Office of the Chief Financial OfficerOffice of the Chief Financial Officer
Office of Management & Administration Office of Management & Administration
Office of ContractsOffice of Contracts
Small Purchasing
Small Purchasing
October October 2010
2010
CHANGES TO PASS
CHANGES TO PASS
o Requisitioners may no longer
enter a vendor but can put in
recommended vendor as a
comment
o
ALL procurements under $100K
ALL procurements under $100K
must be awarded to a small
must be awarded to a small
business enterprise, unless…
business enterprise, unless…
Waiver is authorized by
Workshop Goals
Workshop Goals
o
o
Know the statutory and regulatory Know the statutory and regulatory
requirements governing small purchases
requirements governing small purchases
o Understand the documentation and
o Understand the documentation and
procedures necessary to execute a
procedures necessary to execute a
successful RQ/PO
successful RQ/PO
o Understand the roles and responsibilities
o Understand the roles and responsibilities
of the Office of Contracts and Program
of the Office of Contracts and Program
Office Staff
Office Staff
Agenda
Agenda
o Overview of Small Purchases
o Overview of Small Purchases
o
o
Documentation Requirements
Documentation Requirements
o LSDBE/CBE Requirements
o LSDBE/CBE Requirements
o Sole Source/Single Available
o Sole Source/Single Available
Source
Source
o
o
PASS process changes
PASS process changes
o
The Rules
The Rules
Procurement Practices Act—PPA
Procurement Practices Act—PPA
DC Municipal Regulations---DCMR
DC Municipal Regulations---DCMR
CFO Order 08-008 - December 4,
CFO Order 08-008 - December 4,
2008
2008
Cardinal Rule No. 1
Cardinal Rule No. 1
Unauthorized
Unauthorized
Procurements
Procurements
Goods and/or Services shall not
Goods and/or Services shall not
be delivered and/or performed
be delivered and/or performed
without first having a valid
without first having a valid
purchase order in place.
purchase order in place.
Consequences
Consequences
–
–
Anti-deficient Procurements
Anti-deficient Procurements
Employee Discipline
Employee Discipline
Cardinal Rule No. 2
Cardinal Rule No. 2
Three (3) written quotes are
Three (3) written quotes are
required for
required for
ALL purchases
ALL purchases
greater than $10,000
greater than $10,000
Requisitioners are required to
Requisitioners are required to
submit at least one (1) written
submit at least one (1) written
quote for purchases under $10K
quote for purchases under $10K
All quotes
All quotes
must be attached
must be attached
to the
to the
requisition or they shall be denied
Submitting Requests
Submitting Requests
Submitted at least 10 to 15 business Submitted at least 10 to 15 business
days prior to need-by-date (30 days for days prior to need-by-date (30 days for
those requesting LSDBE waiver) those requesting LSDBE waiver)
ATTACH:ATTACH:
Documentation: Quotes, 3 for purchases Documentation: Quotes, 3 for purchases
over $10K, 1 for purchases under $10K, sole
over $10K, 1 for purchases under $10K, sole
source/single available source justification
source/single available source justification
When in doubt—ATTACH to the RQWhen in doubt—ATTACH to the RQ
Incomplete requisitions will be denied – Incomplete requisitions will be denied –
Must identify Agency and Fiscal Year in RQ
Must identify Agency and Fiscal Year in RQ
Title
Where to find LSDBE
Where to find LSDBE
quotes
quotes
Website is located at
Website is located at
www.olbd.
