1. Small Purchase of Professional Service Providers Administrative Rule R33-4-108

2. What is Considered a Professional Service? Utah Procurement Code 63G-6a-103 states: (39) “Professional service” means a service that requires a high degree of specialized knowledge and discretion in the performance of the service, including: (a) legal services; (b) consultation services; (c) architectural services; (d) engineering; (e) design; (f) underwriting; (g) bond counsel; (h) financial advice; (i) construction management; (j) medical services; (k) psychiatric services; or (l) counseling services.

3. What Cannot Be Procured Under R33-4-108? Design Professional Services (17) “Design professional services” means: (a) professional services within the scope of the practice of architecture as defined in Section 58-3a-102; (b) professional engineering as defined in Section 58-22-102; or (c) master planning and programming services. Use R33-4-105 to procure Design Professional Services

4. Administrative Rule R33-4-108 R33-4-108. Small Purchases of Professional Service Providers and Consultants. (1) The small purchase threshold for professional service providers and consultants is a maximum amount of $100,000. (2) After reviewing the qualifications of a minimum of two professional service providers or consultants, the chief procurement officer, or as applicable, the head of a procurement unit with independent procurement authority, may obtain professional services or consulting services: (a) up to a maximum of $50,000 by direct negotiation; or (b) over $50,000 up to a maximum of $100,000 by obtaining a minimum of two quotes.

5. Administrative Rule R33-4-108 (3) Executive Branch procurement units, to the extent they do not have independent procurement authority, shall involve the Division of Purchasing at the beginning of the quote or solicitation process, in the procurement of professional services or consulting services. (4) A procurement unit using this rule must comply with the following: (a) Utah Code 63G-6a-408 (8) -- Prohibition against dividing a procurement into one or more smaller procurements; (b) Utah Code 63G-6a, Part 24 -- Unlawful Conduct and Penalties; (c) R33-24-104 -- Socialization with Vendors and Contractors; (d) R33-24-105 -- Financial Conflict of Interests Prohibited; (e) R33-24-106 -- Personal Relationship, Favoritism, or Bias Participation Prohibitions; (f) R33-4-103(3) -- Persons with a conflict of interest, or who anticipate responding to the proposal for which the specifications are written, may not participate in writing specifications; and (g) All other applicable laws and rules.

6. R33-4-108 Process for Executive Branch Maximum of $50,000 Maximum $50,000 Direct Negotiation with Most Qualified Professional Service Provider IMPORTANT: Any IT Professional Service under $50,000 will be conducted by DTS.

7. R33-4-108 Process for Executive Branch Maximum of $50,000 Agency is responsible to: 1. Develop the project specifications/SOW. Agency shall involve State Purchasing at the beginning of the process. Your agent will answer any process questions and provide you with the Professional Services Form. 2. Submit an RQS/RQM in FINET, including budget amount and detailed description of professional service.

8. R33-4-108 Process for Executive Branch Maximum of $50,000 3. Send project specifications/SOW to a minimum of two providers and ask them to demonstrate their qualifications in performing the work. DO NOT request quote or pricing from the firm at this time. Statute requires State Purchasing to directly negotiate price in a later stage. 4. Review the qualifications of all providers responding to the project specifications/SOW. Agency must demonstrate they have made a reasonable attempt to review the qualifications of a minimum of two providers.

9. R33-4-108 Process for Executive Branch Maximum of $50,000 5. Fill out the Professional Services Form identifying the names of the providers whose qualifications were reviewed, provide the project specifications/SOW, select appropriate State of Utah T&C’s, and identify the most qualified provider. The completed Professional Services Form, T&C’s, and specifications/SOW must be submitted to State Purchasing via purchasingsolicitations@utah.gov.

10. R33-4-108 Process for Executive Branch Maximum of $50,000 NOTE: The Agency’s Executive Director (or designee) may waive the Standard Terms and Conditions for Services in favor of the Abbreviated Terms and Conditions, if the project is low risk. Use of Abbreviated Terms and Conditions require a signed waiver. Discuss this option with your Purchasing Agent if you are interested.

12. R33-4-108 Process for Executive Branch Maximum of $50,000 State Purchasing will: 1. Ensure the Professional Services Form is complete and clearly identifies the most qualified professional service provider. 2. Will contact the most qualified professional service provider and negotiate the cost of the project specifications/SOW. 3. Conduct any Terms and Conditions negotiations. The Agency’s Assistant Attorney General must approve any changes to the T&Cs. 4. Finalize the award and solicitation file.

13. R33-4-108 Process for Executive Branch Maximum of $50,000 Contract development services are available from State Purchasing Contract Analysts if the agency requests assistance. This is a great resource – especially to those agencies that do not have a designated purchasing or contract staff.

14. R33-4-108 Process for Executive Branch $50,001 - $100,000 Maximum Total Project Amount $100,000 LOWEST BID Between the Two Most Qualified Professional Service Providers IMPORTANT: Any IT Professional Service between $50,001 and $100,000 must be reviewed by DTS and will require a DTS Business Case unless a formal written exception is granted by DTS Executive Management.

15. R33-4-108 Process for Executive Branch $50,001 – Maximum of $100,000 Agency is responsible to: 1. Develop the project specifications/SOW. Agency shall involve State Purchasing at the beginning of the process. Your agent will answer any questions and provide you with the Professional Services Form. 2. Submit an RQS/RQM in FINET, including budget amount and detailed description of professional service.

16. R33-4-108 Process for Executive Branch $50,001 – Maximum of $100,000 3. Send project specifications/SOW to a minimum of two providers and ask them to demonstrate their qualifications in performing the work. DO NOT request quote or pricing from the providers at this time. Statute requires State Purchasing to conduct a quote collection process at a later stage. 4. Review the qualifications of all firms responding to the project specifications/SOW. Agency must be able to identify a minimum of two qualified providers in order to use this process.

17. R33-4-108 Process for Executive Branch $50,001 – Maximum of $100,000 5. Fill out the Professional Services Form identifying the names of the providers whose qualifications were reviewed, provide the project specifications/SOW, select appropriate State of Utah T&C’s, and identify, at a minimum, the two most qualified providers. The completed Professional Services Form, T&C’s, and specifications/SOW must be submitted to State Purchasing via purchasingsolicitations@utah.gov.

18. R33-4-108 Process for Executive Branch $50,001 – Maximum of $100,000 State Purchasing will: 1. Ensure the Professional Services Form is complete and clearly identifies, at a minimum, the two most qualified professional service providers. 2. Contact the most qualified professional service providers identified by the agency and collect quotes. The Agency will be required to selected the lowest priced responsive/responsible provider. 3. Finalize the award and solicitation file. Contract development services are available from State Purchasing Contract Analysts if the agency requests assistance.

19. R33-4-108 Process for Executive Branch $50,001 – Maximum of $100,000 NOTE: Abbreviated Terms and Conditions may not be used on professional services project more than $50,000. Terms and Conditions may not be negotiated. This is bid process and Ts and Cs negotiations are not allowed by code in an IFB.

20. Who can I contact at State Purchasing for more information or if I have a professional service purchase under $100,000?

22. Any questions??? Thank you for attending!