Preparing Purchasing Documentsfor Fiscal Year 2010-2011

Judy Wong, Supervising Purchaser

June 3, 2010

Office of Contract Administration

Purchasing

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What’s New

• Direct Voucher limit is raised to $1,000• Using certified LBEs for Departmental

blankets that are $10,000 and below• Encouraging electronic payments to

vendors• Effective June 1, May 2010 revision of all

City’s Model Contracts must be used

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FAMIS-Purchasing Document Posting dates

• Online depts.– June 7

• Create FY10-11 BPOs: Effective date must be 7-1-2010 or later

• DB: annual stuff, etc.

• CB: prof svc, etc.– June 7

• Posting “DB”– June 14

• Posting “CB”– July 1

• Posting Purchase Order Releases

• Non-online depts.– June 7

• FY10-11 Departmental Blankets, Contract Blankets and Release Forms to Purchasing for review and approval

Processing Reminders

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Departmental Blanket Purchase Orders (BPOs)

• Obtain approval for future purchases from a vendor for a time and dollar limit.

• BPOs do not encumber funds, PO Releases do.• Two types: CB (contracts) and DB (small daily

purchases).• CB: used for signed formal contracts, such as

professional services, equipment maintenance and lease agreements, or software-related purchases. - One BPO for one contract and amendments.

• DB: used for one year, repetitive purchases over $10,000.

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Departmental Blankets (“DB”)• OCA will not accept departmental blankets below

$10,000 unless the recommended vendor is an LBE.• Check HRC’s database of certified LBEs for possible

vendors.• State in the Notepad if the vendor is an LBE and why

the purchase is not biddable.• Obtain favorable terms from LBE vendors and include in

the blanket specs:– Discount Pricing off of retail– Prompt Payment discount– FOB Destination Point “preferred”– Delivery lead time– Description of the product or service– Account number– Insurance, if required

• Check Commodity code and title of blanket for accuracy.

Departmental Blankets (“DB”) cont’d

• Include the following information in the notepad:- Reasons why the purchase is not biddable- If the vendor is not an LBE, did you check

HRC’s database of certified LBE’s for possible vendors? If not, why not?- If the vendor is not an LBE and if HRC’s database contained certified LBEs that provide the product or service, why were you not able to use one as the recommended vendor?

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Professional Service and Maintenance

Agreements (“CB”)• Professional Services, Equipment

Maintenance and Lease Agreements, or Software-related purchases must be established in ADPICS as BPOs.

• Include the contract P-500 or P-501 Checklist, and complete attachments (with the ADPICS document numbers), such as, sole source waiver, current insurance and additional insured endorsements, and Board approval if greater than 10 years or greater than $10 million.

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Purchase Order Releases against BPOs

• Must issue PO Releases against Blankets to encumber funds before orders are placed with vendor (Charter §3.105).

• PO Releases created in ADPICS, Screen 2360.

• Invoicing: Single Order or Progress Payment.

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Transactions in FAMIS Accounting• Construction (with liens or retention)• Refunds• Claims• Employee reimbursement• Court-related payments• Memberships• Official Advertising• Postage• Dues• Periodicals• Subscriptions• Utilities• Training

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Direct Voucher (DV/DV) Processing

• Effective July 1, the dollar threshold for DVs that go through OCA/Controller is raised from $200 to $1,000.

• DV/DV payments for small purchases less than $1,000, no OCA/Controller review.

• DV/DVs $1,000 or over are reviewed by OCA/Controller and departments must provide justification in the note pad.

• All transactions must be with compliant vendors.• All DV transactions will be part of post-audits by

the Controller and OCA.

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Delegated Departmental Purchasing

(formerly known as Prop Q)• Departments issue direct POs following the DDP

guidelines for up to $10,000 (tax and shipping included).

• Products (includes chemicals) and General Services. • No professional services, computer IT

equipment/services, construction, term contract items, lease purchase, or vehicles.

• No order splitting.• Responsibility of the issuing department.• Purchasing Authority codes are PROPQ-BID or

PROPQ-NO BID.• Department Heads submit a roster of the employees

who are authorized, and those employees should file Form 700, Statement of Economic Interests, each year.

• Employees are required to attend Training Classes.• Post-audits by Controller and OCA.

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Approval Path Requirements

• Documents in ADPICS and FAMIS-Accounting must be approved online by at least one departmental approver.

• The approver must be different than the initiator.

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Post-audits

• Controller and OCA• Delegated departmental purchase orders - attention to instances of possible order

splitting to avoid the $10,000 order limit.• Direct Vouchers

- attention to repetitive purchases that should be made on departmental blankets or delegated departmental purchase orders.

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Paying Invoices• 3-way match: purchase order, packing

slip, and invoice.• Descriptions, quantities and prices must

match.• Invoice signed by someone other than

the person who placed the order and other than the person who received the order.

• Approved invoice to Accounting for payment.

• Accounting reviews invoice and signs as approved.

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Citywide Term Contracts• Products and general services, such as,

office supplies, fuel, Technology Store, and the CopySmart program

• Ordering term contract items only from the term contract vendor

• PO releases against the City BPO • Ordering person must be different from

the person who approves the invoice• Listing is posted in the Document

Library

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OCA Sole Source Waiver Form

• It’s required for transactions over $10,000 if there’s no bidding or Admin. Code exception.

