DEO Procurement Training
Training Agenda
Authority, Statute, Rules, Policy and Procedures
Method of Procurements
Purchase Orders, Change Orders and Cancellation
Requests
Settlement Agreements
Internal and External Approvals
Day to Day Purchasing
Questions and Answers
Authority
Authority
– Chapter 287, Part 1 Florida Statutes
– Chapter 60A-1, Florida Administrative Code
Other Related References
DEO Purchasing Policy 4.02
DEO Purchasing and Contracting Procedures Manual
DMS State Purchasing Memorandums
Department of Financial Services
• Reference Guide for State Expenditures
• Comptroller Memorandums
• Agency Addressed Memorandums
Federal Regulations
Standards of Conduct
Centralized Purchasing Office
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Legality and Ethics
Effective Service
Efficiency
Economy
Fairness
Open and Free Competition
Diversity
Specific Purchase
Per Florida Attorney General Opinion #78-101, an agency must
have expressed or implied statutory authority to make a specific
purchase
– Promotional items
– Client incentives
– Gift cards
http://www.myfloridalegal.com/ago.nsf/Opinions/458FC3959F274
99E852565930069670F
Nonconforming Request
The Purchasing Office retains the final authority
to:
– Return/deny any Purchase Requisition that does not
adhere to:
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Department Policy
Violates State and Federal Law
Not in compliance with Florida Administrative Code
Lacks Justification
Conflict of Interest or Noncompetitive Practices
Inappropriate Comments or Attachments
Purchasing
Exempt Purchases from Competitive Procurement Section 287.057(f), F.S.
1. Artistic Services
2. Academic program reviews <$50,000
3. Lectures by individuals
4. Auditing Services
5. Legal Services
6. Health Services involving examination, diagnosis, treatment, prevention, medical
consultation or administration
7. Services provided to persons with mental or physical disabilities (non-profit corporations)
8. Medicaid Services
9. Family Placement Services
10. Prevention services related to health services (operated by non-profit corporations)
11. Training and education services provided to injured employees
12. Contracts entered into pursuant to 337.11 (DOT)
13. Services or commodities provided by other governmental agencies
State Term Contracts
Negotiated and managed by DMS Division of State Purchasing.
More than 60 contracts currently, totaling more than $2 billion in state savings
annually.
Mandatory usage for state agencies and optional for OEUs.
Meets the competitive solicitation requirement of Section 287.057, F.S.
Per Rule 60A-1.043, all STC with multiple vendors providing the same product must
have two quotes unless the contract expressly has other RFQ requirements.
http://dms.myflorida.com/contracts
State Term Contracts
Per Rule 60A-1.043, all STC with multiple
vendors providing the same product must
have two quotes unless the contract
expressly has other RFQ requirements.
STC Exceptions
FAC Rule 60A 1.044 State Term Contracts
(2) State Agency Standard Configuration and Options:
If an agency determines that a standard configuration product will not meet the
agency’s needs and that it is therefore necessary for the agency to purchase specific
product options or additions to the standard configuration product, the agency shall, in
writing, specify why the standard configuration product(s) cannot meet the agency’s
needs due to:
-unavailability of the product within agency schedule or delivery requirements
-need for compatibility with existing equipment or systems; or
-failure to meet agency-required specifications, quality levels or technical
requirements
(3) The written determination shall also include the price impact, both as a dollar
amount and as a percentage of the price of the state contract or standard configuration
item(s), that result because of the exception or deviation
Purchasing
Commodity
– Supplies, materials, goods, merchandise, printing, food, and
equipment, tangible property, leased property
– Freight or Inside Delivery charges should be coded with the
same Commodity Code as the product(s) being purchased,
do not use 991-841
Contractual Services
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Commodity Code 9xxxxx series
Combination Parts and Labor
Labor only (time and effort)
Provider Services
Purchasing
Section 287.058 (4), F.S. Contractual Services – every
procurement of contractual services in excess of the Category Two ($35,000)
threshold shall be evidenced by a written agreement or purchase order.
$0-$35,000 Purchase Order
>$35,000 Contract Agreement
Agencies are allowed to use the purchasing card for contractual services
direct billings that do not exceed $75,000 in a State fiscal year.
Purchasing
Section 287.057(18), F.S. Contractual Services
>$65,000,
– Each agency shall establish a review and approval process
for all contractual services contracts costing more than the
threshold amount provided for in s. 287.017 for CATEGORY
THREE which shall include, but not be limited to, program,
financial, and legal review and approval. Such reviews and
approvals shall be obtained before the contract is executed.
