteria must be clear and specific as to expectations of the bidder. It is the responsibility of the purchasing agent to ensure that the bidders can meet the conditions for compliance. NIGP “Sourcing in the Public Sector” first edition (2004) - page 194 – Responsiveness & Responsibility criteria for all procurements! 135
RESPONSIVENESS & RESPONSIBILITY, ITN o “Responsible” denotes a vendor “who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287. 012(24)]” 136
RESPONSIVENESS & RESPONSIBILITY, ITN o o Vendor capability is typically scored, and is a factor in determining the award. In addition, responsibility can be considered similarly to an ITB process: 1. 2. Review suspended and convicted vendor lists Make certain “responsibility” indicators mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references, location proximate to the work, D & B rating, etc. 137
RESPONSIVENESS & RESPONSIBILITY, ITN 4. 5. 6. Use complaints for tie breakers Require bonding and/or insurance if appropriate to mitigate risk Consider at the time of evaluation any other relevant information you may obtain, e. g. from the company web site or other business related sites, or from state records. 138
EVALUATION CRITERIA & WEIGHTS o o All applicable terms & conditions, including the criteria to be used in determining acceptability, must be stated in the ITN. Include the price for each year for which the contract may be renewed. Evaluate & rank responsive replies. Select one or more vendors to commence negotiations. 139
EVALUATION CRITERIA & WEIGHTS o o Award shall be to the proposal determined in writing to offer the best value to the state. The contract file must contain a statement that explains the basis for the vendor selection, and sets forth the deliverables and price, and how they provide best value. Ref. s. 287. 057(3)(b) FS 140
EVALUATION CRITERIA & WEIGHTS o Respondents are compared to each other as to price and the other criteria identified in the ITN, such as qualifications and proposed processes, equipment and services (solutions). The best value gets the award. This would be reflected as the highest scoring responsive best-andfinal offer from a responsible vendor. 141
OTHER NEGOTIATION PROCESSES • • Informal negotiations may be conducted with or between State Contract, State Purchasing Agreement and agency contract vendors, or a combination thereof. Informal negotiations may be conducted with single source vendors. Informal negotiations may be conducted with exempt vendors. Informal negotiations may be conducted with incumbent vendors due to changes in circumstances or objectives, or at renewal decision points. 142
PROCUREMENT METHODS SINGLE SOURCE 143
SINGLE SOURCE o “…fair and open competition is a basic tenet of public procurement; … competition reduces the appearance and opportunity for favoritism and inspires public confidence that contracts are awarded equitably…” 287. 001, FS 144
SINGLE SOURCE o o AUDITOR GENERAL BILL MONROE’S REPORT IN 2001 CRITICIZED INAPPROPRIATE USE OF SINGLE SOURCE, ADVOCATED WEB POSTING. THIS LED TO SECTION 15 OF HB 1977 IN 2002 REVISING S. 287. 057 ON SINGLE SOURCES. 145
SINGLE SOURCES AS OF JULY 1, 2002 1. 2. Section 287. 057(5)(c) applies. Single source descriptions must be posted on the web 7 business days. < $25, 000 - > $25, 000 ? ? 3. Thereafter, if determined to proceed, post intended decision 3 business days, providing point of entry for protest. 146
SINGLE SOURCES AS OF JULY 1, 2002 o o IF SINGLE SOURCE EXCEEDS CATEGORY 4, $150, 000, REQUEST AUTHORITY FROM DMS BEFORE POSTING NOTICE OF INTENDED DECISION. DMS HAS 21 DAYS TO RESPOND. 147
SINGLE SOURCE o 60 A-1. 002(6) FAC: Over $25, 000, persons taking part in the development or selection criteria for evaluation, the evaluation process, or the award process shall attest in writing that they are independent of and have no conflict of interest in, the entities evaluated and selected. 148
ELEMENTS OF SINGLE SOURCE DESCRIPTION o o o o SS# ___ AGENCY ____ Statutory reference if applicable Commodity or Service Required Performance and/or Design Reqs Intended Source & Price Justification for single source Approved by Request for information 149
ELEMENTS OF NOTICE OF INTENDED DECISION o o o o SS# ___ AGENCY _____ Statutory reference Commodity or Service Required Performance and/or Design Reqs Intended Source & Price Justification for single source Approved by Point of entry language (Ch. 120) 150
REQUEST FOR DMS APPROVAL o o o Furnish the information required on PUR 7777, available on State Purchasing Forms web site Attach copies of advertisement Attach any responses from vendors Explanation of rejection, if any offers received Confirmation of vendor registrations (MFMP) Submit by email to singlesource@dms. state. fl. us 151
