Prepared by Andrée M. Cohen, Purchasing Administrator

CITY OF NEW ORLEANS2012

PROCUREMENT & PURCHASING PROCESS TRAINING

CITY OF NEW ORLEANS2012

PROCUREMENT & PURCHASING PROCESS TRAINING

General Knowledge of City Charter Requirements, Laws, Executive Orders and Policy Guidance For The Procurement and Purchasing of Materials, Supplies, Equipment, Construction, Public Works, Professional Services, and Non-Professional Services

Step By Step Procedures

Ability to Properly Procure and Purchase Goods and Services Within This Framework

Understand The Risks of Improper Procurement and Purchasing

After The Fact is TOO LATE!

When In Doubt, ASK A Professional

COURSE OBJECTIVESCOURSE OBJECTIVES

PROCUREMENT PRACTICESPURCHASING ETHICS

PROCUREMENT PRACTICESPURCHASING ETHICS1. PROMOTE COMPETITION

2. OBTAIN MAXIMUM VALUE

3. AVOID UNETHICAL PRACTICES AND APPEARANCE

Practices In Relationships, Actions And Communications

☺Preclude From Showing Favoritism

☺Procure and Purchase without prejudice

☺Never solicit or accept gratuities or prejudicial discounts, favors or services from your present or potential contractors and suppliers

☺Refrain From Providing Preferential Treatment

PROCUREMENT (A Noun)

The METHOD Used TO OBTAIN Materials, Supplies, Equipment, Services Or Construction By Purchasing, Leasing, Exchange Or Otherwise

Procurement Methods include 1. Request for Proposals (RFP’s), 2. Request for Qualifications (RFQ’s), 3. Formal and Informal Invitations to Bid, etc.

PURCHASE (A Verb)

To PLACE AN ORDER By Paying Money Or Giving Other Valuable Consideration…after proper procurement

ALL PURCHASES…

MUST BE PROPERLY PROCUREDPRIOR TO SUBMITTING ORDERS OR MAKING PURCHASES

PROCUREMENT OR PURCHASING?PROCUREMENT OR PURCHASING?

REQUISITIONS AND PURCHASE ORDERSA REQUISITION IS A REQUEST TO SPEND BUDGETED FUNDS*

~Departments Enter Requisitions Into Financial Systems And MUST Provide Adequate Text

AFIN - EACH LINE MUST INCLUDE DESCRIPTIVE TEXT

BUYSPEED – CAPITAL PROJECTSLINE 1 = BASE BID DESCRIPTIONLINE 2 = ALTERNATE WITH COMPLETE DESCRIPTIONLINE 3 = ALTERNATE WITH COMPLETE DESCRIPTION, ETC.

ALL OTHER REQUISITIONS IN BUYSPEEDEACH LINE MUST PROVIDE DESCRIPTION OF ITEM OR SERVICE

~ Department Directors, Budget Office, Finance Approve

LINE ITEM DESCRIPTIONS CARRY OVER FROM AREQUISITION TO BIDS, PURCHASE ORDERS & CHANGE ORDERS

*Requisitions Encumber Funds in the City Financial Systems

LINE ITEM DESCRIPTIONSCARRY OVER FROM A

REQUISITION TO BIDS, PURCHASE ORDERS & CHANGE ORDERS

PURCHASE ORDERS

City of New Orleans Code of Ordinances, Part II, Chapter 70-420 and 421 - Movables.

Sec. 70-420. - Sale to city without purchase order forbiddenSec. 70-421. - Sales unauthorized and not to be paid.

IT IS THE LAW

A Purchase Order Is The Written AuthorityFOR DEPARTMENTS

VENDORS AND CONTRACTORSTo Order And Obtain Goods And Services

REQUISITION

PURCHASING AND ORDERING REQUIREMENTS

Purchase Order

INVITATION TO BID (AKA BID OR ITB)

FORMAL/INFORMAL

MOVABLES – SUCH AS EQUIPMENT, SUPPLIES, MATERIALS

NON-PROFESSIONAL SERVICES – JANITORIAL, MOVING SERVICES

PUBLIC WORKS/CONSTRUCTION

REQUEST FOR PROPOSALS (AKA RFP)

REQUEST FOR QUALIFICATIONS (AKA RFQ)

