BASIC PROCUREMENT
IN NEW YORK STATE
Governor David A. Paterson
Doing Business with New York State
• Overview of the State Purchasing Process
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First Step - Preferred Sources
Second Step - Centralized contracts
Third Step – Agency or multi-agency established contracts
Fourth Step - Agency conducts own procurement
 Construction Contracts
• Recommendations for Successful Bidding
• Marketing information
• Helpful hints
• Contract Award Process
• Procurement Resources
• Technical Assistance
• Internet Resources
Doing Business with New York State
Agency Purchasing Requirements
• First Step – Agency uses Preferred Sources*
• Second Step – Agency uses Centralized (State) Contracts*
• Third Step – Agency determines if an established agency or multiagency contract can be used
• Fourth Step – Agency uses centralized service or technology
contracts or conducts its own procurement
* Must meet Agency’s form, function and utility
Review the Procurement Council Guidelines
http://www.ogs.state.ny.us/procurecounc/pdfdoc/guidelines.pdf
Overview
Doing Business with New York State
First Step
Agency uses Preferred Sources
The Preferred Sources were statutorily
created to advance certain social and economic goals.
Learn more about the Preferred Source Program
requirements
http://www.ogs.state.ny.us/procurecounc/pdfdoc/guidelines.pdf
First Step - Preferred Sources
Doing Business with New York State
Preferred Sources
Preferred Source status is granted to
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Dept. of Corrections, Corcraft: www.CORCRAFT.org
Industries for the Blind of NYS: www.IBNYS.org
NYS Industries for the Disabled: www.NYSID.org
Office of Mental Health: www.omh.state.ny.us/omhweb/buyomh/
Individual companies cannot become a Preferred Source. Your
company may be able to become a supplier to the Preferred
Sources. Contact the Preferred Sources directly for information.
First Step - Preferred Sources
Doing Business with New York State
Second Step
Agency uses
Office of General Services (OGS)
Centralized Contracts*
*statewide contracts that are generally
competitively bid or negotiated
Second Step - Centralized Contracts
Doing Business with New York State
OGS awards & administers contracts used by
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State agencies, authorities & public benefit corporations
Counties, cities, towns, villages
Public and private K-12 schools
Volunteer ambulance and fire companies
Libraries
Other authorized users
http://www.ogs.state.ny.us/purchase/snt/othersuse.asp
and many others
Second Step - Centralized Contracts
Doing Business with New York State
Types of OGS Centralized Contracts
● Commodities – mandatory usage
http://www.ogs.state.ny.us/purchase/spg/lists/ commodty.asp
● Services – recommended usage
http://www.ogs.state.ny.us/purchase/snt/lists/services.asp
● Technology – recommended usage
http://www.ogs.state.ny.us/purchase/snt/lists/infotech.asp
Second Step - Centralized Contracts
Doing Business with New York State
Examples of OGS Centralized Contracts
Commodities……….
A/V Equipment
Furniture
Office Supplies
Athletic Equipment
Microfilm Equipment
Medical Equipment
Fuels
Copy Paper
Vehicles
Services………..
Rubbish Removal
Heavy Equipment Rental
Security Guard Services
Moving Services
Temporary Personnel
Bank Card Services
Technology……….
