Department of Procurement & Supply Presents: Purchasing Commodities and Services at the University of Maryland

1. Department of Procurement & Supply Presents:Purchasing Commodities and Services at theUniversity of Maryland

2. Who We Are

3. Director James Stirling Small & Minority Business Programs Administrator Victoria Leatherwood Compliance Specialist Kathryn Harris I.T. Support Staff (Comptroller) Joseph Lederman Associate Director Supplies & Services James Haley Location: Chesapeake Bldg Assistant Director Physical Distribution Vacant Location: PDC Associate Director Construction & Facilities Services Vacant Location: 0410 Service Bldg Assistant Director Delegated Procurement Marty Newman Location: Chesapeake Bldg Coordinators Mary Ann Zimmerman Bruce Brewer April Weimer Terrapin Trader Manager Mike Painter Storekeepers Carl Merica Lamont Timmons Support Staff George Shettle Construction & A/E Coordinators Rex Fitch Thomas Blanchard Joyce Falkinburg Procurement Specialists Denise Elliott Belle V Gentry Buyers/Buyer Assoc. Christine O’Brien Jennifer Ireland Tanida Sombatpium Purchasing Card Administrator Kristina Libby Support Staff Kristin Stenson Manager Vacant Procurement Specialists Paula Mandelman Vickie Underwood Lucy Sanchez Patty Butner Jeffrey Turner Buyers Kathy Barrett Tracey Schlegel Administration Tammy Yanulevich Melvin Contee Transportation & Distribution Manager Doug Waterman Storekeepers Nick Trainor George Williams Harry Teabout Charles Koehnlein Facilities Managers Karen Elvidge Lisa Thompson Procurement Specialists Vickie Stoner Support Staff Carole Simpson Administration Business Manager Harry Sheets Support Staff Leslie Mauck General Stores Manager Sidney Salazar Support Staff Commodities & Services

4. MISSION • In support of the University’s mission of excellence in education, research, outreach and collaborative partnerships with the greater community, the Department of Procurement and Supply will: • Establish and administer contracts effectively • Procure facilities, goods and services for best value • Delegate procurement authority to promote efficiency • Provide value-added physical distribution services • Ensure University business is conducted in a fair and open environment, in full compliance with applicable laws and regulations

5. Contacting Procurement • Procurement & Supply Home Page • www.Purchase.umd.edu • Main Information 301-405-5813 • Main Fax 301-314-9565

7. 6 Steps to Procurement

8. 6 Steps to Procurement • Step 1 Consider borrowing or purchasing used or environmentally friendly • Step 2 Are the goods or services available in-house? • Step 3 Does the State require that we purchase the goods or services from “Preference Providers”?

9. 6 Steps to Procurement (con’t) • Step 4 Is the transaction within Delegated Procurement Authority? • Step 5 Submit a Requisition for Purchase to the Department of Procurement and Supply. For competitive purchases include: • Requisition for Purchase • Specifications • Performance requirements • Estimated dollar amount • Funding source • click here: Instructions for How to Prepare a Requisition

10. 6 Steps to Procurement (con’t) • Step 6 Contact the Department of Procurement and Supply with questions/concerns • Main Information 301-405-5813 • Main Fax 301-314-9565 • Note: This training does not cover Construction/Facilities Procurement. Contact Joe Vogel (301-405-2898) or Karen Elvidge (301-405-3269

11. Ethics

12. Code of Ethics • Give Vendors Fair and Equal Consideration • Strive to obtain the maximum value for each dollar of expenditure • Do Not Accept Gifts or Gratuities such as • Tickets to sporting or entertainment events, golf outings, meals

13. Code Of Ethics (Continued) • Avoid Appearance of Conflict of Interest • Do not place orders with relatives or firms with whom you have some ownership or relationship • Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation

14. Types of Procurements • Delegated to Departments • Processed by Procurement & Supply: • Micro • Simplified • Formal • Sole Source • Also Construction/Facilities Procurement, but specifics are not covered in this training. Contact Joe Vogel (301-405-2898) or Karen Elvidge (301-405-3269)

15. Delegated Procurement

16. Delegated Procurement • Campus has authority to spend up to $5,000* • *Purchasing Card • *Small Procurement Orders • *Consultant Contract up to $5,000 • Master Contracts • Travel Card

17. Delegated Procurement • Primary Tool: Purchasing Card • Cardholder Agreement and Training with Test Required • Purchases limited to $5,000 or less per transaction • Certain Items/Services Restricted (Click here for specifics)

18. Purchasing Card • Issued in Individual’s Name • Not for Personal Purchases • No Cash and Cash Equivalents (gift cards, etc.) • Not for Travel or Restaurants • Cards Must NOT be shared • No Splitting Orders to Bypass Procurement Regulations • Pay Fair and Reasonable Prices

19. Master Contracts • Approx. 50 Master Contracts available • Many Master Contracts with Small and Minority Vendors • Office Supplies, Computer Peripherals, MRO Supplies available through General Stores • See Listing on website (Click here for link – requires UM user ID and password)

21. Types of Procurements Processed by Procurement & Supply

22. Types of Procurements Issued by Procurement & Supply Classification by Size, Initiated by Requisition • Micro Procurement <$5,000 • Simplified Procurement >$5,000 but <$100,000 • Formal Procurement >$100,000 • *Sole Source – Any Amount >$5,000

23. Requisition for Purchase • Transaction is generally initiated by creating a Requisition and submitting it to Procurement and Supply (Click here for Instructions) • Requisition Form on website (Click here to access form) • Assignment of Requisition Numbers on website

25. Requisition Must Have • Approval by authorized signatory (authorization card on file in Procurement & Supply) • Clear specifications • Complete information • who, what, where, when, why • Sufficient time for process • Give a realistic date for delivery - not ASAP

