deo procurement training. training agenda authority, statute, rules, policy and procedures method of...
TRANSCRIPT
DEO Procurement Training
Training Agenda
Authority, Statute, Rules, Policy and ProceduresMethod of ProcurementsPurchase Orders, Change Orders and Cancellation RequestsSettlement AgreementsInternal and External ApprovalsDay to Day PurchasingQuestions and Answers
Authority
Authority– Chapter 287, Part 1 Florida Statutes – Chapter 60A-1, Florida Administrative Code
Other Related ReferencesDEO Purchasing Policy 4.02DEO Purchasing and Contracting Procedures Manual
DMS State Purchasing MemorandumsDepartment of Financial Services
• Reference Guide for State Expenditures• Comptroller Memorandums• Agency Addressed Memorandums
Federal Regulations
Standards of Conduct
Centralized Purchasing Office– Legality and Ethics– Effective Service– Efficiency– Economy– Fairness– Open and Free Competition– Diversity
Specific Purchase
Per Florida Attorney General Opinion #78-101, an agency must have expressed or implied statutory authority to make a specific purchase
– Promotional items– Client incentives– Gift cards
http://www.myfloridalegal.com/ago.nsf/Opinions/458FC3959F27499E852565930069670F
Nonconforming Request
The Purchasing Office retains the final authority to:– Return/deny any Purchase Requisition that does not
adhere to:• Department Policy• Violates State and Federal Law• Not in compliance with Florida Administrative Code • Lacks Justification• Conflict of Interest or Noncompetitive Practices• Inappropriate Comments or Attachments
Purchasing
Exempt Purchases from Competitive Procurement - Section 287.057(f), F.S.
1. Artistic Services2. Academic program reviews <$50,0003. Lectures by individuals4. Auditing Services5. Legal Services6. Health Services involving examination, diagnosis, treatment, prevention, medical consultation or
administration7. Services provided to persons with mental or physical disabilities (non-profit corporations)8. Medicaid Services9. Family Placement Services10. Prevention services related to health services (operated by non-profit corporations)11. Training and education services provided to injured employees12. Contracts entered into pursuant to 337.11 (DOT)13. Services or commodities provided by other governmental agencies
State Term Contracts
Negotiated and managed by DMS Division of State Purchasing.
More than 60 contracts currently, totaling more than $2 billion in state savings annually.
Mandatory usage for state agencies and optional for OEUs.
Meets the competitive solicitation requirement of Section 287.057, F.S.
Per Rule 60A-1.043, all STC with multiple vendors providing the same product must have two quotes unless the contract expressly has other RFQ requirements.
http://dms.myflorida.com/contracts
State Term Contracts
Per Rule 60A-1.043, all STC with multiple vendors providing the same product must have two quotes unless the contract expressly has other RFQ requirements.
STC Exceptions
FAC Rule 60A 1.044 State Term Contracts(2) State Agency Standard Configuration and Options: If an agency determines that a standard configuration product will not meet the agency’s needs and that it is therefore necessary for the agency to purchase specific product options or additions to the standard configuration product, the agency shall, in writing, specify why the standard configuration product(s) cannot meet the agency’s needs due to:
-unavailability of the product within agency schedule or delivery requirements-need for compatibility with existing equipment or systems; or-failure to meet agency-required specifications, quality levels or technical
requirements(3) The written determination shall also include the price impact, both as a dollar amount and as a percentage of the price of the state contract or standard configuration item(s), that result because of the exception or deviation
Purchasing
Commodity– Supplies, materials, goods, merchandise, printing, food, and
equipment, tangible property, leased property– Freight or Inside Delivery charges should be coded with the
same Commodity Code as the product(s) being purchased, do not use 991-841
Contractual Services– Commodity Code 9xxxxx series– Combination Parts and Labor– Labor only (time and effort)– Provider Services
Purchasing
Section 287.058 (4), F.S. Contractual Services – every procurement of contractual services in excess of the Category Two ($35,000) threshold shall be evidenced by a written agreement or purchase order.
$0-$35,000 Purchase Order>$35,000 Contract Agreement
Agencies are allowed to use the purchasing card for contractual services direct billings that do not exceed $75,000 in a State fiscal year.
Purchasing
Section 287.057(18), F.S. Contractual Services >$65,000, – Each agency shall establish a review and approval process
for all contractual services contracts costing more than the threshold amount provided for in s. 287.017 for CATEGORY THREE which shall include, but not be limited to, program, financial, and legal review and approval. Such reviews and approvals shall be obtained before the contract is executed.
