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DIVISION
OF
PURCHASES
POLICY
&
OPERATIONS
MANUAL
Revised June 21, 2012
TABLE
OF CONTENTS
General Functions and Procedures
General Intra-Office Information and
Policies
Appointments with Vendors and Other
Customers
Relations with the State Legislature
Competitive Quotations (Commodities)
Master Agreement (MA) Extension
Guidelines for Processing Dues/Subscription
Payments
Procurement
Card Program Policy
How Does the Procurement Card Work?
Maximum Spending Limits on Procurement Cards
Cardholder Transfer within the Same
Department
Cardholder Separation from the State
Unauthorized and/or Inappropriate Card Use
Consequences of Unauthorized and/or
Inappropriate Card Use
Merchandise Returns and Exchanges
Payment of Receivable (RE) Processing Credit
Card Payments
Lost, Stolen, or Damaged Procurement Cards
Procurement Card Audit Procedures
for Approvers
General Functions and Procedures
The Division of Purchases provides procurement and related
services for all State agencies. The
Division ensures that all purchases are made in an atmosphere of open
competition. The goal is to fulfill the
State's material and related service needs at the best value for the State of
The authority of the department is detailed in Title 5,
Chapter 155 of the MRSA. The Division of
Purchases is a part of the Bureau of General Services. The Division procures or provides all
supplies, materials, equipment, printing, and other services for the State
government. It prescribes procurement
specifications and inspects and tests products. The Division also supervises the procurement
process for all State agencies.
The basic procurement policies and procedures are as
follows:
·
The process of competitive
bidding is to be used whenever possible;
·
State standards for
specifications are to be used, as well as federal standards if they coincide
with State needs;
·
The procurement of
materials/services representing the best value, taking into account initial
cost, suitability for intended purpose, operating cost, maintenance cost,
delivery, and time;
·
The bidders and ordering
agencies are invited and encouraged to comment freely on policies, procedures,
product details and the format of bid invitations.
General Intra-Office Information
and Policies
The office is open from 8:00 AM to 5:00 PM, Monday through
Friday. The office maintains attendance,
vacation, sick leave and overtime records.
Vacation
A vacation schedule is made up in April of each year. Personnel should submit their requests at
that time. Additional request will be
accepted with appropriate notice and will be granted if operational needs are
met. A form exists for this purpose.
Sick Leave
Sick leave is available to all employees as accrued monthly
by contract. This is designed to
alleviate any loss of income due to illness.
Employees should report an absence to their supervisor no later
than 8:30 AM. Employees should update the office calendar on a daily basis.
All staff members should inform the receptionist and their
supervisor of location and length of temporary absences. Supervisors must let
front desk know of absences of subordinates.
Any unauthorized absence may result in the loss of pay and disciplinary
action may be taken. Three consecutive
unauthorized absences imply resignation but the absences may be covered by a
subsequent grant of leave without pay. Any waiver may be granted by the
director.
All employees are entitled to one fifteen minute rest period
every four hours. No more than thirty
minutes per day is allowed. The breaks
cannot be taken in the first or last hours of work and the time is not
cumulative.
All injuries occurring at work must be reported to the
supervisor as soon as possible. Supervisors are responsible for observing and
reporting any unsafe working conditions or environments.
Communications
All personnel are to be informed promptly and fully of
policies, plans, and changes which relate to their work. Changes must be posted before they become
effective as required by bargaining agreement.
Supervisors shall ensure that their instructions are effectively
transmitted to their employees. They
should encourage employee participation in proposed changes in organization,
policies and procedures which affect their work. Employees have the responsibility to relay
information to other employees who need the information to complete their
functions.
Intra-Office communications are handled through email,
memoranda personal and staff meetings.
The staff meetings are to be held at reasonable intervals or as required
to discuss current trends, problems, performance improvements, procedural
changes, etc.
All correspondence, including requisitions, is to receive a
response or be acted upon within five working days from the date received. Any delay should be acknowledged and the
reason(s) for the delay should be forwarded to the appropriate party.
Employees should respond to all requests for service in a
polite and professional manner within 2 working days of receipt.
Appointments with Vendors and
Other Customers
When an individual calls on a Buyer, the receptionist
notifies the buyer of his/her arrival.
The receptionist should state the individual's name, firm, and the
purpose of the visit (appointment, pick up bid, order, etc.). Callers should be received promptly. The buyer should inform the receptionist of
any delays. If the delay is to be more
than fifteen minutes, then the appointment should be rescheduled. Appointments should be strictly controlled to
keep work interruption to a minimum.
At times some incoming phone calls may be answered by the
front office. The front office will ask
the name of the person calling and pass the call along to voice mail or the
appropriate buyer. An attempt will be
made to route personal calls directly to the appropriate person. The number and length of personal calls must
be minimized.
Employee Training
All employees are expected to possess the basic skills
required to perform their duties. The
objective of training is to improve the quality of service by increasing the
effectiveness of employees through the development and improvement of their
work attitudes, habits, knowledge, and skills.
The responsibility for training lies with management personnel. They should provide their employees with
proper guidance and instruction.
Employees are encouraged to explore any training opportunities available
to them. Each new employee should be
fully informed about his/her position by his/her supervisor.
The Director oversees the Division of Purchases reports to
the Director of the Bureau of General Services.
The Director establishes operating policies and gives general direction
to personnel regarding the execution of policies, procedures, and
functions. There are certain items which
need the approval of the Director of the Division. These include:
·
Statements of new policy;
·
Letters to the State
Legislature, unless prepared for the Commissioner;
·
Answers to serious complaints;
·
Budgets and financial requests;
·
Any denial action which may lead
to a vendor's appeal;
·
Contract award notification and
acceptance letters;
·
Letters notifying vendors of
removal from the bidder list;
·
Purchase orders over $250,000.00;
·
Contracts;
·
Waiver of any policy, term or
condition relating to procurement.
He/she is also responsible for advising division managers
regarding the operations of their divisions and the general management of the
fiscal and operational needs of a large service organization.
Operations
Director
The Operations Director manages the planning of work
involving policy analysis, research, and development. Work requires an understanding of the
principles, concepts, and methodology of technical areas.
The Director of Special Projects manages the planning and
conducting special policy, planning, research, and evaluation studies for a
department or agency.
