Transcript Document

Know about the State’s
Purchasing Process
Statewide Historically Underutilized
Business Program
Texas Comptroller of Public Accounts
Agenda
• The State’s Procurement Process
• Boost Your Business Connections
• Marketing to State Entities
Statewide HUB Program’s Mission
The mission of the Statewide HUB Program is
to facilitate the use of HUBs in state
procurement, and to effectively provide
information on the state's procurement
process to minority and woman-owned
businesses.
The State’s Procurement
Process
From a Purchaser's View
Purchasing Enabling Legislation
• Texas Government Code, Title 10
– Chapter 403 - Comptroller of Public
Accounts
– Chapter 2155 - Purchasing: General
Rules and Procedures
– Chapter 2156 - Purchasing Methods
– Chapter 2157 - Purchasing: Purchase of
Automated Information Systems
– Chapter 2158 Purchasing: Miscellaneous
Provisions for Purchase of Certain Goods
and Services
– Chapter 2161 Historically Underutilized
Business
The State of Texas
Procurement Cycle
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Need Defined
Procurement Method Selected
Solicitation
Receipt of Bids
Evaluation and Award
Inspection and Acceptance
Contract Administration
Payment
Disposal of Property
Competitive Bidding vs.
Negotiation
• Texas Government Code stipulates that
agencies purchase or contract for goods and
services through competitive bidding whenever
possible.
• Negotiation of contracts is permitted for:
– Emergency purchaser when there is insufficient
time to solicit bids;
– Proprietary purchases or purchases of items for
which there is only one source of supply;
– Purchases by means of competitive sealed
proposals; and
– Proposed purchases in circumstances where
competitive specifications have been advertised
by only one acceptable bid, or no acceptable
bids are received; provided, however, such
negotiation may not result in a material change
to the advertised specifications.
Need Defined
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End user (employee) will identify
a need and communicate the
need to a purchaser
A specification is developed
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Best Value Criteria is set
Procurement Method Selected
• Texas Procurement and Support
Services (TPASS)
• Department of Information Resources
(DIR)
• Mandatory Source Procurement (Set
Aside Programs)
• Delegated Authority
Texas Procurement and Support
Services
• Term Contracts
• Open Market Solicitations
• Texas Multiple Award Schedule
(TXMAS)
Term Contracts
• Term contracts are established as a
supply source for state agencies,
institutions of higher education, and
cooperative purchasing members.
• Contracts are competitively bid and based
on estimated quantities, and upon
historical usage data.
• NIGP codes identify goods and services to
be contracted.
• State agencies are required to use TPASS
Term Contracts.
Open Market Purchases
• TPASS conducts open market Invitation for
Bids for commodities over $25,000 that are
not available on term contract or TXMAS.
– Example: school buses
• View a list of recent Open Market awards
on the Electronic State Business Daily or at:
http://www.window.state.tx.us/procurement/
reqs/
Texas Multiple Award Schedule
(TXMAS)
• Established in 2002 as an alternative
purchasing method utilizing contracts
competitively awarded by federal or state
entities. TX Gov’t Code §2155.502.
 Previously awarded competitive contracts of
the federal government and governmental
entities of other states.
 TXMAS contracts have 17 pages of Terms
and Conditions which supplement the GSA
contract Terms and Conditions
 Potential customers can go to the TXMAS
site and search for a variety of products and
services.
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Statewide Procurement
Information Technology
• State agencies purchased informational
technology commodities and services through
the Department of Information Resources
(DIR), with few exceptions.
• Commodities include commercial software,
hardware technology services, including seat
management.
• Bid opportunities over $25,000 visit the
Electronic State Business Daily
http://esbd.cpa.state.tx.us/
• Vendors seeking bid opportunities under
$25,000 should visit DIR at
www.dir.state.tx.us
Mandatory Source Procurement
(Set Aside Programs)
The state is able to purchase from these two
sources through non-competitive basis
• The Texas Council on Purchasing from
People with Disabilities (TCPPD)
coordinators the state’s use to purchase
from persons with disabilities
– Texas Industries for the Blind and
Handicapped (TIBH)
• Texas Correctional Industries (TCI)
– A division of the Texas Department of
Criminal Justice (TDCJ)
Delegated Authority
The authority to purchase is delegated
to state agencies by the CPA as
allowed by state statutes and CPA
Rules. Agencies are delegated the
authority to purchase:
– Commodities up to $25,000
– Services up to $100,000
Delegated Authority
Also delegated to state agencies are:
• Direct publication purchases;
• Perishables (food-related) purchases;
• Distributor purchases;
• Fuel, oil and grease purchases; and
• Emergency purchases.
