2013 Procurement Training Presentation

Report
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Goals
 High Risk Activity – National reviews consistently find
problems in the methodology Recipients (WYDOT) and
Sub-recipients (you) use when making purchases with
federal money
 WYDOT Transit Staff would like to:
 Explain the hierarchy of the regulations
 Provide simple guidance
 Different requirements based on purchase amount
 Limit liability
 Both yours and ours
 Allow for autonomy with accountability
 Answer your questions related to procurement
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Why buy?
 When determining the purchase ask these questions
to determine if the purchase is applicable to your
Transportation program:
 Is it Reasonable?
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Top of the line item, mid grade or bottom of the barrel
 Is it Necessary?
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Consider the severity of the need
 Is it Allowable?
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Remember this is for your Transportation Program
 If in doubt, ask the WYDOT staff
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Definitions
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Procurement: The act of obtaining or buying goods and services. The process includes
preparation and processing of a demand as well as the end receipt and approval of payment. It often involves:
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.
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Micro-Purchases: Purchases of goods or services under $2,500
Small Purchases: Purchases of goods or services between $2,501 and $7,500
Large Purchases: Purchases of goods or services $7,501 and above
Prohibited Divisions The recipient or sub-recipient may not divide or reduce the size of its procurement to
avoid the additional procurement requirements applicable to larger acquisitions
Price Analysis when adequate price competition and to determine the reasonableness of the proposed
contract price.
Cost Analysis necessary when adequate price competition is lacking and for sole source procurements
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In Accordance With:
 49 CFR Part 18 – Uniform administrative requirements for grants and cooperative
Highest Level
agreements to state and local governments
 49 CFR Part 19- Uniform administrative requirements for grants and agreements
with institutions of higher education, hospitals, and other non-profit organizations
 FTA C 4220.1F Third Party Contracting Guidance-Rev. 4, March 18, 2013
 Copy on WYDOT webpage
 Best Practices Procurement Manual
 Wyo. Stat. § 9-2-1016 General Services Division
 WYDOT OP 24-9 Purchasing and Contracting
 Copy on WYDOT webpage
 Local policy
Lowest Level
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In Accordance With
Per your WYDOT Agreement, General Conditions 4 c. :
 Purchase of Project Equipment.
 The purchase of all Project Equipment financed in
whole or in part pursuant to this Agreement shall be
undertaken by WYDOT on behalf of the Recipient or
with prior WYDOT approval in accordance with the
procedures established by WYDOT. Purchases of over
$1,000 using Federal or State funds will be subject to
approval of WYDOT in accordance with established
procedures.
 WYDOT will evaluate your procurement and bid
package before bid is advertised
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Excluded Parties List System
 FTA C 4220.1F CHAPTER IV 2 a2 (b)
 General Services Administration (GSA) Excluded Parties List
System
 FTA strongly recommends that the recipient check the
Excluded Parties List System (EPLS). Now a part of the
System for Awards Management (SAM), the EPLS is an
electronic, web-based system that identifies those parties
excluded from receiving Federal contracts.
 Per your WYDOT Agreement, General Conditions (t) :
 Suspension and Debarment- you are required to check the
EPLS system for your vendors. www.sam.gov
 Keep copy of results in your file
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TYPES OF PROCUREMENT
 Micro Purchase – under $2,500
 When Appropriate - when there is a reasonable need in your
Transportation program.
 Procedures - The following procedures apply to micropurchases:
 Competition. The recipient should distribute micropurchases equitably among qualified suppliers. Rotating
through a list of the suppliers is one method to equitably
distribute the micro-purchases among qualified suppliers.
 Per Internal WYDOT Policy. Attain at least three price
quotes comparing apples to apples. Use local vendors
and internet quotes. Keep records showing the purchase
is fair and reasonable.
 Prohibited Divisions - Apply
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TYPES OF PROCUREMENT
 Small Purchases - $2,501 – 7,500
 When Appropriate - when there is a reasonable and necessary need in your
Transportation program for purchases.
 Procedures - When using small purchase procedures: The recipient must obtain
written price or rate quotations from at least three qualified sources, local and
online if applicable. Compare apples to apples, same specifications.
 The name and address of the vendor.
 The vendor’s authorized representative’s name and signature.

Prices.
 The FOB (free on board) point (which determines who pays freight charges)
 The terms (Net 45 and so forth).
 The date.
 The delivery time.
 Prohibited Divisions - Apply
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TYPES OF PROCUREMENT
 Large Purchases - $7,501 or greater
Competitive Sealed Bidding
 Invitation For Bid (IFB) - Based on specific quantities and criteria.
