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CONTRACTING 101:Doing Business with the State of Michigan
Last Revised: May 2018
Craig [email protected]
Communications RepresentativeState of Michigan Procurement
Last Revised: May 2018
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About State of Michigan Procurement
• Establishes contracts in excess of $500,000 on behalf of state agencies
• Sets and implements state’s purchasing policies
Central Purchasing
Office
• Approximately 850 multi-year contracts• Valued at billions of dollars• For a full list of DTMB contracts:
michigan.gov/miprocurement
State Contracts
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DTMB Contract List
Contract list available at:michigan.gov/miprocurement
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DTMB Buying Divisions
Commodities and Infrastructure Services
Information Technology (IT)
Services
Real Estate
Design and Construction
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Commodities & Infrastructure ServicesCommodities• Alarm Systems• Building Equipment /
Maintenance• Clothing• Copiers• Energy• Food• Furniture/Carpet
• Grounds Equipment• Radio Equipment• Road Salt• Vehicles• Law Enforcement Supplies• Earth Moving Equipment• Office Supplies• Printing Equipment & Services
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Commodities & Infrastructure Services, cont.Infrastructure Services• Janitorial Services• Security Guard Services• Pest Control Services• Landscaping Services
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Information Technology (IT)• Software (Commercial-Off-the-Shelf Solutions / Software as a
Service)• Hardware• Custom Development• Data Communications• Telecommunications• Wireless• Data Storage• Staff Augmentation
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Services• Accounting / Auditing• Auctioneering• Banking / Financial• Consulting• Health Care• Pharmaceuticals• Insurance• Marketing / Advertising• Procurement Card Program
Management
• Temporary Employment Services
• Surveys• Data Access
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400-500 leasesApproximately 6 million square feetAround $85 million in annual rent
Interested in Leasing Space to the State of Michigan?www.michigan.gov/miprocurement
Programs and Policies > Real Estate and Leasing
Real Estate
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Services• Construction• Engineering• Architectural• Plumbing, HVAC, painting, etc.
Average 350 contracts annuallyAveraging $100 million annually
Design & Construction
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Other Contracting Offices: MDOTMichigan Department of Transportation (MDOT) - Bridge and Highway• Separate office for bridge and highway construction contracting• Most projects use federal funding – may have to follow federal regulations• Disadvantaged Business Enterprise (DBE) Program
• Assists minority, women, and socially and economically disadvantaged business owners
• Businesses must meet the federal DBE regulations• Get certified by contacting the MDOT office at 517-373-2377• www.michigan.gov/mdot > Doing Business
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Delegated Authority• DTMB Central Procurement delegates purchasing authority to
individual state agencies• State agencies can make purchases up to $500,000• Department of Health and Human Services: All direct human
services purchasing• Michigan State Industries: $1 million for factory purchases• Each agency has their own office that makes these purchases
Other Contracting Offices: State Agencies
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Purchases under $10,000• Solicitations under $10,000 may not be posted publicly • State agencies are still required to competitively bid the project• For typical sale under $10,000:
• Market to the agencies using the “State Agency Buyer List”• www.michigan.gov/miprocurement > Contact Us
Other Contracting Offices: State Agencies, cont.
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• Sigma Vendor Self Service (Sigma VSS): See www.michigan.gov/SIGMAVSS for information
• Implemented on July 31, 2017• Replaced Buy4Michigan and Contract and Payment Express (C&PE)
• One system for bid posting, payment, and to manage account information
• Improved communication and privacy
SIGMA VSS – New Bid Posting System!
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• Vendors registered in C&PE prior to June 30 automatically converted to SIGMA VSS• Vendor information from Buy4Michigan was not converted• Claim your account and validate your information
• New vendors not registered in C&PE should register in SIGMA VSS.
SIGMA VSS – New Bid Posting System!, cont.
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• Training tools available on the website • Questions:
• Email: [email protected] • Phone: 888-734-9749
SIGMA VSS – New Bid Posting System!, cont.
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SIGMA VSS – Welcome Page
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Pre-bid meetings• Some are mandatory: attendance is required to bid
Follow the solicitation’s communication rulesQuestion-and-answer period
• Email the buyer by the Q&A deadline specified• Q&A addendum may revise solicitation requirements
Submit a complete bid proposal• Respond to all bid details• Submit on time
Bid Process
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Bid Evaluation• Evaluation scoring criteria identified in solicitation document• Bids can be evaluated by analyst/specialist and subject matter
expert or Joint Evaluation Committee (JEC)• Written portion of bid scored on 100-point scale; 80 points is
generally passing but there are exceptionsAward based on best value, not always lowest priceAward recommendation posted
Bid Process, cont.
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• Meet in person or via phone• Review Evaluation Synopsis in advance• Analyst/specialist will identify areas where bid response did and did
not meet requirements.
Debrief
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Service Disabled Veteran-Owned Business• 10% price preference
Community Rehabilitation Organizations• Nonprofit charitable organization or institution that operates for the
purpose of carrying out a recognized program of employment and training services for people with disabilities
• CROs may request that contracts be set aside
State Purchasing Preferences
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All Things Being Equal• Michigan preference• Clean Corporate Citizens preference• Bio-based products sourced in Michigan preference
State Purchasing Preferences, cont.
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• Enables local units of government to purchase from state contracts• Cities• Townships• Villages• Counties• Schools• Universities• Colleges• Nonprofit Hospitals
MiDEAL Extended Purchasing Program
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You MUST have a State of Michigan contract to have a MiDEAL contract.
MiDEAL Extended Purchasing Program, cont.
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Procurement Technical Assistance Centers (PTAC)www.ptacsofmichigan.org
Small Business Administration (SBA)www.sba.gov
Small Business Development Centers (SBDC)www.sbdcmichigan.org
Vet Biz Centralwww.vetbizcentral.org
National Veterans Business Development Councilwww.nvbdc.org
Michigan Business Resources
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Purchasing Office• DTMB Central Procurement = IT, Commodities, Services• State Agencies• Real Estate, Design & Construction, & MDOT
Opportunities & Research• www.michigan.gov/sigmavss • DTMB Contract List• Debrief
Checklist
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State of Michigan Procurement Website
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Connect with Procurement
Join our email list:www.michigan.gov/micontractconnect
Follow us on Twitter@Miprocurement#MIcontracts
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State Procurement Office ContactsDTMB Design and ConstructionPatrick Mullen, Purchasing Executive/Department ManagerPhone: 517-284-7910Email: [email protected]
DTMB Real EstatePhone: 517-335-6877Email: [email protected]
DTMB Central ProcurementSee the list at:www.michigan.gov/micontractconnect> Contact Us
Michigan Department of Transportation (MDOT) Disadvantaged Business EnterpriseLisa Thompson, DBE Program AdministratorPhone: 517-373-2377Email: [email protected]
Michigan State Industries (MSI)Cathy Carr, BuyerPhone: 517-241 6291Email: [email protected]
Other State AgenciesSee the list at www.michigan.gov/micontractconnect> Contact Us
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State Procurement Office Contactswww.michigan.gov/miprocurement
Craig TerrillCommunications RepresentativeState of Michigan [email protected]
