Department of Administration Materials Management Division Duane Kroll, CPPB

Purchasing Authority Commissioner of Administration (As delegated by Minn. Stat. Ch. 16C) Materials Management Division Authorized Agency Buyer 2

What the State Buys Total value of State purchasing is approximately $4 billion Wide Range of Goods Non-Prof/Tech Services Professional/Technical Services Construction 3

Procurement Overview One time Purchases Long Term Contracts About 1700 contracts 1 – 5 year contract terms are typical Approximately 1000 contracts are offered to CPV members 4

Cooperative Purchasing Venture (CPV) Program Allows other governmental entities to procure goods and services from state contracts, when allowed by the contract Political Subdivision must be a current CPV member – no cost membership Ability to leverage better prices due to increased volume (saves time and money) 5

Who is Eligible to Join? All governmental units A “governmental unit” is defined by statute as any city, county, town, school district, political subdivision, licensed nonprofit hospital, or any agency of the State of Minnesota, another state or United States government. (Minn. Stat Subd. 1.) See our website to see additional groups that may participate in our program. 6

Procurement Methods Request for Bid (RFB) Best Value: Award to lowest responsive/responsible bidder meeting all terms, conditions, and specifications Request for Proposal Ability to Negotiation Best Value: Award based on price as well as other criteria 7

Request for Bid/Proposal Advertising Required Over $25,000 for goods & non-P/T services Over $25,000 for construction Sealed Bids/Proposals Required Over $50,000 for goods & non-P/T services Over $50,000 for construction Professional Technical Services 8

Authority for Local Purchase (ALP) Delegated to individuals in state agencies by Dept. of Administration Levels of Delegation of Authority $10,000 $25,000/$50,000 Special delegations 9

Small Business Preferences Targeted Groups (TG) Must be certified, eligible, and approved for the specific products and services Up to 6% preference Economically Disadvantaged (ED) Up to 6% preference Except for Construction: up to 4% Veteran Owned (VO) Up to 6% preference 10

Small Business Program Targeted Groups (TG) Small businesses owned, operated and controlled by the following groups: Minorities (A) Asian (I) American Indian (B) African American(E) Alaska Native (H) Hispanic Disabled (D) Women (W) 11

Small Business Procurement Program Economically Disadvantaged (ED) (L) Labor Surplus Area County designated by US Dept of Labor (M) Low Median Income County County designated by MN Planning Certified Rehab. Facility or Extended Employment provider (Minn. Stat. 268A) 12

Commodity Purchase Requirements $0 - $5,000 Minimum of one solicitation to TG/ED/VO within normal purchase area $5, $10,000 Minimum of two solicitations Contact a TG/ED/VO vendor, when reasonably available $10, $25,000/$50,000 Minimum of three solicitations Contact a TG/ED/VO vendors, when available Advertised on MMD’s Website 13

Veteran’s Owned (VO) Preference In accordance with Minnesota Statutes 16C.16, subd. 6a, eligible verified veteran-owned small businesses with their principal place of business in Minnesota may receive up to 6 percent preference when responding to solicitations. The preference is applied only to the first $500,000 of the response.Minnesota Statutes 16C.16 14

Vendor Opportunities Solicitation Announcements are posted on MMD’s website and/or Vendor Portal: Advertised RFBs/RFPs for goods and non-P/T services Construction projects Some Prof/Tech services Updated real-time 15

Professional/Technical Services “Services that are intellectual in character; that include consultation, analysis, evaluation, prediction, planning, programming or recommendation, and result in the production of a report or the completion of a task. Professional or technical contracts do not include the provision of supplies or materials except by the approval of the commissioner or except as incidental to the provision of professional or technical services.” Minn. Stat. § 16C.08 16

Professional/Technical Requirements $0 - $5,000 Contact a minimum of one vendor $5,000 - $50,000 Advertisement required either in State Register and/or on MMD website Other advertising encouraged Over $50,000 Advertisement required in State Register and/or Vendor Portal MMD website or other advertising encouraged Formal RFP 17

Vendor Opportunities – Professional/Technical State Register Advertised RFPs for professional/technical services Published each Monday 18

Who to contact? Agency Procurements Contact agencies directly State Procurements See solicitation postings on MMD’s website Professional/Technical Procurements Contact Agency Also view MMD’s website, Vendor Portal, and State Register 19

Vendor’s Common Errors Error’s when responding to a Solicitation Did not get their response in on time Failed to read the solicitation document Did not sign properly Did not respond to all requirements Taking exception to the terms, conditions, or specifications that make it a material deviation 20

Vendor’s Common Errors (con’t) Did not initial strike-overs properly Pricing in vendor’s response completed in pencil Not providing proper attachments Not providing all the information that was required 21

MMD Website Solicitation Announcements Vendor Management information List of Acquisition Management Specialists Small Business (TG/ED) Program Information On Line Vendor Registration 22

Registrations/Certifications Online Vendor Registration is on MMD’s Website Vendor list used centrally and state wide Vendors can view and change their own information Small Business Procurement Program Certified company info available via MMD website (public) Internal automated purchasing system (state employees) 23

MMD Helpline l Quick Access l General Information l Small Business Program Information l Bid Request/Bid Results Line l How to Register as a Vendor l MMD Switchboard l s 24

Contact Information MMD Helpline Bid Results Available Assistant Director Brenda Thielen Willard; CPPO, CPPB Vendor Management Specialist Sheila Scott

Questions? 26

27

28

29

30