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PROCUREMENT BULLETIN
PROCUREMENT RECORD CHECKLIST
(Issued: December 1996)

I. Purpose

The purpose of this bulletin is to describe the required contents of the Procurement Record (Record), as required by the Procurement Stewardship Act of 1995 (the Act).

The Act requires agencies to maintain a record of every procurement. As defined in the Act, the record means the documentation of the decisions made and the approaches taken in the procurement process. In addition, the Record will serve as an audit trail of the procurement, and the basis for the Office of the State Comptroller's (OSC) review and final written determination on the contract, and the principal resource for responding to inquiries and debriefing unsuccessful bidders. The Record should serve to protect both the agency conducting the procurement and the vending community, during and after the procurement.

Many agencies currently maintain an informal "procurement record" and submit it to OSC as part of their contract review package. As a result of the new procurement law, a more formal Record is now required for the procurement of goods and services. To ensure the Record is complete and to achieve greater uniformity among state agency submissions, effective immediately, agencies will be required to submit a Procurement Record Checklist with every procurement greater than $15,000 submitted to OSC for approval (with the exception of preferred sources).

For the purpose of this bulletin, and when submitting a procurement to OSC for prior approval, in addition to the requirements of the Act, the Record will also be deemed to include: the contract(s) or purchase order(s); unsuccessful bids or proposals; the Invitation for Bid or Request for Proposal (RFP); the Procurement Record Checklist; and any other documents that would normally accompany the procurement.

II. Applicability and Scope

This bulletin applies to all state agencies, boards, commissions, offices and institutions, including the State University of New York and the City University of New York. (Based on the threshold as approved in accordance with the University's flexibility legislation.) It covers the acquisition of services and commodities, including technology.

The Record shall be maintained for each procurement identifying, with supporting documentation, decisions made by the agency during the procurement process. The process shall include, but is not limited to, a clear statement of need; a description of the required specifications governing performance and related factors; a reasonable process for ensuring a competitive field; a fair and equal opportunity for offerers to submit responsive offers; and a balanced and fair method of award. State agencies shall document the determination of the method of procurement and the basis of award in the Record. Where the basis for award is the best value offered, the state agency shall document in the Record, and in advance of the receipt of offers, the determination of the evaluation criteria which, whenever possible, shall be quantifiable, and the process to be used in the determination of best value, and the manner in which the evaluation process and selection shall be conducted.

While a Record is required to be maintained for all procurements, for the purpose of this bulletin, OSC will require that the Record and checklist accompany all transactions that exceed $15,000. Although not required, agencies are encouraged to prepare and submit a checklist for all procurements that exceed $5,000. For purchases of $15,000 or less, a Record should be maintained that documents the need, the method used to select the vendor, and how the price was determined to be reasonable. Agencies are reminded that purchases over $10,000 require the prior approval of OSC in accordance with Section 112 of the State Finance Law.

Contracts entered into pursuant to Article XI-B of the State Finance Law are not governed by the requirements of this Bulletin.

III. The Checklist

The purpose of the Procurement Record Checklist (copy attached) is to assist agencies in preparing, documenting, and submitting the procurement package and record to OSC. It will serve to ensure greater uniformity among agency submittals. It will also assist OSC in streamlining the approval process. In addition, the checklist will serve as a resource to report specific data, including the number of service and commodity contracts that are competitively solicited, the number of contracts awarded on the basis of "lowest price" or "best value" among responsive and responsible offerers, etc., which is a requirement of the Act.

We have designed the checklist to follow the procurement process, from documenting the need and description of the commodity/service to be procured to contract execution. The amount of documentation necessary to support the decisions made by the agency during the procurement process is dependent upon the type and complexity of the procurement.

While the checklist is generally self-explanatory, the following matrix can be used to assist agencies in completing the checklist correctly. At a minimum, agencies will generally be required to complete sections numbered 1, 2, 3, 4, and 9. The sections marked with an "X" should be completed for each category of procurement.

Procurement Record Checklist
(For Procurements Greater Than $15,000)

IV. Documentation

The following is a more detailed description of the documentation needed by an agency to support the Record.