The Management Analyst II handles the review, examination,
and evaluation of complex organizational structures, administrative policies,
and management systems of state departments, agencies, and institutions. Responsibilities include, but not limited to,
developing and conducting studies, summarizing findings, preparing reports, and
recommending changes in organizational structures programs, policies,
procedures, or practices in administrative, financial, records, and information
management systems. He/She reports to the Operations Director and/or Director
of Special Projects.
The Procurement Manager oversees the work of a
procurement team which is responsible for developing contractual relationships
with vendors/service providers for the acquisition of supplies, equipment, services
used statewide by all State agencies. Responsibilities include planning,
directing, and coordinating the activities of the assigned procurement team in
order to provide client agencies with effective procurement services and ensure
that procurement practices are consistent with State procurement laws and
regulations. He/She reports to the Operations
Director and
are able to approve purchase orders and contracts up to $250,000.00.
The Buyer II handles and processes all agency requisitions. They review purchase requests and commodity
specifications, issue bid requests, make awards, place purchase orders, issue
and manage Master Agreements, and follow the specifications, policies and
procedures prescribed by State law.
He/She reports to the Procurement Manager and are able to approve
purchase orders and contracts up to $125,000.00.
The Secretary Associate handles the office and
administrative support in assisting the Director with basic administrative
details including responsibility for performing complex clerical tasks and
scheduling of appeals. He/She reports to the assigned Procurement Manager.
The Office Assistant II handling all scanning of Ct’s into
Fortis Database, filing of all CT’s, RFP’s after scanning. Assist with stamping
of CT’s, Mail back approved contracts to issuing agencies, assist with logging
in and out CT’s in the CRC database.
Assist with completing yellow cover sheets to incoming contracts.
Logging of RFP proposals in the proposal database, opening of proposals (back
up). Answering telephone and greeting visitors (back up). Opening, time
stamping and forward incoming and outgoing mail (back up). Perform general
office duties as assigned. He/She reports to the
assigned Procurement Manager.
The Office Assistant II handles the lobby reception area,
greet incoming visitors at the front desk lobby, answering telephone (back up)
assist with stamping of CT’s, mail back approved contracts to issuing agencies,
assist with logging in and out CT’s in the CRC database, assist with completing
yellow sheets to incoming contracts. He/She reports to the assigned Procurement Manager.
Buyers must be familiar with the Statutes, policies and
procedures governing purchases. They
should be aware of the legal consequences of their actions.
It is up to the Buyers to ensure optimal levels of
competition. They can not place
unreasonable qualifying requirements on bidding firms. They can not require unnecessary experience
or excessive bonding. The Buyers can not
allow non-competitive pricing practices between firms. They must not give non-competitive awards to
consultants on retainer contracts. There
must not be any conflicts of interest.
They should only use a "brand name" to describe the
performance required of an item and when used, the "or approved equal"
term should be added. They should not
initiate and strive to prevent any arbitrary action in the procurement process.
Using geographic location as a selection criterion is
justified where it does not restrict competition.
Buyers are responsible for supervising the procurement
process. An improperly prepared
requisition should be rejected to the agency for further clarification and
resubmission unless the deficiency can be easily corrected by email, telephone
or fax. They should supervise the
bidding process. Buyers should analyze
the bids received in terms of quality, price, and time. Buyers should determine the necessity for
product inspection/testing and they should provide for the necessary testing
through the appropriate University or state facility. They should also determine the need for
samples or pre-award demonstrations. The
Buyer must return all samples in any condition, at the vendor’s expense within
thirty days. Items left unclaimed after
thirty days will be sent to the using agency or destroyed. The Buyer may submit the proposed procurement
to the ordering agency for pre-award review.
Awards will be made by written notice or issuance of a
purchase order to the lowest responsive/responsible bidder. They must get approval for contracts and
purchase orders over $100,000.00. They
must place purchase orders promptly.
The Buyer should determine the delivery terms, for example,
the F.O.B point and decide whether the delivery time is reasonable and
possible. “F.O.B.” means “free (or
freight) on board” and if you follow it with the word “Origin” it means that
the customer (the State of
The Buyers are responsible for reviewing material when an
agreement cannot be reached and a decision must be made. The Buyers should settle all contract and
administrative issues arising out of procurements, including source
evaluations, protests, disputes, or claims.
The Buyers shall disclose all information regarding disputes to the
procuring agency. The Buyers should seek
legal and other advice from the supervisor or Director. Requests for information from the Director of
the Bureau of General Services or the Attorney General's Office must be
processed through the Director. They
shall decide all questions within their authority. If the vendor is the low bidder and is
dissatisfied with the decision, he/she can file a protest with the Director of
Purchases. If dissatisfaction remains,
the vendor can file a petition with the Maine Superior Court. Awards of contracts for special services are
subject to Purchase Rule #120.
Buyers must maintain a contract/order monitoring system
which ensures vendors perform in accordance with the terms of the
agreement/contract. They must handle all
agency complaints (written and verbal) concerning products and vendor
performance. In regards to follow-up on
late delivery, the agency handles the first follow-up. If the problem continues, then all complaints
should be brought to the attention of the Buyers. The Buyer must take
appropriate action and keep the ordering agency advised of the situation.
Buyers must be prepared to support their procurement
activities and awards. They must have
written evaluation procedures in their file for each award. These procedures should incorporate a clear
and accurate description of the technical requirements for the material,
product, or service being procured. They
must list the minimum essential characteristics and standards. They must have detailed and up to date
product specifications. They must
identify all requirements which vendors must fulfill and other factors to be
used in evaluating bids or proposals.
Above all, the procedures must not restrict competition.
The Buyers must have an efficient and uniform filing system
within their section. They should keep a
file of all documents relating to purchases, including personal, telephone and
email conversations with the formal bids.
Email is the preferred method of communication. The file should also include the rationale
for the method of procurement, the rationale for the selection of the contract
type, the rationale for the selection or rejection of bids, and the basis for
the contract price. The Buyer should
also include a statement explaining the justification(s) for contract
extensions with the contract document.
Requisitions, bids, and purchase orders are retained within
the agency for two years and in the Maine State Archives for five years. Purchase orders involving printing are retained
for three years and then destroyed. If
an audit, litigation, etc. occurs before the expiration date then all records
are to be retained until the action is complete or the time period has expired,
whichever is later.
