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PUBLIC PURCHASING IN FLORIDA

PUBLIC PURCHASING IN FLORIDA. PROCUREMENT METHODS (REV. 09/06/05). PROCUREMENT METHODS. GENERALLY AVAILABLE, All Jurisdictions: Small purchase Invitation to Bid (ITB) Request for Proposal (RFP or CSP) Single source/Sole source Emergency.

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PUBLIC PURCHASING IN FLORIDA

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  1. PUBLIC PURCHASINGIN FLORIDA PROCUREMENT METHODS (REV. 09/06/05)

  2. PROCUREMENT METHODS GENERALLY AVAILABLE, All Jurisdictions: • Small purchase • Invitation to Bid (ITB) • Request for Proposal (RFP or CSP) • Single source/Sole source • Emergency

  3. FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK First consider in-place agreements: • State Term Contract (possibly RFQ) • FARF workshop (RESPECT) • Correctional work program (PRIDE) • Agency Term Contract • State Purchasing Agreement • Alternate Contract Source

  4. FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK (2) Second, consider sourcing “from scratch.” • Discretionary purchase • Exempt purchase • Informal competitive purchase (quote, informal bid) • Formal competitive: ITB, RFP, ITN • Single source • Emergency IMPORTANT TO CODE CORRECTLY IN MFMP

  5. PROCUREMENT METHODS State Term Contracts

  6. STATE TERM CONTRACTS • STCs are requirements contracts entered into by State Purchasing pursuant to s.287.042 & s.287.056(1) Fla. Statutes & 60A-1.002(4)(m) & 60A-1.044, FAC • They combine common requirements to achieve deep discounts, and to provide administrative efficiencies • State agencies must use state term contracts unless certain exceptions apply • Eligible users, including state universities and political subdivisions may use STCs

  7. OBJECTIVES OF STATE TERM CONTRACTING Our goal is to deliver State term contracts, strategically sourced, administratively easy to use, with the best value (prices, item/service quality, terms and conditions) obtainable by a customer of our stature.

  8. STATE TERM CONTRACTS • There are some multi-vendor state term contracts (vehicles, copiers, IT consulting, others), based on a variety of factors: • Specifications • Geographic area • Acquisition method (e.g. outright purchase or lease) • Competition among state contractors

  9. STATE TERM CONTRACTS New for fiscal year 04-05 and 05-06 • 640-002-06-1 - - Tissues and Towels, Paper • 972-310-06-1 - - Court Reporting Services • 725-330-05-1 - - Wireless Voice Services • 070-001-05-1 - - Automobiles & Light Trucks • 070-700-05-1 - - Medium and Heavy Trucks

  10. STATE TERM CONTRACTS • 200-050-05-1 - - Uniforms • 914-000-05-R - - RESPECT-Purchase from the Blind or Severely Handicapped Central Non-Profit Agency • 425-001-05-P - - PRIDE: Office Furniture • 475-000-05-1 - - Medical and Dental Supplies • 518-020-05-1 - - Rental Vehicles • 680-850-05-1 - - Body Armor (Protective Vests)

  11. STATE TERM CONTRACTS • 680-650-05-1 - - Officers' Equipment • 973-890-05-1 - - Computer Software Training • 991-160-05-1 - - Courier Services • 991-490-05-1 - - Lawn Care Services • 991-705-05-1 - - Recycling Services, End of Life Electronics Equipment • 991-300-05-1 - - Pest Control Services

  12. CONTRACT EXCEPTIONS • The use of state term contracts is mandatory for agencies [Rule 60A-1.044(2), FAC], optional for other eligible users. • No contract can be devised for which no exception will ever occur, and the rules reflect this fact. • Florida purchasing rules indicate acceptable reasons, and the process to follow [Rule 60A-1.044(3), FAC]. • Some STCs include some degree of “built in” exception authority.

  13. REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60A-1.044(3) FAC • Critical delivery schedules which the ST contractor cannot provide. • Need for compatibility with existing equipment. • Non-availability of service. • Applications of unique technical requirements, product quality or specifications that differ from those of the contract commodities or services.

  14. REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60A-1.044(3) FAC • Exceptions are also authorized if • The purchase does not exceed the greater of $250 or any other amount authorized in the contract, or • The state term contract is expressly designated as a non-exclusive contract.

  15. CONTRACT EXCEPTION PROCEDURE [60A-1.044(3)(b) FAC] • Exceptional purchases shall be documented by the agency making those purchases. • The agency shall determine the conditions and circumstances justifying the purchase. • Note: Exceptions exceeding Category Two are subject to the competitive or other sourcing requirements of statute and rule.