PROFESSIONAL SERVICES

NON-COMPETITIVE*

CHARTER DEFINES AS UNIQUE AND NON-COMPETITIVE

*NO MARKET EXISTS, NO FUNCTIONAL EQUAL – CHARTER DEFINES AS UNIQUE AND NON-COMPETITIVE

TYPES OF COMPETITIVE PROCUREMENTS

ALL PROCUREMENT OF Materials, Supplies, Equipment, Professional Services,Non-Professional Services,Construction,And Public Works

MUST BE SELECTED THROUGH A COMPETITIVE PROCESS

PROCUREMENT & PURCHASING CHARTER REQUIREMENTS

WHETHER BY Purchase, Lease, Exchange,Or Otherwise

CITY DEPARTMENTS, BOARDS, AGENCIES & COMMISSIONS

City Charter Section 6-308. Contracts.(5) (a) Except in the purchase of unique or noncompetitive articles, competitive bids shall be secured before any purchase, by contract or otherwise, is made or before any contract is awarded for construction, alteration, repair or maintenance or for the rendering of any services to the City, other than professional services, and the purchase shall be made from or the contract shall be awarded to the lowest responsible bidder after advertisement prescribed by ordinance or by applicable state or municipal law

$15,000 OR LESS MORE THAN $15,000

CONTRACT REQUIRED REQUIRED

LEGAL APPLICATIONS

EXEMPT FROM COMPETITION PER CITY

CHARTERCITY ORDINANCE SETS DOLLAR THRESHOLDS

CITY CHARTER, CITY ORDINANCE, EXECUTIVE

ORDER & POLICY

REQUEST FOR PROPOSALSREQUEST FOR QUALIFICATIONS

DOLLAR THRESHOLDS

RFPAUTHORIZATION

• Approval of Form of RFP by CPO Including Performance Measures

• Terms, Conditions, Insurance , DBE

• Funding Identified – Approved Requisition

• Office Of Inspector General Approval

RFPRELEASE

• RFP Released & Advertised

• RFP Selection Committee Assigned

• RFP Addenda Issued If Required

• Selection Committee Meeting Posted With Not Less Than 24 Hours Notice

• Selection Committee Meetings Are Public

RFPEVALUATION

• Proposals Are Distributed To Committee Members For Review And Individual Scoring

• Evaluation Committee May Short List Proposals Received

• Presentations By Proposers, If Requested

• Evaluation Committee Public Scoring

• Notification Of Results

CONTRACT

• Contract According to CAO Policy Memorandum 122(R)

• Department Provides a Link to the ECMS Contract

• Bureau of Purchasing Verifies Requisition to the Copy of Contract

• Purchase Order Issued

• Notice To Proceed Issued For Work To Begin

REQUEST FOR PROPOSAL (RFP) REQUEST FOR QUALIFICATIONS (RFQ)

PROCESS

LEGEND: Black Represents Department Responsibilities Red Represents Purchasing Bureau

REQUEST FOR PROFESSIONAL SERVICES

SOLICITATION BY RFP OR RFQREQUIRES APPROVAL

BY CHIEF PROCUREMENT OFFICER

MOVABLES & NON-PROFESSIONAL SERVICES

INFORMAL BID

LESS THAN $20K*

FORMAL BID

$20K & MORE

WRITTEN SPECIFICATION

REQUIRED REQUIRED

BID INVITATION & ADVERTISING

NOT REQUIRED REQUIRED

COMPETITIVE BIDSINFORMAL

ONLINE≥ 3 Phone, Fax or Email

REQUIREDFORMAL VIAPURCHASING

DOLLAR THRESHOLDSMOVABLES & NON-PROFESSIONAL SERVICES

INVITATIONS TO BID

*ONE-TIME NON-RECURRING PURCHASES OF $1,000 OR LESS ARE CONSIDERED NON-COMPETITIVE AND DO NOT REQUIRE BID PROCESS

REQUEST FOR MATERIALS, SUPPLIES, EQUIPMENT, NON-PROFESSIONAL

SERVICESSOLICITATION BY FORMAL ITB

INVITATION TO BID REQUIRES APPROVAL BY 1ST DEPUTY MAYOR AND IN SOME

CASESBY CHIEF PROCUREMENT OFFICER

MOVABLES & NON-PROFESSIONAL SERVICESBID PROCUREMENT AUTHORIZATION FORM

INFORMAL BIDS FOR MATERIALS, SUPPLIES, EQUIPMENT, AND NON-PROFESSIONAL SERVICES

INFORMAL BID QUOTE FORM

COMPLETE

Complete an Informal Bid Quote FormDetailed Written Work DescriptionObtain Not Less Than 3 Quotes Written Confirmation of All QuotesPost Requisition Quote Online (City Website), Email, Fax, TelephoneQuotes Received Online Via BuySpeed Do Not Require Written Confirmation.A ‘no bid’ response is considered a valid quote under $10k.