Telecommunications Computer Hardware
Printers
Computer Software
Second Step - Centralized Contracts
IT Services
Networking
Doing Business with New York State
OGS Centralized Contracts
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More than 2,500 exist
May contain one item or thousands of items
Total estimated annual value: $5 billion
Search Procurement Services Group
contracts
http://www.ogs.state.ny.us/Purchase/Search/default.asp
Second Step - Centralized Contracts
Doing Business with New York State
OGS Contractor Demographics
59% ….. New York State Businesses
30% ….. New York State Small Businesses
5% ….. Minority Owned Businesses
7% ….. Women Owned Businesses
Second Step - Centralized Contracts
Doing Business with New York State
Register for OGS bid opportunities
Online Vendor Registration for Bidder
Notification Service (BNS)
● Register your business online at OGS website
● Free & simple process
● Strongly recommend creating a general business
e-mail account for bid notifications
(for example: bids@yourcompany.com)
http://www.ogs.state.ny.us/ovr/Default.asp
Second Step - Centralized Contracts
Doing Business with New York State
Important OGS BNS facts
● Register to receive bids and bid updates
● Choose classification (business) codes to match
business
● Add new classification codes at any time
● Maintain up-to-date profile information
● Request e-mail address change or classification
removal by contacting
customer.services@ogs.state.ny.us
Second Step - Centralized Contracts
Doing Business with New York State
New York State - Office of General Services Procurement Services Group Bid Notification Service
-----------------------------------------------------------------------
To:
Attention:
YOUR NAME HERE
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Documents pertaining to a new or revised BID scheduled to open on 4/6/2010 have been posted to the website shown
below.
Bid Number: 21973
Bid Opening Date: 4/6/2010
Group Number: 38010 - Latex Base Paint, Ready-Mixed Interior, Flat Paint Semi Gloss, Latex Enamel and Low Lustre, Latex
Enamel (Statewide)
Bid Synopsis/Other Information: None
Class Code(s) for this Bid: 31 - Manufacturing Components and Supplies
Sample e-mail
bid notification
You may view, download or print the Bid Document(s) at: http://www.ogs.state.ny.us/purchase/biddocument/21973I.PDF
Important: Click Here for Directions for Submitting a Bid:
http://www.ogs.state.ny.us/purchase/biddocument/Bidsubmittaldirections.pdf
----------------------------------------------------------------------You may view scheduled Bid Openings by visiting our Bid Calendar at:
http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp
You may view or update your company's profile and class selections at: http://www.ogs.state.ny.us/ovr
Download free Adobe Acrobat Reader: http://www.ogs.state.ny.us/adobereader/AdobeDownload.asp
This email is provided as a service of New York State Office of General Services. Questions about this service may be
directed to: mailto:customer.services@ogs.state.ny.us
Second Step - Centralized Contracts
Doing Business with New York State
OGS Contract Terms
● Term contracts may be awarded for up to five or more
years
● Periodic and continuous recruitment bid opportunities
exist to add new vendors to certain contracts
http://www.ogs.state.ny.us/purchase/ContinuousBid.asp
● Contracts are for estimated quantities
● Sales result when an agency purchases from the
contract
● Sales are not guaranteed; marketing is necessary to
generate sales
Second Step - Centralized Contracts
Doing Business with New York State
Businesses should
● Search for and identify contracts related to your
business; prepare for next bid opportunity for
those contracts
● View current OGS bid opportunities on the bid
calendar
http://www.ogs.state.ny.us/purchase/Bidcalendarlv.asp
Second Step - Centralized Contracts
Doing Business with New York State
Bid Opportunities
● Identify contract(s) that include goods and/or services
offered by your business.
● Learn all you can about the contract area(s) and specific bid
requirements.
Contracts
● Bidders awarded contracts through the bid process must be
prepared to market your goods or services to contract
users. Have marketing materials ready!
● A successful bid and resultant contractor number is not a
guarantee of a sale. It is a competitive advantage and an
opportunity for potential sales.
Second Step - Centralized Contracts
Doing Business with New York State
Resellers ● Dealers ● Distributors ● Agents
Contracts may allow vendor participation
BENEFITS
● Maximize manufacturer’s ability to market and
support a statewide contract
● Provide opportunities for sale from contractor’s
designated local resellers, dealers, distributors or
agents
● Promote New York small, minority, women-owned
business participation
Centralized Contracts
Doing Business with New York State
How to participate as a reseller, dealer, distributor or
agent on OGS centralized contracts
● Check contract to determine availability of participation
● Examples
■ Computer hardware & software
■ Printers
■ Furniture
■ Audio/Visual
■ Copiers
■ Carpet
● Contact contractor directly for participation opportunities
● All sales must agree with contract terms and conditions!
