PUBLIC PURCHASING IN FLORIDA PROCUREMENT METHODS (REV. 09/06/05)

PROCUREMENT METHODS GENERALLY AVAILABLE, All Jurisdictions: Small purchase Invitation to Bid (ITB) Request for Proposal (RFP or CSP) Single source/Sole source Emergency

FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK First consider in-place agreements: 1.State Term Contract (possibly RFQ) 2.FARF workshop (RESPECT) 3.Correctional work program (PRIDE) 4.Agency Term Contract 5.State Purchasing Agreement 6.Alternate Contract Source

FLORIDA SPECIFIC, TO BE APPLIED TO ANY REQUISITION THAT CROSSES A STATE AGENCY PURCHASING DESK (2) Second, consider sourcing from scratch. 7.Discretionary purchase 8.Exempt purchase 9.Informal competitive purchase (quote, informal bid) 10.Formal competitive: ITB, RFP, ITN 11.Single source 12.Emergency IMPORTANT TO CODE CORRECTLY IN MFMP

PROCUREMENT METHODS State Term Contracts

STATE TERM CONTRACTS STCs are requirements contracts entered into by State Purchasing pursuant to s.287.042 & s.287.056(1) Fla. Statutes & 60A-1.002(4)(m) & 60A-1.044, FAC They combine common requirements to achieve deep discounts, and to provide administrative efficiencies State agencies must use state term contracts unless certain exceptions apply Eligible users, including state universities and political subdivisions may use STCs

OBJECTIVES OF STATE TERM CONTRACTING Our goal is to deliver State term contracts, strategically sourced, administratively easy to use, with the best value (prices, item/service quality, terms and conditions) obtainable by a customer of our stature.

STATE TERM CONTRACTS There are some multi-vendor state term contracts (vehicles, copiers, IT consulting, others), based on a variety of factors: Specifications Geographic area Acquisition method (e.g. outright purchase or lease) Competition among state contractors

STATE TERM CONTRACTS New for fiscal year 04-05 and 05-06 640-002-06-1 - - Tissues and Towels, Paper640-002-06-1 - - Tissues and Towels, Paper 972-310-06-1 - - Court Reporting Services 725-330-05-1 - - Wireless Voice Services 070-001-05-1 - - Automobiles & Light Trucks070-001-05-1 - - Automobiles & Light Trucks 070-700-05-1 - - Medium and Heavy Trucks070-700-05-1 - - Medium and Heavy Trucks

STATE TERM CONTRACTS 200-050-05-1 - - Uniforms 914-000-05-R - - RESPECT-Purchase from the Blind or Severely Handicapped Central Non-Profit Agency914-000-05-R - - RESPECT-Purchase from the Blind or Severely Handicapped Central Non-Profit Agency 425-001-05-P - - PRIDE: Office Furniture425-001-05-P - - PRIDE: Office Furniture 475-000-05-1 - - Medical and Dental Supplies475-000-05-1 - - Medical and Dental Suppli 518-020-05-1 - - Rental Vehicles 680-850-05-1 - - Body Armor (Protective Vests)680-850-05-1 - - Body Armor (Protective Vests)

STATE TERM CONTRACTS 680-650-05-1 - - Officers' Equipment 973-890-05-1 - - Computer Software Training973-890-05-1 - - Computer Software Training 991-160-05-1 - - Courier Services 991-490-05-1 - - Lawn Care Services 991-705-05-1 - - Recycling Services, End of Life Electronics Equipment991-705-05-1 - - Recycling Services, End of Life Electronics Equipment 991-300-05-1 - - Pest Control Services

CONTRACT EXCEPTIONS The use of state term contracts is mandatory for agencies [Rule 60A- 1.044(2), FAC], optional for other eligible users. No contract can be devised for which no exception will ever occur, and the rules reflect this fact. Florida purchasing rules indicate acceptable reasons, and the process to follow [Rule 60A-1.044(3), FAC]. Some STCs include some degree of built in exception authority.

REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60A-1.044(3) FAC 1.Critical delivery schedules which the ST contractor cannot provide. 2.Need for compatibility with existing equipment. 3.Non-availability of service. 4.Applications of unique technical requirements, product quality or specifications that differ from those of the contract commodities or services.

REASONS FOR CONTRACT EXCEPTION PURSUANT TO RULE 60A-1.044(3) FAC Exceptions are also authorized if The purchase does not exceed the greater of $250 or any other amount authorized in the contract, or The state term contract is expressly designated as a non- exclusive contract.

CONTRACT EXCEPTION PROCEDURE [60A-1.044(3)(b) FAC] Exceptional purchases shall be documented by the agency making those purchases. The agency shall determine the conditions and circumstances justifying the purchase. Note: Exceptions exceeding Category Two are subject to the competitive or other sourcing requirements of statute and rule.

PROCUREMENT METHODS FARF workshop (RESPECT)

Requirements are established in Chapter 413, Florida Statutes DMS authority & responsibility are established by s.413.035 and s. 287.042(1)(g), Florida Statutes 413.031 Products, purchase by state agencies and institutions: Any purchasing officer who violates the provisions of this section shall be guilty of a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083. Web site at www.respectofflorida.org

FARF workshop (RESPECT) S.413.036(1): If any agency intends to procure any product or service on the procurement list, that agency shall, procure such product or service from a qualified nonprofit agency if the product or service is available within a reasonable delivery time. this act shall have precedence over any law requiring state agency procurement of products or services from any other nonprofit corporation...

