Office of State Procurement - doa.la.gov · What is “DPA”? Formal written delegation from the Chief Procurement Officer Amount based on purchasing personnel, experience, training,

Office of State Procurement

Basic Fundamentals of Purchasing

• Guidelines• Methods of Procurement• Competitive Process• LAPS Contracts• Emergency Procurement• OSP Website Highlights

Purpose

What is “DPA”?

Formal written delegation from the Chief Procurement Officer

Amount based on purchasing personnel, experience, training, performance

Allows Agency to make independent purchases up to that amount

Delegated Purchasing Authority

What Governs Procurement?

La. Revised Statutes 39: 1551 – 1755 Creates Central Procurement Agency (OSP) Names State Chief Procurement Officer as its head Gives Chief Procurement Officer authority to procure all

supplies & operating services, unless otherwise provided in law

Provides for centralization of procurement by state agencies

Louisiana Administrative Code Title 34

Small Purchase Executive Order

Procurement Tools

Procurement Tools

Small Purchase (< $25,000)

Exempt per Executive Order

Competitive Sealed bid – ITB – Invitation to Bid

Request for Proposals - RFP

Methods of Procurement

The Small Purchase Executive Order has

multiple sections. This executive order is available on OSP’s

website under the Legal tab.

Small Purchases (<$25,000)

Small Purchase Thresholds

<$5,000 – no competition required

>$5,000 but <$15,000 – 3 quotations by telephone, email or fax

>$15,000 but <$25,000 – 5 quotations by telephone, email or fax

Purchases Exceeding Small Purchase Limit (>$25,000)

Competitive sealed bid

Procedures per RS 39:1594.B; Rules & Regulations Section 5

Must be advertised in newspaper and posted to LaPAC

Request for Proposal

Procedures per R.S. 39:1595

Must be advertised in newspaper and posted to LaPAC

Split Purchasing Prohibited

Purchases shall not be artificially divided within a cost center to avoid the competitive process

The Procurement Life Cycle

Working TogetherThe key to hitting the bullseye of success throughout the procurement cycle is through teamwork. This helps the State receive goods and services in a prompt efficient manner while getting the best value for their dollar.

LaPS (Louisiana Pricing Schedules) = Brand Name, LaMAS, Multi-State/Cooperative Purchasing

Formats – itemized, discount from price list, catalog

Mandatory/non-mandatory

Statewide Contracts

MMCAP National cooperative group purchasing organization

(GPO) for government facilities that provide healthcare services

Operated by the State of Minnesota, Office of State Procurement and self funded

Reduced Costs for Products and Services

Free Membership!

Annual Wholesaler Shareback Credit

Member Controlled Formulary

Nationwide Peer Networking Opportunities

MN Procurement Guidelines Fit States’ Requirements

MMCAP Benefits

Healthcare Products & Services Program Contracts

Products Services

Medical Supplies Service for Med Equipment

Dental Supplies Service for Dental Equipment

Drug Testing Products and Services

Third Party Administration with SAMHSA Certified Labs and Legal Service

Condoms

Laboratory Supplies

Pharmacy Program Contracts

Products Services

Pharmaceuticals Wholesale Distribution

Influenza Vaccine Prescription Filling

General Vaccines Repackaging

Diabetes Supplies Returned Goods Processing

Nutritionals Hazardous Waste Disposal

Vials and Containers Invoice Auditing

Emergency Preparedness

Clinical Pharmacists

MMCAP: ContactWWW.MMCAP.ORG

(651) 201-2420

Senior Account Executive

Bill Schneider

(317) 372-3194

[email protected]

