Transcript Document

Integrated Service Center (ISC)
Webcast
PROCUREMENT:
Best Practices
for Purchasing
Goods & Services
September, 2009
1
Agenda
1. Standard Operating Procedures
2. Contracted Purchases
3. Non-Contracted Purchases
4. Small Item Payment Process (SIPP)
5. Procurement Card (P-Card)
6. Certification of Delivery
7. Travel Reimbursement (TRAC)
8. Inventory Guidelines
9. Deadlines and Reminders
2
Standard Operating Procedures (SOP)
The Division of Financial Operations (DFO) maintains the following website:
http://dfoapps.nycenet.edu/SOP/Default.aspx
Click on SOP Chapters for Detailed Procedures
•SOP includes rules and regulations governing OTPS expenditures;
guidelines are designed to yield maximum value for each dollar spent.
•All equipment, supplies, and services purchased with NYCDOE funds
must serve the DOE’s educational and/or administrative programs while
complying with legal bidding and administrative contractual requirements.
3
Summarized Highlights of the SOP
•There must be sufficient funds in the spending plan in order to procure
goods or services.
•Under no circumstances should goods be ordered or services begin
prior to generating a fully approved purchase order.
•Schools must have an initiator (Secretary or School Aide) and an
approver (Principal, APO or School Business Manager) to process
purchase orders.
Don’t Forget: An Initiator CANNOT be an Approver!
4
Summarized Highlights of the SOP
(continued)
•
Schools should purchase contracted goods and services from an
established DOE contracted vendor.
•
All purchases from non-contracted vendors must be in strict compliance
with open competitive bidding rules.
•
Sole Source is not a determination of the vendor. Sole Source
must be researched by the School Purchasing Liaison to ascertain that
there is no equivalent product that can be provided by another vendor.
5
Summarized Highlights of the SOP
(continued)
•
All goods and services must be delivered by June 30th. Back orders
are not allowable. Any goods received and accepted after June 30th
will be charged against the school’s next fiscal year budget.
•
Schools must maintain original documentation to support all
purchases; i.e. original signed and dated purchase order, packing
slip. If it is a non-contracted order you must retain three (3) bids or
approved sole source letters.
6
FAMIS Portal
http://schools.nyc.gov/offices/DCP/MostPopularClicks/launch.html
7
Contracted Purchase via FAMIS Portal
•
E-Catalog is the on-line system used to place orders with contracted
vendors.
Use the E-Catalog to order:
a. Textbooks and trade books
b. Computer Software (instructional and administrative)
c. Audio Visual Media (videos, DVDs, audio CDs and cassettes)
d. Supplies and Instructional Materials
e. Wireless Services including new phones, phone plans, and
replacement equipment
f. Coach Buses
g. Internal Services (Professional Development provided by the
Department of Education)
h. Leadership Academy
i. Computer Hardware & Consumer Electronics (computers &
equipment)
8
FAMIS Demonstration
Click on “Purchasing”
9
FAMIS Demonstration – continue
Click on Contracted
10
FAMIS Demonstration – continue
Click on Contracted
Click on E-Catalog
11
FAMIS Demonstration – New category
Click on Computer Hardware &
Consumer Electronics
12
FAMIS Demonstration – to Search items
Click here to do
search
13
FAMIS Demonstration – Key Search Item Description
14
Other Contracted Purchasing Options
•Non-List:
•Create a purchase order with a contracted vendor for contracted items
not available in the E-Catalog. This includes used textbooks, sheet
music, magazine subscriptions, libraries, listing applications and more.
•Professional Services:
•Create a purchase order for contracted professional services (i.e.
professional development, curriculum development, evaluation services,
student support services, counseling services).
•Listing Applications:
•For the designated procurements of published or copyrighted materials,
artistic performance of specific artists or groups, payment of admission
fees to cultural institutions and other such programs.
15
Contracted vs. Non-Contracted
Contracted
•Free Delivery
•Delivery into the school
•Product is insured
•Damaged items are replaced
•Less paperwork
Non-Contracted
•Must submit bids prior to payment
•Pay for delivery
•Delivery into schools additional charge
•Goods are not insured
•Additional paperwork
•Delivery time not guaranteed
16
Shop DOE (ShopDOE.com)
•ShopDOE.com allows users to find items on the E-Catalog
•You can enter the site by entering your business or personal email address.
•Features and Benefits:
- Ability to sort by Item #, Description and Price
- Vendor Contact Information
- Create an E-Shopping cart by clicking on ‘Add to Cart’ on
the search screen
- Print the results of any selected search criteria
- View items in your E-Shopping Cart by clicking on “View
Cart” or “Proceed to Checkout”.
