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PURCHASING LPD TRAINING

PURCHASING LPD TRAINING. Upcoming Training. September December. Vinessa Dudley. State Purchasing Agent & Internal Auditor. ?. What is an LPD. Limited Purchasing Delegation 63G-6a-304. 63G-6a-304 Delegation of authority.

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PURCHASING LPD TRAINING

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  1. PURCHASING LPD TRAINING

  2. Upcoming Training September December

  3. Vinessa Dudley State Purchasing Agent & Internal Auditor

  4. ? What is an LPD

  5. Limited Purchasing Delegation 63G-6a-304 63G-6a-304 Delegation of authority. (1) In accordance with rules made by the board, the chief procurement officer may delegate authority to designees or to any department, agency, or official.

  6. Discussion Topics • Purchasing flow chart • Small Purchase Rule (items $1,000 or less) • Informal Procurement ($1,001 - $5,000) &R33-4-109 • An award of a contract without engaging in a standard procurement process • Small Purchases of Professional Service Providers

  7. Flow chart can be downloaded from purchasing.utah.gov home page. Click “for agency's” at the top and then on “agency training” click “purchasing flowchart”

  8. First Steps: Mandatory Use Providers Is the item/service available from another state agency? Mandatory Use Providers • State Fleet Operations • Utah Correctional Industries • State Mail and Distribution • Department of Technology Services • State Print Services Yes No

  9. First Steps: Agency Contracts Does your agency have a current agency contract? Includes pre-season local purchase contracts Yes Purchase directly from the contract No

  10. First Step: State Cooperative Contract Executive branch procurements units are required to use State Cooperative Contracts when the contract offers products/services that meet agency requirements. Is the item/ service available from a State Cooperative Contract? Yes No

  11. State Cooperative Contract Review of §63G-6a-506 (5) (5)(b) the chief procurement officer. . . • determines in writing that it is in the best interest of the procurement unit • determines in writing that the terms and conditions, relating to liability for injury, death, or property damage, . . . are similar to, or better than, the terms and conditions available under the state contract (iii) grants an exception, in writing, to the requirement described in Subsection (4).

  12. purchasing.utah.gov

  13. State Cooperative Contracts Because State Cooperative Contracts were created after a competitive process, purchases made from the contracts are NOT subject to the small purchase rule in the next section.

  14. Small Purchase Rule • Items under $1,000 do not need to be competitively bid • Small Purchase Rule applies Does the individual item(s) cost $1,000 or less? Yes No

  15. Small Purchase Thresholds • Individual procurement threshold ($1,000) • Single procurement aggregate threshold ($5,000) • Annual cumulative threshold ($50,000)

  16. Small Purchase Thresholds Annual Cumulative Threshold – the maximum amount that an agency can spend with a single vendor in one year using the small purchase rules. When using the small purchase rules, the limit is $50,000 for a single vendor in a year.

  17. Small Purchase Thresholds Reminder: Items bought through agency contracts or state cooperative contracts are NOT subject to the small purchase thresholds because the contracts were established after a competitive bid.

  18. How to Purchase “Real” Items 1st – Mandatory Use Providers 2nd– Agency Contracts 3rd – State Cooperative Contract 4th – Small Purchase Rules (Watch the Thresholds)

  19. Purchasing Items $1,001 - $5,000 Bidding Required

  20. Purchasing Items$1,001 - $5,000 (Bidding Required) • Obtain competitive quotes by phone/email • Two quotes required but three quotes preferred. • Keep all documentation for 6 years • Name of all vendors • Copy of quote • Date of quote • All other paperwork Does the individual item(s) cost between $1,001 and $5,000? Yes No

  21. Telephone/Email Quote

  22. Telephone/Email Quote Establish a due date

  23. R33-4-109 R33-4-109. Procedures When Two Bids, Quotes, or Statement of Qualifications Cannot Be Obtained. The requirement that a procurement unit obtain a minimum of two bids, quotes, or statements of qualifications is waived when only one vendor submits a bid, provides a quote, or submits a statement of qualifications under the following circumstances: ….. Reasonable Effort: (A) Public notice under Utah Code 63G-6a-112; (B) An electronic or manual search for vendors within the specific industry, fails to identify any vendors willing to submit bids or provide quotes; (C) Contacting industry-specific associations or manufacturers for the names of vendors within that industry; or (D) A determination by the chief procurement officer, or as applicable, the head of a procurement unit with independent procurement authority that a reasonable effort has been made.

