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Purchasing Changes Effective - June 14 & July 1, 2013

Purchasing Changes Effective - June 14 & July 1, 2013. Frank Cole Chief Procurement Officer San Juan College Procurement Services. NEW Procurement LAWs.

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Purchasing Changes Effective - June 14 & July 1, 2013

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  1. Purchasing Changes Effective - June 14 & July 1, 2013 Frank Cole Chief Procurement Officer San Juan College Procurement Services

  2. NEW Procurement LAWs • Four (4) legislative bills affecting Procurement were passed by the New Mexico State Legislature (NMSL) this session and signed by Governor Susana Martinez Revised by Berlean Johnson 5/30/13

  3. New Procurement laws • Effective 6/14/13 • Senate Bill 182 • Senate Bill 340 • Effective 7/1/13 • Senate Bill 266 • Senate Bill 443 Revised by Berlean Johnson 5/30/13

  4. Sb-182 Effective 6/14/13

  5. 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 • 30 Day Waiting Period for all Sole Source Purchases, no exceptions • Your Sole Source Form will be posted in the SJC Portal Purchasing Department page to be viewed and challenged by other vendors Revised by Berlean Johnson 5/30/13

  6. 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 • 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 Revised by Berlean Johnson 5/30/13

  7. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on SJC Requisitioners: • Substantial Increase in Sole Source Procurement Processing Time • Requisitioners will need to plan well in advance of a Sole Source Purchase • No longer a “Fast Track” method of Purchase • Might be faster to go out to Bid • Ex. Sole Source Challenge on Day 29 Revised by Berlean Johnson 5/30/13

  8. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases Impact on SJC Requisitioners: • Purchasing will require more thorough documentation than in the past • Your Sole Source Forms will be subjected to public scrutiny • 1-2 sentence Sole Source Justifications will no longer be adequate • “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 Revised by Berlean Johnson 5/30/13

  9. 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.sanjuancollege.edu/pages/318.asp and may be forced to use the Bid Process for your purchase Revised by Berlean Johnson 5/30/13

  10. 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 Revised by Berlean Johnson 5/30/13

  11. SB 182 – The Bad News New 30-Day Challenge Law for Sole Source Purchases In order to protect you from Sole Source Challenges, SJC Purchasing has updated our Sole Source Form to require a more thorough justification Revised by Berlean Johnson 5/30/13

  12. SB 182 – The Disturbing News? Willful Violation of the Procurement Code Penalties: • 4th DEGREE FELONY!!! For Purchase of $50,000 or more • Misdemeanor for Purchase less than $50,000 Revised by Berlean Johnson 5/30/13

  13. SB 182 – Definition of Willful Willful Violation of the Procurement Code • Definition of “willful” can apply to both action and inaction • What does this mean to me as a Requisitioner? Should I be worried??? This law will have NO impact to a Requisitioner provided: • Purchase Order is in place BEFORE ordering goods/service • Requisitioners act in good faith Revised by Berlean Johnson 5/30/13

  14. 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 and a PO). Invoiced prior to PO being issued. • If purchase is under $50,000 – Misdemeanor! • If purchase is over $50,000 – 4thDEGREE FELONY!!!!! Revised by Berlean Johnson 5/30/13

  15. 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 Effective 6/14/13 Revised by Berlean Johnson 5/30/13

  16. SB 182 – The Disturbing News? Willful Violation of the Procurement Code • Will mostly pertain to actions of Buyers in Purchasing but could apply to SJC Departments if they act without Purchasing Revised by Berlean Johnson 5/30/13

  17. Other Procurement Law Changes SB 182 - Emergency Procurement (rare) • SJC Purchasing must now be directly involved • Emergency Procurement Form must now be posted within 3 business days after award • Forms will be posted in SJC Portal • SJC Purchasing is creating a new form Revised by Berlean Johnson 5/30/13

  18. Sb-340 Effective 6/14/13

  19. Other Procurement Law Changes SB 340 – Design and Build Projects • Eliminates $10 Million threshold • Should increase use of D&B Revised by Berlean Johnson 5/30/13

  20. Sb-266 Effective 7/1/13

  21. 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 with no one contract being more than $500,000 Revised by Berlean Johnson 5/30/13

  22. Sb-443 Effective 7/1/13

  23. SB 443 – The Good News Formal Bid Limits Increase to $60,000 • Changes Small Purchase Limit • Changes Informal Bid Limit Revised by Berlean Johnson 5/30/13

  24. SB 443 – The Good News Goods or Services not more than $20,000 • Small Purchase • Best obtainable price Revised by Berlean Johnson 5/30/13

  25. SB 443 – The Good News Goods & Services $20,000.01 to $60,000 – 3 Quotes • The Buyer may use 1 quote in the following circumstances: (Must be documented) • Existing Contract (SJC, GSA, CES, SPD, etc) • Urgency – Buyer’s sole discretion (must be documented) • Buyer’s Experience – Buyer’s determination that 1 quote represents fair value (must be documented) Revised by Berlean Johnson 5/30/13

  26. SB 443 – The Good News Bid Limit Increases Impact on SJC Requisitioners: Fewer Purchases will be subject to the Formal Bidding Process or New Formal Sole Source Justification Effective 6/14/2013 Revised by Berlean Johnson 5/30/13

  27. Other Procurement Law Changes SB 443 – Certification/Exemptions • Defines Chief Procurement Officer (CPO) • Defines Central Purchaisng Office • Requires notification to State of Institution’s CPO • Establishes certification and training requirements for CPO • Defines exemptions to Procurement Code Revised by Berlean Johnson 5/30/13

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