Department of Procurement & Supply

Presents:

Procurement 101

Purchasing Commodities and Services at the

University of Maryland

Who We Are

Director

James Stirling

Associate DirectorSupplies & Services

James Haley Location: Chesapeake Bldg

Assistant DirectorPhysical Distribution

VacantLocation: PDC

Associate DirectorConstruction & Facilities Services

VacantLocation: 0410 Service Bldg

Assistant DirectorDelegated Procurement

Marty Newman Location: Chesapeake Bldg

Small & Minority Business Programs AdministratorVictoria LeatherwoodCompliance SpecialistKathryn Harris

I.T. Support Staff(Comptroller)

Joseph Lederman

Purchasing Card

AdministratorKristina Libby

Support StaffKristin Stenson

Construction & A/E

CoordinatorsRex FitchThomas BlanchardBelle Gentry

Procurement SpecialistsDenise Elliott

Buyers/Buyer Assoc.Christine O’BrienJennifer IrelandTanida Sombatpium

Facilities

ManagerKaren Elvidge

Procurement SpecialistsLisa ThompsonVickie Stoner

Support StaffCarole Simpson

Terrapin Trader

ManagerMike Painter

StorekeepersCarl MericaLamont Timmons

Support StaffGeorge Shettle

Transportation & Distribution

ManagerDoug Waterman

StorekeepersNick TrainorGeorge WilliamsHarry TeaboutCharles Koehnlein

General Stores

ManagerSidney SalazarSupport StaffLeslie Siciak

CoordinatorsMary Ann ZimmermanBruce BrewerApril Weimer

Procurement SpecialistsPaula MandelmanVickie UnderwoodLucy SanchezPatty Butner

BuyersKathy BarrettJeffrey Turner

Administration

Business ManagerHarry Sheets

Support StaffTracey Schlegel

Administration

Tammy YanulevichMelvin Contee

Commodities & Services

MISSIONIn 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

Contacting Procurement

• Procurement & Supply Home Page www.purchase.umd.edu

• Main Information 301-405-5813

• Main Fax 301-314-9565

http://www.umd.edu/

6 Steps to Procurement

6 Steps to Procurement• Step 1 Consider borrowing or

purchasing used or environmentally friendly

• Step 2 Purchase from in-house sources, if available.

• Step 3 Determine if the State requires that we purchase the goods or services from “Preference Providers”.

• Step 4 Use a Delegated Tool if within Delegated Procurement Authority.

6 Steps to Procurement (con’t)

• 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

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 Karen Elvidge (301-405-3269)

Ethics

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

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

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 Karen Elvidge (301-405-3269)

Delegated Procurement

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* Stringing, or splitting a need to avoid

the delegated authority, is prohibited.

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)

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

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)

Types of Procurements Processed by Procurement

& Supply

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

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

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

Writing Specifications

3 Major Types of Specifications1. Design – Identify minimum

requirements2. Performance – Describe what

you expect the good or service to produce3. Combination of design and performance

Simplified Procurement

Simplified Procurement • $5,000 to $100,000

• Handled by Procurement and Supply except Master Contract Releases– Goal is to issue purchase order

within 14 days• Simplified refers to the more

streamlined process Procurement Specialists in Procurement and Supply use to execute these transactions

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

Formal Procurement

Formal Procurement• Greater than $100,000• Request For Proposals (RFP)• Invitation For Bid (IFB)• Handled by Procurement and Supply• Customer Prepares Statement of Work• Customer Assists in the Development

of a Milestone Plan• Requires More Teamwork between

Procurement and Customer• Award Based on Best Value

Publication of the Requirement

• e-Maryland Marketplace• Others as necessary

>$100,000 requires 14 calendar days<$100,000 more flexible date

RFP Process

• Pre-Proposal Conference• Evaluation of Technical Proposals

– By Committee– Written Clarifications/Oral

Presentations• Evaluation of Price Proposals• Award by Best Value

Sole Source Procurement

Sole Source Procurement

• Procurement without competition is authorized under limited conditions and subject to written justification documenting the conditions that preclude the use of a competitive process

• Customer makes request and provides justification (Click here to access sole source justification form)

Sole Source Determination

• Procurement reviews justification• Performs independent research• Writes Sole Source

Determination• Obtains approval (can require

approval from VPAA; determined by dollar amount)

Sole Source Contract

• Formal proposal from Contractor • Contractor Reviews and Signs

our Terms, Conditions, Affidavits and Certifications

Sole Source Contract

• Procurement Determines Price Reasonableness

• Procurement Determines Contractor Responsibility– Past Performance– Technical Capabilities– Financial Stability

• Procurement Issues Contract

Special Approvals• All purchases using Bond Funds and • Any Service Contract >$500,000 require

prior approval of the Maryland Board of Public Works– Who? The Governor, Comptroller and

Treasurer• Contracts over $5 Million require prior

approval of the USM Board of Regents

Vendor Contracts

Vendor Contract Review

• Only Procurement can sign vendor contracts, agreements

• Insurance – University is self insured– Need a certificate of insurance? Contact UMCP 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

Consulting Agreements/Contracts

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.

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

Purchasing Office Furniture

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

Minority and Disadvantaged

Business Enterprise Program

AND Small Business Reserve Program

Minority Business Enterprise

• Minority Business Enterprise (MBE)

• State socioeconomic program to support historically underutilized businesses.

• Maryland Law sets goals

Certification for MBE Contractors

• To be counted, a firm must be certified by Maryland Department of Transportation

• Approx. 4000 firms certified• Database available at

– http://www.mdot.state.md.us/cgi-bin/mbedir/mbedirectory

– link from Procurement’s web site

Minority Business Participation Goal

• Goal is 25% of dollars to be spent with MBE contractors or subcontractors

• Sub-goals set by Procurement Review Group if >$100,000

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

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

Small Business Reserve Program

• Certain solicitations will be restricted to competition among State-certified SBEs

• Look up certified SBEs at: www.smallbusinessreserve.maryland.gov

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)

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.

How Can You Help?• Check the master contracts listed on the

Department of Procurement and Supply website at WWW.PURCHASE.UMD.EDU to 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

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.

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

Contract Administration

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

Contract Administration

• Early and effective communication between all parties (including Procurement)

• Detailed documentation of performance– Good or Bad!

Physical Distribution

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

Shipping Goods from Campus

• Get a “Return Authorization” • Keep accurate records• FedEx and UPS Contracts• Contact Traffic Manager for

assistance (Doug Waterman)

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)

Secure Storage

• Inside and Outside Storage• Inside: Sensitive Items• Outside: 31 Units @ 10’ x 20’

each

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

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.

Questions

Contact: Marty Newman Tammy Yanulevich

Mary Ann Zimmerman301-405-5813

Questions

Contact: Paula Mandelman Marty Newman April Weimer Tammy Yanulevich

301-405-5813