PURCHASING THEORY WHAT S THERE TO TALK ABOUT? Toss Out the Lecture Making You Think and Share Thoughts Variety of Topics Actions Lead to Reaction

Transcription

1 PURCHASING THEORY 2018 AGENCY PURCHASING CONFERENCE

2 PURCHASING THEORY WHAT S THERE TO TALK ABOUT? Toss Out the Lecture Making You Think and Share Thoughts Variety of Topics Actions Lead to Reaction

3 HOW DID WE GET HERE? History of Procurement in West Virginia 1933: Executive Order Many themes still present today 1935; Creation of Department of Purchases Violations to Purchasing Laws Invest Right Scheme (Gov. Wally Barron) Laws Changed as a Result 2006: Purchasing Reform 2012: More Changes to State Laws and Rules 2013: More Changes to State Laws and Rules : Purchasing Staff Creates List of Suggestions for Improvement 2017: Changes to Required Documents with Bid 2018: Purchasing Reform II (Substantial Changes)

4 LOOKING AT THE BIG PICTURE State Perspective W.Va. Code W.Va. Code of State Rules Purchasing Division s Authority Agency Perspective State Agencies Specific Programs Operating Procedures

5 TRANSPARENCY & ACCOUNTABILITY Roles and Responsibilities Purchasing Division State Agencies Who Does What? Purchasing Division Direct Awards Reverse Auctions Protests Court Action Specific Procedures Not Delegated, Why? Public Information / Records

6 GOOD CONTRACT COMPONENTS Specification Words on the page is the basis for relationships Specificity vs. General Can restrict competition Terms and Conditions Why their important? Agreement Addendum (WV-96/WV-96A) Protecting the state

7 SPECIFICATIONS Foundation of the Procurement Language Ability to Defend Repository

8 PROCUREMENT METHODOLOGY Trends in Procurement Types of Methods in West Virginia Request for Quotations Request for Proposals Expressions of Interest Request for Information Standardization Direct Award Emergency Purchases

9 STANDARD OPERATING PROCEDURES Establishing Consistencies in Processes Purchasing Division Procedures Handbook Only for guidance; it s not the law Restructured in 2018 to make clearer and searchable Forms Dictated by law Necessitated by procure Convenience Templates Continuity

10 INTERPRETATION OF THE RULE Discussion of the West Virginia Code of State Rules W.Va. 148 CSR 1 Application of the Rule Association to the West Virginia Code

11 VENDOR PERFORMANCE Contractual Obligations Expectations Purchasing Division Agencies Vendors What Happens If Problems Occur? Resolution Role of Oversight Agencies Purchasing Division Importance of Documentation

12 BUILDING RELATIONSHIPS Vendor Relations Bi-Annual Training Sessions West Virginia Purchasing Bulletin Agency Partners Designated Each Fiscal year Publications Training Communication Local Government Outreach Website Training

13 WHAT S NEXT? Other Improvements to Processes Think Outside the Box What suggestions do you have for procedural changes in procurement? Any legislative changes that you would like to propose?

14 Last Minute Questions on Purchasing Theory Issues? CONTACT US P U R C H A S I N G. D I V I S I O W V. G OV Don t forget to sign the attendance sheet.

15 L E G I S L AT I V E AND P R O C E D U R A L C H A N G E S 2018 AGENCY PURCHASING CONFERENCE

16 LEGISLATIVE CHANGES Allow Open-Ended Construction and Maintenance Allows open-ended maintenance and repair construction contracts up to $500,000 (applies to the entire term of the contract, including renewals) Relaxes RFP Requirements to Speed Up Process Allows agencies to select the best product by comparing vendor proposals against one another and considering best in class solutions that exceed the specifications.

17 LEGISLATIVE CHANGES Converts Sole Source Procurement to Direct Award Eliminates need to certify that only one vendor in the world can provide a particular commodity or service. Agency can certify that no one would be likely to provide the commodity or service under the current circumstances. Public notice requirements continue to apply, allowing vendor community to notify the state when a vendor believes it can provide the commodity or service.

18 LEGISLATIVE CHANGES Reduces Limits on Secondary Bidding Increases master contract time from one year to three Increases spending limit on commodities for secondary bidding from $50,000 to $1 million per order. Expands Debarment Grounds to Include Deferred Prosecution Agreements Expands debarment grounds to cover admissions of guilt that do not lead to conviction, other general bad behavior, and related parties

19 LEGISLATIVE CHANGES Vendor Preference Removes traditional vendor preference on all commodities and services, except for purchases of automobiles and certain highway related construction equipment. Adds a reciprocal preference that will provide West Virginia vendors with the same percentage of preference against out of state vendors when that state provides a preference in favor of its resident vendors

20 LEGISLATIVE CHANGES Allows Surplus Property to Set Vehicle Price Requires sale of a vehicle to an eligible organization be at the average loan value as listed in the NADA, which allows WVSASP to more easily establish a realistic price to facilitate increased sales of used vehicles to eligible organizations around the state Changes Surplus Property Fund Reimbursement Procedure Allows spending units to receive proceeds from the sale of assets by the WVSASP when the original purchase fund no longer exists

21 LEGISLATIVE CHANGES Allows Agencies to Standardize Certain Commodities Establishes procedures for setting standards, which will eliminate the need for or equal specifications for that particular commodity and would last for a stated period of time. Adds an Emergency Section to West Virginia Code 5G-1-3 Allows for the emergency purchase of design and engineering work, even when the cost of the project is expected to exceed $250,000, to quickly stop problems from becoming more dangerous and costlier to repair

22 LEGISLATIVE CHANGES Modifies the Disclosure of Interested Parties Form Increases the limit for the Disclosure of Interested Parties form from $100,000 to $1 million. Additionally, this form will no longer apply to publicly traded companies.

23 PROCEDURAL CHANGES Increased agency delegated verbal bid limit from $2,500 to $5,000 to $2,500 to $10,000; Allows screen prints from websites offering to sell goods and services to be accepted for the verbal bid limit; Permits longer base terms for software contracts with maintenance, up to five years; Revises the Request for Proposal and Expression of Interest Standard Formats to provide clarification and more ease of use; and, Lowers the limit from $250,000 to $100,000 for allowable use of the Request for Proposal process, upon the Purchasing Director s approval

24 Last Minute Questions on Legislative and Procedural Changes? CONTACT US P U R C H A S I N G. D I V I S I O W V. G OV Don t forget to sign the attendance sheet.

25 ROUNDTABLE DISCUSSIONS 2018 AGENCY PURCHASING CONFERENCE