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DEO Procurement Training

DEO Procurement Training. Training Agenda . Authority, Statute, Rules, Policy and Procedures Method of Procurements Purchase Orders, Change Orders and Cancellation Requests Settlement Agreements Internal and External Approvals Day to Day Purchasing Questions and Answers. Authority .

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DEO Procurement Training

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  1. DEO Procurement Training

  2. Training Agenda • Authority, Statute, Rules, Policy and Procedures • Method of Procurements • Purchase Orders, Change Orders and Cancellation Requests • Settlement Agreements • Internal and External Approvals • Day to Day Purchasing • Questions and Answers

  3. Authority • Authority • Chapter 287, Part 1 Florida Statutes • Chapter 60A-1, Florida Administrative Code • Other Related References DEO Purchasing Policy 4.02 DEO Purchasing and Contracting Procedures Manual DMS State Purchasing Memorandums Department of Financial Services • Reference Guide for State Expenditures • Comptroller Memorandums • Agency Addressed Memorandums Federal Regulations

  4. Standards of Conduct • Centralized Purchasing Office • Legality and Ethics • Effective Service • Efficiency • Economy • Fairness • Open and Free Competition • Diversity

  5. Specific Purchase • Per Florida Attorney General Opinion #78-101, an agency must have expressed or implied statutory authority to make a specific purchase • Promotional items • Client incentives • Gift cards • http://www.myfloridalegal.com/ago.nsf/Opinions/458FC3959F27499E852565930069670F

  6. Nonconforming Request • The Purchasing Office retains the final authority to: • Return/deny any Purchase Requisition that does not adhere to: • Department Policy • Violates State and Federal Law • Not in compliance with Florida Administrative Code • Lacks Justification • Conflict of Interest or Noncompetitive Practices • Inappropriate Comments or Attachments

  7. Purchasing • Exempt Purchases from Competitive Procurement - Section 287.057(f), F.S. 1. Artistic Services 2. Academic program reviews <$50,000 3. Lectures by individuals 4. Auditing Services 5. Legal Services 6. Health Services involving examination, diagnosis, treatment, prevention, medical consultation or administration 7. Services provided to persons with mental or physical disabilities (non-profit corporations) 8. Medicaid Services 9. Family Placement Services 10. Prevention services related to health services (operated by non-profit corporations) 11. Training and education services provided to injured employees 12. Contracts entered into pursuant to 337.11 (DOT) 13. Services or commodities provided by other governmental agencies

  8. State Term Contracts • Negotiated and managed by DMS Division of State Purchasing. • More than 60 contracts currently, totaling more than $2 billion in state savings annually. • Mandatory usage for state agencies and optional for OEUs. • Meets the competitive solicitation requirement of Section 287.057, F.S. • Per Rule 60A-1.043, all STC with multiple vendors providing the same product must have two quotes unless the contract expressly has other RFQ requirements. • http://dms.myflorida.com/contracts

  9. State Term Contracts • Per Rule 60A-1.043, all STC with multiple vendors providing the same product must have two quotes unless the contract expressly has other RFQ requirements.

  10. STC Exceptions • FAC Rule 60A 1.044 State Term Contracts (2) State Agency Standard Configuration and Options: If an agency determines that a standard configuration product will not meet the agency’s needs and that it is therefore necessary for the agency to purchase specific product options or additions to the standard configuration product, the agency shall, in writing, specify why the standard configuration product(s) cannot meet the agency’s needs due to: -unavailability of the product within agency schedule or delivery requirements -need for compatibility with existing equipment or systems; or -failure to meet agency-required specifications, quality levels or technical requirements (3) The written determination shall also include the price impact, both as a dollar amount and as a percentage of the price of the state contract or standard configuration item(s), that result because of the exception or deviation

  11. Purchasing • Commodity • Supplies, materials, goods, merchandise, printing, food, and equipment, tangible property, leased property • Freight or Inside Delivery charges should be coded with the same Commodity Code as the product(s) being purchased, do not use 991-841 • Contractual Services • Commodity Code 9xxxxx series • Combination Parts and Labor • Labor only (time and effort) • Provider Services

  12. Purchasing • Section 287.058 (4), F.S. Contractual Services – every procurement of contractual services in excess of the Category Two ($35,000) threshold shall be evidenced by a written agreement or purchase order. $0-$35,000 Purchase Order >$35,000 Contract Agreement Agencies are allowed to use the purchasing card for contractual services direct billings that do not exceed $75,000 in a State fiscal year.