A. Preferred Source Procurement

When purchasing services or commodities from preferred sources, a checklist is not required. The Record shall include:

1. The voucher, purchase order, or contract and AC 340, and required signature/ attachments, as detailed in Section V.

2. Relevant documentation between the agency and the preferred source(s) regarding the prospective procurement. Documentation may include any substantive correspondence which assisted the agency in selecting among preferred sources and/or helped solidify the procurement.

Non Preferred Source Procurements

When an agency chooses not to procure a commodity or service available from a preferred source, the Record must include documentation that a preferred source was notified of the prospective purchase as well as any written objection raised by the preferred source. Such notification only applies in certain instances and serves in lieu of what was formerly known as the "release" procedure. It is designed to ensure:

1. When applicable, that the agency has contacted one or more preferred sources in an effort to make the purchase from a preferred source.

2. When a purchase is not forthcoming, that the agency has a rationale for not buying from the preferred source. In this case, the Record may also include:

a. Notification of preferred source(s), in written form. Regarding commodities, notification is required when the desired commodity is on the List of Preferred Source Offerings as a statewide approved preferred source item, but found to not meet the agency's form, function and utility requirements. Notification, in this case, is designed to give the preferred source the opportunity to meet agency needs. When a desired commodity is available, but not approved as a statewide preferred source item, no such notification is required.

Procurements for services must first be presented to one or more preferred sources, when the desired service is on the List of Preferred Source Offerings as approved for one or more state agencies, political subdivisions, or public benefit corporations. Notification is required before the agency goes out to "bid." Notification is designed to furnish a preferred source with an opportunity to provide the service, and also to avoid a competitive procurement when a preferred source is the most likely recipient of the contract.

b. The Record must include the agency's written notification, where required; preferred source(s) responses; and any other documentation deemed necessary to support the procurement. When an agency chooses to procure a commodity or service available from a preferred source from another source, the Record must include the agency's rationale for electing not to buy from the preferred source. (See New York State Procurement Bulletin - Preferred Source Guidelines).

B. Agencies Buying From a Centralized Contract

When procuring services or commodities from a centralized contract, the Record shall include a copy of the required purchase order, or an AC 340, as detailed in Section V, and, when applicable, notification of preferred sources. The purchase order must include a reference number of the centralized contract.

The procurement record checklist is not required unless an agency uses a statewide contract which requires the "mini-bid" process to make an award. For mini-bid procurements, the Record must include the Procurement Record Checklist, and all documentation (i.e., the contract or purchase order; unsuccessful bids or proposals; the IFB or RFP that would normally be submitted to OSC). If the selected vendor is other than the lowest price vendor, written justification supporting the selection must be a part of the Record.

C. Agency Procurements Under the Discretionary Buying Thresholds

Procurements under the discretionary buying threshold of $15,000 (see New York State Procurement Bulletin - Discretionary Purchases) for state agencies ($30,000 in the case of the recycled or remanufactured commodities and technology, and commodities or technology from small and M/WBE businesses), the Record shall include:

1. For procurements between $5,000 and $10,000, the Record shall include:

a. A voucher, purchase order, or contract and AC 340, and required signature/ attachments, as detailed in Section V.

b. The notification of preferred sources, when applicable, as detailed above.

c. Proof of advertisement in the Contract Reporter, an OSC approved exemption, or documentation that the purchase is being made under OGS's authority.

d. Evidence:

(1) How the vendor was selected; and

(2) The price is reasonable and how such a determination was made.

2. For procurements between $10,000 and $15,000, the Record must include all the documentation required in No. 1 above (with the exception that vouchers may not be used), and an OSC approved copy of the purchase order.

3. For purchases between $15,000 and $30,000 for commodities or technology from small businesses or certified MWBE's, or for remanufactured or recycled commodities or technology, the Record for procurements greater than $15,000 must include:

a. The Procurement Record Checklist.

b. A purchase order or contract and AC 340, and required signature/attachments, as detailed in Section V.

c. Notification of preferred sources, when applicable, as detailed above.

d. Proof of advertisement in the Contract Reporter, an approved OSC exemption, or documentation that the purchase is being made under OGS's authority.

e. Evidence:

(1) How the vendor was selected; and

(2) The price is reasonable and how such a determination was made.

