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

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

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

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  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 Main Information 301-405-5813 Main Fax 301-314-9565
  6. 6 Steps to Procurement
  7. 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”?
  8. 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
  9. 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
  10. Ethics
  11. 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
  12. 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
  13. 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)
  14. Delegated Procurement
  15. 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
  16. 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)
  17. 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
  18. 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)
  19. Types of Procurements Processed by Procurement & Supply

  20. 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
  21. 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
  22. 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
  23. 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
  24. Simplified Procurement

  25. 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
  26. 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
  27. Formal Procurement
  28. 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
  29. Publication of the Requirement e-Maryland Marketplace Others as necessary Length of time before due date is now flexible
  30. RFP Process Pre-Proposal Conference Evaluation of Technical Proposals By Committee Written Clarifications/Oral Presentations Evaluation of Price Proposals Award by Best Value
  31. Sole Source Procurement
  32. 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.
  33. 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.
  34. To initiate a Sole Source Purchase include: Requisition (The template is available on the Procurement and Supply webpage: , 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: , 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.
  35. 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?
  36. 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.
  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 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
  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 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
  51. Review of Each Procurement Procurement and Supply will review each procurement to determine if MBEs are available for solicitation Each Procurement over $100,000 should have MBE contract or subcontract goal
  52. Small Business Reserve It’s the Law! 10% of dollars spent with Certified Small Businesses Designed to stimulate small business growth and strengthen the Maryland economy Requires delegated purchases from SBEs to meet mandate
  53. Small Business Reserve Program Certain solicitations will be restricted to competition among State-certified SBEs Look up certified SBEs at:
  54. Review of Each Procurement Procurement and Supply will review each procurement to determine if SBEs are available for solicitation Procurement Creates Master Contracts with Small Businesses (identified with SBE icon)
  55. Chancellor and President Support MBE and SBR Programs UM and USM Board of Regents supports the State’s efforts to increase business opportunities for MBE’s and SBE’s Firms that have demonstrated time and again the ability to provide excellent products and services Increasing the MBE participation to 25 percent is a significant challenge. Mandate of SBE participation of 10% also a challenge We also need the assistance and aggressive effort of every unit on campus to achieve these new MBE goals and SBE mandate.
  56. How Can You Help? Check the master contracts listed on the Department of Procurement and Supply website at WWW.PURCHASE.UMD.EDUto determine if the supplies or services you need are available for order from an SBE.  SBE master contracts are flagged for that purpose.  Use the purchasing card or ELF system to place the order. Search for SBE sources before placing a procurement card order with any other vendor.  State-certified SBEs can be located via the link on the Procurement and Supply main web page, or via the program Website: WWW.SMALLBUSINESSRESERVEPROGRAM.COM
  57. How Can You Help (con’t) You can then search by Commodities or Services to find SBE's capable of meeting your needs.  We think that you will find that the search tool is very user-friendly. Should you know of vendors who may be qualified for SBE certification, please direct them to the program website or ask them to call Procurement and Supply at 301-405-5813 for assistance. Online self-certification takes only minutes to complete.
  58. How Can We Help You? We can help you locate Small and Minority Businesses All Procurement & Supply Staff available to assist Victoria Leatherwood is our Small & Minority Business Programs Administrator
  59. Contract Administration

  60. Contract Administration Delegated and Simplified Procurement contract administration may be no more than verifying that the ordered item was received on time, at the right location and the price on the invoice is equivalent to the price on the purchase order, P-Card order, etc Complex Procurement contract administration is a responsibility that is shared between Procurement and Supply and the customer
  61. Contract Administration Early and effective communication between all parties (including Procurement) Detailed documentation of performance Good or Bad!
  62. Physical Distribution

  63. Goods Received by the Requestor Review Delivery/Shipping Documents Inspect Shipment If count is incorrect or damage is apparent Record discrepancy on delivery document (short one piece, etc.) Have delivery person sign acknowledgement of statement with signature or initials Make a copy of the signed document for your records Sign document and accept delivery Contact Procurement for Assistance if necessary. If UPS or FedEx and shipment is damaged, record discrepancy and refuse shipment
  64. Shipping Goods from Campus Get a “Return Authorization” Keep accurate records FedExand UPS Contracts Contact Traffic Manager for assistance (Doug Waterman)
  65. Household Moves Procurement has contracts for household moves Contact Doug Waterman, 301-405-5852 for assistance Please allow approximately four weeks for the bid process, especially during peak season (June, July and August)
  66. Secure Storage Inside and Outside Storage Inside: Sensitive Items Outside: 31 Units @ 10’ x 20’ each
  67. Disposal of Surplus Property Terrapin Trader is University’s Surplus Property Operation Property Control Free Pick Up from Departments Items Sold through TT Showroom and Bid Process
  68. General Stores MRO Contract with MSC Industrial Supplies Office Supply Contracts and Computer Peripherals Contracts Officemax A Boise Company Rudolph's Office & Computer Supply, Inc.
  69. Questions Contact: Paula Mandelman Marty Newman April Weimer Tammy Yanulevich 301-405-5813