1. FY 11 Purchasing Finance Service Center
THE NYC DEPARTMENT OF EDUCATION New Procurement Rules for Purchases $25,000 or Less
FY 11 Purchasing
Finance Service Center
(formerly known as the Client Services Help Desk)
Myra Y. Estepa, Team Lead
Maria Aponte, Supervisor and Webcast Presenter
Stanley Mentor, Supervisor and Webcast Presenter

2. AGENDA Why do we have New Procurement Rules?
Which Procurement Rules have Changed?
Micro Purchase/No Bids (Commodities)
Micro Purchase/No Bids (Services)
Simplified Procurement/3 Proposals (Commodities)
Simplified Procurement/3 Proposals (Services)
Sole Vendor Procurement (Commodities)
Negotiated Services/Exception to Bid (Services)
Purchasing Thresholds and Guidelines
Types of Contracted Purchase Orders
Types of Non-Contracted Purchase Orders
Background Check on Vendors
Contact Information
Questions

3. WHY DO WE HAVE NEW PROCUREMENT RULES?
New law that renewed Mayoral control of the schools, gave the Panel for Educational Policy (PEP) the authority to approve (among other things)
most of the DOE’s contracts (excludes contracts less than $25,000)
a new procurement policy that meets specific requirements stated in the Law.

4. WHICH PROCUREMENT RULES HAVE CHANGED?

5. GETTING STARTED

7. Main Screen in FY10
Main Screen in FY11

8. Non-Contracted Purchasing Screen in FY10

9. WHICH PROCUREMENT RULES HAVE CHANGED?
Micro Purchase/No Bid – (Commodities) The names have changed, but the processes are the same.
Purchases $250 or less are micro purchases and do not require competition or special documentation.

10. WHICH PROCUREMENT RULES HAVE CHANGED?
Micro Purchase/No Bid – (Services) The names have also changed, and some steps in the processes are new.
**NEW THRESHOLD - Purchases $5,000 or less are micro purchases and do not require competition or special documentation. .

11. WHICH PROCUREMENT RULES HAVE CHANGED?
Simplified Procurement/3 Proposals – (Commodities) The names have changed but the process is the same.
NOTE: Object Code 0338 is no longer a purchasing option under Non-Contracted Commodities.
Three bids are to be obtained from three different vendors (either orally or in writing) depending on the amount of the purchase.
$ $5,000.00: Requires telephone quotes from 3 different vendors.
$5, $15,000.00: Requires written quotes from 3 different vendors.
The internet may be used to identify vendors, however the vendor must be contacted to obtain the bid.

12. WHICH PROCUREMENT RULES HAVE CHANGED?
Simplified Procurement/3 Proposals – (Services) The names have changed and some steps in the processes are new.
Contracted Services: No Changes
Non-contracted Services: **NEW THRESHOLD $5, $25, Three written quotes from 3 different vendors are required.

13. WHICH PROCUREMENT RULES HAVE CHANGED?
Sole Vendor Procurement – (Commodities) Minor Language Change however procedures remain the same.
**NEW THRESHOLD: $ $25,000.00
NOTE: This procurement method should be used when there is only one vendor who provides the goods and no other product meets the same or substantially similar requirements of form, function and utility.

14. WHICH PROCUREMENT RULES HAVE CHANGED?

15. WHICH PROCUREMENT RULES HAVE CHANGED?

16. WHICH PROCUREMENT RULES HAVE CHANGED?

17. WHICH PROCUREMENT RULES HAVE CHANGED?
Negotiated Services/Exception to Bid – (Services) This purchasing option is a combination of Sole Source and Exception to Bid. This purchasing option should be used when it is not practical or possible to obtain the services from another vendor.
NOTE: Additional documentation is required to be maintained on file regarding the procurement. Justification for using this procurement method in FAMIS is now required.

