HomeMy WebLinkAboutPurchasing and ContractingIdaho
Department of
Correction
Standard
Operating
Procedure
Title:
Purchasing and Contracting
Page:
1 of 19
Control Number:
147.06.06.004
Version:
4.0
Adopted:
03-11-1999
Pat Donaldson, chief of the management services division, approved this
document on 04/15/2016.
Open to the public: Yes
SCOPE
This standard operating procedure (SOP) applies to all Idaho Department of Correction
(IDOC) purchasing agents, s enior buyers, c ontract administrative unit, financial s pecialists,
financial technicians and any employee involved in the purchasing process.
Revision Summary
Revision date (04/15/2016) version 4.0: Change of SOP number from 114.03.03.007;
substantial edits and updates throughout to ensure compliance with current Idaho Statutes,
Rules, and practices; update to new formatting and organizational structure.
Previous revision date: (04/10/2014) version 3.0.
TABLE OF CONTENTS
Contents
Scope ........................................................................................................................................ 1
RESPONSIBILITY .................................................................................................................... 2
General requirements ............................................................................................................... 3
1. Delegated Purchasing Authority ...................................................................................... 3
2. Purchasing Prohibitions, Ethics and Supplier Relationships ........................................... 4
3. Purchasing Limitations ..................................................................................................... 5
4. Approval Process ............................................................................................................. 6
5. Information Technology Property Purchases .................................................................. 7
6. Telephone System Acquisition Process .......................................................................... 8
7. Motor Vehicles .................................................................................................................. 8
8. Multi-Function Printers and Facsimile Machines ............................................................. 8
9. Radio Communications Equipment ................................................................................. 8
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10. Difference between Informal (Quote) and Formal (Bid) Process ................................ 9
11. Informal Quote Process (RFQ)..................................................................................... 9
12. Formal Bid Processes ................................................................................................ 10
13. Methods for Awarding (RFQ, ITB, and RFP) ............................................................. 12
14. Developing Specifications .......................................................................................... 13
15. Building Improvement Purchases............................................................................... 14
16. Professional and Consultant Service Agreements .................................................... 14
17. Information Technology Consultant Contracts, Project Service Order (PSO) .......... 15
18. Leases......................................................................................................................... 15
19. Requests for Information ............................................................................................ 16
20. Emergency Purchasing .............................................................................................. 16
21. Exemptions and Justifications .................................................................................... 17
22. Policy Directives ......................................................................................................... 18
Definitions ............................................................................................................................... 18
References .............................................................................................................................. 19
BOARD OF CORRECTION IDAPA RULE NUMBER
None
POLICY CONTROL NUMBER 147
Procurement and Contract Management
PURPOSE
To promote efficiency and economy in the purchasing process and to ensure internal
controls exist and are followed for the purchasing and contracting procurement of
products and services for the Department of Correction.
RESPONSIBILITY
Director of the IDOC
The director of the IDOC (or designee) is responsible for purchasing and
contracting authority.
Chief of the Management Services Division
The chief of the management services s ivision (or designee) is responsible for
overseeing and monitoring the provisions provided herein.
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Business Support Manager
The business support manager (or designee) is responsible for overseeing and
monitoring all purchasing and contracting for the IDOC, in compliance with this
SOP and state purchasing statutes and rules.
Purchasing Agent
The purchasing agent is responsible for implementing this SOP and for ensuring
IDOC employees are practicing the guidelines, standards, and procedures
provided herein and are in full compliance with state purchasing statutes, rules
and this SOP.
Purchasing
For the purpose of this SOP, the central office purchasing department consists of
senior buyers, the purchasing agent, and the business support manager.
Buyer, Senior
The IDOC buyer, s enior is responsible for purchasing activities and ensuring they
are in compliance with state purchasing statutes, rules and this SOP.
Contract Officers
The contract officer is responsible for contract administration activities and
ensuring the contract lifecycle is in compliance with state purchasing statutes,
rules and this SOP.
IDOC Employees
Any IDOC employee who initiates a purchase order is responsible for ensuring
the purchase is in compliance with state purchasing statutes, rules, and this
SOP.
GENERAL REQUIREMENTS
All purchases shall comply with department policy and procedure, Division of Purchasing
(DOP) statutes (Idaho Code Section 67-5715, et seq.) and rules (IDAPA 38.05.01), and
all other applicable state laws and Department of Administration rules . In the event of
any conflict, this SOP shall be interpreted to ensure compliance with state statutes and
rules.
