APSPM Review Nancy M. Davis, CPPO, VCO DGS/DPS Procurement Management Account Executive Public Procurement Forum December 8, 2003

Agenda Review changes to the APSPM issued through Procurement Information Memoranda (PIMs) since the 2001 Forum. PIMs , 011, 012, 013, 014, & 015 are covered (except minor corrections). Slides paraphrase actual language. Answer questions about any other section of the APSPM. PIM /14/02 PIM /1/02 PIM /23/02

Organization of Manual Preface, Table of Contents, Introduction Authority & Responsibility Sources of Supply Policies, Procedures, Guidelines Procurement Methods 5, 6, 7, 8, 9 Contract Administration Appeals & Disputes Surplus Property Support & Assistance Electronic Procurement Appendices, Index Agency Procurement and Surplus Property Manual

APSPM & PIMs on eVA website The APSPM and each chapter are on under Reports & Documents, Tools OR click Buyers, Tools on the portal page. The “whole APSPM” and each chapter are updated when PIM changes are made. Update the manual by saving the Word file then printing replacement sections there. Search the “whole APSPM” on-line.

Introduction PIM adds a paragraph on the transfer of the purchase of information technology goods and services to the Virginia Information Technologies Agency, granted under § of the Code of Virginia, effective 7/1/03. References made to DIT and DTP throughout the APSPM are no longer valid.

1 - Authority & Responsibility 1.2 e: The agency head may designate, in writing, signature authority for sole source procurements: Under $50K to the chief purchasing officer or a direct report to the agency head. Over $50K to a direct report. PIM

2 - Sources of Supply 2.1 b, PIM : VCE provided a complete description of products/services for VCE Digital Works (formerly CORPRINT). 2.1 c, PIM : DBVI provided updated the listing of their products/services. 2.1 c (1) a, PIM : clarifies that Contract Office Services provided by DBVI does not include temporary services.

3 - General Procurement Policies 3.2c, PIM , Specifies the bond forms to be used for construction contracts over $100K - on 3.5, PIM , Change orders are required for cumulative changes to contracts or purchase orders over $500.

3.7 – Cooperative Procurement Allows additional public bodies not named in a solicitation to purchase from another public body’s contract if the solicitation specifies that the procurement is being conducted on behalf of other public bodies AND the issuing public body modifies the contract in writing with concurrence from the contractor to add the public body. PIM

Renamed the section to include “Small” Solicitation requirements: Over 5K - 15K – 6 sources, incl. 4 SWAMs $15K - $50K – 8 sources, incl. 6 SWAMs Over $50K – 9 sources, incl. 7 SWAMs Over $100K – solicitations to include a requirement that bidders/offerors include strategies to ensure SWAMs are given subcontracting opportunities. PIM – Small, Women-Owned & Minority Businesses

3.12 – Nondiscrimination No discrimination because bidder/offeror may employ ex-offenders (unless written determination that employing ex-offenders is not in the best interest of COV). 3.14b, Preferences – wording change e, Added a preference for Recycled Oil and Recycled Antifreeze. PIM PIM

Subsequent/Additional Bid/Proposal for Same Procurement 3.16c allows additional bids/proposals by same bidder/offeror on same procurement. 3.18, PIM , Publicly Posted Notices: Solicitations, addenda & awards shall be posted on eVA in VBO over $30,000 and include electronic access to the solicitation. Procurements under $30,000 may be posted on eVA or other locations. PIM

3 - Other Policy Changes 3.24, PIM : Tie Bids modified wording; still allows award to VA firm in case of tie bid. 3.25, PIM : Allows Internet ordering outside eVA if excluded from purchasing through eVA (14.9b) up to 5K. 3.26, PIM : Adds Prohibited Contracts, if nongovernmental source fails to collect and remit sales tax. Exceptions.