FARF workshop (RESPECT) 413.036(4) No similar product or service of comparable price and quality may be purchased from any source other than the nonprofit agency for the blind or for the severely handicapped if the nonprofit agency certifies that the product is manufactured or supplied by, or the service is provided by, the blind or the severely handicapped and the product or service meets the comparable performance specifications and comparable price and quality requirements as determined by the department or an agency.

FARF workshop (RESPECT) S.413.036(2): The provisions of part I of chapter 287 do not apply to any purchase of commodities or contractual services made by any legislative, executive, or judicial agency of the state from a qualified nonprofit agency for the blind or for the other severely handicapped.

FARF workshop (RESPECT) S. 413.036(3) If, pursuant to a contract between any legislative, executive, or judicial agency of the state and any private contract vendor, a product or service is required by the Department of Management Services or on behalf of any state agency that is included on the procurement list established by the commission pursuant to s. 413.035(2), the contract must contain the following language:

FARF workshop (RESPECT) "IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES THAT ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACT SHALL BE PURCHASED FROM A NONPROFIT AGENCY FOR THE BLIND OR FOR THE SEVERELY HANDICAPPED THAT IS QUALIFIED PURSUANT TO CHAPTER 413, FLORIDA STATUTES, IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 413.036(1) AND (2), FLORIDA STATUTES; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THE STATE AGENCY INSOFAR AS DEALINGS WITH SUCH QUALIFIED NONPROFIT AGENCY ARE CONCERNED."

PROCUREMENT METHODS Correctional work program (PRIDE)

CORRECTIONAL WORK PROGRAM (PRIDE) Requirements are established in Chapter 946, Florida Statutes DMS authority & responsibility are established by s.946.515 and s. 287.042(1)(d-f), Florida Statutes

CORRECTIONAL WORK PROGRAM (PRIDE) Legislative intent (Chapter 946, FS): 1.To reinforce relevant education, training, and post release job placement and help reduce recommitment 2.To serve the security goals of the state through the reduction of idleness of inmates and to provide incentives for good behavior 3.To reduce the cost of state government by operating enterprises primarily with inmate labor

CORRECTIONAL WORK PROGRAM (PRIDE) 4.To serve the rehabilitative goals of the state by duplicatingthe operating activities of a free- enterprise type of profit making enterprise 5.To aid inmates in adjustment after release and to prepare inmates for gainful employment 6.The state shall have a continuing interest in assuring continuity and stability in the operation 7.The corporation will devise and operate correctional work programs to utilize inmates of all custody levels, with specific emphasis on reducing idleness among close custody inmates.

CORRECTIONAL WORK PROGRAM (PRIDE) No similar product or service of comparable price and quality found necessary for use by any state agency may be purchased from any source other than the corporation if the corporation certifies that the product is manufactured by, or the service is provided by, inmates (http://www.peol.com/state.htm ) and the product or service meets the comparable performance specifications and comparable price and quality requirements as specified under s. 287.042(1)(f) or as determined by an individual agency as provided in this section. The purchasing authority of any such state agency may make reasonable determinations of need, price, and quality with reference to products or services available from the corporation. (s.946.515 FS)http://www.peol.com/state.htm

CORRECTIONAL WORK PROGRAM (PRIDE) In the event of a dispute between the corporation and any purchasing authority based upon price or quality under this section or s. 287.042(1)(f), either party may request a hearing with the Department of Management Services and if not resolved, either party may request a proceeding pursuant to ss. 120.569 and 120.57, which shall be referred to the Division of Administrative Hearings

CORRECTIONAL WORK PROGRAM (PRIDE) S.946.515(4) The provisions of part I of Chapter 287 do not apply to any purchases of commodities or contractual services made by any legislative, executive, or judicial agency of the state from the corporation. Exception: Printing (ref.283.33 FS).

Correctional work program (PRIDE) (6) If, pursuant to a contract between any agency and any private contract vendor, a product or service is required (and) is certified by or is available from the corporation , and has been approved in accordance with subsection (2), the contract must contain the following language:

CORRECTIONAL WORK PROGRAM (PRIDE) IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT ANY ARTICLES WHICH ARE THE SUBJECT OF, OR REQUIRED TO CARRY OUT, THIS CONTRACT SHALL BE PURCHASED FROM THE CORPORATION IDENTIFIED UNDER CHAPTER 946, F.S., IN THE SAME MANNER AND UNDER THE SAME PROCEDURES SET FORTH IN SECTION 946.515(2), AND (4), F.S.; AND FOR PURPOSES OF THIS CONTRACT THE PERSON, FIRM, OR OTHER BUSINESS ENTITY CARRYING OUT THE PROVISIONS OF THIS CONTRACT SHALL BE DEEMED TO BE SUBSTITUTED FOR THIS AGENCY INSOFAR AS DEALINGS WITH SUCH CORPORATION ARE CONCERNED.

CORRECTIONAL WORK PROGRAM (PRIDE) PRIDE price agreements with DMS are available at: http://fcn.state.fl.us/st_contracts/pri deindex.htm Other PRIDE products are available through the PRIDE web site at http://www.peol.com/ http://www.peol.com/

PROCUREMENT METHODS Agency Term Contract

AGENCY TERM CONTRACT A term contract is defined in s.287.012(28) as an indefinite quantity contract to furnish commodities or contractual services during a defined period. An agency, like State Purchasing, can and should examine repetitive small purchases to determine the possibility of consolidation (aggregation) into a term contract.

AGENCY TERM CONTRACT The purpose of an agency term contract is for that agency similar to the purpose of a state term contract: To combine common requirements in order to achieve deep discounts, and to provide administrative efficiencies.