Buyers must perform cost or price analysis in connection
with every procurement action, including contract modifications. Cost analysis consists of verifying proposed
cost data, the projections of data, and the evaluation of specific elements of
costs and profits. Cost analysis is
necessary when adequate price competition is lacking and for procuring sole
source items. Price analysis is used in
all other instances.
Buyer assignments are based on assigned commodities to
establish clearly defined areas of responsibility and to avoid commodity
overlap. It distributes the workload in
an equitable manner. It also allows the Buyers to develop depth of product
knowledge and helps to create better vendor relations. However, the Buyers must be aware of agency
needs and functions.
Buyers must familiarize themselves with the products they
procure. This includes the product's
use, available sizes, and models. They
should keep themselves updated on the products by reading trade magazines and
consumer reports. They should also keep
in contact with the appropriate State agencies and with a variety of
vendors. The Buyer must also be familiar
with the current market prices and trends.
They should, when requested, assist agencies in the selection of
products.
Cost Savings and
Cost Avoidance
Whenever cost savings are achieved for State agencies,
Buyers should take one of two actions.
If the cost savings are “bookable” or where one particular item was
purchased for a lower price than available in previous years, then the Buyers
should report such cost savings to the Division of Purchases’ Director of
Special Projects (and/or his or her supervisor). If the cost savings are the result of the
competitive procurement process – for example, a comparison that shows the
savings between the lowest and higher bids – then Buyers are to enter this
information into the Division of Purchases’ Cost Avoidance Database. This data base can be found in Purchases
common drive under cost avoidance database.
Scheduled Buying
Buyers should be alert to the possibility of increasing the
use of scheduled buying for ordering repetitive items. They should keep in mind the desirability of
combining requisitions from many agencies into one bid invitation. They should also recommend quantity changes
to the agency in order to reduce costs.
The quantity changes must be consistent with existing funds and the
Buyer must obtain approval from the agency for any changes.
There are certain activities which are incompatible with a
State employee's position. The employee
shall not:
·
Have financial or personal
interest in any contract or purchase;
·
Accept anything of value from
vendors with the exception of inexpensive advertisement items. Buyers must
report any items given to them to their supervisor and return all items of
value;
·
Directly or indirectly furnish
estimating service or information not available to all bidders to a prospective
bidder, however, previous years records can be furnished upon request;
·
Provide confidential information
to unauthorized persons;
·
Use names or department records
for unauthorized mailing lists;
·
Take sample products or services
for personal use;
·
Use his/her position with the
State to solicit business or purchase products at a special discount price;
·
Serve as an officer, employee,
board member, or in any capacity with an organization who transacts or attempts
to transact with the State;
·
Take employment as a sales
representative servicing the State.
A VAR is a business authorized by the manufacturer to sell
its product. The business must have an
excellent reputation. The business must
have a satisfactory record in regards to goods and services with State
government and other entities, meaning it has conformed to the conditions of
previous awards. It must be financially
sound and have the capacity and ability to supply the State with the necessary
goods and services.
In the case of a bidder error, it is not the policy of the
Division to penalize the vendor. The Division simply asks for an explanation
and disregards the bid. All
communications must be written.
·
Example:
Bidder acknowledges a mistake prior to award and want to withdraw his/her bid.
Vendors are required to follow certain procedures. Shipments are to be made only after receiving
a written purchase order or verbal authorization by a Buyer and in accordance
with the delivery instructions. All
delivered items shall conform to the agreed specifications. Failure in this action is cause for
rejection. All defective commodities
will be returned to the vendor. The
vendor is responsible for servicing such items.
It is sometimes necessary to impose restrictions on vendors
who supply the State. Upon the levying
of the restrictions, the vendor must be informed of:
·
The nature of the
conditions/restrictions;
·
The reason(s) for the
imposition;
·
The corrective actions necessary
to remove the restrictions and the time allotted;
·
The process for appealing the
restrictions/conditions.
A vendor performance file must be kept by each Buyer to
record all agency complaints and related information as well as positive
remarks. The files should be kept
alphabetically by vendor and include the name of the agency, a description of
the product or service details of all events.
This file should not be restricted to complaints. The Buyers should
encourage positive feedback from the agencies.
A note of agency complaints shall be made with the Division database.
Relations with the State
Legislature
All official records regarding purchases are available to
members of the State Legislature. The
requesting legislator should be referred to the Director or a report of the
request should be filed with him/her.
Request for information relating to pending legislation should also be
referred to the Director.
Division employees are not allowed to attend hearings or
legislative sessions during regular working hours without the authorization of
the Director. All employees asked to
appear before a legislative hearing shall comply and answer all questions
truthfully, to the best of their ability, etc.
Employees should report these requests to the Director prior to giving
testimony and file a report after the hearing.
All records relating to purchases are public information Photostat
copies are available for a fee. Requests
are to be made in person, by email or in writing when accompanied by payment
for Photostat copies. The original records are not to leave the office. Scanned copies are available to the public.
Relations with the
Media
All inquiries from the media should be referred to the
Director.
Items under $5,000.00, excluding items listed below, may be
purchased using the State Procurement Card or do a simple
Departments are not allowed to use this method for:
·
Capital equipment;
·
Printing;
·
Graphics projects;
·
Clothing;
·
Public improvements;
·
Services rendered;
·
Utility bills;
·
Travel vouchers;
·
Expense accounts;
·
Items available from the Central
Warehouse;
·
Items on state contract
Competitive Quotations (Commodities)
The method for procuring products excluding those as emergency or
sole source that exceed $5,000 is the formal bidding process (unless expressly
approved otherwise by the Director).
This method is used when there is more than one source submitting an
offer. Open competition to all bidders
is required. Efforts are made to direct
The ordering agency must determine whether need and sufficient
financing exist.
The agency submits an electronic requisition (RQS), which travels
the agency approval route before it is submitted to the Division of
Purchases. The requisition is forwarded
to the assigned Buyer for that assigned commodity. The Buyer determines that sufficient
information has been given then prepares the invitations for quote (RFQ).