• Submit the form before you submit a requisition or blanket to OCA.

• Follow the form’s instructions and answer all questions.

• Include the transaction number when possible.• If the transaction is for services, include HRC’s

14B waiver.• Include the approved waiver when submitting

the FAMIS-Purchasing transaction.• Plan ahead; don’t assume that the waiver

request will be approved.

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Documentation for Master and Multi-year Contracts

• Competitive bids required if greater than $10,000, unless an exception applies.– Approved by an OCA Sole Source Waiver

(includes §21.30 software).– Admin. Code, §§ 21.5, Other Purchases,

21.16, Reciprocal or Other Public Agencies.

• Contracts over 10 years or that cost $10 million or more, must have Board approval.

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Transactions funded by Federal and State Grants

• Federal funded transactions have bid and contract terms different from the City’s standard terms.

• Failure to follow grant guidelines could result in audit findings, or worse, having to return money.

• Always identify federal funded projects in the notepad and alert the buyer.

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American Recovery and Reinvestment Act (ARRA)

• Have different bid and contract terms and may vary on the source of the ARRA.

• Reporting requirements are significant, and departments should plan in advance to make sure they can meet the requirements.

• Post your bid on OCA’s website and use the ARRA funded indicators.

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Submitting a REQ or BPO to OCA for Processing When the Funding Source is

ARRA:• Follow the Controller’s guidelines for accounting.• In the notepad, flag that ARRA funds are being used.• Email or call the buyer in OCA to review (will require

special bid and contract terms).• Allow adequate time because of different bid or sole

source requirements.• If the transaction is a bid, indicate the Purchasing

authority as “ARRA-BID.”• If the transaction is a sole source, then indicate the

Purchasing authority as “ARRA-NOS.”• Remember to plan ahead.• Remember to plan for reporting deadlines.

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Technology Store and IT Purchases

• August 2009, New DT procedures for reviewing IT-related purchases.

• New kind of requisition, “Purchasing Type RT.”

• When you post the requisition, e-mail the approved quote form to cio.review@sfgov.org, or fax the form to 581-3900.

• Input information to requisition as it appears on the quote, with quantity, part numbers, and complete detailed descriptions.

Technology Store and IT purchases are processed by the IT buyers. Include the following items with the requisition:

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Technology Store and IT Purchases cont’d

• Do not input all items on one line with a total dollar amount.

• For monitor orders, always add an additional line item for recycling charges.

• After last line item: input the quote number, person quoting, expiration date and Technology Store fee.

• If it’s for services, notify Local 21 via its website: http://www.ifpte21.org/sfitchapter/psc_info_request.shtml

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CopySmart Contract

• Significant savings when renewing your copier lease beyond the initial 3-year term.

• City contract vendors: Konica-Minolta, Ricoh and Xerox

• Monthly rental cost will decline by at least 50% beginning in the fourth year of the contract.

• For more information, contact:James Flowers, Senior Purchaser, 554-6740

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For assistance, please contact the IT buyers: • Diane Handa, Purchaser, 554-6913

diane.handa@sfgov.org • James Flowers, Senior Purchaser, 554-6740

james.flowers@sfgov.org• Patrick Rice, Senior Purchaser, 554-6734

patrick.rice@sfgov.org• Jaci Fong, Supervising Purchaser, 554-6701

jaci.fong@sfgov.org

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Vehicle and Heavy Equipment Purchases

• Screen print FAMIS-Purchasing requisition.• Separate line item for tire tax and extended warranties.• Approved equipment budget number, substitution

approvals, carry forward approvals, etc.• Fleet approval from Tom Fung, Director of Fleet

Management.• Clean Air Approval from Environment unless the vehicle

is electric, fueled by compressed natural gas, or Hybrid.• Approved technical specifications by Fleet Management

with an e-mail copy (Word document attachment) to the fleet buyers.

Vehicles and heavy equipment are processed by the centralized fleet buyers. Include the following items with the requisition:

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For assistance, please contact the fleet buyers:

• Daisy Aguallo, Senior Purchaser, 554-6714daisy.aguallo@sfgov.org

• Jennifer Snyder, Supervising Purchaser, 554-4751 jennifer.snyder@sfgov.org

• Judy Wong, Supervising Purchaser, 554-6258judy.wong@sfgov.org(for specialized emergency vehicles)

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Vendor Compliance Reminders • Business Tax Status

– ADPICS screen 9560. Contact Tax Representative, 554-6718, or general tax assistance, 554-4400.

• LBE compliance affidavit (HRC Form 3) – services only– Required to the extent Local Business Enterprise program

applies (Chapter 14B). Keep the original in your contract files.• Equal Benefits Ordinance. ADPICS screen 9560.• Vendor must be in the vendor file, and so must have

submitted the W-9.• Minimum Compensation Ordinance (MCO), services

only– http://www.sfgov.org/olse or call 554-6237

• Health Care Accountability Ordinance (HCAO), services only– http://www.sfgov.org/olse or call 554-6237.

• Sweatfree Contracting – Garments (www.sfgov.org/oca) • Slavery Era Disclosure Ordinance – Textile, financial,

insurance

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Copying a Blanket Purchase Order

• Instructions posted on Controller’s intranet website

• http://conpolicy

• Need help, call ADPICS Help Desk, 554-7878

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