Purchasing
Commodities and Contractual Services
State agencies may purchase only items necessary to carry out
statutory duties and should select items on an economically
prudent and cost effective basis not to satisfy the personal
convenience or personal preference of individuals.
Emergency Procurements
Immediate danger to the public health, safety, or
welfare or other substantial lost to the State
Executive Order
>$35,000 requires Certification by the Director
It is not, I forgot to do my job and my boss already
bought it or I need a purchase order to pay the invoice.
Procurement Cycle
1) Determine the Need
2) Specification or Product Description
3) Determine the Method of Procurement
4) Quotes or Formal Soliciation
5) Issuance of a Purchase Order
6) Receipt of Goods or Services
7) Invoice and Payment
Purchasing System Controls
Purchase Order
– Standard instrument for purchasing the majority of
goods/services involving the submittal of a Purchase
Requisition in MFMP
Contract – two party written agreement
PCard is a payment mechanism NOT a procurement
method
Settlement Agreement
Goods and/or Services Without Proper Authority
Claims and Demands Against the State
Indicates the Agency is not abiding by the rules and
Laws of Florida
Admission We Made a Mistake
Reported to the Governor’s Office Monthly
Contact Finance and Accounting
Procurement Thresholds
Section 287.017, F.S. - Purchasing Threshold
Categories
Category One - $ 20,000 (requires three written quotes)
Category Two - $ 35,000 (bid threshold)
Category Three - $ 65,000 (legal and financial review)
Category Four - $195,000 (DMS approval)
Category Five - $325,000
Internal and External Approvals
Internal
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Management Review
IRA (IT)
OCO (Budget)
Travel C676C
Notary Justification (Supervisor)
General Counsel Review
Facility Services Work Order
Telecommunications
New Perquisite (Personnel)
Membership Due (COO)
Employee Moving Expenses
(EMT/SMS/Personnel)
External
– Vehicles (DMS)
– Advance Payment (DFS)
– GSA DMS Terms and Conditions
(Vendor)
– CSA (DMS)
– Single Source >$195,000 (DMS)
– Notary Commission (DMS)
Bid or Not to Bid ?
FAC Rule 60A 1.002
(4) In accordance with Chapter 287, F.S., all purchases for which the total contract
value is in excess of the threshold amount for Category Two ($35,000) for a
particular commodity
group of commodities or
contractual service
shall be made by first securing formal competitive solicitations, unless an
exemption applies.
(5) Acquisitions shall be reviewed and considered on an agency-wide basis. The
Purchasing Office shall not divide its purchases or its purchasing operations to
circumvent the process.
Procurement Methods
Section 287.057, F.S. - Methods of Procurement
(1)(a)Competitive Solicitations >$35,000
• Invitation to Bid
• Request for Proposal
• Invitation to Negotiation
(5)Exceptional Purchases
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Emergency Purchases - FAC 60A-1.046
Agency Term Contract – FAC 60A-1.001(b)
Alternative Contract Source – FAC 60A-1.047
Single Source Purchases - FAC 60A-1.045
State Purchasing Agreements (SPA) -FAC 60A-1.025
<$35,000
FAC Rule 60A 1.002 (2) and (3)Methods of
Procurement (continued)
(2) Purchases <$2,500
(3) Informal Quotes
$2,500 - $20,000
$20,001 - $35,000
one quote (CMBE)
two quotes
three written quotes
Single (Sole) Source
For single source purchases exceeding Category Two, follow a
separate process:
– Advertised on Vendor Bid System (VBS)
• PUR 7776
• Seven business days
– If the purchase exceeds Category Four ($195,000), DMS approval is
required
• PUR 7777
– Post Intent to Award on VBS
• PUR 7778
• 72 business hours (excluding weekends and holidays)
Purchasing
Order of Priority in Selecting a Vendor
Respect - 413.036 F.S.
Pride - 946.515 F.S.
