1. Slide #1 Authority to Procure For ODOT staff in the Branches and Regions responsible for obtaining goods and services Updated September 15, 2009 Who has authority to conduct the procurement What state statutes and rules apply

2. Slide #2 Tutorial Overview This tutorial is a self-paced PowerPoint presentation. There are several ways to progress through the tutorial: To Move ForwardTo Move Back Press Page Down on keyboardPress Page Up on keyboard Click right arrow on keyboardClick left arrow on keyboard Click left mouse button Click right mouse button- click reverse on pop-up menu Links Underlined text are links. Click on the link to go to documents or other websites. To return to the tutorial, move the cursor off the open window and right click for a pop-up menu. Select Back on the pop-up menu. Click Open on the pop-up message box to return to the tutorial. To Leave the Tutorial Click Exit on the bottom of the tutorial slide. Read message in pop-up box and select accordingly; either selection will exit the tutorial. Print this page for reference as you progress through the tutorial. Right click for a pop-up menu and select Print. For print range, select Current slide.

3. Slide #3 Tutorial Outline This tutorial covers the following topics: Definitions Delegations of Procurement Authority Applicable state statutes, rules and policies

4. Slide #4 Definitions DAS is an acronym for State of Oregon Department of Administrative Services which is the state department that has responsibility for the majority of state procurements.Department of Administrative Services DOJ is an acronym for Department of Justice which is the department that provides legal counsel to all Oregon state agencies, including ODOT.Department of Justice MWESB is an acronym for Minority, Women and Emerging Small Businesses which are small businesses that meet specific criteria and are certified by the State of Oregon.Minority, Women and Emerging Small Businesses OAR is an acronym for Oregon Administrative Rules which are legal rules that give additional guidelines and requirements for state and local agencies to comply with requirements in the Oregon Revised Statutes.Oregon Administrative Rules ODOT is an acronym for Oregon Department of Transportation.Oregon Department of Transportation ORS is an acronym for Oregon Revised Statutes which are state laws.Oregon Revised Statutes

5. Slide #5 Definitions Procurement is the act of purchasing, leasing, renting or otherwise acquiring goods or services. Procurement includes each function and procedure undertaken or required to be undertaken by ODOT to enter into a public contract, administer a public contract and obtain the performance of a public contract. Solicitation is the process of requesting price quotes, bids or proposals from the business community to fill ODOTs needs for purchase of goods or services. Solicitation is part of the procurement process.

6. Slide #6 Definitions Contract is a legally-binding written document that includes all agreed-to terms between ODOT and the vendor, contractor or consultant relative to the goods or services to be provided to ODOT following execution of the contract. A contract is executed when all required approvals and signatures have been obtained on the contract document. The execution date is the date the last required signature was obtained. Intergovernmental Agreements are legal documents that define the obligations of all parties involved in a project, service, funding pass-through, transfer of property jurisdiction, or other cooperative arrangement. Per ORS 190, ODOT is authorized to enter into Intergovernmental Agreements with: A unit of local government A state agency of this or another state The United States, or with a United States governmental agency An American Indian tribe or an agency of an American Indian tribe Another nation or public agency of another nation

7. Slide #7 Types of Purchases There are various categories of things that ODOT procures: Goods – Based on the definition in ORS 279A.010, Goods include supplies, equipment, materials, personal property including any tangible, intangible and intellectual property such as computer software, and the rights and licenses in relation thereto; and combinations of any of the items identified in this definition.ORS 279A

8. Slide #8 Types of Purchases Services is an example of a term that is defined differently in the ORS and OAR. Based on the definition in ORS 279A, Services is defined as all services except for those defined as Personal Services.ORS 279A Based on the definition in OAR 125, Services includes Trade Services, Personal Services, or any combination thereof, and Trade Services is defined as all services except Personal Services.OAR 125 Examples of services that fall under both definitions include: painting landscaping plumbing janitorial some training services geotechnical drilling tree removal roadway construction

9. Slide #9 Types of Purchases Personal Services are those services that require specialized skills, knowledge and resources for application of technical or scientific expertise, or the exercise of professional, artistic or management discretion or judgment. Personal services are sometimes referred to as Professional Services. Typically, the definition of Personal Services includes Architectural, Engineering and Land Surveying (A&E) and Related Services. However there are some exceptions to this in the ORS and OAR.