Information stated on the quotation announcement must include:
Any information not listed on the electronic quotation, but
pertaining to the quote must be made available to all bidders. Bidders must be
allowed reasonable time to respond from release date of electronic
solicitation. Quotes have no
minimum time for response. It is up to
the Buyer to determine the sufficient amount of time to leave a quote open
depending on the commodity and the complexity of the quote.
There
are times when a quote will need to be amended.
Whether extending the quote closing date, clarifying/adding
specifications or in other ways editing the quotation this action must be done
on AdvantageME as part of the quotation.
Once an amendment is processed a vendor whom is attempting to respond
will immediately receive notification via e-mail from Vendor Self Service
(VSS). If a vendor had responded prior
to the amendment being processed, the vendor will have the option to resubmit
their response. If any vendor chooses to
change their response at anytime during the quoting process, they would open up their quote and click on Edit to make any
changes needed and then hits submit. Creating another SR does not
override the existing SR.
Buyers will be required to include
questions and answers deadlines in the terms of the quotation. It is up to the Buyer to determine the
sufficient amount of time to allow for questions prior to the quote opening
date, depending on the commodity and the complexity of the quote.
Vendors will be required to post their
questions on VSS through
the Question and Answer link on the Solicitation Details View page. Your answer will appear there as well. It is the vendor’s responsibility to log in to
view all questions and answers posted there.
AdvantageME will send an email to the Buyer
saying that there is a question from a vendor to your RFQ. The Buyer will log into the system, click on
favorites and the SOQA. Put *and the
last few digits to your RFQ in the solicitation ID Field. Then click browse. When the procurement appears, click the
answer link. You will be able to see the
question and respond in the answer field, hit save. If the answer is more than what can fit in
the answer box, just indicate that there will be an amendment to the RFQ and
the vendor can find the questions/answers on an attachment to the amendment.
Answer relevant questions, no rule requires you to answer all questions. Buyers must allow a reasonable time frame
between the answer and the closing date.
No questions should be answer via any other process.
Quotes
close at 2:00 pm (local time) on the announced day. Once responses have been loaded, after batch
run, the Buyer will create an evaluation document (EV) on AdvantageME. Each bidder’s price, terms, any comments and/or
attached files are reviewed.
The
agency is informed of the quote outcome from the Buyer. With the agency, if applicable, the responses
will be analyzed, tabulated, scored, making sure all criteria and
specifications have been met.
The
Buyer awards the quote by issuing a Purchase Order or Master Agreement once an
award has been determined.
Evaluations
of quotes are to be conducted in such a manner as to not change or deviate any quote information as submitted. Clarification can be asked but Vendors are
not allowed to change any portion of the quotation/specifications. If award criteria is including in your quotation,
Buyer must be led in the scoring process.
Alternate
bids that do not significantly vary specifications (as defined in MRSA Title 5,
(1825) are considered only if they are in the best interest of the State. The vendor must furnish complete
identification of the quoted product or service and any descriptive literature
or data. If the above information is not
included, the alternate may be rejected.
It shall be assumed that if not specified, the item is the same as the
one requested. Acceptance of an
alternate quote must be approved by the Director.
Tabulation of bids are to be conducted in such a manner as
to not change or deviate any bid information as submitted on the bid form. Any notes or corrections should be documented
on separate sheets or may be documented on tab sheets.
Tie bids will be awarded on the basis of in-state preference
or other factors deemed, by the Director of the Division of Purchases, to serve
the best interest of the State or by drawing of lots, provided that price,
quality, availability or other factors are equal. Title 5,
Section 1825b 8 M.R.S.A.
The State is able to reject any or all bids, in whole or in part. It can waive any formality/technicality and
accept any item(s) from any bid with the consent of the Director.
Master Agreement (MA) Extension
Master Agreements may be extended for up to two years at one
year increments. No MA may have total
duration over 3 year without the director’s approval. The buyers are not to extend an MA with any
increases and are to negotiate a lower price.
No MA can have a total duration of over three years. The Buyer must send out invitations to bid
before the MA expires. Factors to be considered when extending an MA are as
follows: price, vendor performance, the
agency needs, commodity acceptability, current market indicators, and available
competition. All extensions must be
approved by the Director of the Division.
·
Payments
that are made just prior to the start of the membership year are fine.
That is to say, if the membership year in question is 7/1/2012 through
6/30/2013, then it is not a problem if an agency makes a payment prior to
7/1/2012 -- as long as we limit them to only paying for the following year
– not multiple years in advance.
·
It
is okay for agencies to make two dues/subscription payments in the same year,
because there are scenarios where an agency might pay late for one year (with
the payment falling on 7/5/2011), and then pay on time the following year (with
the payment falling on 6/20/2012). This would be an example of two
allowable payments in the same fiscal year. There should not be more
than two payments in one fiscal year, because we cannot think of a scenario
where that would occur. If an agency ever requests to make a third
payment in a fiscal year, be sure to ask them about the situation to see if
there is some good explanation.
·
With
regard to this guideline, point #1 above is the most important, and it should
be the one that primarily drives our decisions from here onward.
All contracts for services
issued under the review of the Contract Review Committee which do not qualify
as sole source that are $10,000 and over must be competitively bid using the
Request for Proposal.
The Division
of Purchases is responsible for ensuring the purchase of services within Maine
State Government complies with state procurement law. The law requires that procurement of both
goods and services be done through competitive bidding [5 M.R.S.A. §1825-B (1)]. Statute provides the conditions under which
competitively awarded agreements may be renewed and/or amended. It also provides for very limited
circumstances under which awards may be made on a non-competitive basis.
New contracts for services
will be scrutinized carefully to determine if a true sole source. Renewal agreements will be reviewed to confirm
that a current RFP supports them or they are excluded by statute.
All contracts for services
under $10,000 which do not qualify as sole source require departments to get
quotes, the award should be made to the low bidder and submit a BP54 EO contract
form or a BP18r contract form to the Division of Purchases for approval.
Temporary service contracts are utilized to fulfill
a short term need for service.
Engagements over 1,040-hours are not typically allowed but may be
allowed by the Director of Division of Purchases or designated staff on a case
by case basis. The Director on occasion
may route a request for temporary service contract to the Bureau of Human
Resources, Employee’s Relations for review and comment.
