Department of Procurement & Supply

Presents:

Purchasing Commodities and Services at the

University of Maryland

Who We Are

Director

James Stirling

Associate DirectorSupplies & Services

James Haley Location: Chesapeake Bldg

Assistant DirectorPhysical Distribution

VacantLocation: PDC

Associate DirectorConstruction & Facilities Services

VacantLocation: 0410 Service Bldg

Assistant DirectorDelegated Procurement

Marty Newman Location: Chesapeake Bldg

Small & Minority Business Programs AdministratorVictoria LeatherwoodCompliance SpecialistKathryn Harris

I.T. Support Staff(Comptroller)

Joseph Lederman

Purchasing Card

AdministratorKristina Libby

Support StaffKristin Stenson

Construction & A/E

CoordinatorsRex FitchThomas BlanchardJoyce Falkinburg

Procurement SpecialistsDenise ElliottBelle V Gentry

Buyers/Buyer Assoc.Christine O’BrienJennifer IrelandTanida Sombatpium

Facilities

ManagersKaren ElvidgeLisa Thompson

Procurement SpecialistsVickie Stoner

Support StaffCarole Simpson

Terrapin Trader

ManagerMike Painter

StorekeepersCarl MericaLamont Timmons

Support StaffGeorge Shettle

Transportation & Distribution

ManagerDoug Waterman

StorekeepersNick TrainorGeorge WilliamsHarry TeaboutCharles Koehnlein

General Stores

ManagerSidney SalazarSupport Staff

CoordinatorsMary Ann ZimmermanBruce BrewerApril Weimer

ManagerVacant

Procurement SpecialistsPaula MandelmanVickie UnderwoodLucy SanchezPatty ButnerJeffrey Turner

BuyersKathy BarrettTracey Schlegel

Administration

Business ManagerHarry Sheets

Support StaffLeslie Mauck

Administration

Tammy YanulevichMelvin Contee

Commodities & Services

MISSIONIn support of the University’s mission of excellence in education, research, outreach and collaborative partnerships with the greater community, the Department of Procurement and Supply will:

• Establish and administer contracts effectively • Procure facilities, goods and services for best value • Delegate procurement authority to promote efficiency • Provide value-added physical distribution services • Ensure University business is conducted in a fair and open

environment, in full compliance with applicable laws and regulations

Contacting Procurement

• Procurement & Supply Home Page– www.Purchase.umd.edu

• Main Information 301-405-5813

• Main Fax 301-314-9565

6 Steps to Procurement

6 Steps to Procurement

• Step 1 Consider borrowing or purchasing used or environmentally friendly

• Step 2 Are the goods or services available in-house?

• Step 3 Does the State require that we purchase the goods or services from “Preference Providers”?

6 Steps to Procurement (con’t)

• Step 4 Is the transaction within Delegated Procurement Authority?

• Step 5 Submit a Requisition for Purchase to the Department of Procurement and Supply. For competitive purchases include:

• Requisition for Purchase• Specifications• Performance requirements• Estimated dollar amount• Funding source• click here: Instructions for How to

Prepare a Requisition

6 Steps to Procurement (con’t)

• Step 6 Contact the Department of Procurement and Supply with questions/concerns– Main Information 301-405-5813– Main Fax 301-314-9565

• Note: This training does not cover Construction/Facilities Procurement. Contact Joe Vogel (301-405-2898) or Karen Elvidge (301-405-3269

Ethics

Code of Ethics• Give Vendors Fair and Equal

Consideration

• Strive to obtain the maximum value for each dollar of expenditure

• Do Not Accept Gifts or Gratuities such as– Tickets to sporting or

entertainment events, golf outings, meals

Code Of Ethics (Continued)

• Avoid Appearance of Conflict of Interest – Do not place orders with relatives

or firms with whom you have some ownership or relationship

• Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation

Types of Procurements• Delegated to Departments• Processed by Procurement &

Supply:– Micro– Simplified – Formal– Sole Source– Also Construction/Facilities

Procurement, but specifics are not covered in this training. Contact Joe Vogel (301-405-2898) or Karen Elvidge (301-405-3269)

