Procurement Forum

1. Procurement Forum August 21, 2012

2. Arkansas Procurement Rules Revisions Ray S. Pierce Attorney, Office of State Procurement

3. Most are noncontroversial Most of the rules changes we’re making are minor technical changes, such as removing specific website addresses that are no longer operative, or moving existing rules to different sections so that they are easier to find. Also, some rules are being deleted in their entirety to reflect improvements in technology and the way OSP does business.

4. Significant changes R1:19-11-244 – Protest Periods This new rule reflects the change in the statute clearly setting out two defined times bidders or potential bidders may lodge a protest and what may be protested in each of those periods. The first protest period is for any prospective bidder to challenge the language or requirements of a solicitation. These kinds of protests may be lodged any time up to 72 hours before the deadline for bids to be submitted.

5. Protest Periods con’t The second protest period comes after bids are opened and an anticipation to award a contract is announced. The only entities that can protest at this point are those entities that actually submitted a bid in response to a solicitation. These protests must be lodged within 14 calendar days after the protester knows or should have known of the facts giving rise to their protest.

6. Other new rules because of statutory changes • R4:19-11-265. Reporting of Contracts for Commodities including Services with a projected total cost greater than $250,000. These are contracts where the purchase of the commodities/equipment includes services that an agency would not purchase independently. • R2:19-11-902 Work center certification. New subsection (b) states that “(b)efore commodities or services may be procured from a work center for the blind, such work center will be required to maintain evidence from the Division of State Services for the Blind of the Department of Human Services.”

7. Other new rules because of statutory changes And finally, • R3:19-11-203. Proprietary Software  Software exemption under ACA § 19-11-203(14)(BB) does not apply to the initial purchase of proprietary software. Nor does the exemption apply to the purchase of software that is part of any mandatory software contract. Exempt software purchases shall include the purchase of additional proprietary software licenses, copies, license renewals, technical software upgrades, and proprietary software support for proprietary software after the initial purchase.

8. Other significant changes • The rules under ACA § 19-11-230 dealing with Competitive Sealed Proposals have been significantly changed and added to so as to make the rules concerning Requests for Proposals for services as similar as possible to those concerning Invitations to Bid for commodities. Care has been taken to reflect the sometimes subtle differences between IFBs and RFPs.

9. More additions • R4:19-11-203 – Signatures defined This is a new rule to clarify the definition of “signed” as currently defined in ACA § 4-1-201 (39), the Uniform Commercial Code, in relation to State contracts.   • R5:19-11-217 – State Procurement Training A new rule to clarify the State Procurement Director’s authority to require State agency procurement personnel to be trained in State Procurement law and policy.

10. More additions R3:19-11-245 (12) – Authority to Debar or Suspend This is a new rule to make the repeated and willful failure to pay lawful State taxes as one of the possible causes to suspend or debar a vendor. R2:19-11-1008 – Public Notice of Professional & Consultant Contract Solicitations New rule to state that all Professional and Consultant Services solicitations are to be posted on the OSP website.

11. And finally R1:22-8-102 – Authority of the Director New rule to require all vehicle lease solicitations be processed by the Office of State Procurement.

12. Any final questions or comments? Your questions and comments will be considered and an amended version of these proposed rules, if any, will be available on the OSP website prior to final promulgation. Please e-mail Ray Pierce, ray.pierce@dfa.arkansas.gov, if you have additional questions or comments.

13. Possible statewide contracts • Electrical supplies • Plumbing supplies • Cintas – Uniforms & Shredding – US Communities contract

14. OSP Contracts • Linens & Blankets • July 1, 2012 – June 30, 2013 • American Textile Systems • Auto Parts • AutoZone -10/06/2011 – 12/31/2012 • Napa - 04/12/2012 – 04/12/2013 • O’Reilly - 01/12/2012 – 12/31/2012

17. SP-12-0252 - Sheets & Blankets • Section A –Healthcare Sheets, Pillow Cases, Blankets • Group 1: T180, White, Sheets/Pillow Cases 55/45 Cotton/Polyester blend / Twin, Twin XL • Group 2: T180, Colors, Sheets/Pillow Cases55/45 Cotton/Polyester blend / Twin, Twin XL Rose and Blue • Group 3: Blankets, Thermal100% Cotton, White

18. SP-12-0252 - Sheets & Blankets • Section B - Hospitality Sheets, Pillow Cases, Blankets • Group 4: T180, White, Ivory, Tan, Sheets/Pillow Cases55/45 Cotton/Polyester blend / Twin, Twin XL, Full, Queen • Group 5: T180, Colors, Sheets/Pillow Cases 55/45 Cotton/Polyester blend / Twin, Twin XL, Full, QueenRose and Blue • Group 6: T250, White, Sheets/Pillow Cases 60/40 Cotton/Polyester blend / Full, Queen. King • Group 7: Blankets, 100% Polyester Polar FleeceIvory