AGENCY TERM CONTRACT Methods of soliciting an agency term contract can include: Informal bid Invitation to Bid Request for Proposal Invitation to Negotiate Single Source Emergency

Agency Term Contract Agency Term Contracts can be established to enable Definite quantity/schedule purchase orders Indefinite quantity/schedule blanket term purchase orders Term purchase orders with definite and indefinite quantity/schedule line items Individual delivery/performance purchase orders Purchasing card transactions All of the above

PROCUREMENT METHODS STATE PURCHASING AGREEMENTS

Reflect a policy change implemented Jan. 16, 2004, to replace vendor-driven, non- competitive SNAPS agreements with buyer-driven competitive state purchasing agreements. Are solicited by State Purchasing informally upon buyer request accompanied by commodity specifications and/or a contractual services statement of work.

STATE PURCHASING AGREEMENT INTENDED USE The SPA is intended for individual purchases not exceeding the state agency bid threshold, Category 2 ($25,000) If purchases exceeding the bid threshold for state agencies ($25,000) are foreseen during the term of the SPA, the buyer cannot use the SPA, but must combine and bid the requirements.

STATE PURCHASING AGREEMENT The form for requesting a SPA and the terms and conditions applicable are posted on the State Purchasing web site at http://www.myflorida.com/myflorida/ business/onlineforms/buypurchinfofor ms.html http://www.myflorida.com/myflorida/ business/onlineforms/buypurchinfofor ms.html

STATE PURCHASING AGREEMENT State Purchasing Agreements are 12 month agreements with a single awarded vendor per item or service or area, or combination thereof Each SPA is available for use by both state agencies and other eligible users, but is not mandatory for any user

STATE PURCHASING AGREEMENT ADVANTAGES More competitive than a one-time informal bid by one buyer After specs are developed, State Purchasing provides the terms & conditions, and has primary responsibility for the solicitation, evaluation and award Resulting agreement available for other transactions Usage not mandatory; may be used as benchmark for negotiation or further competition. DISADVANTAGE May require more time than a one-time informal bid by one buyer

PROCUREMENT METHODS ALTERNATE CONTRACT SOURCE

Among powers & duties of the division, s. 287.042(16) FS allows State Purchasing to evaluate contracts let by the Federal Government, another state, or a political subdivision for the provision of commodities and contract servicesauthorizing an agency to make purchases .

ALTERNATE CONTRACT SOURCE Further authority is contained in S.287.057(5)(b) FS, as an exception to bidding, along with emergency and single source purchases Rule 60A-1.047, FAC, referencing term contracts or requirements contracts competitively established by other governmental entities.

ALTERNATE CONTRACT SOURCE The form for requesting an alternate contract source is available on the State Purchasing web site at http://www.myflorida.com/myflorida/ business/onlineforms/buypurchinfof orms.html

ALTERNATE CONTRACT SOURCE Caveats before deciding: Consider whether market conditions have changed and whether the contract price is indexed. Consider whether the quantity priced was more or less than the quantity you wish to purchase and the possible impact of price breaks. Consider applicability of the terms and conditions. Obtain vendor consent.

PROCUREMENT METHODS Discretionary purchase

DISCRETIONARY PURCHASE Discretionary purchases are small purchases under the $2,500 threshold requiring informal bids in accordance with Rule 60A-1.002(2), FAC. The rule advises good purchasing practices, which may include quotes. As with bid thresholds, consider per purchasing office, and do not divide.

PROCUREMENT METHODS EXEMPT PURCHASE

Current Florida law and administrative rules exempt some purchases from competitive requirements. An in-depth review of exemptions was conducted by the Division of State Purchasing & the Office of the Secretary, with a view toward eliminating some during the 2004 legislative session, but no purchasing legislation passed.

EXEMPT PURCHASE Some statutory exemptions include language requiring some degree of competition Many agencies already use formal 287 competitive procedures for some exempt purchases.

EXEMPT PURCHASE Exemptions fall into three categories: 1.Exempt only by reason of the commodity or service to be purchased. 2.Exempt only by reason of the vendor/contractor selected. 3.Exempt by reason of both the commodity or service and the vendor/contractor.

EXEMPT PURCHASE Current exemptions, basis & reference Commodities purchased for resale. Exemption independent of vendor. Ref. s. 287.012(5) FS. Prescriptive assistive devices, e.g. prosthetics, orthotics, wheelchairs. Exemption independent of vendor. Ref. s. 287.057(5)(e) FS.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Artistic services. Exemption independent of vendor. Ref. s. 287.057(5)(f) FS. Artist defined in s.287.012(3) FS. Academic program reviews. Exemption independent of vendor. Ref. s. 287.057(5)(f) FS.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Lectures by individuals. Exemption independent of vendor. Loc. cit. Auditing services. Same. Legal services, incl. attorney, paralegal, expert witness, appraisal, or mediator services. Same.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Health services. Same. Services provided to persons with mental or physical disabilities by not- for-profit corporations. Requires consideration of price and other factors. Exemption considers both the service and the source. Loc.cit.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Medicaid services by a health care provider who has not received a provider number, exemption valid 90 days. Exemption considers both the service and the source. Loc.cit. Family placement services. Exemption independent of vendor. Loc. cit.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Prevention services related to mental health, and shelters for runaways operated by non-profits. Requires consideration of price and other factors. Exemption considers both the service and the source. Loc.cit.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Training & education services provided to injured employees. Exemption independent of vendor. Loc. cit. Contracts pursuant to s. 337.11 FS: the construction and maintenance of all roads.... rest areas, weigh stations, and other structures, including roads, parking areas, supporting facilities and associated buildings. Exemption independent of vendor. Loc. cit.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Services or commodities provided by governmental agencies. Exemption independent of commodity or service. Loc. Cit. Use definition of agency in s. 163.3164, FS: (a) The United States or any department, commission, agency, or other instrumentality thereof. (b) This state or any department, commission, agency, or other instrumentality thereof. (c) Any local government, as defined in this section, or any department, commission, agency, or other instrumentality thereof. (d) Any school board or other special district, authority, or governmental entity.