D. Agency Procurements Using an Invitation for Bid (IFB)

IFB's may be used to procure either commodities or services, so long as commodities are awarded on the basis of lowest price and services on the basis of best value or lowest price, where best value has been interpreted to mean lowest price among responsive and responsible offerers.

For competitive procurements using an IFB for commodities or services, the Record shall include:

1. The Procurement Record Checklist (over $15,000).

2. A purchase order, contract and AC 340, and required signature/attachments, as detailed in Section V.

3. Notification of preferred sources, when applicable.

4. Proof, for all purchases over $5,000, of advertisement in the Contract Reporter or an approved OSC exemption.

In addition, the Procurement Record shall include:

1. A copy of the Invitation for Bids

The IFB is intended to set forth the agency's requirements for the purchase, and to ensure prospective offerers have an equal opportunity to submit responsive bids. In accordance with state procurement guidelines, all IFB's should include the following:

a. A clear statement of need, describing the commodity or service to be acquired, the specifications thereof, and any special requirements.

b. The bidder's qualifications, where applicable.

c. The method and basis of award.

d. Other contract terms and conditions.

e. Additional substantive documentation, either related to the administration of the procurement process, or provided to offerers that the agency determines would assist in the review of the contract.

f. Any modifications to the original lFB and a list of offerers sent such modifications.

g. Documentation of the results of any mandatory or optional bid conferences, including questions and answers, as well as a record of attendees.

h. Related terms and conditions, such as the bid opening date, the acceptance period, the conditions under which bids may be withdrawn or modified, bid deposit requirments, the policy concerning late bids, etc.

Incorporation by reference of OGS' Standards and Purchase or Service and Technology's general specifications would ensure necessary clauses are included.

With respect to services, the method and basis of award, as articulated in the IFB, must clearly explain that services are awarded on the basis of best value among responsive and responsible offerers. However, the use of an IFB signifies that the quality and efficiency of the service being acquired has been captured in exact specifications, and that the cost of the service does not involve items beyond the general price of the service itself. In other words, that in this case, a best value award will be interpreted to mean lowest price among responsive and responsible offerers.

2. Documentation of a Competitive Field

The solicitation should be made available to as many competitors as practical. The Record must include documentation to substantiate this, using a "bidder's list"of the names and addresses of potential offerers, or some other form as the agency may find appropriate.

Agencies are encouraged to make use of established agency or OGS bidder lists, trade journals, yellow pages, or other reference materials. If an advertisement is placed in a newspaper, a copy of the advertisement must be included in the Record.

3. Certified Bid Tabulation

The certified bid tabulation must be an original, signed, and certified by an authorized representative of the agency. The tabulation should identify the date, time, and place of opening; all bids received; and all no-bids. The tabulation should list bids ranked numerically with the lowest bidder as number one; no bids and no responses should be designated as such. Bid tabs should rank offerers in a manner consistent with the method of award (by item, lot, grand total, etc.).

4. Bid Proposal Forms

All original bids and returned no bids must be included in the Record, together with evidence of any late bids received.

5. Evidence of How the Winning Bid was Selected

The Record must evidence, in writing, the process by which the agency made the award and its relationship to the method of award as detailed in the IFB. The Record should also reference:

a. Any determination an offerer is not responsible.

b. Documentation of any negotiations concerning specific terms and conditions.

c. Any bid protest correspondence, to include a copy of the vendor's protest and any agency responses.

Once the agency's rationale for assessing the responsiveness and responsibility of the offerer is applied, the result should be an award to the lowest price responsive and responsible offerer. If this is not the case, the Record must include the agency's rationale for choosing otherwise.

E. Agency Procurements Using a Request for Proposal

An RFP is typically reserved for highly complex procurements. RFP's are used in procurements where factors, in addition to cost, are of equal or greater importance and a comparative evaluation of the proposals is necessary. RFP's generally apply to services, and impose a higher degree of responsibility and accountability on the procuring agency. This is reflected in the composition of the Record.