10. Slide #10 Types of Purchases Architectural, Engineering and Land Surveying (A&E) are personal services that are required to be performed by an architect, engineer or land surveyor who is registered and holds a valid certificate in the practice of architecture, engineering, or land surveying in the state of Oregon. ODOT often procures A&E services for the design and engineering of roadways and bridges.

11. Slide #11 Types of Purchases Related Services means personal services, other than architectural, engineering and land surveying services, that are related to the planning, design, engineering or oversight of public improvement projects or components thereof. Some examples of Related Services are: facilities planning services environmental impact studies wetland delineation studies Native American studies historical research services endangered species studies rare plant studies biological services archaeological services transportation and land-use planning

12. Slide #12 Procurement Authority vs. Expenditure Authority Procurement Authority is the authorization to conduct procurements for goods and services. When you have Procurement Authority, you can: Prepare solicitation documentation. Conduct solicitations up to your delegated threshold. Negotiate contracts, when appropriate. Prepare contract documentation. Manage and administer contracts. Sign and authorize procurement documents that obligate or expend public funds up to your Expenditure Authority limit. Expenditure Authority is the authorization to approve the obligation or payment of public funds. When you have Expenditure Authority, you can: Sign contract request forms authorizing solicitations up to your authorized threshold. Sign contract documents, including Purchase Orders, up to your authorized threshold. Approve payment of invoices up to your authorized threshold. This tutorial focuses on Procurement Authority.

13. Slide #13 How ODOTs Procurement Authority is Delegated Procurement authority is delegated to state agencies through a hierarchal process: State of Oregon legislators delegate procurement authority to the heads of state agencies through specific Oregon Revised Statutes (ORS). Agencies with statutory procurement authority may delegate procurement authority to other agencies through specific Oregon Administrative Rules (OAR). Agencies can further delegate procurement authority through Policies. ORS OAR Policies

14. Slide #14 Delegations through Oregon Revised Statutes Per the Oregon Revised Statutes, procurement authority for all procurements for state agencies is delegated to Department of Administrative Services (DAS). This gives DAS procurement responsibility over all state agencies. However, ORS 279A.050 states specific exceptions to this for some state agencies, including but not limited to: Department of Transportation Secretary of State The State Treasurer Department of Human Services State Department of Fish and Wildlife State Parks and Recreation Department Oregon Department of Aviation Individual procurements that do not meet the criteria under the ORS exceptions fall under DAS Procurement Authority. DAS Procurement Authority

15. Slide #15 Delegations through Oregon Revised Statutes The exceptions that apply to ODOT are listed in ORS 279A.050(3) which states the Director of Transportation has all the authority to:ORS 279A Procure or supervise the procurement of all services and personal services to construct, acquire, plan, design, maintain and operate passenger terminal facilities and motor vehicle parking facilities in connection with any public transportation system in accordance with ORS 184.689 (5); Procure or supervise the procurement of all goods, services, public improvements and personal services relating to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation; and Establish standards for, prescribe forms for and conduct the prequalification of prospective bidders on public improvement contracts related to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation. Many of ODOTs procurements fall under ODOTs Procurement Authority. ODOT Procurement Authority

16. Slide #16 Delegations through Oregon Revised Statutes ODOT has additional procurement-related authority delegated through other ORS. Procurements authorized under these other statutes must comply with different requirements. A couple examples of additional procurement authorities are: ORS 367.800 gives ODOT legal authority to use entrepreneurial approaches through the Oregon Innovative Partnerships Program to obtain funding and procure services. ORS 367.800 ORS 190 gives ODOT legal authority to enter into Intergovernmental Agreements with: ORS 190 A unit of local government or a state agency of this or another state The United States A United States governmental agency An American Indian tribe An agency of an American Indian tribe A nation or a public agency in any nation This tutorial focuses on Procurement Authority originating through ORS 279A.