20. Awarded Vehicle Parts Suppliers WSCA Contracts: AutoZone O’Reilly Auto Parts NJPA Contract: NAPA Auto Parts

21. Parts Categories • Air Conditioning • Alternators and Starters • Batteries • Bearings, Ball and Roller • Belts and Hoses • Brakes • Electrical and Ignition • Emissions and Exhaust • Engine and Drive Train • Filters (Oil, gas, air and transmission) • Gaskets and Seals • Heating and Cooling (engine) • Lamps, Lighting and Mirrors • Oils and Lubricants (regular and synthetic) • Pumps (fuel and water) • Suspension, Shocks, Struts and Steering • Wipers and Washers • Winter Accessories

22. Program Benefits • Supplier must offer lowest sale price within the nation if cheaper than the contract price. (WSCA Contract Only) • Offered discounts are the minimum (negotiations may be made on volume purchases) • All suppliers offer free delivery, in-store purchasing and on-line purchasing. (Check specific supplier contract for delivery details) • Parts may be bought using P-Card, or PO which is billed to the agency. (Due to the large number of NAPA franchise stores, the P-Card is the preferred method of payment for NAPA purchases.) • Dedicated contract websites (ex. napaprolink.com) Each supplier has a specific website for the contract with a private login – available from the supplier. All pricing will be listed on the webpage with the discount.

23. autozonepro.com

24. Autozone Registration

25. firstcallonline.com

26. O’Reilly Registration

27. napaprolink.com

28. Sophisticated Web Sites • Parts Search Engines • View the supplier’s catalog • Save the jobs you’ve worked on • Save job quotations or recurring quotes • Look up the supplies you might need on a job • Instructional videos

29. In Summary… • AutoZone, NAPA and O’Reilly Auto Parts each with easy to use websites • Contract has a broad scope of categories for auto parts • Agencies can shop each supplier to get the best price for the part needed • Free delivery. Some parts may have delivery charges depending upon whether the part is a stock item or something which needs to be ordered (i.e. engines, OEM parts) • You may call suppliers and try to negotiate a lower price for quantity purchases or high dollar items…remember, the percentage bid is the minimum percentage off of each of the supplier’s price • Use P-Card to lower costs and for convenience

30. M&R

32. Questions from the Audience • We at OSP value your questions and opinions • Each month we will respond to some of the general questions asked from the audience

33. Is OSP working on an on-line training for P-cards? • There is a webinar available • Travel card training will be available in the fall

34. Fuel Card is Changing by 2/1/13 • Currently Voyager • Transitioning to Wright Express • Roll will be in phases, you will be notified • Early volunteers???

35. How do I handle a lost check? • Current year warrant - vendor must complete an Affidavit of Forged Warrant & submit the original to the Office of Accounting.  Unless otherwise directed, DFA-OA will open the direct invoice and another warrant will be issued directly from that original invoice.  • Prior year warrant - vendor must complete an Affidavit of Forged Warrant and a Bond for Reissue and submit the originals to DFA-OA.  If a new warrant is to be issued, the Auditor of State will issue an exact duplicate of the original warrant issued but with DUPLICATE stamped in red across the front. 

36. AASIS Info

37. Contracts Different scenarios that OSP & every agency should be watching for on the transparency website

38. Is the contract displayed correctly?

40. Has the expenditures exceeded the contract?

42. OSP Statewide Contracts • OSP is adding generic material numbers to all statewide contracts • AASIS is working on a better solution

43. Vendors – Current status • Transparency clean-up is done • Clean-up is now part of operations • Procedures have changed

44. Vendors – clean-up • Vendors reorganized and renumbered • Before: AGEN, BOAR, VEND • After: AGEN, AGCY, BOAR, FRGN, GOVT, LGVT, NTFP, OGVT, PSCH, VEND

45. Vendors - Stats All vendor groups: • Total 201,314 • Available for use 75,146 VEND group: • Total 187,384 • Available for use 65,026

46. Vendors – Search tips • “Vendors by additional criteria” tab • All Caps • Wild cards * • Partial names • Multiple fields • Account groups • Previous account number • Column showing deletion flag

47. Vendors - Search

48. Vendors - Search

49. Vendors – Search (UAMS) • Use Transaction XK03, drop down search

50. Vendors – Search (UAMS) • Vendors by Additional Criteria tab • Name field - *UNIV*AR*ME* • Account Group - AGCY