For competitive procurements using an RFP for services, and in rarer circumstances for commodities, the Record shall include:

1. Procurement Record Checklist (over $15,000).

2. Notification of preferred sources, when applicable, as detailed above.

3. Proof for all purchases over $5,000 of advertisement in the Contract Reporter or an approved OSC exemption.

4. The purchase order, contract and AC 340, and required signature/attachments, as detailed in Section V.

In addition, the Record shall include:

1. A Copy of the Request for Proposals

The RFP is intended to set forth a detailed description of the agency's requirements for the purchase, to ensure relevant offerers have an equal opportunity to submit responsive proposals, and to provide offerers with a general understanding of how their proposals will be evaluated. According to the state's procurement guidelines, all RFP's should include the following:

a. A description of the procurement administration process.

b. A clear statement of the services required, including a description of the program objectives, the scope of services to be provided, the detailed requirements or specifications, and a designation of those requirements that are mandatory, desirable and/or optional, and any other special requirements that need to be conveyed to potential offerers.

c. Instructions for developing the technical and financial proposal.

d. Any modifications to the original RFP and a list of potential offerers sent the modifications.

e. Documentation of the results of any optional or mandatory bid conferences, including questions and answers, as well as a record of the attendees.

f. Any performance standards and penalties that will apply.

g. The method and basis of award.

h. Other contract terms and conditions.

i. Additional substantive documentation, either related to the administration of the procurement process or provided to offerers, that the agency determines would assist in the review of the contract.

All service contracts are to be awarded on the basis of best value to the offerer which optimizes quality, cost, and efficiency among responsive and responsible offerers. There will be cases where best value will be interpreted to mean lowest price, in which case an IFB will be used. While agencies may include a detailed description of the evaluation criteria in the RFP, they are not required to do so. Agencies are, however, required to convey to vendors in the RFP the relative weight and/or importance of the financial proposal, as compared to the technical proposal. If, for example, the agency has determined that the technical proposal is of greater importance than the financial, the agency must specify this in the RFP. If the agency elects to be more specific, it may state in the RFP, for example, that the technical proposal will count as 40 percent of the score and the financial proposal will count as 60 percent of the score.

2. Documentation of a Competitive Field

The solicitation should be available to as many competitors as possible, and the agency must make reasonable efforts to identify potential offerers. The Record must include documentation to substantiate this, using a bidder's list of the names and addresses of potential offerers, or some other form as they agency may find appropriate. Agencies are encouraged to make use of established agency or OGS bidder's lists, industry and trade associations, feedback from a Request for Information (if used), and other sources, as applicable. If an advertisement is placed in a newspaper, a copy of the advertisement must be included in the Record.

3. Evaluation Criteria and Design

The procuring agency must determine prior to the receipt of proposals the evaluation process and the evaluation instrument that will be used to determine the best value solution. The Record must include:

a. Documentation of the evaluation process (i.e., the organization of the evaluation teams, a description of the evaluation methodology, any prequalification criteria that may apply, the scoring methodology, the procedure or formula for melding technical and financial scores, etc.).

b. A copy of the evaluation instrument (i.e., qualitative and quantitative measures, cost/benefit or life cycle cost analysis, and other factors affecting the evaluation of the technical and financial proposals).

c. Any modifications to the process or instrument that were made and the rationale for those modifications.

d. Any determination that an offerer is not responsible.

e. A written determination for the basis of award and selection and any bid protest correspondence, to include a copy of the vendor's protest and any agency responses or, for more complex procurements, a management summary of the evaluation results.

4. Tabulation of Proposals

The tabulation of proposals must be an original, signed, and certified by an authorized representative of the agency. The tabulation should identify the date, the time and place received, all proposals received, all no-proposals, and no responses.

5. Successful and Unsuccessful Proposals

All original bids and returned no bids must be included in the Record.

F. Single or Sole Source Procurements

A sole source procurement is defined as one in which only one vendor can provide the commodities or services required by the agency. A single source procurement is defined as one in which two or more vendors can supply the commodity or service required by the agency, but the agency selects one vendor over the other based on a specific rationale. Because these types of procurements represent the exception as opposed to the rule, the documentation required in the Record must fully explain the actions taken by the agency.

For single or sole source procurements for commodities or services, the Record shall include:

1. The Procurement Record Checklist (over $15,000).

2. A purchase order, contract and AC 340, and required signature/attachments, as detailed in Section V.

3. Notification of preferred sources, when applicable, as detailed above.

4. Proof for all purchases over $5,000 of advertisement in the Contract Reporter or an approved OSC exemption.

5. A written quotation from the offerer.

In addition, for sole source purchases, documentation in the Record must include an explanation of:

1. The unique nature of the requirement; including a description of other models, brands, potential offerers, etc., that were considered and explanation of their unacceptability.

