Department of Administrative Services

Customer Focused, Performance Driven

Fiscal Managers Monthly Meeting

State Procurement Policy Overview & Updates

Nov. 17, 2015

Chapter 5, Article 3:• Establishes a centralized procurement

organization• Provides standards for state procurements• Provides details on when the law will apply and

when it will not apply

State Procurement Law: Official Code of Georgia Annotated, Title 50

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State Procurement Law

Authorizes DOAS Commissioner to make all rules, regulations, and stipulations and to make publication for all departments of state government (Georgia Procurement Manual)

Authorizes DOAS to establish delegations of purchasing authority for state entities

Defines state entity responsibilities for procuring goods/services Ensures open and transparent competition for all qualified vendors

in order to receive the lowest possible costs for commodities/services and sets limits for competition

Authorizes examination of books, records, and papers; report of purchases of any office, agency, department, board, bureau, commission, institution, or other entity of the state government relative to purchases (Procurement Audits)

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State Procurement Policy Overview

The Georgia Procurement Manual (GPM) provides operational and Administrative rules derived from the laws set forth by Georgia code.

GPM rules are an authorized legal extension, bearing the same weight, significance and effect as Georgia law.

The GPM is updated annually for the convenience of its users and in accordance with changes in Georgia laws and to implement improvements to procedures.

The GPM is made available on the DOAS State Purchasing web site in two forms: Online and PDF versions. The Online version has a dynamic searchable feature and the PDF version can be printed.

Between annual updates, the State Purchasing Division may issue needed policy changes through Official Announcements until such time the GPM can be updated on the web site.

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State Procurement Policy Overview

The purpose of the GPM is to: Make as consistent as possible the procurement

regulations among the various state entities.

Provide for increased public confidence in the procedures followed in public procurement.

Foster effective broad-based competition within the free enterprise system.

Where can the GPM and Official Announcements be found on the DOAS web site?

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Click in either location to access the Policy. Official Announcements are found by navigating to the site on the left.

Doas.ga.gov

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GPM( click here )

Online Version with Search Feature(hyperlinked)

GPM (PDF Version & Official Announcements)

Click here to access GPM

(PDF) & Official

Announcements

Further down on this page, you will find a section titled “Areas of Focus”.

Organized by the 7 Stages of Procurement a step-by-step depiction of the fundamental procurement process whereby an identified need for goods or services becomes an awarded contract (PO can be a form of a contract).

State Purchasing Official Forms (posted on SPD web site)organized and numbered by the appropriate stage

9 GPM Administrative Rules and Processes

Contract Process

7Award

Process

6Evaluation

Process

5Solicitation

Process

4Solicitation Preparatio

n

3Pre-

Solicitation

2Need

Identification

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10DOAS State Purchasing Division has general authority over the procurement activities of state entities pursuant to the State Purchasing Act; however there are exceptions.

1) Identity of the Purchasing Entity Full Exemption: Identity of purchasing entity, regardless of what is being procured. Examples: Legislative, Judicial Branch, and AuthoritiesPartial Exemption: Identity of purchaser and what is being procured.Examples: BOR and GDOT Construction/Public Works Contracts

2) Identity of Provider/Supplier Another Governmental Entity: Intergovernmental Agreements (Goods/Services)Non-profit Entity : Services (must comply with O.C.G.A. 50-20-1 )

3) Good/Service Procured Certain Specified Goods/ServicesExamples: Professional Services and School Textbooks are exxemptCompetitive Bidding Requirements Waived by SPDExamples: Items identified on the NIGP Exempt List, i.e. perishable food or hard to bid items

4) Federal and/or Private Grant Funds Any conflict between applicable federal law and the State Purchasing Act: entity should contact SPD. Federal and/or private grant funds are not exempt from the State Purchasing Act and the rules of competitive bidding still apply. Note: When the entity is the grantor of certain grants, the Fair & Open Grants Act governs and the Purchasing Law does not override that statue.

State Procurement Policy Overview

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State Procurement Policy Overview

Policy directs that all purchase orders be coded with an NIGP Code Numerical coding structure designed to identify what is purchased by 3-digits and 5-digits (commodities and services)

Due to the difficulty that State Entities had in identifying what are considered exempt purchases, State Purchasing began publishing an NIGP Exempt List (can be found on the SPD web site)Offers an “at-a-glance” list of commodities/services by NIGP Codes that are exempt or deemed “hard to bid” by State Purchasing.