Delegated Procurement

Delegated Procurement

• Campus has authority to spend up to $5,000*

• *Purchasing Card• *Small Procurement Orders• *Consultant Contract up to $5,000• Master Contracts• Travel Card

Delegated Procurement

• Primary Tool: Purchasing Card• Cardholder Agreement and

Training with Test Required• Purchases limited to $5,000 or

less per transaction• Certain Items/Services Restricted (Click here for specifics)

Purchasing Card • Issued in Individual’s Name• Not for Personal Purchases• No Cash and Cash Equivalents

(gift cards, etc.)• Not for Travel or Restaurants • Cards Must NOT be shared• No Splitting Orders to Bypass

Procurement Regulations• Pay Fair and Reasonable Prices

Master Contracts• Approx. 50 Master Contracts

available • Many Master Contracts with

Small and Minority Vendors• Office Supplies, Computer

Peripherals, MRO Supplies available through General Stores

• See Listing on website (Click here for link – requires UM user ID and password)

Types of Procurements Processed by Procurement

& Supply

Types of Procurements Issued by Procurement

& Supply

Classification by Size, Initiated by Requisition

• Micro Procurement <$5,000• Simplified Procurement >$5,000

but <$100,000• Formal Procurement >$100,000• *Sole Source – Any Amount

>$5,000

Requisition for Purchase

• Transaction is generally initiated by creating a Requisition and submitting it to Procurement and Supply (Click here for Instructions)

• Requisition Form on website (Click here to access form)

• Assignment of Requisition Numbers on website

Requisition Must Have

• Approval by authorized signatory (authorization card on file in Procurement & Supply)

• Clear specifications• Complete information

– who, what, where, when, why• Sufficient time for process

– Give a realistic date for delivery - not ASAP

Writing Specifications

3 Major Types of Specifications1. Design – Identify minimum

requirements2. Performance – Describe what you expect the good or service to produce3. Combination of design and performance

Simplified Procurement

Simplified Procurement • $5,000 to $100,000

• Handled by Procurement and Supply except Master Contract Releases– Goal is to issue purchase order with

14 days• Simplified refers to the more

streamlined process Procurement Specialists in Procurement and Supply use to execute these transactions

Request For Quotation

• Typically the Procurement Specialist will send a Request For Quotation (RFQ) to several suppliers. Will be considered for SBE/MBE procurement

• Based only on criteria stated in the solicitation– RFQ - low price that meets the

specifications

Formal Procurement

Formal Procurement• Greater than $100,000• Request For Proposals (RFP)• Invitation For Bid (IFB)• Handled by Procurement and Supply• Customer Prepares the Statement of

Work• Customer Assists in the Development

of a Milestone Plan• Requires More Teamwork between

Procurement and Customer• Award Based on Best Value

Publication of the Requirement

• e-Maryland Marketplace• Others as necessary

– Length of time before due date is now flexible

RFP Process

• Pre-Proposal Conference• Evaluation of Technical Proposals

– By Committee– Written Clarifications/Oral

Presentations• Evaluation of Price Proposals• Award by Best Value

Sole Source Procurement

What is a “Sole Source” Purchase?

Sole Source Procurement: “A situation created due to the inability to obtain competition. May result because only one vendor or supplier possesses the unique ability or capability to meet the particular requirements of the solicitation.” –NIGP Online Dictionary

• Equipment, Supplies and Consumables:– Products can only be purchased directly from a manufacturer

that has NO resellers or distributors.

– If resellers are available the purchase is NOT a sole source.

• Consultants and other Specialized Services– A Consultant has a unique set of knowledge, skills and abilities

that make him/her the ONLY consultant that can do the required work.

– A Scope of Work is required for all consulting contracts.

What is Not a Sole Source?

• A company offers a great price or deal, much better than its competitor.

• A company has the quickest delivery time.

• A company is known for providing the “best” product. • A contract with the company already exists.

• This company provided the product last time.

• Sold by the manufacturer but there are resellers.