Centralized Contracts
Doing Business with New York State
Third Step
Agency determines if an established
agency or multi-agency contract can
be used
Doing Business with New York State
Fourth Step
Agency uses centralized service or
technology contracts, or conducts
its own procurement
Doing Business with New York State
New York State Contract Reporter (NYSCR)
www.nyscr.org
The NYSCR is New York’s official publication of procurement
activity for New York State agencies, public authorities and
public benefit corporations (other than notifications from the
Office of General Services).
State agencies must advertise procurements of $15,000 or
more (including discretionary purchases) when they solicit bids
from the business community for goods, services and
construction projects in the NYSCR.
Fourth Step - Agency Procurement
Doing Business with New York State
NYSCR is FREE!
● Registration is required for general access
● Enhanced service is $79 per year for “E”Alert bid
notification service to subscribers
● “E”Alert subscriber chooses type of message &
category(ies) of interest
● “E”alert display message contains
● Solicitation title (link to ad)
● Location of project
● Name of Agency soliciting goods/services
● Bid due date
Fourth Step - Agency Procurement
Doing Business with New York State
Daily Publication & Posting Bid Results
New ads appear every business day – Monday
through Friday
● Ads inserted one day are published the next
morning – Friday insertions appear on Monday
morning, including holidays
● All ads are searchable, archived & retrievable
● Agencies post bid results
 Enables marketing of a business to prime
contractors
Fourth Step - Agency Procurement
Doing Business with New York State
Agency Discretionary Purchasing Authority
Discretionary purchases are procurements made below
statutorily established dollar amounts and at the discretion of
the agency, without the need for a formal competitive
procurement process. Use of discretionary purchasing
streamlines the procurement process.
Discretionary Purchasing Guidelines
http://www.ogs.state.ny.us/procurecounc/pdfdoc/Discret
ionaryPurchasingGuidelines.pdf
Fourth Step - Agency Procurement
Doing Business with New York State
Discretionary Purchasing Authority Thresholds
● $50,000 for most state agencies
Discretionary levels increase to
● $100,000 for purchases from a New York Small
Business or New York Certified Minority or
Woman-Owned Business Enterprise (M/WBE)
● $100,000 for commodities or technology that are
recycled or remanufactured
http://www.ogs.state.ny.us/purchase/spg/pdfdocs/PnpDiscretionaryThresholds.pdf
Fourth Step - Agency Procurement
Doing Business with New York State
New York State
Small Business & M/WBE
A New York State Small Business is defined as
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Resident to New York State
Independently owned and operated
100 or fewer employees
Not dominant in its field
There is no certification process for “New York State Small Business”
A Minority/Woman-Owned Business Enterprise (M/WBE) must
be certified by NYS Empire State Development. For information on
the certification process, call Empire State Development at
800-782-8369 or visit their website: www.nylovesmwbe.ny.gov/
Fourth Step - Agency Procurement
Doing Business with New York State
Fourth Step
Agency procurement
Construction Opportunities
Doing Business with New York State
New York General Construction Law
● Construction Projects are governed by General
Construction Law
http://public.leginfo.state.ny.us/menugetf.cgi?
COMMONQUERY=LAWS
● Many opportunities exist for subcontractors and
suppliers to market to prime contractors in construction
projects
● Prime contractors are identified on the Empire State
Builder Newsletter and the New York State Contract
Reporter websites
Fourth Step - Agency Procurement
Doing Business with New York State
BOND REQUIREMENTS
Bonding - process in which a bidder or contractor acquires
a bond from a surety firm to assure fulfillment of the bidder
or contractor’s obligations to a government agency. If the
contractor’s obligations are not met, the bond assures
payment to cover loss sustained by the government.