Solicitation
• Procurement Thresholds
• Solicitation Documents
• Electronic State Business
Daily (ESBD)
Procurement Thresholds
• Non Competitive - up to $5,000
– Solicitations are not required
• Informal Solicitations - $5,000.01 to
$25,000
– Solicitations may be requested by
phone, fax or email to:
1) Minimum of three vendors (two must
be HUBs) and
2) Registered on the Centralized
Master Bidders List (CMBL).
• Formal Solicitations - Over $25,000
– Have terms/conditions,
– Indicate opening time and place,
– Notifications are sent to CMBL vendors,
and
– Posted on the Electronic State Business
Daily (ESBD).
Solicitation Documents
• Invitation for Bid (IFB)
• Request for Qualification (RFQ)
• Request for Proposal (RFP)
Solicitation Documents
• Invitation for Bids (IFB)
Generally, this procurement method is used to
procure commodities when there are clear
specifications and sufficient competition in the
marketplace. State agencies are delegated
the authority to procure commodity items up
to $25,000.
• Request for Proposals (RFP)
Generally used to procure complex
commodities and services when competitive
sealed bidding and informal competitive
bidding are not practical or advantageous to
the state. State agencies are delegated the
authority to procure services up to $100,000.
What is an RFP?
The RFP is the basis for the resulting
contract and is used to:
1. Invite formal proposals from
prospective vendors and provide
them with the requirements that
must be met in order for their
proposal to be accepted.
2. Explicitly define the responsibilities
of both the vendor and the ordering
entity.
3. Provide vendors with organized and
explicit evaluation criteria that the
ordering entity will use to evaluate
the proposal.
Statement of Work
• The purpose of the SOW is to provide
vendors with a clear, accurate, and
complete understanding of the work to
be performed.
• One example of a standardize format
– Introduction
– Scope
– Service Requirements
• Agency
• Contractor
• Subcontractors
– Performance Measures
• Sampling
• Inspection & Testing Procedures
• Delivery Requirements
Proposal Requirements
• Due date for Proposals
Respondent shall submit the proposal no
later than the date and time indicated in
the solicitation. The entity will accurately
time stamp the proposal upon receipt.
• Calendar of Events
Event
Pre-Proposal Conference
Deadline for Submitting Questions
Official Response to Questions
Posted on the ESBD
Proposal Opening Date and Time
Vendor Discussions
Expected Award of Contract
Date
Proposal Requirements
• Point of Contact
Respondent shall direct all inquiries
and communications concerning this
RFP to the Point of Contact that is
listed. Exceptions:
1. Personnel permitted by the point
of contact
2. The individual designated to
answer questions regarding
proper submission of the HUB
Subcontracting Plan (HSP)
Proposal Requirements
• Pre-Proposal Conference
The pre-proposal conference allows
respondents opportunities to ask the
entity questions and/or clarify
provisions of the RFP. An entity may
require mandatory attendance for all
respondents.
• Attachments Included with the RFP
– Execution of Proposal and
Assurances (with Certification)
– HUB Subcontracting Plan
– Respondent Information Form
– Pricing sheets and any other
attachments
Proposal Requirements
• Evaluation and Award of Contract
The entity shall award a Contract(s) to
the respondent(s) whose proposal is
considered to be the best value to the
state as defined in §2155.074. Gov’t
Code.
1 Price, Total Cost of Ownership
40%
2 Compliance with Specifications,
Quality, Reliability, Characteristics to
meet stated or implied needs
25%
3 Delivery Time Frame
15%
4 Indicators of probable performance
under contract
10%
5 Other relevant factors
10%
Total
100
Proposal Requirements
• Submitting the Proposal
– The Proposal shall titled “Proposal
Submitted for RFP [#]” and shall
clearly state the Proposal Opening
Date and Time identified in the
Calendar of Events.
– The Proposal may be submitted in the
manner identified in the solicitation
• U.S Mail
• Hand Delivery
• Overnight/Express Mail
The RFP Process
• Submitting Questions about the RFP
– Respondents will have until the
deadline identified in the Calendar of
Events to submit all questions in
writing to the point of contact
– Questions should include to the
highest degree possible, cite the
specific RFP section to which the
question refers.
– At the discretion of the entity, the
answers may be posted in question
and answer document posted on the
ESBD.
– Only answers provided in writing by
that entity shall be considered official
The RFP Process
• Testing and Inspection
The entity may test and inspect goods
and services purchased under the
Contract to ensure compliance with
the specifications of the RFP and
contract.
