new procurement rules training
DESCRIPTION
New Procurement Rules Training. Purchases Greater Than $25,000. Why do we have new procurement rules?. Law that renewed mayoral control of the schools gave the Panel for Educational Policy (Panel) the authority to approve (among other things) most of the DOE’s contracts - PowerPoint PPT PresentationTRANSCRIPT
New Procurement Rules Training
Purchases Greater Than $25,000
3/30/2010 2
Why do we have new procurement rules?
Law that renewed mayoral control of the schools gave the Panel for Educational Policy (Panel) the authority to approve (among other things) most of the DOE’s contracts a new procurement policy that met
specific requirements stated in the Law
3/30/2010 3
Many processes are the same, but some things are new
New procurement processes Emergency purchases Demonstration projects Innovative procurement methods
No more sole source for services Must use Negotiated Services (fka Exception
to Bid or Committee on Contracts) when there is only one source for services
3/30/2010 4
What’s new (cont’d) Request for Authorization - New
Requirements Now required for all procurements
except Simplified Procurement All other procurements $25,000 or less
($15,000 if competitive sealed bidding) Educational Investment Case
Required for technology, software, consulting or technical services contracts >$1 million
3/30/2010 5
What’s new (cont’d) Educational Investment Case (cont’d)
Describes the need for the project, how it fits within educational objectives
Key risks/dependencies Cost benefit analysis Client must provide information needed to
complete See Section 2-07 (c) for details
Contract changes Dispute resolution process
3/30/2010 6
What’s new (cont’d)
Performance evaluations for contracts – in development now, will provide training when procedures are completed
Contract Manager required for each contract and purchase order Approves/monitors payments Performs quality assurance, inspection and
testing
3/30/2010 7
New procurement processes (cont’d)
Contract Manager (cont’d) Monitors/enforces contractor compliance with
DOE security requirements, including fingerprinting
Monitors and evaluates contractor performance
Assesses need for changes, extensions and renewals
Participates in dispute resolution activities Maintains file containing records,
correspondence and determinations pertaining to contract administration
3/30/2010 8
Overview of Most Common Procurement Processes
Request for Proposals (RFP) Process Used to procure services or a combination
of services and goods when evaluation of proposals is based on a number of factors including experience, staffing, suitability for needs and quality of vendor, in addition to price
RFP states what we want to procure in either general or specific terms, depending on the need
Client must prepare specifications
3/30/2010 9
Overview of Most Common Procurement Processes (cont’d)
Request for Proposals (RFP) Process (cont’d) Selection criteria must be established
in the RFP Solicitation must be advertised in City
Record/DOE website if >$25K A committee of at least three people,
none of whom can report to another committee member, reviews the proposals and scores them using rating sheets.
3/30/2010 10
Overview of Most Common Procurement Processes (cont’d)
Request for Proposals (RFP) Process (cont’d) Proposers may be given feedback on
their proposals, and as a result, may make changes to their proposals
Proposers may be asked to submit best and final offers (BAFO)
Process takes about five to twelve months or more depending on complexity
3/30/2010 11
Overview of Most Common Procurement Processes (cont’d)
Multiple Task Award Contract (MTAC) Process (fka Prequalified Solicitation) Used to procure services when there is high
demand for a type of service (such as prof’l dev in a specific field) and when we want to offer a choice among multiple providers of the service
Contracts are awarded to every provider who meets the requirements of the solicitation
3/30/2010 12
Overview of Most Common Procurement Processes (cont’d)
Multiple Task Award Contract (MTAC) Process (cont’d) Client must prepare specifications Selection process is the same as the
RFP process Process takes five to twelve months
depending on complexity DCP has a training session on
ordering from MTACs
3/30/2010 13
Overview of Most Common Procurement Processes (cont’d)
Negotiated Services Used when other processes are not
practical or possible including need to extend a contract beyond the 12-
month limit in the Contract Extension section
only one vendor can meet the DOE’s requirements
time constraints are such that only one vendor can provide the services
3/30/2010 14
Overview of Most Common Procurement Processes (cont’d)
Negotiated Services (Cont’d) a vendor’s services are discounted because
another source of funding is covering a portion of the cost
Must document determination that it is not practical/possible to use a competitive process
Must publish notice of intent to award a contract in City Record/on DOE’s website, and evaluate responses, if any
3/30/2010 15
Overview of Most Common Procurement Processes (cont’d)
Negotiated Services (Cont’d) Chancellor’s Committee on Contracts
(COC) approval is required for contracts > $100K
Client must provide specifications Process takes six to twelve months
(less time if < $100K)
3/30/2010 16
Overview of Most Common Procurement Processes (cont’d)
Simplified Procurement Used for goods $15K or less and
services $100K or less 3 bids are required to be solicited Advertisement of solicitation is not
required No bids are required for services $5K
or less
3/30/2010 17
Overview of Most Common Procurement Processes (cont’d)
Simplified Procurement (cont’d) Office heads can approve up to $25K; DCP handles process >$25K
When DCP handles, client must prepare specifications
Process takes three or more months
3/30/2010 18
Overview of Most Common Procurement Processes (cont’d)
Contract Extension Can extend most contracts for up to
one year Exceptions: contracts awarded through a
bid before 9/15/08; emergency procurements; simplified procurements beyond the $ thresholds; and grant-funded contracts whose extensions will be funded through tax levy funds
Must use all renewals or extensions provided for in contract first
3/30/2010 19
Overview of Most Common Procurement Processes (cont’d)
Contract Extension (Cont’d) COC approval is required for
extensions >$100K and when COC approved original contract
Panel approval is NOT required Process takes two to three months or
less depending on amount
3/30/2010 20
Overview of Most Common Procurement Processes (cont’d)
Contract Changes Changes are permitted only for work necessary
to complete the work in the original scope of contract and for non-material changes in scope
Can change the price and/or term of contract Office heads can approve changes up to $25K
Exception: when there is a change in unit or task price and the original contract is > $100K, DCP approval is required
3/30/2010 21
Overview of Most Common Procurement Processes (cont’d)
Contract Changes (cont’d) COC approval is required for changes
>$100K and when the COC approved the original contract and when there is an extension of the term
Panel approval is required when the change increases the contract cost by $25K or 10% of the original amount, whichever is greater
Process takes three to four months or more, depending on amount and complexity
3/30/2010 22
Overview of Most Common Procurement Processes (cont’d)
Purchases Through Governmental Contracts Used to purchase goods/services from State,
City or federal contracts when the price is lower than the prevailing market price
Panel approval is not required Some State contracts require a “mini bid”
among contracted vendors Process takes one to two months if no mini-bid,
three to ten months or more if mini-bid is required
3/30/2010 23
Overview of Most Common Procurement Processes (cont’d) Section 1-03(b) and (c) Exceptions
1-03(b) provides for exceptions to procurement processes
for grants that specify a vendor to perform the work where court order, consent decree or law requires
contracting with a specific source 1-03(c) is used for City Council or Borough
President budget line item pass through contracts
Process takes three to four months Good idea to have providers respond to
appropriate MTAC solicitation and get contract through that process – eliminates this process
3/30/2010 24
DCP Contacts Susan Dick-McKeon, Chief, School Based
Procurement – 718-935-2027 Peter Frey, Chief, Funded & Special Services
Procurement – 718-935-4298 Jason Henry, Innovation & Vendor Resources –
718-935-2058 Jim McBride, Chief, Central Office Procurement
– 718-935-5238 Jay Miller, Vendor Research & Price Analysis –
718-935-4394 Olga Nieves, Chief, Transportation, Food &
Facilities – 718-935-2026