1. The Threshold Has Changed: Now What Should I do? Presented by Jan Giffin, CPPO, CPPB, VCO Procurement Management Account Executive, DGS/DPS

2. Small Purchase Procedures Virginia Public Procurement Act (VPPA) allows public bodies to establish small purchase procedures, if adopted in writing, not requiring the use of competitive sealed bidding or competitive negotiation for single or term contracts not expected to exceed $100,000. Small purchase procedures shall provide for competition wherever practicable. (Code of Virginia, § 2.2-4303G)

3. Small Purchase Procedures For State Agencies this is done by DGS/DPS in the Agency Procurement & Surplus Property Manual (APSPM). Agencies may develop internal procedures that may be more restrictive than the APSPM but NOT less restrictive.

4. Delegated Authority Localities and Authorities Are governed by the Virginia Public Procurement Act (VPPA) Must adopt their own small purchase procedures in writing and are not governed by the Agency Procurement & Surplus Property Manual (APSPM)

5. Delegated Authority State Agencies have a general delegation of $50,000 – Non-technology Goods & Printing* Unlimited – Services * Select state agencies have requested through DPS an increase in delegation for non-technology goods and/or printing varying from 100K to unlimited

6. Agency Procurement & Surplus Property Manual (APSPM) Preface The APSPM is published under the authority of Section 2.2-1111 of the Code of Virginia, and establishes the policies and procedures to be followed by State agencies and institutions in fulfilling procurement and related logistical responsibilities within their delegated limits. DPS will from time to time issue Procurement Informa- tion Memorandums (PIMs) which are effective until included in a revision to the Manual or rescinded.

7. Small Purchase Competitive Requirements PIM-021 issued October 2, 2006, incorporates changes resulting from Executive Order 33 – Procurements up to $50,000 shall be set-aside exclusively for DMBE-certified small businesses PIM-029 issued in October 2011 incorporates changes to the VPPA that increases small purchase threshold from $50,000 to $100,000

8. Small Purchase Competitive Requirements Procurements up to $50,000 shall be set-aside exclusively for DMBE-certified small business participation (APSPM 5.1 & 3.10g) Procurements over $50,000 may be set-aside for DMBE-certified small business participation

9. Small Purchase Competitive Requirements Up to $5,000 Over $5,000 to $100,000 Solicit 1 DMBE-certified small business -If set-aside, Solicit 4 DMBE- certified small businesses, or -If not set-aside, Solicit a minimum of 4 sources including 2 DMBE-certified small businesses if available

10. Small Purchase Competitive Requirements APSPM 3.10g Set-Asides – (1) Procurements up to $5,000 shall be set-aside exclusively for DMBE-certified small businesses. If prices do not appear to be fair and reasonable the agency shall document the procurement file to that effect, including stating the basis for the determination, and then additional quote(s) shall be obtained from at least one additional DMBE- certified small business, if available…..

11. Small Purchase Competitive Requirements APSPM 3.10g Set-Asides – (2) Procurements over $5,000 and up to $50,000 shall be set-aside for DMBE-certified small businesses unless there is not a reasonable expectation that the agency or institution will receive at least two competitive bids or offers from DMBE- certified small businesses and the agency documents the procurement file that the procurement does not qualify for a set-aside. All set-aside procurements shall designate in the title of the solicitation that the procurement is set-aside for small businesses…..

12. Small Purchase Competitive Requirements APSPM 3.10g Set-Asides – (3) Procurements over $50,000 may be set-aside for DMBE-certified small businesses, in whole or in part, when there is a reasonable expectation that the agency or institution will receive at least two competitive bids or offers from DMBE-certified small businesses.

