DCP Standard Operating Procedures /

Procurement Overview

Integrated Service Center RepresentativesNovember 10, 2006

Agenda

Introductions and Overview Standard Operating Procedures Manual (SOPM)

Existing Procedures Exceptions for Empowerment Schools Consultant Services

Purchasing Guidelines & Thresholds for Empowerment Schools DCP Procurement Tools

DCP Website FAMIS Portal www.shopDOE.com

DCP Client Services Instructional Materials Review Unit (IMRU)

Overview & Process Highlights

SOPM – Existing Procedures Empowerment Schools are still expected to follow the Department of Education’s

Procurement Rules are set forth in the SOPM. To view the SOPM, navigate to the DCP website - http://schools.nyc.gov/Offices/DCP

Click Policies and Procedures Click Standard Operating Procedures and finally, click SOP Chapter OTPS Purchases.

SOPM – Exceptions for Empowerment Schools

Increased Procurement Card (P-Card) Purchasing Limit P-Card limit for Empowerment Schools has been increased from $2,500 to

$5,000. Note: All applicable regulations and procedures still apply.

Increased Professional Services Threshold Professional Services from Non-Contracted external vendors has been increased

from $15,000 to $25,000. Note: Empowerment School Principals are required to document their selection

process and choice of vendor in conformance with the “Best Value” standard, as set forth in the SOPM.

NEW! – Purchasing from Internal DOE Professional Providers Over 400 Professional Services from Internal DOE providers are now available

for purchase by Empowerment Schools via the FAMIS Portal. There are no approvals necessary for DOE Professional Services purchases. Note: Before purchasing Internal DOE Services, Empowerment Schools must

first commit OTPS funds to this purpose in Galaxy under the title “Internal DOE Services – 0998.”

SOPM – Consultant Services1. Independent Consultants (1099 Consultants)

Specialized temporary employees who are expected to act independently and return a finished product by a prescribed delivery date. To hire an independent consultant, you must go through the Division of Human Resources (DHR) - http://schools.nyc.gov/Offices/DHR/. The consultant will be required to submit a W9 and will be paid directly by the DOE.

2. Individual Vendors

Individual people that have a business, are registered with the DOE, and have a DOE vendor number. Taxes are also not withheld by the DOE for payments and the individual is responsible for reporting quarterly earnings and paying those taxes.

3. GoodTemps Temporary Employees (Vendor – NYS018000 / Contract – 1A61813)

May be hired when a principal determines how these people will do their jobs and provides them with specific job duties. Examples include Office Clerks, Data Entry Clerks, Bookkeepers, Secretaries, Administrative Assistants and Receptionists. For a full list, visit http://www.goodtemps.org/.

4. GoodTemps Professional Service Consultants (Vendor – GOO024000 / Contract – 9600070)

Effective July 2005, the Department of Education has entered into contract with GoodTemps to secure individual consultants to provide professional services. For additional information on the procedures for securing these services, visit http://schools.nyc.gov/NR/rdonlyres/E7565DCE-2C8F-4882-B88F-D439818CBA19/14137/DefinitionsofProfessionalConsultantPOconcernsandWa.pdf.

Note: GoodTemps will not pay any individual consultant above the maximum amount of $300 per day without pre-approval. In addition, GoodTemps will not pay any individual consultant more than $25,000 during the fiscal year of July 1st – June 30th without the District or FMC interviewing three individuals or upon the submittal of a waiver signed by the respective Deputy Chancellor.

Purchasing Guidelines & Thresholds~ Professional Services ~

ThresholdsProcurement

ActionProcess Timeline

$0-$25,000Empowerment School enters PO in FAMIS. No further approval necessary.

NA

>$25,000Empowerment School enters PO in FAMIS. Any additional approval is up to ISC to decide.

NA

ThresholdsProcurement

ActionProcess Timeline

$0-$25,000Purchase Order in FAMIS

Vendor must register with the DOE and receive a vendor number. Empowerment School enters PO in FAMIS. No further approval necessary.

10 days (for vendor request process)

a) Informal Solicitation (ISR)

2 months

b) Sole Source / Exception

1-2 weeks

a) Request for Proposal (RFP)

School must request via ISC for DCP to assist in the preparing and processing of an RFP.

5-12 months

b) Sole Source / Exception

School must request ISC to submit an Exception to the Committee on Contracts.

