1. SMALL PURCHASE TRAINING Chief Procurement Office General Services https://youtu.be/AqY4iOY33lQ This presentation is available to watch at

2. WELCOME! Sharon Clanton, CPPB Senior State Purchasing Officer Team Leader for Social Services sharon.d.clanton@illinois.gov

3. Overview Definitions Small Purchase Process Illinois Procurement Gateway (IPG) How to search for vendors by NIGP Codes Contract Method Forms A/B Procurement File Contracts Act New Changes

4. DEFINITIONS

5. What is a Small Purchase? A small purchase is a one-time purchase less than $50,400. Construction is less than $70,600. As defined in CPO Notice # 2013.07CPO Notice # 2013.07

6. What is it meant by a “Set-Aside”? Two Types: One-time purchase less than $50,400 The purchase falls under one of the 673 set-aside commodity codes regardless of dollar amount.673 set-aside commodity codes The Small Business Set-Aside Program is: Designated to shelter small businesses in Illinois from competing with large businesses for state awards and contracts ONLY qualified Illinois businesses

7. WHO QUALIFIES Retail – annual sales of $6 million or less Wholesale – annual sales of $10 million or less Manufacturing - 250 employees or fewer OR annual sales of $10 million of less Construction – annual sales of $10 million or less Illinois based companies

8. Small Purchase Process 1 Identify Need 2 SPO Approves in PBC work log in the Remedy system 3 Request for Quote (RFQ) 4 Search for vendors by NIGP codes 5 Create email list 6 Determine lowest, responsible vendor 7 Contracting Method 8 SPO Approves execution of contract / BOA /PO 9 Procurement File Checklist ** requirement determined by SPO

9. STEP 1 Identify Need

10. Where do you start ? Determine your need Procurement Method Master Contracts – Under the Illinois Procurement Bulletin http://www.purchase.state.il.us Determine estimated cost of the procurement Unlawful stringing of bids (720 ILCS 5/33E-18) Sec. 33E-18 Is dividing or planning procurements to avoid use of competitive procedures (stringing) is prohibited. Class 4 felony

11. Small Purchase Process and Procedures Standard Small Purchase Process If over $10,000 and an exception is not applicable, obtain SPO’s approval in PBC for the procurement method. Develop written specifications with sufficient information for a reasonable vendor to understand the goods or services to be provided, determine its willingness and ability to provide the goods or services, and determine pricing. Identify small businesses registered in the Illinois Procurement Gateway (IPG) (https://ipg.vendorreg.com) under commodity code(s) applicable to the goods or services needed.https://ipg.vendorreg.com) under commodity code(s) applicable to the goods or services needed. Email all identified small businesses a request for quote, including the written specifications, a specified pricing format to ensure ability to compare prices, and a reasonable deadline for responses. Review and compare responses received. Award to the registered responsive small business with the lowest price.

12. Standard Small Purchase Process (cont) If the Agency does not believe awarding to a registered responsive small business is in the State’s best interest, the Agency shall: Complete a Small Business Set-Aside Program Waiver form (SBSP Waiver) with approval by the SPO, Obtain quotes from at least three (3) non-Small Business Set-Aside Program (SBSP) vendors, and Award to the vendor with lowest price. Document SPO’s justification for award in the PBC. Document SPO’s approval of the contract in the PBC. 1.12. Execute contract.

13. Five Exceptions to the Standard Small Purchase Process #1 - Small Purchase less than $1,000 (No SPO Involvement) Identify a need for goods or services. Estimate the total cost of the procurement. Develop written specifications with sufficient information for a reasonable vendor to understand the goods or services to be provided, determine its willingness and ability to provide the goods or services, and determine pricing. May source a single SBSP vendor or non-SBSP vendor. No SBSP Waiver is required. The executed State Agency Small Purchase Designation memo serves as the written determination for awarding the contract.

