Procurement Services Guide

Chapter 1 - Getting Started

1.1

Identification of Product Needed

1.2

Selecting a Vendor

Once it has been determined what product is needed, the next step is to identify a vendor and receive a cost estimate. The State has several mechanisms in place for selecting a vendor. A requester may select to purchase from a State pre-approved vendor (see Chapter 2), competitively bid and purchase from the bidder who is deemed the lowest cost, most responsive and responsible to the bid requirements (see Chapter 3), or in rare instances request sole source approval to purchase from a single vendor (see Chapter 4).

Keep in mind that the type of product ordered, the dollar amount, and the vendor used, are all factors that effect how the request is processed.

1.3

Responsibility of Order Originator

Chapter 2 - State Pre-Approved Vendors

Neither competitive bidding nor sole source approval is required to purchase from a state pre-approved vendor.

2.1

State Agencies

1. State Printing Plant - provides printing services to all state agencies. The types of products available through the State Printing Plant include business cards, letterhead, brochures, and publications.
2. Prison Industry Authority (PIA) - specializes in office furniture products. The type of products available from PIA include traditional office furniture (e.g. chairs, desks, bookcases, credenzas, file cabinets, etc.) and modular furniture.

In order to purchase products from an outside vendor, that are otherwise available through the PIA, a state agency a waiver from the respective agency must be obtained.

To obtain a waiver, a written justification must be provided to the ASD Procurement Unit. The Procurement Unit will prepare the information and submit it to the respective agency. If the Agency agrees to issue a waiver, the purchase will be made in accordance with standard State guidelines.

2.2

Sheltered Workshops

2.3

State Contract Vendors

On behalf of all State agencies, the Department of General Services enters into agreements which make available products and services for a specified sum and under specific terms and conditions. If the product to be purchased is available from a state contract, the product must be procured from that respective source. The following are examples of products available through state contracts:

	Acoustical Panels		File Cabinets, Steel, Conventional
	Batteries, Storage & Electrolyte		Filters
	Bookcases, Steel, Office		Footwear, Gloves, Goggles
	Chairs & Tables, Folding, Steel		Gasses
	Clocks, Wall		Glassware
	Desks, Steel, Office, Conventional		Telephone Equipment
	Dictating/Transcribing Equipment		Tires, Passenger and Light Truck
	Electrical Hardware		Tools, Hand
	Extinguishers, FireTypewriters

2.4

California Multiple Award Schedule

Note: If ordering from CMAS, list the CMAS number and the expiration date on the request document.

Chapter 3 - Competitive Bid Process

3.1

Prohibition Against Limiting Bidding

3.2

Dollar Guidelines

If the requested product/s are $999.99 or less only one bid is required and it may be obtained through an informal bid process.

Note: If the requested product/s are $1,000.00 or more and only one vendor is able to produce the desired product, a sole source justification must be provided (see Chapter 4).

If the requested product/s are more than $1,000.00 but less than $2,500.00 two bids are required and they may be obtained through an informal bid process.

If the requested product/s are more than $2,500.00 but less than $15,000.00 three bids are required and they may be obtained through an informal bid process.

If the requested products are more than $15,000.00 the order will be forwarded to Department of General Services (DGS) for review and processing unless the vendor is a State Pre-Approved Vendor as per Chapter 2.

3.3

Informal Bid Process

3.4

Formal Bid Process

Chapter 4 - Sole Source Process

4.1

Definition - Sole Source

4.2

Executive Order

Management Memo 94-16 provided cabinet level Agency Secretaries (Cal/ EPA) the authority to grant approval for certain specified categories of sole source procurement without reviewing individual transactions. In accordance with that memo, the Agency Secretary has granted certain categorical exemptions of commodities purchased under delegated purchase programs from his review. This exemption includes commodities purchased under ARB’s delegated authority (see Chapter 5).

4.3

Criteria

1. In an emergency, for the immediate preservation of public health, welfare, safety, or protection of State property. (Does not require Secretary’s review)
2. When business needs do not allow sufficient time for competitive bidding. When the claim is made a Sole Source Vendor/Product for or Agency Secretary approval may be required dependent on the dollar amount.
3. When a particular brand or source is required for equipment repair.
4. When the items are proprietary. If requesting to sole source based on this criteria, a copy of a letter from the respective vendor that certifies that the product is proprietary and/or that the vendor is the sole representative for parts and service of the product must be attached to the request. In addition, a Sole Source Vendor/Product Form or Agency Secretary approval may be required.

4.4

Sole Source Vendor/Product Form

Note: If the item being requested is $15,000.00 or more, a memo drafted from the ARB Chairman to the Agency Secretary requesting signature approval to proceed with a sole source purchase must be prepared and approved before the request can be sent to DGS for review and processing.

4.5

Agency Secretary Memo

1. The proposed contractor’s name.
2. Information regarding the unique performance factors of the product specified that warrant a sole source purchase.
3. A justification that describes why the unique performance factors are required.
4. The basis for the sole source exemption request. This information should be sufficient to answer the questions:

   • Is the proposed vendor the only source, and if so, how has this been verified?
   • Is the request based on being in the "best interest of the state", and if so why; and
   • What are the potential consequences if the request is denied?
5. A listing of other products which have been examined and the reasons why these products were rejected, including the vendor’s name, address, telephone number, and individuals which have been contacted.
6. All requests must be submitted to the ASD Procurement Office for processing. Requests must have division chief signature approval, either on the appropriate request document (i.e. Form 5 or EO-5), or its cover memo.

