1. Office of the Chief Financial Officer Office of Management & Administration Office of Contracts
Small Purchasing
October 2010
4/10/2019

2. CHANGES TO PASS
o Requisitioners may no longer enter a vendor but can put in recommended vendor as a comment
o ALL procurements under $100K must be awarded to a small business enterprise, unless…Waiver is authorized by Contracting Officer
4/10/2019

3. Workshop Goals
o Know the statutory and regulatory requirements governing small purchases
o Understand the documentation and procedures necessary to execute a successful RQ/PO
o Understand the roles and responsibilities of the Office of Contracts and Program Office Staff
Provide your feedback on the OCFO small purchasing process
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4. Agenda o Overview of Small Purchases o Documentation Requirements
o LSDBE/CBE Requirements
o Sole Source/Single Available Source
o PASS process changes
o YOUR CONCERNS/QUESTIONS
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5. The Rules Procurement Practices Act—PPA
DC Municipal Regulations---DCMR
CFO Order December 4, 2008
DSLBD statutory requirements
4/10/2019

6. Cardinal Rule No. 1 Unauthorized Procurements
Goods and/or Services shall not be delivered and/or performed without first having a valid purchase order in place.
Consequences –
Anti-deficient Procurements
Employee Discipline
Repayment to Government
Garnishment of Wages
Court Costs for Vendor Lawsuits
4/10/2019

7. Cardinal Rule No. 2
Three (3) written quotes are required for ALL purchases greater than $10,000
Requisitioners are required to submit at least one (1) written quote for purchases under $10K
All quotes must be attached to the requisition or they shall be denied
4/10/2019

8. Submitting Requests
Submitted at least 10 to 15 business days prior to need-by-date (30 days for those requesting LSDBE waiver)
ATTACH:
Documentation: Quotes, 3 for purchases over $10K, 1 for purchases under $10K, sole source/single available source justification
When in doubt—ATTACH to the RQ
Incomplete requisitions will be denied – Must identify Agency and Fiscal Year in RQ Title
4/10/2019

9. Where to find LSDBE quotes
Website is located at
Office of Local Business Development
DC Supply Schedule - See handout
Where to Find Office of Contracts
Performance Evaluations are important for these purchases
Provides tracking mechanisms for future purchases
4/10/2019

10. Attachments Estimated pricing / Independent Government Estimate (IGE)
Recommended Vendors
Maintenance Agreements
Registration Forms
Statement of Work (SOW)
4/10/2019

11. Mandatory Supply Sources
Determined by Office of Contracts
LSDBE/CBE Statute requires ALL purchases under $100K shall go to LSDBE/CBE UNLESS Waiver is authorized by Contracting Officer
4/10/2019

12. Approvals and Comments
The block “Include comment and attachment on purchase order” should only be checked by the procurement office
Read comment box for any purchase order returned or denied before re-approving
When in doubt—CALL Contracts after reading comment box
4/10/2019

13. Purchase Order
The Contracting Officer and/or Purchasing Agent makes final decisions in selecting appropriate vendor
Factors include: Mandatory sources of supply (LSDBE, DCSS), lowest price or best value
Purchasing Agent will ensure that the vendor receives the Purchase order
4/10/2019

14. Statement of Work (SOW) Defined
A statement of work tells who is making the purchase, what is being bought, what the procurement will achieve, the population to be served and the range of services to be provided.
4/10/2019

15. Creating a Statement of Work
Why is a SOW Important?
This is the only method of contractually guaranteeing a
level of service for the District when creating a Purchase
Order.
PO = payment to vendor
A PO without a SOW attached = payment
regardless of type of service received
Especially important for LSDBE vendors!
4/10/2019

16. Elements of a Statement of Work
The Elements of a SOW are:
Who
What
Why
When
Where
How
4/10/2019

17. SCOPE = WHAT KIS – “Keep It Simple” - Clearly define your need
Define ALL technical terms & Govt. Acronyms
Describe CLEARLY any & all directions to the contractor to perform tasks, specifications of reporting requirements or a description of deliverable products
4/10/2019