14. #2 - Small Purchase from $1,000 to $10,000 inclusive, excludes Sole Source Condition and Emergency Condition Purchases (No SPO Involvement ) Same steps to develop RFQ. May obtain a quote from a single small business registered in the Illinois Procurement Gateway (https://ipg.vendorreg.com) under commodity code(s) applicable to the goods or services needed.https://ipg.vendorreg.com) under commodity code(s) applicable to the goods or services needed.. If the small business’ quote meets the Agency’s needs, then award the contract

15. Step 2 continued If the small business’ quote does not meet the Agency’s needs, then: Identify small businesses registered in the Illinois Procurement Gateway (https://ipg.vendorreg.com) under codes applicable to the goods or services needed.https://ipg.vendorreg.com) under codes applicable to the goods or services needed. Email all identified small businesses a request for quote, including the written specifications, a specified pricing format to ensure ability to compare prices, and a reasonable deadline for responses. Review and compare responses received. with the lowest price.

16. If the Agency does not believe awarding to a registered small business is in the State’s best interest, the Agency shall: Complete a SBSP Waiver with approval by the appropriate Agency designee (Agency completes the Waiver). Obtain quotes from at least three non-SBSP vendors, and Award to the responsive vendor with lowest price. The executed State Agency Small Purchase Designation memo serves as the written determination for awarding the contract.

17. #3 - Emergency Condition Exists for Purchases from $1,000 to $10,000 inclusive (No SPO Involvement) Identify a need for goods or services. Estimate the total cost of the procurement. Develop written specifications with sufficient information for a reasonable vendor to understand the goods or services to be provided, determine its willingness and ability to provide the goods or services, and determine pricing. May source a single SBSP vendor or non-SBSP vendor. If a SBSP Waiver is required, complete a SBSP Waiver with approval by the appropriate Agency designee (Agency completes Waiver). The executed State Agency Small Purchase Designation memo serves as the written determination for awarding the contract.

18. #4 - Emergency Condition Exists for Purchases Greater than $10,000 up to the Small Purchase Threshold (currently $50,400) (SPO Involvement Limited to PBC) Same first 3 steps, then May source a single SBSP vendor or non-SBSP vendor. If a SBSP Waiver is required, complete a SBSP Waiver with approval by the appropriate Agency designee (Agency completes Waiver). If over $20,000, execute the contract. If over $20,000, contract must be signed timely to avoid the necessity of a Late Execution Waiver. Document SPO’s approval for the procurement method, award determination, and contract in the PBC.

19. #5 - Sole Source Conditions Exist for Purchases $1,000 and Greater Same 3 steps, then If over $10,000, document SPO’s approval for the procurement method in PBC. May source a single SBSP vendor or non-SBSP vendor. If over $10,000, document SPO’s approval for the award determination in PBC. SPO completes SBSP Waiver, if not awarded to a SBSP vendor. Document SPO’s approval of the contract in the PBC. If over $20,000, execute the contract.

20. STEP 2 SPO Approval in PBC Remedy

22. ROUTING TAB / WORK LOG ROUTING TAB The user Email to route the PBC for review and approval. This will bring up an email with a link to the PBC. Click on Send to send the email. Or include the PBC # within an email to the SPO. When the SPO receives the email, they will go into Remedy item and access the History tab. Go to the Work Log box and indicate their approval or rejection, including any appropriate comments in the Work Log. They can respond to appropriate person through email

23. Start Approval The SPO should update in the Work Log any requests for additional information or reasons if PBC is rejected or Approvals of method, award and contract execution are included with time, date, identity are populated The Work Log is used to track important information such as requests for additional information, approvals or reasons that PBC was rejected. The Work Log cannot be deleted once information is added. The Work Log can be updated by reviewers, approvers and creators to track all reviews, approvals, and communications.

24. STEP 3 Request for Quote (RFQ)

25. Internal Number Be detailed this is your communication to vendors Specified pricing format to ensure ability to compare prices Reasonable deadline

26. STEP 4 How to search for vendors?

27. Search for Vendors by NIGP Commodity Codes Search Vendor Registry here: https://ipg.vendorreg.com/FrontEnd/VendorSearchRegistry.asp?TN=ipg&XID=8 097 https://ipg.vendorreg.com/FrontEnd/VendorSearchRegistry.asp?TN=ipg&XID=8 097 Class Code- 3 digit high level overview, item code is 5 digit specific code When searching codes do you want broad (class code) or specific (item code)? Print screen shot of vendors by the code Right click to print Tip: Control F, Control C, Control V