To initiate a Sole Source Purchase include:

Requisition (The template is available on the Procurement and Supply webpage: http://www.purchase.umd.edu/ , by selecting the “Forms” link. )

• Estimated dollar amount

• Funding source

• Scope of Work or Performance requirements. All mandatory requirements must be clearly identified.

• Sole Source Justification form.

• The department provides justification using a Sole Source Justification form. The template is available on the Procurement and Supply webpage: http://www.purchase.umd.edu/ , by selecting the “Forms” link. It must be filled out and signed.

• Market Analysis- every sole source justification form must include information documenting the department’s market research to find all available vendors able to provide the required goods or services.

Writing a Sole Source Determination

Questions that address the type of information that should be included in the sole source:

• What are we purchasing?

•What are the technical requirements?

• Is this the only available product/service that meets all requirements?

•How do we know this is the only product/service that will work?

• Who is the manufacturer?

•How do we know this is the only company/individual that can supply this product/service?

•Are there any resellers or distributors?

• What market research has been done to look for other products/services that might meet your requirements? And what were the results of that market research?

• What are the specific problems with any competitor’s products?

Additional Information about How Sole Source Purchases are Processed

• The more information included in the sole source justification form, the better!

• If the equipment or service provider was specifically listed in a grant or contract as a key part of the University’s effort, provide pertinent pages of the grant or contract, with the sole source form.

• The information must clearly explain the market research that was completed to identify this purchase as a sole source.

• Procurement will typically perform independent research to confirm that this is the only available source. If Procurement finds there are resellers or distributors available, then a formal request for quotation will be issued.

Sole Source Contract

• Formal proposal from Contractor • Contractor Reviews and Signs

our Terms, Conditions, Affidavits and Certifications

Sole Source Contract

• Procurement Determines Price Reasonableness

• Procurement Determines Contractor Responsibility– Past Performance– Technical Capabilities– Financial Stability

• Procurement Issues Contract

Special Approvals• All purchases using Bond Funds require

prior approval of the MD Board of Public Works– Who? The Governor, Comptroller and

Treasurer• Contracts over $5 Million require prior

approval of the USM Board of Regents

Vendor Contracts

Vendor Contract Review

• Only Procurement can sign vendor contracts, agreements

• Insurance – University is self insured– Need a certificate of insurance? Contact Risk

Manager, Donna McMahon, DES

• Vendor Agreements, Licenses, Waivers, Contracts and Contract Modifications– All such documents, regardless of cost, require

Procurement’s review for objectionable terms

Consulting Agreements/Contracts

Consulting Agreements

• Consulting services are, in principle, no different from any other contract for services

• Contracts over $5,000 must be coordinated with Procurement

• Contracts less than $5,000, use UM consulting agreement on website

• Travel and accommodations costs can be included in the contracts– travel and accommodations should be

consistent with University travel guidelines.

Consulting Agreements

• Cannot treat consultants as employees, nor can a consultant have been an employee during the calendar year

• To avoid conflict with IRS rules consult with Procurement before giving the consultant a notice to proceed when within delegated procurement

Purchasing Office Furniture

Furniture Purchases• Maryland Correctional

Enterprises (formerly State Use Industries) must be evaluated for all furniture purchases

• If Maryland Correctional Enterprises (MCE) can satisfy your requirements we must use MCE

• Furniture showroom in Physical Distribution with Representative

Minority and Disadvantaged

Business Enterprise Program

AND Small Business Reserve Program

Minority Business Enterprise

• Minority Business Enterprise (MBE)

• State socioeconomic program to support historically underutilized businesses.