Purchasing
Commodities and Contractual Services State agencies may purchase only items necessary to carry out statutory duties and should select items on an economically prudent and cost effective basis not to satisfy the personal convenience or personal preference of individuals.
Emergency Procurements
Immediate danger to the public health, safety, or welfare or other substantial lost to the State Executive Order >$35,000 requires Certification by the DirectorIt is not, I forgot to do my job and my boss already bought it or I need a purchase order to pay the invoice.
Procurement Cycle
1) Determine the Need2) Specification or Product Description3) Determine the Method of Procurement 4) Quotes or Formal Soliciation5) Issuance of a Purchase Order6) Receipt of Goods or Services7) Invoice and Payment
Purchasing System Controls
Purchase Order – Standard instrument for purchasing the majority of
goods/services involving the submittal of a Purchase Requisition in MFMP
Contract – two party written agreement
PCard is a payment mechanism NOT a procurement method
Settlement Agreement
Goods and/or Services Without Proper AuthorityClaims and Demands Against the StateIndicates the Agency is not abiding by the rules and Laws of FloridaAdmission We Made a MistakeReported to the Governor’s Office MonthlyContact Finance and Accounting
Procurement Thresholds
Section 287.017, F.S. - Purchasing Threshold Categories
Category One - $ 20,000 (requires three written quotes)
Category Two - $ 35,000 (bid threshold)Category Three - $ 65,000 (legal and financial review)Category Four - $195,000 (DMS approval)Category Five - $325,000
Internal and External ApprovalsInternal– Management Review– IRA (IT)– OCO (Budget)– Travel C676C– Notary Justification (Supervisor)– General Counsel Review– Facility Services Work Order– Telecommunications – New Perquisite (Personnel)– Membership Due (COO)– Employee Moving Expenses
(EMT/SMS/Personnel)
External– Vehicles (DMS)– Advance Payment (DFS)– GSA DMS Terms and Conditions
(Vendor)– CSA (DMS)– Single Source >$195,000 (DMS)– Notary Commission (DMS)
Bid or Not to Bid ?
FAC Rule 60A 1.002 (4) In accordance with Chapter 287, F.S., all purchases for which the total contract value is in excess of the threshold amount for Category Two ($35,000) for a
particular commodity group of commodities or contractual service
shall be made by first securing formal competitive solicitations, unless an exemption applies.
(5) Acquisitions shall be reviewed and considered on an agency-wide basis. The Purchasing Office shall not divide its purchases or its purchasing operations to circumvent the process.
Procurement Methods
Section 287.057, F.S. - Methods of Procurement (1)(a)Competitive Solicitations >$35,000
• Invitation to Bid • Request for Proposal• Invitation to Negotiation
(5)Exceptional Purchases• Emergency Purchases - FAC 60A-1.046• Agency Term Contract – FAC 60A-1.001(b)• Alternative Contract Source – FAC 60A-1.047• Single Source Purchases - FAC 60A-1.045• State Purchasing Agreements (SPA) -FAC 60A-1.025
<$35,000
FAC Rule 60A 1.002 (2) and (3)Methods of Procurement (continued)
(2) Purchases <$2,500 one quote (CMBE)(3) Informal Quotes
$2,500 - $20,000 two quotes $20,001 - $35,000 three written
quotes
Single (Sole) Source
For single source purchases exceeding Category Two, follow a separate process:
– Advertised on Vendor Bid System (VBS)• PUR 7776• Seven business days
– If the purchase exceeds Category Four ($195,000), DMS approval is required
• PUR 7777– Post Intent to Award on VBS
• PUR 7778• 72 business hours (excluding weekends and holidays)
Purchasing
Order of Priority in Selecting a VendorRespect - 413.036 F.S.Pride - 946.515 F.S. State Term Contract - DMSAgency Term Contract - DEOAlternate Contract Source – WSCA/GSASPA Agreements Competitive SolicitationInformal Quotes
Day to Day Purchasing
Respect – – Calendars– Writing Instruments, e.g., Pens, Pencils, Markers, Highlighters– First Aid Kits and Refills– Clocks– Medical Gloves– White Marker Boards and accessories– Floor Chair Mats– Depends– Drug Test Kits– Staplers, staples and two hole punch– Plaques, document holders– Flags (United State of America and State of Florida, only)– Janitorial and Lawn Care Services
Day to Day Purchasing
PRIDE– Business Cards– Furniture– Binders– Uniforms– Janitorial products other than name brand– Envelopes quantity less than 5,000
Red Tape
Delays in PR Workflow Process– Incorrect Method of Procurement Code Selected– Incorrect Commodity Code– STC Number, field is not populated– Required number of quotes, not obtained or attached– IRA approval, not attached– OCO approval, not attached– Conference/Training Registration, Agenda and C676C, not attached– No Written Justification– Incorrect Attachments or Format Type– Forgetting to Delegation MFMP Authority in Ariba when on Annual/Sick
Leave
Common Mistakes
Leaving payment terms out of the procurementA statement of work that is unclear or not definedNot following purchasing laws and rulesPreventing the perception of partiality to the vendor communityNot focusing on getting the best price for the right product/service at the right timeSigning agreements without consulting your purchasing office firstPCard purchases exceeding Category TwoAfter-the-fact purchases
Day to Day Purchasing
Conference Registrations– Is exempt from MFMP if the Vendor accepts PCard, attach
the invoice for payment to the C676C and Voucher for Reimbursement of Travel Expenses forms.