Types of bid bonds specified
● Performance Bonds
● Surety bonds
● Bid Bonds
Fourth Step - Agency Procurement
Doing Business with New York State
Construction Related Projects
Empire State Builder Newsletter
OGS’ public notification service to construction contractors,
suppliers, and design, testing and construction management
consultants interested in providing building construction services
to New York State.
Empire State Builder Newsletter is found on OGS home page
under
“Most Requested Links” at www.ogs.state.ny.us
Other state agencies and authorities advertise construction bid
opportunities in the New York State Contract Reporter
Fourth Step - Agency Procurement
Doing Business with New York State
Empire State Builder Newsletter
Provides current information about
● Construction contracting opportunities
(4-5 weeks before bid opening)
● How to acquire bid documents
● Lists of vendors that have ordered bid documents
● Bidder questions and responses
● Addenda available for download
● Recent bid and award results
● Emergency contracting program
● Opportunities for consultant and construction
management services
Fourth Step - Agency Procurement
Doing Business with New York State
NYSCR Construction Bid Opportunities
State agencies, authorities and public benefit corporations
(other than OGS Design & Construction projects) must be
advertised in the NYSCR at: www.nyscr.org
Find construction projects on NYSCR for
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New York State Dormitory Authority
State University Construction Fund
Metropolitan Transportation Authority
New York State Department of Transportation
New York State Thruway Authority
Other state agencies and authorities
Fourth Step - Agency Procurement
Doing Business with New York State
Recommendations for
Successful Bidding
 Marketing information
 Helpful hints
 Contract Award Process
Doing Business with New York State
Identify your buyer — not all government
entities are alike
● State Agencies
Operate under State Finance Law
● Municipalities (counties, cities, towns, etc.)
Operate under General Municipal Law
● Other Entities
Authorities - operate under Public Authorities Law
School Districts - operate under General Municipal
Law & State Education Law
Marketing Information
Doing Business with New York State
Market to state agencies
● Understand the legal purchasing requirements
● Review the New York State Procurement Guidelines
on the OGS website at
www.ogs.state.ny.us/procurecounc/pdfdoc/guidelines.pdf
● Use the state agency telephone directory available
from the Office for Technology
http://www6.oft.state.ny.us/telecom/phones/
Marketing Information
Doing Business with New York State
Marketing Resources
The Office of the State Comptroller publishes the
“Directory of Frequently Purchased Commodities and
Services by New York State Agencies”
● Lists contact information for procurement personnel in
New York State agencies
● Lists agencies’ most frequently purchased commodities
and services
● Updated annually
● Available online at
http://osc.state.ny.us/reports/fiscal/directorycommodities.pdf
Marketing Information
Doing Business with New York State
OGS website
Seller Information and Bid
Opportunities
http://www.ogs.state.ny.us/purchase/seller.asp
Contains “A Guide For Small Businesses”
and other information about selling
to New York State
Marketing Information
Doing Business with New York State
State Finance Law Bidder Requirements
● Bidder must be responsive to bid requirements
● Bidder must be a responsible bidder - meeting
FLIP requirements
● Financial
● Legal
● Integrity
● Past Performance
● Comptroller’s Vendor Responsibility information
http://www.osc.state.ny.us/vendrep/index.htm
Helpful Hints
Doing Business with New York State
Know the vocabulary of procurement
● IFB – Invitation For Bid – used in procurement of
commodities, awarded to the responsive and responsible bidder
on the basis of lowest price.
● RFP – Request for Proposals – used for procurements when
factors in addition to cost are weighed and awarded to the
responsive and responsible proposer offering the best value.
