3 LEGISLATION1979, American Bar Association produced its Model Procurement Code for State and Local Governments1981, State of South Carolinaadopted its ConsolidatedProcurement Code24 other states have adoptedsome form of the ABA’sModel CodeSource: NASPO’s 2012 Survey of State Government Procurement Practices
4 PROCUREMENT RULES – ALL OF YOU HAVE THEM All states have adopted procurement codesOurs requires political subdivisions to adopt model ordinancesIf you expend federal funds, you must follow your procurement policy or the Federal Acquisition RegulationsIt’s the buyers v. the sellers ladies and gentlemen
9 STATE PROCUREMENT ORGANIZATIONS Every state has a central purchasing officeIn SC, it’s the Budget and Control Board Procurement Services Division3 Chief Procurement OfficersInformation Technology Management Officer – Mike SpicerState Engineer – John WhiteMaterials Management Officer – Voight Shealy
10 STATE PROCUREMENT ORGANIZATIONS Vary from state to stateSome are more centralizedSome are more decentralizedMost are center lead
11 CENTRAL PROCUREMENT’S ROLE To process procurements of the highest complexity as well as statewide term contracts and multi-state cooperative purchases to save money on common items and services used by most agencies.Large, complex agency buys.State term contracts1) to aggregate various agencies’ needs into very large buys for discounted pricing2) So 100 agencies don’t have to
12 AGENCY PROCUREMENT ORGANIZATION Determined by Each AgencyKnow your personal authority
13 AGENCIES’ PRIMARY ROLE To manage procurements for:Routine needsAgency expertise
14 AGENCY AUTHORITY Varies state to state from $2,000 to unlimited In SC, Every State Agency’s authority - $50,000Higher Limits May Be RequestedAll you have to do is hire a competent procurement staff and follow the Code
15 SURVIVAL TIP # 2Learn how to write unambiguous specifications that accurately describe the products you need or the services you require.
16 SPECIFICATIONS - Products Describe what you needWhat should it do? How fast?Heavy or light duty?How big? How tall? How long?Do you care? Don’t spec it if you don’t need itSpec Quality NecessaryLow Bid Does Not Mean Cheap!
17 Specifications - Products For products, most common specifications are "Brand Name or Equal" specsName an acceptable make and model or two to describe the quality neededList Salient Features DesiredWhat distinguishes this model from all others?Allow bidders to offer the models listed or other “equal” products
18 SPECIFICATIONS - Services Describe what services you needWhat must the contractor do? Be Specific!Spec qualifications requiredi.e., Do you want a licensed contractor?How fast should the response time be?How many staff should be devoted to your job?Past experience requirements?Always require references – Check Them
19 SpecificationsIt is vital that your Scope of Work is clear in defining what you expect your contractor to do.It is vital that you are clear in stating what must be covered in each bidder’s priceBe precise
20 Specifications Should Be Open and Competitive. But: Every specification imposes a requirement. Therefore, it may limit competition. If necessary, that is fine.But, it cannot be unduly restrictive.It's OK to Seek Info From Vendors Before You Solicit
25 SOURCE SELECTION METHODS ALL PROCUREMENTS MUST BE MADE BY ONE OF THE METHODS LISTED ABOVE.
26 SMALL PURCHASES – INFORMAL PROCEDURES In SC, <$50,000Competition Required<$2, None$2, $10, Call for 3 Written Quotations$10, $49, Advertisement in South Carolina Business Opportunities
27 SMALL PURCHASES DO DON’T Be Consistent With Specifications Call the Required Number of VendorsDocument Calls - Write them downDON’TTell Competitors What Other Vendors BidSplit Orders
28 COMPETITIVE SEALED BIDS Formal process for $50,000 or moreWritten solicitations request written bidsAward - Lowest Responsive & Responsible Bidder
29 COMPETITIVE SEALED BIDS DOAllow Bidders Adequate Time to Develop BidsMake Sure Low Bidder is Responsive and ResponsibleDon’tBase your specifications on a single vendor’s productMake your specifications overly restrictive
30 COMPETITIVE SEALED PROPOSALS Evaluation - Team Scores of Proposals Judged Against Weighted Factorsi.e., past experience with similar projects, innovation in solving our problem, team qualifications, financial stabilityAward - Highest Ranked Offeror, not necessarily lowest costState your problem - Buy solutions!
31 EMERGENCYAllowed only in emergency situations - Threats to Public Health, Welfare,Critical Economy or SafetyWritten Determinations Often RequiredAuthorized Approval Required
32 EMERGENCY Plan Your Requirements DOPlan Your RequirementsExplain the Emergency - What happened?Compete as PracticalDON’TShoot Yourself in the Foot!“This annual event” – REALLY?!
33 SOLE SOURCE Unique Item or Service and Available From Only One Source It’s not the source we like the mostWritten Determination Often RequiredAuthorized Approval Required
34 SOLE SOURCE DO Search for Competitors Document Efforts to Find Competition - How do you know it’s a sole source?DON’TPlay a Bad Hand - if in doubt, compete it
35 SURVIVAL TIP # 4 Protect Yourself People are watching As a public manager, it is your duty to ensure that you and your employees comply.
36 LEGAL AND CONTRACTUAL REMEDIES Every state (except Massachusetts) has a protest processIn SC, Protests - $50,000 or moreSolicitations - Any Prospective Bidder or OfferorAwards - Any Actual Bidder or OfferorContract Controversies - State or Vendor May File
37 STATE AUDITING State Auditors Legislative Auditors Other Auditors In SC, Audit and Certification - Performs compliance audits of procurement activity