– If the Vendor does not accept PCard and the Vendor is registered in MFMP, a purchase requisition is required along with the C676C attachment.
– If the Vendor is not registered in MFMP, contact the Purchasing Office
Training Registration – Requires a MFMP purchase order
Day to Day PurchasingEmployee Moving Expenses– Requires three (3) written quotes– Must be paid by Warrant– Request for Authority to Pay Moving Expenses Form
• Signature Authority – Division Director• Written Justification required • Description Field include the Location “From – To”
Day to Day Purchasing
OCO Purchases– Requires OCO Budget Committee Approval– Unit price of a $1,000 or more– Object Code 5xxxxx series– Replacement requires like funds– Contact the Budget Office
Day to Day PurchasingIT Equipment– Commodity codes starting with 250xxx use Object Codes
• <$1,000 use 3810xx or 3818xx series• >/=$1,000 use 5xxxxx series
– $2,500 or greater requires three (3) written quotes– Requires Information Resource Request (IRR) Approval – May require OCO approval
IT Software– Microsoft STC or GSA Schedule 70– $2,500 or greater requires three (3) written quotes up to $150,000– $25,000 or greater requires the PUR 7102, Alternate Contract Source approved
by DMS– Greater than $150,000 requires formal solicitation
Day to Day Purchasing
Business Cards– DEO Order Form
• Employees (one color)• Executive Management (color)• Include the cost of freight, $4.50 per delivery location
Notary Public– Notary Commission Justification Memorandum– Commodity Code 477540– Application attachment is not required. However, if you scan
the application all confidential information must be redact.
Day to Day Purchasing
Furniture– PRIDE– State Term Contract– Office Depot
• Hon Authorized Dealer on State Term Contract• Orlando Office only
Day to Day Purchasing
Copiers• Available Lease Periods (3, 4 or 5 years)• No lease renewals provides negotiation• Upon expiration equipment will be picked up within 10 days• Less than $2,500 can go off state term contract• Description: Lease Term, Serial Number, Brand Name, Model
Number, Class and Type
Day to Day Purchasing
Membership Dues: Section 216.345, F.S.– Forms Library
• Membership Request Form (requires COO signature approval)
• Certification of Availability of Records for Public Inspection
Day to Day Purchasing
Advanced Payment: Section 215.422(14), F.S.– Maintenance Agreements, Software License and
SubscriptionsMust results in a cost savings; essential to the operation of the agency; available only if paid in advance>$35,000 Requires DFS, Bureau of Auditing prior approval
– Other Goods and Services • >$1,800 Requires DFS, Bureau of Auditing prior approval
Day to Day Purchasing
Employee Recognition & Awards: Section 110.1245, F.S.Volunteer Recognition & Awards: Section 110.504, F.S.
Day to Day Purchasing
Prohibited Expenditures – Per Rule 3A-40.103 F.A.C. – Congratulatory or condolences telegrams– Greeting Cards - Chapter 286.27 Use of state funds for greeting cards prohibited.