  24. Award of a contract without engaging in a standard procurement process

  25. An award of a contract without engaging in a standard procurement process Is the total purchase over $1,001 with only one vendor? • If over $1,000, must be approved by the Division of Purchasing. • A quote from the vendor MUST be submitted with the sole source request Yes

  26. An award of contract without engaging in a standard procurement process R33-8-101, 101c Sole Source Contract Awards Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. . . .

  27. Sole Source Procurement Sole Source does NOT mean: • BEST source • PREFERRED source • MOST CONVENIENT source • FAVORITE source • CHEAPEST source • The only source that would submit a bit (R33-4-109)

  28. Sole Source Requests All sole source purchases over $1,000 must go to State Purchasing. Sole source requests estimated to be $50,000 and above must be posted for a minimum of 7 calendar days for public comment.

  29. Small purchase for Professional Services • R33-5-108 • Threshold is a maximum spend of $100,000 • Direct negotiation after reviewing the qualification of a minimum of three firms or individuals

  30. Process • The Limited Purchasing Designee will: • Develop the project specifications or Scope of Work (SOW) • Review the qualifications of a minimum of three vendors – COST DOES NOT PLAY A PART IN THIS REVIEW. • Record the names of the vendors whose qualifications were reviewed • Record the identity the most qualified vendor with short justification as to why vendor was selected.

  31. 63G-6a-304   Delegation of authority In accordance with rules made by the board, the chief procurement officer may delegate authority to designees or to any department, agency, or official.

  32. Standard LPD Wording

  33. Required Annual Report • Report due August 15 • Individual who authorized • Date of purchase • Vendor name • Purchase Order number • Total price • Total To-Date Spent

  34. Procurement Statutes, Rules, Policies and Procedures Designee • Responsible for knowing, understanding, and ensuring the state procurement rules • Must maximize competition

  35. Dividing Purchases • The individual is prohibited from intentionally or knowingly dividing a procurement into more than one procurement. R33-5-105 • (8) (a) It is unlawful for a person to intentionally or knowingly divide a procurement into smaller procurements with the intent to make a procurement: • (i) qualify as a small purchase, if, before dividing the procurement, it would not have qualified as a small purchase; or • (ii) meet a threshold established by rule made by the applicable rulemaking authority, if, before dividing the procurement, it would not have met the threshold • (9)(a) making two or more separate purchases; • (b) dividing an invoice or purchase order into two or more invoices or • purchase orders; or • (c) making smaller purchases over a period of time.

  36. Financial Conflict of Interest • R33-24-105 (1) A procurement conflict of interest is a situation in which the potential exists for an executive branch employee's personal financial interests, or for the personal financial interests of a family member, to influence, or have the appearance of influencing, the employee's judgment in the execution of the employee's duties and responsibilities when conducting a procurement or administering a contract. (2) In order to preserve the integrity of the State's procurement process, an executive branch employee may not take part in any procurement process, contracting or contract administration decision: (a) relating to the employee or a family member of the employee; or (b) relating to any entity in which the employee or a family member of the employee is an officer, director or partner, or in which the employee or a family member of the employee owns or controls 10% or more of the stock of such entity or holds or directly or indirectly controls an ownership interest of 10% or more in such entity.

  37. Records and Retention • Keep a record of the entire procurement process • File paperwork with Purchase Order • Retain for no less than 6 years

  38. Cooperative Contracts: • Items on Cooperative Contract must be bought from the contract. Or mandatory use providers.

  39. Purchase Orders • Reference to the Purchase Order Terms and Conditions required

  40. Contracts • Execute and Finalize the contract process • Ensure the contract is legal • Collect all the required signatures • Send to the State of Utah Division of Finance • Enter the LPD number on the Purchasing signature line

  41. FINET • LPD____ on the “Line Description” • Involve the Finance staff in LPD training.

  42. Required LPD Training • Annual training required 2018 training will not be done one on one, PEP will offer LPD training twice in 2018 and designees will have to attend one of the times to fulfil the annual training requirement.

  43. Noncompliance • Violating purchasing rules means removal of LPD

  44. Limit on Authority • No other procurement items other than those listed below are authorized under an LPD delegation. • All purchases must be done the same as if State Purchasing would be doing the process.

  45. When Making Purchases for the State Remember to: • Encourage Fair and Open Competition • Purchase Best Value Goods and Services • Obey the Law • Act Only in the Public Interest

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