Purchasing
Guidelines,
Updates and
Tips
Joe Bryant– Purchasing
Supervisor
Tonya Hodges- Buyer
Outline
• References/ Definitions
• Documentation
• Small Purchases
• Bids, RFPs
• Pre-qualified Vendor Pools
• Public Notice
• Sole Source and Purchasing Exemptions
• Multiyear Contracts
• What to watch out for
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Bid Splitting
Ethics
Penalties
References
• Ethics Act ~ 67-16
• Procurement code ~ 63G-6a
• Utah Administrative Rules
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R33-3
Definitions
• “Procure” or “procurement”
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Means buying, purchasing, renting, leasing, leasing with an
option to purchase, or otherwise acquiring a procurement item
Includes all functions that pertain to the purchase of a
procurement item, including:
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Description of requirements;
Selection process;
Solicitation of sources;
Preparation for soliciting a procurement item;
Award of a contract; and
All phases of contract administration.
• “Procurement item” is a supply, a service, construction,
or technology
63G-6a
Documentation
 What is documented is done….we must provide if
requested under GRAMA Statute
 Include the following information….at a minimum:
 name of the provider
 description of the procurement item
 date of the procurement
 expenditure made
 Procurement officer maintains a record of all….
 contracts made pertaining to small purchases
 sole source procurement(s)
 emergency procurement(s)
63G-6a-2002
Small Purchases
• Thresholds for Individual Procurement Item(s) under
$1,000:
• Rules on small purchases may include the following:
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The use of electronic, telephone, or written quotes
Save quotes in your purchasing file
Individual Procurement Threshold = $1,000
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Maximum amount that can expend to obtain a single
item/service from one vendor at one time
63G-6a-408, R33-3
Small Purchases
Thresholds for Individual Procurement Item(s) under $1,000:
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Single Procurement Aggregate Threshold = $5,000
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REFERENCE UPDATED PROCUREMENT TRAINING 3.6.15
63G-6a-408, R33-3
Small Purchases
Thresholds for Individual Procurement Item(s) under $1,000:
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Annual Cumulative Threshold = $50,000
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Maximum total annual amount that can be expended to obtain
individual procurement items costing less than $1,000
purchased from the same vendor during the fiscal year (July 1June 30) not to exceed $50,000 without a procurement process
Examples:
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Artificial plants costing each $700, totaling $45,000
Packages of 10 CDs costing each $30, totaling $30,000
Reams of special bond paper costing each $20, totaling $20,000
Large storage bins $500, totaling $50,000
Plumbing Services through out the District, totaling $45,000
63G-6a-408, R33-3
Small Purchases –Blanket PO’s
Thresholds for Individual Procurement Item(s) under $1,000:
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Annual Cumulative Threshold = $50,000
Schools and Departments may select the best source by direct award without
seeking competitive bids or quotes
Whenever feasible, the school or department shall use a rotation system or other
system to allow for competition
Schools and Departments may not use small purchase standard procurement
process for ongoing, continuous, and regularly scheduled procurements that
exceed the annual cumulative threshold. Schools and Departments shall make
these types of purchases through a competitively bid process which will usually
result in a contract.
Cannot be used for ongoing, continuous, and regularly scheduled procurements.
63G-6a-408, R33-3
Small Purchases
Thresholds for Individual Procurement Item(s) over $1,001:
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Annual Cumulative Threshold = $50,000
$1,001 - $50,000
REFERENCE UPDATED PROCUREMENT TRAINING 3.6.15
63G-6a-408, R33-3
Exceeding Small Purchases
• Purchases $50,001 and greater
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Schools and Departments shall work with Purchasing to conduct an
invitation for bids, RFP, or approved Sole Source, depending on
circumstances
Invitation for Bids:
• Invitation for bids used to initiate a competitive sealed bid
procurement. It shall:
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State the period of time bids will be accepted
How/place bids should be submitted
Description of procurement items sought
Objective criteria to evaluate bids
Required contractual terms and conditions
Bids shall be opened publicly
Evaluate bids according to criteria
Award bid to lowest responsive and responsible bidder
63G-6a-601 through 612; R33-3
Exceeding Small Purchases
Request for Proposals
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Should be used when the exact product is not known or when there are
other factors that need to be considered besides the lowest price.
