Contract and Procurement Management (C&PM) 101

1. Presented by: Cathy Garcia, C.P.M. Director Vickie L. Hokenson, C.P.M. Lead Buyer III, Contract Specialist Jeff Fratt, C.P.M. Buyer III Contract and Procurement Management (C&PM)101 February 28, 2012

2. Topics for Discussion • Who and Where Are We • Basic Training • Procure-to-Pay Life Cycle • Requisition Creation (Req-creation) • Common Transaction Issues • Accessible Technology Initiative (ATI) • Bid Thresholds/Competition • Sole Brand / Sole Source • Disabled Veteran Business Enterprise(DVBE)/Small Business (SB) • Prohibited Practices / After the Fact (ATF) • Deadlines

3. Contract & Procurement Management Who and Where are We Administration Building, Room 116 Office Hours: Monday-Friday 8:00am – 4:30pm Main Line Phone: 619-594-5243 Fax: 619-594-5919 Website: http://bfa.sdsu.edu/prosrvcs/ Cathy Garcia, C.P.M. Vickie L. Hokenson, C.P.M. Director Lead Buyer III, Contract Specialist cgarcia@mail.sdsu.eduvhokenso@mail.sdsu.edu 619-594-4723 619-594-2796 Romeo Del Rosario James Durante Jeff Fratt, C.P.M. Buyer I Buyer II Buyer III rdelrosario@mail.sdsu.edujdurante@mail.sdsu.edujfratt@mail.sdsu.edu 619-594-0928 619-594-4720 619-594-3965 Shawn Hawes Kathi Horton, A.P.P. Michelle Tanner Buyer II Buyer III, Contract Specialist Administrative Suppor shawes@mail.sdsu.edukhorton@mail.sdsu.edumtanner@mail.sdsu.edu 619-594-7073 619-594-2445 619-594-0112

4. Basic Training • Topics covered in Basic Training Presentation including but not limited to: Mission/Delegation/Areas of Responsibility/ Fiscal Authorization Hierarchy/Campus Hospitality Policy/Campus Contracts may be downloaded from: http://bfa.sdsu.edu/~leap/ “What’s New”

6. The Chronology of a Requisition Req-Creation

7. Common Transaction IssuesBuyer Recommendations ~ Items identified that assist in expediting requisition

8. Common Transaction Issues- Continued

9. Common Transaction Issues- Continued

10. Common Transaction Issues- Continued

11. What is the Accessible Technology Initiative (ATI) ? Section 508 refers to federal guidelines that facilitate procurement of products which meet the accessibility needs of our campus community • ATI is the California State University system’s effort to implement federal and California law requiring access to technology for students, faculty, staff, and visitors to each campus. The initiative is a collaborative effort at each CSU university to provide access to technology in three major areas: Web accessibility, instructional materials accessibility, and technology procurement. A detailed description and list of resources are available at <http://www.calstate.edu/accessibility>.

12. Accessible Technology Initiative(ATI)Section 508 • All Electronic and Information Technology (E&IT) purchases of hardware, software and IT services over $15,000 must be reviewed and approved by the Compliance Officer for each university division prior to submission to Contract & Procurement Management. • If the product requires electricity, has an interactive screen or display and transfers information, it probably falls under Section 508. • Purchasing an accessible product is often less expensive than providing accommodations (e.g. purchasing a video with caption vs. hiring an interpreter.)

13. E&IT/ATI Product Examples

14. Procurement Process for Software & Equipment Accessibility Software Acquisition http://access.sdsu.edu • Equipment Acquisition • Accessibility Evaluation Time: 2-4 weeks • Involve Us Early • VPAT – Voluntary Product Evaluation Template • Websites http://access.sdsu.edu/procurement.htm http://www.calstate.edu/Accessibility/EIT_Procurement/VPAT_Guide.html http://access.sdsu.edu/etiresource.htm http://access.sdsu.edu/index.htm

15. Bid Thresholds / Competition • “The CSU is committed to a policy of promoting fair and open competition, for the acquisition of goods and services to meet its needs” CSU Administrative Manual • Bid thresholds are set by State civil codes and adapted by the CSU. • Classification of the contract is the first step. • Contract for Goods • Information Technology Resources (ITR) Goods and Services Contract • Contract for Services • What will the dollar amount of the contract be, including freight, delivery, set up, installation and training, but not sales tax?

16. Bid Thresholds / Competition If your project is over $50,000.00, call us

17. Bid Thresholds / Competition Goods • Goods less than $50K – No competition required • Goods greater than $50K but less than $100K – Informal bid process with advertising in the State Contracts Register (Bidsync) • Goods greater than $50K but less than $100K may be the result of informal quotes from two or more Small Business/Micro Business without advertising. • Goods greater than $100K will be the result of a formal competitive bid.

18. Bid Thresholds / Competition Information Technology Resources • ALL ITR GREATER THAN $15K REQUIRE ATI COMPLIANCE. • ITR services greater than $5K require advertising in the Contracts Register (BidSync) • ITR acquisitions less than $50K – No competition required • ITR acquisitions greater than $50K but less than $100K may be the result of informal quotes from two or more SB/MB without advertising. • ITR acquisitions greater than $50K and less than $500K may be the result of informal quotes including advertising on BidSync. • ITR acquisitions greater than $500K will be the result of a formal competitive bid.