CATEGORY

3-Digit Code

ITEM

5-Digit Code

Example: 019 – Agricultural Crops & Grains

Example: 01994 – Wheat

State Procurement Policy Overview12

The Order of Precedence must be followed for making procurements:

State Procurement Policy Overview

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Through procurement audits, State Purchasing has found entities have the most issues with the following:

Not choosing the correct NIGP Code for each PO line

Not indicating the correct Purchase Type Code on the PO (indicating the type of source)

Note: It is critical each of the above are correct on purchase orders since these are used to identify entity/state procurement spend. This information is used by State Purchasing to establish Statewide Contracts and can also be used by state entities to establish entity contracts. OPB, the Legislature, and even the Governor’s Office may even use this spend data.

Delegations of Purchasing Authority

Issues delegations of procurement responsibilities for entities under DOAS purview.

Current statewide Delegations of Purchasing Authority (DPA): Unlimited Delegation for

Requests for Quotes (RFQs) Delegation of $1M for

Requests for Proposals (RFPs)

DPAs are maintained in all procurement systems (by entity and process type)

State entities must monitor their purchasing activities to ensure they do not exceed their DPA.

On a case-by-case basis, State Purchasing Division may allow a state entity to exceed its existing DPA. request and receive written

permission from SPD prior to exceeding its DPA.

DPA for state entities can be raised or lowered based on compliance and performance levels.

State Purchasing State Entities

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Open Market Purchases totaling $25,000.00 or more must be made through the competitive bidding process unless an exception applies.

The state entity may not split reasonably foreseeable purchases into two or more transactions for the purpose of circumventing the requirement that any purchase of $25,000 or more be based on competitive bidding.

Approved solicitation methods are limited to: Requests for Quotes (RFQ), Requests for Proposals (RFP) Requests for Qualified Contractors (RFQC) Reverse Auctions

All solicitation methods are conducted through a formal sealed bidding process whereby the suppliers’ submitted offers are kept confidential and not opened by the state entity until after the solicitation has closed.

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Competitive Bid Processes

If it is determined through market research that only one supplier can provide the needed service or commodity, a Notice of Intent to Award to a Sole Source provider must be posted to the GA Procurement Registry (GPR) for those purchases $25K or above.

State Entities may also find through market research that a Consortium or a Cooperative Purchasing Agreement may provide the needed service or commodity. In this instance, a Notice must be posted to the GPR stating the entity intends to issue an award to a Consortium/Cooperative Purchase Agreement supplier.

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Other Approved Processes – Notices

Note:A specific form must be posted with each of these types of Notices on the GPR to justify why these are the best source for making the procurement.Either type of Notice can be challenged by the Supplier community so it is always best to ensure these are justified thoroughly on the GPR according to the procedures detailed in the GPM.

A protest is considered to be properly filed when it is in writing, signed by a company officer authorized to sign contracts on behalf of the supplier, and is received by the State Purchasing Division within the filing period.

Types of challenges a supplier may make: Challenge to the Solicitation Challenge to a Sole-Source or Consortia/Cooperative

Purchasing Notice Challenge to Results of Request for Qualified Contractors

(RFQC) Challenge to the State’s Intended or Actual Contract Award

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Protest Process

Recent updates were effective July 1, 2015• Official Announcement #04-15• Policy Supplement #04-15 details where each

revision was made and outlines the policy changes• Both of these documents are posted on the State

Purchasing web site/Official Announcements..

State Procurement Policy Updates18

More policy revisions were made July 1, 2015 than anytime since the GPM was rewritten and published in 2011 (previously known as the Agency Procurement Manual) See Policy Supplement #04-15 for a complete list off revisions Revisions include those changes made by the Legislature to the

Procurement Law Includes improvements for certain processes such as reducing

the amount of posting time to the GPR for certain solicitations Includes new processes for qualified suppliers on certain

solicitations to include Price Match option for RFQs and Additional Scored Questions for RFPs

Provides additional clarification to enhance customer understanding of certain policies

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Procurement Policy Updates

QUESTIONS20