1. Delegated Purchasing Authority
The department business s upport manager or purchasing agent has the responsibility of
delegated purchasing authority for the department for a specific dollar amount that is
determined and granted by the administrator of DOP. Under this delegated purchasing
authority, the business support m anager is authorized by the DOP to conduct public
procurements for the acquisition of property and services to contractually bind the
department.
Under the business s upport manager’s oversight, the following responsibilities apply.
Institutions , facilities and/or m anagement with spending authority have sub-delegated
purchase authority for Purchase Orders (PO) up to $4,999. The c entral office purchasing
department (purchasing) senior buyers have sub-delegated purchasing authority of
$10,000. The purchasing agent has sub-delegated purchasing authority of $25,000.
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Purchasing receives , reviews and signs all purchase orders totaling $5,000 and over.
The purchasing agent or business s upport m anager will also determine the appropriate
process for purchasing and contracting as required by policy, rule and/or statute ,
including the appropriate type of formal solicitation.
2. Purchasing Prohibitions, Ethics and Supplier Relationships
State of Idaho Statutes, DOP Rules, this SOP, and the Ethics and Standards of
Conduct Policy (217) are put in place to preserve the State’s integrity by helping to avoid
improper actions or the appearance of improper actions by government personnel and
suppliers. Each state employee, classified and non-classified, has a personal
responsibility to conduct government business in an ethical manner and assure the
integrity of the state purchasing and procurement processes .
Prohibitions
In accordance with Idaho Code Section 67-5726, the department prohibits
employees from :
Transferring contracts without the Division of Purchasing (DOP) administrator’s
written approval.
Benefitting from any contract made in whole or part with the State.
Influencing or attempting to influence the award of a contract, which , for example,
may include kickbacks, bribes, peddling or payment of a fee, back door selling,
hard sell tactics, fraternization, or offering gifts to avoid following published
procedures or gain advantages.
Conspiring with suppliers, or their agents , to influence or attempt to influence an
award of a contract.
Failing to utilize open contracts (also referred to in this SOP as statewide open
contracts) without an exemption request approved by the DOP Administrator.
Accepting property which the employee knows does not meet specifications or
substantially meet original performance test results.
Accepting a bid from a s upplier who was paid for services utilized in preparing
bid specifications or who provided services influencing the procurement process .
If a supplier was paid for services or influenced the process , they would be
prohibited from bidding.
Engaging in c onflicts of interest regarding the holding of contracts or state
employees selling property or supplies to the state.
In accordance with Idaho Code Section 67-5717, the department prohibits:
Circumventing of purchasing authorization. Efforts to obtain products or services
by avoiding the competitive process by splitting purchases, creating false
emergency situations and non-use of statewide contracts are prohibited.
Code of Ethics
All personnel charged with the responsibility for purchasing for the department shall:
Follow the lawful instructions of the department and laws of the state.
Understand and comply with the authority granted by the department.
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Avoid activities that would compromise or give the perception of compromising
the best interests of the department.
Actively prom ote the concept of competition to avoid charges of preferential
treatment.
As agents for the department, obtain the maximum benefit for funds spent.
Avoid any private or professional activity that would create a conflict between
personal interests and the interests of the department.
Never solicit or accept money, loans, credit, discounts, gifts, entertainment,
favors or services from present or potential suppliers .
Supplier Relationships
Developing and maintaining good relationships with our suppliers is important.
Whenever a supplier fails to meet the requirements of a department or s tate contract
or purchase order, the problem needs to be brought to the attention of purchasing for
resolution. Purchasing will facilitate problem resolution while maintaining good
working relationships. If purchasing is unsuccessful in resolving state contract
supplier issues, purchasing will notify DOP of contactor non-compliance as DOP is
responsible for administering statewide (open) contracts .
The following is expected of employees when dealing with suppliers :
Maintain and practice the code of ethics along with professional courtesy and
competence in all transactions .
Avoid showing favoritism or being influenced by suppliers through the
acceptance of gifts, gratuities, loans or favors .
Respect the supplier’s business and legal rights to confidentiality for trade
secrets and other proprietary information. If any questions arise, employees are
to contact purchasing for direction.
3. Purchasing Limitations
The purchasing process is driven by the following dollar thresholds for the total amount
of the purchase order, as well as the delegated purchase amount granted by the DOP
administrator to the department’s business support m anager .
Purchase Orders up to $4,999
All department locations have this purchasing sub-delegated authority. This category
includes discretionary purchases in accordance with good business practices and in
the best interest of the state. Three quotes are not required but should be considered
when possible or practical.
