Office of Purchasing and Contracts

Slide 1:Office of Purchasing and Contracts

Procurement Outreach Training Level II - Module D State Finance Law; Ethics; OMB Guidelines Welcome to the Office of Purchasing and Contracts training module for oversight guidelines. Specifically, we will be looking at the NYS Finance Law, Ethics and OMB Guidelines.Welcome to the Office of Purchasing and Contracts training module for oversight guidelines. Specifically, we will be looking at the NYS Finance Law, Ethics and OMB Guidelines.

Slide 2:Laws, Rules, Regulations and Guidelines

The procurement of goods and services entails the following of numerous laws, rules, regulations and guidelines. State purchases are enforced at the Federal, State, SUNY and Campus levels both prior and after the procurement. There are a number of oversight rules and regulations, some shared within state and research funding, and some unique to each.There are a number of oversight rules and regulations, some shared within state and research funding, and some unique to each.

Slide 3:Laws, Rules, Regulations and Guidelines

The Procurement Lobbying Act Consultant Disclosure Vendor Responsibility Apparel Workers Fair Labor Conditions Financial Privacy NYS Tax Law Section 5-a Split Ordering New York State is no stranger to rules and regulations. New regulations are issued every year, with the intent of open and fair procurement. These do, however, add time and layers to the procurement. I will summarize each for reference purposes only; details can be found on our website at www dot albany dot E D U forward slash purchasing.New York State is no stranger to rules and regulations. New regulations are issued every year, with the intent of open and fair procurement. These do, however, add time and layers to the procurement. I will summarize each for reference purposes only; details can be found on our website at www dot albany dot E D U forward slash purchasing.

Slide 4:State Finance Law

Operating principles. The objective of state procurement is to facilitate each state agency's mission while protecting the interests of the state and its taxpayers and promoting fairness in contracting with the business community. For the full text of the state procurement law please go to: http://www.ogs.state.ny.us/purchase/snt/sflxi.asp New York State Finance Law holds the principal that the objective of state procurement rules are to facilitate an agencies mission while protecting the interest of the state and it’s taxpayers. All procurements must be done in an open and competitive process. Please follow the link if you wish to read the document at your leisure.New York State Finance Law holds the principal that the objective of state procurement rules are to facilitate an agencies mission while protecting the interest of the state and it’s taxpayers. All procurements must be done in an open and competitive process. Please follow the link if you wish to read the document at your leisure.

Slide 5:State Finance Law Highlights

To promote purchasing from responsive and responsible offerors, including small businesses. To be based on clearly articulated procedures which require a clear statement of product specifications, requirements or work to be performed; a documentable process for soliciting bids, proposals or other offers; a balanced and fair method, established in advance of the receipt of offers, for evaluating offers and awarding contracts; contract terms and conditions that protect the state's interests and promote fairness in contracting with the business community; and a regular monitoring of vendor performance . This screen summarizes much of the salient details of the New York State Finance Law. Vendor responsibility continues to be a major criteria for making awards, which ensures that the vendor has the capability to perform the service or provide the commodity. All steps of the procurement process must be transparent, documented and supportable. We are obligated to make reasonable efforts to promote the use of small businesses from New York State. There can be no personal benefit to any officer or employee.This screen summarizes much of the salient details of the New York State Finance Law. Vendor responsibility continues to be a major criteria for making awards, which ensures that the vendor has the capability to perform the service or provide the commodity. All steps of the procurement process must be transparent, documented and supportable. We are obligated to make reasonable efforts to promote the use of small businesses from New York State. There can be no personal benefit to any officer or employee.

Slide 6:State Finance Law Highlights

To encourage the investment of the private and not-for-profit sectors in New York state by making reasonable efforts to ensure that offerers are apprised of procurement opportunities; by specifying the elements of a responsive bid and disclosing the process for awarding contracts including, if applicable, the relative importance and/or weight of cost and the overall technical criterion for evaluating offers; and by ensuring the procurement is conducted accordingly. To ensure that contracts are awarded consistent with the best interests of the state. To ensure that officers and employees of state entities do not benefit financially or otherwise from the award of state contracts. To ensure regular and critical review of the efficiency, integrity and effectiveness of the overall process. This screen continues the highlighting of the State Finance Law. The Office of Purchasing & Contracts takes the stewardship of taxpayer dollars very seriously as misuse of funds can result in loss of financial flexibility.This screen continues the highlighting of the State Finance Law. The Office of Purchasing & Contracts takes the stewardship of taxpayer dollars very seriously as misuse of funds can result in loss of financial flexibility.

