PROCUREMENT

TRAINING 101

City of New Orleans

Presentation to Department of Finance

March/April 2021

City of New Orleans

Department of Finance

Office of Procurement – Bureau of Purchasing

Julien Meyer, Chief Procurement Officer

Presenters and Contributors

Kai Wells

Stephanie Warren

Cheryl Morgan

Deniece Andrews

Bernice Ealy

Seth Leger

Tania Laurent

Demetris Barrow

Douglas Chastain

Alvin Anderson

Haley Slocum

Kimberly Crawford

Agenda

The Bureau of

Purchasing

Objectives of the Training

Let’s Break the Ice

Commonly Used Terms

Statutory Requirements

Preliminary Steps

Types of Needs

Procurement Methods

Alternative Methods of

Procurement

Exempt Purchases

Role of BRASS

Do’s and Don’ts

Learn/Find More

Forms

Questions

Post-Survey

Bureau of Purchasing

The Bureau of Purchasing is housed in the City's Finance Department and

serves as the central authority for all City Departments, Boards, and

Commissions' procurement and purchasing needs.

The Bureau of Purchasing strives to modernize procurement and

contracting procedures, implement a fair and transparent procurement

process while engaging local businesses, and maximize purchasing value

by applying best practices.

Finally, the Bureau of Purchasing adheres to the "Values and Guiding

Principles of Public Procurement" adopted by the National Institute for

Public Procurement ("NIGP"): Ethics, Impartiality, Accountability,

Professionalism, Service and Transparency.

Training Objectives

Demystifying the procurement process by:

1. Increasing participants familiarity with the basics of

procurement.

2. Helping participants to overcome challenges.

3. Describing the basic rules and regulations as relating to

procurement.

LET’S BREAK THE ICE

Procurement Buzzword Here is your Procurement Buzzword Bingo Card. Simply cross off each word as soon as it comes up in your head to these questions. As soon as you have completed a row, or column or diagonal line. - Bingo!

Commonly Used Terms

Procurement: the process involved to solicit supplies, materials,

equipment or services by renting, leasing, or purchasing.

Purchase: the act of acquiring supplies, materials, equipment or

services.

Solicitation: a request to obtain supplies, materials, equipment or

services and related pricing.

Event: a solicitation posted by the Bureau of Purchasing on the

Supplier Portal.

Commodity Codes: standard classification codes for products and

services used to detail where money is spent within a company.

Service: an identifiable task contracted for and performed by a third

party rather than a city employee.

Commonly Used Terms (cont.)

Bid: an offer in response to an invitation to bid.

Proposal: an offer for consideration in response to a request for

proposal.

Purchase Order: an offer to buy or lease that creates a legal and

financial obligation.

Requisition: a formal request from a department to purchase goods

and/or services.

Bid Contract: a written contract resulting from an Invitation to Bid.

Professional Services Agreement: a written contract resulting from a

Request for Proposals or Qualifications.

Statutory Requirements

State Statutes Example: Public Bid Law for public works and materials and supplies.

City Charter Example: Section 2-8(a) - The City cannot execute a contract with a party that owes

delinquent taxes to the City.

City Code Example: Section 70-420 – A sale to a department without a purchase order is forbidden.

CAO Policy Example: CAO Policy No. 24 on Movables and Non-Professional Services.

Purchasing Policy and Procedure Example: City’s Federal Grant Procurement Policy.

Federal Regulations Example: 2 CFR 200.320 Methods of Procurement to be Followed.

WHERE DO I BEGIN?

Identify your Funding Source City? State? Federal? Private Grant? Public Grant?

Are there any specific rules linked to the funding source?

Identify your Budget How much do you plan on spending?

How can I find out the cost of what I need?

Identify your Timeline When do you need to have the goods in hand or services rendered?

Do you have a contract with an incumbent vendor? If yes, when does it expire?

Is it a one-time purchase or a repetitive purchase?

Identify your Needs How do I know what I need to purchase?

HOW DO I KNOW WHAT I

NEED TO PURCHASE?

If I can hug it, feel it or move it, I need “Goods.” Examples: Chairs, Computers, Office Supplies, Fuel Truck.

If I need a service to be performed by someone without a

formal degree, I need “Non-Professional Services.” Examples: Janitors, Private Security Officers, Caterers, Mechanics.

If I need a service to be performed by someone with a

degree or specific license, I need a “Professional

Service.” Examples: Architects, Engineers, Appraisers, Lawyers.

