INTRO TO PROCUREMENT - San Francisco

INTRO TO PROCUREMENTOffice of Contract Administration (OCA)

TOPICSPART 1. Procurement BasicsPART 2. SourcingPART 3. ContractsPART 4. Purchasing Process Summary2

PROCUREMENT BASICS3

GOOD USTConfidentialityProfessionalismImpartiality4

TYPES OF PURCHASES0104Commodities &General Services02ProfessionalServicesFor example:For example: FuelJanitorial services“Non Purchasing”05Accounting servicesEngineering designFor example: RentsGift CardsConstructionContractsRenovation, construction,repair, demolition of “PublicWork”Purchase Under Special AuthorityFor example:Grants to CBOs03 Health Related Commodities & ServicesMTA AuthorityCommodities & Gen. Services 10,0005

PURCHASING AUTHORITY01Commodities &General Services02ProfessionalServicesAdmin Code Chapter 21 & 6Admin Code Chapter 21(includes TechnologyMarketplace)Chapter 21Depts OCAOCA (with some exceptions)04“Non Purchasing”Various Code & Charterprovisions, policies, rules ®ulations05Chapter 6DeptsConstructionContractsAdmin Code Chapter 6Chapter 6 DepartmentsPurchase Under Special AuthorityFor example: Departments03Chapter 21ACharter Sec. 8ADelegated Departmental Authority (“Prop Q”)DepartmentsAdministrative Code Direct lifornia/administrative/administrativecode?f templates fn default.htm 3.0 vid amlegal:sanfrancisco ca sync 18

ENCUMBRANCESPursuant to the City Charter (Section 3.105) andAdministrative Code (Section 10.06), no officer or employeeshall bind the City to expend money unless there is a writtencontract or other instrument (e.g. a Purchase Order) andunless the Controller shall certify that sufficientunencumbered balances are available in the treasury, withinthe proper fund, to meet the payment obligations under suchinstrument as they become due.7

DIRECT PAYMENTS A Direct Payment is a payment request without anexisting encumbrance. Generally speaking, Direct Payments are a violation tothe City’s standard procurement practices anddepartments should refrain from them. However, DirectPayments are generally allowed under the followingscenarios: Claims Payroll Related Payments Court Related Fees Postage Dues & Subscriptions Refunds of Revenues andLiabilitiesPlease refer to CONTROLLER’S Policies & Procedures Section 3.6.4 Revolving FundReplenishment Trust & Agency Payments8

PURCHASING INSTRUMENTSSUPPLIERCONTRACTConstruction, professional services,commodity or general services "termcontracts," and other types ofcomplex procurements (grants,software licenses, etc.)Recurring, multi-year, and/or asneeded purchasesFormal (sometimes negotiated)agreementPURCHASE ORDEROne-time purchase of a definedquantity of goods or servicesEncumbers funds before orders areplaced with vendorsTYPES“Prop Q” PO (or “DPO”)Purchasing PONon-Purchasing POPO Release9

SOURCING10

COMPETITIVE SOLICITATIONS The City typically must use competitive biddingprocedures to select Suppliers– Low Bid– Request for Proposals– Request for Qualifications, etc. Acquisition of goods and services governed byCity Administrative Code and rules ®ulations:– Administrative Code Chapter 21– OCA Chapter 21 Rules & Regulations– Administrative Code Chapter 14B (Local BusinessEnterprise Requirements)– CMD Chapter 14B Rules & Regulations– Other: Chapter 19B,Chapter 12X, Chapter 12U,Environment Code Ch. 2 & 5 (Green Purchasing Requirements), etc.11

WAIVER OF COMPETITIVE SOLICITATION Chapter 21 allows competitivesolicitations to be waived undercertain circumstances: Only one source for thegood or service Proprietary articles Pilot project Reciprocal agreements Other. Waivers must be approved byOCA OCA’s Waiver Portal handlesthese requests:http://ccsfdt.service-now.com12

TECHNOLOGY PROCUREMENTSAll digital products that contain or transmit data and/or interact with the City’snetworks in some manner are deemed to be a Technology Purchase.Computer hardwareSoftware systemsSoftware maintenanceSoftware customization servicesTelecommunications All technology purchases MUST go through the OCA May be subject to review by the City’s Department of Technology (“DT”). Can NEVER be completed using Departmental Delegated Authority (aka Prop Q),even if under 10,000.Learn more special requirements for technology purchases in theTechnology Purchasing y-marketplace-contracts13

SUPPLIER COMPLIANCESuppliers must comply with the San Francisco Administrative Code Chapter12B Equal Benefits Ordinance – vendor must give equal benefits toemployees along with their domestic partners/spouses without discriminationExceptions to 12B can be made if:–––Supplier is sole source for the purchase (requires waiver from CMD)City has never spent 5,000 with supplier during any given fiscal yearSupplier has chosen to comply only for certain business locations (contract-by-contractcompliance)Suppliers must also comply with the Treasurer & Tax Collector’s (TTX)Business and Tax Regulation code, which requires every person engaging inbusiness within the City to register for business tax at:https://newbusiness.sfgov.org/vendor/Chapter 12B Direct Link: http://sfgov.org/cmd/how-complyPrerequisites for allPurchase Types14