26. Writing Specifications 3 Major Types of Specifications 1. Design – Identify minimum requirements2. Performance – Describe what you expect the good or service to produce3. Combination of design and performance

27. Simplified Procurement

28. Simplified Procurement • $5,000 to $100,000 • Handled by Procurement and Supply except Master Contract Releases • Goal is to issue purchase order with 14 days • Simplified refers to the more streamlined process Procurement Specialists in Procurement and Supply use to execute these transactions

29. Request For Quotation • Typically the Procurement Specialist will send a Request For Quotation (RFQ) to several suppliers. Will be considered for SBE/MBE procurement • Based only on criteria stated in the solicitation • RFQ - low price that meets the specifications

30. Formal Procurement

31. Formal Procurement • Greater than $100,000 • Request For Proposals (RFP) • Invitation For Bid (IFB) • Handled by Procurement and Supply • Customer Prepares the Statement of Work • Customer Assists in the Development of a Milestone Plan • Requires More Teamwork between Procurement and Customer • Award Based on Best Value

32. Publication of the Requirement • e-Maryland Marketplace • Others as necessary • Length of time before due date is now flexible

33. RFP Process • Pre-Proposal Conference • Evaluation of Technical Proposals • By Committee • Written Clarifications/Oral Presentations • Evaluation of Price Proposals • Award by Best Value

34. Sole Source Procurement

35. What is a “Sole Source” Purchase? Sole Source Procurement: “A situation created due to the inability to obtain competition. May result because only one vendor or supplier possesses the unique ability or capability to meet the particular requirements of the solicitation.” –NIGP Online Dictionary • Equipment, Supplies and Consumables: • Products can only be purchased directly from a manufacturer that has NO resellers or distributors. • If resellers are available the purchase is NOT a sole source. • Consultants and other Specialized Services • A Consultant has a unique set of knowledge, skills and abilities that make him/her the ONLY consultant that can do the required work. • A Scope of Work is required for all consulting contracts.

36. What is Not a Sole Source? • A company offers a great price or deal, much better than its competitor. • A company has the quickest delivery time. • A company is known for providing the “best” product. • A contract with the company already exists. • This company provided the product last time. • Sold by the manufacturer but there are resellers.

37. To initiate a Sole Source Purchase include: Requisition (The template is available on the Procurement and Supply webpage: http://www.purchase.umd.edu/ , by selecting the “Forms” link. ) • Estimated dollar amount • Funding source • Scope of Work or Performance requirements. All mandatory requirements must be clearly identified. • Sole Source Justification form. • The department provides justification using a Sole Source Justification form. The template is available on the Procurement and Supply webpage: http://www.purchase.umd.edu/ , by selecting the “Forms” link. It must be filled out and signed. • Market Analysis- every sole source justification form must include information documenting the department’s market research to find all available vendors able to provide the required goods or services.

38. Writing a Sole Source Determination Questions that address the type of information that should be included in the sole source: • What are we purchasing? • What are the technical requirements? • Is this the only available product/service that meets all requirements? • How do we know this is the only product/service that will work? • Who is the manufacturer? • How do we know this is the only company/individual that can supply this product/service? • Are there any resellers or distributors? • What market research has been done to look for other products/services that might meet your requirements? And what were the results of that market research? • What are the specific problems with any competitor’s products?

39. Additional Information about How Sole Source Purchases are Processed • The more information included in the sole source justification form, the better! • If the equipment or service provider was specifically listed in a grant or contract as a key part of the University’s effort, provide pertinent pages of the grant or contract, with the sole source form. • The information must clearly explain the market research that was completed to identify this purchase as a sole source. • Procurement will typically perform independent research to confirm that this is the only available source. If Procurement finds there are resellers or distributors available, then a formal request for quotation will be issued.

40. Sole Source Contract • Formal proposal from Contractor • Contractor Reviews and Signs our Terms, Conditions, Affidavits and Certifications

41. Sole Source Contract • Procurement Determines Price Reasonableness • Procurement Determines Contractor Responsibility • Past Performance • Technical Capabilities • Financial Stability • Procurement Issues Contract

42. Special Approvals • All purchases using Bond Fundsrequire prior approval of the MD Board of Public Works • Who? The Governor, Comptroller and Treasurer • Contracts over $5 Million require prior approval of the USM Board of Regents

43. Vendor Contracts

44. Vendor Contract Review • Only Procurement can sign vendor contracts, agreements • Insurance • University is self insured • Need a certificate of insurance? Contact Risk Manager, Donna McMahon, DES • Vendor Agreements, Licenses, Waivers, Contracts and Contract Modifications • All such documents, regardless of cost, require Procurement’s review for objectionable terms

45. Consulting Agreements/Contracts

46. Consulting Agreements • Consulting services are, in principle, no different from any other contract for services • Contracts over $5,000 must be coordinated with Procurement • Contracts less than $5,000, use UM consulting agreement on website • Travel and accommodations costs can be included in the contracts • travel and accommodations should be consistent with University travel guidelines.

47. Consulting Agreements • Cannot treat consultants as employees, nor can a consultant have been an employee during the calendar year • To avoid conflict with IRS rules consult with Procurement before giving the consultant a notice to proceed when within delegated procurement

48. Purchasing Office Furniture

49. Furniture Purchases • Maryland Correctional Enterprises (formerly State Use Industries) must be evaluated for all furniture purchases • If Maryland Correctional Enterprises (MCE) can satisfy your requirements we must use MCE • Furniture showroom in Physical Distribution with Representative

50. Minority and Disadvantaged Business Enterprise ProgramAND Small Business Reserve Program