For a glossary of commonly used procurement terms,
refer to the procurement guidelines
http://www.ogs.state.ny.us/procurecounc/pdfdoc/guidelines.pdf
Helpful Hints
Doing Business with New York State
Before submitting a bid
● Register with soliciting agency to receive bids and
amendments
● Maintain up-to-date business profile to receive proper
notifications, where applicable
● Read entire proposal and follow instructions
● Submit questions for clarification during the inquiry period
● Verify bid submittal for accuracy and completeness
Helpful Hints
Doing Business with New York State
Critical points for bid submission
● Submit a timely bid (one minute late may be
a late bid resulting in bid rejection)
● Submit a signed and completed bid package
● Price bid competitively
● Submit required mandatory forms
● Be responsive to all bid requirements
● Demonstrate vendor responsibility
● Provide proper licenses, insurance, and
current references where required
Helpful Hints
Doing Business with New York State
Contract Award Process
● Contracts generally require the Office of the
State Comptroller’s approval
● Agency award process may take several months
for award recommendation prior to final approval
by the Comptroller
● The Comptroller’s approval may take up to 90
days
Contract Award
Doing Business with New York State
Contract Award Information
● Office of the State Comptroller Open Book - lists all agency
contracts http://www.openbooknewyork.com/
● Empire State Builder Newsletter – lists all OGS Design &
Construction awards
● New York State Contract Reporter – lists all agency bid results
● OGS - lists awarded centralized contracts and bid results
● OGS Continuous/Periodic Recruitment solicitations available
http://www.ogs.state.ny.us/purchase/ContinuousBid.asp
Once awarded, contracts are monitored to ensure
contractor compliance with terms and conditions
Contract Award
Doing Business with New York State
Bid Improvement Opportunities
If unsuccessful in receiving an award, request an agency
debriefing to learn how to improve future bids
A debriefing will detail shortcomings of your bid submission
 Take notes
 Ask questions
 Request assistance from Procurement Technical
Assistance Centers http://www.dla.mil/db/procurem.htm
 Request assistance from Small Business Development
Centers in your area http://www.nyssbdc.org
Contract Award
Doing Business with New York State
Procurement Resources
 Technical Assistance
 Internet Resources
Doing Business with New York State
Empire State Development (ESD)
● ESD provides procurement guidance, information, and
referral to resources to help businesses understand the
procurement process and access government
procurement opportunities. ESD understands that
SALES ARE JOBS!
● ESD is responsible for publishing the New York State
Contract Reporter - www.nyscr.org
● ESD has statutory responsibilities under the Omnibus
Procurement Act to promote New York business
participation in state contracting opportunities as prime
contractors, subcontractors and suppliers
www.esd.ny.gov
Technical Assistance
Doing Business with New York State
Free Technical Assistance
● Procurement Technical Assistance Centers (PTAC) –
funded by the United States Department of Defense seven PTAC locations in New York
http://www.dla.mil/db/procurem.htm
● Small Business Development Centers (SBDC) –
administered by State University of New York and
funded by the Small Business Administration, New York
State, and host campuses for SBDC locations
http://www.nyssbdc.org
● Look for procurement “how to” workshops,
conferences, and other events on the NYSCR
Technical Assistance
Doing Business with New York State
Internet Resources
Office of General Services
http://www.ogs.state.ny.us/
Empire State Development
http://www.esd.ny.gov/
Directory of Small Business Programs
http://www.esd.ny.gov/SmallBusiness/Data/Directoryof
SmallBizPrograms.pdf
NYS Small Business website
http://www.nylovessmallbusiness.com
Technical Assistance
Doing Business with New York State
Internet Resources
Empire State Builder
http://www.ogs.state.ny.us/BU/DC/ESB.asp
NYS Contract Reporter
http://www.nyscr.org/Public/Index.aspx
NYS Minority & Woman Owned Business
Enterprise website
http://www.nylovesmwbe.ny.gov
Technical Assistance
Doing Business with New York State
New York State
Office of General Services (OGS)
Procurement Services Group (PSG)
Phone: (518) 474-6717
customer.services@ogs.state.ny.us
www.ogs.state.ny.us
Empire State Development
Procurement Information Services/
New York State Contract Reporter
Phone: (518) 292-5220
Or “Contact Us” through the
NYS Contract Reporter
www.nyscr.org
Contact Us