No state funds shall be expended for the purchase, preparation, printing, or mailing of any card the sole purpose of which is to convey holiday greetings
– Plants, flowers, pictures, plaques, statues, globes, and other decorative items– Entertainment for visiting dignitaries– Refreshments such as coffee and doughnuts– Decorative Items– More expensive office supplies, furniture, lamps, etc…– Items not purchased in accordance with statute and rules– Items purchased by unauthorized individuals
Day to Day Purchasing
Blanket Purchase Orders– Need Unknown– Cost Unknown– No Single Purchase Can Exceed $2,499 Without a Second Quote– DO Start and End Date Coincides with the State Fiscal Year– Functions Similar to an Open Account– Authorized Buyers– Justification – Examples: Janitorial Supplies, Hardware, Paper Products, Tires,
Keys & Key Blanks, Sun/ePass, Electrical/Plumbing/HVAC Services– Non STC Services Attach Vendor Rate Sheet or Rate Per Hour– Non STC at Retail Pricing
Blanket PO - Commodities
Example:Blanket Purchase Order for tires available on state term contract. Rate: per state contract #863-000-06-1. All invoices to include vehicle Tag number and VIN number. Term: 7/1/07 - 6/30/08. Authorized Buyer: Jane Doe, Bob Smith, Joe Brown. (Previous DO292416)
Blanket PO - Services
Example:Blanket Purchase Order for transcription services on an “as needed basis” for the UC Appeals Hearings. TERM: 7/1/12-6/30/09 RATE: Per attached rate sheets. NO SINGLE PURCHASE TO EXCEED $2,499.99 WITHOUT OBTAINING A SECOND QUOTE(S). AUTHORIZED BUYERS: Jane Doe, Bob Smith and Joe Brown. Payable upon receipt of a complete invoice.
Day to Day Purchasing
Term Purchase Order– Specified Items or Services– Specified Rate– Specified Term– Justification– Examples: Janitorial Services, Pest Control, Copiers, Postage Machine
Rental, Cellular & Blackberry Service, Lawn Service
Term PO - Services
Example:Term purchase order maintenance agreement for Department owned copier. Minolta Delta Color CF 1501 SN-305165. Rate: $136.00 monthly to include 3,000 copies per month. To be paid quarterly in arrears upon receipt of itemized invoice. Term: 7/1/12- 6/30/13. Authorized Buyers: Jane Doe, Bob Smith. Toner Cartridges, drums and staples included in maintenance agreement. (Previous DO 289781)
Term PO – Pest Control
Example:Term purchase order for monthly pest control services for Caldwell Building. TERM: 7/1/12 - 6/30/13 RATE: per State Term Contract rate of $1.31 per 1000 sq.ft./month. Facility Sq. Ft. 16,000 sq. ft./1,000 sq. ft. x $1.31 = $20.96 per month. Authorized Buyers: Jane Doe, Bob Smith. Payable in arrears upon receipt of a complete invoice. (Previous DO 290364)
ConfidentialityBefore uploading attachments to MyFloridaMarketPlace, you must redact all confidential information, including but not limited to all social security numbers, all health information protected by HIPAA, and addresses for law enforcement officers, judges, and other protected classes. If confidential information is not properly redacted, you may be in violation of state and/or federal laws. For information about what constitutes confidential information, under applicable state and federal law, consult your Agency General Counsel. By checking this box, I confirm that I have not disclosed any confidential/protected information in the attachments or comments for this transaction in violation of Chapter 119, Florida Statutes; HIPAA; or any other state and/or federal laws. I confirm that I will not disclose any confidential/protected information to any unauthorized individual/entity. I also understand that violation of this policy may result in disciplinary action including potential termination.
Purchase Order Change Order Request
Written Justification RequiredIncrease or Decrease MoneyIncrease or Decrease QuantitiesChange in Price/Rate/Freight ChargeAccounting InformationChange “On Behalf Of”Term End Date
Purchase Order Cancellation Request
Cancellation Request– Open Order is a Financial Liability to the Agency– No funds have been expended– Company eform
• Cancel Requisition• Title Field Should Duplicate the Purchase Order Title• Written Justification, required
– “CANCEL” button is PROHIBITED
Receipt and Inspection of Goods
Inspect order immediately – check for damage; compare description, quantity and price to the
Purchase Order.
DFS allows only five day from receipt of commodities or services for inspection and acceptance.Payments for merchandise received shall be made only on the basis of the agreement as to quantity, price, condition and description.Invoices that do not match the Purchase Order should be disputed immediately and should not be paid.
Receipt and Inspection of Goods
Receipt Items in MyFloridaMarketPlace
End of the Year Activities
Current Fiscal Year Close Out
May 15th – Cut OffIssuanceOrder/ReceiptInvoice and Payment
Preparing for Next Fiscal Year
May 15st – Cut OffCompliance ReviewCompetitive SolicitationIssuance
Purchasing Office
Questions and Answers