SELECTION

Vendor Quoting Lowest PriceException, With Justification and Purchasing Bureau Approval Attach Quotes and Signed Form & Submit to Your BuyerObtain a Purchase Order Prior to Ordering and Making PurchaseComplete Purchase by Approved Purchase OrderOrder and Make Purchase or Lease

INFORMAL BID PROCESS

FORMAL BID PROCESSMATERIALS, SUPPLIES, EQUIPMENT, NON-

PROFESSIONAL SERVICES

Determine Need Detailed Written Work Description Obtain CAO Bid Authorization Enter Requisition in AFIN/BuySpeed If Requisition in AFIN Enter 0 Requisition in BuySpeed for Conversion to Bid Submit to Purchasing

-Advertises & Releases Bid-Conducts Pre-Bid Meeting if Required-Conducts Public Bid Opening-Tabulates Bids-Determines Responsiveness-Makes Recommendation to Department

Determines Responsibility Recommendation to Purchasing

-Awards Bid-Issues Rejections/Cancellations

Contract According to CAO Policy Memorandum 122(R)

Department Provides a Link to the ECMS Contract

-Bureau of Purchasing Verifies Requisition to the Copy of Contract-Purchase Order Issued

Notice To Proceed Issued For Work To Begin

HOW TO $20,000 OR MORE SELECTION

Legend: Department Action -Purchasing Action

DIVISION OR SEPARATIONOF

ANY PROJECT OR PURCHASETO

AVOID PUBLIC BID LAWOR

CITY POLICYIS

PROHIBITED

ALL PROJECTS AND PURCHASES

CONSTRUCTION & PUBLIC WORKS

INCLUDES THE:

Operation Erection Construction Alteration Improvement Or Repair

Any Public Facility Or Immovable Property Owned, Used, Or Leased

LESS THAN $150,000INFORMAL BID

$150,000 OR MOREFORMAL BID

WRITTEN SPECIFICATION

REQUIRED REQUIRED

BID INVITATION ADVERTISING

INFORMAL REQUIRED ONLINE

REQUIRED FORMAL

COMPETITIVE BIDS REQUIREDREQUIRED

FORMAL VIAPURCHASING

BONDSINSURANCECONTRACTDBEOTHER

REQUIRED BASED UPON DOLLAR THRESHOLDS

REQUIRED

CONSTRUCTION & PUBLIC WORKSBID THRESHOLDS

CONSTRUCTION & PUBLIC WORKSBID PROCUREMENT AUTHORIZATION FORM

In order to receive payment from the City, Vendors must be registered in the City Financial Systems AND POSSESS AN AUTHORIZED PURCHASE ORDER.

1.AFIN registration by filling in AFIN Vendor Registration Form and submitting completed form to Purchasing

2.BUYSPEED provides Vendor registration online thru City website

INFORMATION AND INSTRUCTIONS:

CONTACT PURCHASING (504) 658-1550

VENDORS, REGISTRATION, PAYEE INFORMATION

AFIN VENDOR FORM

7. Department Receives Goods/Services8. Department Receipts Order in

BuySpeed or AFINi. Can Make Adjustments to Receipt

9. Provides to Accounts Payable For 3-Way Matchi. Purchase Orderii. Receipt of Goods and Servicesiii. Invoice

10.Vendor Paid

1. Determine Needi. Obtain Priceii. Ensure Available Funding

2. Enter Requisitioni. Director Approvalii. Budget Approvaliii. Finance Approval

3. Purchasing Receives Requisitioni. Ensures Properly Procuredii. Funding Available

4. Procurement Process5. Purchase Order Issued6. Department Places Order

PURCHASING PROCESS

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