• Accuracy of the Proposal
The Respondent’s Proposal shall be
true and correct and shall contain no
cause for claim of omission or error.
Proposals may be withdrawn in writing
at any time prior to the submittal
deadline.
• Cost of Submitting the Proposal
The Respondent is responsible for any
expense related to the preparation
and submission of the Proposal.
The RFP Process
• Public Information Act Disclosures
– The State is subject to the Texas Public
Information Act (PIA), Chapter 552, Gov’t
Code.
– The Proposal and other information
submitted to the CPA by the Respondent
are subject to release as public information.
– If it is necessary for the Respondent to
include proprietary or otherwise confidential
information in its Proposal or other
submitted information, the Respondent
must clearly label that proprietary or
confidential information and identify the
specific exception to disclosure in the PIA.
– Finial determination lies with the Office of
the Attorney General.
The RFP Process
• Organization of the Proposal
– The Proposal shall include all
information required in the RFP and
the format described.
– The Respondent shall be as precise,
accurate, and succinct as possible.
– The Respondent shall provide
detailed descriptions of how they will
fulfill each requirement.
The RFP Process
• Organization of the Proposal
– Tab 1: The Transmittal Letter
A Transmittal letter identifying the
responding company and point of contact.
– Tab 2: Statement of Meeting Requirements
A statement on how the Proposal meets or
exceed the requirements of the RFP.
– Tab 3: Mandatory Pricing Sheet
The Completed Pricing Sheet identified
within the RFP.
– Tab 4: Assumptions and Exceptions
Clearly state any assumptions that is made
in the Proposal. Also, clearly identify any
exceptions the Proposal makes to the
specific provisions of the RFP.
The RFP Process
Organization of the Proposal
– Tab 5: Respondent’s Background
The Respondent provides a brief description
of its history and accomplishments.
– Tab 6: The Conflict of Interest Disclosure
The Respondent identifies all relationship that
might be a conflict of interest or cause an
appearance of a conflict of interest.
– Tab 7: Sample Sales Report
The Respondent is to include a sample sales
report to demonstrate its ability to comply with
the RFP.
– Tab 8: HUB Subcontracting Plan (HSP)
The Respondent will fill out the HSP and
submit it with their Proposal in order for the
Proposal to be consider responsive.
Addendums
• Should an addition or correction
become necessary after a solicitation is
issued, the entity will create an
addendum relating the necessary
information.
• The addendum will be posted on the
ESBD.
• Bidders are required to acknowledge
the addendum by returning it with the
bid or by physically noting the change
or addition on the bid.
HUB Subcontracting Plan (HSP)
• State agencies and universities must
determine if subcontracting opportunities
are probable on solicitations of $100,000 or
more
• If subcontracting opportunities are
probable, agency will list the probable
subcontracting opportunities and require an
HSP
• HSPs are required to be submitted at the
same time as the response
Completing the HSP
• All respondents (HUBs and Non-HUBs) to the
solicitation must complete an HSP if required
• For each subcontracting opportunity not selfperformed by the respondent, the respondent
is required to provide written notification of the
subcontracting opportunity to at least three
(3) HUBs and allow the HUBs no less than
five (5) working days to respond
• Respondent must provide written notification
of their subcontracting opportunities to a
minority or women trade organization or
development center, at least five (5) working
days prior to submitting their bid offer
• For more information on completing the HSP,
view the online training module at
Texas4Hubs.org
Receipt of Bids
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Important Factors
Informal Bids
Formal Bids
Receiving Proposals
Important Factors
• Timeliness
– Late bids will not be considered
• Completeness
– Everything indicated in the solicitation
must be included in the response
Informal Bids
• Applies to purchases valued $5,000 to
$25,000
• Taken via telephone, in person, via fax,
direct mail, or email
• Should be requested from each vendor
identified during the solicitation
processes
Formal Bids
• Apply to purchases greater than
$25,000
• May be received via hand delivery,
mail or fax
• Bidders may withdraw bids by written
request any time prior to the bid
opening date and hour
Receiving Proposals
• Acceptance of proposals shall end on
the date and time specified in the RFP
Evaluation and Award
• The Best Value
• The Responsive and
Responsible Bidder
The Best Value
• All factors used in determining “best
value” purchases must be advertised
in the solicitation
The Responsive and Responsible
Bidder
• Responsive Bidder
– A person who has submitted a bid which
conforms in all substantive respects to the
Invitation for Bid including the
specifications set forth in the IFB
• Responsible
– A person who has the capability, integrity,
and reliability in all respects to perform the
contract requirements which will assure
good faith performance
Inspection and Acceptance
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Agency Responsibility
TPASS Authority
Agency Responsibility
Delivery does not constitute acceptance.
