State Purchasing Forum 2004 1 PURCHASING 101 Welcome

State Purchasing Forum 2004 1

PURCHASING 101 ü Welcome & Introductions ü Course Overview ü General Information ü Session Time – One Hour ü Hush Sounds ü Ask Questions ü LISTEN, LEARN AND ENJOY! State Purchasing Forum 2004 2

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

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 State Purchasing Forum 2004 4

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

State Purchasing Forum 2004 6

The Agency Purchasing Flowchart • Choices and decisions at each step • Remember the Procurement Record State Purchasing Forum 2004 7

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

Process a Request for a needed commodity or service. . First determine: 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? State Purchasing Forum 2004 9

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 State Purchasing Forum 2004 10

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 State Purchasing Forum 2004 11

State Purchasing Forum 2004 12

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

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

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

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

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 State Purchasing Forum 2004 17

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

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

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 State Purchasing Forum 2004 20

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

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

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

Why are agencies required to advertise in the Contract Reporter? l l 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. 24 State Purchasing Forum 2004

What are the guidelines for advertising? l l 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. 25 State Purchasing Forum 2004

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

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

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

Some details… l l l Internet Explorer 5. 5+ on your PC download IE at "Agency Help" link cookies enabled l l The system will NOT run on Netscape. The system will NOT run on a Mac. 29 State Purchasing Forum 2004

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

State Purchasing Forum 2004 31

State Purchasing Forum 2004 32

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. 33 State Purchasing Forum 2004

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

State Purchasing Forum 2004 35

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

37 State Purchasing Forum 2004

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

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

State Purchasing Forum 2004 40

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

State Purchasing Forum 2004 42

State Purchasing Forum 2004 43

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

State Purchasing Forum 2004 45

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

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

HOW TO DO A SEARCH IN THE MWBE DIRECTORY State Purchasing Forum 2004 48

Website Address: www. empire. state. ny. us State Purchasing Forum 2004 49

State Purchasing Forum 2004 50

State Purchasing Forum 2004 51

State Purchasing Forum 2004 52

State Purchasing Forum 2004 53

State Purchasing Forum 2004 54

State Purchasing Forum 2004 55

State Purchasing Forum 2004 56

State Purchasing Forum 2004 57

State Purchasing Forum 2004 58

State Purchasing Forum 2004 59

State Purchasing Forum 2004 60

State Purchasing Forum 2004 61

Department of Labor Bureau of Public Work Mary Mc. Donnell • What are Prevailing Wage Rates • When To Use Prevailing Wage Rates • Where To Find Them State Purchasing Forum 2004 62

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. State Purchasing Forum 2004 63

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. State Purchasing Forum 2004 64

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. 5 a) State Purchasing Forum 2004 65

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. State Purchasing Forum 2004 66

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. State Purchasing Forum 2004 67

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) State Purchasing Forum 2004 68

Prevailing Wage Rates … Which rates apply? Work 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. State Purchasing Forum 2004 69

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

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

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 State Purchasing Forum 2004 80

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

TYPES OF CONTRACTING VEHICLES Purchase Orders Purchase Authorization (PA) Contracts l Refer to Bulletin G 191 Contract Agreements AC 340 State Purchasing Forum 2004 82

QUICK CONTRACTING A mechanism that agencies can adopt to have certain contracts processed through OSC with a two-day turnaround time Refer to Bulletins G 192 for commodities G 201 For Services and Equipment State Purchasing Forum 2004 83

SOME TIPS FOR A SUCCESSFUL APPROVAL! Make sure that: the transaction is correctly batched, please review the new batch types – G 194), your transaction is properly encumbered and signed by an authorized signatory, all the required documentation is included in the bid package. State Purchasing Forum 2004 84

Questions Answers State Purchasing Forum 2004 85

g n ei B r a h T o f u ! o e Y r e k n H State Purchasing Forum 2004 86