Request for Proposal shall:
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Period of time proposal will be accepted
Manner/place proposal be submitted
Description of procurement items sought
Description of subjective/objective criteria used
Relative weight given to each score awarded for criteria
Formula used to determine score awarded
If multiple stages will be used
Discussion may be conducted with respondent
Evaluate proposals according to criteria
Evaluation committee scores
Award proposal to highest responsive and responsible respondent
63G-6a-701 through 711; R33-3
Pre-qualified Vendor Pools
 Process to prequalify potential vendors to provide
procurement items
 Purchasing must issue a “request for qualifications”
 Procurement process
Qualifications may include:
 Type of procurement item requested
 The scope of work to be performed
 The instructions and deadline
 Minimum criteria
 Period of time list is in effect – not longer than 18 months
 May limit participation in bids/RFPs during period of time to potential vendors
63G-6a-402, 403, 404; R33-3-105
Pre-qualified Vendor Pools- cont.
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Minimum criteria may include:
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Prequalification requirements;
Performance rating criteria; and
May not be so restrictive to limit competition
If only 1 vendor results on potential list:
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Cancel the request for qualifications; and
List may not be used
Before making list public:
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Vendors, who did not meet min. qualifications, must receive a
written justification statements stating why
Within 30 days after day of deadline make list available to public
Equal treatment of approved vendors shall use unbiased
selection manner, for instance using a rotation system
(alphabetically, numerically, or randomly)
63G-6a-402, 403, 404; R33-3-105
Public Notice
Notice for Invitation for Bids or a RFP (> $50,000)
• Public notice includes :
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Name of issuing School or Department
Information on how to obtain a copy of the bid/RFP with submission
requirements
Date of opening/closing period
General description of procurement items (can’t be too restrictive)
• Notice published:
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At least 10 days before submission is required and posted on
Bidsync.com
63G-6a-406, 407; R33-3-104
Sole Source Procurement
• Sole Source:
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Only if requirement is reasonably available from a single supplier
Not sole source if:
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There is more than 1 potential bidder or respondent
Procurement Officer determines in writing
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Only 1 source for the item
Award to a specific supplier, service provider, or contractor is
condition of a donation that will fund full cost of supply, service, or
construction item
Circumstances which there is only 1 source for a procurement
item (compatibility of equipment, technology, software,
accessories, replacement parts, or service)
63G-6a-802; R33-3
Emergency Purchases
• Procurement officer or designee may authorize
emergency procurement without using standard
procurement process when emergency condition exits
• Purchases exceeding $50,000 require additional approval.
• Procurement officer shall:
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Make the authorization in writing;
State the emergency condition; and
Ensure procurement made with as much competition as
reasonably practicable while avoiding harm, risk of harm, to the
public health, safety, welfare, or property
63G-6a-803; R33-3
Multiyear Contracts
• The District can enter into a multiyear contract resulting
from an Invitation for Bids or RFP if:
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Determine it is in best interest of the District
Bid/RFP clearly state term of contract and renewals, and condition,
if any
• The District can not continue/renew multiyear contract
after it ends unless it engages in a new standard
procurement process
• Can’t exceed five (5) years, including renewal
periods…..unless conditional criteria is met
63G-6a-1204
Artificially Dividing a Purchase
Law~
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It is unlawful to intentionally or knowingly divide a procurement into
one or more smaller procurements with the intent to make a purchase.
This includes:
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Making 2 or more separate purchases;
Dividing an invoice/P.O. into 2 or more invoices/P.O.; OR
Making smaller purchases over a period of time
If violated~
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Depending on amount of procurement varies the penalty from a class
B misdemeanor to a 2nd degree felony and possible termination.
63G-6a-408, 2305, 2306; R33-3-3
Gratuities
Gratuity is…
• Anything of value, including:
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Money
Loan at an interest rate below market value or terms more
advantageous than offered generally on the market
Award
Employment
Admission to event
Meal
Lodging
Travel
Entertainment for which a charge is normally made
63G-6a2304.5
Offering a Gratuity
Who does this apply to?
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Interested Person - A person interested in any way in the sale
of a procurement item or insurance to the District.