18. WHICH PROCUREMENT RULES HAVE CHANGED?

19. WHICH PROCUREMENT RULES HAVE CHANGED?

20. Purchasing Thresholds and Guidelines

21. PROFESSIONAL SERVICES – Contracted Services
Thresholds
Procurement Action
Process
Timeline
$0 - $25,000.00
Contracted Purchase Order in FAMIS
School enters PO in FAMIS. Principal approves PO. No further approval necessary.
N/A
Over $25,000.00
School enters PO in FAMIS. Review and approval by Principal and CFN is required.
MTAC Required for Vendors with MTAC Contracts .
Up to 5 days
PROFESSIONAL SERVICES – Non-Contracted Services
$0 - $5,000.00
Micro Purchase/No Bids
School enters Micro Purchase order in FAMIS. Principal approval is required.
$5, $25,000.00
Simplified Procurement/3-Proposals
School must solicit and document three (3) written quotes from 3 vendors, then enters Simplified Procurement/3 Proposal PO. Principal approval is required
$5,
$25,000.00
Negotiated Services/Exception to Bid
School must secure additional documentation regarding the procurement. School enters PO into FAMIS. Justification of services must be made. Principal/Head of Office approval is required.
$25, $100,000.00
a) Simplified Procurement/3-Proposals
Principals or CFN must send a request to DCP. DCP will initiate the contract process.
3 Plus months
b)Negotiated Service/Exception
Principals or their equivalent must submit a request and scope of work to DCP Executive Director.
Over
$100,000.00
a)DCP Initiates Contract Process
Principals or CFN must send a request to DCP. DCP will initiate the contract process, either Request For Proposal (RFP), or a Pre-Qualification Solicitation (PQS).
5 – 12 months
6 – 12 months

22. Purchasing Thresholds and Guidelines
PROFESSIONAL SERVICES – Internal DOE Professional Service Providers
Thresholds
Procurement Action
Process
Timeline
$ No Limit
Purchase Order in FAMIS
School allocates money to 0998 object code in Galaxy, then requests service in FAMIS E-Catalog. Service Provider approves services request via FAMIS. No further approval is necessary.
None (but can vary based on provider response time)
PROFESSIONAL SERVICES – SCHOOL PROFESSIONALS
Up to $50,000.00
Create Work Order/
School must create a work order in the School Professionals web base system. Which will generate a purchase order in the FAMIS Purchasing Portal. Principal/Head of Office approval is required.
School Professionals website
Up to 5 days
COMMODITIES – Contracted Items, Non-List, and Listing Applications
$0 - $100,000.00
School enters PO in FAMIS. Principal approval is required.
N/A
Over
$100,000.00
School enters PO in FAMIS. Review and approval by CFN

23. Purchasing Thresholds and Guidelines
COMMODITIES – Non-Contracted Items
Thresholds
Procurement Action
Process
ISC / DCP Response
$0 - $250.00
Micro Purchase/No Bid
If not an active vendor with the DOE, vendor must register with the DOE and receive a vendor number. School enters Micro Bid/No Bid PO in FAMIS. Principal approval is required.
N/A
$ $5,000.00
Simplified Procurement/3 Proposals PO
School gets telephone quotes from three (3) different vendors, then enters PO in FAMIS. Principal approval is required.
$5, $15,000.00
Simplified Procurement/3 Proposals PO
School gets written quotes from three (3) different vendors, then enters PO in FAMIS. Principal and CFN approval is required.
Over $15,000.00
Competitive Sealed Bid
Request must be sent to DCP, who will conduct a public solicitation for the goods.
2-5 months
$ $25,000.00
Sole Vendor
School enters PO in FAMIS. Principal and/or Head of Office approval is required.

