1. Prepared by Andrée M. Cohen, Purchasing Administrator CITY OF NEW ORLEANS 2012 PROCUREMENT & PURCHASING PROCESS TRAINING CITY OF NEW ORLEANS 2012 PROCUREMENT & PURCHASING PROCESS TRAINING

2. General Knowledge of City Charter Requirements, Laws, Executive Orders and Policy Guidance For The Procurement and Purchasing of Materials, Supplies, Equipment, Construction, Public Works, Professional Services, and Non-Professional Services Step By Step Procedures Ability to Properly Procure and Purchase Goods and Services Within This Framework Understand The Risks of Improper Procurement and Purchasing After The Fact is TOO LATE! When In Doubt, ASK A Professional COURSE OBJECTIVES

3. PROCUREMENT PRACTICES PURCHASING ETHICS 1.PROMOTE COMPETITION 2.OBTAIN MAXIMUM VALUE 3.AVOID UNETHICAL PRACTICES AND APPEARANCE Practices In Relationships, Actions And Communications Preclude From Showing Favoritism Procure and Purchase without prejudice Never solicit or accept gratuities or prejudicial discounts, favors or services from your present or potential contractors and suppliers Refrain From Providing Preferential Treatment

4. PROCUREMENT (A Noun) The METHOD Used TO OBTAIN Materials, Supplies, Equipment, Services Or Construction By Purchasing, Leasing, Exchange Or Otherwise Procurement Methods include 1.Request for Proposals (RFPs), 2.Request for Qualifications (RFQs), 3.Formal and Informal Invitations to Bid, etc. PURCHASE (A Verb) To PLACE AN ORDER By Paying Money Or Giving Other Valuable Consideration… after proper procurement ALL PURCHASES… MUST BE PROPERLY PROCURED PRIOR TO SUBMITTING ORDERS OR MAKING PURCHASES PROCUREMENT OR PURCHASING?

5. REQUISITIONS AND PURCHASE ORDERS *Requisitions Encumber Funds in the City Financial Systems

6. LINE ITEM DESCRIPTIONS CARRY OVER FROM A REQUISITION TO BIDS, PURCHASE ORDERS & CHANGE ORDERS PURCHASE ORDERS City of New Orleans Code of Ordinances, Part II, Chapter 70-420 and 421 - Movables. Sec. 70-420. - Sale to city without purchase order forbidden Sec. 70-421. - Sales unauthorized and not to be paid. IT IS THE LAW

7. REQUISITION PURCHASING AND ORDERING REQUIREMENTS Purchase Order

8. *NO MARKET EXISTS, NO FUNCTIONAL EQUAL – CHARTER DEFINES AS UNIQUE AND NON-COMPETITIVE TYPES OF COMPETITIVE PROCUREMENTS

9. ALL PROCUREMENT OF ALL PROCUREMENT OF Materials, Supplies, Equipment, Professional Services, Non-Professional Services, Construction, And Public Works MUST BE SELECTED THROUGH A COMPETITIVE PROCESS PROCUREMENT & PURCHASING CHARTER REQUIREMENTS WHETHER BY WHETHER BY Purchase, Lease, Exchange, Or Otherwise CITY DEPARTMENTS, BOARDS, AGENCIES & COMMISSIONS City Charter Section 6-308. Contracts. (5) (a) Except in the purchase of unique or noncompetitive articles, competitive bids shall be secured before any purchase, by contract or otherwise, is made or before any contract is awarded for construction, alteration, repair or maintenance or for the rendering of any services to the City, other than professional services, and the purchase shall be made from or the contract shall be awarded to the lowest responsible bidder after advertisement prescribed by ordinance or by applicable state or municipal law

10. $15,000 OR LESSMORE THAN $15,000 CONTRACTREQUIRED LEGAL APPLICATIONS EXEMPT FROM COMPETITION PER CITY CHARTER CITY ORDINANCE SETS DOLLAR THRESHOLDS CITY CHARTER, CITY ORDINANCE, EXECUTIVE ORDER & POLICY REQUEST FOR PROPOSALS REQUEST FOR QUALIFICATIONS DOLLAR THRESHOLDS

11. REQUEST FOR PROPOSAL (RFP) REQUEST FOR QUALIFICATIONS (RFQ) PROCESS LEGEND: Black Represents Department Responsibilities Red Represents Purchasing Bureau

