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Changes to the state's procurement process

April 3, 2012

  CURRENT LAW EXECUTIVE PROPOSALS FINAL
Lowest price procurement for commodities Lowest price procurement for commodities and services Exluded. No changes from current law.
Best value procurement for services Best value procurement for commodities and services. Allows for a quantitative factor to be taken into consideration for small businesses and M/WBEs Best value procurement for services. Allows for a quantitative factor to be taken into consideration for small businesses and M/WBEs
Commodities contracts shall be awarded on the basis of lowest price. OGS commissioner has the authority to determine procurement method for most cost savings to the state (Lowest price vs. Best value) Exluded. No changes from current law.
OGS commissioner is authorized to permit specific entities to make purchases of commodities through OGS centralized contracts. OGS Commissioner is authorized to permit "authorized users" to make purchases of commodities and services through OGS centralized contracts. OGS Commissioner is authorized to permit "authorized users" to make purchases of commodities and services through OGS centralized contracts.
Allows agencies to procure commodities independent of centralized contracts when the resultant price is lower Allows agencies to procure commodities and services independent of centralized contracts when the resultant price is lower Excluded. No changes from current law.
List of those allowed to purchase off of OGS centralized contracts Deleted in its entirety. Deleted in its entirety.
Investigative powers of OGS commissioner for gathering information from state agencies under this subdivision. Investigative powers of OGS commissioner for gathering information from state agencies under this Article (XI). Investigative powers of OGS commissioner for gathering information from state agencies, except those whose agency heads are not appointed by the governor, under this section (163).
Commissioner is authorized to permit specific entities to make purchases of services through OGS centralized contracts. Commissioner is authorized to permit "authorized users" to make purchases of services through OGS centralized contracts. Commissioner is authorized to permit "authorized users" to make purchases of services through OGS centralized contracts.
Lists the types of purchases local municipalities and others cab purchase through OGS centralized contracts and certain federal contracts including materials equipment, food products, supplies or services (pursuant to STF 161 & STF 167) Expands types of contracts municipalities can piggyback off to include commodities & technologies and allows them to piggyback off of other agency and department contracts. Expands types of contracts municipalities can piggyback off to include commodities & technologies and allows them to piggyback off of other agency and department contracts.
Centralized contracts for services may be procured by OGS at the request of state agencies; procurement council may require state agencies to procure services from certain centralized contracts. OGS can create centralized contracts for services at the request of state agencies or at the determination of OGS commissioner; would give OGS centralized contracts for services second priority. OGS can create centralized contracts for services at the request of state agencies or at the determination of OGS commissioner; would give OGS centralized contracts for services second priority for agency purchases except for those agencies where the head is not appointed by the governor.
Service contracts shall be awarded on the basis of best value. Allows for OGS commissioner to determine that specific service contracts would result in more cost savings if they used the lowest price procurement method. Excluded. No changes from current law.
If not available through a preferred source...Procuring agencies may purchase services through OGS centralized contracts or another agencies or they may request OGS procure desired service or  they may procure using their own contract or in conjunction with another agency. Also states the procurement council may require agencies to purchase certain services from centralized contracts. If not available through a preferred source…procuring agencies must purchase from OGS centralized contracts for services, if the contract does not exist they may request OGS to procure a service or they may procure from their own individual contract or in conjunction with another agency. Deletes procurement council may require agencies to procure certain services from centralized contracts. If not available through a preferred source…procuring agencies, whose heads were appointed by the governor, must purchase from OGS centralized contracts for services, if the contract does not exist they may request OGS to procure a service or they may procure from their own individual contract or in conjunction with another agency. Deletes procurement council may require agencies to procure certain services from centralized contracts.
Makes permanent electronic bid submissions for technologies and also adds it as the preferred option for commodities and services (unless an agency makes the determination that it would not lead to a fair and equal opportunity for vendors. Would allow electronic bid submissions for commodities, services and technologies. Extends electronic submission program from 4/1/12 to 3/31/15 and allows for the addition of commodities and services to the list of items agencies can procure and require electronic bid submission. Allows for agencies to undertake 85 such solicitations and 20 reverse auction s through electronic means in that timeframe; after the commissioner of OGS will prepare a report on the use of and give advice on future use. Reports will be published on the OGS website.
