2. Office of Purchasing and Contracts Procurement Outreach Training Level II - Module B Special Purchasing Methods

3. Procurement Steps: Complete Needs Assessment Can it be bought from A Preferred Source? Is the item/service already on an OGS Contract? Are needs met by Competitive Bid? Sole Source* Single Source* Preferred Source OGS Contract Competitive Bid Is your item/service exclusively available from one vendor? Is price the sole criteria for selection, provided contractors satisfy minimum specification? Even though more than one contractor meets our needs, is there substantial basis for selecting a single contractor? Request For Proposals Develop specifications and request proposals from multiple vendors; Choose based on stated Evaluation criteria Invitation For Bid Develop specifications and request quotes from multiple vendors; choose based on lowest price No Yes * Sole and single sources are special processes that require pre- approval of the Office of the State Comptroller. Prior to entering into either a sole or single source transaction, the Office of Purchasing and Contracts must be contacted.

4. Special Purchasing Methods Preferred Sources NYS OGS Contracts MWBE Procurements Single/Sole Source Procurements Confirming Purchases

5. Preferred Sources A Preferred Source is a designated vendor who, in an effort to advance certain social and economic goals, has received special provider status under New York State statute. NYS Correctional Services (CORCRAFT), Industries for the Blind, Industries for the Disabled and the NYS Office of Mental Health are the lead Preferred Source vendors. The first option during the procurement process are Preferred Source vendors. The acquisition of commodities and services from these vendors has been given exemption from statutory competitive procurement guidelines. It is the obligation of each state agency to procure goods and services from a Preferred Source provider whenever possible. Even though the acquisition of commodities and services from these vendors has been given exemption from statutory competitive procurement guidelines the form, function and utility must be taken into account when procuring from a Preferred Source. NYS Correctional Services has first priority with the purchase of commodities followed by Industries for the Blind with Industries for the Disabled and Office of Mental Health being the subsequent choices. OGS approval may be required for the purchase of additional services from a Preferred Source. The Office of Purchasing & Contracts holds an annual Preferred Source Vendor Fair. The Fair allows the vendors to showcase their commodities and/or services to the campus community. Additional information can be found at: http://www.albany.edu/purchasing/state_funded/preferred_source_vendor_sf.html http://www.albany.edu/purchasing/state_funded/preferred_source_vendor_sf.html

6. State OGS Contract The Office of General Services enters into State Wide contracts for a variety of goods and services. If an item is not available from a Preferred Source, the procurement process requires the University to ascertain if the item are on OGS State Contract. When an item is available from an OGS State contract and it meets the form, function and utility that is consistent with our procurement needs the item should be purchased from the centralized contract. The Office of General Services has established centralized Service and Technology contracts which may be used at the option of the Agency. The OGS State Contract directory can be found: http://ogs.ny.gov/BU/PC/Directories.asp http://ogs.ny.gov/BU/PC/Directories.asp

7. Minority and Women-Owned Business Enterprises In an effort to more fully utilize minority and women owned businesses enterprise (MWBE), New York State and the Department of Economic Development have instituted a certification process for minority and women owned businesses. The University’s discretionary threshold for purchases from MWBEs is $200,000. However, the University must still follow all applicable laws and regulations including advertising. The $200,000 discretionary threshold also includes purchases made from NYS Small Businesses and Recycled/Remanufactured items. The University has the below goals for purchases from NYS certified MWBEs: Certified MWBEs can be found by searching the DED database located at: http://www.nylovesmwbe.ny.gov/cf/search.cfm http://www.nylovesmwbe.ny.gov/cf/search.cfm The Office of Purchasing & Contracts holds an annual MWBE Vendor Fair. The Fair allows the vendors to showcase their commodities and/or services to the campus community. Procurement TypeMBE GoalWBE Goal Construction10%6% Construction Related Services10%8% Non-Construction Services14%12% Commodities11%8% Total12%8%

8. Single and Sole Source Procurements Single Source procurement is defined as one where two or more vendors supply the product or service however, based on reasons such as expertise, availability or warranty issues, one vendor is chosen over the others. The rationale of the selection process must be documented and becomes part of the procurement record. Sole Source procurement occurs when only one vendor is capable of supplying the product or service required. The rationale of the selection process must also be documented and becomes part of the procurement record. Sole and single sources are special processes that require pre- approval of the University Controller and in some cases, the Office of the State Comptroller. Prior to entering into either a sole or single source transaction, the Office of Purchasing and Contracts must be contacted.

9. Confirming Purchases Except under certain instances, confirming purchases are illegal. At the very least, they are considered poor business practice and require additional scrutiny by the Office of Purchasing and Contracts and the University Controller. A confirming purchase is a purchase commitment is without following the required guidelines and only after the order is placed is a requisition submitted to simply confirm that the order has been placed. Commitments made directly to vendors without following the purchasing process may violate a Federal or sponsor regulation or requirement. In the case of state-funded transactions, this violates NYS Finance Law. Purchases made outside of the purchasing process may become the liability of the person making the commitment. Under certain events, most notably that of an emergency repair, there may be instances where a confirming purchase is needed. (For example, a technician has been called to the site to fix a failed boiler after hours and discovers that a new part is needed. Rather than following the normal purchasing process the vendor replaces the item and submits a bill for it.). There is no suspension of rules in an emergency. An official emergency must be formally declared by the Campus designee and an advertising exemption must be obtained from OSC. A procurement process must follow with a justification of the emergency purchase. Before committing personal resources, please contact the Office of Purchasing and Contracts.

10. In closing…. There are many levels of procurement, with unique requirements and regulations. Thank you for taking time to review this information. Additional training presentations can be found at our website at www.albany.edu/purchasingwww.albany.edu/purchasing