State Term Contract - DMS
Agency Term Contract - DEO
Alternate Contract Source – WSCA/GSA
SPA Agreements
Competitive Solicitation
Informal Quotes
Day to Day Purchasing
Respect –
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Calendars
Writing Instruments, e.g., Pens, Pencils, Markers, Highlighters
First Aid Kits and Refills
Clocks
Medical Gloves
White Marker Boards and accessories
Floor Chair Mats
Depends
Drug Test Kits
Staplers, staples and two hole punch
Plaques, document holders
Flags (United State of America and State of Florida, only)
Janitorial and Lawn Care Services
Day to Day Purchasing
PRIDE
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Business Cards
Furniture
Binders
Uniforms
Janitorial products other than name brand
Envelopes quantity less than 5,000
Red Tape
Delays in PR Workflow Process
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Incorrect Method of Procurement Code Selected
Incorrect Commodity Code
STC Number, field is not populated
Required number of quotes, not obtained or attached
IRA approval, not attached
OCO approval, not attached
Conference/Training Registration, Agenda and C676C, not attached
No Written Justification
Incorrect Attachments or Format Type
Forgetting to Delegation MFMP Authority in Ariba when on Annual/Sick
Leave
Common Mistakes
Leaving payment terms out of the procurement
A statement of work that is unclear or not defined
Not following purchasing laws and rules
Preventing the perception of partiality to the vendor community
Not focusing on getting the best price for the right product/service at the right
time
Signing agreements without consulting your purchasing office first
PCard purchases exceeding Category Two
After-the-fact purchases
Day to Day Purchasing
Conference Registrations
– Is exempt from MFMP if the Vendor accepts PCard, attach
the invoice for payment to the C676C and Voucher for
Reimbursement of Travel Expenses forms.
– If the Vendor does not accept PCard and the Vendor is
registered in MFMP, a purchase requisition is required along
with the C676C attachment.
– If the Vendor is not registered in MFMP, contact the
Purchasing Office
Training Registration
– Requires a MFMP purchase order
Day to Day Purchasing
Employee Moving Expenses
– Requires three (3) written quotes
– Must be paid by Warrant
– Request for Authority to Pay Moving Expenses Form
• Signature Authority – Division Director
• Written Justification required
• Description Field include the Location “From – To”
Day to Day Purchasing
OCO Purchases
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Requires OCO Budget Committee Approval
Unit price of a $1,000 or more
Object Code 5xxxxx series
Replacement requires like funds
Contact the Budget Office
Day to Day Purchasing
IT Equipment
– Commodity codes starting with 250xxx use Object Codes
• <$1,000 use 3810xx or 3818xx series
• >/=$1,000 use 5xxxxx series
– $2,500 or greater requires three (3) written quotes
– Requires Information Resource Request (IRR) Approval
– May require OCO approval
IT Software
– Microsoft STC or GSA Schedule 70
– $2,500 or greater requires three (3) written quotes up to $150,000
– $25,000 or greater requires the PUR 7102, Alternate Contract Source
approved by DMS
– Greater than $150,000 requires formal solicitation
Day to Day Purchasing
Business Cards
– DEO Order Form
• Employees (one color)
• Executive Management (color)
• Include the cost of freight, $4.50 per delivery location
Notary Public
– Notary Commission Justification Memorandum
– Commodity Code 477540
– Application attachment is not required. However, if you scan
the application all confidential information must be redact.
Day to Day Purchasing
Furniture
– PRIDE
– State Term Contract
– Office Depot
• Hon Authorized Dealer on State Term Contract
• Orlando Office only
Day to Day Purchasing
Copiers
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Available Lease Periods (3, 4 or 5 years)
No lease renewals provides negotiation
Upon expiration equipment will be picked up within 10 days
Less than $2,500 can go off state term contract
Description: Lease Term, Serial Number, Brand Name, Model
Number, Class and Type
Day to Day Purchasing
Membership Dues: Section 216.345, F.S.
– Forms Library
• Membership Request Form (requires COO signature
approval)
• Certification of Availability of Records for Public
Inspection
Day to Day Purchasing
Advanced Payment: Section 215.422(14), F.S.
– Maintenance Agreements, Software License and
Subscriptions
Must results in a cost savings; essential to the operation of the agency;
available only if paid in advance
>$35,000 Requires DFS, Bureau of Auditing prior approval
– Other Goods and Services
• >$1,800 Requires DFS, Bureau of Auditing prior approval
Day to Day Purchasing
Employee Recognition & Awards: Section 110.1245,
F.S.
Volunteer Recognition & Awards: Section 110.504, F.S.
Day to Day Purchasing
Prohibited Expenditures – Per Rule 3A-40.103 F.A.C.