All procurements in excess of $15,000 must be advertised in the state’s procurement opportunities newsletter. All procurements in excess of $50,000 must be advertised in the state’s procurement opportunities newsletter. This would bring the threshold to be same as the thresholds for competitive bidding.   All procurements in excess of $50,000 must be advertised in the state’s procurement opportunities newsletter; this specifies SUNY and CUNY. This would bring the threshold to be same as the thresholds for competitive bidding.  
OSC has pre-audit review power over contracts by state agencies for contracts exceeding $50,000; pre-audit review for OGS contracts over $85,000. This means that the Comptroller must look over all those specified contracts and approve in writing within 90 days of submission to OSC before a contract can be executed.   Would except OGS centralized contracts from pre-audit review and all orders and transactions issued under those centralized contracts from OSC pre-audit review. Would except OGS centralized contracts from pre-audit review and all orders and transactions issued under those centralized contracts from OSC pre-audit review.
Establish and amend guidelines with respect to state agencies’ quarterly publishing of projected procurements between $5,000 and $15,000 in the newsletter N/A Increases maximum from $15,000 to $50,000 (non-competitive)
Defines “procurement contract” to mean any written agreement entered into by an agency for goods, services or construction of any kind in the actual or estimated amount of $15,000 or more; does not include an agreement for employment in civil service. N/A Increases threshold to $50,000
Requirements for SUNY/CUNY contracts between $10,000 and $20,000 for which they must make a quarterly listing of projected procurements by commodities.   Increases threshold to $50,000
N/A  New Provision   When an agency enters into a contract with a single or sole source provider pursuant to STF 163 in excess of $50,000 will announce in the procurement newsletter and shall disclose the recipient.
Despite receiving an exemption from the newlsetter, all agencies must, as soon as practicable, unless the Comptroller determines it would interfere with a law enforcement investigation or a security operation, report the letting or award of the contract and the reason for the exemption in the newsletter.   Adds that for non-competitive awards, the notice shall also state the recipient, the purpose of the contract, the term and estimated value of the contract.
Authorizes OGS commissioner with general supervision over the letting of all contracts and may establish standard sizes and grades of paper. Authorizes OGS commissioner to create centralized contracts for printing (pursuant to STF 163) and also allows that they can establish standards in accordance with STF 163 and 165.3. Allows for agencies to purchase from centralized contracts or pursue their own if the CC does not meet their needs. Allows printing contracts to be awarded either on best value or lowest price. Increases the threshold for OGS printing contracts via competitive bidding to $85,000 and $50,000 for state agencies, which is consistent with other competitive bidding thresholds and public notice requirements (also sought in this proposed budget) Authorizes OGS commissioner to create centralized contracts for printing (pursuant to STF 163) and also allows that they can establish standards in accordance with STF 163 and 165.3  Allows for agencies to purchase from centralized contracts or pursue their own if the CC does not meet their needs. Printing will be awarded by means of lowest price procurement. Increases the threshold for OGS printing contracts via competitive bidding to $85,000 and $50,000 for state agencies, which is consistent with other competitive bidding thresholds and public notice requirements (also sought in this proposed budget).
Allows for purchases of materials, equipment, or supplies through OGS centralized contracts for purchases over $500 Would expand list to include commodities and services. Allows those organizations to make purchases of commodities and services through OGS, for contracts over $500; includes printing.
Allows for purchases, except printed material, through the state divisions of standards and quality control, and through OGS, for purchases over $500 Allows for purchases of commodities and services through OGS for purchases over $500; includes printing. Allows those organizations to make purchases of commodities and services through OGS, for contracts over $500; includes printing.
Museums, aquariums, historical societies and the like may make purchases, except of printed material though the state division of standards and purchases for purchases over $500 Allows those organizations to make purchases of commodities and services through OGS, for contracts over $500; includes printing. Allows those organizations to make purchases of commodities and services through OGS, for contracts over $500; includes printing.