EXEMPT PURCHASE Current exemptions, basis & reference, cont. Continuing education events or programs offered to the general public and for which fees collected pay all expenses. Exemption independent of vendor. Ref. 287.057(5)(g) FS.

EXEMPT PURCHASE Exemptions per Rule 60A-1.002(3)FAC Regulated utilities & govt. franchised services Regulated public communications except long distance Promotional servicesfrom donated funds by the Secretary of State Payments for membership dues pursuant to s.216.345 Examinations approved per s.455.217(1)(c) Adoption placement services

PROCUREMENT METHODS INFORMAL COMPETITIVE PURCHASE (QUOTE)

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) Chapter 287 FS requires competitive purchases over $25,000, with some exceptions, and is silent on smaller purchases. Rule 60A-1.002(3), FAC, addresses informal bids, $2,500 through $25,000.

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) Requirements of rule 60A-1.002 are simple: Obtain informal bids in writing, or make a written record. If fewer than two quotes are received, document why. Document if proceeding with a single source and/or negotiated purchase.

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) Remember: In determining the bid threshold, do not consider only the immediate transaction. Consider requirements for that commodity class and group on an agency-wide (or purchasing office area-wide) basis [ref. 60A-1.002(5) Fla. Admin. Code].

INFORMAL COMPETITIVE PURCHASE (QUOTE, INFORMAL BID) As in formal bidding, announce all requirements, terms and conditions, relevant dates, and selection criteria. Treat all vendors alike: No disclosures or collusion to favor one over another. AWARD NEED NOT BE BASED ON RESPONSIVENESS AND PRICE ALONE! CAN DO A MINI RFP OR MINI ITN.

PROCUREMENT METHODS FORMAL COMPETITIVE PUCHASES: ITB, RFP, ITN

FORMAL COMPETITIVE: ITB, RFP, ITN Section 287.057, Florida Statutes, and Rule 60A-1.002(4), Florida Administrative Code, require formal competitive solicitations for purchases exceeding Category Two (287.012, FS). Exceptions include exempt purchases, and single source and emergency purchases.

FORMAL COMPETITIVE: ITB, RFP, ITN The formal competitive methods are Invitation to Bid Request for Proposal Invitation to Negotiate

FORMAL COMPETITIVE: ITB, RFP, ITN These methods are ranked in order of preference. ITB is the first choice, with written justification required for one of the other choices.

FORMAL COMPETITIVE: ITB, RFP, ITN RFP is the second choice, and is in fact the second most price-driven solution. ITN requires justification as to why neither of the others will result in best value [287.045(3)]. Best value is defined as the highest overall value based on objective factors not limited to price, quality, design, and workmanship. [s.287.012(4)]

FORMAL COMPETITIVE: ITB, RFP, ITN Note that while ranked from most price-driven to least price-driven (lets discuss!), the ranking also moves from least to greatest flexibility! Note also that they are ranked from least to most complex, and least to most time consuming!

FORMAL COMPETITIVE: ITB, RFP, ITN Lets consider Reasons for choosing one or the other Advertising the solicitation Specifications/Statement of Work Vendor input Responsiveness & Responsibility Evaluation criteria and their weights, including price & other factors

REASONS FOR CHOOSING AN ITB 1.Standard off-the-shelf products are known to meet the need 2.Standard services of a usual commercial type and price structure, especially technical or non-professional services, such as custodial or waste removal services, or equipment maintenance are known to meet the need 3.Filling an immediate need one or a few times, or fulfilling a long term requirement with repetitive deliveries of same or similar products/services

REASONS FOR CHOOSING AN ITB 4.Wide competition is available 5.The agency desires to fulfill the requirement at the lowest possible price consistent with at least meeting its minimum standards. 6.The vendors experience, education, understanding of your mission, etc., dont greatly impact the agencys results.

REASONS FOR CHOOSING AN ITB 7.Any concerns about vendor qualifications can be easily addressed by a simple submittal with the bid, e.g. copy of occupational license, certification by the manufacturer that vendor is a trained/authorized provider, three satisfactory references, etc.

ADVERTISING THE ITB The ITB must be made available simultaneously to all vendors [287.057(1)]. Advertising is required for a minimum of 10 calendar days [s.287.042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state. A longer period may be advisable to assure adequate competition. 30 days may be reasonable.

SPECIFICATIONS/STATEMENT OF WORK, ITB Specs/SOW designed to avoid restrictive specifications and obtain maximum competition Deliverables are clearly and unequivocally spelled out Any product or service from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price

VENDOR INPUT, ITB Any necessary market research is conducted prior to solicitation Vendor conferences are more the exception than the rule Vendors have a limited time period to ask questions (up to 10 days before bid opening or as otherwise specified) Disputes must be noticed within 72 hours of public posting of the ITB

RESPONSIVENESS & RESPONSIBILITY, ITB Responsive bid means a bid that conforms in all material respects to the solicitation. (Material means bid meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage).

RESPONSIVENESS & RESPONSIBILITY, ITB Responsible denotes a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287.012(24)]

RESPONSIVENESS & RESPONSIBILITY, ITB While vendor capability is not scored, responsibility can be considered: 1.Review suspended and convicted vendor lists 2.Use complaints for tie breakers

RESPONSIVENESS & RESPONSIBILITY, ITB 3.Make certain that any necessary responsibility indicators are mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references of satisfactory service, location proximate to the work, D & B rating, etc. 4.Require bonding and/or insurance if appropriate to mitigate risk

RESPONSIVENESS & RESPONSIBILITY, ITB 5.Consider at the time of evaluation any other relevant information you may obtain, e.g. from the company web site or other business related sites, or from state records.

