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Definitions
The following
definitions apply to these guidelines
- 20%
Rule
- Some OGS Information Technology
product contracts contain a 20% rule. This means that if an
agency is buying product and also needs to buy ancillary services
(e.g.: consulting and training) under the same contract for the
purposes of customizing the product, or product roll-out and
implementation, the agency may be able to purchase those services
up to 20% of the value of the product and first year's
maintenance. The 20% rule currently applies to microcomputer,
printer, software, interactive voice response systems,
videoconferencing systems and networking hardware and software
contracts.
When using the 20% option, the awarding agency must first do an
independent estimate for the services needed. In the event the
estimate exceeds the 20% limit, the agency should either:
undertake a competitive procurement, or justify a single/sole
procurment.
- Aggregated Buy
- An Aggregated Buy is the process
whereby an Authorized User determines the specific contractor and
final pricing for the purchase of a product, service or system on
behalf of more than one Authorized User. Participation in an
Aggregated Buy eliminates the need for an Authorized User to
conduct a mini-bid or a best and final negotiation.
- Authorized User
- An agency, or other entity
authorized by the laws of the State of New York to participate in
NYS centralized contracts (including but not limited to political
subdivisions, public authorities, public benefit corporations and
certain other entities set forth in law), or the State of New
York acting on behalf of one or more Agencies and other entities,
provided that each such Agency or other entity shall be solely
responsible for liabilities or payments due as a result of
participation.
This is the process required for
an Authorized User when making significant purchases from brand
bid or negotiated contracts, or, in some cases, any purchase from
a limited multiple award contract. A brand bid or negotiated
contract covers the full product line of a specific brand of
product (i.e. Compaq microcomputers, Cisco networking hardware
and software, Hewlett-Packard printers, Oracle software, Polycom
video systems, etc.). In addition, whenever an agency is making a
first time major purchase such as purchasing a new system, or
installing software for the first time, all options available to
the agency should be evaluated, including an agency competitive
procurement or use of a centralized contract. When the decision
is made to purchase from a centralized contract, an agency should
solicit best and final offers, based on the agency's
statement of needs.
Smaller purchases can
be made directly from these contracts, but it is required that
for certain minimum size orders and recommended for other smaller
size orders, that Users either:
-
draft an informal
statement of their needs and solicit best and final offers from
competitive sources; or
-
if the user can
document a single source procurement, negotiate with the
contractor of choice to finalize a best value
purchase.
The following awards
include multiple contracts awarded by region. When making any
purchase from these awards, it is required that the Authorized
User solicit best and final offers from all contractors for the
applicable region:
Awards that include
multiple contracts outline the required Procurement Procedures
for soliciting best and final offers.
- Direct Buy
- The ability for an Authorized
User to buy directly from an OGS contract using its standard
form, format or purchase order, and which does not require a
mini-bid, best and final negotiation, creation of a procurement
record, or other required process, prior to making the
buy.
- Fast
Track
- This process is a streamlined
mini-bid process under the IT Services backdrop contracts used to
acquire Consulting Services for the various Categories of
Expertise, as defined in the backdrop contracts, when there is a
need to augment the State workforce for specified periods of time
(six months, one year, up to eighteen months) based on Hourly
rates.
- Mini-Bid Process
- A formal mini-bid is the process
whereby an Authorized User develops a project definition
outlining their specific requirement and solicits bids from
qualified back-drop contractors to determine the best value
solution. From development of the project specifications to the
project award takes from six to ten weeks, a fraction of the time
when compared with the traditional RFP procurement. Project
awards shall be based on "Best Value. In the technology
area, PBX Systems and IT Services make use of the mini-bid
process and each one has several unique features found in its own
guidelines describing the required formal mini-bid process. These
guidelines are available on the OGS website or upon request from
the Procurement Services Group.
Except where an
agency can justify single or sole source procurement or where the
requirement does not exceed $15,000, (or where a direct purchase
is made form an NYS MBE, WBE, SBE for up to $50K) the formal
mini-bid process is required for an Authorized User to utilize
these two contracts.
- Negotiated Contract
- A contract established by
agreements reached between a contracting entity and a vendor in
lieu of issuing a bid document. While occasionally negotiation
follows a competitive bid when only one bid is received, such
resulting contracts are considered to be competitive
procurements.
- Procurement Record
- The Procurement Record is the
accumulated documentation, relating to a purchase, by an
Authorized User. Documentation should include, but not
necessarily be limited to justification for a single or sole
source purchase, competitive methodology utilized (mini-bid vs.
agency RFP) and reasonableness of price. Chapter 95 of the Laws
of 2000 includes an amendment to Section 163 (7) of the State
Finance Law stating, "Agencies are required to document
evaluation criteria in the procurement record prior to the
initial receipt of offers in a best value procurement."
Section 163 (9) (g) was amended to add "The procurement
record must include each amendment to a contract and the
justification for the same."
- Sole Source
- "Sole source" means a
procurement in which only one Contractor is capable of supplying
the required product or service.
- Single Source
- "Single source" means a
procurement in which although two or more Contractors (or
participating resellers) can supply the required product or
service, the Authorized User, upon written findings setting forth
the material and substantial reasons therefore, may award the
order to one Contractor (or participating reseller) over the
other(s). The Authorized User shall document in the procurement
record the circumstances leading to the selection of the vendor,
including the alternatives considered, the rationale for
selecting the specific vendor and the basis upon which it
determined the cost was reasonable. Refer to the Procurement
Council Guidelineslocated at the OGS website for further
information on Single and Sole Source.
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