Purchase Orders from $5,000 to $9,999
These purchases require purchasing’s oversight. Purchasing determines the need
for obtaining three quotes based on the type of procurement, availability of product or
service and lead-time. Purchasing can assist with the quoting process. Purchasing
reviews and signs all purchase orders that fall within this range before a purchase is
made.
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Purchase Orders from $10,000 to $49,999
Purchasing manages all purchases within this range. These purchases require
purchasing to seek a minimum of three quotes from suppliers with a significant Idaho
presence, if possible.
Purchase Orders $50,000 or more
DOP administers these purchases in coordination with purchasing. The appropriate
proces s of quotes or bids is determined by estimating total purchase amount
including applicable renewals . Request for Quote (RFQ), will be the means of
procuring products or services for a total not to exceed $99,999. When the amount
over the life of the contract is $100,000 or more, then an Invitation to Bid (ITB) will be
the means for procuring products and a Request for Proposal (RFP) will be the
means for procuring contract services or complex purchases .
Purchase Orders on Statewide Open Contracts
The department can contact a vendor directly to purchase goods or services at
terms, conditions, and rates specified in a statewide open contract entered into by
DOP. The use of statewide open contracts are governed by Idaho Code §67-
5726(4) which reads in part “No officer or employee shall fail to utilize an open
contract without justifiable cause for such action.” This means if there is a statewide
open contract in place, the department must purchase the goods or service from that
supplier. Purchasing still needs to sign off on all purchase orders over $5,000 with a
statewide supplier; however, these purchases are exempt from having to go out for
competitive bidding.
4. Approval Process
There are different approval processes based on the purchasing or contracting vehicle
used to procure the product or service, which are listed below:
Purchase Order
A purchase order (PO) is a contract between the agency and the supplier. All
requests to purchase begin by obtaining the appropriate spending authority approval
on the PO. After spending authority signatures are obtained, a PO number is
assigned and logged in the appropriate PO log. This process is done either through
the facility financial technician/specialist or by the c entral office purchasing
department.
If a purchase order is $5,000 or more, after the process is followed in the paragraph
above, purchasing will:
Verify the appropriate process based on spending thresholds outlined in Section
03.00 of this SOP was followed.
If the purchase is Capital Outlay (CO), confirm with financial specialist the
expenditure is appropriated for the current Fiscal Year’s CO budget .
If the CO purchase is short of an appropriation or is not allocated in the fiscal
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year, purchasing will wait for the financial specialist to secure additional CO to
cover the purchase.
Once the money has been moved to cover the additional CO, the financial
specialist will notify purchasing the money is in place. Purchasing will review and
sign the purchase order.
At that point, the purchase can be made.
RFQ’s, ITB’s and RFP’s
DOP requires a DA-1 requisition that is signed by the spending authority and the
executive financial officer, or by the financial manager or the business support
manager, for single purchases exceeding $10,000 for products and/or services using
the State’s e-procurement system. Upon an award, a department PO will also be
issued for the one time purchase to encumber the funds. Purchasing must sign the
department PO.
Upon award of a contract, the e-procurement system will generate a Contract
Purchase Order (CPO), or Blanket Purchase Order (BPO). The contract term
(duration) is defined in the CPO or BPO and may have one or more renewal options.
Exceptions
The following types of purchases are exempt from the quote or bid requirements
described above:
Purchases from current department or statewide open contracts .
Purchases from Idaho correctional industries , up to $10,000.
Purchases from other Idaho state departments or agencies .
Purchases from Federal government agencies.
5. Information Technology Property Purchases
The department's review and any subsequent acquisition will conform to the guidelines
and policies established or adopted by the department of administration’s chief
information office or other governing or policy board or council that may be created by
statute or directive for the purpose of information technology oversight or review.
A department’s information technology m anager must review and approve all information
technology (IT ) purchases. All purchase orders that are $5,000 or more must be signed
by purchasing. Purchases will be made from statewide open contracts where applicable
and comply with rules for information technology acquisitions.
Department staff needs to request IT quotes through the IT s enior buyer. All IT
purchases will be shipped to c entral office, attention “IDOC – Information Technology”
for inventory purposes and then the IT department will deliver or ship product to the end
user.
Information technology property includes, but is not limited to, all present and future
forms of computer hardware, video and/or imaging, computer software and services
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used for automated data processing or storage, and computer related office automation
and telecommunications, including licensing and maintenance.
6. Telephone System Acquisition Process
All telephone system purchases need to be routed to purchasing for assessment of
various factors such as: types of phone system including features, system capacity,
complexity, and infrastructure and estimated spend, after which a determination will be
made for the appropriate process. Processes range from requesting quotes to issuing an
informal request for bids . Informal requests for bids require legal advertisement or a joint
effort in coordination with the Division of Public Works (DPW ). Purchasing will
manage the process with the assistance of the requestor by creating specifications,
scope of work, appropriate documents and coordinate communication with the
department of administration chief information office’s enterprise network analyst.