EVALUATION CRITERIA & WEIGHTS All applicable terms and conditions, including the criteria to be used in determining acceptability must be stated in the ITB. Include the price for each year for which the contract may be renewed. Criteria not set forth may not be used. Ref. s.287.057(1) FS

EVALUATION CRITERIA & WEIGHTS Bidders are compared to each other only as to price. The low responsive bid from a responsible bidder gets the award.

REASONS FOR CHOOSING AN RFP 1.It is not practicable to specifically define the scope of work, and the vendor will propose [287.012(22)]. 2.Professional and technical expertise and quality of the vendor and proposed offering are critical to success. 3.Requirements include non-standard products/services, with some flexibility in what is ultimately purchased. 4.The agency seeks to balance price and quality to achieve the best value.

REASONS FOR CHOOSING AN RFP 5.There are believed to be more than two or three vendors who can submit a satisfactory offer. 6.The agency does not anticipate a need to revise the solicitation and proposals after initial receipt. Document the reason an ITB was not used [287.057(2) FS]

ADVERTISING THE RFP The RFP must be made available simultaneously to all vendors [287.057(2)]. Advertising is required for a minimum of 10 calendar days [s.287.042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state. A longer period may be advisable to assure adequate competition. 42-60 days may be reasonable.

SPECIFICATIONS/STATEMENT OF WORK, RFP Specs/SOW designed to avoid restrictive specifications and obtain maximum competition. Objectives, outcomes, performance specifications and measures are set forth, in addition to any commodity specifications or service outputs. A proposal from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price and other factors which make it the most advantageous to the state [287.057(2)].

VENDOR INPUT, RFP Market research is conducted prior to solicitation Disputes must be noticed within 72 hours of public posting of the RFP Vendor conferences are more the rule than the exception Vendors are invited to submit questions prior to and during a pre- proposal conference.

VENDOR INPUT, RFP Vendor questions and tentative answers are discussed at a pre-proposal conference, with the aim of learning from the vendors of any ambiguities, omissions, contradictions, or other possibly better terms and conditions that can be considered to improve the RFP, and assisting the vendors to understand the agencys requirements and objectives. A written addendum providing official answers and changes to the solicitation will be published following the conference.

VENDOR INPUT, RFP Discussions may be held to clarify offers, if allowed by the terms of the RFP.

RESPONSIVENESS & RESPONSIBILITY, RFP Responsive proposal means a proposal that conforms in all material respects to the solicitation. (Material means bid meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage).

RESPONSIVENESS & RESPONSIBILITY, RFP Responsible denotes a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287.012(24)]

RESPONSIVENESS & RESPONSIBILITY, RFP Vendor capability is typically scored, and is a factor in determining the award. In addition, responsibility can be considered similarly to an ITB process: 1.review suspended and convicted vendor lists 2.use complaints for tie breakers

RESPONSIVENESS & RESPONSIBILITY, RFP 3.Make certain responsibility indicators mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references, location proximate to the work, D & B rating, etc. 4.Require bonding and/or insurance if appropriate to mitigate risk

RESPONSIVENESS & RESPONSIBILITY, RFP 5.Consider at the time of evaluation any other relevant information you may obtain, e.g. from the company web site or other business related sites, or from state records.

EVALUATION CRITERIA & WEIGHTS All applicable terms & conditions, including the criteria to be used in determining acceptability, which shall include but need not be limited to price, must be stated in the RFP. Include the price for each year for which the contract may be renewed. Award shall be to the proposal determined in writing to be the most advantageous, taking into consideration price & the other criteria set forth in the RFP. Ref. s.287.057(2) FS

EVALUATION CRITERIA & WEIGHTS Respondents are compared to each other as to price and the other criteria identified in the RFP, such as qualifications and proposed processes, equipment and services (solutions). The highest scoring responsive proposal from a responsible vendor gets the award, as the most advantageous to the state.

REASONS FOR CHOOSING AN ITN 1.Negotiations may be necessary to receive the best value [287.012(17)]. The use of an ITB or RFP will not result in the best value[287.057(3)]. 2.Non-standard or customized products/services or systems. 3.High complexity. 4.Emphasis on technology.

REASONS FOR CHOOSING AN ITN 5.Process re-engineering may be included. 6.Innovative solutions may be required. 7.Performance based contract may be sought. 8.Outsourcing of governmental functions is included.

REASONS FOR CHOOSING AN ITN 9.Highly professional service requirements. 10.Limited availability of competition. 11.Multiple options for achieving the desired results. 12.Uncertainty of how much of the wish list can be had within budget or time requirements, and willingness to adjust.

REASONS FOR CHOOSING AN ITN 13.Mission critical for the agency. 14.Significant portion of the agencys procurement budget. 15.Long term relationship with the contractor. 16.Price is important but not enough by itself to select from among the responsive offers. A written determination for selecting an ITN process is required [s.287.057(3)].

ADVERTISING THE ITN The ITN must be made available simultaneously to all vendors [287.057(3)]. Advertising is required for a minimum of 10 calendar days [s.287.042(3)], unless the agency determines in writing that a shorter period is necessary to avoid harming the interests of the state. A longer period may be advisable to assure adequate competition. 42-60 days may be reasonable.