OTHER SUPPLIER REQUIREMENTSDepending on the type of purchase, Suppliers may need to complywith additional regulations at the time of bidding and duringperformance of the contract: Chapter 14B Local Business Enterprise Ordinance – subcontracting to LBEs Administrative Code Chapter 12P – Minimum Compensation Ordinance (MCO) Administrative Code Chapter 12Q – Health Care Accountability Ord. (HCAO) Administrative Code Chapter 12U – Sweatfree contracting Administrative Code Chapter 12X – Prohibited states Administrative Code Chapter 83 – First Source Hiring Chapter 21C – Prevailing Wage15

CONTRACTS16

TYPES OF CONTRACTSPurchasingContract(Citywide ntractsConstructionContractNonPurchasingContract17

CH. 21 SOLICITATION THRESHOLDS & CONTRACT APPROVALS (NON-IT)CONTRACT APPROVALSOLICTATIONCOMMODITIESPROFESSIONAL SERVICES 129,000GENERAL SERVICES 129,000CONTRACT VALUE 10,000 10,000 – 129,000SOLICITATION TYPENo citationNo SolicitationRequiredInformalSolicitationEXPEDITED CSC* APPROVAL§(services only)n/an/an/ax 100kFORMAL CSC APPROVAL§(services only)n/an/an/a 100kx 100kCMD** LBE REQUIREMENTS***n/an/an/a 64.5kx 353k(MinimumCompetitiveAmt).OCA‡xx 706,000 10,000 10,000 – 129,000(MinimumCompetitiveAmt) 10,000 10,000 – 706,000(Threshold Amt.)FormalSolicitationNo citationx 100k 10M or 10 yearsBOS†ALL CH. 21 10M or 10 yearsx*Civil Service CommissionxxxANYNOCOMPETITIVESOLICITATION(sole source, etc.) 100kx 100kwaiver possible 10M or 10 years 10M or 10 yearsxwaiver required†Board of Supervisors**Contract Monitoring Division‡Office of Contract Administration***Local Business Enterprise subconsulting participation requirements§ OrBoard of Supervisors “Prop J” approval18

CONTRACT BOILERPLATESP-240 - Term Contract Template for CommoditiesP-540 - Software Maintenance TemplateP-250 - Purchase Order TemplateP-642 - Software Development TemplateP-245 - Term Contract Template for Gen. ServicesP-520 - Equipment Lease TemplateP-530 - Equipment Maintenance TemplateP-600 - Professional Services TemplateP-601 – Professional Services Template (Individuals)P-606 - Chapter 6 Professional Services TemplateP-650 – Prof. Services Amendment TemplateP-545 - Software Licensing TemplateP-648 - Software as a Service TemplateP-660 - Assignment & Assumption TemplateP-665 - Novation TemplateG-100 - Grant TemplateG-150 - Amendment Template19

OCA CONTRACT REVIEW – CHECKLISTS & PROCEDURESAll contracts submitted to OCA for review and signature mustcontain a completed checklist which can be found ting-checkliststemplates and submitted to OCA through ServiceNow. CL-100 (9-19): Services Contracts Certification Package Checklist CL-200 (9-19): Commodities/Software Contracts CertificationPackage Checklist CL-300 (9-19): Equipment Lease Contracts Certification PackageChecklist CL-400 (9-19): Assignment and Assumption or NovationCertification Packet Checklist20

OCA CONTRACT REVIEW – CHECKLISTS & PROCEDURES All Departmental Chapter 21contracts must be submitted toOCA for review and signature. Effective January 1, 2020,Departments must requestcontract review via OCA’s onlineContract Review Request Portal:http://ccsfdt.service-now.com/ Create the review request, andattach the relevant completedOCA Checklist prior tosubmitting.21

PURCHASING PROCESS SUMMARY22

NON-IT PURCHASING PROCESS: TYPICALPROFESSIONAL SERVICESCOMMODITY/GENERAL SERVICECOMMODITY/GENERALSERVICEPURCHASE TYPEREQUEST METHOD 10K(“PROP Q”)ONE-TIMEPURCHASEN/A 10KONE-TIMEPURCHASEREQUISITION 10KRECURRINGPURCHASEEMAIL OCA 10KDEFINEDSCOPE ORAS-NEEDEDN/A 10KDEFINEDSCOPE ORAS-NEEDEDN/ASOURCING METHOD3 QUOTES(RECOMMENDED)SOLICITATION(e.g. LOW-BID)SOLICITATION(e.g LOW-BID, RFP)N/ASOLICITATION(e.g. RFP, PODEPARTMENTPURCHASING POOCATERM CONTRACT PO RELEASEOCAP-600 CONTRACT PO RELEASEDEPARTMENT OCAP-600CONTRACT PO RELEASEDEPARTMENT OCA23

IT PURCHASING PROCESS24

IT PURCHASING PROCESS25

QUESTIONS?Contact /purchasing-and-contracting-guidelinesOCA Intro to Procurement Training (aka “Purchasing 101”) & Prop QTraining will be available on SF Employee Learning via theEmployee Portal26

P-245 - Term Contract Template for Gen. Services P-250 - Purchase Order Template P-520 - Equipment Lease Template P-530 - Equipment Maintenance Template P-600 - Professional Services Template P-601 – Professional Services Template (Individuals) P-606 - Chapter 6 Professional Services Template P-650 – Prof. Services Amendment Template