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Purchasing Changes LEARN - May 14 & 15, 2013

Purchasing Changes LEARN - May 14 & 15, 2013. Bruce Cherrin Chief Procurement Officer UNM Procurement Services. NEW LAW SUMMARY . Four (4) legislative bills affecting Procurement were passed by the New Mexico State Legislature (NMSL) this session and signed by Governor Susana Martinez.

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Purchasing Changes LEARN - May 14 & 15, 2013

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  1. Purchasing ChangesLEARN - May 14 & 15, 2013 Bruce Cherrin Chief Procurement Officer UNM Procurement Services

  2. NEW LAW SUMMARY Four (4) legislative bills affecting Procurement were passed by the New Mexico State Legislature (NMSL) this session and signed by Governor Susana Martinez

  3. NEW NMSL LAWS All Effective 6/14/13 Senate Bill 182 Senate Bill 266 Senate Bill 340 Senate Bill 443

  4. SB 443 – The Good News Formal Bid Limits Increase to $60,000 • Changes Small Purchase Limit • Changes Informal Bid Limit

  5. SB 443 – The Good News Goods Below $10,000 or Services Below <$5,000 • Small Purchase Goods $10,000.01 to $20,000 • One Quote or Other Documentation which describes price and product

  6. SB 443 – The Good News Goods $20,000.01 to $60,000 – 3 Quotes • The Buyer may use 1 quote in the following circumstances: • Existing Contract (UNM, GSA, SPD, etc) • Urgency – Buyer’s sole discretion • Buyer’s Experience – Buyer’s determination that 1 quote represents fair value

  7. SB 443 – The Good News Services or Goods and Services Combined 5,000.01 to $60,000 – • Informal Bid • Existing Contract • 3 Quotes (1 /Quote for the following): • Existing Contract • Urgency • Buyer’s Experience

  8. SB 443 – The Good News Bid Limit Increases Impact on UNM Requisitioners: Fewer Purchases will be subject to the Formal Bidding Process or New Formal Sole Source Justification

  9. SB 443 – The Good News Bid Limit Increases Effective 6/14/2013

  10. SB 182 – The Bad News New “30-Day Challenge” Law for Sole Source Purchases 30 Day Waiting Period for all Sole Source Purchases, no exceptions

  11. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases • Applies only to Sole Sources above Formal Bid Limits • Requires Purchasing to Post a “Notice of Intent to Award” for a Sole Source Procurement 30 days prior to the purchase

  12. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases • Your Sole Source Form will be posted in the UNM Sunshine Portal to be viewed and challenged by other vendors

  13. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases • If the 30-day waiting period elapses without a challenge, your Sole Source Purchase can then be made

  14. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases • If your Sole Source is Challenged, Purchasing will follow PROTEST guidelines as posted at http://www.unm.edu/~purch/reg11.pdfand may be forced to use the Bid Process for your purchase

  15. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Also shifts Purchasing’s Responsibility on a Sole Source from Good Faith Effort to Due Diligence • Purchasing will have to verify the information on your Sole Source form

  16. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: • Substantial Increase in Sole Source Procurement Processing Time

  17. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: • Requisitioners will need to plan well in advance of a Sole Source Purchase • No longer a “Fast Track” method of Purchase

  18. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: • Might be faster to go out to Bid • Ex. Sole Source Challenge on Day 29

  19. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: Your Sole Source Forms will be subjected to public scrutiny • Purchasing will require more thorough documentation than in the past

  20. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on UNM Requisitioners: Your Sole Source Forms will be subjected to public scrutiny • 1-2 sentence Sole Source Justifications will no longer be adequate

  21. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases • “Per Terms of Grant” is No Longer sufficient for Sole Source Justification • Must now justify WHY it is required for Grant and why other substitutes are not acceptable

  22. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases • Your Sole Source Justification Form must consider these factors: • What is unique about it • What other vendors sell it • Why it meets your needs and others do not

  23. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases In order to protect you from Sole Source Challenges, UNM Purchasing is currently updating our Sole Source Form to require a more thorough justification

  24. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases 30-Day Challenge Law is effective 6/14/13 • Therefore, the last possible day to issue a Sole Source PO using FY13 funds is the day before the law is effective, Thursday, 6/13/13.

  25. SB 182 – The Disturbing News? Willful Violation of the Procurement Code Penalties: • 4th Degree Felony for Purchase > $50,000 • Misdemeanor for Purchase < $50,000

  26. SB 182 – The Disturbing News? Willful Violation of the Procurement Code • Definition of “willful” can apply to both action and inaction

  27. SB 182 – The Disturbing News? Willful Violation of the Procurement Code What does this mean to me as a Requisitioner? Should I be worried???

  28. SB 182 – The Disturbing News? Willful Violation of the Procurement Code This law will have NO impact to a Requisitioner provided: • Purchase Order is in place BEFORE receiving goods/service • Requisitioners act in good faith

  29. SB 182 – The Disturbing News? Willful Violation of the Procurement Code • Will mostly pertain to actions of Buyers in Purchasing but could apply to UNM Departments if they act without Purchasing

  30. SB 182 – The Disturbing News? Willful Violation of the Procurement Code Department Example of Willful Violation: Department hires a consultant on their own (without Purchasing/PO). Invoiced prior to PO being issued. • If purchase is over $50,000 – 4th degree felony • If purchase is under $50,000 - Misdemeanor

  31. SB 182 – The Disturbing News? Willful Violation of the Procurement Code Other criminal laws that affect Departments continue to be in effect (Fraud, etc): • Illegal Kickbacks • Fraudulently supplying information for Sole Source, Bids, etc

  32. SB 182 – The Disturbing News? Willful Violation of the Procurement Code • Effective 6/14/13

  33. Other Procurement Law Changes SB 182 - Emergency Procurement (rare) • UNM Purchasing must now be directly involved • Emergency Procurement Form must now be posted within 3 business days after award • Forms will be posted in UNM Sunshine Portal • UNM Purchasing is creating a new form

  34. Other Procurement Law Changes SB 340 – Design and Build Projects • Eliminates $10 Million threshold • Should increase use of D&B

  35. Other Procurement Law Changes SB 266 – Architectural/Construction • Raises limits for Architectural & Engineering services from $200,000 to $2,000,000 over 4-year period

  36. Other Procurement Law Changes SB 443 – Certification/Exemptions • Establishes certification and training requirements for Chief Procurement Officers

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