New Procurement Rules Training

Purchases Greater Than $25,000

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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 a new procurement policy that met

specific requirements stated in the Law

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Many processes are the same, but some things are new

New procurement processes Emergency purchases Demonstration projects Innovative procurement methods

No more sole source for services Must use Negotiated Services (fka Exception

to Bid or Committee on Contracts) when there is only one source for services

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What’s new (cont’d) Request for Authorization - New

Requirements Now required for all procurements

except Simplified Procurement All other procurements $25,000 or less

($15,000 if competitive sealed bidding) Educational Investment Case

Required for technology, software, consulting or technical services contracts >$1 million

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What’s new (cont’d) Educational Investment Case (cont’d)

Describes the need for the project, how it fits within educational objectives

Key risks/dependencies Cost benefit analysis Client must provide information needed to

complete See Section 2-07 (c) for details

Contract changes Dispute resolution process

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What’s new (cont’d)

Performance evaluations for contracts – in development now, will provide training when procedures are completed

Contract Manager required for each contract and purchase order Approves/monitors payments Performs quality assurance, inspection and

testing

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New procurement processes (cont’d)

Contract Manager (cont’d) Monitors/enforces contractor compliance with

DOE security requirements, including fingerprinting

Monitors and evaluates contractor performance

Assesses need for changes, extensions and renewals

Participates in dispute resolution activities Maintains file containing records,

correspondence and determinations pertaining to contract administration

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Overview of Most Common Procurement Processes

Request for Proposals (RFP) Process Used 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 price

RFP states what we want to procure in either general or specific terms, depending on the need

Client must prepare specifications

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Overview of Most Common Procurement Processes (cont’d)

Request for Proposals (RFP) Process (cont’d) Selection criteria must be established

in the RFP Solicitation must be advertised in City

Record/DOE website if >$25K A committee of at least three people,

none of whom can report to another committee member, reviews the proposals and scores them using rating sheets.

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Overview of Most Common Procurement Processes (cont’d)

Request for Proposals (RFP) Process (cont’d) Proposers may be given feedback on

their proposals, and as a result, may make changes to their proposals

Proposers may be asked to submit best and final offers (BAFO)

Process takes about five to twelve months or more depending on complexity

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Overview of Most Common Procurement Processes (cont’d)

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 prof’l dev in a specific field) and when we want to offer a choice among multiple providers of the service

Contracts are awarded to every provider who meets the requirements of the solicitation

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Overview of Most Common Procurement Processes (cont’d)

Multiple Task Award Contract (MTAC) Process (cont’d) Client must prepare specifications Selection process is the same as the

RFP process Process takes five to twelve months

depending on complexity DCP has a training session on

ordering from MTACs

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Overview of Most Common Procurement Processes (cont’d)

Negotiated Services Used when other processes are not

practical or possible including need to extend a contract beyond the 12-

month limit in the Contract Extension section

only one vendor can meet the DOE’s requirements

time constraints are such that only one vendor can provide the services

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Overview of Most Common Procurement Processes (cont’d)

Negotiated Services (Cont’d) a vendor’s services are discounted because

another source of funding is covering a portion of the cost

Must document determination that it is not practical/possible to use a competitive process

Must publish notice of intent to award a contract in City Record/on DOE’s website, and evaluate responses, if any

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Overview of Most Common Procurement Processes (cont’d)

Negotiated Services (Cont’d) Chancellor’s Committee on Contracts

(COC) approval is required for contracts > $100K

Client must provide specifications Process takes six to twelve months

(less time if < $100K)

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Overview of Most Common Procurement Processes (cont’d)

Simplified Procurement Used for goods $15K or less and

services $100K or less 3 bids are required to be solicited Advertisement of solicitation is not

required No bids are required for services $5K

or less

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Overview of Most Common Procurement Processes (cont’d)

Simplified Procurement (cont’d) Office heads can approve up to $25K; DCP handles process >$25K

When DCP handles, client must prepare specifications

Process takes three or more months

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Overview of Most Common Procurement Processes (cont’d)

Contract Extension Can extend most contracts for up to

one year Exceptions: 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 funds

Must use all renewals or extensions provided for in contract first

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Overview of Most Common Procurement Processes (cont’d)

Contract Extension (Cont’d) COC approval is required for

extensions >$100K and when COC approved original contract

Panel approval is NOT required Process takes two to three months or

less depending on amount

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Overview of Most Common Procurement Processes (cont’d)

Contract Changes Changes are permitted only for work necessary

to complete the work in the original scope of contract and for non-material changes in scope

Can change the price and/or term of contract Office 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

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Overview of Most Common Procurement Processes (cont’d)

Contract Changes (cont’d) COC approval is required for changes

>$100K and when the COC approved the original contract and when there is an extension of the term

Panel approval is required when the change increases the contract cost by $25K or 10% of the original amount, whichever is greater

Process takes three to four months or more, depending on amount and complexity

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Overview of Most Common Procurement Processes (cont’d)

Purchases Through Governmental Contracts Used to purchase goods/services from State,

City or federal contracts when the price is lower than the prevailing market price

Panel approval is not required Some State contracts require a “mini bid”

among contracted vendors Process takes one to two months if no mini-bid,

three to ten months or more if mini-bid is required

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Overview of Most Common Procurement Processes (cont’d) Section 1-03(b) and (c) Exceptions

1-03(b) provides for exceptions to procurement processes

for grants that specify a vendor to perform the work where court order, consent decree or law requires

contracting with a specific source 1-03(c) is used for City Council or Borough

President budget line item pass through contracts

Process takes three to four months Good idea to have providers respond to

appropriate MTAC solicitation and get contract through that process – eliminates this process

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DCP Contacts Susan Dick-McKeon, Chief, School Based

Procurement – 718-935-2027 Peter Frey, Chief, Funded & Special Services

Procurement – 718-935-4298 Jason Henry, Innovation & Vendor Resources –

718-935-2058 Jim McBride, Chief, Central Office Procurement

– 718-935-5238 Jay Miller, Vendor Research & Price Analysis –

718-935-4394 Olga Nieves, Chief, Transportation, Food &

Facilities – 718-935-2026