Florida Purchasing 101 Training October 21, 2010
Course Objective
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
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/458FC3959F27499 E852565930069670F
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Purchasing Overview
• Submit request to purchasing office
Purchasing ensures laws and rules are followed • Informal quotes obtained • Solicitation completed
• Issue PO • Execute formal contract
Customer has a need
Receive and pay for goods or services • Review/Inspect goods or services for receipt • Invoice is submitted for payment • Payment is completed
Award contract to vendor
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Agenda
Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Purchasing Authority 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 Thresholds 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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Certified Business Enterprise (CBE)
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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Purchasing Best Practices 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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Agenda
Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Methods of Procurement
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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PRIDE 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/ 10/21/2010
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RESPECT of Florida
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 10/21/2010
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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 10/21/2010
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State Term Contract (STC) Quotes
Types of STC
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.
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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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State Purchasing Agreements (SPA)
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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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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Single Source
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 Procedures
Single Source Procedures
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) 10/21/2010
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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 10/21/2010
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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
Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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Purchasing Requirements
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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Vehicle Purchase 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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Recycled Content Requirements
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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Public Printing
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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Advance Payment Requirements
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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Blanket Purchase Orders (BPO)
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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BPO Requirements con’t
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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Agenda
Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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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/
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Commodity Codes
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 email notifications.
SPURSView: http://www.myflorida.com/aaps/spurs/spurs.main_menu_form
Commodity Code search: http://dms.myflorida.com/content/search?SearchText=commodity+ codes 10/21/2010
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Common Mistakes
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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Resources
DMS Division of State Purchasing http://dms.MyFlorida.com/contracts
[email protected] (850) 488-8440
MyFloridaMarketPlace (MFMP) www.dms.MyFlorida.com/mfmp www.dms.MyFlorida.com/buyertoolkit
[email protected]
Office of Supplier Diversity (OSD) http://dms.MyFlorida.com/osd
[email protected] 10/21/2010
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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
Agenda
Basic Principles
Methods of Procurement
Purchasing Requirements
Odds and Ends
Wrap-Up / Contact Us
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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
[email protected] http://dms.MyFlorida.com/contracts
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(850) 488-8440
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Wrap-Up
Questions?
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