dc.gov
dc.gov
Office of Local Business DevelopmentOffice of Local Business Development
DC Supply Schedule - See handout
DC Supply Schedule - See handout
Where to Find Office of Contracts
Where to Find Office of Contracts
https://sites.google.com/a/dc.gov/ocfo-https://sites.google.com/a/dc.gov/ocfo-procurements/ procurements/
Performance Evaluations are
Performance Evaluations are
important for these purchases
important for these purchases
Provides tracking mechanisms for future Provides tracking mechanisms for future purchases
Attachments
Attachments
Estimated pricing / Independent
Estimated pricing / Independent
Government Estimate (IGE)
Government Estimate (IGE)
Recommended Vendors
Recommended Vendors
Maintenance Agreements
Maintenance Agreements
Registration Forms
Registration Forms
Mandatory Supply
Mandatory Supply
Sources
Sources
Determined by Office of
Determined by Office of
Contracts
Contracts
LSDBE/CBE Statute requires ALL
LSDBE/CBE Statute requires ALL
purchases under $100K shall go to
purchases under $100K shall go to
LSDBE/CBE
LSDBE/CBE
UNLESS
UNLESS
Waiver is
Waiver is
authorized by Contracting Officer
Approvals and
Approvals and
Comments
Comments
The block The block ““Include comment and Include comment and
attachment on purchase order
attachment on purchase order”” should should only be checked by the procurement
only be checked by the procurement
office
office
Read comment box Read comment box for any purchase for any purchase
order returned or denied before
order returned or denied before
re-approving
approving
Purchase Order
Purchase Order
The Contracting Officer and/or
The Contracting Officer and/or
Purchasing Agent makes final
Purchasing Agent makes final
decisions in selecting appropriate
decisions in selecting appropriate
vendor
vendor
Factors include: Mandatory sources
Factors include: Mandatory sources
of supply (LSDBE, DCSS), lowest price
of supply (LSDBE, DCSS), lowest price
or best value
or best value
Purchasing Agent will ensure that the
Purchasing Agent will ensure that the
vendor receives the Purchase order
Statement of Work (SOW)
Statement of Work (SOW)
Defined
Defined
A statement of work tells
A statement of work tells
who is making the purchase,
who is making the purchase,
what is being bought, what
what is being bought, what
the procurement will
the procurement will
achieve, the population to be
achieve, the population to be
served and the range of
served and the range of
services to be provided.
Creating a Statement of
Creating a Statement of
Work
Work
Why is a SOW Important?
Why is a SOW Important?
This is the only method of contractually
This is the only method of contractually
guaranteeing a
guaranteeing a
level of service for the District when creating a
level of service for the District when creating a
Purchase
Purchase
Order
Order..
PO = payment to vendor
PO = payment to vendor
A PO without a SOW attached = payment
A PO without a SOW attached = payment
regardless of type of service received
Elements of a Statement
Elements of a Statement
of Work
of Work
The Elements of a SOW are:
The Elements of a SOW are:
Who
Who
What
What
Why
Why
When
When
Where
Where
SCOPE = WHAT
SCOPE = WHAT
KIS
KIS – – “Keep It Simple”“Keep It Simple” - -
1.
1. Clearly define your needClearly define your need
2.
2. Define ALL technical terms & Govt. Define ALL technical terms & Govt. Acronyms
Acronyms
3.
3. Describe CLEARLY any & all directions Describe CLEARLY any & all directions to the contractor to perform tasks,
to the contractor to perform tasks,
specifications of reporting requirements
specifications of reporting requirements
or a description of deliverable products
DELIVERABLES – WHEN &
DELIVERABLES – WHEN &
WHERE
WHERE
•
If the SOW orders data/reports,
If the SOW orders data/reports,
have all
have all
descriptions of that data (e.g.,
descriptions of that data (e.g.,
format and
format and
content) been provided?
content) been provided?
•
Does the SOW establish a delivery
Does the SOW establish a delivery
schedule?
TECHNICAL REQUIREMENTS - HOW
TECHNICAL REQUIREMENTS - HOW
1.
1. Are the tasks outlined in some logical order? Are the tasks outlined in some logical order?
2.
2. Is it CLEARLY DEFINED – how can the vendor Is it CLEARLY DEFINED – how can the vendor
price this out?
price this out?
3.
3. Are contractor responsibilities CLEARLY Are contractor responsibilities CLEARLY
DEFINED?
DEFINED?
4.
4. How do we monitor? How will the RECEIVER How do we monitor? How will the RECEIVER
know if the contractor has done its job?