Law~
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It is unlawful for a interested person to give, offer, or promise
to give a gratuity to a procurement participant or individual
who the person knows is a family member of a procurement
participant.
If violated~
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Depending on amount of gratuity varies the penalty from a
class B misdemeanor to a 2nd degree felony.
63G-6a2304.5
Procurement Participant
• Is a person involved in:
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Administering, conducting, or making decisions regarding a
standard procurement process;
Making a recommendation regarding award of a contract or
regarding a decision to obtain a procurement item for a
particular person;
Evaluating a quote, a bid, or a response; or
Awarding a contract or otherwise making a decision to obtain a
procurement item from a particular person.
63G-6a2304.5
Accepting/Requesting a Gratuity
Who does this apply to?
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A procurement participant.
Law~
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It is unlawful for a procurement participant to ask, receive, offer to
receive, accept, or ask for a promise to receive a gratuity from an
interested person.
If violated~
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Depending on amount of gratuity varies the penalty from a class B
misdemeanor to a 2nd degree felony and possible termination.
63G-6a-2304.5, 2306
Hospitality Gift
Hospitality Gift is…
• A promotional or hospitality item, including, a pen,
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pencil, stationery, toy, pin, trinket, snack, nonalcoholic
beverage, or appetizer.
This does not include money, a meal, a ticket,
admittance to an event, entertainment for which a
charge is normally made, travel, or lodging.
63G-6a2304.5
Acceptable Gifts
Law~
• The total value of all hospitality gifts given, offered, or promised
to, or received or accepted by, the procurement participant in
relation to a particular procurement is less than $10 in value.
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and
The total value of all hospitality gifts given, offered or promised
to, or received or accepted by, the procurement participant from
any one person, vendor, bidder, responder, or contractor in a
calendar year is less than $50.
If violated~
• Depending on amount of the gift varies the penalty from a class B
misdemeanor to a 2nd degree felony and possible termination.
63G-6a-2304.5, 2306
Kickbacks
Kickback is…
• A gratuity given in exchange for favorable
treatment in a pending procurement or the
administration of a contract.
63G-6a2304.5
Kickbacks
Law~
• It is unlawful for a person to give, offer, or promise to
give a kickback to a procurement participant or to
another person for the benefit of a procurement
participant.
• It is unlawful for a procurement participant to ask,
receive, offer to receive, accept, or ask for a promise to
receive a kickback for the procurement participant or for
another person.
If violated~
• Depending on amount of the kickback varies the penalty
from a class B misdemeanor to a 2nd degree felony and
possible termination.
63G-6a-2304.5, 2306
Unlawful Use of Position or Influence
Law~
• It is unlawful for a procurement participant to use the
procurement participant’s position or influence to
obtain a personal benefit for the procurement
participant, or for a family member of the procurement
participant, from an interested person.
If violated~
• Depending on amount of the benefit varies the penalty
from a class B misdemeanor to a 2nd degree felony and
possible termination.
63G-6a2304.5
Utah Public Officers’ and Employees
Ethics Act
• It is an offense for a public employee to:
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Use or attempt to use their official position to:
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Knowingly receive, accept, take, seek, or solicit, directly or
indirectly for himself or another a gift of substantial value or
economic benefit:
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Further their personal economic interest; or
Secure special privileges or exemption for them or others
Would improperly influence a reasonable person;
Reward the public employee for action taken; or
May be involved in any governmental action directly
affecting a donor or lender
Doesn’t apply to ( Non-Procurement Participant):
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Occasional gift, having a value not to exceed $50; or
Award publicly presented in recognition of public services
67-16
What Should Purchasing
Professionals Do?
 Training of staff
 Focus on Ethics Act (67-16); Procurement law (63G-6a); and
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rules (R33-3)
District policies and procedures
Understand small purchase limits and documentation
requirements
Understand bid requirement levels
 Flexibility is key - There are several procurement
options that are available to purchasing
professionals. These options assist in obtaining the
best value, products, goods or services needed.
District Purchasing Staff
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Joe Bryant, Purchasing Supervisor- 801-578-8264
Tonya Hodges, Buyer- 801-578-8261
Tony Field, Buyer- 801-578-8257