7. Motor Vehicles
New Vehicles
New vehicle purchases must be purchased through statewide open contracts
administrated by DOP. Vehicle Order Forms (VOF) will be generated by the
department’s fleet m anager and sent to purchasing for review. Purchasing will
prepare a DA-1 requisition, to be submitted with the VOF into the e-procurement
system. The e-procurement system will generate the purchase order (also referred to
as an “EXPO” PO) and DOP will electronically send the order to the dealer and
purchasing. Purchasing will create an internal PO for the department in order to
encumber the funds. Vehicle purchases typically have a three (3) to four (4) month
lead-time for delivery.
Used Vehicles
Used vehicle purchases must follow the informal quote process , by obtaining a
minimum of three (3) quotes. This process will be managed by purchasing.
8. Multi-Function Printers and Facsimile Machines
All requests for these types of equipment will be processed through purchasing.
All purchases and/or leases will be acquired through statewide open contracts .
Purchasing will manage any lease documents, coordinate the notification and return of
leased equipment and will help facilitate the disposal of approved equipment through an
appropriate resource.
9. Radio Communications Equipment
All radios and associated equipment must be purchased through the Idaho Bureau of
Homeland Security Public Safety Communication Department, SafeCom, in coordination
with purchasing. SafeCom will assist in purchasing equipment from statewide
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communication contracts, tracking of inventory and pr ogramming equipment. Requests
should be directed to purchasing which will coordinate orders with SafeCom.
10. Difference between Informal (Quote) and Formal (Bid) Process
For purchases of $10,000 or more, the department invites solicitations from potential
suppliers by using the informal quotation or formal bid processes identified below, unless
an express exemption under state law applies . Purchasing will manage these
procurement processes.
Purchases of property or services between $10,000 and $99,999 follow a process that is
considered “Informal.” These purchases require a minimum of three (3) quotes via a
Request for Quotes (RFQ ) unless it is impossible or impractical as determined by
purchasing, in which case purchasing will submit a request for exemption to DOP for
authorization to be exempted from this quoting process . , refer to Section 21 for a listing
of exemptions. Purchasing will use the e-procurement system managed by DOP.
Purchasing will determine the amount of time given to suppliers to prepare and return
quotations , upon considering such factors as complexity, urgency and availability of
property.
Purchases of $100,000 or greater require a “Formal” bid process which is administered
by DOP and is subject to the DOP appeals process. This bidding process takes more
time due to its formal nature and DOP generally requires longer solicitation periods.
These solicitations are thoroughly reviewed by the DOP liaison to the department, in an
effort to facilitate open competition, efficiency and economy and to ensure compliance
with DOP statutes and rules.
Requestors must not artificially or deliberately divid or split requirements for a
procurement to avoid the quoting or bidding processes, statutes, rules or policies.
11. Informal Quote Process (RFQ)
For purchases between $10,000 and $49,999, purchasing will manage the process,
working with the end user to create specifications. Purchasing will create and submit an
RFQ (request for quote) into the DOP’s e-procurement system. E-procurement releases
the RFQ to a list of suppliers who have registered to do business with the state of Idaho
for specified commodities. Upon a pre-established closing date, purchasing evaluates all
submitted quotes and makes the award in accordance with Section 13 of this SOP.
For purchases between $50,000 and $99,999, purchasing will prepare and manage the
RFQ solicitation process working closely with DOP oversight.The RFQ will be entered
into the DOP’s e-procurement system and evaluated by DOP, then sent to purchasing
for a second review. After final review, DOP will award a PO or a contract PO.
Purchasing will prepare a formal purchase requisition form (DA-1) and will obtain the
appropriate signatures – executive financial officer or financial manager and spending
authority - before submitting into DOP’s e-procurement system.
DOP will post quotes or bids electronically and, if requested, will send a notification of
opportunity to bid to venders suggested by the department.
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Purchasing will provide the end-user an anticipated timeline for the process and provide
updates if the timeline changes.
Responses
A response to an RFQ shall be written. Oral quotes will not be accepted. A
supplier’s non-response may be counted toward one of the 3 required quotes.
12. Formal Bid Processes
All purchases of $100,000 and larger are “Formal” bid processes that are developed by
purchasing or the Contract Administration Unit (CAU) and are administered by DOP. There
are two (2) types of solicitations for these purchases; an Invitation to Bid (ITB) or a Request
for Proposal (RFP).