Chapter 5 - ARB Delegated Authority

1. The vendor is another State Agency (e.g. the California State Printing Plant, PIA, etc.).
2. The product and vendor are identified on an approved State contracts list.
3. The product and vendor are identified under a CMAS contract.

Requests to purchase products in excess of $15,000.00 must be sent to DGS for review and processing.

Note: Splitting of orders to circumvent DGS review and processing is prohibited.

Chapter 6 - DGS Review and Time Lines

6.1

DGS Review

6.2

DGS Processing Time Lines

1. DGS receives and logs the request. Time: approximately 2 weeks.
2. Request assigned to DGS Buyer for review (if order is not complete it will be returned).
   Time: Approximately 2 to 3 weeks.
3. Specifications, if any, are sent to DGS, Specifications Unit for review and approval (if specifications are incomplete the order will be returned). Time: approximately 1 to 2 months.
4. Approved specifications returned to DGS Buyer.
5. A DGS Buyer draft bid package and mails it to potential bidders. Bidders allowed 30 days to respond.
   Time: Approximately 1 to 2 months.
6. DGS Buyer reviews bids and awards to appropriate vendor. Time: approximately 1 to 2 months.
7. Purchase order issued.

The entire DGS processing time takes approximately 5-7 months.

Chapter 7 - Initiating a Purchase Request

7.1

Parts vs. Labor

7.2

Purchase Request Documents

7.3

Form Completion Instructions

1. The address where the products are to be delivered, and the name of the person requesting them.
2. The agency billing code and the quantity of product/s being requested.
3. A complete description of the products including size, color/finish, part and/or model number. Attach any other pertinent specifications, drawings or samples.
   Note: If requesting replacement parts or products that must be compatible with existing equipment, include the brand and model, and ARB bar code of the existing equipment.
   
4. The estimated price per unit if known.
5. Under justification list the reason/s for ordering the products. The justification is to be succinct but must provide sufficient information to allow Procurement and Accounting staff to respond to questions from control agencies who audit the final payments.
6. The vendors name, address, phone number and contact person if available. If the products are unusual, providing the names of additional vendors will help expedite the order.
   Note: If ordering from CMAS, list the CMAS number and the expiration date.

7.4

The signature and title of the person authorizing the purchase.

The EO-5 must be signed by a Section or Branch Manager and a Division Chief.

Chapter 8 - Special Items

8.1

Anything With Wheels

1. Equipment Request form complete with appropriate signatures and information (see Chapter 7)
2. Specifications - two copies
3. Literature from the vendor - two copies
4. Suggested vendors - three or more
5. Sole source justification (if fewer than three vendors) - two copies. Dependent on the dollar amount, either a sole source vendor/Product Form or an Agency Secretary approval may be required (see Chapter 4).
6. Justification that includes: The name of the program, division, section, etc. that will use the item; a description of the item; an explanation regarding why the item is needed; and, the impact of not receiving the item should the request be denied.

8.2

Cellular Phones and Pagers

If ordering a cellular phone other alternatives that were considered must be included with the justification along with an explanation as to why a cellular telephone constitutes the most cost-effective alternative to meet the operational requirements. In addition, requests to obtain and use a cellular phone require Division or Office Chief signature approval.

Note: It is ARB policy to purchase cellular phones and pagers rather than lease. Any request to lease rather than purchase must be accompanied by a justification regarding why it is necessary to lease and demonstrate the reasonableness of cost.

8.3

Photocopy Machines

Note: Photocopy machines ordered must be included on the DGS approved list. Contact the ASD, Procurement Unit for a copy of the list. If the photocopy machine being ordered is not on the DGS approved list, a waiver must be obtained from DGS.

8.4

Publications and Subscriptions

1. The title of the publication.
2. The author.
3. The publication order number, if applicable (ISBN number).
4. Indicate if pre-payment is required.
5. The vendor, where available, including the address.

If ordering a subscription the following information must be included on the Form 5.

1. The full title of the publication.
2. Subscription period (i.e., 3 months, 6 months, 1 year or more).
3. Indicate if request is for renewal of current subscription and attach renewal notice, if applicable.
4. Indicate who in your division will actually receive the subscription.

After obtaining appropriate signatures, forward the original copy of the Form 5 to the ARB’s Sacramento Library with any brochure or renewal notices attached. Retain one copy for your pending file.

Chapter 9 - Expedite Orders

1. A justification regarding why it is necessary to expedite, and how it will impact on program requirements.
2. The date by which the order must be filled
3. The consequences if the order is not filled by the requested date.

Note: Orders marked expedite that do not have the above information attached will be processed in accordance with standard office procedures, in order of date received.

Chapter 10 - End User Responsibility

10.1

Notification

10.2

Invoices

Note: The Prompt Payment Act requires State departments to pay interest penalties on any invoice that is not paid within 30 days of the date of the invoice

10.3

Expediting Payment

Chapter 11 - Petty Cash

11.1

Purchase Criteria

1. The product purchased was necessary to conduct State business
2. The product purchased did not exceed $50.00 per purchase (excluding sales tax)

11.2

Reimbursement Procedures

Chapter 12 - Storeroom Supplies

12.1

Ordering

To order supplies from the storeroom, an Intra Office Requisition (Form 5) must be completed and the following information provided.

1. The date the order is being submitted.
2. The name of the person to whom the items are to be delivered.
3. The requestors unit/section name, signature and title.
4. The signature and title of the person approving the order (usually the requestor’s immediate supervisor). Without an approving signature the Supply Office cannot fill the order.

12.2

Receipt of Supplies