SPECIAL COMMODITIES Telecommunications

Information Technology

Printing

Labor and material project purchases $5,000 or more

Vehicles

Elevator Maintenance

Used Equipmenthttp://www.doa.la.gov/pages/osp/contracts_index.aspx

Prison Enterprise

Contract No. 4400000932

Agencies may source the

contract directly

cleaning supplies, brooms, mops,

mattress, signage, BBQ pits, picnic tables, uniforms

Sheltered Workshop

Contract No. 4400007380

Agencies may source the

contract directly

Service Contracts basic janitorial,

delivery, computer workstation

Prison Enterprises and Sheltered Workshop Contracts

Sole Source

Proprietary Purchase

Used Equipment

Emergency Purchase

Other Methods of Procurement

Letter justifying why the purchase must be restricted to one

vendor/manufacturer

Firm Quote from the vendor/manufacturer for

requested product

Letter on company letterhead from the

vendor/manufacturer stating that they are the

only source for a particular product

A Published Price List or Signed & Notarized listing

of the manufacturer’s prices

REVISED STATUTES 39:1597

Sole Source purchase means that there is one Brand, one Supplier

Sole Source

Proprietary PurchaseREVISED STATUTES 39:1655

A proprietary purchase is similar to a sole source in that a particular product is the only one that will meet the needs of the agency, but, the manufacturer has chosen to distribute his product thru more than one distributor.

Letter justifying why the purchase must be proprietary

Specifications must be exact to that requested

An approved proprietary purchase must be declared in the

solicitation. Such as: “This Solicitation has been approved as a proprietary purchase and only

bidders meeting these exact specifications/brand will be

considered for an award”

A Proprietary purchase must be bid

USED EQUIPMENTREVISED STATUTES 39:1645

The purchase of Used Equipment falls under “Conditions for the Use of Sole Source Procurement” as defined in the Rules and Regulations: Title 34, Chapter 9; Section 905 (B)

As a general rule, an agency should procure new equipment, but it may be necessary or advantageous to purchase used equipment.

The most common reasons are:

• The inability to secure new equipment

• The lack of adequate funds for new equipment

• Used equipment that will satisfy the agency’s need is available at a substantial savings.

Emergency ProcurementA situation which creates a threat to public health, welfare, safety, or public property. It may arise by reason of floods, epidemics, riots, equipment failures, or such other reason as may be cited by the chief procurement officer. Such condition creates an immediate and serious need for supplies, services, or major repairs that cannot be met through normal procurement methods. The lack of which could seriously threaten:

The functioning of Louisiana Government The preservation or protection of property; or The health or safety of any person

Two Types of Emergency

Catastrophic – When the Governor declares a State of Emergency R.S. 39:1598 and LAC 34:1101-1111

Usual Emergencies – Brought about during the normal course of business;R.S. 39:1598 and LAC 34:1101-1111

Catastrophic Emergency

Governor declares a State of Emergency, Executive Orders are listed and outline procedures to be followed.

Purchases shall be well documented; include receipts, invoices, purchase orders; & rental agreements. These serve as a basis for settlement of claims and support the State’s request for supplemental federal assistance.

Seek OSP Statewide emergency contracts in eCat for best pricing

https://wwwcfprd.doa.louisiana.gov/OSP/LaPAC/eCat/dsp_eCatSearchLagov.cfm

Usual EmergencyThe Chief Procurement Officer may request an emergency purchase if situation involves possible threat to public health, welfare, safety or public property

Written determination that the basis of the emergency procurement was necessary is required from the Undersecretary, agency head, or its designee responsible for departmental procurements

Procurements that exceed an agency’s DPA must receive prior approval from the Office of State Procurement.

When possible, obtain quotations from three or more vendors when supplies, services, or major repairs are to be purchased. Accepted quote shall be confirmed in writing.

Emergency Procurement is limited to only those supplies, services, or major repair items necessary to meet the emergency

A record of the emergency procurement shall be maintained in the file and lists: Each Contractor’s name and phone number The amount and type of each emergency purchase A listing of the supplies, services, or major repairs procured The authorization number of each contract file

The record of emergency purchases for the previous fiscal year shall be submitted to the Legislature at the beginning of the legislative session.

Agency should contact OSP for direction

Emergency File Contents

OSP’S WEBSITE HIGHLIGHTS

Contacts (OSP staff, other agencies, etc.)

OSP Memos

Guidelines, procedures

Information for Emergency procurement

LaPac

Contract information (search LA eCat)

Legal info & search capability

Reference materials

Agency Information (Deficiency Complaints)

LA’s Electronic Catalog (eCat) Contract Search

All OSP contracts

are posted to

eCat

Searchable by a

variety of criterion

Contact line items

can be exported

into an Excel

spreadsheet

OSP HELP DESKPhone Number: 225-342-8010

Emails (preferred):

Purchasing: [email protected]

Professional Contracts: [email protected]

Vendor Inquiries: [email protected]

QUESTIONS?