Best New Reality Show!. Surviving Procurement Island. Do You Know Enough to Survive…. Procurement Island?. Your Secret Survival Guide. In Case of Procurement, Open Box and Read Directions. Department of Administration. Division of Administrative Services. Topics we’ll cover today.
Surviving Procurement Island
Your Secret Survival Guide
In Case of
Box and Read Directions
Department of Administration
Division of Administrative Services
The rules of Procurement Island
How to get your stuff
How to request stuff you can’t get
How to deal with bad stuff
Policy and Procedures
Department employees who purchase services or goods on behalf of the department should be familiar with the Statutes, Regulations, Administrative Manual, and departmental Policies and Procedures procurement requirements.
These documents can be found the Division of Administrative Services’ Procurement Unit website!
Don’t get too excited…..before you build your raft to escape Procurement Island, there are still a few things your need take into consideration. These considerations are marked by sand dollars, be sure to pay attention to them!
Employees who perform purchasing functions must have a written delegation of authority on file with Admin. Services.
Must also be certified through the Division of General Services’ Procurement Officer Certification System at the appropriate level (one or two).
Fragmenting a purchase to avoid the appropriate purchasing process is a violation of the rules.
Divisions have been delegated procurement authority for commodities and non-professional services up to $50,000, depending on the highest certified person in your division.
What is the estimated dollar amount? Admin. Manual requires us to consider our annual needs in determining the proper procurement level. You must consider all renewal options and phases.
Example of Fragmentation
15 coconuts cost over $5,000 and we are required to obtain at least three quotes.
Instead of obtaining three quotes, Castaway Carl buys five on three different occasions over a three week period.
Castaway Carl has committed a procurement violation because he has purposely broken apart a larger procurement so that he could avoid the requirements of obtaining quotes.
Depending on the severity of the violation and whether it represents a pattern of behavior, Castaway Carl’s procurement delegation may be revoked.
Are there sufficient and appropriate funds available?
Is the supply or service permitted under the delegation of authority?
Restrictions include… Telephones, telecommunications equipment,construction, vehicles, and housing, leased office space or renovation involving leased or State owned space. For these types of purchases, send your requirements to Admin. Services on a PR.
Is the proposed purchase considered an authorized expenditure?
UNAUTHORIZED EXPENDITURES AAM 35.150
Printing of a personal nature
Foodstuffs and utensils
Dues for personal membership in associations
Nonfunctional office fixtures
These types of purchases must be approved, IN ADVANCE, in writing, by the Commissioner’s Office.
Is the service or commodity an exemption or exception to the procurement rules?
“What’s the difference between exemption and exception?”
Examples of exemptions include purchases of these types:
Certified employment programs
Youth Education programs
Book binding services
Medical doctors and dentists
Network information services access
An exception is a situation that prevents you from obtaining the desired service or commodity through normal procurement methods because:
Only one source exists or is acceptable or suitable to meet your needs.
The procurement process is impractical or contrary to the public interest and results in restricting the procurement to a group of potential contractors.
An unanticipated amendment to a procurement exceeds the amendment limitation established in the Administrative Manual.
An emergency situation exists in which a timely decision (generally less than 72 hours) must be made to prevent loss of life, damage to property or facilities, or to mitigate an imminent threat to public health.
What does the law require us to provide in order to obtain approval of a RAP?
An explanation that thoroughly describes the situation.
Findings of fact that summarizes all the pertinent details surrounding the procurement.
And supporting evidence that verifies that the explanation given and the findings of fact listed are true and accurate.
Even if we provide a good explanation of the situation, if we don't include evidence to support the claims, the RAP cannot be approved.
The law requires us to meet a two part test when requesting a Single Source RAP:
It is not practical to award a contract through the normal competitive methods.
Award of a single source contract is in the State's best interests.
Best Advice? Call Procurement!
Is the item available from an established contract?
General Services establishes multi-agency use contract awards for common items, such as computers, office supplies, copiers, etc.
Additionally, the department also establishes contracts specific to the Department of Administration. These include both commodity and service contracts.
Administration has several IT procurement restrictions:
All computers must be purchased through DAS!
Printers/multifunction devices (standard-Hewlett Packard)
Peripheral devices-divisions may purchase according to standards!
Review of Considerations:
Do you have a written delegation of authority?
Within delegated authority?
Are there sufficient funds?
Is it allowed under the DOA delegation of authority?
Is it an authorized expenditure?
Is it on contract?
Is it a professional service?
How does DAS come into the picture?
Oversight of all procurement activities, including departmental procurement delegations. We assist the divisions in meeting their mission requirements while assuring that all purchases are made in accordance with the law.
DAS makes purchases over $50,000 and establishes all professional services contracts regardless of cost.
One time Procurement Card Purchase, up to $2,500….1 quote
Goods and Other Services under $5,000…………………..Reasonable/adequate
Goods and Other Services $5K-$25,000……………………3 verbal or written
Goods and Other Services $25K-$50,000………………….RFQ process (3)
Goods and Other Services over $50,000………………....ITB process (DAS/ETS)
Professional Services under $5,000…………………………Reasonable/adequate Professional Services $5,000-$25,000……………………..3 verbal or written
Professional Services $25,000-$50,000……………………3 written
Professional Services over $50,000………………………....RFP process
Obtain minimum # of quotes from Alaskan vendors!
Alaskan Vendor Requirement
The minimum number of quotations or informal proposals must be sought from Alaskan vendors prior to soliciting any non-Alaskan vendors, unless the procurement officer determines in writing that soliciting the minimum number of quotes or informal proposals from Alaskan vendors is not practical per 2 AAC12.400(f) and AAM 81.220.
For your convenience, DAS has developed a template for this determination. You can find the template on the Procurement website!
What does Adequate and Reasonable mean?
Reasonable and adequate competition may include contacting one potential bidder in appropriate circumstances.
Regardless of the dollar level and the related solicitation that must occur, we still need to develop specifications:
Research what you want.
State what you want, without making your specifications so unique that they exclude potential bidders or offerors.
Emphasize functional or performance criteria.
List essential characteristics.
Include in the specifications:
Duration of the resulting award
Possible renewal options
Description of the item or service
Deadline for submitting quotes
Important note: the bid price must include shipping charges.
For small procurements, there is not a set amount of time you are required to give a vendor to respond to a solicitation-you need to use your best judgment as to what is reasonable in the circumstances.
IMPORTANT: Submitted bids must meet all of the minimum requirements established in your solicitation. If not, you must reject the bid as non-responsive.
After you obtain the quote(s) and then evaluate the responses to determine the lowest responsive, responsible bidder, taking into consideration all applicable preferences.
Don’t forget about preferences…….
Alaskan Bidder Preference-5% on quoted price
Alaskan Product Preference
Recycled Products Preference
Alaskans with Disabilities Preference
Employers of People with Disability Preference
The code equates public office to public trust. Any effort to benefit a personal or financial interest through official action is a violation of that trust.
Conduct procurements in a fair and impartial manner, notify your supervisor of potential conflicts, and avoid even the appearance of a conflict.
Have the documents properly initialed or signed by the appropriate people.
Complete the forms entirely.
Call or email warning of rush items.
If you receive a protest, contact DAS ASAP!
Attempt to resolve problems quickly-the longer they drag out, the bigger the problem becomes.
If the problem involves a contract award, contact the contract administrator for their assistance.
Cure letter-if necessary, DAS will write a cure letter to the Contractor.
You have survived