• House Bill 306 - Maryland Law sets goals

Certification for MBE Contractors

• To be counted, a firm must be certified by Maryland Department of Transportation

• Approx. 4000 firms certified• Database available at

– http://www.mdot.state.md.us/cgi-bin/mbedir/mbedirectory

– link from Procurement’s web site

Minority Business Participation Goal

• Goal is 25% of dollars to be spent with MBE contractors or subcontractors

• 10% sub-goal for women owned businesses and 7% for African American owned businesses

Review of Each Procurement

• Procurement and Supply will review each procurement to determine if MBEs are available for solicitation

• Each Procurement over $100,000 should have MBE contract or subcontract goal

Small Business Reserve

• It’s the Law! 10% of dollars spent with Certified Small Businesses

• Designed to stimulate small business growth and strengthen the Maryland economy

• Requires delegated purchases from SBEs to meet mandate

Small Business Reserve Program

• Certain solicitations will be restricted to competition among State-certified SBEs

• Look up certified SBEs at: https://www.smallbusinessreserve.maryland.gov

Review of Each Procurement

• Procurement and Supply will review each procurement to determine if SBEs are available for solicitation

• Procurement Creates Master Contracts with Small Businesses (identified with SBE icon)

Chancellor and President Support MBE and SBR

Programs• UM and USM Board of Regents supports the

State’s efforts to increase business opportunities for MBE’s and SBE’s– Firms that have demonstrated time and again the

ability to provide excellent products and services• Increasing the MBE participation to 25 percent

is a significant challenge. • Mandate of SBE participation of 10% also a

challenge• We also need the assistance and aggressive

effort of every unit on campus to achieve these new MBE goals and SBE mandate.

How Can You Help?• Check the master contracts listed on the

Department of Procurement and Supply website at WWW.PURCHASE.UMD.EDU to determine if the supplies or services you need are available for order from an SBE.  SBE master contracts are flagged for that purpose.  Use the purchasing card or ELF system to place the order.

• Search for SBE sources before placing a procurement card order with any other vendor.  State-certified SBEs can be located via the link on the Procurement and Supply main web page, or via the program Website: WWW.SMALLBUSINESSRESERVEPROGRAM.COM

How Can You Help (con’t)

• You can then search by Commodities or Services to find SBE's capable of meeting your needs.  We think that you will find that the search tool is very user-friendly.

• Should you know of vendors who may be qualified for SBE certification, please direct them to the program website or ask them to call Procurement and Supply at 301-405-5813 for assistance. Online self-certification takes only minutes to complete.

How Can We Help You?

• We can help you locate Small and Minority Businesses– All Procurement & Supply Staff

available to assist– Victoria Leatherwood is our Small &

Minority Business Programs Administrator

Contract Administration

Contract Administration

• Delegated and Simplified Procurement– contract administration may be no

more than verifying that the ordered item was received on time, at the right location and the price on the invoice is equivalent to the price on the purchase order, P-Card order, etc

• Complex Procurement – contract administration is a

responsibility that is shared between Procurement and Supply and the customer

Contract Administration

• Early and effective communication between all parties (including Procurement)

• Detailed documentation of performance– Good or Bad!

Physical Distribution

Goods Received by the Requestor

• Review Delivery/Shipping Documents• Inspect Shipment• If count is incorrect or damage is apparent

– Record discrepancy on delivery document (short one piece, etc.)

– Have delivery person sign acknowledgement of statement with signature or initials

– Make a copy of the signed document for your records– Sign document and accept delivery– Contact Procurement for Assistance if necessary.

• If UPS or FedEx and shipment is damaged, record discrepancy and refuse shipment

Shipping Goods from Campus

• Get a “Return Authorization” • Keep accurate records• FedEx and UPS Contracts• Contact Traffic Manager for

assistance (Doug Waterman)

Household Moves• Procurement has contracts for

household moves• Contact Doug Waterman, 301-

405-5852 for assistance• Please allow approximately four

weeks for the bid process, especially during peak season (June, July and August)

Secure Storage

• Inside and Outside Storage• Inside: Sensitive Items• Outside: 31 Units @ 10’ x 20’

each

Disposal of Surplus Property

• Terrapin Trader is University’s Surplus Property Operation

• Property Control• Free Pick Up from Departments• Items Sold through TT Showroom

and Bid Process

General Stores

• MRO Contract with MSC Industrial Supplies

• Office Supply Contracts and Computer Peripherals Contracts – Officemax A Boise Company – Rudolph's Office & Computer Supply, Inc.

Questions

Contact: Paula Mandelman Marty Newman April Weimer Tammy Yanulevich

301-405-5813