ITB’s are generally used for tangible property. ITB’s will be developed and managed
through purchasing.
RFP’s are generally used for services or complex purchases , in situations where the need is
known but the requestor(s) may not know how to provide all the solutions to obtain the
services required. RFP’s will be developed and managed through the department’s contract
administration unit.
All formal bid processes for purchases of $100,000 or more are subject to the appeal
process set forth in Idaho Code Section 67-5733 and the DOP rules (IDAPA 38.05.01 and
IDAPA 38.05.02). Appeals can be in the form of a challenge to specification s, the appeal of
a rejected bid as nonresponsive, the appeal of the selection process , and an appeal of a
sole source purchase determination. To be effective, all appeals shall be made in writing
and directed to the DOP and must comply with all applicable DOP statutes and rules .
The administrator of the DOP shall be responsible for addressing administrative appeals for
all actions handled by the DOP.
12.1 Invitation to Bid (ITB)
Purchasing will work with the end user in creating specifications and incorporating
specifications, (see section 14 for more details on specifications) and other requirements
into DOP’s ITB template and send the ITB to DOP for review. After the review process is
complete, the ITB is released on the state’s e-procurement system. DOP administers the
process but works closely with purchasing throughout the solicitation cycle including:
questions and answers, amendments and clarifications. Upon close of the ITB,
responses are evaluated by DOP and then sent to purchasing for review and a
recommended award.
Bid Opening and Award of ITB’s
All responses to ITB’s are opened, evaluated and tabulated by DOP. The results are
communicated to the purchasing agent for review and approval. The award will be made
in accordance with the type of award chosen per section 13 of this SOP.
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The DOP will notify all bidders of the intent to award. After the five day appeal period
expires , if no appeals are received, the DOP will issue a purchase order, blanket
purchase order (BPO) or contract purchase order (CPO).
Award of ITB
DOP will issue the award. Each individual ITB will detail how the award will be
determined.
12.2 Request for Proposal (RFP)
The department’s c ontract administration unit , is responsible for the development and
management of all Requests for Proposals (RFP). An RFP is generally utilized for
soliciting competitive proposals for the acquisition of services or complex purchases. A
RFP includes a description of a problem or need in general terms, specific contract
terms and conditions, a detailed scope of work, and evaluation criteria. The RFP is
published to solicit written proposals from suppliers that describe a solution or approach
to providing the services identified by the RFP and include a cost proposal indicating the
supplier’s price for services.
Based on factors including, but not limited to those outlined below, the business s upport
m anager will determine if an RFP is the appropriate method for contracting the partic ular
service or complex purchase.
The relative skills, expertise, or technical capability of the suppliers that will have
to be evaluated
The anticipated cost, although cost is only one factor to be considered for the
characteristics of the property or service sought
Whether the acquisition is for highly complex or technical property or services
Methods for evaluating the supplier’s approach, management capabilities,
innovation, or other technical factors
Phases of the RFP Process
The RFP process is one piece of the first two phases of the c ontract life c ycle
managed by the CAU. The c ontract life c ycle includes the following four phases:
Project Plan and Development, Solicitation, Contract Management, and Contract
Close-Out. Below is a brief overview of the Project Plan/Development and
Solicitation processes:
RFP Development – the CAU and contract team work to develop specifications,
terms and conditions, scope of work and evaluation criteria
Finalize RFP - CAU obtains final approval from department leadership and DOP
Publish RFP – DOP posts the RFP on e-procurement system for public viewing
and may also notify potential suppliers of the solicitation
Pre-Proposal Conference – CAU and DOP offer contractors the opportunity to
ask questions prior to the RFP closing
Contractor Proposals Due – DOP receives and conducts initial review of
responses submitted by the RFP deadline
Evaluation – CAU selects evaluation team to score proposals based on the
contract team’s evaluation criteria
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Intent to Award – DOP will issue the intent to award letter. Each individual RFP
will detail how the award will be determined
Appeal Period – DOP allows bidders an opportunity to appeal award within 5
working days following receipt of notice that they are not the lowest responsible
bidder
Award – DOP awards contract in the form of a Contract Purchase Order (CPO )
for a specific term (duration) which may also include renewal(s)
Evaluation and Criteria for Proposals
The CAU identifies and selects an evaluation team based on subject matter
expertise and ability to provide an unbiased review of the technical proposals . DOP
oversees the technical evaluation process. The evaluation is based on the
evaluation criteria set forth in the RFP. Numerical rating systems are generally used
but are not required. Factors not specified in the RFP should not be considered in
determining criteria to evaluate proposals for an award of a contract.