- Print a list of the items in your E-shopping cart.
17
https://dfoforms.nycenet.edu/ecatalog/Logon.aspx
18
Non-Contracted Purchases
• Goods or Services obtained from a Vendor without a DOE
Contract are non-contracted purchases
• Creation of a Purchase Order for a non-contracted vendor is
done through:
 The Bidding Process
 Sole Source
 Open Market Agreements
 Exceptions
• Whenever possible, goods and services should be obtained by
DOE contracted vendors
19
Guidelines & Thresholds for
Non-Contracted Purchases: Commodities
•No bids are required up to $250
•Three telephone bids are required for purchases greater than $250
•Three written bids are required for purchases $5,001 to $15,000
•An Open Market Agreement is required for purchases $15,001 to
$100,000
•For purchases from $100,001 the school or ISC must request DCP to
assist in the preparation and execution of a Request for Bid (RFB) or
•For Sole Source or Exception over $100,001 the ISC, on behalf of the
school, must submit an exception to the Committee on Contracts
For required bid forms see:
http://schools.nyc.gov/Offices/DFO/MostPopularClicks/SOPForms.htm
20
Guidelines & Thresholds for
Non-Contracted Purchases:
Professional Services
•For services less than $25,000 Schools must obtain quotes from
three (3) vendors
•For services from $25,001 to $100,000, a request must be made to
the Division of Contracts & Purchasing (DCP) so that DCP can
conduct either an Informal Solicitation Request (ISR,) Sole Source or
Exception to Bid
•For services exceeding $100,000, the ISC must request for DCP to
assist in the preparation & execution of a Request for Proposal (RFP,)
Sole Source or Exception to Bid, after which the ISC must submit an
Exception to the Committee on Contracts
21
Telephone
Bid Summary
Form
Used for
non-contracted purchases
$250 - $5,000
http://schools.nyc.gov/NR/rdonlyres/B
60203FD-994F-4F01-842908E3B9C7FDF2/0/otpsxA.pdf
22
Written Bid
Summary Form
Used for
non-contracted purchases
$5001 - $15,000
Submitted along with the written
bids from the vendors
http://schools.nyc.gov/NR/rdonlyres/3C62
28F2-51D8-4BF5-BFF965209A809E27/0/WrittenBidSummaryForm
.pdf
23
FAMIS Demonstration – Non-Contracted 3-Bids
NEW
24
FAMIS Demonstration –
Non-Contracted 3-Bids (NEW)
25
Establishing a Vendor
as a Sole Source
•A vendor, who for very specific reasons, is identified as the only
feasible source for obtaining certain services or items and therefore
may be exempt from the competitive bidding process.
•Evidence that no other service provider offers substantially
equivalent or similar benefits & the cost of services is reasonable.
•Documented evidence that there is no other possibility of
competition for the procurement of the item.
•Use of copyrighted materials, organizational membership fees,
postage, tickets, administrative fees, conference by non-NYC DOE
organizations.
•Sole Source is not a determination of the vendor. Sole Source
must be researched by the DOE/ISC Staff to ascertain that there is
no equivalent product that can be provided by a contracted vendor.
26
Exceptions to the Bidding Process
•On rare occasions, the Department of Contracts and Purchasing
(DCP) will grant an exception to the bidding process
•To determine if your school’s special circumstances qualify for the
exception, the school must provide a written justification which
includes:
• An explanation of why the services cannot be economically
procured through the competitive process
• The purpose and nature of the services including which specific
Chancellor’s Goals or Initiatives will be addressed
• the period time the request covers
• A detailed cost breakdown of the services and an explanation of
why the prices are fair & reasonable
• Assurance that the vendor has given “best pricing” by
specifying prices paid elsewhere and/or cost of alternatives
•When a vendor is named in a competitive grant and is a key
component of receiving the grant award, further solicitation is not
necessary
27
The FAMIS Portal Approval Path
for Non-Contracted Purchases
•$0 - $5,000 requires Principal Approval only
•$5,000 - $25,000 requires Principal and ISC Approval
• School must provide all documentation to the ISC before the
document will be approved in the FAMIS Portal
•$25,000 - $100,000 requires approval of the Executive Director,
Division of Contracts and Purchasing (DCP)
•$100,000 and above requires review and approval by Committee on
Contracts
28
Reminders for Non-Contracted Purchases
•Not all registered vendors have a contract with the DOE (a “vendor ID”
is not the same as a contract number!)