24. Single Transaction with P-Card
PROCUREMENT CARDS
Thresholds
Procurement Action
Process
Timeline
$0 - $2,500.00
Single Transaction with P-Card
Following bidding procedures as outlined in SOPM, School completes transaction with P-Card per day.
No further approval necessary
N/A
$0 - $15,000.00
Encumbrance
School may encumber up to this amount
at any given time on P-Card.
Use - Procurement Cards (P-Cards) may be used to increase convenience on purchases which comply with the NYC Department of Education’s (NYC DOE) procurement policies; personal purchases are prohibited, as is the purchase of individual services (e.g. consultants). In addition, the card cannot be used to circumvent bidding thresholds; to split-bill, where the card-holder completes one purchase with multiple transactions; for cash advances; to pay open purchase orders; or to purchase internet connectivity. The maximum per transaction amount is $2,500; the maximum refill amount is $15,000. When you purchase more than $2,500 within the same fiscal year with one vendor, bids are required. For non-contracted purchases, if a single transaction exceeds $250, you must adhere to the appropriate bidding regulation. When purchasing goods, shipping and handling fees may not to exceed the purchase price for the item(s) being purchased. There are many more details on card usage and documentation requirements which can be found in the SOP, Chapter 4.
Cash flow - When you complete your purchase, your local merchant processes the sale through his/her bank; Chase then pays that merchant’s bank through the Visa or Master card association, and sends you a monthly statement. You must certify your purchases in FAMIS monthly, after comparing your usage log with your receipts and the bank statement, contacting the bank immediately if any discrepancies exist. DFO pays Chase once you complete certification. Failure to certify may result in loss of the card.
SIPPs
A SIPP (Small Item Payment Process) and formerly referred to as an IMPREST, is an electronic payment mechanism processed through the FAMIS Portal. SIPPs were originally established to facilitate “over-the-counter” purchase, (e.g., postage), providing for a direct payment to the vendor or reimbursement to the purchaser. With the introduction of P-Cards, SIPPs should no longer be used for purchases. Instead, SIPPs should be reserved for reimbursement to the NYC Department of Education employees for business related expenses.

25. Types of Contracted Purchase Orders

26. Types of Contracted Purchase Orders
Types of Contracted PO’s:
Contracted (E-catalog): to order textbooks, computers, instructional materials, general supplies, audio visual equipment, wireless devices, New York City Leadership Academy and Internal Professional Services.
Non-List: Create a purchase order with a contracted vendor for contracted items not available in the E-Catalog. Includes sheet music, imprinted tee shirts and shorts, and more.
Professional Services: Create a purchase order for contracted professional services (i.e. professional development, curriculum development, evaluation services, student support services, counseling services).
Listing Applications: For the designated procurements of published or copyrighted library and reference materials, testing and assessments, and artistic performance of specific artists or groups, payment of admission fees to cultural institutions and other such programs.

27. Types of Non-Contracted Purchase Orders

28. Types of Non-Contracted Purchase Orders
Types of Non-Contracted PO’s
Micro Bids/No Bids: Create an order (maximum value: $ for Commodities and $5,000 for Services) for a non-contracted vendor.
Simplified Procurement/3 Proposals (Commodities): Create a 3-bids order for non-contracted items.
Simplified Procurement/3 Proposals (Services): Create a 3-Proposal order for non-contracted Services.
Sole Vendor (Commodities Only): Create an order for items when vendor is the sole provider. Certification of Sole Source letter from the vendor is required.
Negotiated Services/Exception to Bid (Services Only): Replaces the Sole Vendor PO for Professional Services. Justification for utilizing this procurement method other than competitive sealed bidding must be made.
Competitive Grant: Create an order for approved vendors associated with awarded grants.

29. Background Check on Vendors

30. Background Checks
For each purchase we are required to do some form of background check on the vendor
Vendors who have $100,000 or more in aggregate business with DOE must complete VENDEX forms
VENDEX forms obtain information about the vendor’s business and principal owners
Vendors must provide information about arrests, and tax liens, parent companies, subsidiaries and affiliated companies, among other things
DCP will get the forms from vendors
When vendors have a history of problems (arrests, tax liens or other problems) with either DOE or NYC, we may not want do business with them. A notice will pop up in the portal requesting you to contact DCP when an order is entered with one of these vendors’ names. You will not be able to complete the order until you have contacted DCP and a determination has been made whether the purchase should be completed. DCP will notify you of the outcome.
5/11/10

31. Finance Service Center
CONTACT INFORMATION
Division of Financial Systems and Business Operations
   Finance Service Center
(formerly known as the Client Service Help Desk)
Monday through Friday
8:00am – 5:00pm

32. QUESTIONS?