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Doing Business with the State of New Mexico

Doing Business with the State of New Mexico. CDBG Application Workshop Las Cruces, New Mexico October 6, 2011. Ross Boom Deputy Director State Purchasing Division. Basis Behind the State Purchasing Process. Procurement Code Chapter 13 Procurement Regulations NMAC 1.4.1 Home Rule

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Doing Business with the State of New Mexico

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  1. Doing Business with the State of New Mexico CDBG Application Workshop Las Cruces, New Mexico October 6, 2011 Ross Boom Deputy Director State Purchasing Division

  2. Basis Behind the State Purchasing Process • Procurement Code • Chapter 13 • Procurement Regulations • NMAC 1.4.1 • Home Rule • (Local Public Bodies) • Best Practices

  3. How the State Buys • Per Procurement Code, Legal Methods: • Competitive Procurement • Invitation To Bid (ITB) • Request For Proposal (RFP) • Cooperative Agreements • General Service Administration Contracts (GSA) • Western States Contracting Alliance (WSCA) • Sole Source • Agency or Statewide Agreements

  4. Dollar Thresholds • Tangible Goods, Services, & Hybrids • <$10,000 Best Obtainable • Btwn $10,000 and $20,000 3 Quotes • > $20,000 Formal Process • Professional Services • < $50,000 Best Obtainable • >$50,000 Formal Process (RFP Only)

  5. Competitive Acquisition • Preferred Method • Establishes Market Price • Must be Fair and Open • Higher Level of Effort Than: • Statewide Agreements (executions under existing Agreements) • GSA/WSCA • Sole Source

  6. Competitive: Invitation To Bid • Used for Commodity Items and Services with Many Sources • Fastest Competitive Turn-around • Public Opening and Reading • Information Publicly Available upon Opening • Bid Tabulation • Evaluation Boolean (Meets Specifications and Mandatories or Not) • Award Low, Responsible/Responsive Bid

  7. Competitive: Request for Proposal • Used for Complex Procurements • Judgment Decisions • Most Time Consuming Procurement Method • Required for Professional Services • Evaluation Committee-Many Factors-Weighted • No Public Opening • Public Viewing After Award • Negotiation • Award Based on Most-Advantageous

  8. Construction Procurement • Differing Methodologies • Design Build (Construction Cost <$400,000 or >$10,000,000) • Two (2) Phased; • Qualifications Portion (Short List-No More than 5) • Construction Portion (Detailed Specifications and Cost) • Evaluated by Committee • Award (After Negotiation) to Highest Ranked Responsible Firm • Performance Risk-- Firm Fixed Price • Design/Bid Build Selection (Construction Separate Procurement) • Manager At Risk (Education Only)

  9. Thresholds for Construction • Additional Requirements and Thresholds • Contractor has All Licenses Required • Not Debarred or Suspended (www.epls.gov & SPD) • Public Works > $25,000 • Bonding (Performance/Payment) >$ 25,000 • Wage Rates > $60,000 • Registration with WFS > $60,000 • Subcontractors Disclosure > $50,000 or 5% • Insurance

  10. Bonding for Construction • Bid Bond-For Submittal of Honoring Bid/Offer • Performance Bond-Ensures Performance/Completion of Project • Labor Bond-Ensure Payment to Workers • Payment Bond-Ensure Payment to Subcontractors and Suppliers • Material Bond-Ensures Payment for Materials • Flow Down to Subcontractors -- All Tiers • Policy to Set Requirements for Whole project • Retention

  11. Cooperative Agreements • Federal General Services Administration Agreements • Authorized to Mirror by Procurement Code • Used for Short Periods, Limited Use • Pricing May be Less Competitive Based on Volume • Other Cooperative Agreements • Western States Cooperative Alliance • Other Cooperatives

  12. Sole Source Procurement • Used Where Only One Provider Exists • Least Desirable Method • Single Vendor; No Competition • No Negotiation Position • No Control on Costs, Terms or Conditions • Documentation Required • Short Term if Possible

  13. Emergency Procurement • Used When Threat to Life, Property, Public Well-being • Immediate Response Required • No Dollar Threshold • Documentation Developed Afterward • Frequently Abused

  14. Protests • Protests • Happen • Respond Quickly and Answer All Raised Concerns • Prevention • Follow Procurement Code • Follow Solicitation • Follow Specifications/Statement of Work • Document All Decisions and Detail Evaluation for RFPs • Signed by Evaluation Committee (Consensus) • Follow Established Procurement Process(es) • Document, Document, Document

  15. What’s New • Procurement Reform Task Force • Laws and Rules Committee • Proposals for Change- Disclosure, Flow-downs • Process and Procedures Committee • Training Committee • Infrastructure/Administration Committee • NM Resident and Contractor Preference • Higher Level of Scrutiny • Migrating to Taxation and Revenue Department • New Website for State Purchasing

  16. Questions ?Answers ? • Important Links: • http://www.generalservices.state.nm.us/statepurchasing/ SPD • http://www.epls.govl Excluded Parties List • http://www.generalservices.state.nm.us/spd/purchasing_guide.pdf Purchasing Guide • http://nmdfa.state.nm.us/Contracts_Review_Bureau.aspx DFA Contracts Review Board • http://www.nmppa.org/ New Mexico Public Purchasing Association

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