JUSTIFYING A SINGLE SOURCE o o o There are few “absolute” single source products and services. Most single source purchases are “situational. ” Consider the following: NECESSARY: Is this commodity or service necessary to accomplish the agency’s task or mission? UNIQUE: Is this commodity or service, or some necessary features, unique to this source? If the answer isn’t yes to BOTH, you do not have a legitimate single source. 152
JUSTIFYING A SINGLE SOURCE CAVEAT EMPTOR: FOLLOWING THE SINGLE SOURCE POSTING REQUIREMENTS IS NOT SUFFICIENT TO KEEP YOU AND YOUR CUSTOMER OUT OF TROUBLE 153
MISUSINGLE SOURCE IS A FELONY o o S. 838. 22, Florida Statutes: IT IS UNLAWFUL FOR A PUBLIC SERVANT, WITH CORRUPT INTENT …TO CIRCUMVENT A COMPETITIVE BIDDING PROCESS…BY USING A SOLE-SOURCE CONTRACT… ANY PERSON WHO VIOLATES THIS SECTION COMMITS A FELONY… 154
WHAT TO DO o o o WHEN IN DOUBT, BID IT OUT COMPETITION VS. SINGLE SOURCE ROUTINELY SAVES 10%-30% AVOID SINGLE SOURCE FOLLOW-ONS TO COMPETITIVE PURCHASES: CONSIDER LONGER TERM COMPETITIVE CONTRACTS WITH ADDITION/DELETION CLAUSES, AND PRICING TIED TO INDICES 155
WHAT TO DO o o o TAKE RESPONSIBILITY. Don’t hesitate to state your position to your customers. Your authority as a state purchasing agent is limited to lawful activities. Document your file. COMMUNICATE. Don’t accept requests for single sources without comment. Explain requirements and the reasons for them. Cite the statutes. Provide effective alternatives. 156
WHAT TO DO o Even with single source vendors, it may be possible to negotiate more favorable terms. Do your homework, be proactive. 157
PERSPECTIVE o o CAVEAT: You are not the Supreme Court. You have a professional opinion. Your responsibility is commensurate with your authority. Higher authority may accept responsibility commensurate with its authority. 158
PERSPECTIVE 1. 2. 3. 4. If you can’t help them, they don’t need you. Program areas do not exist to support administrative services. Au contraire. Always be prepared to offer effective alternatives, and take responsibility for helping. See point number one. 159
PERSPECTIVE o If your office is typically not included by agency decision makers early enough to work at maximum effectiveness in undertakings that require major purchases, work to turn that around. Clarify timelines and the support that can be provided. 160
PROCUREMENT METHODS EMERGENCY PURCHASES 161
EMERGENCY PURCHASES o o WHAT: A PURCHASE IS REQUIRED TO ADDRESS AN IMMEDIATE DANGER TO THE PUBLIC HEALTH PUBLIC SAFETY PUBLIC WELFARE OR OTHER SUBSTANTIAL LOSS TO THE STATE. [287. 057(5) FS] 162
EMERGENCY PURCHASES o PROCEDURE 1. 2. AGENCY HEAD MAKES A WRITTEN DETERMINATION OF THE REQUIREMENT FOR EMERGENCY ACTION (PUR 7800) WITHIN 30 DAYS. OBTAIN AND DOCUMENT PRICING FROM AT LEAST TWO PROSPECTIVE VENDORS, UNLESS THE AGENCY ALSO MAKES A WRITTEN DETERMINATION THAT THE TIME REQUIRED WILL INCREASE THE IMMEDIATE DANGER OR LOSS 163
EMERGENCY PURCHASES o PROCEDURE (CONT. ) 3. 4. FURNISH TO DMS ALL WRITTEN DETERMINATIONS CERTIFIED UNDER OATH AND ANY OTHER DOCUMENTS RELATING TO THE EMERGENCY ACTION. FURNISH A COPY TO THE CFO WITH THE VOUCHER AUTHORIZING PAYMENT. 164
EMERGENCY PURCHASES o PROCEDURE (CONT. ) [60 A-1. 046, FAC] n State Purchasing will not approve any emergency purchase, as the burden of proof rests with the certifying officer n Emergency certifications on form PUR 7800 will be reviewed by State Purchasing 165
PERSPECTIVE o o GET YOUR CUSTOMERS WHAT THEY NEED WHEN THEY NEED IT PLAN AHEAD TO THE EXTENT POSSIBLE OBTAIN THE BEST VALUE POSSIBLE DO NOT MISREPRESENT A N 0 NEMERGENCY AS AN EMERGENCY 166
PUBLIC RECORDS FRAUD o S. 839. 13 FS: “…if any…public officer, or employee…of…a public agency, shall falsify…any record…or shall knowingly and willfully…conceal any issue, or shall…falsify any document…or be in anywise concerned therein, the person…shall be guilty of a misdemeanor… punishable as provided in s. 775. 082 or s. 775. 083. ” 167
PUBLIC RECORDS FRAUD o Fla. Stat. 775. 082 & 775. 083 n n 775. 082 Penalties; applicability of sentencing structures; mandatory minimum sentences for certain reoffenders previously released from prison. 775. 083 Fines. 168
OFFICIAL MISCONDUCT o o S. 838. 022 FS: (1) It is unlawful for a public servant, with corrupt intent to obtain a benefit for any person or to cause harm to another, to: (a) Falsify, or cause another person to falsify, any official record or official document; (b) Conceal, cover up, destroy, mutilate, or alter any official record or official document or cause another person to perform such an act; or (c) Obstruct, delay, or prevent the communication of information relating to the commission of a felony that directly involves or affects the public agency or public entity served by the public servant. 169
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