DOP evaluates the cost proposal, which has been kept separate from the technical
proposal. DOP will then combine the technical and cost proposals based on the
weighting defined in the RFP and present the results to the department.
Award of RFP
A written determination shall be made explaining how the award was found to be
most advantageous for the department based on the evaluation criterion set forth in
the RFP. DOP will make the award. After issuance of notice of intent to award, the
Idaho Public Records Act will control the extent of public inspection of proposals.
If only one proposal is received in response to a RFP, the department may, as it
deems appropriate, make an award, pursue negotiations in accordance with
applicable conditions and restrictions of IDAPA 38.05.01, or reject the solicitation
and new bids or offers may be solicited or the proposed acquisition may be
canceled.
13. Methods for Awarding (RFQ, ITB, and RFP)
Below are some of the methods that may be used for awards:
Award based on Lowest Responsive Quote
Award shall be made to the supplier offering the lowest responsive quote.
Responsive means the quote was received on time and the supplier’s quote
conforms to all specifications referenced in the RFQ. Comparisons of costs
should include all costs, including such items as delivery costs, setup charges,
removal charges, labor charges, and additional materials required, and other
elements described in the quotation. Purchasing will maintain documentation for
all purchases $10,000 or greater for auditing purposes.
Award based on Best Value or Weighted Analysis
To determine best value, a weighted analysis may be used. In a weighted
analysis, cost is only one factor in determining the award. Other factors may
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include evaluation of s pecifications, comparative performance examinations,
supplier references, product usability, flexibility, maintenance, company
resources, previous experience, etc. To assure a fair determination of award,
identified factors are weighted according to import ance in the overall purchasing
decision. Relative scores are assigned to each factor, including price, to
determine the lowest acquisition cost. Although this process is typical in
evaluating RFP criteria, this process could also be used in evaluating RFQ’s and
ITB’s.
Award based on Life-Cycle Costing
Awards may also be made to suppliers offering the lowest life -cycle cost. Life
cycle costing means the total cost of an item for its entire life span. It includes
initial purchase price, operating supplies, maintenance, repairs, salvage value,
and disposal costs.
14. Developing Specifications
Specifications may be developed by the end user and/or by purchasing. It is, however, the
responsibility of purchasing, with input from the end user, to develop complete specifications
for purchase requests that are sent to DOP for processing.
Specifications refer to a description of the characteristics of a commodity or service required.
Specifically, they are defined as the explicit requirements furnished with a solicitation upon
which a purchase order and/or a contract is to be awarded. Specifications define the
characteristics of the property and services to be purchased , enabling the supplier to
understand what is to be supplied. This information may be in the form of a de scription of
the physical, functional, or performance characteristics and may include a referenced “brand
name or equal”. The specification may include a description of requirements for inspecting,
testing, or preparing a material, equipment or service for delivery. Specifications may be
incorporated by reference and/or through attachment to the solicitation. Specifications are
written to encourage maximum competition of capable suppliers .
If it is determined that a specific brand name with no equivalents is required for the
specification, then purchasing will have to request an exemption from the DOP administrator
before releasing the quote/bid.
The function of specifications is to provide a basis for obtaining a commodity or service that
will satisfy a particular need at an economical cost. A good specification should:
Identify minimum requirements
Allow for competitive bidding
Where applicable, list reproducible test methods to be utili zed for determination of
compliance with specifications
Specification Checklist
To assure that specifications meet the above criteria, use of the following checklist is
suggested:
Specifications should be clear and accurate to the supplier and end user, but not be
so specific that they eliminate competition.
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Specifications should be flexible to maximize the number of bidders.
Specifications should be verifiable.
Tolerance call-outs should only be as specific as necessary to meet end-user needs
and not unnecessarily limit competition.
Purchasing will review and assist in completing the specifications , as well as provide
guidance on meeting DOP requirements.
15. Building Improvement Purchases
Purchases or services that are needed for building improvements follow Division of Public
Works (DPW ) processes and guidelines. These projects and processes are much different
than procurements of property so requestors need to consult with purchasing for guidance
on the appropriate process for these types of procurements. The department may use
contractors who have been awarded service contracts through DPW, including but not
limited to trades such as; HVAC, flooring, electrical, plumbing and light constru ction. DPW
executes these contracts for the use and benefit of the state and its agencies. The
department may also utilize other state agency service contracts but must contact and
receive approval from that agency prior to contacting the service provider. If the department
chooses to use either type of service contract, it is not necessary to obtain three (3) bids but
is highly recommended to request multiple bids in an effort to promote competition in
securing the lowest responsible bid.