•All purchases from non-contracted vendors must be in strict
compliance with open competitive bidding rules
•It is inappropriate and a violation of standard operating procedures for
vendors to obtain bids from competing vendors
•It is inappropriate and a violation of standard operating procedures to
split orders with a single vendor or among vendors to avoid bidding
requirements
•Use of non-contracted vendors is strongly discouraged unless
extenuating or sole source circumstances exist
•If you have a valid sole source or exception, you should allow three
months for processing in order to fulfill all requirements and encumber
the order in advance of your planned start date
A Purchase Order must be created before goods or services are
received
29
SIPP: The Small Item Payment Process
Typical Uses for SIPP
•Reimbursement to employees for approved car fare
•Payment of stipends to the SLT (School Leadership Team members)
•Payment of stipends to Parents or Students
•Payment for food & refreshment expenses at meetings when the
vendors do not accept a DOE Procurement Card
Important to Remember
•With few exceptions, these expenditures must be less than $500.
•Purchases exceeding $250 require adherence to SOP Guidelines that
cover bidding
30
SIPP: The Small Item Payment Process
General Guidelines
•SIPP is generally used for SLT Stipends, postage, tuition reimbursement,
small emergency purchases
•Schools are authorized to enter payments up to $2,500
•Payments of $500 or less will be posted directly to FAMIS at the site
•Payments from $501 to $2,500 will be electronically sent to the ISC for
approval
•A purchase up to $250 does not require bids
•From $250.01 to $500 bids are required for each transaction
• ALL supporting documentation must be retained at the school level
• Copies of supporting documentation must be forward to your ISC for
approval
•Bill Splitting is prohibited
31
SIPP: The Small Item Payment Process
What you can’t use SIPP for:
• Reimbursement should not be paid to the general
school fund
•New York Sales tax should not be paid and is not
reimbursed
•Consultants (object codes 685 & 689) can not be paid
with a SIPP
32
Tax Exempt
Form
http://schools.nyc.gov/NR/rdonlyres/66D2
8ED7-7F53-4911-9EB0ACDEFC966CA9/0/otpsxb.pdf
33
What A Recipient Needs to
Receive Reimbursement via SIPP
•Vendors receiving payments that do not exceed $2,500 need a valid
FAMIS vendor number. This means the vendor must be activated in the
FAMIS VENDOR FILE before a payment request can be processed.
•Vendors NOT listed in the FAMIS Vendor File, must submit a W-9 form to
the Division of Contracts and Purchasing (DCP).
•This form can now be completed and submitted online at the following
location:http://www.nycboe.net/dfop/tracker/w9/
•Employees require a valid 7-digit Employee Reference Number (a look-up
by name is provided) allowing for the name and address of the payee to be
retrieved from the DOE Employee table
•For Parents or Students you must fill in the information requested
34
Principals Only:
The Electronic Approval Process
•
For reimbursements of $500 or less: Before payment is posted by
the Principal, an electronic approval request will be generated and
automatically sent to the respective Superintendent for approval.
•
For reimbursements above $500: Before payment is posted by the
ISC, an electronic approval request will be generated and
automatically sent to the respective Superintendent for approval.
•
The FAMIS approval screen uses color indicators to display the
status of a Principal’s SIPP and will only allow payment to be posted
upon approval.
Yellow: indicates Pending Superintendent’s approval
Red:
indicates Rejected
Green: indicates approved & sent for FAMIS processing
•
The appropriate action taken by the Superintendent will
automatically be emailed to the Principal, and populated in the
FAMIS/Portal approval screen.
35
Procurement Card (P-Card)
•P-Cards are used most commonly for incidental school supplies,
postage, event admissions and food
•P-Cards are useful for emergency purchases, within guidelines
•Most find P-Cards easier than processing a SIPP
•The transactional cost to the DOE is far less when you use P-Cards
than when you process a SIPP
36
Important Things to Know about
Creating and Using a P-Card
•The maximum balance permitted on a P-Card is $15,000
•No single transaction can exceed $2,500
•A P-Card is subject to the same SOP guidelines as other purchases,
including the need for telephone bids for purchases exceeding $250
•Creation of, as well as increases and decreases to your P-Card are
processed through the FAMIS Portal
•When planning to increase your P-Card, keep in mind that purchases
take up to two weeks to post; this means that a recent purchase may
not be deducted from your available balance, and the increase will be
limited
37
Documenting and Certifying
P-Card Transactions
•All original receipts and required paperwork must be kept on file at the
school
•A P-Card Usage Log is required
•DFO makes transaction activity available through an Expense Reporting
and Certification Screen
•The cardholder or authorized designees are required to indicate the
appropriate expense type (e.g., supplies, parking & postage) for each
transaction
• This is necessary because P-Card encumbrances are made to a
single object code
•The cardholder’s certification of expenses becomes an authorization and
approval to realign the object code where the expense was made, which is
required of the DOE by the City Comptroller
38
P-Card Usage Log
After every purchase, complete a
usage log like the one at left in order
to keep track of the P-Card balance.
