Understanding the Preferred Source Program in New York State

2. Presenters and Presentation Overview Jerry Gerard, NYS OGS Deputy Director, Procurement Services Group Andy Grosso, NYSID Vice President, Marketing and Sales Rick Olivo, IBNYS Director, Marketing and Sales Michael Elmendorf, NYS DOCS (Corcraft) Deputy Director, Marketing and Sales Question / Answer - Presenters

3. What is the Preferred Source Program? • NYS Finance Law (SFL § 162) • http://www.ogs.state.ny.us/procurecounc/pdfdoc/pslist.pdf • Purpose • To advance special social and economic goals, certain providers have “preferred source” status under the law. • The acquisition of commodities and/or services from preferred sources are exempted from statutory competitive procurement requirements • (of SFL § 163).

4. What About Competitive Procurement Requirements? • NYS Finance Law (§ 163 3.a & 4.a) • requires purchasing priority be given to the preferred sources for commodities and services, respectively. • The purchase of [commodities|services]… • shall be conducted in a manner which • accords first priority to preferred sources • in accordance with the provisions of this • article…

5. Who Is Required to Purchase From Preferred Sources? • Applicability and Scope • All state agencies, political subdivisions and public benefit corporations (including most public authorities) are required to purchase approved products and services from preferred sources. • Purchases from preferred sources take precedence over all other sources of supply and competitive procurement methods.

6. Who Are The Preferred Sources? • Preferred Source status is accorded to: • Corcraft • Commodities produced by the NYS DOCS, Correctional Industries Program • IBNYS • Commodities and Services produced by qualified, charitable, non-profit-making agency for the blind, approved by the Commissioner of Social Services • NYSID • Commodities and Services produced by qualified, charitable, non-profit-making agency for the severely disabled persons, approved by the Commissioner of Education

7. How Do I Know Who Offers What? • List of Preferred Source Offerings • established and maintained by OGS • http://www.ogs.state.ny.us/procurecounc/pdfdoc/pslist.pdf • Contains offerings and the specific preferred • source(s) approved for the offering • New or substantially different commodities • or services are added to the list pending action by the Procurement Council and approval of Commissioner of OGS

8. Which Preferred Source Do I Purchase From? • Priority Among Preferred Sources Commodities and Services available in the form, function and utility required by a State agency, political subdivision or public benefit corporation must be purchased from preferred sources in the following prioritized order: • Commodities • 1st – Corcraft 2nd – IBNYS 3rd – NYSID • Services • Equal Priority – if more than 1 preferred source meets the requirements, cost shall be the determining factor.

9. What is the Preferred Source Procurement Process? Determine/define agency need for a commodity or service Review the current List of Preferred Source Offerings If offering on List, determine whether it meets agency form, function and utility required. If offering meets agency needs/requirements, proceed with purchase from preferred source If offering not on List, proceed with purchase from centralized contract or appropriate competitive procurement If offering does not meet agency needs/requirements, the 10 day notification requirement applies Complete Needs Assessment Are needs met by Preferred Sources? Are needs met by Centralized Contract? Are needs met by Competitive Bid? Competitive Bid Yes Preferred Sources No Centralized Contract Yes No Yes Or IFB RFP SINGLE SOURCE SOLE SOURCE STRATEGIC PARTNERSHIP BUILD IT YOURSELF

10. How Do I Determine Whether They Meet My Needs? • Broadly interpret the generic List of Preferred • Source Offerings • Make reasonable efforts to notify preferred source • of agency needs and initiate discussion of needs • To apply the form, function and utility standard, • define the commodity/service in terms of the minimal essential requirements • Consult directly with the preferred source to gain • additional information and/or discuss potential accommodations to meet agency needs

11. Form, Function, and Utility Considerations • Does the preferred source offering meet either agency • specifications or industry standards which may be • applicable? • Are deviations from specifications minor? Will the product • suffice, or could the service be made to suffice, or will the • offering substantially meet agency requirements for • function and performance? • Are delivery schedules, installation requirements, start-up • lead times and performance standards reasonable, • necessary and within accepted commercial practices? • Has the preferred source been consulted? Can they make • necessary accommodations to meet agency needs?

12. How or Where Do I Get Additional Information? NYS Finance Law, Article XI, State Purchasing http://www.ogs.state.ny.us/purchase/snt/sflxi.asp Preferred Source Guidelines http://www.ogs.state.ny.us/procurecounc/pdfdoc/psguide.pdf List of Preferred Source Offerings http://www.ogs.state.ny.us/procurecounc/pdfdoc/pslist.pdf Procurement Council and Procurement Guidelines http://www.ogs.state.ny.us/procurecounc/default.asp Procurement Guidelines http://www.ogs.state.ny.us/procurecounc/pdfdoc/guidelines.pdf

13. Who Can I Contact Regarding Preferred Sources? • New York State Department of Correctional Industries (Corcraft) • www.corcraft.org • e-mail: productinfo@corcraft.docs.state.ny.us • phone: 800-436-6321 fax: 518-434-7434 • ext. 2620 • Industries for the Blind of New York State (IBNYS) • www.ibnys.org e-mail: info@ibnys.org • phone: 800-421-9010 fax: 518-456-3587 • New York State Industries for the Disabled (NYSID) • www.nysid.org e-mail: dallen@nysid.org • phone: 800-221-5994 fax: 518-455-0315 • ext. 215 • New York State OGS Procurement Services Group (PSG) • www.ogs.state.ny.us/purchase/ • e-mail: thomas.sherwood@ogs.state.ny.us • phone: 518-473-3923 fax: 518-474-2437

14. Questions and Answers ? To assure that the Preferred Source representatives are afforded the opportunity to make their presentations, we ask that questions be held until the end of the session.