Annex 3-B Summary of Procurement Policies updated to show new solicitation requirements. PIM

4 - General Procurement Guidelines & Planning 4.2, PIM , clarifies that the expected trade-in value of equipment should not be considered when determining the anticipated value of a contract. 4.22d, PIM , on consultant services, requires a determination of Return on Investment (ROI) as a part of the criteria for awarding consulting services. (Required by 2003 Acts of Assembly, Chapter 1042, § c)

4.27, Document file on samples disposition. 4.29, VBO Ad instructions on eVA website. 4.34, Outdoor Light Fixtures must be for shielded unless exempted by DPS. Does not apply to VDOT until 7/1/04. Annex 4-G, Employee or Contractor? Factors to Consider – website of IRS publication provided. 4 - General Procurement Guidelines & Planning PIM

5 - Small Purchases PIM Competitive requirements changed: Over 5K - 15K – 6 sources, incl. 4 SWAMs $15K - $50K – 8 sources, incl. 6 SWAMs Over $50K – 9 sources, incl. 7 SWAMs 5.5c - If developing an unsealed written solicitation under $15K, solicit 6 valid sources, then the guidance for unsealed solicitations over $15K to $50K should be followed (see 5.6 or 5.7). Flowcharts in Chapter 5 Annexes - updated.

6 - Competitive Sealed Bidding 6.2 e, PIM , changed the solicitation requirement to 9 valid sources, including a minimum of 7 SWAMs, if available. Annex 6-A flowchart was updated and other Chapter 6 Annexes pertaining to the changed solicitation requirement.

7 - Competitive Negotiation 7.2 g, PIM , changed solicitation requirement to 9 valid sources, including a minimum of 7 SWAMs, if available. Annex 7-A flowchart was updated and other Chapter 7 Annexes pertaining to the changed solicitation requirement. Annex 7-B, Step IV, A. 2. d. – Model RFP suggests incorporating definitions of terms must, shall, should, may in solicitation.

8 - Sole Source Procurement 8.1, allows approval of sole source (SS) purchases for non-technology goods and services to $50,000 to be signed by the agency head or designee which may be the chief purchasing officer or a direct report. Use SS approval request form in 8-C. 8.2, allows SS determination for non-technology goods and services over $50,000 to be signed by the agency head or designee which shall be a direct report prior to sending to DPS for approval. PIM

8 - Sole Source Procurement 8.5 & 8.6, PIM , changed the posting requirement for sole source awards to $30,000. Award notices must be posted on the eVA website. All Chapter 8 Annexes were changed in PIMs or

9 - Emergency Procurement 9.3 a, PIM deleted reference to Year 2000 date change and in b, changed the posting requirement for emergency notices to be posted on eVA over $30,000. PIM revised the flowchart in Annex 9-A.

10 - Contract Administration, Modifications and Change Orders: 10.12, PIM , moved most of this section to 3.5 under Contract/Purchase Order Modification Restrictions indicating when an official change order is required and which form to use to document modifications, changes, or cancellation.

11 - Appeals and Disputes No changes since CHANGES

12 - State & Federal Surplus Property No changes since CHANGES

13 - DGS/DPS Support and Assistance Annex 13-C, no changes to the staff listing in the APSPM since 6/14/02. Please note that the most up-to-date listing of DPS staff is found on the eVA website. Annex 13-D, The Exemption Request form, PIM was modified to indicate Director (or designee) for Procurement sign off.

14 - Electronic Procurement 14.4 a & b, PIM requires purchasing through eVA for mandatory and optional contracts, mandatory sources, and pricing agreements with full compliance by 7/1/ , PIM allows use of Quick Quote in eVA up to $30,000 and, 14.5 b changes the solicitation requirement for eMall responses over $5K to $15K to 6 valid sources including 4 SWAMs.

