PURCHASING 101

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PURCHASING 101

• Welcome Introductions

• Course Overview

• General Information

• Session Time One Hour
• Hush Sounds
• Ask Questions
• LISTEN, LEARN AND ENJOY!

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Purchasing 101

• Todays Presenters
• Larry Klein OGS
• Bruce Hallenbeck - OGS
• Eileen A. Germain - ESD
• Francis Genovesi - ESD
• Mary McDonnell - Labor
• Erin Barkman - OSC
• Bill Hughes - OSC

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Resources

• 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

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The Procurement Process
-Larry Klein

• Determining Your Need
• Discretionary Purchasing Levels
• IFB or RFP

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The Agency Purchasing Flowchart

• Choices and decisions at each step
• Remember the Procurement Record

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

• Form, function, and utility determination
• Availability from preferred source
  offerings/Purchase from preferred source
• Check list of OGS centralized contracts/Purchase
  from OGS contract
• Not available as needed from either?

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Purchases Up to 15,000Dollar value 5,000,
10,000, 15,000 Discretionary Purchase

• If under 15,000
• Discretionary purchase
• then
• Justification of price and vendor selection

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Purchases Between 15,000 to 50,000Discretionary
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

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Over 15,000 to 50,000 (continued)
Obtain Quote
Under 30,000

• Seek OGS procurement technical services
  assistance- OGS can issue purchase instructions
• Complete procurement using formal competition,
  IFB, Requires notice in NYS Contract Reporter

Over 30,000
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If over 50,000

• Single/sole source justification
• Piggybacking
• Formal competition, and advertisement in the NYS
  Contract Reporter required

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Choosing a method of bidding
Formal Competition
IFB or RFP?

• 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
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IFB Essentials

• Responsive and responsible offerers
• Contract Reporter insertion
• Fully defined method of award
• Be prepared for tie bids and other glitches

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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

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Whether IFB or RFP

• Level Playing Field

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NYS Contract Reporter

• OGS Purchasing Forum
• June 16-17, 2004
• Eileen A. Germain

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What is the Contract Reporter?

• 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.

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Who uses the Contract Reporter?

• Subscribers -
• Businesses both in and outside of NYS identify
  bid opportunities and agencies that are most
  likely to purchase their products or services.
• Agencies
• Advertise for goods and services as required in
  Statute.

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Why are agencies required to advertise in the
Contract Reporter?

• 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.

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What are the guidelines for advertising?

• 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.

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What am I responsible for?

• NYS agencies, public authorities, public benefit
  corp. are required to publish
• bid solicitations of 15,000 or more
• 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
• knowing and following applicable statute
  Article 4-C.

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How do I submit a bid solicitation online?

• Contact your agency administrator to establish a
  user profile for you.
• Go to www.nyscr.org.
• View the tutorials, user guide, FAQs.
• Become familiar with the site and submit a test
  ad (just delete it after successful submission).

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What if I have an exemption?

• Guidelines may be found at Contract Reporter
  website-NYS Finance Laws, Article 4-C.
• OSC Bulletin No. G-107B Procurement Opportunities
  Newsletter
• OSC approves/denies exemption and notifies the
  Contract Reporter.
• Bid info must still appear in the Contract
  Reporter (w/o proposal due date).

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HOW DO I LOG ON?

• Go to www.nyscr.org
• Select your user type (agency).
• Login with
• Username email address
• Password your choice
• A valid email address is required.
• Click on Manage Submissions.
• Click on Record

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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
  90602 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.

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Agency Help

• Click on the Agency Help link and view
• Tutorials
• Frequently Asked Questions
• User Guide

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Subscribers"Manage My Account"

• view ads in selected categories first
• change your password
• receive an email alert
• check status of subscription and
• renew subscription.

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HOW DO I LOCATE MY AD?

• 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.

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Reminder

• Before crunch time become familiar with
• tutorials, user guide and FAQs
• publication schedules
• ad submission process
• Create a word document with description of
  purchase for copy and paste into online
  submission form.

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NYS CONTRACT REPORTER

• Eileen Germain
• Empire State Development
• egermain_at_empire.state.ny.us
• 30 South Pearl Street
• Albany, NY 12245

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HOW TO DO A SEARCH IN THE MWBE DIRECTORY
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Website Address www.empire.state.ny.us
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Department of Labor Bureau of Public
Work Mary McDonnell

• What are Prevailing Wage Rates
• When To Use Prevailing Wage Rates
• Where To Find Them

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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.

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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.

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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)

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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.

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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.

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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)

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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.

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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

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Where to find Prevailing Wage Rate Information 

• The annual determination is available
• on the Department of Labor website
  
• (www.labor.state.ny.us).

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Additional Information 

• A copy of the current or past years Prevailing
  Wage Rates can be obtained on CD by e-mailing
  your request to
• NYSDOL_at_labor.state.ny.us
• Any questions, please contact
• NYS DOL Bureau of Public Work
• SOBC Bldg. 12 Rm. 130
• Albany, NY 12240
• Phone [phone]
• Fax [phone]

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OSC APPROVALS Erin Barkman
Bill Hughes

• Contracting Vehicles
• Quick Contracting
• Tips for Successful Approvals

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TYPES OF CONTRACTING VEHICLES

• Purchase Orders
• Purchase Authorization (PA) Contracts
• Refer to Bulletin G 191
• Contract Agreements
• AC340

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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

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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.

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Questions Answers
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Thank You for Being Here!