Projects estimated to cost $100,000 or more are managed by DPW. These projects are
coordinated through the construction group in management services.
Projects estimated to be less than $100,000 are managed by the department. It is
recommended by DPW that if a project’s estimated spend is approaching $90,000, then the
project should be managed by DPW.
Purchasing will help facilitate the following:
Informal bid documents
Legal notices
Coordinate, schedule and lead pre-bid meetings
Issue amendments and change orders
Answer contractor questions via amendment
Verify and/or obtain insurance certifications, public works license, performance
bonds, completed “General Security Requirement” forms and background checks
Iss ue Notice of Intent to award and final award
16. Professional and Consultant Service Agreements
Professional and Consultant Service Agreements can be exempt from the formal sealed bid
procedure per IDAPA 38.05.01.044, Section 7, if they do not exceed $100,000 and have a
contract term of no more than one (1) year.
Professional and Consultant Services are primarily service-orientated and are defined in
IDAPA 38.05.01.011, Sections 12 and 29 Definitions. The department end user will work
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with the CAU c ontract officer in developing the scope of work and deliverables . The division
requiring the contracted service will assign a staff member to manage and monitor this
contract by providing periodic progress reports and, at the end of the contract, a close-out
report.
Due to these agreements lasting up to one (1) year, it is the responsibility of the end user to
notify the CAU c ontract officer of any changes, such as changes to the scope of work,
contract term or deliverables so an amendment can be executed.
The business support m anager must sign all Professional or Consultant Service
Agreements using delegated purchasing authority. The department director, or designee,
must also sign these contracts. A central file of all signed contracts is maintained in
purchas ing.
17. Information Technology Consultant Contracts, Project Service Order (PSO )
DOP has executed statewide open contracts with a number of IT service providers. The
department is required to utilize these open contracts for IT services found on DOP’s
Statewide Contract website. Other related information found on this website regarding
these services includes:
Instructions for using IT Services Contracts
IT Services Categories and Category Subservices
IT Services Contracts Award by Category List
Project Service Order( PSO ) Form
IT Services Contract Contractor Pricing
The department’s CAU contract officer and the requestor of the IT services will develop the
PSO deliverables. The CAU contract officer will solicit responses from the IT service
c ontractors who have 5 working days to respond to the PSO. Once PSO responses are
received from IT service contractors, the CAU contract officer will perform an evaluation of
the responses. An IT s ervices c ontractor(s) will be selected based on the best interests of
the department, to include factors such as price, availability, support services, and delivery
that are most advantageous to the department.
Due to these contracts lasting for several months, it is the responsibility of the end user to
notify the CAU c ontract officer of any changes, such as scope of the work, contract term or
deliverables so an amendment can be executed.
An IT Project Service Order contract may require monitoring during the term of the contract.
The requestor or department end user of the IT services will need to periodically provide
progress reports and at the end of the contract provide a close-out report.
Where there is no statewide open contract for the procurement, information technology
PSOs that do not exceed $100,000 (through a fixed price/not to exceed price contract) for a
non-renewable term of no more than one year are exempt from the formal bid procedures
per IDAPA 38.05.01.044, Section 7.
18. Leases
There are a variety of lease options available to the department and the type and term will
dictate the appropriate process:
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Equipment Leases
The department may, subject to competitive bidding requirements, enter into equipment
leases using the same requirements and dollar limits as purchases and where the
leases do not exceed one (1) year in length. Purchasing must sign all leases
established using delegated purchasing authority. A central file of all signed leases is
maintained in purchasing. All leases exceeding one (1) year in length must be processed
through DOP.
Property Leases
Leases and rentals of real property are managed by the Division of Public Works (DPW ).
Purchasing will work with the DPW leasing manager in initiating, canceling and renewing
leases. A central file of all signed leases is maintained in purchasing.
Multi-function Printer (MFP’s) Leases
All department lease agreements for multi-function printers (MFP’s) are processed and
managed by purchasing using statewide open contracts. Purchasing will coordinate the
delivery of the equipment on behalf of the end user as well as create cancellation notices
for expired or soon to be expired equipment. IT also needs to be notified about pending
deliveries in order to network equipment.