Slide 7:Public Officer’s Law

No officer or employee of a state agency, member of the legislature or legislative employee should have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity or incur any obligation of any nature, which is in substantial conflict with the proper discharge of his duties in the public interest. This concept is addressed in the Public Officer’s Law. No officer, or employee of any state agency can have a financial or other interest which is in conflict with their duties. Purchasing Agents undergo training on these Laws and are required to attest to their adherance to them.This concept is addressed in the Public Officer’s Law. No officer, or employee of any state agency can have a financial or other interest which is in conflict with their duties. Purchasing Agents undergo training on these Laws and are required to attest to their adherance to them.

Slide 8:Ethics Laws

Public Officers Law §73 Business or professional activities by state officers and employees and party officers; restrictions on the activities of current and former state officers and employees Public Officers Law §73-a Financial Disclosure Public Officers Law §74 Code of Ethics Executive Law §94 Commission on Public Integrity; Functions, Powers and Duties Civil Service Law §107 Prohibition against certain political activities; improper influence This screen highlights the specific sections of the Public Officer’s Law that apply. Please feel free to click through them and read the high standards that our staff is held to. We not only have to ensure integrity for ourselves, but be on the lookout for any impropriety within our faculty and staff.This screen highlights the specific sections of the Public Officer’s Law that apply. Please feel free to click through them and read the high standards that our staff is held to. We not only have to ensure integrity for ourselves, but be on the lookout for any impropriety within our faculty and staff.

Slide 9:New York State Tax Law Section 5-a

Contractors awarded state contracts valued at more than $100,000 are required to certify that they are registered to collect NYS and local sales and compensating taxes. Two certification documents are required: Certifying with the NYS Tax Department via Form ST-220-TD. Certifying with the University via Form ST-220-CA that Form ST-220-TD was filed with the NYS Tax Department. Another State mandate involves the verification that the vendor we would like to chose is registered with the NYS Tax Department for the purpose of collecting and remitting new york state sales tax. Once a vendor has completed the required form, we can move forward with the award process.Another State mandate involves the verification that the vendor we would like to chose is registered with the NYS Tax Department for the purpose of collecting and remitting new york state sales tax. Once a vendor has completed the required form, we can move forward with the award process.

Slide 10:Split Ordering

In order to prevent breaching discretionary thresholds, the University is required to monitor open market purchases by commodity/service below $50,000 over a 12 month period beginning on the date of purchase. Even though a specific purchase may be below the discretionary amount of $50,000 if it takes the 12 month total for that commodity/service over $50,000 the University is required to follow all procurement guidelines, including placing an individual advertisement and obtaining 3 quotes. These necessary steps may result in a delay in the procurement. This year has signaled an increased scrutiny of split ordering, a practice whereby agencies try to avoid procurement rules by splitting their orders among multiple vendors. The state is now requiring that we track and report purchases by commodity type, not by the vendor or federal id number. The purpose is two-fold; ensure that we aren’t trying to take the easy way out of procurement and avoiding open competition, and secondly to assist agencies in monitoring purchases so they can negotiate the best price for the state.This year has signaled an increased scrutiny of split ordering, a practice whereby agencies try to avoid procurement rules by splitting their orders among multiple vendors. The state is now requiring that we track and report purchases by commodity type, not by the vendor or federal id number. The purpose is two-fold; ensure that we aren’t trying to take the easy way out of procurement and avoiding open competition, and secondly to assist agencies in monitoring purchases so they can negotiate the best price for the state.

Slide 11:Workers’ Compensation Insurance

Workers' compensation provides medical treatment, wage replacement and permanent disability compensation to employees who suffer job-related injuries or illnesses, and death benefits to dependents of workers who have died as a result of their employment. Prior to any permit being issued or any contract being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured workers’ compensation insurance. Please contact the Office of Purchasing and Contracts for additional information.

Slide 12:Disability Insurance

Disability insurance replaces a workers income on a tax-free basis should a sickness or illness prevent the worker from earning an income. Prior to any permit being issued or any contract being entered into for work in which employees of a business will be engaged in hazardous employment the University must obtain acceptable proof that a business has secured disability insurance. Please contact the Office of Purchasing and Contracts for additional information.

Slide 13:In closing….

There are many levels of procurement, with unique requirements and regulations. Thank you for taking time to review this information. Additional training presentations can be found at our website at www.albany.edu/purchasing