Contracts for temporary staffing
utilize the same process as above with the exception as follows:
OIT Agreements
Agreements that are primarily
technology based or have technology components must be approved by the Division
of Purchases and the CIO’s office. Each department has an assigned OIT
representative that can assist with agreement development. OIT Agreements are
routed through the Division of Purchases for approval. Once they are initially approved
by Purchases they are routed to the CIO’s office for technical approval and returned
to Purchases for finalization on AdvantageME.
A
new Executive Order and procedure that involves the processing of cooperative
agreements between the State of Maine and the University of Maine System or Maine
Community College System. The Executive
Order does not pertain to any other type of contract or agreement.
On
November 22nd, the Governor’s Office released Executive Order 26
FY11/12. That Executive Order stated that cooperative agreements with the
University or Community College Systems should not be waived from competitive
requirements without the prior written approval of the Governor’s Office.
In
order to comply with this Executive Order, the Governor’s Office and the
Division of Purchases have developed a new form and procedure for the
processing of cooperative agreements. The new form, called the “GOVCOOP”
form, which the Department must submit directly to the Governor’s Office prior
to drafting a cooperative agreement with the University or Community College
Systems. The Governor’s Office will provide its written approval to the
Department on the GOVCOOP form, in order for a cooperative agreement to then be
finalized by the Division of Purchases. The new GOVCOOP form can be found
on the Division of Purchases’ website at this address:
http://www.maine.gov/purchases/info/forms/govcoop.doc.
Once
completed, a GOVCOOP form must be emailed to the Governor’s Office via Michael
Cianchette (michael.cianchette@maine.gov) and
cc’ed to your Department’s senior policy advisor in the Governor’s Office.
Conferences and
Meetings
When
scheduling conferences and meetings, agencies should include Maine State
Armories when considering possible event locations if an Armory is located
within 10 miles from where the majority of meeting participants will be coming
from. Dan Nadeau is your contact at the
Maine Armory Rental Program. When
assessing the feasibility of an Armory as a venue, you should consider the
total meeting cost, such as catering, lighting, audio/visual, and other
necessary services. This consideration
is required by Executive Order 15 FY 11/12, An Order Directing State
Agencies to Give Priority to Maine State Armories when Renting Meeting Space, but the Executive Order does not
cover meetings where State or Federal law requires other locations. The purpose of the program is to provide
rental space at designated Maine State Armories. Revenue generated will help offset operating
costs of these state-owned facilities.
Maine Armories are strategically located through the State, including
locations in:
·
·
·
Brewer
·
·
Caribou
·
Gardiner
·
Houlton
·
·
·
·
·
Skowhegan
·
·
Westbrook
Procedure:
1. Request a written quote from
the Maine Armory Rental Program. If necessary
to hire vendors for food or other services, please contact Dan for approved
vendors and include those costs in the total quote. Obtain at least two (2) additional quotes
from facilities in the area, including all meeting costs in calculating the
quote.
2. If the Armory is the
lowest-cost option but use of such Armory would be detrimental to the needs of
the agency, please submit a written request for a waiver from Armory use to the
Division of Purchases explaining in detail why a waiver should be granted to
allow the use of non-armory facilities.
3. If the Division of Purchases
grants a waiver, obtain a third quote from an area facility. If the quotes come in under $5,000, execute a
contract form BP18. For amounts between $5,000
and $10,000, execute a contract form BP54.
4. If the quotes exceed
$10,000, then an RFP must be drafted and submitted to the Division of Purchases
for approval. In the unlikely event that only one facility can meet your needs, please complete
a BP37SS detailing your reason for requesting a sole source procurement. Please plan accordingly in case time is
needed to complete an RFP process.
http://www.me.ngb.army.mil/rentals/
BP37SS Sole Source
Authorization Form: http://www.maine.gov/purchases/info/forms/BP37SS_Sole_Source_Authorization_Form.doc
An Order Directing State
Agencies to Give Priority to
Sole-source justification
will be required from any agency requesting such an approval. A Sole Source
Authorization Form (BP37SS) must be submitted when making a sole source. The sole source requirements are:
Competitive
contracts will require justification from any agency requesting such an
approval. A Competitive Award Authorization Form (BP37CA) must be submitted
when making a competitive contract.
A
contract renewal is an original contracts resulting directly from a competitive
Request for Proposals (RFP). The State’s
standard is a one (1) year initial contract, which may be renewed for as many
as 3 additional years. The scope of any
renewals must have been anticipated in the original RFP. Additions to the scope must be treated as
separate procurements, subject to competitive bidding or, rarely, appropriate
sole source justification. Incumbency will not justify sole source.
If a
contract has an initial 2 year time frame, it can be extended for one
additional 2 year time period.
An RFP
can establish a potential contracting relationship of longer than four years
ONLY if:
No extensions beyond the time frames identified in the original RFP will be granted without the express written consent of the State Purchases Review Committee. Such written consent will be requested solely at the discretion of the State Purchasing Agent or his/her designee.
Fixed
Cost Contracts cannot be amended to add funds to complete the originally
contracted work. Vendors must complete all contracted work for the agreed-upon
cost. Increases in scope, up to $10,000.00, may be added at the discretion of
the Contract Administrator or his/her designee.
Increases in scope over $10,000.00 must be treated as separate
procurements, subject to competitive bidding or, rarely, appropriate sole
source justification.
Fixed
Cost Contracts may be amended to add time to complete the original work in
situations when unforeseen forces beyond the vendor’s control have made it
impossible to complete the work within the original timeframe. The Contract Administrator must exercise
his/her discretion regarding such amendments.
Fixed Cost Contracts may be amended to revise the scope of work within
the existing dollar value at the discretion of the Contract Administrator.
All
contract amendments are subject to review and approval by the State Purchases
Review Committee or its designee before they can be considered valid,
enforceable documents.
Fee for
Service Contracts may be amended to add funds to purchase additional units of service within the parameters
of the original contract. For example,
if the original contract is to provide a specific service in a specific
geographic area, the contract may be amended if additional services are found
to be needed in that area. The contract
may not be amended to add funds to provide services in a different geographic area.