  13. Purchasing • Section 287.057(18), F.S. Contractual Services >$65,000, • Each agency shall establish a review and approval process for all contractual services contracts costing more than the threshold amount provided for in s. 287.017 for CATEGORY THREE which shall include, but not be limited to, program, financial, and legal review and approval. Such reviews and approvals shall be obtained before the contract is executed.

  14. Purchasing • Commodities and Contractual Services State agencies may purchase only items necessary to carry out statutory duties and should select items on an economically prudent and cost effective basis not to satisfy the personal convenience or personal preference of individuals.

  15. Emergency Procurements • Immediate danger to the public health, safety, or welfare or other substantial lost to the State • Executive Order • >$35,000 requires Certification by the Director • It is not, I forgot to do my job and my boss already bought it or I need a purchase order to pay the invoice.

  16. Procurement Cycle • 1)Determine the Need • 2) Specification or Product Description • 3) Determine the Method of Procurement • 4) Quotes or Formal Soliciation • 5) Issuance of a Purchase Order • 6) Receipt of Goods or Services • 7) Invoice and Payment

  17. Purchasing System Controls • Purchase Order • Standard instrument for purchasing the majority of goods/services involving the submittal of a Purchase Requisition in MFMP • Contract – two party written agreement • PCardis a payment mechanism NOT a procurement method

  18. Settlement Agreement • Goods and/or Services Without Proper Authority • Claims and Demands Against the State • Indicates the Agency is not abiding by the rules and Laws of Florida • Admission We Made a Mistake • Reported to the Governor’s Office Monthly • Contact Finance and Accounting

  19. Procurement Thresholds • Section 287.017, F.S. - Purchasing Threshold Categories Category One - $ 20,000 (requires three written quotes) Category Two - $ 35,000 (bid threshold) Category Three - $ 65,000 (legal and financial review) Category Four - $195,000 (DMS approval) Category Five - $325,000

  20. Internal Management Review IRA (IT) OCO (Budget) Travel C676C Notary Justification (Supervisor) General Counsel Review Facility Services Work Order Telecommunications New Perquisite (Personnel) Membership Due (COO) Employee Moving Expenses (EMT/SMS/Personnel) External Vehicles (DMS) Advance Payment (DFS) GSA DMS Terms and Conditions (Vendor) CSA (DMS) Single Source >$195,000 (DMS) Notary Commission (DMS) Internal and External Approvals

  21. Bid or Not to Bid ? • FAC Rule 60A 1.002 (4) In accordance with Chapter 287, F.S., all purchases for which the total contract value is in excess of the threshold amount for Category Two ($35,000) for a particular commodity group of commodities or contractual service shall be made by first securing formal competitive solicitations, unless an exemption applies. (5) Acquisitions shall be reviewed and considered on an agency-wide basis. The Purchasing Office shall not divide its purchases or its purchasing operations to circumvent the process.

  22. Procurement Methods • Section 287.057, F.S. - Methods of Procurement (1)(a)Competitive Solicitations >$35,000 • Invitation to Bid • Request for Proposal • Invitation to Negotiation (5)Exceptional Purchases • Emergency Purchases - FAC 60A-1.046 • Agency Term Contract – FAC 60A-1.001(b) • Alternative Contract Source – FAC 60A-1.047 • Single Source Purchases - FAC 60A-1.045 • State Purchasing Agreements (SPA) -FAC 60A-1.025

  23. <$35,000 • FAC Rule 60A 1.002 (2) and (3)Methods of Procurement (continued) (2) Purchases <$2,500 one quote (CMBE) (3) Informal Quotes $2,500 - $20,000 two quotes $20,001 - $35,000 three written quotes

  24. Single (Sole) Source For single source purchases exceeding Category Two, follow a separate process: • Advertised on Vendor Bid System (VBS) • PUR 7776 • Seven business days • If the purchase exceeds Category Four ($195,000), DMS approval is required • PUR 7777 • Post Intent to Award on VBS • PUR 7778 • 72 business hours (excluding weekends and holidays)

  25. Purchasing • Order of Priority in Selecting a Vendor Respect - 413.036 F.S. Pride - 946.515 F.S. State Term Contract - DMS Agency Term Contract - DEO Alternate Contract Source – WSCA/GSA SPA Agreements Competitive Solicitation Informal Quotes

  26. Day to Day Purchasing • Respect – • Calendars • Writing Instruments, e.g., Pens, Pencils, Markers, Highlighters • First Aid Kits and Refills • Clocks • Medical Gloves • White Marker Boards and accessories • Floor Chair Mats • Depends • Drug Test Kits • Staplers, staples and two hole punch • Plaques, document holders • Flags (United State of America and State of Florida, only) • Janitorial and Lawn Care Services