28. HOW TO SEARCH the IPG database for Small Business Set- Aside vendors/e-mail solicitation to group Go to www.ipg.vendorreg.comwww.ipg.vendorreg.com Click Registered Vendor Directory In the Search By Commodity code box, click on the “click to look up commodity code” link; if you already know the code, type it in the search box and hit search. Otherwise perform a search to find the appropriate commodity code and then choose “add” then “return” to close the search window. Scroll to the bottom left side of the page and find “Small Business Set-Aside Program (SBSP) Registered” and click yes in the box. Next, click on the “Search” tab. All registered qualified small vendors will come up for the commodity code(s) you have chosen. To finish building your e-mail group, click on the “To Excel” tab. Once the Excel spread sheet is open, copy the e-mail addresses listed. Next go into Outlook and click on New. Put cursor next to CC… box and click paste. Below is a screen shot of what the screen looks like.

30. STEP 5 Create email list

31. Create Email List Create new list every time. New vendors are added daily. Create new list every time Solicit all regardless of geographic area Include all vendors in CC Print emails WHY?? Promote competition Giving other small vendors in the program an opportunity to bid Transparency Allow vendor to make the business decision to bid Quicker and more efficient than picking and choosing vendors from the database

32. SMALL BUSINESS WAIVER

33. Small Business Waiver A small business waiver is required when a purchase less than $50,400 dollars is not going to be set-aside to a qualified small business. service or commodity falls under one of the 673 set-aside categories and is not going to be set-aside. demonstrate clear and adequate justification for the waiver is required If the waiver is for a purchase OVER $10,000, the agency SPO would sign it. If the purchase falls under one of the 673 set-aside categories, the Small Business SPO (Scott McKinnery) would sign A waiver should be obtained prior to making an award. Obtain quotes from at least 3 non-SBSP vendors and award to vendor with lowest price if no responses from Small Businesses. www.illinois.gov/cpo/general/Pages/SBSPSmallPurchaseForms.aspx

35. Justification Signed by Scott McKinnery Signed by SPO

36. STEP 6 Determine lowest, responsible vendor

37. Determination You are ready to determine which vendor will receive the award based on the following: Quotes were solicited from the SBSP list from IPG Registered Vendor Directory database, and will be awarded to the lowest priced, responsive and responsible vendor. 1. Log into IPG and pull vendor information to look for flags and print Form F SAMPLEIPGSAMPLE Additional Training for IPG Training for State Users 2. Comptroller’s offset system-Delinquent debt/offset print out for purchases over $10,000.00 CPO Notice 2012.06 3. Screen Print of Awardee’s SBSP detailed information from the Vendor DirectoryVendor Directory

38. STEP 7 Contracting Method

39. Basic Ordering Agreement (BOA) or Stand Alone Contract BOA-Under $50,400 form or Stand Alone Contract http://www.illinois.gov/cpo/general/Pages/DoingBusinesswithStateAgencies.aspx Chart Send to vendor for completion only after SPO/APO approval in the PBC work log is completed

41. Forms A or Forms B Forms B for vendors listed in the IPG Recent change: to be a qualified vendor in the SBSP program you must have an active/accepted State of Illinois vendor registration Forms A for vendors not listed in the IPG

42. STEP 8 Complete SPO APPROVAL in History Work Log

43. STEP 9 Procurement File

44. Procurement File Checklist http://www.illinois.gov/cpo/general/Pages/ProcurementFile Checklists.aspx http://www.illinois.gov/cpo/general/Pages/ProcurementFile Checklists.aspx The procurement file shall be open to public inspection within 7 business days following award of the contract. Include all other substantive documents and records of communication that pertain to the procurement and any resulting contract. CPO Notice 2013.10

45. Small Business Contracts Act Not less than 10% of the total dollar amount of State contracts shall be established as a goal to be awarded to small business An annual and mid-year report is required to be submitted by each agency under this act. There are two reports due annually that are submitted to the General Assembly. http://www.illinois.gov/cpo/general/Pages/PublicationsRep orts.aspx http://www.illinois.gov/cpo/general/Pages/PublicationsRep orts.aspx

46. New Policy Must have a valid State of Illinois vendor registration in the IPG- Vendors must complete Form C.-Small Business Set- Aside Program Now 1 year term Easy access to the list: IPG Registered Vendor Directory

47. Thank you Contact Information Chief Procurement Office General Services 401 S. Spring, 515 Stratton Office Building Springfield, IL 62706 eec.smallbusiness@illinois.gov