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Procurement Trivia Showdown for CFO’s

Procurement Trivia Showdown for CFO’s. April 24, 2019. Lisa Eason Deputy Commissioner of State Purchasing, DOAS Kelly Dudley Deputy State Accounting Officer SAO. C F O P r o c u r e m e n t. S h o w d o w n. Your Hosts: Jake (Lisa) & Elwood (Kelly). Question 1.

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Procurement Trivia Showdown for CFO’s

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  1. Procurement Trivia Showdown for CFO’s April 24, 2019 Lisa Eason Deputy Commissioner of State Purchasing, DOAS Kelly Dudley Deputy State Accounting Officer SAO

  2. CFO Procurement Showdown

  3. Your Hosts: Jake (Lisa) & Elwood (Kelly)

  4. Question 1 At what dollar amount is a competitive bid required?

  5. Question 1 Pursuant to OCGA 50-5-69 goods/services may be purchased without competitive bidding when they are less than $25,000. Note: Although competition is not required for purchases under $25,000, it is good practice to compare quality of products/services and prices from at least three (3) suppliers prior to a purchase.

  6. Question 2 How Many Stages are in the Procurement Process?

  7. Question 2 Stage 1 - Need Identification Stage 2 - Pre-Solicitation Stage 3 – Solicitation Preparation Stage 4 - Solicitation Process Stage 5 – Evaluation Process Stage 6 - Award Process Stage 7 – Contract Process

  8. Question 3 what does gpr stand for and how is it used?

  9. Question 3 • GPR: Georgia Procurement Registry is a public listing of solicitations posted by Georgia government entities. • The GPR includes search capabilities to allow interested suppliers or members of the public to easily navigate solicitation listings. • Entities required to publicly advertise solicitations using the GPR: • State Agencies • Local Governments (purchases over $10,000*) * If HB322 is signed by Governor on or before May 10th, this amount will adjust to $100,000.

  10. Question 4 • How long are procurements required to be posted? • (Multiple Answers On this one.)

  11. Question 4 Note: These apply to state government entities. Local Governments may follow different policies and guidance.

  12. Question 5 What is a NIGP code and where can it be found?

  13. Question 5 NIGP stands for national Institute of Governmental Purchasing. Their Commodity/Service codes are used to identify commodities and/or services being purchased and these purchases must be coded with the applicable NIGP Code™ regardless of the dollar amount. Every purchase order line item must be coded accurately with a five-digit (Class) NIGP Code™ selected from the correct three-digit (Category) Code. As an additional resource to state entities, SPD has established a list of goods/services by NIGP™ Code which are either exempt from the State Purchasing Act or represent goods for which SPD has waived the competitive bidding requirements. This list is available on SPD’s website.

  14. Question 6 What is the order of precedence?

  15. Question 6 • Order of Precedence • When the needed good/service is not exempt from the State Purchasing Act or the competitive bidding requirements have not been waived, it must be determined if a current contract exists to satisfy the purchasing need before conducting a sourcing event. The Order of Precedence is as follows: • Tier 1: Mandatory Statewide Contracts • Tier 2: Existing State Entity Contracts • Tier 3: Statutory Sources (including GEPS Mandatory Products) • Tier 4: • Convenience Statewide Contracts • State GEPS Preferred Products • Piggyback Purchases • Open Market Compliance with the order of precedence is mandatory!

  16. Question 6 Continued NOTE: In the event a state entity term contract is established, then the resulting contract will be considered a Tier 2 state entity contract for purposes of applying the Order of Precedence for future purchases.

  17. Question 7 What are Georgia’s approved solicitation methods?

  18. Question 7 • Approved solicitation methods are limited to: • Requests for Quotes (RFQ), • Requests for Proposals (RFP)*, • Requests for Qualified Contractors (RFQC), and • Reverse Auctions. • With the exception of reverse auctions and informal pricing requests for purchases less than $25,000, all solicitation methods are conducted through a formal sealed bidding process. In the formal sealed bidding process, suppliers’ submitted offers are kept confidential and not opened by the state entity until after the solicitation has closed. *For non-complex solicitations a Fast-Track RFP is an option.