  27. Day to Day Purchasing • PRIDE • Business Cards • Furniture • Binders • Uniforms • Janitorial products other than name brand • Envelopes quantity less than 5,000

  28. Red Tape • Delays in PR Workflow Process • Incorrect Method of Procurement Code Selected • Incorrect Commodity Code • STC Number, field is not populated • Required number of quotes, not obtained or attached • IRA approval, not attached • OCO approval, not attached • Conference/Training Registration, Agenda and C676C, not attached • No Written Justification • Incorrect Attachments or Format Type • Forgetting to Delegation MFMP Authority in Ariba when on Annual/Sick Leave

  29. Common Mistakes • Leaving payment terms out of the procurement • A statement of work that is unclear or not defined • Not following purchasing laws and rules • Preventing the perception of partiality to the vendor community • Not focusing on getting the best price for the right product/service at the right time • Signing agreements without consulting your purchasing office first • PCard purchases exceeding Category Two • After-the-fact purchases

  30. Day to Day Purchasing • Conference Registrations • Is exempt from MFMP if the Vendor accepts PCard, attach the invoice for payment to the C676C and Voucher for Reimbursement of Travel Expenses forms. • If the Vendor does not accept PCard and the Vendor is registered in MFMP, a purchase requisition is required along with the C676C attachment. • If the Vendor is not registered in MFMP, contact the Purchasing Office • Training Registration • Requires a MFMP purchase order

  31. Day to Day Purchasing • Employee Moving Expenses • Requires three (3) written quotes • Must be paid by Warrant • Request for Authority to Pay Moving Expenses Form • Signature Authority – Division Director • Written Justification required • Description Field include the Location “From – To”

  32. Day to Day Purchasing • OCO Purchases • Requires OCO Budget Committee Approval • Unit price of a $1,000 or more • Object Code 5xxxxx series • Replacement requires like funds • Contact the Budget Office

  33. Day to Day Purchasing • IT Equipment • Commodity codes starting with 250xxx use Object Codes • <$1,000 use 3810xx or 3818xx series • >/=$1,000 use 5xxxxx series • $2,500 or greater requires three (3) written quotes • Requires Information Resource Request (IRR) Approval • May require OCO approval • IT Software • Microsoft STC or GSA Schedule 70 • $2,500 or greater requires three (3) written quotes up to $150,000 • $25,000 or greater requires the PUR 7102, Alternate Contract Source approved by DMS • Greater than $150,000 requires formal solicitation

  34. Day to Day Purchasing • Business Cards • DEO Order Form • Employees (one color) • Executive Management (color) • Include the cost of freight, $4.50 per delivery location • Notary Public • Notary Commission Justification Memorandum • Commodity Code 477540 • Application attachment is not required. However, if you scan the application all confidential information must be redact.

  35. Day to Day Purchasing • Furniture • PRIDE • State Term Contract • Office Depot • Hon Authorized Dealer on State Term Contract • Orlando Office only

  36. Day to Day Purchasing • Copiers • Available Lease Periods (3, 4 or 5 years) • No lease renewals provides negotiation • Upon expiration equipment will be picked up within 10 days • Less than $2,500 can go off state term contract • Description: Lease Term, Serial Number, Brand Name, Model Number, Class and Type

  37. Day to Day Purchasing • Membership Dues: Section 216.345, F.S. • Forms Library • Membership Request Form (requires COO signature approval) • Certification of Availability of Records for Public Inspection

  38. Day to Day Purchasing • Advanced Payment: Section 215.422(14), F.S. • Maintenance Agreements, Software License and Subscriptions Must results in a cost savings; essential to the operation of the agency; available only if paid in advance >$35,000 Requires DFS, Bureau of Auditing prior approval • Other Goods and Services • >$1,800 Requires DFS, Bureau of Auditing prior approval

  39. Day to Day Purchasing • Employee Recognition & Awards: Section 110.1245, F.S. • Volunteer Recognition & Awards: Section 110.504, F.S.