  16. PROCUREMENT METHODS FARF workshop (RESPECT)

  17. FARF workshop (RESPECT) • Requirements are established in Chapter 413, Florida Statutes • DMS authority & responsibility are established by s.413.035 and s. 287.042(1)(g), Florida Statutes • 413.031 Products, purchase by state agencies and institutions: Any purchasing officer who violates the provisions of this section shall be guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083. • Web site at www.respectofflorida.org

  18. FARF workshop (RESPECT) • S.413.036(1): If any agency intends to procure any product or service on the procurement list, that agency shall, … procure such product or service … from a qualified nonprofit agency … if the product or service is available within a reasonable delivery time…. this act shall have precedence over any law requiring state agency procurement of products or services from any other nonprofit corporation ...

  19. FARF workshop (RESPECT) • 413.036(4)  No similar product or service of comparable price and quality … may be purchased from any source other than the nonprofit agency for the blind or for the severely handicapped if the nonprofit agency certifies that the product is manufactured or supplied by, or the service is provided by, the blind or the severely handicapped and the product or service meets the comparable performance specifications and comparable price and quality requirements as determined by the department or an agency….

  20. FARF workshop (RESPECT) • S.413.036(2): The provisions of part I of chapter 287 do not apply to any purchase of commodities or contractual services made by any legislative, executive, or judicial agency of the state from a qualified nonprofit agency for the blind or for the other severely handicapped.

  21. FARF workshop (RESPECT) S. 413.036(3)  If, pursuant to a contract between any legislative, executive, or judicial agency of the state and any private contract vendor, a product or service is required by the Department of Management Services or on behalf of any state agency that is included on the procurement list established by the commission pursuant to s. 413.035(2), the contract must contain the following language:

  22. FARF workshop (RESPECT) "IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES THAT ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACTSHALL BE PURCHASED FROM A NONPROFIT AGENCY FOR THE BLIND OR FOR THE SEVERELY HANDICAPPED THAT IS QUALIFIED PURSUANT TO CHAPTER 413, FLORIDA STATUTES, IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION413.036(1) AND (2), FLORIDA STATUTES; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THE STATE AGENCY INSOFAR AS DEALINGS WITH SUCH QUALIFIED NONPROFIT AGENCY ARE CONCERNED."

  23. PROCUREMENT METHODS Correctional work program (PRIDE)

  24. CORRECTIONAL WORK PROGRAM (PRIDE) • Requirements are established in Chapter 946, Florida Statutes • DMS authority & responsibility are established by s.946.515 and s. 287.042(1)(d-f), Florida Statutes

  25. CORRECTIONAL WORK PROGRAM (PRIDE) Legislative intent (Chapter 946, FS): • To reinforce relevant education, training, and post release job placement and help reduce recommitment • To serve the security goals of the state through the reduction of idleness of inmates and to provide incentives for good behavior • To reduce the cost of state government by operating enterprises primarily with inmate labor

  26. CORRECTIONAL WORK PROGRAM (PRIDE) • To serve the rehabilitative goals of the state by duplicating…the operating activities of a free-enterprise type of profit making enterprise • To aid inmates in adjustment after release and to prepare inmates for gainful employment • The state shall have a continuing interest in assuring continuity and stability in the operation • The corporation will devise and operate correctional work programs to utilize inmates of all custody levels, with specific emphasis on reducing idleness among close custody inmates.

  27. CORRECTIONAL WORK PROGRAM (PRIDE) • No similar product or service of comparable price and quality found necessary for use by any state agency may be purchased from any source other than the corporationif the corporation certifies that the product is manufactured by, or the service is provided by, inmates (http://www.peol.com/state.htm) and the product or service meets the comparable performance specifications and comparable price and quality requirements as specified under s. 287.042(1)(f) or as determined by an individual agency as provided in this section. The purchasing authority of any such state agency may make reasonable determinations of need, price, and quality with reference to products or services available from the corporation. (s.946.515 FS)

  28. CORRECTIONAL WORK PROGRAM (PRIDE) • In the event of a dispute between the corporation and any purchasing authority based upon price or quality under this section or s. 287.042(1)(f), either party may request a hearing with the Department of Management Services and if not resolved, either party may request a proceeding pursuant to ss. 120.569 and 120.57, which shall be referred to the Division of Administrative Hearings

  29. CORRECTIONAL WORK PROGRAM (PRIDE) • S.946.515(4)  The provisions of part I of Chapter 287 do not apply to any purchases of commodities or contractual services made by any legislative, executive, or judicial agency of the state from the corporation. Exception: Printing (ref.283.33 FS).

  30. Correctional work program (PRIDE) • (6)  If, pursuant to a contract between any … agency … and any private contract vendor, a product or service is required … (and) is certified by or is available from the corporation …, and has been approved in accordance with subsection (2), the contract must contain the following language:

  31. CORRECTIONAL WORK PROGRAM (PRIDE) • IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES WHICH ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACTSHALL BE PURCHASED FROM THE CORPORATION IDENTIFIED UNDER CHAPTER 946, F.S., IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 946.515(2), AND (4), F.S.; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THIS AGENCY INSOFAR AS DEALINGS WITH SUCH CORPORATION ARE CONCERNED.