If I need to build, alter, improve, or repair a city building,

it is a “Public Works” project. Examples: New Playground, Roadwork, HVAC Repairs.

Purchasing Says

Trivia Game Inspired by

What are the four factors to consider

before you begin the procurement

process?

Funding Source

Timeline Need

Budget

HOW DO I PURCHASE

WHAT I NEED?

WHAT ARE THE TYPES OF

PROCUREMENT?

Goods and Non-Professional Services One-time purchase or per calendar year for $1,000 or less

Invitation to Quote (ITQ) for purchase more than $1,000 but less than $20,000

Invitation to Bid (ITB) for purchase at $20,000 or more

Professional Services One-time purchase or per calendar year for $15,000 or less

Purchase over $15,000:

Request for Proposals (RFP)

Request for Qualifications (RFQ)

Public Works Informal ITB if project budget is $150,000 or less

Formal ITB if project over $150,000

PURCHASE FOR $1,000 OR LESS Goods and Non-Professional Services

1 – WRITTEN QUOTE(S)

3 – AUTO GENERATED PURCHASE ORDER (PO)

5 – VENDOR PLACES ORDER

6 –SERVICES/GOODS RENDERED/RECEIVED

7 – RECEIPT, INVOICE, AND SERVICE INVOICE

APPROVAL

START HERE

2 – REQUISITION, ATTACHMENT, AND

APPROVAL

4 – PO ISSUED UNLESS INCOMPLETE

8 – PAYMENT NET30 FROM

DATE OF INVOICE

INVITATION TO QUOTE PROCESS Goods and Non-Professional Services

More than $1,000 but less than $20,000

3. CREATE AND RELEASE ITQ 4. QUOTES AND RECOMMENDATION

FROM DEPARTMENT

5. AWARD AND PURCHASE

ORDER

6. SERVICES/GOODS

RENDERED/RECEIVED

1. FUNDING, BUDGET, TIMELINE,

AND NEEDS

7. RECEIPT, INVOICE, SERVICE

INVOICE APPROVAL AND

PAYMENT NET 30 FROM DATE

OF INVOICE

2. INTAKE FORM, SPECIFICATIONS,

AND REQUISITION

START HERE

INVITATION TO BID PROCESS Goods, Non-Professional Services, Public Works

3. ITB CREATED, RELEASED,

ADVERTISED AND PRE-BID

CONFERENCE

4. BID OPENING, RESPONSIVENESS CHECK,

DBE REVIEW, AND RESPONSIBILITY CHECK

5. RECOMMENDATION, AWARD

AND WRITTEN CONTRACT

6. SERVICES/GOODS

RENDERED/RECEIVED

1. FUNDING, BUDGET, TIMELINE,

AND NEEDS

7. RECEIPT, INVOICE, SERVICE

INVOICE APPROVAL AND

PAYMENT NET 30 FROM DATE

OF INVOICE

2. BID PROCUREMENT

AUTHORIZATION,

SPECIFICATIONS, AND

REQUISITION

START HERE

INVITATION TO BID Main Characteristics

SEALED BID

Bids are kept confidential and opened in public

ADVERTISEMENT

30 days

LOWEST BIDDER

Bid tabulation

RESPONSIVE

Does the bidder meet the requirements?

Did the bidder follow the bid instructions and provide all the required documentation?

RESPONSIBLE

Can the bidder do the job or provide the goods?

If not, an informal hearing must take place

NOTIFICATION OF AWARD

Intent to Award Letter and Award in BRASS

WRITTEN CONTRACT

City and the successful bidder must execute a written contract

NO CHANGES ALLOWED

Unless there is a specific provision that contemplates changes (example: escalation clause)

PROFESSIONAL SERVICES $15,000 OR LESS

1 – WRITTEN PROPOSAL(S)