  40. Day to Day Purchasing • Prohibited Expenditures – Per Rule 3A-40.103 F.A.C. • Congratulatory or condolences telegrams • Greeting Cards - Chapter 286.27  Use of state funds for greeting cards prohibited. No state funds shall be expended for the purchase, preparation, printing, or mailing of any card the sole purpose of which is to convey holiday greetings • Plants, flowers, pictures, plaques, statues, globes, and other decorative items • Entertainment for visiting dignitaries • Refreshments such as coffee and doughnuts • Decorative Items • More expensive office supplies, furniture, lamps, etc… • Items not purchased in accordance with statute and rules • Items purchased by unauthorized individuals

  41. Day to Day Purchasing • Blanket Purchase Orders • Need Unknown • Cost Unknown • No Single Purchase Can Exceed $2,499 Without a Second Quote • DO Start and End Date Coincides with the State Fiscal Year • Functions Similar to an Open Account • Authorized Buyers • Justification • Examples: Janitorial Supplies, Hardware, Paper Products, Tires, Keys & Key Blanks, Sun/ePass, Electrical/Plumbing/HVAC Services • Non STC Services Attach Vendor Rate Sheet or Rate Per Hour • Non STC at Retail Pricing

  42. Blanket PO - Commodities • Example: Blanket Purchase Order for tires available on state term contract. Rate: per state contract #863-000-06-1. All invoices to include vehicle Tag number and VIN number. Term: 7/1/07 - 6/30/08. Authorized Buyer: Jane Doe, Bob Smith, Joe Brown. (Previous DO292416)

  43. Blanket PO - Services • Example: Blanket Purchase Order for transcription services on an “as needed basis” for the UC Appeals Hearings. TERM: 7/1/12-6/30/09 RATE: Per attached rate sheets. NO SINGLE PURCHASE TO EXCEED $2,499.99 WITHOUT OBTAINING A SECOND QUOTE(S). AUTHORIZED BUYERS: Jane Doe, Bob Smith and Joe Brown. Payable upon receipt of a complete invoice.

  44. Day to Day Purchasing • Term Purchase Order • Specified Items or Services • Specified Rate • Specified Term • Justification • Examples: Janitorial Services, Pest Control, Copiers, Postage Machine Rental, Cellular & Blackberry Service, Lawn Service

  45. Term PO - Services • Example: Term purchase order maintenance agreement for Department owned copier. Minolta Delta Color CF 1501 SN-305165. Rate: $136.00 monthly to include 3,000 copies per month. To be paid quarterly in arrears upon receipt of itemized invoice. Term: 7/1/12- 6/30/13. Authorized Buyers: Jane Doe, Bob Smith. Toner Cartridges, drums and staples included in maintenance agreement. (Previous DO 289781)

  46. Term PO – Pest Control • Example: Term purchase order for monthly pest control services for Caldwell Building. TERM: 7/1/12 - 6/30/13 RATE: per State Term Contract rate of $1.31 per 1000 sq.ft./month. Facility Sq. Ft. 16,000 sq. ft./1,000 sq. ft. x $1.31 = $20.96 per month. Authorized Buyers: Jane Doe, Bob Smith. Payable in arrears upon receipt of a complete invoice. (Previous DO 290364)

  47. Confidentiality • Before uploading attachments to MyFloridaMarketPlace, you must redact all confidential information, including but not limited to all social security numbers, all health information protected by HIPAA, and addresses for law enforcement officers, judges, and other protected classes. If confidential information is not properly redacted, you may be in violation of state and/or federal laws. For information about what constitutes confidential information, under applicable state and federal law, consult your Agency General Counsel. • By checking this box, I confirm that I have not disclosed any confidential/protected information in the attachments or comments for this transaction in violation of Chapter 119, Florida Statutes; HIPAA; or any other state and/or federal laws. I confirm that I will not disclose any confidential/protected information to any unauthorized individual/entity. I also understand that violation of this policy may result in disciplinary action including potential termination.

  48. Purchase Order Change Order Request • Written Justification Required • Increase or Decrease Money • Increase or Decrease Quantities • Change in Price/Rate/Freight Charge • Accounting Information • Change “On Behalf Of” • Term End Date

  49. Purchase Order Cancellation Request • Cancellation Request • Open Order is a Financial Liability to the Agency • No funds have been expended • Company eform • Cancel Requisition • Title Field Should Duplicate the Purchase Order Title • Written Justification, required • “CANCEL” button is PROHIBITED

  50. Receipt and Inspection of Goods • Inspect order immediately • check for damage; compare description, quantity and price to the Purchase Order. • DFS allows only five day from receipt of commodities or services for inspection and acceptance. • Payments for merchandise received shall be made only on the basis of the agreement as to quantity, price, condition and description. • Invoices that do not match the Purchase Order should be disputed immediately and should not be paid.

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