Fee-for-Service
Contracts may be amended to refine the scope of the originally purchased
service, may not be amended to add new services. Any new services must be treated as separate
procurements, subject to competitive bidding or, rarely, appropriate sole
source justification. They may be
amended to add time to complete the original work in situations when unforeseen
forces beyond the vendor’s control have made it impossible to complete the work
within the original timeframe. The
Contract Administrator must exercise his/her discretion regarding such
amendments.
All
contract amendments are subject to review and approval by the State Purchases
Review Committee or its designee before they can be considered valid,
enforceable documents.
Paperless Modifications simply
require an email notification be sent to the following email address (DAFS.Purchases@maine.gov).
On the subject line of your email please enter the word "Paperless Modification
and the CT Number. The reason for the
modification should be explained in the email.
Once the agreements are finalized by the State Purchases
Review Committee they are electronically scanned and archived in Fortis.
BP37CA
- Competitive Award Authorization Form (MS-Word)
This form must accompany contracts being proposed for approval that are the
direct result of a competitive RFP or a subsequent renewal that was
anticipated in the RFP. If the renewals allowable under the original
RFP have been exhausted, another competitive RFP must be conducted.
BP37SS
- Sole Source Authorization Form (MS-Word)
This form must accompany contracts being proposed for approval that are not the
direct result of a competitive RFP or a subsequent renewal that was anticipated
in the RFP. This form must also accompany ALL amendments. If the proposed
contract is the direct result of a competitive RFP or an anticipated renewal,
please complete the Competitive Award Authorization Form (above).
BP37PA
- Participating Addendum Authorization Form (MS-Word)
This form must accompany contracts being proposed for approval that are the
result of participation (a.k.a. “piggybacking”) under pre-existing,
competitively awarded contracts. Pre-existing contracts can be in the
form of multi-state cooperative agreements, or contracts that were
competitively awarded by individual states or public entities. The
information requested below should explain the general departmental need for
the contracted service or commodity, describe the process undertaken to
identify existing contracts, and explain the method of achieving the best
contract in terms of price and quality of service/commodity.
BP37AM Form
(MS-Word)
This form must accompany amendments being proposed for approval to existing
contracts.
Governor’s Office
Cooperative Agreement (GOVCOOP) Form (MS-Word)
This form, once completed, must be sent directly to the Governor’s Office and
the requesting Department’s senior policy advisor in order to receive approval prior
to establishing a cooperative agreement with the
Information
Sheet for Contracted Positions (Excel)
This form must be submitted with any temp. service
contract or temp. service contract amendments.
Debarment Form
(MS-Word)
This form is required when awards are made using federal funds such as 013 and
015 and the dollar value exceeds $25,000.00.
CONTRACT DOCUMENTS
BP18R $5,000.00
Contract (MS-Word)
this form is for contracts $5,000.00 and under.
BP54
Agreement to purchases Services – EO Compliance (MS-Word)
This document is used for contracts of any dollar amount, and it incorporates
language stating that the contract is consistent with Executive Order 17
FY08/09 and complies with its requirements. Contracts presented on this form DO
NOT need to be accompanied by a signed Executive Order Compliance Form;
however, must be accompanied by one completed BP37CA or BP37SS as
appropriate.
BP54-EO-IT
Agreement to purchases Services – EO Compliance - Information Technology
Contracts (MS-Word)
This document is used for all Information Technology contracts of any dollar
amount, and it incorporates language stating that the contract is consistent
with the Executive Order 17 FY08/09, and that it complies with its
requirements. Contracts presented on this form DO NOT need to be accompanied by
a signed Executive Order Compliance Form; however, must be accompanied by one
completed BP37CA or BP37SS as appropriate. Additionally, if the contract
includes ARRA funding, you must attach one ARRA BP54 EO IT Additional Ts
and Cs. INSTRUCTIONS
for Rider B-IT (MS-Word)
Amendment EO
Form (MS-Word)
This form should be used to make a change or modification to any BP54 contract
document.
Procurement Card Program Policy
[NOTE:
The pages below are taken from the “State of
The State of
PLEASE NOTE: PERSONAL CHARGES ARE STRICTLY
FORBIDDEN.
Agency Procurement Card
Coordinator - Each Agency currently participating in the Procurement Card
Program has an employee or a group of employees responsible for administering
the Procurement Card Program for their particular Agency and acts as the main
contact between the Agency and the State Procurement Card Administrator (PCA).
Billing
Cycle - A two-week long billing period for
the State’s PCard program. A statement
for the State’s PCard activity is received and paid every two weeks.
Cardholder - A person whose name is on
a Procurement Card and who is given authority to make purchases within preset
limits on behalf of the State of
Cardholder
Agreement -
The agreement signed by the person whose name appears on the Procurement Card.
This agreement outlines the policies regarding using a Procurement Card and
must be signed by all persons receiving a Procurement Card. This signed
agreement will be imaged and retained by the Division of Purchases.
Cut-Off
Date - The
last day in which charges can be approved and costs redistributed prior to
payment being made to the e-Business partner.
Default
Account - A Department-specific
AdvantageME account code assigned to an individual Cardholder's Procurement
Card. Only one Default Account can be assigned to any one Procurement Card and
all charges made with the Procurement Card will be initially posted into that
Default Account with the option of redistributing to other cost center numbers
in the reconciliation process.
e-Business
Partner -
The merchant from whom a purchase is made using the PCard.
MCC - Merchant Category Code
assigned to a merchant by VISA and/or MasterCard, which identifies the primary
goods or services provided by the merchant.
MCCG - A grouping of merchants by MCC.
Monthly
Spending Limit
- A
dollar limitation of purchasing authority assigned to the Cardholder for the
total of all charges made during each monthly billing cycle. Typically, this amount
will not exceed $25,000. Departments may establish lower limits on a Cardholder
basis.
Procurement
Card (or PCard)
- A
credit card issued to an employee of the State of Maine for the purpose of
making authorized purchases on the State's behalf. The State will issue payment
for charges made with the Procurement Card.
Procurement Card
Administrator (PCA)
- The Division of Purchases’ employee responsible for administering the
Procurement Card Program for the State and acting as the main contact between
the State and the State’s banking partner (currently US Bank).
Receipt/Documentation - A merchant-produced or
non-State document that records the relevant details for each item purchased
including quantities, amounts, a description of what was purchased, the total
charge amount and the merchant's name and address (e.g. sales receipt, original
invoice, packing slip, credit receipt, etc.).