2-3 months (from approval by Committee)

ThresholdsProcurement

ActionProcess Timeline

$0-$ no limitPurchase Order in FAMIS

Empowerment School allocates money to 0998 object code in Galaxy. Requests service in FAMIS E-Catalog. Service provider approves service request via FAMIS. No further approval necessary.

None (but can vary based on provider response time)

>$100,000

PROFESSIONAL SERVICES – Internal DOE Professional Service Providers

PROFESSIONAL SERVICES - Contracted Services

Purchase Order in FAMIS

PROFESSIONAL SERVICES - Non-Contracted Services

$25,000-$100,000

The request must come to Division of Contracts and Purchasing, who will conduct either a) an ISR or b) Sole Source exception, depending on the request.

Purchasing Guidelines & Thresholds~ Commodities ~

ThresholdsProcurement

ActionProcess Timeline

$0-$15,000Empowerment School enters PO in FAMIS. No further approval necessary.

NA

>$15,000Empowerment School enters PO in FAMIS. Any additional approval up to ISC to decide.

TBD

ThresholdsProcurement

ActionProcess Timeline

$0-$250Purchase Order in FAMIS

Vendor must register with the DOE and receive a vendor number. Empowerment School enters PO in FAMIS. No further approval necessary.

1-5 days

$250-$5,000 Telephone QuoteMust solicit and document three (3) telephone and/or written bids.

1-5 days

$5,000-$15,000

Written QuoteMust solicit and document three (3) written bids.

1-5 days

$15,000-$100,000

Open Market Agreement (OMA)

The request must come to Division of Contracts and Purchasing, who will conduct a public solicitation for the goods. 2-5 months

a) Request for Bid (RFB)

School must request via ISC for DCP to assist in the preparing and processing of an RFB.

4-10 months (depending on complexity)

b) Sole Source / Exception

School must request ISC to submit an Exception to the Committee on Contracts.

2-3 months (from approval by Committee)

COMMODITIES - Contracted Items (and Non-List and Listing Applications)

Purchase Order in FAMIS

COMMODITIES - Non-Contracted Items

>$100,000

Purchasing Guidelines & Thresholds~ Procurement Cards ~

~ SIPPS ~

SIPP (formerly IMPREST) is an electronic payment mechanism processed through the FAMIS Portal. SIPP was originally established to facilitate “over-the-counter" purchases (e.g., postage), providing for a direct payment to the vendor or reimbursement to the purchaser. However, with the introduction of P-Cards, SIPP should no longer be used for purchases. Instead, SIPP should be reserved for reimbursement to NYC Department of Education employees for “business related” expenses.

SIPPS

ThresholdsProcurement

ActionProcess Timeline

$0-$5,000Single Transaction with P-Card

Empowerment School completes transaction with P-Card. No further approval necessary. NA

$15,000 EncumbranceEmpowerment School may encumber up to this amount at a given time on P-Card. Approval required by ISC for additional encumbrances (must tie to a specific budget).

NA

P-Cards work essentially like credit cards and may be used to order products from vendors in situations where issuing a Purchase Order is not efficient for reasons of delivery time or contractual ambiguities. If the payment is for a valid purchase, the banking institution issuing the card will approve the purchase and pay the vendor, less a fee, within a few days. The banking institution then sends a monthly billing statement, along with card activity reports, to the ISC for payment.

PROCUREMENT CARDS

DCP Client Services

DCP Procurement Tools

Websites

Main Website - Division of Contracts & Purchasing

http://schools.nyc.gov/Offices/DCP/default.htm

DCP Client Services

(718) 935 – 4444

DCP Client Services

PurchasingPortal@schools.nyc.gov

Instructional Materials Review Unit ~ Overview & Process Highlights ~

The IMRU is an office within the New York City Department of Education that ensures that all textbooks and instructional material in our classrooms contain appropriate material for our students. The IMRU reviewers ensure that there is no inappropriate content or references, such as foul language, religious references, racial slurs, or sexual content. They also determine whether the textbooks or software can be purchased using NYSTL funds.

If an Empowerment School would like to purchase a particular textbook that is not currently available on the e-Catalog, the process is as follows:

1. Empowerment School Contact his/her Network Support Team Representative

2. Network Support Team Representative Contact Colette White, IMRU Supervisor, at

(718) 935-4010.

3. Material listed on e-Catalog in timely manner.

Questions?