13. Small Purchase Competitive Requirements Determine value of the contract - Consider total of initial term & all possible renewal periods. – 1 year term contract expected to be $6,000 – 4 possible renewal periods = $24,000 value TOTAL VALUE = $30,000 (Set-Aside) – 1 year term contract expected to be $15,000 – 4 possible renewal periods = $60,000 value TOTAL VALUE = $75,000 (Optional Set-Aside)

14. Small Purchase Competitive Requirements APSPM 5.6 - Unsealed Bidding APSPM 5.7 – Unsealed Proposals Use of written informal solicitation – Quick Quote – Unsealed Bidding – Unsealed Proposals – Unsealed Best Value Acquisition

15. Small Purchase Competitive Requirements APSPM 5.6 - Unsealed Bidding – Quick Quote shall be used to solicit bids or quotes for goods and nonprofessional services over $5,000 up to $100,000 – Unsealed bidding may be used in lieu of QQ for complex procurements if the agency expects to issue addenda.

16. Small Purchase Competitive Requirements APSPM 5.6 - Unsealed Bidding – Solicitations must be open for at least three (3) business days (24 business hours) – Reasonable time to respond based on requirements – Include General terms and conditions – Include Special terms and conditions (Award Clause) – Specify the correct commodity code(s) to maximize visibility

17. Small Purchase Competitive Requirements APSPM 5.6 - Unsealed Bidding – eVA VBO advertising is required (include electronic version of solicitation) – Use of Quick Quote meets the posting requirement – Bids may be opened and evaluated upon receipt – All responses must be received at the designated location by the date and time stated in the solicitation – Late bids shall not be considered

18. Small Purchase Competitive Requirements APSPM 5.6 - Unsealed Bidding – Solicitation should include: Cover sheet Item description or Scope of Work Pricing Schedule – Award to the lowest priced Responsive & Responsible bidder – Award notice to be posted on eVA VBO

19. Small Purchase Competitive Requirements APSPM 5.6 - Unsealed Bidding – Quick Quote – Resulting order must be processed through eVA – When an award action is taken or a “no award” decision is made, the agency shall update the QQ to reflect the appropriate status. – Award notice not required to be posted on eVA VBO

20. Small Purchase Competitive Requirements APSPM 5.7 – Unsealed Proposals – Goods or nonprofessional services up to $100,000 may be procured using the Unsealed Proposal process (see Annex 5-F) Use of written informal solicitation – Unsealed Proposals – Unsealed Best Value Acquisition

21. Small Purchase Competitive Requirements APSPM 5.7 - Unsealed Proposals – Solicitations must be open for at least three (3) business days (24 business hours) – Reasonable time to respond based on requirements – Include General terms and conditions – Special terms and conditions (Award Clause) – eVA VBO advertising is required (include electronic version of solicitation)

22. Small Purchase Competitive Requirements APSPM 5.7 - Unsealed Proposals – Offers may be opened and evaluated upon receipt – All responses must be received at the designated location by the date and time stated in the solicitation – Late proposals shall not be considered

23. Small Purchase Competitive Requirements APSPM 5.7 - Unsealed Proposals – Written determination for the use of competitive negotiation is not required – Solicitation should include: Cover sheet General description of what is being sought Evaluation Criteria and Weights

24. Small Purchase Competitive Requirements APSPM 5.7 - Unsealed Proposals – In lieu of an evaluation committee, the buyer or end user may solely evaluate and rank offers – After evaluation, negotiations shall be conducted – Document negotiations – Select offeror making the best proposal – Place order through eVA – Post award on eVA VBO

25. When to Use Unsealed Best Value Acquisition Use best value when it is essential to evaluate and compare factors in addition to quality or price in order to select the most advantageous offer. – Provides more flexibility – Cost improvements – Product quality improvement – Allows trade-offs

26. Unsealed Proposals vs. Best Value Acquisition Similarities – Evaluate criteria first, except price – Consider price against trade-offs and benefits – Buyer or end user may evaluate – Must negotiate – Award to the responsible offeror with best value offer Differences – Criteria is of same importance or may state in order of decreasing importance – Rating scoring method Adjectival Color Numerical – Go/No-Go & eliminate ones not meeting mandatory requirements

27. Questions? Thank You!