Allows any post secondary institution  to make purchases, except printing, through the division of standards and purchases and OGS commissioner may establish limitations with respect to commodities to protect the state's own purchasing interests; for purchases over $500 Would allow purchases through OGS for commodities and services and would allow the commissioner to establish limitations with respect to commodities and services to protect the state's own purchasing power; for purchases over $500. Includes printed materials Allows those organizations to make purchases of commodities and services through OGS, for contracts over $500; includes printing.
Local municipalities and school district, fire company or volunteer ambulance service can make purchases of materials, equipment, food products, supplies or services, excepts printed material, through OGS or certain GSA contracts; for purchases over $500. Would allow purchases of commodities and services through OGS or federal GSA; for purchases over $500. Includes printed materials. Allows those organizations to make purchases of commodities and services through OGS, for contracts over $500; includes printing.
Allows certain public associations, such as the Association of Counties, School Board Association, Association of Towns, nonpublic elementary and secondary schools, libraries to make purchases, except printed material, through OGS; commissioner may establish limitations to commodities to protect state's own purchasing power. Allows these public associations to purchase through OGS and allows for purchases of printed material. Allows these public associations to purchase through OGS and allows for purchases of printed material.
Allows charitable organizations to make purchases of commodities, except printing, through OGS; for purchases over $500 Allows for purchases of commodities and services through OGS for purchases over $500; includes printing. Allows for purchases of commodities and services through OGS for purchases over $500; includes printing.
Defines service to mean the performance of a task(s) and may include a material good or a quantity of material goods; does not include contracts for printing. This definition of services does not apply to contracts for architectural, engineering or surveying services. Defines services to mean the performance of a task(s) and may include a material good or a quantity of material goods, deletes exception for printing contracts. Defines services to mean the performance of a task(s) and may include a material good or a quantity of material goods, deletes exception for printing contracts.
Lists what SUNY trustees are authorized to purchase without prior approval by an state officer or agency. Expands the list to include for proprietary electronic information resources Expands the list to include for proprietary electronic information resources
list of items SUNY trustees can purchase when it is a single purchase that does not exceed $20,000 without prior approval. Expands the list to include for proprietary electronic information resources Expands the list to include for proprietary electronic information resources
Lists what CUNY board of trustees are authorized to purchase without prior approval by an state officer or agency. N/A Expands the list to include for proprietary electronic information resources
list of items CUNY trustees can purchase when it is a single purchase that does not exceed $20,000 without prior approval. N/A Expands the list to include for proprietary electronic information resources
Defines commodity to mean material goods, supplies, products, construction items or other standard articles of commerce other than technology. Expands definition to include electronic information resources and deletes printing & technology exemptions. Expands definition to include electronic information resources and deletes printing & technology exemptions.
N/A  New Provision Defines authorized user and non-state agency purchaser to mean any officer of the state or of a political subdivision or a district therein, or a fire company or volunteer ambulance service, non-profit, public authority or benefit corporation, librbary etc.; allows them to make purchases of commodities, services and technology through OGS centralized contracts Defines authorized user and non-state agency purchaser to mean any officer of the state or of a political subdivision or a district therein, or a fire company or volunteer ambulance service, non-profit, public authority or benefit corporation, librbary etc.; allows them to make purchases of commodities, services and technology through OGS centralized contracts
N/A  New Provision The Comptroller may require any contract that is modified and results in the contract being equal to or greater than 10% of the total value of the orginal contract to be submitted for review; all other modified contracts as long as they  Allows modified contracts that result in a transfer of funds among budget program activities or budget cost categories but that doe not affect the scope, amount or other terms will not be required to be submitted to the comptroller for review; modified contracts that are equal to or greater than 10% of the original contract (for contracts less than $5 million) or 5% (for contracts more than $5 million) may be required to be reviewed by the OSC.
N/A  New Provision Allows for term appointments of professional, scientific, technical or other expert services N/A
Relates to the "Office for Technology" Renames OFT Office of Information Technology Services Renames OFT Office of Information Technology Services