  19. Question 8 Name 3 types of challenges a supplier can use to file a protest.

  20. Question 8 • Types of Challenges • • Solicitation • • Sole Source Notice • • Consortia/Cooperative Notice • • Results of RFQ • • State’s Intended or Actual Contract Award

  21. Question 9 List 4 exemptions allowed by the state purchasing act.

  22. Question 9 Intergovernmental Agreements between two or more government entities including state and local (county, city, etc.) government entities within the state of Georgia as well as other states of the United States of America. Personal Employment Services- Limited to only those services rendered by a person who works full-time or part-time for and under the control of the state entity and receives compensation as a salary in direct payment from the state entity. Professional Services - Limited to services defined by statute as a "profession" or "professional service." School Textbooks

  23. Question 9 Continued • Waived Competitive Bidding Requirements • These purchases are exempt from competitive bidding requirements unless otherwise ordered by SPD. In the event a mandatory statewide contract exists, the state entity must use the mandatory statewide contract unless SPD grants a written waiver. • Emergency supplies of drugs, chemicals and sundries; dental supplies & equipment. • Livestock for Slaughter. • Perishable Articles such as Fresh Vegetables, Fresh Meat, Fish & Oysters, Butter, Eggs, Poultry & Milk. • Technical Books & Other Printed Matter on Technical Subjects. • Other Items (such as works of art) which have been specifically identified by SPD in the Exempt Good/Services by NIGP™ Code identified in Section 1.2.4. - Exempt Goods/Services by NIGP™ Code. • Technical Instruments and Supplies. • Certain emergency purchases during a Governor-declared • state of emergency.

  24. Question 10 When should you use a PO verses an ap voucher?

  25. Question 10 • Except as noted below and not paid for using a purchasing card (p-card), a purchase order is required for all purchases of goods and services greater than $2,500. • Attorney and legal related payments (These are prescribed to the Department of Law via OCGA §45-15-34) • Benefit payments made directly to recipients • Intergovernmental agreements/payments (e.g., GTA bills, Risk Management premiums, HRA assessments, etc.) • Membership dues and/or subscriptions • Payroll and associated tax and benefit payments • Postage and shipping • Real estate rental/lease payments • Registration fees • Sales and Use tax payments • Travel expense reimbursements • Utilities (e.g., electricity, telephone land lines, cell phone charges, etc.) • WEX and ARI payments

  26. Question 11 When should you use “sole source” as the procurement method?

  27. Question 11 Based on market analysis, the procurement professional may determine only one supplier is capable of providing the needed goods or services. Solesource purchases must be distinguished from sole brand purchases in which more than one supplier is capable of providing the specific item. Sole source purchases are prohibited unless the state entity establishes justification why the needed goods or services should not be procured through open competition. Sound procurement practice requires that a solesource purchase occur when it is the only option and not as an attempt to contract with a favored service provider or for a favored good.

  28. Question 11 Exclusive or Unique Capabilities Example 1: Only one supplier can satisfy the technical requirements because of unique technical competence or expertise. Example 2: Only one supplier possesses patents or exclusive rights to manufacture or to furnish the item or service. Excessive Cost Example 3: Only one supplier can furnish the services because of the supplier's previous state entity experience and having an alternative source duplicating these capabilities would result in excessive costs to the state entity. Example 4: The item does not satisfy any of the justifications noted above, but the use of any other manufacturer's good or equipment would result in excessive costs to the state entity. NOTE: Excessive costs must be quantified. Purchase of used equipment as permitted by Section 2.3.3. - Purchasing Used Equipment.

  29. Question 12 At what contract dollar value is the Anti-Boycott of Israel certification required?

  30. Question 12 • A state entity shall not enter into a contract with an individual or company without the presence of a written certification confirming that the individual or company is not currently engaged in and will not engage in for the duration of the contract, a boycott of Israel when the contract is related to: • Construction • Provision of services • Supplies • Information technology • In accordance with (O.C.G.A.) Section 50-5-85, this requirement shall not apply to contracts with a total value of less than $1,000.00.

  31. And the winner is?

  32. Questions?

  33. Procurement Trivia Showdown for CFO’s

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