19. Bid Thresholds / Competition Services • Services less than $50K – No competition required • Services greater than $50K but less than $100K may be the result of informal quotes from two or more Small Business/Micro Businesses without advertising. • Services greater than $50K will be the result of a formal competitive bid. • Exception: Public Works contracts greater than $5K require formal competitive bids.

20. Sole Brand/Sole Source • Used when full and open competition is not possible • Each sole brand and sole source shall have a written justification and shall include the following: • The unique performance factors required and why are they required; • What other source/brands have been considered and why were they rejected (name names) • Sole brand and sole source shall not be justified because of: • A lack of advanced planning • Concerns related to the amount of funds available, cost • A contract or purchase made that was not competitively bid with a price of zero or below market can not be amended/ increased or a new order placed above the bid thresholds using the sole source / sole brand as a justification for not bidding. • Personal preference • Vendor performance, local service, maintenance and delivery

21. Disabled Veteran Business Enterprise (DVBE) / Small Business/Micro Business (SB/MB) • The state established a goal of at least 3% DVBE participation in all contracts, PO’s and PCC purchases. • All competitive bids require DVBE participation. • The state established a goal for the use of SB/MB in at least 25% of the State's overall annual contract dollars • All competitive bids must offer a 5% preference to SB/MB DVBE SB/MB Option: May be used for Goods, ITR, Services and Public Works. Contract value between $5K and $250K No advertising required Must obtain bids from 2 or more DVBE firms or 2 or more SB/MB firms.

22. Prohibited Practices • Use of SDSU name for personal gain • Use of SDSU name to obtain discounts for personal use • Conflict of Interest – purchase made from a company you own or from which you will benefit • Endorsement of products • Use of the CSU name without approval • Restrictive bid specifications • Splitting of orders to avoid bidding • Advance payments (Procurement Credit Card is not considered an advanced payment)

23. After the Fact (ATF) Plan Ahead • What is an After the Fact? Commitment of State Funds or Resources without an authorized Purchase Order. • Risk – Individual may be held personally responsible for payment to the Supplier. Staff/Faculty/Supplier may not be reimbursed or paid by the University for goods or services. Duplicate shipment of orders. • Ways to avoid an ATF: University Procurement Credit Card, Open Purchase/Service Order, OfficeMax on-line Ordering, Request Rush Purchase Order, Plan Ahead. • Educate Suppliers – It is important that Suppliers understand up front a PO is required prior to shipment of goods or services. Individuals who request goods or services without obtaining a PO in advance send a confusing message to our Suppliers. ATF’s delay payments causing loss of payment discounts to the campus. If you have an urgent need call us for assistance!

24. Deadlines SUBMISSION DATES FOR THE CURRENT 2011/2012 FISCAL YEAR: http://bfa.sdsu.edu/~leap/ • MARCH 1, 2012: Submission of final close requests for goods and service orders charged to the 2011/2012 fiscal year. CPM will continue to receive and process final close requests after the March 1st deadline. Timely submission of your final close requests will free up funds for submissions of any additional 2011/2012 requisitions. • .APRIL 2, 2012: Requisitions requiring bidding which exceed $50,000 for goods and services and requisitions exceeding $600,000 for major capital construction projects charged to the 2011/2012 fiscal year. • MAY 1, 2012: Final access to Oracle for submission and approval of requisitions charged to the 2011/2012 fiscal year for commodities and services less than $50,000 and requisitions for Minor Construction (<$600K) projects with fast track bidding documentation included. All requisitions charged to the 2011/2012 must be approved by 4:30 p.m. • MAY 2, 2012 All requisitions not approved by end of business on May 1st with status of in process, returned or rejected will be cancelled. See below for 2012/2013 submission dates. • JUNE 19, 2012: OfficeMax orders must be placed and posted to your account by June 19,2012 in order to be charged to your 2011/2012 fiscal year budget • JUNE 22, 2012: Procurement Credit Card (PCC) charges must be made by June 21, 2012 and POSTED by June 22, 2012, in order to be charged to your 2011/2012 fiscal year budget. • JUNE 30, 2012 All goods/services for 2011/2012 must be ordered, received, and delivered by this date. Orders for goods or services received after June 30, 2012 must be charged to the appropriate 2012/2013 fiscal year. • SUBMISSION DATES FOR THE FUTURE 2012/2013 FISCAL YEAR: • JUNE 4, 2012: Access to the 2012/2013 General Ledger (GL) (01-JUL-2012) will be enabled for submission of requisitions charged to the 2012/2013 fiscal year. Requisitions submitted using the current year GL will be returned to the department for re-submittal using the 01-JUL-2012 GL date. Delivery of goods and services charged to the 2012/2013 FY must be scheduled after July 1, 2012. • JUNE 29, 2012: Access to Oracle for submission and approval of requisitions charged to the 2012/2013 fiscal year will be disabled to allow for the year end closing process. • JULY 6, 2012: Access to Oracle for submission of 2012/2013 requisitions will be enabled.

25. Are there any questions?