14 - Electronic Procurement 14.5 e changes Quick Quote (QQ) solicitation requirements for responses over $5K to $15K to 6 valid sources including 4 SWAMs f changes Quick Quote (QQ) solicitation requirements for responses over $15K to $30K to 8 valid sources including 6 SWAMs. PIM

14 - Electronic Procurement 14.5 g, PIM , prohibits use of QQ over $30,000 unless emergency. 14.6, PIM , modifies when a change order in eVA must be issued: Process according to 3.5 and (not required if change is less than $500) except a change order must be issued whenever a supplier may request it to ensure the supplier’s eVA transaction fee is accurate or as may be required by internal policy.

14.7, PIM advises that documentation in eVA is acceptable to support the why, who, what, when, where and how of purchase transactions and receiving reports. Paper documents need not be printed and maintained. If transaction cannot be electronically documented, cross-reference noting where other documents reside Electronic Procurement

Use of eVA and Exclusions 14.9, PIM , modified the use of eVA to coincide with the directive of the Governor’s Chief of Staff’s memo of 5/16/02: Agencies with ERP systems can process in their ERP but must send POs through eVA portal. Agencies without ERP systems can use eVA as their total procurement and order delivery system.

Use of eVA & Exclusions, 14.9 b PIM modified the Exclusion list and eliminated commodities “under review.” PIM describes the exempt categories that must be used if placing an order through eVA for one of the exempt commodities – R02 – Routine Exempt S02 – Sole Source Exempt E02 – Emergency Exempt P02 – Proprietary Exempt

PIM clarifies the Medical (Health Care) Service exclusion which applies to individuals licensed not procurements through a temporary agency. An exclusion for Financing was added, when goods/services procured from one source are being financed by another (third party) source. The financing exclusion does not apply to leases. Use of eVA & Exclusions, 14.9 b

PIM clarifies the Grant exclusion. This exclusion applies to grants or research contracts provided by the agency to public bodies or non-profit organizations. NOTE that funds received FROM a grant to your public body are NOT exempt from purchasing the needed goods/services through eVA. Use of eVA & Exclusions, 14.9 b

Vendor Registration Requirement, PIM modified wording of the registration requirement. A TPA is required of all vendors who either list a catalog, punchout catalog, or index page in the eMall.

Appendix A – New Definitions Affiliate Business Minority-owned/controlled business Must, Shall Shall, Must Should, May SWAM Woman-owned/controlled Business Written; writing; writings; in writing

Appendix B - Section I, General T’s & C’s A. Vendors Manual: PIM inserted reference to the procedure for filing contractual claims (VM § 7.19). T. Insurance: PIM , under the Profession/Service portion, the limits under Health Care Practitioner were increased to $1,700,000 (effective 7/1/03) and the “When Used” guidance was modified.

W. Nondiscrimination of Contractors: Inserts nondiscrimination in employment of ex- offenders. X. eVA Business-to-Government Vendor Registration: Removed paragraph on the 1% transaction fee moratorium to vendors. “When Used” guidance was modified to indicate use of this term except for commodities/ services excluded in 14.9 or a. Appendix B - Section I, General T’s & C’s PIM

5. Additional Users: This clause replaced the Authorized Users clause. Additional users may be added to existing contracts: If this clause is in the solicitation If the contract is modified in writing If it is agreeable to the contractor Appendix B - Section II, Special T’s & C’s PIM

Appendix C – Record of Changes & Suggested Changes Form , 7/1/ , 8/2/ , 1/13/ , 3/30/ , 5/5/ , 7/1/ , 12/20/ , 7/1/ , 10/9/ , 2/14/ , 7/1/ , 7/23/ , 7/1/ , 11/12/ , 11/21/03 Use form on back to suggest changes Record PIMs into existing 1998 APSPM.

Summary Discussed organization of the manual. Highlighted changes made through PIMs issued since the 2001 Forum. Answered questions on specific topics and paragraphs. Contact me with any additional questions, areas needing clarification, interpretation, or explanation: Thanks for participating, Nancy