2. The basis upon which it was determined that there is only one known vendor able to meet the need (i.e., the steps taken to identify potential competitors).

3. The basis upon which the agency determined the cost to be reasonable (i.e., a "fair market price" that could be anticipated had normal competitive conditions existed, and how that conclusion was reached).

For single source purchases, documentation in the Record must also include an explanation of:

1. The circumstances leading to the selection of the vendor, including the alternatives considered.

2. The rationale for selecting the specific vendor.

3. The basis upon which the agency determined the cost to be reasonable.

G. Emergency Purchases

An "emergency" is an unanticipated, sudden and unexpected occurrence beyond the control of an agency which threatens (i) the life, health, safety or welfare of any person, or (ii) the continued public use or function of property of New York State.

For procurements conducted under an "emergency" situation, the Procurement Package shall include:

1. The Procurement Record Checklist (over $15,000).

2. The purchase order, contract and AC 340, and required signature/attachments, as detailed in Section V.

3. Proof for all purchases over $5,000 that the agency has received an exemption from Contract Reporter requirements from OSC, and that the agency has requested that notice of the exemption and award of the contract be published in the Contract Reporter;

4. Written explanation of the emergency determination signed by the agency head or designated official;

5. Certified tabulation of quotations received and an explanation of vendor selection if other than the low bidder; and

6. Written quotation from the selected vendor.

V. OSC Requirements

A. Purchase Order

The purchase order should be completed in full, including the agency name and code; vendor name and address; the billing address; the shipping instructions, if different than the billing address; a description of what is being purchased, including quantities and unit prices; and any special provisions, including special delivery schedules, shipping terms, if not FOB, special payment provisions, and any inspection requirements that affect the purchase. The total purchase must be encumbered with the purchase order. When multiple deliveries are required, funds should be encumbered for purchases anticipated during the entire fiscal year. The purchase order must be signed by individuals authorized in accordance with OSC authorized signature requirements. Purchase orders are not required for procurements between $5,000 and $10,000, unless the information on the voucher or vendors invoice is inadequate to determine what was purchased.

OR

B. Contract

The Record must include two original copies of the contract and appropriate number of signature pages, including an agency certification and the contract number (see bulletin G-111). The original copy, once approved, will be filed with OSC while the additional copy will be used for payment purposes. Upon approval, the signature pages will be returned to the agency with the OSC approval stamp. It is the agency's responsibility to attach the signature pages to the proper contract documents; AND,

C. Contract Encumbrance (AC 340)

The Record must include the AC 340 document, signed by the agency finance officer or designee. Also, the signature and telephone number of the preparer should be included. The amount required for payment for the fiscal year must be fully encumbered. The AC 340 document is used to establish a master file of the contract and to encumber the necessary funds for payment; AND

D. Required Signatures/Attachments

The Record must include the signatures of contracting parties, in ink and dated showing the title of the signatory parties. If there are any changes to the text of the original contract prior to OSC's review, they must be dated and initialed by all signatory parties. Agencies must have on file with OSC all individuals authorized to sign contracts. The Record must include the following signatures and/or attachments prior to submission to OSC:

1. Attorney General's approval (not required on commodity contracts).

2. Appendix A.

3. MacBride Principles.

4. An acknowledgment of contractor's signature.

5. Non-collusive bidding certification.

6. Omnibus Procurement Act of 1992 (bid form).

7. Article I5A.

E. OSC Final Written Determination

No contract exceeding $10,000 shall become effective until OSC approval is attained. In accordance with the Act, OSC must formally act on each contract within ninety days. The approved document transmittal will serve as OSC's written determination.

OFFICE OF THE STATE COMPTROLLER
BUREAU OF STATE EXPENDITURES

THE PROCUREMENT RECORD CHECKLIST

Agency Code/Name:

Batch No./Contract No. or Purchase Order No.:

Contractor:

Contract Period: ________________________ Renewal Period: ________________________

1. Description of the Commodity/Service Being Procured:

2. Need Statement:

3. Procurement Method/Method of Award: (check all that apply)