Stacking - A prohibited practice wherein a Cardholder splits the cost of a
purchase that is over the Cardholder’s Transaction Limit into two or more
charges that are within the Cardholder’s Transaction Limit. This may occur on one day, or over a few
days. STACKING IS STRICTLY PROHIBITED,
and will result in the Cardholder’s loss of PCard privileges.
Transaction - A charge or credit
associated with an e-Business partner account.
Transaction/Charge
Limit - A dollar limitation of purchasing authority assigned to the
Cardholder for each total charge made with the Procurement card. Except in rare
circumstances, this amount must not exceed $5,000.00. Departments may establish
lower limits on a per Cardholder basis. A single transaction/charge may include
multiple items but cannot exceed the designated Transaction Limit.
Travel
Card - A credit card
issued to an employee of the State of
NOTE: Throughout this policy document,
the terms “Procurement Card” and “Travel Card” are repeatedly used. The rules,
policies, and procedures surrounding both PCards and Travel Cards are exactly same, therefore the use of the term “Procurement Card” or
“PCard” shall be understood to also mean “Travel Card”. The only differences between these two card types are detailed below in the section entitled
“Travel Cards”.
10.Reporting
a lost or stolen Procurement Card immediately to your
APCC and US Bank at 1-800-344-5696.
11.Not
accepting cash in lieu of a credit to the Procurement Card
account when returns are made.
12.Being
accountable for all charges made with their Procurement
Cards and
responsible for checking all transactions against the corresponding support
documentation to verify their accuracy and propriety. This check should be done
regularly using the Access On-line transaction review system.
How Does
the Procurement Card Work?
The Procurement Card is a
special MasterCard credit card. It works similarly to your personal credit
cards, except the charges are billed directly to the State with the initial
payment made by the Department of Administrative and Financial Services, then
billed back bi-monthly to the appropriate Departments. Procurement Cards
are for business use only!
The Procurement Card will
display the Cardholder's name along with the words: STATE OF
A statement of activity can
be printed from the Access Online System at your convenience. This
statement will assist in keeping track of all purchases made using the PCard
and to ensure all receipts and packing slips are sent to the person in your
department responsible for approving the electronic charges. Should it be
necessary to return any supplies or resolve billing disputes, this information
is also needed to document State expenditures and also available for review by
internal and external auditors.
More information related to
retention of receipts may be found under “Receipts/Documentation”.
Improper use of the
Procurement Card will result in consequences ranging from suspension of card to
termination of employment and criminal prosecution.
As mentioned above, the terms “Procurement Card” and “Travel
Card” are repeatedly used throughout
this policy document. The rules, policies, and procedures surrounding both
PCards and Travel Cards are exactly same, therefore
the use of the term “Procurement Card” or “PCard” shall be understood to also
mean “Travel Card”. The only differences between these two card types are
defined within this subsection of the State of
The
main difference between PCards and Travel Cards is the purpose for which each
card is used. As detailed within this policy, a Procurement Card is meant for
multiple, business-related purposes throughout State Government, in order to
make purchasing more efficient (particularly for small dollar purchases). A
standard Procurement Card is not meant for making any travel-related purchases,
such as airline or hotel reservations. In order to make travel-related
purchases under this program, a State agency must acquire a Travel Card,
provided by the State’s vendor US Bank.
The
second most important difference between PCards and Travel Cards are that Travel
Cards are not permitted to leave the office with individual employees or
travelers. The use of Travel Cards is confined to a State facility, where
one or two central cardholders will perform travel-related bookings and charges
online or via telephone on behalf of that agency’s travelers. Under no
circumstances are State of Maine Travel Cards under this program with US Bank
to be used for any food, drink, or incidental purchases, whether those charges
relate to travel or not.
Any employee for whom a
Procurement Card is going to be requested must first complete the Purchasing
Card Application and sign the one-page State of
After an application package
has been approved by all parties listed on the application form, the package
should then be forwarded to the PCA.
Once the application package has been processed, the individual will be
assigned a unique identification and will be sent an e-mail notification with
details for receipt and activation of the PCard. After all documentation is provided, the PCA
will order a PCard for the applicant, and the PCard will be mailed directly to
the address provided on the new Cardholder’s application form.
It is important to note that
regardless of whether or not a department approves the charges the employee(s)
have made, the invoice will be paid. Those charges that have not been approved
will be flagged and subject to audit review and possible suspension of
privileges.
As mentioned above,
prospective Cardholders MUST complete the necessary WBT courses to
receive a certificate of completion, and also sign the State of
Procurement Cards are not
transferable! If you leave State
employment or take a job at another State agency, you must return your card to
your APCC stating your last day in current position. If you need a PCard in your new position, you
can request it through your new department.
Maximum
Spending Limits on Procurement Cards
The following limits are the
maximum amounts assigned and allowable for a Procurement Card. Departments are
welcome to request cards with lower Single Transaction and Monthly
Transaction Limits.
Maximum Single Transaction
Limit: $5,000.00
Maximum Monthly Transaction
Limit: $25,000.00
Cardholder
Transfer within the Same Department
Cardholders who transfer to
a new position within the same department and require the use of a Procurement
Card as part of their new duties should continue to use the same card.
Cardholders who transfer within the same Department should then provide their
APCC with their new default account coding, if applicable.
Cardholder
Separation from the State
Prior to separation from
State service, Cardholders must surrender their Procurement Card to their APCC
and send any outstanding documentation for charges to the person in your department
responsible for approving your charges.
Your Procurement Card CANNOT
be used for the purchase of certain established items; see “Non-Allowable List”
located at the Division of Purchases website under the “Procurement Cards” page.
Unauthorized
and/or Inappropriate Card Use
The Procurement Card MUST
never be used to purchase items for personal use or
for non-State purposes, even if the Cardholder intends to reimburse the State.
Charges for an item CANNOT
BE SPLIT (otherwise known as
“stacking”) into separate payments to exceed a card's single transaction
dollar limit. It is also inappropriate for the Cardholder to pay
for part of the cost of an item with his or her PCard, and then have the
Cardholder use an alterative payment method (or seek reimbursement) for the
remaining balance.