18. DELIVERABLES – WHEN & WHERE
If the SOW orders data/reports, have all
descriptions of that data (e.g., format and
content) been provided?
Does the SOW establish a delivery schedule?
4/10/2019

19. TECHNICAL REQUIREMENTS - HOW
Are the tasks outlined in some logical order?
Is it CLEARLY DEFINED – how can the vendor price this out?
Are contractor responsibilities CLEARLY DEFINED?
How do we monitor? How will the RECEIVER
know if the contractor has done its job?
4/10/2019

20. BACKGROUND - WHY Why does your office/agency need this?
For example: OCFO/OMA/Office of Contracts needs temporary scanning support to create an electronic database of FY 07 – FY 09 files to comply with new policies based on internal control directives.
4/10/2019

21. SOW – Example
What we normally see: OCFO/OMA/Office of Contracts needs temporary help to scan documents into an electronic database.
What we should see: The Office of the Chief Financial Officer (OCFO), Office of
Management and Administration (OMA), Office of Contracts (OC) needs temporary
help to scan documents into an electronic database. OC needs temporary
scanning support to create an electronic database of FY 07 – FY 09 files to comply
with new policies based on internal control directives. The OC needs 2 full-time
Temporary staffers for three weeks beginning 10/1/ /22/ The staffers
are expected to work eight-hour shifts from 9 a.m. – 5: 30 p.m. They will report to
the Director of the OC, Joe Giddis. They will maintain a daily log of each contract
file which has been scanned and confirm with Mr. Giddis prior to signing out
every day.
4/10/2019

22. Key Points Is it clear? Check for proper grammar? Spell check?
4/10/2019

23. LSDBE/CBE--NEW
DC Statute and requires that each agency shall set aside every contract (PO) of $100K for SBE
Exceptions: Office of Contracts… determines in writing that there are not at least 2 responsible certified SBE OR cost to District will be more than 12% of reasonable cost to District.
4/10/2019

24. SOLE SOURCE CHECKLIST – SMALL PURCHASES
How to write a Justification
4/10/2019

25. MAIN THING YOU NEED TO KNOW ABOUT PPA/DCMR!!!!
Does the justification clearly explain why this vendor is the ONLY source to provide the need?
Out of time, used vendor last year, historical knowledge DO NOT qualify as a justification!
4/10/2019

26. Acceptable justifications for sole source under the PPA/DCMR:
Only one available source
The contract is for the purchase of real property
The contract is with a vendor on the GSA or DC Supply schedule
Emergency procurement where only one proposal was received (Only the mayor can declare an emergency)
4/10/2019

27. WHEN PROPRIETARY SOFTWARE
The justification must demonstrate one of the
following:
The requirements cannot be modified to allow for a competitive procurement
It is in the best interest of the District to use the sole source procurement
The proposed contractor is the only source
4/10/2019

28. Last Step before It can be Approved!
Determination & Finding (D&F) been created by Office of Contracts & given to program office to be signed off on by the Agency Head
Agency Head = Deputy CFO, e.g. Lasana Mack, Robert Ebel, Paul Lundquist, Steve Cordi
confirmation is Ok.
4/10/2019

29. Receiving Report
Requisitioner should go into receiving tab within one week of receiving good or service
Only receive what has been delivered
Invoices must be attached to the receiving report if the vendor is going to get paid
Call Financial Operations and give notice that Invoice has been attached to receiving report
NO MORE “MAY” INVOICES IN “SEPT”!
We should not have to discuss receiving of a May invoice on 9/30!
4/10/2019

30. SUMMARY LSDBE/CBE requirements
Goods and/or Services shall not be delivered and/or performed without having a valid purchase order in place
Three (3) written quotes are required for ALL purchases greater than $10,000
Attachments are mandatory or RQ shall be denied
4/10/2019