3 – WRITTEN PROFESSIONAL SERVICES AGREEMENT

EXECUTED BY VENDOR AND MAYOR

5 – VENDOR SUBMITS INVOICE IN BRASS

6 – DEPARTMENT APPROVES INVOICE IN BRASS

7 – PAYMENT NET30 FROM

DATE OF INVOICE

START HERE

2 – MANUAL CONTRACT PROCESS IN

BRASS

4 – WORK BEGINS

PROFESSIONAL SERVICES Over $15,000 – RFP/RFQ

3. RFP/RFQ CREATED, RELEASED,

ADVERTISED, AND PRE-PROPOSAL

CONFERENCE

4. PROPOSAL DEADLINE, RESPONSIVENESS CHECK,

AND SELECTION COMMITTEE MEETING

5. SELECTION, AWARD,

NEGOTATION, AND CONTRACT

EXECUTION

6. NOTICE TO PROCEED AND

SERVICES RENDERED

1. FUNDING, BUDGET, TIMELINE

AND NEEDS

2. PROCUREMENT

AUTHORIZATION, SCOPE OF

WORK, CHECKLIST, AND

REQUISITION

START HERE 7. INVOICE, INVOICE APPROVAL

AND PAYMENT NET30 FROM

DATE OF INVOICE

REQUEST FOR PROPOSALS Main Characteristics

ADVERTISEMENT 30 days

BEST VALUE Technical criteria (experience, competence, past project, team, etc.)

RESPONSIVE Did the respondent provide all required documentation?

REFERENCE AND FINANCIAL CHECK Department can ask for additional information

SELECTION COMMITTEE Proposals evaluated in a public meeting which can end with a selection

NOTIFICATION OF AWARD Intent to Award Letter and Award in BRASS

NEGOTIATION The City can negotiate the terms and conditions with the selected respondent

WRITTEN CONTRACT City and successful respondent must execute a written contract

ALTERNATIVE METHODS OF

PROCUREMENT

UNIQUE OR NON-COMPETITIVE Sole source or no responses to competitive solicitations

Warning: Federal regulations refer to “single source”

PIGGYBACK Procurement by another political subdivision

Example: contract for uniforms with Jefferson Parish

STATE CONTRACT Procurement by the State of Louisiana

Example: State Contract with HP for computers

EMERGENCY Declaration(s) by the Federal Gov’t, State, City or City Council

EXEMPT PURCHASES Some items cannot be competitively procured

EXEMPT PURCHASES

Inter-Department Billing

Advertising with a media to target a specific audience

Membership fees and dues

Newspaper and magazine subscriptions directly from the

publisher

Utility services

Settlement claims

Disbursement of funds to governmental bodies

WHAT IS THE ROLE OF BRASS IN

PROCUREMENT?

QUOTE, INFORMAL AND

FORMAL EVENTS QUOTES, PROPOSALS, BIDS AND AWARD

PURCHASE ORDER OR

WRITTEN CONTRACT

RECEIVING AND

INVOICE APPROVAL

SUPPLIER PORTAL

PAYMENT

BUDGET AND REQUISITION

Purchasing Says

Trivia Game Inspired by

What are the alternative methods of Procurement?

Unique or

Non-Competitive

Piggyback State Contract

Emergency Exempt Purchases

DO’S AND DON’TS

DO plan for your purchases and

projects.

DO get multiple quotes even when

competition is not required to

document your efforts to get a

reasonable and competitive price.

DO have all the required

documentation and information

necessary to assist buyers in

understanding the requisition.

DO prepare specifications/scope of

work, allowing multiple vendors to

compete.

DO check the DBE certification

directory to offer opportunities when

competition is not required.

DO NOT split a purchase or project to

avoid a competitive process.

DO NOT place an order without a

purchase order or written contract

DO NOT fail to disclose if you have a

relationship with a vendor that could

create a conflict of interest in fact or in

appearance.

DO NOT consider a vendor a “sole

source” unless you can document that

there is truly no other vendor offering a

product or service that meets the

City’s minimum requirements.

WHERE CAN I LEARN OR FIND

MORE?

OUR PAGE: www.nola.gov/purchasing

PUBLIC BID LAW: See Louisiana Legislative Auditor at www.lla.la.gov

STATE CONTRACTS: See Office of State Procurement at

www.doa.la.gov/pages/osp/index.aspx

CITY CODE: Municode Orleans Parish at

https://library.municode.com/LA/New_Orleans

WHERE ARE THE FORMS?

NEUTRAL GROUND

Under “Documents and Forms”

https://employee.nola.gov/forms/downloads/

MING.LE

It is the platform for communication in BRASS

The below screenshot shows the symbol for Ming.Le Home Page

More on Ming.Le at Find and Follow a Sourcing Event (nola.gov)

CONTACT YOUR BUYER

QUESTIONS

POST TRAINING SURVEY

We would love to get your thoughts regarding the

effectiveness of this training and any constructive

criticism you may have to aid in the improvement of the

training.

Please take a few minutes to complete our Post Training

Survey so we can collect your thoughts.