BACKGROUND - WHY
BACKGROUND - WHY
Why does your office/agency need
Why does your office/agency need
this?
this?
For example: OCFO/OMA/Office of
For example: OCFO/OMA/Office of
Contracts needs temporary scanning
Contracts needs temporary scanning
support to create an electronic
support to create an electronic
database of FY 07 – FY 09 files to
database of FY 07 – FY 09 files to
comply with new policies based on
comply with new policies based on
internal control directives.
SOW – Example
SOW – Example
What we normally see: OCFO/OMA/Office of Contracts needs temporary
help to scan documents into an electronic database. .
What we should see: The Office of the Chief Financial Officer (OCFO),
Office of
Management and Administration (OMA), Office of Contracts (OC) needs
temporary
help to scan documents into an electronic database. OC needs temporary
scanning support to create an electronic database of FY 07 – FY 09 files to comply
with new policies based on internal control directives. The OC needs 2 full-time
Temporary staffers for three weeks beginning 10/1/2008 -10/22/2008. The staffers
are expected to work eight-hour shifts from 9 a.m. – 5: 30 p.m. They will report to
Key Points
Key Points
1.
1.
Is it clear?
Is it clear?
2.
2.
Check for proper grammar?
Check for proper grammar?
3.
LSDBE/CBE--NEW
LSDBE/CBE--NEW
DC Statute 2-218.44 and 2-218.45
requires that each agency shall set
aside every contract (PO) of $100K
for SBE
Exceptions: Office of Contracts…
determines in writing that there are
not at least 2 responsible certified
SBE OR cost to District will be more
than 12% of reasonable cost to
SOLE SOURCE CHECKLIST
SOLE SOURCE CHECKLIST
–
–
SMALL PURCHASES
SMALL PURCHASES
How to write a Justification
MAIN THING YOU NEED TO
MAIN THING YOU NEED TO
KNOW ABOUT
KNOW ABOUT
PPA/DCMR!!!!
PPA/DCMR!!!!
Does the justification clearly
explain why this vendor is the
ONLY source to provide the
need?
Out of time, used vendor last
Acceptable justifications
Acceptable justifications
for sole source under the
for sole source under the
PPA/DCMR:
PPA/DCMR:
1.
1.
Only one available source
Only one available source
2.
2.
The contract is for the purchase
The contract is for the purchase
of real property
of real property
3.
3.
The contract is with a vendor on
The contract is with a vendor on
the GSA or DC Supply schedule
the GSA or DC Supply schedule
4.
4.
Emergency procurement where
Emergency procurement where
only one proposal was received
only one proposal was received
(Only the mayor can declare an
WHEN PROPRIETARY
WHEN PROPRIETARY
SOFTWARE
SOFTWARE
The
The justificationjustification must demonstrate one of must demonstrate one of the
the
following: following:
1.
1. The requirements cannot be modified The requirements cannot be modified
to allow for a competitive procurement to allow for a competitive procurement
2.
2. It is in the best interest of the District It is in the best interest of the District
to use the sole source procurement to use the sole source procurement
3.
3. The proposed contractor is the only The proposed contractor is the only
Last Step before It can be
Last Step before It can be
Approved!
Approved!
Determination & Finding (
D&F)
been created by Office of Contracts
& given to program office to be
signed off on by the Agency Head
Agency Head = Deputy CFO, e.g.
Receiving Report
Receiving Report
Requisitioner should go into receiving Requisitioner should go into receiving
tab
tab within one week within one week of receiving good of receiving good or service
or service
Only receive what has been deliveredOnly receive what has been delivered
Invoices must be attached to the Invoices must be attached to the
receiving report if the vendor is going receiving report if the vendor is going
to get paid to get paid
Call Financial Operations and give Call Financial Operations and give
notice that Invoice has been attached to notice that Invoice has been attached to
SUMMARY
LSDBE/CBE requirements
LSDBE/CBE requirements
Goods and/or Services shall
Goods and/or Services shall
not be delivered and/or
not be delivered and/or
performed without having a
performed without having a
valid purchase order in place
valid purchase order in place
