New Procurement Rules Training

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New Procurement Rules Training. Purchases Greater Than $25,000. Why do we have new procurement rules?. Law that renewed mayoral control of the schools gave the Panel for Educational Policy (Panel) the authority to approve (among other things) most of the DOE’s contracts - PowerPoint PPT Presentation

Transcript of New Procurement Rules Training

  • New Procurement Rules TrainingPurchases Greater Than $25,000

  • 3/30/2010*Why do we have new procurement rules?Law that renewed mayoral control of the schools gave the Panel for Educational Policy (Panel) the authority to approve (among other things)most of the DOEs contractsa new procurement policy that met specific requirements stated in the Law

  • 3/30/2010*Many processes are the same, but some things are newNew procurement processesEmergency purchasesDemonstration projectsInnovative procurement methodsNo more sole source for servicesMust use Negotiated Services (fka Exception to Bid or Committee on Contracts) when there is only one source for services

  • 3/30/2010*Whats new (contd)Request for Authorization - New RequirementsNow required for all procurements exceptSimplified ProcurementAll other procurements $25,000 or less ($15,000 if competitive sealed bidding)Educational Investment CaseRequired for technology, software, consulting or technical services contracts >$1 million

  • 3/30/2010*Whats new (contd)Educational Investment Case (contd)Describes the need for the project, how it fits within educational objectivesKey risks/dependenciesCost benefit analysisClient must provide information needed to completeSee Section 2-07 (c) for detailsContract changesDispute resolution process

  • 3/30/2010*Whats new (contd)Performance evaluations for contracts in development now, will provide training when procedures are completedContract Manager required for each contract and purchase orderApproves/monitors paymentsPerforms quality assurance, inspection and testing

  • 3/30/2010*New procurement processes (contd)Contract Manager (contd)Monitors/enforces contractor compliance with DOE security requirements, including fingerprintingMonitors and evaluates contractor performanceAssesses need for changes, extensions and renewalsParticipates in dispute resolution activitiesMaintains file containing records, correspondence and determinations pertaining to contract administration

  • 3/30/2010*Overview of Most Common Procurement ProcessesRequest for Proposals (RFP) ProcessUsed to procure services or a combination of services and goods when evaluation of proposals is based on a number of factors including experience, staffing, suitability for needs and quality of vendor, in addition to priceRFP states what we want to procure in either general or specific terms, depending on the needClient must prepare specifications

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Request for Proposals (RFP) Process (contd)Selection criteria must be established in the RFPSolicitation must be advertised in City Record/DOE website if >$25KA committee of at least three people, none of whom can report to another committee member, reviews the proposals and scores them using rating sheets.

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Request for Proposals (RFP) Process (contd)Proposers may be given feedback on their proposals, and as a result, may make changes to their proposalsProposers may be asked to submit best and final offers (BAFO)Process takes about five to twelve months or more depending on complexity

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Multiple Task Award Contract (MTAC) Process (fka Prequalified Solicitation)Used to procure services when there is high demand for a type of service (such as profl dev in a specific field) and when we want to offer a choice among multiple providers of the serviceContracts are awarded to every provider who meets the requirements of the solicitation

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Multiple Task Award Contract (MTAC) Process (contd)Client must prepare specificationsSelection process is the same as the RFP processProcess takes five to twelve months depending on complexityDCP has a training session on ordering from MTACs

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Negotiated ServicesUsed when other processes are not practical or possible includingneed to extend a contract beyond the 12-month limit in the Contract Extension sectiononly one vendor can meet the DOEs requirementstime constraints are such that only one vendor can provide the services

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Negotiated Services (Contd)a vendors services are discounted because another source of funding is covering a portion of the costMust document determination that it is not practical/possible to use a competitive processMust publish notice of intent to award a contract in City Record/on DOEs website, and evaluate responses, if any

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Negotiated Services (Contd)Chancellors Committee on Contracts (COC) approval is required for contracts > $100KClient must provide specificationsProcess takes six to twelve months (less time if < $100K)

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Simplified ProcurementUsed for goods $15K or less and services $100K or less3 bids are required to be solicitedAdvertisement of solicitation is not requiredNo bids are required for services $5K or less

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Simplified Procurement (contd)Office heads can approve up to $25K; DCP handles process >$25KWhen DCP handles, client must prepare specificationsProcess takes three or more months

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Contract ExtensionCan extend most contracts for up to one yearExceptions: contracts awarded through a bid before 9/15/08; emergency procurements; simplified procurements beyond the $ thresholds; and grant-funded contracts whose extensions will be funded through tax levy fundsMust use all renewals or extensions provided for in contract first

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Contract Extension (Contd)COC approval is required for extensions >$100K and when COC approved original contractPanel approval is NOT requiredProcess takes two to three months or less depending on amount

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Contract ChangesChanges are permitted only for work necessary to complete the work in the original scope of contract and for non-material changes in scopeCan change the price and/or term of contractOffice heads can approve changes up to $25K Exception: when there is a change in unit or task price and the original contract is > $100K, DCP approval is required

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Contract Changes (contd)COC approval is required for changes >$100K and when the COC approved the original contract and when there is an extension of the termPanel approval is required when the change increases the contract cost by $25K or 10% of the original amount, whichever is greaterProcess takes three to four months or more, depending on amount and complexity

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Purchases Through Governmental ContractsUsed to purchase goods/services from State, City or federal contracts when the price is lower than the prevailing market pricePanel approval is not requiredSome State contracts require a mini bid among contracted vendorsProcess takes one to two months if no mini-bid, three to ten months or more if mini-bid is required

  • 3/30/2010*Overview of Most Common Procurement Processes (contd)Section 1-03(b) and (c) Exceptions1-03(b) provides for exceptions to procurement processes for grants that specify a vendor to perform the workwhere court order, consent decree or law requires contracting with a specific source1-03(c) is used for City Council or Borough President budget line item pass through contractsProcess takes three to four monthsGood idea to have providers respond to appropriate MTAC solicitation and get contract through that process eliminates this process

  • 3/30/2010*DCP ContactsSusan Dick-McKeon, Chief, School Based Procurement 718-935-2027Peter Frey, Chief, Funded & Special Services Procurement 718-935-4298Jason Henry, Innovation & Vendor Resources 718-935-2058Jim McBride, Chief, Central Office Procurement 718-935-5238Jay Miller, Vendor Research & Price Analysis 718-935-4394Olga Nieves, Chief, Transportation, Food & Facilities 718-935-2026