How To Purchase Off the Contract:
The price list for each of the contracts will be available on the manufacturer's web site through a link from the OGS website, or the price list will be available directly on the OGS web site. The Contractors or OGS updates the price lists as changes in price and Product occur. For those contracts where the manufacturer hosts the contract at their web site, the manufacturer may also provide a configurator to enable Authorized Users to easily develop and price different configurations. Each of these web sites is linked to the OGS web site for convenience.
We recommend you receive a written quote when making purchases. For Contractor hosted pricing at the Contractor's web site, the contract terms require the Contractor to make twelve months of historical contract pricing information available to contract users for auditing purposes.
State agencies are reminded that they must comply with all applicable control agency guidelines (e.g. Division of the Budget H-100, etc.) Specifically, State agencies are reminded of their obligation to get Office for Technology (OFT) approval before placing orders under these contracts for any requirement that exceeds:
Procurement Procedures for State Agencies
The Office of General Services has established contracts for many brands of information technology and telecommunications equipment and new brands may become available in the future. State agencies should carefully consider all alternatives and select the most cost effective (which can include lowest price or best value analysis) for their current and anticipated future needs.
It is recommended that each agency develop, for the Procurement Record, agency-wide procurement strategy(ies) for each of the above types of equipment and for software as applicable. Different policies may be developed for different types of requirements (i.e. equipment for a statewide network vs. single site requirements, a separate policy for laptops, policies for different types of software, etc.). Whether the policy is to consider all contract offerings for equipment and software or to standardize on one or more specific brands, the policy should be supported by specific rationale expressed in terms of what represents best value to the agency. Because technology is constantly changing, it is recommended that the policies be reviewed annually and updated as necessary. There are a number of factors that should be taken into consideration when developing a procurement policy. These include but are not limited to:
These and other relevant considerations must be fully documented in the Procurement Record.
In accordance with the guidelines for use of the technology contracts, it is recommended that for each type of equipment or software, the agency aggregate its requirements and make as few purchases a year as possible. Each purchase of equipment or software should be acquired in accordance with the agency's established policy. A Procurement Record must be established for any purchase that exceeds $50,000. Where the agency has not standardized on a particular manufacturer/developer, agencies will be required to solicit quotes from at least three Contractors (manufacturers and/or resellers of different manufacturers/developers) for any new equipment, system or software installation requirement exceeding $50,000. Soliciting quotes from all contractors who market the type of equipment or software required is encouraged. Where the agency is doing moves, adds or changes (MACs) for an existing installation and the planned acquisition will exceed $50,000, agencies are required to negotiate the best deal possible with the contractor. See Justification for a Single or Sole Source Purchase below.
When soliciting or negotiating best and final offers with Contractors, create a short description of the requirement, being as specific as possible. Be sure to include any required services such as consulting (analysis and/or design), configuration, installation and training. Finally, indicate whether the final selection will be based on lowest price or on a best value analysis. If a best value analysis will be used, indicate what factors besides cost will be considered. Note that consulting and training services may be acquired directly from the above contracts, provided such services do not exceed 20% of the value of Product (and First Year's Maintenance, where applicable) being acquired. Where consulting and training services exceed twenty percent (20%) of the cost of the Product (and First Year's Maintenance where applicable) being acquired or where consulting and training services are being purchased alone (without Product),such servicescannot be acquired under the above contracts unless the Office of the State Comptroller (OSC) has first approved the purchase of such services on a single or sole source basis. In all other circumstances, consulting and training services must be procured competitively using the OGS IT Services (also known as Computer Consulting, Systems Integration and Training) contracts or other competitive process selected by the Authorized User.
One of the following procedures should be used when purchasing Product and/or services:
Annual Competition (particularly for PCs and printers) is Preferred
It is recommended that once a year the agency engage in either an aggregated buy through the Office for Technology or solicit best and final offers from all applicable contract sources in accordance with the agencys procurement strategy. If the agency anticipates placing multiple orders within the year, additional discounts or other concessions offered by the successful Contractor should apply to the future purchases.
Transactional Competition (for all new installations and otherwise as applicable)
If the agency chooses to solicit competition or negotiate for each purchase of product and related services, the following guidelines apply:
Orders up to $50,000: confirm best available pricing with Contractor of choice via fax or e-mail.
