PROCUREMENT TRAINING 101 City of New Orleans Presentation to Department of Finance March/April 2021 City of New Orleans Department of Finance Office of Procurement – Bureau of Purchasing Julien Meyer, Chief Procurement Officer
PROCUREMENT
TRAINING 101
City of New Orleans
Presentation to Department of Finance
March/April 2021
City of New Orleans
Department of Finance
Office of Procurement – Bureau of Purchasing
Julien Meyer, Chief Procurement Officer
Presenters and Contributors
Kai Wells
Stephanie Warren
Cheryl Morgan
Deniece Andrews
Bernice Ealy
Seth Leger
Tania Laurent
Demetris Barrow
Douglas Chastain
Alvin Anderson
Haley Slocum
Kimberly Crawford
Agenda
The Bureau of
Purchasing
Objectives of the Training
Let’s Break the Ice
Commonly Used Terms
Statutory Requirements
Preliminary Steps
Types of Needs
Procurement Methods
Alternative Methods of
Procurement
Exempt Purchases
Role of BRASS
Do’s and Don’ts
Learn/Find More
Forms
Questions
Post-Survey
Bureau of Purchasing
The Bureau of Purchasing is housed in the City's Finance Department and
serves as the central authority for all City Departments, Boards, and
Commissions' procurement and purchasing needs.
The Bureau of Purchasing strives to modernize procurement and
contracting procedures, implement a fair and transparent procurement
process while engaging local businesses, and maximize purchasing value
by applying best practices.
Finally, the Bureau of Purchasing adheres to the "Values and Guiding
Principles of Public Procurement" adopted by the National Institute for
Public Procurement ("NIGP"): Ethics, Impartiality, Accountability,
Professionalism, Service and Transparency.
Training Objectives
Demystifying the procurement process by:
1. Increasing participants familiarity with the basics of
procurement.
2. Helping participants to overcome challenges.
3. Describing the basic rules and regulations as relating to
procurement.
LET’S BREAK THE ICE
Procurement Buzzword Here is your Procurement Buzzword Bingo Card. Simply cross off each word as soon as it comes up in your head to these questions. As soon as you have completed a row, or column or diagonal line. - Bingo!
Commonly Used Terms
Procurement: the process involved to solicit supplies, materials,
equipment or services by renting, leasing, or purchasing.
Purchase: the act of acquiring supplies, materials, equipment or
services.
Solicitation: a request to obtain supplies, materials, equipment or
services and related pricing.
Event: a solicitation posted by the Bureau of Purchasing on the
Supplier Portal.
Commodity Codes: standard classification codes for products and
services used to detail where money is spent within a company.
Service: an identifiable task contracted for and performed by a third
party rather than a city employee.
Commonly Used Terms (cont.)
Bid: an offer in response to an invitation to bid.
Proposal: an offer for consideration in response to a request for
proposal.
Purchase Order: an offer to buy or lease that creates a legal and
financial obligation.
Requisition: a formal request from a department to purchase goods
and/or services.
Bid Contract: a written contract resulting from an Invitation to Bid.
Professional Services Agreement: a written contract resulting from a
Request for Proposals or Qualifications.
Statutory Requirements
State Statutes Example: Public Bid Law for public works and materials and supplies.
City Charter Example: Section 2-8(a) - The City cannot execute a contract with a party that owes
delinquent taxes to the City.
City Code Example: Section 70-420 – A sale to a department without a purchase order is forbidden.
CAO Policy Example: CAO Policy No. 24 on Movables and Non-Professional Services.
Purchasing Policy and Procedure Example: City’s Federal Grant Procurement Policy.
Federal Regulations Example: 2 CFR 200.320 Methods of Procurement to be Followed.
WHERE DO I BEGIN?
Identify your Funding Source City? State? Federal? Private Grant? Public Grant?
Are there any specific rules linked to the funding source?
Identify your Budget How much do you plan on spending?
How can I find out the cost of what I need?
Identify your Timeline When do you need to have the goods in hand or services rendered?
Do you have a contract with an incumbent vendor? If yes, when does it expire?
Is it a one-time purchase or a repetitive purchase?
Identify your Needs How do I know what I need to purchase?
HOW DO I KNOW WHAT I
NEED TO PURCHASE?
If I can hug it, feel it or move it, I need “Goods.” Examples: Chairs, Computers, Office Supplies, Fuel Truck.
If I need a service to be performed by someone without a
formal degree, I need “Non-Professional Services.” Examples: Janitors, Private Security Officers, Caterers, Mechanics.
