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 Larry Walton Location: PDC Associate Director Construction & Facilities Services Joseph Vogel Location: 0410 Service Bldg Assistant Director Delegated Procurement Marty Newman Location: Chesapeake Bldg Coordinators Mary Ann Zimmerman Bruce Brewer Terrapin Trader Manager Mike Painter Storekeepers Carl Merica Lamont Timmons Support Staff George Shettle Construction & A/E Coordinators Rex Fitch Thomas Blanchard Procurement Specialists Denise Elliott 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 Richard Fowlie April Weimer Buyers/Buyer Assoc. Kathy Barrett Jeffrey Turner Administration Tammy Yanulevich Melvin Contee Transportation & Distribution Manager Doug Waterman Storekeepers Nick Trainor George Williams Harry Teabout Charles Koehnlein Facilities Manager Karen Elvidge Procurement Specialists Lisa Thompson Vickie Stoner Support Staff Carole Simpson Administration Business Manager Harry Sheets Support Staff Tracey Schlegel General Stores Manager Sidney Salazar Support Staff Leslie Siciak 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. Sole Source Procurement • Procurement without competition is authorized under limited conditions and subject to written justification documenting the conditions that preclude the use of a competitive process • Customer makes request and provides justification (Click here to access sole source justification form)

36. Sole Source Determination • Procurement reviews justification • Performs independent research • Writes Sole Source Determination • Obtains approval (can require approval from VPAA; determined by dollar amount)

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

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

39. Special Approvals • All purchases using Bond Funds require 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

40. Vendor Contracts

41. 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

42. Consulting Agreements/Contracts

43. 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.

44. 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

45. Purchasing Office Furniture

46. 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

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

48. Minority Business Enterprise • Minority Business Enterprise (MBE) • State socioeconomic program to support historically underutilized businesses. • House Bill 306 - Maryland Law sets goals

49. Certification for MBE Contractors • To be counted, a firm must be certified by Maryland Department of Transportation • Approx. 4000 firms certified • Database available at • http://www.mdot.state.md.us/cgi-bin/mbedir/mbedirectory • link from Procurement’s web site

50. Minority Business Participation Goal • Goal is 25% of dollars to be spent with MBE contractors or subcontractors • 10% sub-goal for women owned businesses and 7% for African American owned businesses