Orders over $50,000: solicit via fax or e-mail best and final offers as outlined above. In the event that multiple resellers participate in a given contract, the agency need only solicit a single reseller for each brand. If an agency has an established policy calling for standardization on a certain brand(s) and the planned acquisition will exceed $50,000, the agency must, if possible, solicit quotes from at least three qualified resellers under the contract for that brand(s) unless the agency can justify limited competition or single or sole source in accordance with the guidelines outlined below.
Agencies should select the offer that represents best value in accordance with the criteria outlined in their solicitation.
A Procurement Record should be prepared for any order exceeding $50,000 to include:
State agencies may then issue a purchase order directly to the Contractor (except for those situations where the agency is purchasing services only or is purchasing services which exceed 20% of the value of Product, and First Year's Maintenance, where applicable (the 20% Rule) and later file a copy of the order and Procurement Record with OSC to facilitate the payment process. For the purchase of services, as noted above, pre-approval of OSC is required before the order is placed with the contractor.
Non-state agencies must follow their own guidelines or legal requirements for competitive bidding and/or single/ sole source when services exceed the 20% Rule.
For the purposes of these guidelines, networks are being divided into three sizes, small, medium, and large. A site is defined as a single LAN whether located on one or more floors. A small network is defined as up to 15 sites or 100 LAN connected devices. A medium network is defined as 16 to 100 sites or 100 to 500 LAN connected devices distributed in multiple buildings and/or multiple locations such as a campus environment. A large network is defined as 100 plus sites or 500 plus LAN connected devices.
STEP 1 - Requirement is for networking hardware, software and related services.
When purchasing networking hardware and software keep the following things in mind:
Authorized Users may want to procure the services of a telecommunications consultant using the IT Services contracts to determine the answers to these questions. State agencies specifically may also contact the OGS Division of Telecommunications for consultation services.
1a. Requirement is for equipment including services if required, to be added to an existing system (same for all sizes of networks).
Refer to the contract that provides the correct manufacturers brand. This may be the brand specific Networking contracts. However, in some cases, for example, Nortel Networks routers, an Authorized User may want to purchase from an Office Automation contract such as Unisys if the routers are a part of a larger purchase being made from that Contractor or if the company is the Authorized User's major systems vendor.
1b. Requirement is for equipment including services if required, for a new system or the replacement of an existing system (same for all network sizes).
Solicit best-and-final offers from all contractors who can meet your requirements to determine the best value solution.
STEP 2 - Requirement is for professional services for networking.
Use the following guidelines when your agency is in need of professional services to assist your agency in the design, installation/troubleshooting, core design and configuration management of your network. Prior to selecting a consultant to provide professional services, make sure they are experienced and qualified on the manufacturer's brand you are installing.
2a. Installation of PC operating system software and/or application software.
Do not use professional services on the Networking contracts for the installation of PC operational software or application software. Refer to section for IT Services.
2b. Requirement is for networking professional services for a small size network
For a small size network, refer to section for IT Services. Include in your project definition a requirement for a consultant that has experience installing/maintaining networks of the same size and brand as your network. If you exhaust the consultant services list without finding a qualified consultant, refer to the professional services offered by the manufacturer on the Networking contracts. The cost for professional services should not exceed 20% of the cost of the network.
2c. Requirement is for networking professional services for a medium size network
For a medium size network, refer to section for IT Services. Include in your project definition a requirement for a consultant that has manufacturer certified engineers and experience installing/maintaining networks of the same size and brand as your network. If you exhaust the consultant services list without finding a qualified consultant, refer to the professional services offered by the manufacturer on the Networking contracts. The cost for professional services should not exceed 20% of the network cost.
2d. Requirement is for networking professional services for a large size network.
For a large size network, purchase the professional services offered by the manufacturer on the Networking contracts. Due to the complexity caused by multiple protocols and configurations, it is less likely that the IT Services contracts would be able to provide the necessary expertise. The cost for professional services should not exceed 30%-35% of the network cost.
STEP 3 - Requirement is for cabling for the network.
3a. Cabling requirement is for less than 10 network devices.
If there are special circumstances that would justify best value for the installation of network cabling on your network, refer to the Networking contracts. In general the Networking contracts should only be used in an emergency when time is of the essence and the Cable contractors are not available for immediate installation. This would be applied in cases such as unforeseen cable installation required on a major project where lost time would equate to increased project cost.
For normal installations refer to section on Cable.
3b. Cabling requirement is for more than 10 network devices or for fiber installation.
For all cabling installations that exceed 10 network devices or for fiber, refer to section on Cable.