 Procedures - The IFB should be publicly advertised. Ensure the bids are
solicited from an adequate number of known suppliers . The Specs will
describe the property or services sought in sufficient detail that a
prospective bidder will be able to submit a proper bid. Bidders are
allowed sufficient time to prepare bids before the date of bid opening,
typically three weeks. All bids are publicly opened at the time and place
prescribed in the invitation for bids. A firm fixed price contract is
usually awarded in writing to the lowest responsive and responsible
bidder . Any or all bids may be rejected if there is a sound, documented
business reason; late, incomplete or does not meet the specifications.
 Prohibited Divisions - Apply
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METHODS OF PROCUREMENT
 Competitive Proposals (Request for Proposals) Requests for
proposals (RFPs) may be used when configuration or performance
specifications can not be clearly defined and when cost is not the
only criteria in determining award.
 When Appropriate. Competitive proposals should be used
when the property or services to be acquired are described in a
performance or functional specification or when uncertain
about whether more than one bid will be submitted. Separate
discussions with individual offeror(s) are expected to be
necessary after they have submitted their proposals.
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METHODS OF PROCUREMENT
 Architectural Engineering (A&E) Services and Other
Services. Professional services of an architectural or engineering
nature performed by contract that are associated with research,
planning, development, design, construction, alteration, or repair
of real property.
 WYDOT has approved template procedures in Operating Policy
40- 1, Consultant Services Agreements.
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METHODS OF PROCUREMENT
 Noncompetitive negotiation may be used to purchase materials,
supplies, equipment, printing and services if the item or service to be
purchased is:
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For an emergency situation.
For compatibility with existing equipment or systems.
To support a special program for which the product has unique characteristics
essential to the program’s needs.
For items covered by patent or copyright.
For trial and evaluation prior to specification development.
The only known source. Documentation must be submitted with requisition.
One for which users have had extensive training and experience and the use of
any other similar piece of equipment would require considerable reorientation
and training.
To secure pre-negotiated cooperative contract pricing, such as with General
Services Administration (GSA) pricing, state co-operative agreements, U.S.
Communities contracts, WSCA contracts, and so forth. The contract number
must be listed on the requisition.
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In Summary
Per your WYDOT Agreement, General Conditions 4 c. :
 Purchase of Project Equipment. The purchase of all
Project Equipment financed in whole or in part
pursuant to this Agreement shall be undertaken by
WYDOT on behalf of the Recipient or with prior
WYDOT approval in accordance with the procedures
established by WYDOT. Purchases of over $1,000
using Federal or State funds will be subject to approval
of WYDOT in accordance with established procedures.
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In Summary
 If you have a purchase $2,500 or under (Micro
Purchase)
 Per Internal WYDOT Policy-Attain at least three price
quotes comparing apples to apples. Use local vendors
and internet quotes.
 Keep all records in your procurement files, if it’s not in
the file it didn’t happen!
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In Summary
 If your purchase is between $2,501 and $7,500 (Small
Purchase)
 Attain at least three price quotes comparing apples to
apples. Use local vendors and internet quotes.
 Keep all records in your procurement files, if it’s not in
the file it didn’t happen!
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In Summary
 If your purchase is $7,501 or greater (Large Purchase)
 Invitation For Bid (IFB). Based on specific quantities
and criteria.
 Keep all records in your procurement files, if it’s not in
the file it didn’t happen!
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Reference Tools
 Your Procurement Manual
If you don’t currently have one you can adopt ours on
the WYDOT home page. WYDOT staff is available for
assistance.
 Ensure your board or governing body approves and
signs it.
 Keep all records in your procurement files, if it’s not in
the file it didn’t happen!
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Reference Tools
 FTA Website
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Reference the Procurement Section
 RTAP (Rural Transit Assistance Program)–
Procurement Pro
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Find your Federal Clauses for a given purchase
 WYDOT Transit - Procurement Webpage
 Best Practice Procurement Manual
 4220.1F Third Party Contracting Guidance
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Reference Tools
 Guidance on Cost and Price Analysis. FTA recognizes that
some recipients may have difficulty obtaining the
information necessary to conduct a proper cost or price
analysis. Use the following resources as guidance in
preparing cost or price analyses:
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FTA’s “Best Practices Procurement Manual,” Chapter 5,
The National Transit Institute Course, “Cost or Price Analysis and Risk
Assessment,”
Pricing Guide for FTA Grantees, FTA Web Site:
http://www.fta.dot.gov/documents/Helpline_Price_Guide.doc.
FAR Part 31, Contract Cost Principles and Procedures, and
Defense Contract Audit Agency Audit Manual. See, the DCAA Web site:
http://www.dcaa.mil.
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Reference Tools- WYDOT Webpage
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