Agencies will inspect all shipments received
against orders and report to the vendor and
TPASS (if the order was issued by TPASS)
• Damage
– Minor and Severe
– Concealed Damage - If at time of receipt
the agency does not detect the damage,
the agency must notify the vendor and
the carrier in writing via mail, email, or
fax within 15 days
• Discrepancies
TPASS Authority –
Vendor Relations Program
• May perform periodic, random and/or
unannounced inspection of goods and
services purchased by the state
• Investigates agency complaints on
vendors
Contract Administration
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Notice of Award
Back Orders
Substitutions
Loss or Damage in
transit/freight
Delivery Time
Cancellation
Authorized relief from
performance
Cancellation of contract
Damages for failure to perform
Vendor Performance Program
Debarment
Vendor Performance Tracking
System
The purpose of the Vendor
Performance Tracking System is to:
• Identify vendors that have exceptional
performance.
• Aid purchasers in making a best
value determination based on vendor
past performance.
• Protect the state from vendors with
unethical business practices.
• Provide performance scores in four
measurable categories.
• Track vendor performance for
delegated and exempt purchases.
Vendor Performance Tracking
System
Vendors performance scores ranging
from 0 to 100% are broken into four
categories:
1. Commodity delivery
2. Service delivery
3. Commodity performance
4. Service performance
The scoring system begins to actively tally the
score after 10 purchase orders. Scores over
two years old are not used in calculations.
Each purchase order without a complaint
provides a positive score of 100% for that
vendor. Each negative VPF counts as a 0 in
the corresponding category. The scores are
averaged for each category.
Payment
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Vendor Invoices
Method of Payments
Vendor “On Hold”
Vendor Invoices
• To receive payment, vendor must
submit an invoice to the state
agency receiving the goods or
services. The invoice should include,
but is not limited to:
– The vendor contact information,
including person designated by the
vendor to answer questions regarding
the invoice
– The state agency’s contact information
– Valid Texas Identification Number (TIN)
issued by the CPA
– A description of the goods or services
– Other relevant information supporting
and explaining the payment requested
Method of Payment
Payments for merchandise purchased
with state appropriated funds will be
made either in the form of a warrant or
electronically (direct deposit) by the
CPA
• Payment by Warrant
– Similar to a personal check, includes
payee and payer information
• Payment by Direct Deposit
– Preferred method of payment
– Transmitted directly from CPA to the
vendor’s financial institution
Disposal of Property
The State of Texas is charged to
dispose property in the appropriate
manner
Questions
Boost Your Business
Connections
Electronic State Business Daily
(ESBD)
• State agencies are required to advertise
solicitations over $25,000 on the ESBD
• Posting Requirements
- 14 days - When all solicitation
documents are available on the ESBD
- 21 days – When all solicitation
documents are not available on the
ESBD (i.e. Blue Prints, Project
Manuals, etc.)
• Search for bid opportunities or awards by
– agency, requisition number, NIGP
code or by keyword
ESBD Can be search by
Newest postings and NIGP
Class and Item Number
Regardless of the search
option chosen this is how the
results will list.
This is the solicitation profile
Centralized Master Bidders List
(CMBL)
Centralized Master Bidders List
(CMBL)
Why Register?
– The CMBL is an automated registration
system used by state agencies. Once a
state entity has determine the need to
solicit vendors for commodities or
services they will develop a mailing list
from the CMBL to distribute notifications
of bid opportunities.
– Used by other purchasing entities (public
& private) as well as prime contractors.
Note: The CMBL is not an approved vendors list.
96 vendors found where class code (1) is '620', item code (1) is '79' or 'all', district flag
(1) is '14' or 'all' sorted by name. (Inactive vendors listed in italics)
57 vendors found where class code (1) is '620', item code (1) is '79' or 'all', district flag
(1) is '14' or 'all' sorted by name. (Inactive vendors listed in italics)
Centralized Master Bidders List
(CMBL)
How to Register!
• Annual registration/renewal fee is
$70.00 and may be paid on-line by
credit/debit card or check debit (US
addresses only).
• The profile may be printed after
entered online and mailed with a
check or money order (US dollars).
Mailed applications incur a longer
processing time.
Q&A
Marketing to State Entities
Agenda
• Research
– Internal
– The State
• The Pitch
– In Person
– Print Communication
• Track Your Outreach and Marketing
Efforts
• How to Download the HUB
Coordinators Contact List
Research – Internal
• Step 1
Take a honest look at your business
and clearly identify what your
business provide.