A Cardholder who makes an
unauthorized purchase with a Procurement Card, or uses the Procurement Card in
an inappropriate manner, will be subject to loss of any authority to retain or
use the Procurement Card; disciplinary action up to and including termination;
and possible criminal prosecution and restitution.
Consequences of
Unauthorized and/or Inappropriate Card Use
The Procurement Card must
never be used to purchase items for personal use or for non-State purposes. A
Cardholder who makes an unauthorized purchase with the PCard, or uses the card
in an inappropriate manner will be subject to disciplinary action including
possible card cancellation, termination of employment with the State of
The Procurement Card may be
used to purchase goods in person at the supplier site, over the phone, over
secure Internet sites, or by mail. When placing your order in person you will
simply give the supplier your Procurement Card as you would any credit card.
If you are ordering over the
phone you should provide your:
·
Account
Number;
·
Card
Expiration Date;
·
State
of
·
Complete
delivery address.
Confirm that the total
order, including tax and freight does not exceed $5,000, or the maximum amount
allowable per transaction on your card.
NEVER give your PCard number to
someone when the call was not initiated by you!!! Beware of scams!!! Please report any suspicious activity to your
APCC or the PCA.
Merchandise
Returns and Exchanges
When necessary, items should
be returned according to vendor specifications. The Cardholder is responsible
for ensuring that proper credit is posted for any returned items.
If merchandise is returned
in person, the Cardholder is responsible for obtaining a credit receipt from
the merchant and retaining that receipt with other receipts to document the
purchase and return. These receipts will then be imaged.
Receiving cash or checks to
resolve a credit is prohibited.
No exchanges are allowed –
the item must be returned for credit and the replacement item purchased
separately.
Whether a purchase is made
in person or via telephone, internet, fax, or mail, the Cardholder is
responsible for obtaining purchase documentation from the merchant, such as:
These documents MUST be given to the person in your department who is
responsible for approving the electronic charges sent from US Bank. If
your 16-digit account number is printed on the receipt it must be blacked out
before being given to the department Approver.
When charges are approved
and reconciled, the document number should be written on the receipt and sent
to the administrative person in your department who is responsible for
approving your transactions.
If a Cardholder does not
submit the required documentation in the monthly requested time allocation,
they will receive a written warning for the first offense. Habitual
failure to submit documentation will result in the suspension of the card;
user, their Approver and the Agency Procurement Card Coordinator will be
notified by e-mail. To reinstate privileges, a memo from a user's Approver and
Agency Procurement Card Coordinator giving adequate justification will be
required and all PCard supporting documentation submitted to bring the
Cardholder’s reconciliation's up to date. Upon receipt and approval of that
justification, the PCA will establish a time for the user to attend Procurement
Card training again.
Documentation MUST be
sent to the administrative person in your department who is responsible for
making payments of your transactions to support ALL PCard
transactions!!!
No Exceptions!!!
Payment
of Receivable (RE) Processing Credit Card Payments
1. The Agency Procurement Card
Coordinator will establish procedures to ensure prompt payment of Procurement
Card purchases.
2. Upon receipt of the
documentation of a Procurement Card purchase, the Cardholder’s Approver will
review the documentation to ensure that it is acceptable under this Policy and
that it will permit proper recording of expenditures by account, character, and
object.
3. The Division of Financial
and Personnel Services will submit a receivable (RE) to the Agency for payment
of Procurement Card charges. The Agency must process and make payment
within 5 days of receipt of the RE.
4. Each Cardholder is
responsible for ensuring that the Agency or State of
Once a Cardholder notes a
discrepancy or error of transaction; the Cardholder must try to resolve the
issue with the supplier and if it cannot be resolved, the Cardholder should
then begin dispute process online through Access Online or by calling US Bank
Customer Service.
Lost, Stolen, or
Damaged Procurement Cards
Cardholders are required to
immediately report any lost or stolen Procurement Card to US Bank toll-free at
1-800-344-5696 (24 hours a day, 365 days a year). The Cardholder MUST also
immediately notify his or her APCC at the first opportunity.
Procurement Card
Audit Procedures
for Approvers
PCard receipts are to be reviewed
for the following concerns:
Lost/Unobtainable Receipt
If a particular Cardholder appears to be losing or
not providing receipts on a recurring basis, the Approver and APCC should send
a written warning to the Cardholder that continued lost or unobtainable
receipts will result in a 30 to 60 day suspension of card use and/or possibly a
permanent suspension.
Periodic Auditing
The PCA may periodically run transactions reports
for all Departments for review of inappropriate use of cards. If inappropriate use is determined the
Department Approver, the APCC and the Cardholder shall be notified in writing
of suspected misuse and will be required to provide explanation of
charge(s). If it is then determined by
the PCA that the charge was inappropriate, a warning will be forwarded to the
appropriate Department Approver, the APCC, the Cardholder and the Cardholder’s
Supervisor. If it is determined that
this is habitual misuse, then permanent suspension could occur.
All Department Approvers are to run transaction
reports monthly of their Cardholders in Access Online to review to ensure that
inappropriate use is not occurring.
Penalty Structure
Despite
the layout of the penalty structure below, the Director of the Division of
Purchases, or designee, reserves the right to apply any appropriate penalty
within his or her authority, including the permanent suspension of cardholder
privileges.
Inappropriate Use of Card:
Splitting (stacking) transaction to avoid single
transaction limit of $5,000:
Making personal purchase or purchase which is
inappropriate on State funding with card:
o
Personal
purchases are strictly forbidden; any Cardholder that has made a personal
purchase will reimburse the State for the purchase and provide documentation
proving reimbursement within two weeks
o
Possible
warning letter
o
Potential
suspension of privileges
Possible fraudulent use:
o
PCA
immediately to suspend the card
o
PCA,
Department Approver and APCC will meet to discuss concerns User is notified in
writing by PCA
o
PCA
contacts Internal Audit
o
PCA,
Department Approver and APCC provide and maintain documentation of all
activities relating to fraudulent use
In all cases of inappropriate card use, personal purchases, splitting
transactions, etc, Department Approver, APCC and the PCA will document
circumstances in detail. This provides a continuous history of Cardholder
activity.
Department Approvers will keep statistics on results
of monthly audit activities. Spreadsheets and any notes are maintained
and are attached to the spreadsheet when review is completed each month.