THERE S AN FAP FOR THAT!

Transcription

1 THERE S AN FAP FOR THAT! March 14, 2014 Presented by Joan Graham, CPPO, CPPB

2 Objectives Become familiar with Finance Administrative Polices and Procedures related to Procurement Learn how the FAP s authorize and guide Kentucky procurement Understand how FAP s relate to cited authorities in emars There s a FAP for that!!

3 Procurement Foundation KRS 45A 200 KAR 5 Finance Policies & Procedures

4 Kentucky Model Procurement Code The American Bar Association s (ABA) Model Procurement Code was adopted by Legislation in 1978 and became law in 1979 Kentucky was the first state to adopt this procurement code. KRS Chapter 45A is the statutory location of the Model Procurement Code ABA drafted the MPC as a result of numerous public purchasing scandals across the country It s a Model Code and not a Uniform Code Highly flexible statutory framework Establishes a set of ethical standards

5 Kentucky Model Procurement Code KRS 45A.075 requires all state contracts be awarded by one of the following four methods except as otherwise authorized by law: 1. Competitive sealed bidding, pursuant to KRS 45A Competitive negotiation, pursuant to KRS 45A.085 & 45A.090 or 45A Noncompetitive negotiation, pursuant to KRS 45A.095 RFB RFP Competitive Exemption 4. Small purchase procedures, pursuant to KRS 45A.100 RFQ There s a FAP for that!!

6 Cited Authority A Cited Authority is required for procurement and payment documents in emars A Cited Authority represents the valid legal purchasing authority for the procurement document A Cited Authority may represent: One of the four methods of awarding a contract PSC, MOA or Grant authority Cooperative purchasing authority Other statutory or regulatory authority Many Cited Authorities represent a Finance Administrative Policy and Procedure

7 Finance Administrative Policies & Procedures Commonly referred to as FAP s Procurement Policies and Procedures are FAP through FAP General conditions and instructions incorporated by reference in each solicitation and resulting contract Specific requirements for some goods and services Competitive Bidding Exemptions

8 What do you want to know? What do I do if state property is stolen? There s a FAP for that!! FAP What are the general requirements for closing fiscal year purchases? There s a FAP for that!! FAP The equipment I ordered was damaged when I received it. What do I do? There s a FAP for that!! FAP What are the those crazy rules about purchasing printing? There s a FAP for that!! FAP

9 What else do you want to know? What information is required on a RQS? There s a FAP for that!! FAP My agency wants to purchases used equipment but how do we do that? There s a FAP for that!! FAP The vendor said they would give my agency a discount if we traded in our equipment. Can we do that? There s a FAP for that!! FAP No matter how many times my agency addresses the delivery and invoice issues, this vendor never complies. There s a FAP for that!! FAP

10 What is a Small Purchase? There s a FAP for that!! FAP Provides guidance for Small Purchases for Goods and Non-professionals Services Not used for printing or professional service contracts. Used for purchases when the cost is estimated to be no more than the amounts established in FAP Procurement requirements shall not be parceled, split, divided, or scheduled over a period of time in order to subvert the intent of the Small Purchase procedure

11 Small Purchase - FAP Agency Small Purchase Limit One Quote Request for Purchase equal to or less than At least Three Quotes Requested or Posted to the eprocurement Site $1,000 $1,000 N/A $3,000 $1,000 $1,000 and $3,000 $5,000 $3,000 $3,000 and $5,000 Higher than $5,000 $5,000 Over $5,000 If non-professional services total between an agency s small purchase limit and $20,000 an agency may solicit services per the following table. Number of Quote Requests Required Dollar Threshold One Less than $5,000 At least three or posted to the eprocurement Site Between $5,000 and $20,000

12 Do you know about the General Conditions? There s a FAP for that!! FAP Includes general conditions and instructions for solicitations (requests for quotes, bids, proposals) that must be incorporated into each solicitation and contract Provides information important to buyers that may clarify questions you have about the solicitation and contract process Includes requirements that vendors must comply with in order to be considered for an award

13 Do we have to bid everything we purchase? Not always There s multiple FAP s for that!! FAP COMPETITIVE BIDDING EXCEPTIONS: SPECIFIED BY LAW OR REGULATION FAP COMPETITIVE BIDDING EXCEPTIONS: STANDING DETERMINATION OF NOT PRACTICABLE OR FEASIBLE FAP COMPETITIVE BIDDING EXCEPTIONS: SOLE SOURCE FAP EMERGENCY PURCHASES

14 Non-Competitive Negotiation Three Important FAP s FAP Exceptions to Sealed Bidding (By Law or Regulation) FAP Exceptions to Sealed Bidding (Not Practicable /Feasible) FAP Exceptions to Sealed Bidding (Sole Source)

15 Exceptions to Sealed Bidding (By Law or Regulation) FAP Purchases are exempt by law from competitive bidding & may be purchased without prior approval from OPS Contractual services where no competition exists Works of art for museum and public display Services of a visiting speaker, professor, expert witness, or performing artist Rates fixed by law or ordinance Commercial items purchased for resale to the general public through a resale outlet maintained by a state agency Subscriptions for the purchase of periodicals in either paper or electronic format Copyrighted material in either paper or electronic format for which only one source of supply is available Cooperative purchases

16 Exceptions to Sealed Bidding (Not Practicable /Feasible) FAP Only the specific items listed are exempt from competitive bidding. Cannot exceed Small purchase authority without the prior approval of OPS Fresh meat, dairy, produce, seafood & eggs Transcripts Ads, public media, public displays, billboards, signage, & booths Insurance and bonds under $10,000 Equipment repair service and parts Short-term equipment rental Airfare, discount travel tickets Supplies and equipment for laboratory or experimental studies Vehicle motor fuels Deaf Interpreters Foreign language interpreters Other goods and services - Prior approval of OPS required

17 Exceptions to Sealed Bidding (Sole Source) FAP Prior approval of the electronically sent justification by OPS is required for all purchases over $5,000 or the agency s single quote small purchase authority, whichever is less Instructional materials, equipment, supplies, or services Patented equipment Proprietary equipment and supplies Equipment lease or rental, excluding passenger vehicles Proprietary service and maintenance agreements Dues and organizational fees Computer software that is copyrighted and available from only one source Other commodities, equipment and services available from only one source. - All purchases in excess of agency small purchase authority shall receive prior approval from OPS

18 Emergency Purchases There s a FAP for that!! FAP KRS 45A.095 (3) defines an emergency condition KRS 45A.095 (3) Key points: A situation which creates a threat or impending threat to public health, welfare, or safety An immediate and serious need for services, construction, or items of tangible personal property Cannot be met through normal procurement methods FAP Key points: Initial determination of emergency made by head of using agency Purchase must be fully documented in a letter to the Secretary of the Finance & Administration Cabinet

19 Where do I send my requests? There s not a FAP for that but good question! Address letters requesting Exemption to Sealed Bidding for Sole Source or Not Practicable to Bid (other services) to Don Speer, Executive Director Address letter justifying Emergency Purchase to Lori Flanery, Secretary Send both Exemption and Emergency letters to OPS.Reporting@ky.gov

20 PSC & MOA What s the Difference? There s a FAP for that!! FAP PERSONAL SERVICE CONTRACTS PSC is the required method of obtaining professional services from a private entity FAP MEMORANDUM OF AGREEMENT MOA is an agreement to exchange resources or responsibilities between governmental entities or with an entity qualified as a non-profit 501 (c)(3) Commonalities PSC s and MOA s are established in emars as PON2 documents Subject to monthly review by the Government Contract Review Committee (GCRC)

21 Questions