– Congratulatory or condolences telegrams
– Greeting Cards - Chapter 286.27 Use of state funds for greeting cards
prohibited. No state funds shall be expended for the purchase, preparation,
printing, or mailing of any card the sole purpose of which is to convey holiday
greetings
– Plants, flowers, pictures, plaques, statues, globes, and other decorative items
– Entertainment for visiting dignitaries
– Refreshments such as coffee and doughnuts
– Decorative Items
– More expensive office supplies, furniture, lamps, etc…
– Items not purchased in accordance with statute and rules
– Items purchased by unauthorized individuals
Day to Day Purchasing
Blanket Purchase Orders
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Need Unknown
Cost Unknown
No Single Purchase Can Exceed $2,499 Without a Second Quote
DO Start and End Date Coincides with the State Fiscal Year
Functions Similar to an Open Account
Authorized Buyers
Justification
Examples: Janitorial Supplies, Hardware, Paper Products, Tires, Keys &
Key Blanks, Sun/ePass, Electrical/Plumbing/HVAC Services
– Non STC Services Attach Vendor Rate Sheet or Rate Per Hour
– Non STC at Retail Pricing
Blanket PO - Commodities
Example:
Blanket Purchase Order for tires available on state term
contract. Rate: per state contract #863-000-06-1. All
invoices to include vehicle Tag number and VIN
number. Term: 7/1/07 - 6/30/08. Authorized Buyer: Jane
Doe, Bob Smith, Joe Brown. (Previous DO292416)
Blanket PO - Services
Example:
Blanket Purchase Order for transcription services on an
“as needed basis” for the UC Appeals Hearings. TERM:
7/1/12-6/30/09 RATE: Per attached rate sheets. NO
SINGLE PURCHASE TO EXCEED $2,499.99
WITHOUT OBTAINING A SECOND QUOTE(S).
AUTHORIZED BUYERS: Jane Doe, Bob Smith and Joe
Brown. Payable upon receipt of a complete invoice.
Day to Day Purchasing
Term Purchase Order
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Specified Items or Services
Specified Rate
Specified Term
Justification
Examples: Janitorial Services, Pest Control, Copiers, Postage Machine
Rental, Cellular & Blackberry Service, Lawn Service
Term PO - Services
Example:
Term purchase order maintenance agreement for
Department owned copier. Minolta Delta Color CF 1501
SN-305165. Rate: $136.00 monthly to include 3,000
copies per month. To be paid quarterly in arrears upon
receipt of itemized invoice. Term: 7/1/12- 6/30/13.
Authorized Buyers: Jane Doe, Bob Smith. Toner
Cartridges, drums and staples included in maintenance
agreement. (Previous DO 289781)
Term PO – Pest Control
Example:
Term purchase order for monthly pest control services
for Caldwell Building. TERM: 7/1/12 - 6/30/13 RATE:
per State Term Contract rate of $1.31 per 1000
sq.ft./month. Facility Sq. Ft. 16,000 sq. ft./1,000 sq. ft. x
$1.31 = $20.96 per month. Authorized Buyers: Jane
Doe, Bob Smith. Payable in arrears upon receipt of a
complete invoice. (Previous DO 290364)
Confidentiality
Before uploading attachments to MyFloridaMarketPlace, you
must redact all confidential information, including but not
limited to all social security numbers, all health information
protected by HIPAA, and addresses for law enforcement
officers, judges, and other protected classes. If confidential
information is not properly redacted, you may be in violation
of state and/or federal laws. For information about what
constitutes confidential information, under applicable state
and federal law, consult your Agency General Counsel.
By checking this box, I confirm that I have not disclosed any
confidential/protected information in the attachments or comments
for this transaction in violation of Chapter 119, Florida Statutes;
HIPAA; or any other state and/or federal laws. I confirm that I will not
disclose any confidential/protected information to any unauthorized
individual/entity. I also understand that violation of this policy may
result in disciplinary action including potential termination.
Purchase Order
Change Order Request
Written Justification Required
Increase or Decrease Money
Increase or Decrease Quantities
Change in Price/Rate/Freight Charge
Accounting Information
Change “On Behalf Of”
Term End Date
Purchase Order
Cancellation Request
Cancellation Request
– Open Order is a Financial Liability to the Agency
– No funds have been expended
– Company eform
• Cancel Requisition
• Title Field Should Duplicate the Purchase Order Title
• Written Justification, required
– “CANCEL” button is PROHIBITED
Receipt and Inspection of Goods
Inspect order immediately
– check for damage; compare description, quantity and price to the
Purchase Order.
DFS allows only five day from receipt of commodities or
services for inspection and acceptance.
Payments for merchandise received shall be made only
on the basis of the agreement as to quantity, price,
condition and description.
Invoices that do not match the Purchase Order should
be disputed immediately and should not be paid.
Receipt and Inspection of Goods
Receipt Items in MyFloridaMarketPlace
End of the Year Activities
Current Fiscal Year Close Out
May 15th – Cut Off
Issuance
Order/Receipt
Invoice and Payment
Preparing for Next Fiscal Year
May 15st – Cut Off
Compliance Review
Competitive Solicitation
Issuance
Purchasing Office
Questions and Answers