ADVERTISING THE ITN Typically, competitive negotiations are a two-step process. In the first step, respondents are ranked, and a short list of firms to participate may be developed, and in the second step, negotiations are conducted with the top ranked or short- listed firms to arrive at the award of a contract. This requires additional time, usually 3 or more meetings at weekly intervals with each negotiating firm.

SPECIFICATIONS/STATEMENT OF WORK, ITN Specs/SOW designed to avoid restrictive specifications and obtain maximum competition. Objectives, outcomes, performance specifications and measures are set forth, in addition to any commodity specifications or service outputs. A best-and-final offer (BAFO) from a responsible vendor, meeting or exceeding the requirements, will be considered for award based on price and other factors which make it the most advantageous to the state [287.057(3)].

VENDOR INPUT, ITN Market research is conducted prior to solicitation Disputes must be noticed within 72 hours of public posting of the ITB Vendor conferences are more the rule than the exception Vendors are invited to submit questions prior to and during a pre- proposal conference.

VENDOR INPUT, ITN Vendor questions and tentative answers are discussed at a pre- proposal conference, with the aim of learning from the vendors of any ambiguities, omissions, contradictions, or other possibly better terms and conditions that can be considered to improve the RFP. A written addendum providing official answers and changes to the solicitation will be published following the conference.

VENDOR INPUT, ITN After the vendors are selected for participation in negotiations, it may be useful to hold a debriefing meeting with each in turn, more fully explaining the states view of their initial proposal, how it may be improved, and asking any questions the team has that may lead to revisions of our requirements or the vendor proposals.

VENDOR INPUT, ITN Meet separately with each selected vendor for fact finding and proposal development. And, be open to further revisions of the requirements document. If useful during one of these negotiation process meetings, theres nothing wrong with taking a break during a meeting for the parties to confer separately, call home, or whatever, and then reconvene.

VENDOR INPUT, ITN Negotiation offers the greatest flexibility of the three methods discussed, allowing both the requirements of the agency and the proposal of the respondent to be repeatedly improved after the initial solicitation and response. The agency may obtain maximum value from the vendors expertise, by encouraging vendors to offer suggestions for requirements and solutions, and price/quality trade-offs.

VENDOR INPUT, ITN In addition, the purchasing officer guiding the ITN process can craft it so that technical errors of responsiveness or responsibility, which often plague the ITB and RFP processes, resulting in exclusion from consideration of what may be the best offer, or litigation, can be resolved at the negotiation table.

RESPONSIVENESS & RESPONSIBILITY, ITN Responsive proposal or best-and- final offer (BAFO) means a proposal that conforms in all material respects to the solicitation. (Material means offer meets mandatories indicated by must, shall and will {usually}, allows for comparison with other offers, and does not include additional cost to the state or deviations which confer a competitive advantage).

RESPONSIVENESS & RESPONSIBILITY, ITN Responsible denotes a vendor who has the capability in all respects to fully perform the contract requirements and the integrity and reliability that will assure good faith performance. [287.012(24)]

RESPONSIVENESS & RESPONSIBILITY, ITN Vendor capability is typically scored, and is a factor in determining the award. In addition, responsibility can be considered similarly to an ITB process: 1.Review suspended and convicted vendor lists 2.Make certain responsibility indicators mandatory, such as, occupational licensing, employee training and certification, certification of years in business, minimum number of verifiable references, location proximate to the work, D & B rating, etc.

RESPONSIVENESS & RESPONSIBILITY, ITN 4.Use complaints for tie breakers 5. Require bonding and/or insurance if appropriate to mitigate risk 6.Consider at the time of evaluation any other relevant information you may obtain, e.g. from the company web site or other business related sites, or from state records.

EVALUATION CRITERIA & WEIGHTS All applicable terms & conditions, including the criteria to be used in determining acceptability, must be stated in the ITN. Include the price for each year for which the contract may be renewed. Evaluate & rank responsive replies. Select one or more vendors to commence negotiations.

EVALUATION CRITERIA & WEIGHTS Award shall be to the proposal determined in writing to offer the best value to the state. The contract file must contain a statement that explains the basis for the vendor selection, and sets forth the deliverables and price, and how they provide best value. Ref. s.287.057(3) FS

EVALUATION CRITERIA & WEIGHTS Respondents are compared to each other as to price and the other criteria identified in the ITN, such as qualifications and proposed processes, equipment and services (solutions). The best value gets the award. This would be reflected as the highest scoring responsive best-and- final offer from a responsible vendor.

OTHER NEGOTIATION PROCESSES Informal negotiations may be conducted with or between State Contract, State Purchasing Agreement and agency contract vendors, or a combination thereof. Informal negotiations may be conducted with single source vendors. Informal negotiations may be conducted with exempt vendors. Informal negotiations may be conducted with incumbent vendors due to changes in circumstances or objectives, or at renewal decision points.

PROCUREMENT METHODS SINGLE SOURCE

fair and open competition is a basic tenet of public procurement; competition reduces the appearance and opportunity for favoritism and inspires public confidence that contracts are awarded equitably 287.001, FS

SINGLE SOURCE AUDITOR GENERAL BILL MONROES REPORT IN 2001 CRITICIZED INAPPROPRIATE USE OF SINGLE SOURCE, ADVOCATED WEB POSTING. THIS LED TO SECTION 15 OF HB1977 IN 2002 REVISING S.287.057 ON SINGLE SOURCES.

SINGLE SOURCES AS OF JULY 1, 2002 1.Section 287.057(5)(c) applies. 2.Single source descriptions must be posted on the web 7 business days. 3.Thereafter, if determined to proceed, post intended decision 3 business days, providing point of entry for protest.