19. Requests for Information
Requests for Information (RFI) are used to gather information from as many sources as
possible. The requests can be facilitated through the contract administration unit. There is
no obligation to expend funds or incur liability. The results gathered can be useful in
developing specifications for a bid or RFP. In developing an RFI, the following should be
considered and included to obtain valuable information:
Define the purpose and state the intent of the RFI
Include a disclaimer that the RFI is made for informational and planning purposes only
Describe the current situation, question, or problem
Describe financial considerations or limitations , if appropriate
Define the overall plan
Schedule a conference call with interested suppliers , if needed
Explain that the RFI is a solicitation for general pricing information
Provide the closing date and address for responding to the RFI
Evaluate the responses and develop a future course of action
20. Emergency Purchasing
Idaho Code Section 67-5720 authorizes a limited exception to informal and formal bid
process es for emergency purchases. DOP rule IDAPA 38.05.01.043 defines an
emergency as follows : “An emergency condition is a situation that creates a threat to
public health, welfare, or safety such as may arise by reason of floods, epidemics, riots,
equipment failures, or other similar circumstances. The existence of such condition must
create an immediate and serious need for property that cannot be met through normal
acquisition methods."
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Purchasing shall make a written determination stating the basis for any emergency
purchase exceeding $10,000 and for the selection, if applicable, of the particular
supplier. Such determination shall be sent promptly to the administrator of the DOP for
review and written approval that the purchase be under taken as an emergency
purchase.
DOP, after determining that an emergency exists, may authorize the purchase of
property or services necessary to meet the emergency, with any available specifications ,
without regard to the bid provisions of the DOP rules .
In an extreme emergency, agency personnel may take whatever purchasing action
necessary to resolve the emergency, to be followed by a written explanation and
summary of the action takento purchasing. Purchasing will prepare the emergency
documentation, signed by the director (or designee), and provide to DOP
21. Exemptions and Justifications
In order for the department to be exempt from following the above informal and formal bid
procedures, there are various DOP exemption forms that, depending on the circumstances,
need to be submitted by purchasing and approved by the DOP administrator prior to
purchase. These exemptions include:
Sole Source Authorization (SSA)
This form is required to purchase an item that only a single supplier can provide.
Reques ts for sole source purchases describe an item made only by one manufacturer.
However, if the item is distributed and readily available from many different suppliers it
does not qualify for sole source. It has a sole manufacturer, but not a sole supplier. As
long as there is more than one potential bidder or offer for the property item, there is no
justification for a sole source determination. An SSA needs to be completely filled out
and signed by the business support m anager justifying the source. The DOP
administrator will approve by signing and returning the form to the purchasing agent.
One Time Exemption from Competition
This exemption needs justification from purchasing and approval from the DOP
administrator. There are certain circumstances where this exemption is advantageous to
the department. These situations need to be discussed with the business s upport
m anager in order to validate the request and submit it to DOP for approval.
Exemption from a Statewide Open Contract
This exemption must be justified and requires approval by the DOP administrator.
Purchasing will make this request to receive DOP administrator approval.
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One Time Limited Delegated Purchase Authority (DPA)
Typically, this exemption is recommended by the DOP liaison to the department and is
requested by the business s upport m anager for purchases ranging from $50,000 to
$99,999.
Brand Name Only
For this exemption, the department must receive approval to specify a particular
manufacturer in a solicitation. This request must be made by purchasing and must be
approved by the DOP administrator.
22. Policy Directives
Directives are created to exempt agencies from reoccurring purchases where competitive
bidding is impractical, disadvantageous or unreasonable unde r the circumstances. This
request must be submitted by the business support m anager and approved by the DOP
administrator.
DEFINITIONS
Contracting: The process of establishing term agreements with suppliers for the delivery of
products and/or services for a specific length of time. A contract shall also include
amendments and/or change orders.
Department: The State of Idaho Department of Correction
Division of Purchasing (DOP): A division within the state of Idaho’s department of
administration that is responsible for the oversight of all state purchasing activities.
ITB: Invitation to bid – Includes all documents, whether attached or incorporated by
reference, utilized for soliciting formal sealed bids.
Statewide Open Contract. A contract awarded by the DOP to one or more vendors who
have agreed to allow all state agencies to procure or purchase specified property under the
terms and conditions set forth in the contract.
Property: Goods, services, parts, supplies and equipment, both tangible and intangible,
including, but nonexclusively, designs, plans, programs, systems, techniques and any rights
and interests in such property. This includes concession services and rights to acces s or
use state property or facilities for business purposes.
RFQ: Request for Quote - The document, form or method generally used for purchases
solicited in accordance with small purchase or emergency purchase procedures.
RFP: Request for Proposal - Includes all documents, whether attached or incorporated by
reference, utilized for soliciting competitive proposals and is generally utilized in the
acquisition of services or complex purchases
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REFERENCES
Department Policy 1 47
Idaho Code Section 67-5717(10) and 67-5732
IDAPA 38.05.01, Rules of the Division of Purchasing
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