The sample log can be found by following this URL:
http://schools.nyc.gov/NR/rdonlyres/7C246CADB65D-445B-8D33-377F485A2135/0/otpsxK.pdf
39
Expense Reporting and Certification
Procurement Card Expense Reporting and Certification can be
located through the Division of Financial Operations page (DFO)
http://schools.nyc.gov/Offices/DFO/News/PCard+Expense+Reporting+Certification.htm
40
Certification of Delivery
•Certification of Delivery is the process by which schools must declare
receipt of goods or services
•Immediately upon receipt of the goods or services ordered, verify
consistency with original order
•If all goods or services have been delivered satisfactorily, a copy of the
order is to be signed and dated by a school official to certify delivery
> To establish internal controls, this person should be different from
the person who initiated or prepared the order
•Retain the record of certification of delivery, along with all packing slips
and other vendor documents included in the package, on file at the
school attached to the original Purchase Order
•Certify On-Line in the FAMIS Portal
All goods and services must be received by June 30th!
Anything received after June 30th is considered a purchase in the following
fiscal year, and must be paid with funds from that fiscal year.
41
Guide to On-Line Certification
http://schools.nyc.gov/NR/rdonlyres/0BA93FB1-8859-422B
9093344964B31B59/0/userguidecertification.pdf
42
TRAC: Travel Reimbursement
Approval Certification
•TRAC is the electronic form now used to:
Receive Reimbursement for Local Travel
Request Approval for Out of Town Travel
Receive Reimbursement for Out of Town Travel
•TRAC can be accessed via FAMIS Portal
Select “Miscellaneous”
Then select “TRAC”
•TRAC can also be accessed via this link:
https://dfoforms.nycenet.edu/trac
43
TRAC On-Line Guide
Can be accessed by following this link:
http://schools.nyc.gov/NR/rdonlyres/D4315AC3-389C-4A4880B2A780E6B5B3B5/0/TRACGuide.pdf
44
ISC Professional Development page
http://www.learningtimes.net/iscwebcasts
45
Inventory Guidelines
• Each Principal is responsible for maintaining and updating the inventory
records for his or her school.
• All equipment, textbooks, computer software and educational and
administrative supplies stored in large quantities, should be inventoried
regardless of funding source.
•DELL maintains the inventory of all computer equipment in our
schools. A copy of the inventory can be obtained by calling 718-9354444.
• The annual updated inventory of equipment and large quantities of
unused supplies in storage must be completed on an annual basis no
later than April 15th.
46
Items for Physical Inventory
• Textbooks – For inventory purposes the term is used for all published
and copyrighted materials of an educational/instructional nature; it does
NOT include library books and books used for administrative, office, or
reference use.
• Equipment - Items which can be reused or which maintain their
character through use, and usually cost at least $5000. Other such
items, which may cost under $5,000 such as typewriters, video
cameras, TV sets, tape recorders, science lab equipment, musical
instruments, digital cameras, DVD players, etc. must also be
inventoried.
• Supplies - A supply item is any article which meets one or more of the
following conditions: (1) is consumed in use or loses its identity through
incorporation into a different unit or substance; (2) loses its shape or
appearance with use; and (3) is expendable i.e., it is less expensive to
replace than to repair.
47
Annual Inventory Statement
This form must be filed no
later than 30 days after
the physical inventory has
been taken.
http://dfoapps.nycenet.edu/
SOP/Default.aspx?c=1114
Select “Inventory” and then
“Annual Inventory
Statement”
48
DEADLINES & EXPENDITURE PLAN
Action
Item
Anticipated
DOE Deadline
NYS Funds: Textbooks, Library, Hardware, Software
ASAP
(Prior to Thanksgiving)
Budget modifications deadline
mid-March
FAMIS Purchasing –
Furniture, Computer Equipment and
Computer Security Devices
late March
FAMIS Purchasing –
All Other Good & Services, All Fund
Sources
mid-April
Annual Physical Inventory
April 15th
Balance on P-card = 0
June 30th
Delivery of Goods & Services
June 30th
Enter SIPP (Imprest Funds)
June 30th
Certify delivery on-line
Upon receipt –ongoing
49
Questions from the Live Audience
50
If you need assistance with any procurement
issue, please contact your
ISC Officer ,
ISC Representative
Or
Your CFN Support
Staff
51