florida purchasing 101 training october 21, 2010 · course objective today’s class: is intended...
TRANSCRIPT
Florida Purchasing 101 Training
October 21, 2010
Course Objective
Today’s class:
Is intended for state entities and local governments purchasing under Section 287.057, Florida Statutes (F.S.).
Recognizes that fair and open competition is the basic tenet of public procurement.
Integrates the state’s procedures for best practices in the procurement of commodities and services.
Applies state laws, rules, and suggested practices to everyday purchases.
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Course Objective
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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
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Course Objective
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• Submit request to purchasing office
Customer has a need
• Informal quotes obtained
• Solicitation completed
Purchasing ensures laws and rules are followed • Issue PO
• Execute formal contract
Award contract to vendor
• Review/Inspect goods or services for receipt
• Invoice is submitted for payment
• Payment is completed
Receive and pay for goods or
services
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Purchasing Overview
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Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Agenda
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Authority for the purchase of goods and services is:
Delegated to each agency from the Department of Management
Services (DMS)
Chapter 287, Florida Statutes (F.S.)
Rule 60A, Florida Administrative Code (F.A.C.)
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Purchasing Authority
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Defined in Section 287.017, F.S., as of July 1, 2010, as:
Category One - $20,000
Category Two - $35,000
Category Three - $65,000
Category Four - $195,000
Category Five - $325,000
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Purchasing Thresholds
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The state is committed to providing equity in contracting to diverse vendors throughout Florida.
Office of Supplier Diversity (OSD) certifies vendors as certified business enterprises.
Certification as a minority-, women-owned or service-disabled veteran business enterprise gives a vendor preference in the situation of a tied bid.
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Certified Business Enterprise (CBE)
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Unless otherwise authorized by law, per Section 287.057 F.S.:
All purchases should have a review process including program and
financial review.
Purchases exceeding Category Two must be competitively solicited and
awarded by competitive sealed bidding.
In Rule 60A-1.002 F.A.C., purchases less than Category Two but above
$2500 must obtain at least two quotes.
Service purchases more than $65,000 shall have legal approval.
Purchases less than $2500 must be completed using sound purchasing
practices.
The best value to the state should always be considered.
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Purchasing Best Practices
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Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Agenda
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PRIDE
RESPECT of Florida
State term contracts (STC)
State purchasing agreements (SPA)
Competitive solicitations
Alternate contract sources (ACS)
Single source
Statutory exemptions
Informal quotes
Emergency purchase
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Methods of Procurement
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Prison Rehabilitative Industries and Diversified Enterprise
Per Sections 9.46515 (2) and (4), F.S., similar products or
services of comparable price or quality found necessary for use by any state agency may not be purchased from any source other than PRIDE.
Per Chapter 283, F.S., competition is not required with the exception of printing services.
PRIDE offers a variety of products from furniture to maintenance supplies.
http://www.pride-enterprises.org/
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PRIDE
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Per Section 413.036, F.S., similar commodities or services of
comparable price or quality found necessary for use by any state agency may not be purchased from any source other than RESPECT.
RESPECT works with non-profit organizations around the state who employ persons with disabilities in the production of products and services.
RESPECT is exempt from the competitive process (no quotes or solicitations necessary).
Examples of items provided under 914-000-05-R:
Office supplies
Janitorial services
Marker boards
Temporary services in the Tampa / St. Petersburg area
www.respectofflorida.org
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RESPECT of Florida
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State Term Contracts (STC)
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
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Types of STC
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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.
State Term Contract (STC) Quotes
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Alternate Contract Sources (ACS)
ACS are similar to STC, but are not mandatory.
If an agency’s ACS is cost-effective and in the best interest of the state
(and allowed by the scope of the contract), DMS approves the use of
the contract for all entities.
May approve the contract for a single transaction or multiple
transactions
A complete listing of all ACS is available at
http://dms.myflorida.com/contracts .
Agency-specific ACS are not posted online.
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Negotiated per agency request and managed by DMS State Purchasing.
Usage cannot exceed an annual combined total of $35,000.
Not to be used to circumvent competitive processes.
http://dms.myflorida.com/contracts
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State Purchasing Agreements (SPA)
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Competitive Solicitations
Invitation to Bid (ITB)
Driven by low cost
Request for Proposal (RFP)
Used when there is a good understanding of the goods/services
requested but is not solely driven by low cost.
Invitation to Negotiate (ITN)
Used when there isn’t a clear understanding of exactly how a
problem should be solved and are inviting vendors to submit
solutions.
The only solicitation method that allows for negotiation with
vendors
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Per Section 287.057(5)(c), F.S., and Rule 60A-1.045, F.A C., a
single source is defined as a purchase of commodities or services
available only from one vendor.
For purchases less than Category Two, approval of the justification
must provided to the individual agency’s purchasing office.