17. Slide #17 Oregon Revised Statutes ORS 279A General requirements that apply to all procurements ORS 279B Applies to procurement of goods and services, with the following exceptions: Does not apply to personal services defined as architectural, engineering and land surveying (A&E) and related services. Does not apply to procurements for public improvements. ORS 279C Applies to procurement of personal services defined as A&E and related services. Applies to procurements for public improvements. The majority of ODOTs procurements must comply with applicable requirements under ORS 279A, 279B, and 279C. These statutes are also referred to as the Public Contracting Code.

18. Slide #18 Oregon Revised Statutes Another statute worth mentioning is ORS 200.035 which requires ODOT to provide timely notice and information of all solicitations and contract awards that exceed $5,000 to the Advocate's Office for Minority, Women, and Emerging Small Business.ORS 200 Advocate's Office for Minority, Women, and Emerging Small Business This requirement applies to all procurements that exceed $5,000, including procurements conducted by an ODOT Branch or Region using an informal three quote process. There are three options for complying with ORS 200.035:ORS 200 Fax a completed notification form to the Advocates Office to provide timely notice and information about your solicitation. Allow a minimum of 10 business days for the Advocates Office to notify appropriate certified firms. Fax notification of contract award to the Advocates Office.notification form Check OMWESB website for certified Minority, Women or Emerging Small Businesses that provide the products needed and fax notification form to the Advocates Office to report the findings of your search and a list of the certified vendors you contacted to request quotes. Fax notification of contract award to the Advocates Office.OMWESB website notification form Post solicitation information on ORPIN providing enough time for providers to respond before selecting vendor and making purchase. Post award of contract on ORPIN.

19. Slide #19 More About DAS Procurement Authority DAS established procurement rules under Oregon Administrative Rules (OAR) Chapter 125, commonly referred to as DAS Rules. All procurements that are under DAS procurement authority must comply with applicable ORS and DAS Rules. DAS Rules include: OAR 125-246: General Provisions for Public Contracting. OAR 125-246 OAR 125-247: Public Procurement of Supplies and Services. OAR 125-247 OAR 125-248; Consultant Selection: Architectural, Engineering, and Land Surveying Services and Related Services. OAR 125-248 OAR 125-249: General Provisions Related to Public Contracts for Construction Services. OAR 125-249 ORS OAR OAR 125-248 and OAR 125-249 rarely apply to ODOT procurements because generally ODOT procures these services for transportation-related projects, therefore these procurements are conducted under ODOTs procurement authority.

20. Slide #20 DAS Delegations through Oregon Administrative Rules For procurements that are under DAS procurement authority: DAS has delegated procurement authority to state agencies for purchases of Goods and Services not exceeding $150,000 and Public Improvements not exceeding $100,000 per OAR 125-246-0170(2)(c).OAR 125-246 This means: ODOT conducts our own procurements up to those thresholds. Procurements that exceed $150,000 (or $100,000 for Public Improvements) are conducted by DAS on ODOTs behalf. These procurements must comply with applicable ORS and DAS Rules. Examples of ODOT procurements that are under DAS procurement authority: ODOT Rail - Bus Service at AMTRAK stations Pre-Employment Testing DMV Equipment Maintenance Office of Civil Rights - Disparity Study Public Transit- Buses and other vehicles Language interpretation of DMV materials ORS OAR

21. Slide #21 DAS Delegations through Policy Procurement of any Architectural, Engineering, Land Surveying and Related Services that do not fall under ODOTs Procurement Authority are under DAS Procurement Authority. However, this situation rarely occurs in ODOT procurements. DAS has delegated procurement authority to state agencies for procurement of all Architectural, Engineering, Land Surveying (A&E) and Related Services per DAS Policy #107-009-010.DAS Policy #107-009-010 This means: ODOT conducts our own solicitations, contract awards, amendments and other contract administration for Architectural, Engineering, Land Surveying and Related Services even when the procurement falls under DAS procurement authority. The procurements that are under DAS procurement authority must comply with applicable ORS and DAS Rules. ORS OAR Policies This delegation applies to very few of ODOTs procurements because the majority of A&E and Related Services that ODOT procures are related to transportation projects and therefore are under ODOTs statutory procurement authority.