SINGLE SOURCES AS OF JULY 1, 2002 IF SINGLE SOURCE EXCEEDS CATEGORY 4, $150,000, REQUEST AUTHORITY FROM DMS BEFORE POSTING NOTICE OF INTENDED DECISION. DMS HAS 21 DAYS TO RESPOND.

SINGLE SOURCE 60A-1.002(6) FAC: Over $25,000, persons taking part in the development or selection criteria for evaluation, the evaluation process, or the award process shall attest in writing that they are independent of and have no conflict of interest in, the entities evaluated and selected.

ELEMENTS OF SINGLE SOURCE DESCRIPTION SS# ___ AGENCY ________ Statutory reference if applicable Commodity or Service Required Performance and/or Design Reqs Intended Source & Price Justification for single source Approved by Request for information

ELEMENTS OF NOTICE OF INTENDED DECISION SS# ___ AGENCY _________ Statutory reference Commodity or Service Required Performance and/or Design Reqs Intended Source & Price Justification for single source Approved by Point of entry language (Ch.120)

REQUEST FOR DMS APPROVAL Furnish the information required on PUR 7777, available on State Purchasing Forms web site Attach copies of advertisement Attach any responses from vendors Explanation of rejection, if any offers received Confirmation of vendor registrations (MFMP) Submit by email to [email protected]

JUSTIFYING A SINGLE SOURCE There are few absolute single source products and services. Most single source purchases are situational. Consider the following: NECESSARY: Is this commodity or service necessary to accomplish the agencys task or mission? UNIQUE: Is this commodity or service, or some necessary features, unique to this source? If the answer isnt yes to BOTH, you do not have a legitimate single source.

JUSTIFYING A SINGLE SOURCE CAVEAT EMPTOR: FOLLOWING THE SINGLE SOURCE POSTING REQUIREMENTS IS NOT SUFFICIENT TO KEEP YOU AND YOUR CUSTOMER OUT OF TROUBLE

MISUSING SINGLE SOURCE IS A FELONY S.838.22, Florida Statutes: IT IS UNLAWFUL FOR A PUBLIC SERVANT, WITH CORRUPT INTENT TO CIRCUMVENT A COMPETITIVE BIDDING PROCESSBY USING A SOLE-SOURCE CONTRACT ANY PERSON WHO VIOLATES THIS SECTION COMMITS A FELONY

WHAT TO DO WHEN IN DOUBT, BID IT OUT COMPETITION VS. SINGLE SOURCE ROUTINELY SAVES 10%-30% AVOID SINGLE SOURCE FOLLOW- ONS TO COMPETITIVE PURCHASES: CONSIDER LONGER TERM COMPETITIVE CONTRACTS WITH ADDITION/DELETION CLAUSES, AND PRICING TIED TO INDICES

WHAT TO DO TAKE RESPONSIBILITY. Dont hesitate to state your position to your customers. Your authority as a state purchasing agent is limited to lawful activities. Document your file. COMMUNICATE. Dont accept requests for single sources without comment. Explain requirements and the reasons for them. Cite the statutes. Provide effective alternatives.

WHAT TO DO Even with single source vendors, it may be possible to negotiate more favorable terms. Do your homework, be proactive.

PERSPECTIVE CAVEAT: You are not the Supreme Court. You have a professional opinion. Your responsibility is commensurate with your authority. Higher authority may accept responsibility commensurate with its authority.

PERSPECTIVE 1.If you cant help them, they dont need you. 2.Program areas do not exist to support administrative services. Au contraire. 3.Always be prepared to offer effective alternatives, and take responsibility for helping. 4.See point number one.

PERSPECTIVE If your office is typically not included by agency decision makers early enough to work at maximum effectiveness in undertakings that require major purchases, work to turn that around. Clarify timelines and the support that can be provided.

PROCUREMENT METHODS EMERGENCY PURCHASES

WHAT: A PURCHASE IS REQUIRED TO ADDRESS AN IMMEDIATE DANGER TO THE PUBLIC HEALTH PUBLIC SAFETY PUBLIC WELFARE OR OTHER SUBSTANTIAL LOSS TO THE STATE.[287.057(5) FS]

EMERGENCY PURCHASES PROCEDURE 1.AGENCY HEAD MAKES A WRITTEN DETERMINATION OF THE REQUIREMENT FOR EMERGENCY ACTION (PUR 7800) WITHIN 30 DAYS. 2.OBTAIN AND DOCUMENT PRICING FROM AT LEAST TWO PROSPECTIVE VENDORS, UNLESS THE AGENCY ALSO MAKES A WRITTEN DETERMINATION THAT THE TIME REQUIRED WILL INCREASE THE IMMEDIATE DANGER OR LOSS

EMERGENCY PURCHASES PROCEDURE (CONT.) 3.FURNISH TO DMS ALL WRITTEN DETERMINATIONS CERTIFIED UNDER OATH AND ANY OTHER DOCUMENTS RELATING TO THE EMERGENCY ACTION. 4.FURNISH A COPY TO THE CFO WITH THE VOUCHER AUTHORIZING PAYMENT.

EMERGENCY PURCHASES PROCEDURE (CONT.) [60A-1.046, FAC] State Purchasing will not approve any emergency purchase, as the burden of proof rests with the certifying officer Emergency certifications on form PUR 7800 will be reviewed by State Purchasing

PERSPECTIVE GET YOUR CUSTOMERS WHAT THEY NEED WHEN THEY NEED IT PLAN AHEAD TO THE EXTENT POSSIBLE OBTAIN THE BEST VALUE POSSIBLE DO NOT MISREPRESENT A N0N- EMERGENCY AS AN EMERGENCY

PUBLIC RECORDS FRAUD S.839.13 FS: if anypublic officer, or employeeofa public agency, shall falsifyany recordor shall knowingly and willfullyconceal any issue, or shallfalsify any documentor be in anywise concerned therein, the personshall be guilty of a misdemeanor punishable as provided in s. 775.082 or s.775.083.