  32. CORRECTIONAL WORK PROGRAM (PRIDE) PRIDE price agreements with DMS are available at: http://fcn.state.fl.us/st_contracts/prideindex.htm Other PRIDE products are available through the PRIDE web site at http://www.peol.com/

  33. PROCUREMENT METHODS Agency Term Contract

  34. AGENCY TERM CONTRACT • A term contract is defined in s.287.012(28) as “an indefinite quantity contract to furnish commodities or contractual services during a defined period.” • An agency, like State Purchasing, can and should examine repetitive small purchases to determine the possibility of consolidation (aggregation) into a term contract.

  35. AGENCY TERM CONTRACT The purpose of an agency term contract is for that agency similar to the purpose of a state term contract: To combine common requirements in order to achieve deep discounts, and to provide administrative efficiencies.

  36. AGENCY TERM CONTRACT Methods of soliciting an agency term contract can include: • Informal bid • Invitation to Bid • Request for Proposal • Invitation to Negotiate • Single Source • Emergency

  37. Agency Term Contract Agency Term Contracts can be established to enable • Definite quantity/schedule purchase orders • Indefinite quantity/schedule “blanket” term purchase orders • Term purchase orders with definite and indefinite quantity/schedule line items • Individual delivery/performance purchase orders • Purchasing card transactions • All of the above

  38. PROCUREMENT METHODS STATE PURCHASING AGREEMENTS

  39. STATE PURCHASING AGREEMENTS • Reflect a policy change implemented Jan. 16, 2004, to replace vendor-driven, non-competitive SNAPS agreements with buyer-driven competitive state purchasing agreements. • Are solicited by State Purchasing informally upon buyer request accompanied by commodity specifications and/or a contractual services statement of work.

  40. STATE PURCHASING AGREEMENT INTENDED USE • The SPA is intended for individual purchases not exceeding the state agency bid threshold, Category 2 ($25,000) • If purchases exceeding the bid threshold for state agencies ($25,000) are foreseen during the term of the SPA, the buyer cannot use the SPA, but must combine and “bid” the requirements.

  41. STATE PURCHASING AGREEMENT The form for requesting a SPA and the terms and conditions applicable are posted on the State Purchasing web site at http://www.myflorida.com/myflorida/business/onlineforms/buypurchinfoforms.html

  42. STATE PURCHASING AGREEMENT • State Purchasing Agreements are 12 month agreements with a single awarded vendor per item or service or area, or combination thereof • Each SPA is available for use by both state agencies and other eligible users, but is not mandatory for any user

  43. STATE PURCHASING AGREEMENT • ADVANTAGES • More competitive than a one-time informal bid by one buyer • After specs are developed, State Purchasing provides the terms & conditions, and has primary responsibility for the solicitation, evaluation and award • Resulting agreement available for other transactions • Usage not mandatory; may be used as benchmark for negotiation or further competition. • DISADVANTAGE • May require more time than a one-time informal bid by one buyer

  44. PROCUREMENT METHODS ALTERNATE CONTRACT SOURCE

  45. ALTERNATE CONTRACT SOURCE • Among “powers & duties” of the division, s. 287.042(16) FS allows State Purchasing to “evaluate contracts let by the Federal Government, another state, or a political subdivision for the provision of commodities and contract services…authorizing an agency to make purchases ….”

  46. ALTERNATE CONTRACT SOURCE • Further authority is contained in • S.287.057(5)(b) FS, as an exception to bidding, along with emergency and single source purchases • Rule 60A-1.047, FAC, referencing term contracts or requirements contracts competitively established by other governmental entities.

  47. ALTERNATE CONTRACT SOURCE • The form for requesting an alternate contract source is available on the State Purchasing web site at http://www.myflorida.com/myflorida/business/onlineforms/buypurchinfoforms.html

  48. ALTERNATE CONTRACT SOURCE Caveats before deciding: • Consider whether market conditions have changed and whether the contract price is indexed. • Consider whether the quantity priced was more or less than the quantity you wish to purchase and the possible impact of price breaks. • Consider applicability of the terms and conditions. • Obtain vendor consent.

  49. PROCUREMENT METHODS Discretionary purchase

  50. DISCRETIONARY PURCHASE • Discretionary purchases are small purchases under the $2,500 threshold requiring informal bids in accordance with Rule 60A-1.002(2), FAC. • The rule advises “good purchasing practices,” which may include quotes. • As with bid thresholds, consider per purchasing office, and do not divide.

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