22. Slide #22 Procurement Authority for ODOT As mentioned previously, ORS 279A.050(3) states the Director of Transportation has all authority to: Procure or supervise the procurement of all services and personal services to construct, acquire, plan, design, maintain and operate passenger terminal facilities and motor vehicle parking facilities in connection with any public transportation system in accordance with ORS 184.689 (5); Procure or supervise the procurement of all goods, services, public improvements and personal services relating to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation; and Establish standards for, prescribe forms for and conduct the prequalification of prospective bidders on public improvement contracts related to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation. This means: ODOT conducts all procurements that fall within this criteria. Procurements that do not meet this criteria are under DAS procurement authority. ORS

23. Slide #23 ODOT Procurement Authority ODOT established procurement rules under OAR Chapter 731, commonly referred to as ODOT Rules. ODOT Rules apply to all procurements that fall under ODOT procurement authority. ODOT Rules include: OAR 731-005 Public Contract Rules, Highway and Bridge Projects OAR 731-005 OAR 731-007 Public Improvement Contracts, Highway and Bridge Construction OAR 731-007 OAR 731-146 General Provisions Related to Public Contracting OAR 731-146 OAR 731-147 Public Procurement for Goods and Services, General Provisions OAR 731-147 OAR 731-148 Consultant Selection: Architectural, Engineering, Land Surveying and Related Services Contract OAR 731-148 OAR 731-149 General Provisions Related to Public Contracts for Construction Services OAR 731-149 ORS OAR

24. Slide #24 ODOT Procurement Authority With some exceptions, ODOT has adopted procurement rules under OAR 137, commonly referred to as DOJ Model Rules. This means: Procurements conducted under ODOT procurement authority must comply with applicable ORS and DOJ Model Rules (OAR 137), except as specified in ODOT Rules (OAR 731). DOJ Model Rules include: OAR 137-046 General Provisions Related to Public Contracting OAR 137-046 OAR 137-047 Public Procurements for Goods or Services OAR 137-047 OAR 137-048 Consultant Selection: Architectural, Engineering, Land Surveying Services and Related Services Contracts OAR 137-048 OAR 137-049 General Provisions Related to Public Contracts for Construction Services OAR 137-049 ORS OAR

25. Slide #25 Delegation of Procurement Authority to ODOT Staff Individual staff within ODOT are delegated authority to procure goods and services through an internal hierarchy of delegations. Following is a general outline of how ODOT delegates procurement authority: ODOT Policy ODOT Policy ORG 05 covers delegation of procurement authority on a high organizational level. Delegation Orders Delegations from Oregon Transportation Commission to ODOT Director, Deputy Directors, Chief of Staff, and Chief Financial Officer. Sub Delegation Orders Delegations from ODOT Director to ODOT Deputy Directors, Chief Engineer, Region Managers, and others. Letters of Authority Delegations from ODOT managers to specific ODOT staff. Policy Delegation Orders Sub Delegation Orders Letters of Authority Refer to the delegation document for the specific terms of the delegation.

26. Slide #26 Delegation of Procurement Authority within ODOT ODOT Policy ORG 05 includes delegation of procurement authority: ODOT Policy ORG 05 To the Chief Procurement Officer, Support Services, or designee, to process and execute all personal service contracts and highway construction projects including Architectural and Engineering, Land Surveying, and Related Services. To the Chief Procurement Officer, Support Services, or designee, to process and execute contracts for the purchase of goods, trade services, public works, and public improvement projects over $75,000 per ORS 279A.050(3). To each Deputy Director, Division Administrator, Branch Manager, Region Manager, and managers in executive service status to approve and sign contracts for the purchase of goods, trade services, public improvements, and public works projects up to $75,000. ORG 05 applies to procurement authority whether delegated to ODOT through ORS 279A.050(3) or delegated from DAS through rule or policy.

27. Slide #27 Delegation of Procurement Authority within ODOT According to the delegations in ORG 05:ORG 05 The ODOT Procurement Office has authority to: Procure all personal service, including Architectural and Engineering, Land Surveying, and Related Services. Procure all highway construction services for public improvement projects. Procure goods, trade services, public works, and public improvement projects over $75,000. ODOT Branches and Regions have authority to: Procure goods, trade services, public improvements, and public works projects up to $75,000.