OFFICIAL MISCONDUCT S.839.25 FS: (1) Official misconduct means the commission of the following act by a public servant, with corrupt intent to obtain a benefit for himself or herself or another or to cause unlawful harm to another: knowingly falsifying, or causing another to falsify, any official record or official document. (2) Corrupt means done with knowledge that act is wrongful and with improper motives. (3) Official misconduct is a felony

PROCUREMENT METHODS STRATEGIC SOURCING BY STATE PURCHASING

STRATEGIC SOURCING IS A CONCEPT AND PROCESS INTRODUCED TO STATE PURCHASING BY ACCENTURE, AS PART OF THE EPROCUREMENT & CONSULTING CONTRACT AWARDED TO THE FIRM OCTOBER 22, 2002.

STRATEGIC SOURCING BY STATE PURCHASING THE OBJECTIVE: DRIVE DOWN THE COST OF PURCHASED COMMODITIES AND SERVICES AS A STRATEGY FOR IMPROVING THE FINANCIAL HEALTH OF THE STATE, AND FREEING RESOURCES TO BE APPLIED TOWARD ACHIEVING THE GOVERNORS OBJECTIVES. SOMETIMES REFERRED TO AS SPEND MANAGEMENT.

GOVERNORS OBJECTIVES IMPROVING STUDENT ACHIEVEMENT REDUCING VIOLENT CRIME & DRUG USE CREATING A SMALLER, MORE EFFECTIVE & EFFICIENT GOVERNMENT BUILDING ECONOMIC OPPORTUNITY FOR ALL HELPING THE MOST VULNERALBE IMPROVING QUALITY OF LIFE & THE ENVIRONMENT

STRATEGIC SOURCING BY STATE PURCHASING 1. IDENTIFY THE LARGEST EXPENDITURES FOR COMMODITIES AND SERVICES. COLLECTION OF DATA FROM THE STATE ACCOUNTING SYSTEM, WITH BACKUP FROM THE PURCHASING SYSTEM.

STRATEGIC SOURCING BY STATE PURCHASING 2.ESTABLISH AN ORDER FOR MOVING FORWARD ON THE VARIOUS SPENDING CATEGORIES BASED UPON ESTIMATES OF POTENTIAL SAVINGS AND EASE OF ACHIEVEMENT. E.G. FIRST STRATEGIC SOURCINGS LAUNCHED, OFFICE SUPPLIES AND MRO.

STRATEGIC SOURCING BY STATE PURCHASING 3.PLAN TO USE THREE TACTICS TO ENHANCE COMPETITION & ACHIEVE ECONOMIES OF SCALE IN IMPLEMENTING THE STRATEGY a)COMBINE, CONSOLIDATE, AGGREGATE DISPARATE TRANSACTIONS AND CONTRACTS FOR VOLUME PRICING b)REDUCE SUPPLIER BASE c)WHERE APPROPRIATE, ESTABLISH LONGER TERM CONTRACTS.

STRATEGIC SOURCING BY STATE PURCHASING 4.ESTABLISH A TEAM OF PURCHASING EXPERTS AND LARGE USERS OF THE ITEMS OF CONTRACT FOR EACH STRATEGIC SOURCING EFFORT. 5.PERFORM INTERNAL PROFILE, I.E. ANALYZE NEEDS BASED ON PAST EXPERIENCE AND DISCUSSION OF PLANS AND TRENDS. Use data bases, surveys, discussions.

STRATEGIC SOURCING BY STATE PURCHASING 6.PERFORM EXTERNAL PROFILE, I.E. ANALYZE MARKET FORCES, TRENDS AND PLAYERS BASED ON PAST EXPERIENCE, MARKET INFORMATION FROM THE WEB & OTHER SOURCES, AND SURVEYS OF AND DISCUSSIONS WITH CURRENT VENDORS.

STRATEGIC SOURCING BY STATE PURCHASING 7.DEVELOP SOURCING STRATEGY. ITEMS AND GROUPING POSSIBLE NUMBER OF AWARDS CONTRACT LENGTH PRICE REDETERMINATION POLICY TYPE OF SOLICITATION (RFI, ITB, RFP, ITN, REVERSE AUCTION) BASIS OF AWARD, E.G. WEIGHTS, NON-PRICE FACTORS, POINTS.

STRATEGIC SOURCING BY STATE PURCHASING 8.CONDUCT THE COMPETITIVE SOLICITATION 9.EVALUATE THE RESPONSES 10.AWARD THE CONTRACT 11.ESTIMATE SAVINGS. 12.COMMUNICATE RESULTS TO THE CONTRACT USERS.

TIE BACK TO THE EPROCUREMENT SYSTEM 13.MANAGE USE OF CONTRACT TO MINIMIZE MAVERICK SPENDING 14.MEASURE SAVINGS THROUGH LIFE OF CONTRACT

TIE BACK TO THE EPROCUREMENT SYSTEM 15.COLLECT USAGE DATA THROUGH LIFE OF CONTRACT FOR USE IN NEXT ROUND OF STRATEGIC SOURCING (DATA TO BE USED IN NEXT ROUND OF SPEND ANALYSIS AND INTERNAL & EXTERNAL PROFILES) 16.USE (LEVERAGE is the buzz word) THE CAPABILITIES OF THE EPROCUREMENT SYSTEM.

Documents

PUBLIC PURCHASING IN FLORIDA PROCUREMENT METHODS (REV. 09/06/05)