If I need a service to be performed by someone with a
degree or specific license, I need a “Professional
Service.” Examples: Architects, Engineers, Appraisers, Lawyers.
If I need to build, alter, improve, or repair a city building,
it is a “Public Works” project. Examples: New Playground, Roadwork, HVAC Repairs.
Purchasing Says
Trivia Game Inspired by
What are the four factors to consider
before you begin the procurement
process?
Funding Source
Timeline Need
Budget
HOW DO I PURCHASE
WHAT I NEED?
WHAT ARE THE TYPES OF
PROCUREMENT?
Goods and Non-Professional Services One-time purchase or per calendar year for $1,000 or less
Invitation to Quote (ITQ) for purchase more than $1,000 but less than $20,000
Invitation to Bid (ITB) for purchase at $20,000 or more
Professional Services One-time purchase or per calendar year for $15,000 or less
Purchase over $15,000:
Request for Proposals (RFP)
Request for Qualifications (RFQ)
Public Works Informal ITB if project budget is $150,000 or less
Formal ITB if project over $150,000
PURCHASE FOR $1,000 OR LESS Goods and Non-Professional Services
1 – WRITTEN QUOTE(S)
3 – AUTO GENERATED PURCHASE ORDER (PO)
5 – VENDOR PLACES ORDER
6 –SERVICES/GOODS RENDERED/RECEIVED
7 – RECEIPT, INVOICE, AND SERVICE INVOICE
APPROVAL
START HERE
2 – REQUISITION, ATTACHMENT, AND
APPROVAL
4 – PO ISSUED UNLESS INCOMPLETE
8 – PAYMENT NET30 FROM
DATE OF INVOICE
INVITATION TO QUOTE PROCESS Goods and Non-Professional Services
More than $1,000 but less than $20,000
3. CREATE AND RELEASE ITQ 4. QUOTES AND RECOMMENDATION
FROM DEPARTMENT
5. AWARD AND PURCHASE
ORDER
6. SERVICES/GOODS
RENDERED/RECEIVED
1. FUNDING, BUDGET, TIMELINE,
AND NEEDS
7. RECEIPT, INVOICE, SERVICE
INVOICE APPROVAL AND
PAYMENT NET 30 FROM DATE
OF INVOICE
2. INTAKE FORM, SPECIFICATIONS,
AND REQUISITION
START HERE
INVITATION TO BID PROCESS Goods, Non-Professional Services, Public Works
3. ITB CREATED, RELEASED,
ADVERTISED AND PRE-BID
CONFERENCE
4. BID OPENING, RESPONSIVENESS CHECK,
DBE REVIEW, AND RESPONSIBILITY CHECK
5. RECOMMENDATION, AWARD
AND WRITTEN CONTRACT
6. SERVICES/GOODS
RENDERED/RECEIVED
1. FUNDING, BUDGET, TIMELINE,
AND NEEDS
7. RECEIPT, INVOICE, SERVICE
INVOICE APPROVAL AND
PAYMENT NET 30 FROM DATE
OF INVOICE
2. BID PROCUREMENT
AUTHORIZATION,
SPECIFICATIONS, AND
REQUISITION
START HERE
INVITATION TO BID Main Characteristics
SEALED BID
Bids are kept confidential and opened in public
ADVERTISEMENT
30 days
LOWEST BIDDER
Bid tabulation
RESPONSIVE
Does the bidder meet the requirements?
Did the bidder follow the bid instructions and provide all the required documentation?
RESPONSIBLE
Can the bidder do the job or provide the goods?
If not, an informal hearing must take place
NOTIFICATION OF AWARD
Intent to Award Letter and Award in BRASS
WRITTEN CONTRACT
City and the successful bidder must execute a written contract
NO CHANGES ALLOWED
Unless there is a specific provision that contemplates changes (example: escalation clause)
PROFESSIONAL SERVICES $15,000 OR LESS
1 – WRITTEN PROPOSAL(S)
3 – WRITTEN PROFESSIONAL SERVICES AGREEMENT
EXECUTED BY VENDOR AND MAYOR
5 – VENDOR SUBMITS INVOICE IN BRASS
6 – DEPARTMENT APPROVES INVOICE IN BRASS
7 – PAYMENT NET30 FROM
DATE OF INVOICE
START HERE
2 – MANUAL CONTRACT PROCESS IN
BRASS
4 – WORK BEGINS
PROFESSIONAL SERVICES Over $15,000 – RFP/RFQ
3. RFP/RFQ CREATED, RELEASED,
ADVERTISED, AND PRE-PROPOSAL
CONFERENCE
4. PROPOSAL DEADLINE, RESPONSIVENESS CHECK,
AND SELECTION COMMITTEE MEETING
5. SELECTION, AWARD,
NEGOTATION, AND CONTRACT
EXECUTION
6. NOTICE TO PROCEED AND
SERVICES RENDERED
1. FUNDING, BUDGET, TIMELINE
AND NEEDS
2. PROCUREMENT
AUTHORIZATION, SCOPE OF
WORK, CHECKLIST, AND
REQUISITION
START HERE 7. INVOICE, INVOICE APPROVAL
AND PAYMENT NET30 FROM
DATE OF INVOICE
REQUEST FOR PROPOSALS Main Characteristics
ADVERTISEMENT 30 days
BEST VALUE Technical criteria (experience, competence, past project, team, etc.)