13. DOLLAR THRESHOLDS MOVABLES & NON-PROFESSIONAL SERVICES INVITATIONS TO BID *ONE-TIME NON-RECURRING PURCHASES OF $1,000 OR LESS ARE CONSIDERED NON-COMPETITIVE AND DO NOT REQUIRE BID PROCESS

14. MOVABLES & NON-PROFESSIONAL SERVICES BID PROCUREMENT AUTHORIZATION FORM

15. INFORMAL BIDS FOR MATERIALS, SUPPLIES, EQUIPMENT, AND NON-PROFESSIONAL SERVICES INFORMAL BID QUOTE FORM

16. COMPLETE Complete an Informal Bid Quote Form Detailed Written Work Description Obtain Not Less Than 3 Quotes Written Confirmation of All Quotes Post Requisition Quote Online (City Website), Email, Fax, Telephone Quotes Received Online Via BuySpeed Do Not Require Written Confirmation. A no bid response is considered a valid quote under $10k. SELECTION Vendor Quoting Lowest Price Exception, With Justification and Purchasing Bureau Approval Attach Quotes and Signed Form & Submit to Your Buyer Obtain a Purchase Order Prior to Ordering and Making Purchase Complete Purchase by Approved Purchase Order Order and Make Purchase or Lease INFORMAL BID PROCESS

17. FORMAL BID PROCESS MATERIALS, SUPPLIES, EQUIPMENT, NON- PROFESSIONAL SERVICES Determine Need Detailed Written Work Description Obtain CAO Bid Authorization Enter Requisition in AFIN/BuySpeed If Requisition in AFIN Enter 0 Requisition in BuySpeed for Conversion to Bid Submit to Purchasing -Advertises & Releases Bid -Conducts Pre-Bid Meeting if Required -Conducts Public Bid Opening -Tabulates Bids -Determines Responsiveness -Makes Recommendation to Department Determines Responsibility Recommendation to Purchasing -Awards Bid -Issues Rejections/Cancellations Contract According to CAO Policy Memorandum 122(R) Department Provides a Link to the ECMS Contract -Bureau of Purchasing Verifies Requisition to the Copy of Contract -Purchase Order Issued Notice To Proceed Issued For Work To Begin HOW TO $20,000 OR MORE SELECTION Legend: Department Action -Purchasing Action

18. ALL PROJECTS AND PURCHASES

19. CONSTRUCTION & PUBLIC WORKS INCLUDES THE: Operation Erection Construction Alteration Improvement Or Repair Any Public Facility Or Immovable Property Owned, Used, Or Leased

20. LESS THAN $150,000 INFORMAL BID $150,000 OR MORE FORMAL BID WRITTEN SPECIFICATIONREQUIRED BID INVITATION ADVERTISING INFORMAL REQUIRED ONLINE REQUIRED FORMAL COMPETITIVE BIDSREQUIRED FORMAL VIA PURCHASING BONDS INSURANCE CONTRACT DBE OTHER REQUIRED BASED UPON DOLLAR THRESHOLDS REQUIRED CONSTRUCTION & PUBLIC WORKS BID THRESHOLDS

21. CONSTRUCTION & PUBLIC WORKS BID PROCUREMENT AUTHORIZATION FORM

22. In order to receive payment from the City, Vendors must be registered in the City Financial Systems AND POSSESS AN AUTHORIZED PURCHASE ORDER. 1.AFIN registration by filling in AFIN Vendor Registration Form and submitting completed form to Purchasing 2.BUYSPEED provides Vendor registration online thru City website INFORMATION AND INSTRUCTIONS: CONTACT PURCHASING (504) 658-1550 VENDORS, REGISTRATION, PAYEE INFORMATION

23. AFIN VENDOR FORM

24. 7.Department Receives Goods/Services 8.Department Receipts Order in BuySpeed or AFIN i.Can Make Adjustments to Receipt 9.Provides to Accounts Payable For 3-Way Match i.Purchase Order ii.Receipt of Goods and Services iii.Invoice 10.Vendor Paid 1.Determine Need i.Obtain Price ii.Ensure Available Funding 2.Enter Requisition i.Director Approval ii.Budget Approval iii.Finance Approval 3.Purchasing Receives Requisition i.Ensures Properly Procured ii.Funding Available 4.Procurement Process 5.Purchase Order Issued 6.Department Places Order PURCHASING PROCESS

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