Voight Shealy
State of South Carolina
Materials Management Officer
Chief Procurement Officer for Supplies and
Services
1979, American Bar Association produced its
Model Procurement Code for State and Local
Governments
 1981, State of South Carolina
adopted its Consolidated
Procurement Code
 24 other states have adopted
some form of the ABA’s
Model Code
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Source: NASPO’s 2012 Survey of State
Government Procurement Practices
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All states have adopted procurement codes
Ours requires political subdivisions to adopt
model ordinances
If you expend federal funds, you must follow
your procurement policy or the Federal
Acquisition Regulations
It’s the buyers v. the sellers ladies and
gentlemen
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What do you think?
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To protect the citizens of our states from you
and me.
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It was caused by someone else's transgressions
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Know Your Authority
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Every state has a central purchasing office
In SC, it’s the Budget and Control Board
Procurement Services Division
3 Chief Procurement Officers
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Information Technology Management Officer – Mike
Spicer
State Engineer – John White
Materials Management Officer – Voight Shealy
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Vary from state to state
Some are more centralized
Some are more decentralized
Most are center lead
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To process procurements of the highest complexity
as well as statewide term contracts and multi-state
cooperative purchases to save money on common
items and services used by most agencies.
Large, complex agency buys.
State term contracts
1) to aggregate various agencies’ needs into very large
buys for discounted pricing
 2) So 100 agencies don’t have to
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Determined by Each Agency
Know your personal authority
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To manage procurements for:
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Routine needs
Agency expertise
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Varies state to state from $2,000 to unlimited
In SC, Every State Agency’s authority - $50,000
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Higher Limits May Be Requested
All you have to do is hire a competent procurement
staff and follow the Code
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Learn how to write unambiguous specifications
that accurately describe the products you need
or the services you require.
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Describe what you need
What should it do? How fast?
Heavy or light duty?
How big? How tall? How long?
Do you care? Don’t spec it if you don’t need it
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Spec Quality Necessary
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Low Bid Does Not Mean Cheap!
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For products, most common specifications are
"Brand Name or Equal" specs
Name an acceptable make and model or two to
describe the quality needed
 List Salient Features Desired
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 What distinguishes this model from all others?
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Allow bidders to offer the models listed or other
“equal” products
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Describe what services you need
What must the contractor do? Be Specific!
Spec qualifications required
 i.e., Do you want a licensed contractor?
How fast should the response time be?
How many staff should be devoted to your
job?
Past experience requirements?
Always require references – Check Them
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It is vital that your Scope of Work is
clear in defining what you expect your
contractor to do.
It is vital that you are clear in stating
what must be covered in each bidder’s
price
Be precise
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Should Be Open and Competitive.
But:
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Every specification imposes a requirement.
Therefore, it may limit competition. If necessary, that
is fine.
But, it cannot be unduly restrictive.
It's OK to Seek Info From Vendors Before You
Solicit
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It’s all about building successful contracts
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Know your Code’s authorized source selection
methods
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Small Purchases
Competitive Sealed Bidding
Competitive Sealed Proposals
Emergency
Sole Source
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ALL PROCUREMENTS MUST BE MADE BY
ONE OF THE METHODS LISTED ABOVE.
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In SC, <$50,000
Competition Required
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<$2,500.00 - None
$2,500.01 - $10,000.00 - Call for 3 Written
Quotations
$10,000.01 - $49,999.99 - Advertisement in South
Carolina Business Opportunities
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DO
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Be Consistent With Specifications
Call the Required Number of Vendors
Document Calls - Write them down
DON’T
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Tell Competitors What Other Vendors Bid
Split Orders
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Formal process for $50,000 or more
Written solicitations request written bids
Award - Lowest Responsive & Responsible
Bidder
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DO
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Allow Bidders Adequate Time to Develop Bids
Make Sure Low Bidder is Responsive and
Responsible
Don’t
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Base your specifications on a single vendor’s product
Make your specifications overly restrictive
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Evaluation - Team Scores of Proposals Judged
Against Weighted Factors
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i.e., past experience with similar projects, innovation
in solving our problem, team qualifications, financial
stability
Award - Highest Ranked Offeror, not
necessarily lowest cost
State your problem - Buy solutions!
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Allowed only in emergency situations - Threats
to Public Health, Welfare,
Critical Economy or Safety
Written Determinations Often Required
Authorized Approval Required
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DO
Plan Your Requirements
 Explain the Emergency - What
happened?
 Compete as Practical
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DON’T
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Shoot Yourself in the Foot!
 “This annual event” – REALLY?!
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Unique Item or Service and
Available From Only One Source
It’s not the source we like the most
Written Determination Often
Required
Authorized Approval Required
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DO
 Search for Competitors
 Document Efforts to Find Competition How do you know it’s a sole source?
DON’T
 Play a Bad Hand - if in doubt, compete it
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Protect Yourself
People are watching
As a public manager, it is your duty to ensure that you
and your employees comply.
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Every state (except Massachusetts) has a
protest process
In SC, Protests - $50,000 or more
Solicitations - Any Prospective Bidder or Offeror
 Awards - Any Actual Bidder or Offeror
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Contract Controversies - State or Vendor May
File
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State Auditors
Legislative Auditors
Other Auditors
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In SC, Audit and Certification - Performs compliance
audits of procurement activity
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Taxpayers