RESPONSIVE Did the respondent provide all required documentation?
REFERENCE AND FINANCIAL CHECK Department can ask for additional information
SELECTION COMMITTEE Proposals evaluated in a public meeting which can end with a selection
NOTIFICATION OF AWARD Intent to Award Letter and Award in BRASS
NEGOTIATION The City can negotiate the terms and conditions with the selected respondent
WRITTEN CONTRACT City and successful respondent must execute a written contract
ALTERNATIVE METHODS OF
PROCUREMENT
UNIQUE OR NON-COMPETITIVE Sole source or no responses to competitive solicitations
Warning: Federal regulations refer to “single source”
PIGGYBACK Procurement by another political subdivision
Example: contract for uniforms with Jefferson Parish
STATE CONTRACT Procurement by the State of Louisiana
Example: State Contract with HP for computers
EMERGENCY Declaration(s) by the Federal Gov’t, State, City or City Council
EXEMPT PURCHASES Some items cannot be competitively procured
EXEMPT PURCHASES
Inter-Department Billing
Advertising with a media to target a specific audience
Membership fees and dues
Newspaper and magazine subscriptions directly from the
publisher
Utility services
Settlement claims
Disbursement of funds to governmental bodies
WHAT IS THE ROLE OF BRASS IN
PROCUREMENT?
QUOTE, INFORMAL AND
FORMAL EVENTS QUOTES, PROPOSALS, BIDS AND AWARD
PURCHASE ORDER OR
WRITTEN CONTRACT
RECEIVING AND
INVOICE APPROVAL
SUPPLIER PORTAL
PAYMENT
BUDGET AND REQUISITION
Purchasing Says
Trivia Game Inspired by
What are the alternative methods of Procurement?
Unique or
Non-Competitive
Piggyback State Contract
Emergency Exempt Purchases
DO’S AND DON’TS
DO plan for your purchases and
projects.
DO get multiple quotes even when
competition is not required to
document your efforts to get a
reasonable and competitive price.
DO have all the required
documentation and information
necessary to assist buyers in
understanding the requisition.
DO prepare specifications/scope of
work, allowing multiple vendors to
compete.
DO check the DBE certification
directory to offer opportunities when
competition is not required.
DO NOT split a purchase or project to
avoid a competitive process.
DO NOT place an order without a
purchase order or written contract
DO NOT fail to disclose if you have a
relationship with a vendor that could
create a conflict of interest in fact or in
appearance.
DO NOT consider a vendor a “sole
source” unless you can document that
there is truly no other vendor offering a
product or service that meets the
City’s minimum requirements.
WHERE CAN I LEARN OR FIND
MORE?
OUR PAGE: www.nola.gov/purchasing
PUBLIC BID LAW: See Louisiana Legislative Auditor at www.lla.la.gov
STATE CONTRACTS: See Office of State Procurement at
www.doa.la.gov/pages/osp/index.aspx
CITY CODE: Municode Orleans Parish at
https://library.municode.com/LA/New_Orleans
WHERE ARE THE FORMS?
NEUTRAL GROUND
Under “Documents and Forms”
https://employee.nola.gov/forms/downloads/
MING.LE
It is the platform for communication in BRASS
The below screenshot shows the symbol for Ming.Le Home Page
More on Ming.Le at Find and Follow a Sourcing Event (nola.gov)
CONTACT YOUR BUYER
QUESTIONS
POST TRAINING SURVEY
We would love to get your thoughts regarding the
effectiveness of this training and any constructive
criticism you may have to aid in the improvement of the
training.
Please take a few minutes to complete our Post Training
Survey so we can collect your thoughts.