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Single Source
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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, DMS approval is
required
PUR 7777
Post Intent to Award on VBS
PUR 7778
72 business hours (excluding weekends and holidays)
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Single Source Procedures Single Source Procedures
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Informal Quotes
Purchases more than $2,500 and under Category Two require at least two
quotes
Quotes:
Can be obtained by phone, in writing, e-mail or the MFMP eQuote tool
Should be stored for audit purposes with the purchase documents
Are awarded to the vendor with the best value for the state
i.e. the best cost for the goods/services that meet the needs of the state
Request for Quote (RFQ):
Used for STC such as consulting services
IT Consulting
Management Consulting
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Emergency Purchases
Determination
Emergency exceeding Category Two
An emergency purchase must pose immediate danger or risk to
public health or safety
Certification
For emergency purchases, a notarized certification must be
provided to DMS from an agency head or designee within 30 days
Procedure
PUR 7800 Notice of Emergency Purchase to DMS
Governor declares “State of Emergency,” typically suspends all
procurement rules directly related to emergency efforts
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Statutory Exemptions
Section 287.057 (5)(f), F.S., includes services exempt from competition
including, but not limited to:
Artistic services
Lectures by individuals (not training services)
Legal services
Government entity
Mental health / drug abuse prevention programs
Family placement services
Contracts pursuant to Section 337.11
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Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Agenda
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Purchasing requirements as defined by Statute, Rule and Memorandum
include the following:
Vehicle purchases
Recycled content
Public printing
Advance payment
Blanket purchase order (BPO)
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Purchasing Requirements
Per Chapter 287, F.S.:
DMS Form MP 6301
Statewide Fleet Approver
Justification
Acknowledgment of order from the dealer
Budget authority
Approximately 75 percent of all new vehicles must be
alternative fuel vehicles
Not including hybrids
Leasing- more than 30 days
Rental Vehicle STC
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Vehicle Purchase Requirements
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Per Section 287.045, F.S.:
Paper must contain 65 percent recycled content.
Office paper STC line item catalog in MFMP.
MFMP displays a recycled indicator on all recycled products in line item
catalogs.
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Recycled Content Requirements
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Per Section 283.33, F.S.:
Recycled paper
Purchases exceeding Category Two must be competitively
solicited (including PRIDE).
Pre-production proofs are required.
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Public Printing
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Per Section 215.422 (14), F.S.:
Justification is required.
DFS Bureau of Accounting & Auditing requires approval for
advanced payment purchases exceeding Category Two.
MFMP allows you to indicate a purchase marked for advanced purchase
and to select an agency user to be notified.
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Advance Payment Requirements
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In accordance with Memorandum No. 3 (2008-09):
Blanket Purchase Orders (BPO) are purchase orders issued to one vendor in which multiple purchases can be made for a specific period of time.
BPOs for purchases made from purchasing agreements or STC must include a scope of work and a quantifiable, measurable and verifiable unit of deliverables.
When setting up a BPO, be mindful of how you will subsequently receive and pay from this order.
BPO should not exceed Category Two without being competitively solicited.
For large BPO completed in MFMP, set up a contract or master agreement.
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Blanket Purchase Orders (BPO)
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BPOs must also identify:
All necessary organizational and accounting codes
Vendor name
Items or types of items authorized for purchase
Item prices or a reference to how prices will be established at the
time of purchase
Authorized user(s), by name and/or title
Contract term
Maximum total dollar amount of purchases authorized during the
term
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BPO Requirements con’t
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Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Agenda
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Restrictions from Expenditures
Congratulatory / condolence cards
Plants, flowers, pictures
Entertainment
Refreshments
Convenience appliances
When purchasing for the convenience of employees
Includes heaters, refrigerators, microwaves
Items not in accordance with state, federal or local laws
http://www.myfloridacfo.com/aadir/reference_guide/
10/21/2010
Commodity codes are 13-digit codes
The class and group are the first six digits
Commodity codes for services begin with a “9”
Commodity Codes in VBS determine what vendors receive e-
mail notifications.
SPURSView:
http://www.myflorida.com/aaps/spurs/spurs.main_menu_form
Commodity Code search:
http://dms.myflorida.com/content/search?SearchText=commodity+
codes
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Commodity Codes
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Leaving payment terms out of the procurement
A statement of work that is unclear or not defined
Not following purchasing laws and rules
Preventing the perception of partiality to the vendor community
Not focusing on getting the best price for the right product/service at the
right time
Signing agreements without consulting your purchasing office first
PCard purchases exceeding Category Two
After-the-fact purchases
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Common Mistakes
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Resources
DMS Division of State Purchasing
http://dms.MyFlorida.com/contracts
(850) 488-8440
MyFloridaMarketPlace (MFMP)
www.dms.MyFlorida.com/mfmp
www.dms.MyFlorida.com/buyertoolkit
Office of Supplier Diversity (OSD)
http://dms.MyFlorida.com/osd
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Resources
State expenditure reference guide
http://www.myfloridacfo.com/aadir/reference_guide/
DMS STC
http://dms.MyFlorida.com/contracts
MFMP Punchout catalogs
https://dms.MyFlorida.com/mfmp_punchout_catalogs
CFO Memorandum NO. 06 (09-10) – Contract Document Requirements
http://www.myfloridacfo.com/aadir/cm0/cmmaster0910.htm
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Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Agenda
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Page - 39
Contact Us
Team Member E-mail Phone Number
Communications
Analyst
[email protected] (850) 294-3080
F&A Process
Analyst
[email protected] (850) 294-0739
Vendor
Management
Analyst
[email protected] (850) 445-3894
DMS Division of State Purchasing
http://dms.MyFlorida.com/contracts
(850) 488-8440
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Questions?
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Wrap-Up
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