• Step 2
What are some alterative uses for the
product or service you provide.
Research – The State
• Step 1
– Read the Vendor Guide
• Step 2
– Search the HUB Report
Vendor Guide
The Comptroller’s Vendor Guide is
available online and helps vendors better
understand the state of Texas
purchasing process.
The HUB Report
• Provides Semi and Annual Report of
the expenditures of State Agencies
and Universities
• Assist to identify entities to target
marketing efforts
• Identify Potential Allies/Partners
Texas4Hubs.org
• On the left hand
side is a hyper
link for HUB
Reporting
On the right side is a
hyperlink for the latest HUB
Report. For this
demonstration we will look at
the FY 2008 semi-annual
report
The Executive Summary of
the Report provides a wealth
of information on the state’s
expenditures
The first chart provides the
Statewide Total Expenditures
for FY 2006 - 2008
The Executive Summary of
the Report provides a wealth
of information on the state’s
expenditures
This is the list of the state’s
four digit Object code that the
state uses to make payment.
Note: These are not Class and
Item Codes. For the
demonstration we will chose
7256
Architectural/Engineering
Note: These are
not Class and Item
Services.
Codes
The Pitch
• Be Confident
– Establish yourself as an authority in
your area
• Be Clear
– What are you able to provide
• Be Concise
– In one sentence, what do you
provide?
• Be Compelling
– What are some “Attention Getter”
words within your industry that you
are able to provide?
• Ex: Industry- Janitorial
“Attention Getter” Green Products
– Are there alterative uses
The Pitch – In Person
• You are a successful business 1st and
HUB Vendor 2nd
• Build a rapport with the entity’s
contact
• Have a Game Plan
– What are your main points about
your company
– What do you really want to know
from that representative
The Pitch - Print Communication
• Business Card
– Include an indicator of what your
business provide
– Include an email address
• Email
– Focus on one topic
– What action do you want them to
take?
– Is it error free?
• Mailings
Track Your Outreach and Marketing
Efforts
Agency
Name
Contract or
Important Dates,
e.g. contract
Spot Purchases
expiration
The State HUB Coordinators
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The HUB Coordinator is the HUB vendor’s
door into doing business with a state agency
or university
This page will provide general
description of an HUB
Coordinator. Below the first
paragraph is a hyperlink titled
“HUB Coordinator List”
This will provide a list of state
agencies and universities
Their profile will indicate the
contact information for
several positions, including
Agency Head.
If you scroll down you will
find the HUB Contacts
To download the complete
HUB Coordinator list, Choose
the hyperlink “Click here for
download versions
Choose the file hubcords.dat
From you browser choose
save as.
Save the document as an Text
File
Open an next excel document
and open the file you save.
Ensure you look in all files.
For step 1 of 3 of the Text
Import Wizard simply choose
next
For step 2 of 3, select the
comma field under delimiter
and then choose finish
This will provide a complete
database of the HUB
Coordinators and other
contacts.
State of Texas Cooperative
Purchasing Program
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CO-OP Program Overview
CO-OP Membership Eligibility
Marketing to CO-OP members
Accessing and Using the CO-OP
Member Lists
The State of Texas CO-OP Goal
To assist our over 1700 members in making
the most of their purchasing dollars by using
the State of Texas volume buying power.
State of Texas CO-OP History
• The CPA Cooperative Purchasing
Program was created in response to
legislation in 1979.
• Local Government Code 271.081-083
Section 271.083 (4)(b) states:
“A local government that purchases
an item under a state contract
satisfies any state law requiring local
governments to seek competitive
bids for the purchase of the item.”
CO-OP Membership Eligibility
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Cities
Counties
School Districts
Community Colleges
Political Subdivisions (water districts,
utility districts, etc.)
• MHMR Community Centers
• Assistance Organizations
Marketing to CO-OP Members
Suggested marketing tactics:
• Let CO-OP members know if you
have a current state contract
• Sort the list for your sales area to
conduct follow-up calls
• Send mailers or postcard
promotions
• Email new product/service
information
• Do NOT overload e-mail boxes
with promotions
Accessing and Using
CO-OP Member Lists
• View CO-OP member contact
information on-line at:
http://www.cpa.state.tx.us/procureme
nt/prog/coop/coopmemb/
• Search members by name or entity
type
• Excel and text files can be
downloaded to use for mailing lists
and email campaigns.
You can view an Alphabetical List or
download the complete list.
This is a list of Municipalities
in Alpha
This is an CO-OP contact
profile, with Agency #,
Contact, Address, Phone #,
Fax #, Email, Travel Eligible,
and Expiration Date
Questions