28. Slide #28 Delegated Authority for ODOT Branches and Regions This is important for ODOT staff in Branches and Regions, because it means: Authorized staff in ODOT Branches or Regions can conduct: Small Procurements not exceeding $5,000 for goods, trade services, public improvements, and public works projects on behalf of the Branch or Region (with some exceptions). Intermediate Procurements up to $75,000 for goods, trade services, public improvements, and public works projects on behalf of the Branch or Region (with some exceptions). Procurements must comply with applicable statutes and rules: ORS 279A, 279B, and 279C ORS 200.035 regarding notification to the Advocates Office for MWESB DAS Rules when procurement is under DAS Procurement Authority ODOT Rules and DOJ Model Rules when procurement is under ODOT Procurement Authority For more information about how to conduct procurements, refer to the ODOT Procurement Office Training page for links to classes and online tutorials.ODOT Procurement Office Training page

29. Slide #29 Delegated Authority for ODOT Branches and Regions For some types of procurements, ODOT staff in Branches and Regions must: Submit requests to ODOTs Information Technology Procurement and Asset Management (ITPAM) section to procure information technology (IT) goods or services, such as computer hardware and software: ITPAM will conduct IT related procurements up to $75,000. ITPAM will submit IT related procurements that exceed $75,000 to the ODOT Procurement Office. Submit requests to Cindy Lesmeister to procure A&E and Related Services directly related to Transportation & Growth Management (TGM) projects: Cindy will conduct TGM related procurements up to $150,000. Cindy will submit TGM related procurements that exceed $150,000 to the ODOT Procurement Office. Submit requests to the ODOT Procurement Office for: All procurements for personal services, including but not limited to A&E and Related Services (except for TGM as noted above). All procurements for goods, trade services, public improvements, and public works projects that will exceed $75,000.

30. Slide #30 What OPO Will Do for Branches and Regions The ODOT Procurement Office (OPO) will complete the following on Branch or Regions behalf: Conduct all procurements for goods, trade services, public improvements, and public works projects that exceed $75,000. Except when procurement is under DAS Procurement Authority, OPO will: Conduct procurements that exceed $75,000 and not exceed $150,000. Submit procurements that exceed $150,000 to DAS. Conduct all procurements for Architectural, Engineering, Land Surveying (A&E) and Related Services. Conduct procurements for all non-A&E personal services. Except when procurement is under DAS Procurement Authority, OPO will: Conduct procurements up to $150,000. Submit procurements that exceed $150,000 to DAS.

31. Slide #31 Where to go for more information Following are resources for or more information about procurement authority: ODOT Procurement Office Intranet site Procurement Manual, Section G – Procurement Authority Procurement Authority/Delegations webpage Procurement Authority/Delegations ODOT Procurement Office Training webpage ODOT Procurement Office Training Fiscal and Procurement Responsibilities classroom training Fiscal and Procurement Responsibilities ODOT Intranet site ODOT Policy and Procedure Manual ODOT Delegation Orders ODOT Subdelegation Orders

32. Slide #32 Questions? If you have questions about procuring goods or services, contact your local OPO Procurement Specialist, or the primary contact for your area as listed below: Region 1 - Bob McKibben 503.731.8462 Region 2 and Technical Services Branch - Doug Peetz 503.986.2980 Regions 3, 4 and 5 - Kevin Cassidy 541.963.1326 Other ODOT Sections - Tara Anderson 503.986.2921 Construction Contracts - Marie Wright 503.986.2737 If you have questions or comments related to this tutorial, please contact: Mary Wandell Procurement Training Coordinator 503.986.2617 mary.d.wandell@odot.state.or.us

33. Slide #33 Acknowledgements I would like to thank the following people for their assistance in developing this tutorial: Tara Anderson, ODOT Procurement Office Jerry Bohleen, ODOT Procurement Office Elizabeth Clark, ODOT Procurement Office Pat Corey, ODOT Procurement Office Bob McKibben, ODOT Procurement Office Joanne Robinson, ODOT Procurement Office Gordon Shadle, ODOT Procurement Office Vera Wicks, ODOT Procurement Office Marie Wright, ODOT Procurement Office Jule Youngren, ODOT Procurement Office