PROCUREMENT USING SPONSORED PROGRAM FUNDS November 29, 2006 Marty Newman, Assistant Director 301'405

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PROCUREMENT USING SPONSORED PROGRAM
FUNDSNovember 29, 2006Marty Newman, Assistant
Director 301.405.5834 menewman_at_umd.edu
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We will cover ...

• Introduction - Who We Are
• Where to Find Purchasing Information
• Purchasing Ethics
• Purchasing Procedures Lead Times
• Required Approvals
• Small Business Subcontracting Plans and Reports

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Mission

• In support of the Universitys 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

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Procurement and Supply
Director of Procurement and Supply James
Stirling 301-405-3372
Associate Director Supplies and Services
Purchasing Jim Haley 301-405-5837
Associate Director Construction Purchasing Joyce
Falkinburg 301-405-2847
Assistant Director Physical Distribution Larry
Walton 301-405-5855
Assistant Director Delegated Procurement Marty
man 301-405-
Assistant Director Delegated Procurement Marty
Newman 301-405-5834
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Supplies and Services
Associate Director Jim Haley
IT Scientific Coordinators Bruce Brewer Fran
Galloway Support Staff Donna Whisman
General Commodities Manager Mary Monn Procurement
Specialists Patty Butner Vickie Underwood Lucy
Sanchez Paula Mandelman Buyer Kathy Barrett
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Construction/Facilities Procurement
Associate Director Joyce Falkinburg
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Delegated Procurement
Assistant Director Marty Newman
Purchasing Card, Small Procurement Orders, Master
Contract Releases Kristina Libby Tammy
Yanulevich Melvin Contee Kristin Stenson
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Where to Find Procurement Information

• Procurement Supply Home Page
• http//www.purchase.umd.edu
• Procurement Web - PRO WEB
• http//www.ares.umd.edu/pro/home.html
• Purchasing Card Management System
• https//was-1.umd.edu/pcard/

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USM Procurement Policies Procedures

• On the internet at
• http//www.purchase.umd.edu

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Code of Ethics

• Give Vendors Equal Consideration
• Do Not Auction Prices

• Do Not Accept Gifts or Gratuities such as
• Tickets to sporting or entertainment events, golf
  outings, expensive after hours dinners

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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

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Procurement Rules Apply Regardless of Funding
Source

• University Procurement Rules Apply to Grants and
  Contracts
• Delegated Purchasing Policy
• See the link on our web page

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Priority of Procurement Sources

• Share Equipment or Buy Used
• UM In-House Services
• Maryland Correctional Enterprises
• Blind Industries Services of MD
• Maryland Sheltered Workshops
• Master Contracts
• Small Minority Vendors

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Look for Existing or Used Equipment Before Buying

• OMB Circular A-110 Screening Requirement
• Can you Share Equipment?
• Can You Buy Surplus Equipment?
• UM Terrapin Trader
• MD State Agency for Surplus Property, Jessup
  [phone]http//www.dgs.state.md.us/surplus/
  
• Federal Surplus

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Procurement Authority Delegated to Departments
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Delegated Procurement Processes

• Up to 5,000-Non Competitive
• Purchasing Card (Primary Tool)
• SM Delegated Small Order
• Can be Non-Competitive
• No Dollar Limit
• Master Contract Release
• Terrapin Trader Surplus Property
• General Stores

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Procurement and Supply

• Has responsibility for obligating funds for
  procurements and signing contracts
• Responsibilities include
• Seeking Maximum Practical Competition
• Making Formal Determinations
• Issuing Purchase Orders Contracts
• Establishing Master Contracts

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Requisition Needs

• Complete information
• who, what, where, when, why
• Sufficient time for process
• Give a realistic date for delivery - not ASAP

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Less than 100,000

• Request For Quotations
• Less formal than Bidding or RFP
• Lead time 14 days

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Over 100,000

• Formal Procurement
• Request For Proposals (RFP)
• Invitation For Bids (IFB)
• Sole Source
• Lead time at least two months
• A Milestone Plan will be created for each
  transaction

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Milestones in the RFP Process

• PI Develops Scope of Work
• Procurement Develops Source Selection Plan
• Joint Development of RFP Document
• Release of RFP to Vendors Published in E
  Maryland Marketplace
• Determinations

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RFP Process Cont.

• Pre-proposal conference
• Evaluation of Technical and Financial Proposals
  from multiple vendors
• Award of RFP
• USM, BOR, BPW Approvals if necessary
• Execution of Contract

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Sole Source

• Compatibility
• Only one source
• Testing or trial use
• User must complete and sign Sole Source
  Justification http//www.purchase.umd.edu/general/
  forms/sole.htm
• Sole Source Determination must be signed by Vice
  President of Administrative Affairs (once 100k)

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Spending Grant Funds

• OMB Circular A110 Subpart C
• Written Procurement Procedures

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A110 C.43 Competition Preferred

• Maximum extent practical
• Specification developer excluded
• Award to most advantageous and responsible offer
• Price, quality, other written factors

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A110 C.44 Written Procurement Procedures

• Avoid buying unnecessary items
• Analyze lease vs. buy
• Standards for competition

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C.44a Solicitation Standards

• Clear description, no restrictive specifications
• Vendor requirements, evaluation factors
• Functional or performance specifications
• Range or minimum

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C.44a Solicitation Standards

• Specify salient characteristics of the item if
  using Brand Name or Equal
• Preferences
• Metric Measurement
• Environmentally friendly
• Energy efficient
• Recycled

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C.44b Maximize Efforts to Utilize

• Small Businesses
• Disadvantaged Firms
• Women owned Business Enterprises
• HUB-Zone firms
• HBCU and MI
• Veteran owned firms

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C.45 Price Analysis

• Primary price analysis is comparison of response
  to IFB, RFQ or RFP
• Document Reasonableness
• Discounts
• Trade-in, rebate

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C.46 Records and Documentation

• Basis of contractor selection
• Cost/Price Reasonableness
• Contractor Responsibility
• Representations and Certifications

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A110 C.47 Contract Administration

• Evaluate and document performance
• Good and bad

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Spending Contract Funds

• FAR Flow Down Clauses
  Written Procurement Regulations Contracts
  Directives

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Small Business Definition

• Service - Average Receipts NTE 2.5 - 21.5
  Million
• Manufacturers - Employees 500-1500
• Supplies - less than 500 employees

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Which Firms are Small, Women-Owned, Etc?

• www.pro-net.sba.gov
• Identify a specific firm
• List small firms for a specific SIC code
• www.sba.gov/hubzone
• Identify by County

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Report ofSmall Business Spending

• SF 294 Form
• Individual contract over 500,000
• SF 295 Form
• Summary of all contracts for each sponsor
• Reports generated twice each year by Procurement
  with assistance from ORAA and Comptroller