New York State Purchasing Forum May 14 -15

New York State Purchasing Forum May 14 -15, 2002 George E. Pataki Governor Kenneth J. Ringler Commissioner OGS Announces New Methods in “IT” Procurement Presented by OGS Procurement Services Group

New “IT” Guidelines Walter Bikowitz Assistant Director OGS Procurement Services Group walt. bikowitz@ogs. state. ny. us 2 Forum 2002

Overview Guidelines for OGS “IT” contracts are diverse Each guideline was developed over time It is time to take a step back Announcing new, more uniform guidelines for OGS contracts 3 Forum 2002

“IT” & Telecommunications Contract Areas PCs/Servers* Printers* Software* Computer Consulting Training & Systems Integration (CCTSI)* Networking Hardware & Software* Systems and Peripherals ü Interactive Voice Response (IVR) ü Video Conferencing ü Electronic Key Systems ü Digital Centrex ü PBX Installations ü Cabling (purchase & install) *Note: “IT” requires OFT approval. Purchases > $20, 000 for software. Purchases > $50, 000 hardware & services 4 Forum 2002

PCs/ Servers – No change Today: ÒPurchases < $50, 000 buy direct off OGS contract of choice ÒPurchases > $50, 000: • Aggregate agency purchases when possible • Obtain pricing from 3 contractors or, • Follow pre-approved policy on file with OSC • No OSC pre-approval required 5 Tomorrow: ÒPurchases < $50, 000 buy direct off OGS contract of choice ÒPurchases > $50, 000: • Aggregate agency purchases when possible • Obtain pricing from 3 contractors or, • Follow pre-approved policy on file with OSC • No OSC pre-approval required Forum 2002

Printers Today: ÒAggregate ÒPurchases > $50, 000: • Obtain pricing from 3 contractors or, • Follow pre-approved policy on file with OSC • Older contracts require OSC pre-approval > $150, 000 • New contracts - no OSC pre-approval required 6 Tomorrow: ÒAggregate ÒPurchases > $50, 000: • Obtain pricing from 3 contractors or, • Follow pre-approved policy on file with OSC • New contracts - no OSC pre-approval required Forum 2002

Systems and Peripherals Today: Tomorrow: ÒPurchases > $50, 000: • Recommended pricing from 3 contractors • Procurement record • Competition from at least 3 required • Procurement record • No OSC pre-approval ÒPurchases > $150, 000 • Competition from at least 3 required • Procurement record • OSC pre-approval 7 Forum 2002

Software Today: ÒSoftware Catalog Contract - ASAP ÒUnlimited purchase of product ÒNegotiated Contracts Ò 20% Rule • > 20% of product and maintenance cost, services bid 8 Tomorrow: ÒSoftware Catalog Contract - multiple ÒUnlimited purchase of product ÒNegotiated Contracts Ò 20% Rule • No change – under discussion Forum 2002

Computer Consulting (CCTSI) Today: ÒMini-bid required > $15, 000 9 Tomorrow: ÒMini-bid required > $15, 000 ÒNew processes under discussion Forum 2002

Networking Hardware & Software Today: ÒUnlimited purchase of product ÒOSC pre-approval required > $500, 000 Ò 20% Rule • > 20% of product cost, services bid only 10 Tomorrow: ÒUnlimited purchase of product ÒNo OSC pre-approval required Ò 20% Rule • No change – under discussion Forum 2002

Interactive Voice Response & Video Conferencing Today: Tomorrow: ÒPurchases > $50, 000 • Obtain pricing from 3 contractors or, • Single/Sole source justification • OSC pre-approval > $150, 000 11 ÒPurchases > $50, 000: • Obtain pricing from 3 contractors or, • Single/Sole source justification • No OSC pre-approval required Forum 2002

Electronic Key Systems & Digital Centrex Today: ÒPurchases > $1 • Obtain BAFO from the 3 available contractors • Best Value choice (usually lowest price in this case) • No OSC pre-approval 12 Tomorrow: ÒPurchases > $50, 000: • Obtain BAFO from the 3 available contractors • Best Value choice (usually lowest price in this case) • No OSC pre-approval Forum 2002

PBX Installations Today: ÒMini-bid required > $15, 000 (agency discretionary limit) ÒOSC pre-approval required > $15, 000 13 Tomorrow: ÒMini-bid required > $15, 000 (agency discretionary limit) ÒOSC pre-approval required > $15, 000 Forum 2002

Cabling – Purchase & Installation Today: ÒObtain OGS approval for buys over $75, 000, ÒObtain OGS approval for any buys in OGS owned or operated building ÒNo OSC pre-audit 14 Tomorrow: ÒNotify OGS of any buys in OGS owned or operated building ÒNo OSC pre-audit Forum 2002

Summary Note: If you paid attention, you noticed that 12 “IT” contract guidelines have been compacted into 6 PCs, Servers, Printers, Systems and Peripherals, Networking Hardware and Software, IVR, Video Conferencing: ü< $50, 000 - Buy direct ü> $50, 000 - Obtain pricing from 3 contractors üNo OSC pre-approval 15 Forum 2002

Summary Key Systems and Digital Centrex: Ò>$50, 000 – Compete the 3 vendors on contract ÒBest value award ÒNo OSC pre-approval PBX and CCTSI: Ò>Changes forthcoming Cabling – notify OGS in OGS owned and operated facilities 16 Forum 2002

Summary When is tomorrow? June, 2002! Except multiple award for software 17 Forum 2002

STANDBY CONTRACTS: A New Technology Services Option In Development Presented by: Suzanne Nelson Assistant Director Suzanne. nelson@ogs. state. ny. us 18 Forum 2002

Current Procurement Options under the Computer Services Backdrop Contracts Formal mini-bid process Fast Track Discretionary Purchases 19 Forum 2002

Formal Mini-Bid Required for most consulting and all training and systems integration requirements > $50, 000 Must solicit all applicable pre-qualified contractors 20 Forum 2002

Fast Track Streamlined process for consulting (staff augmentation) only based on hourly rates Must solicit all applicable pre-qualified contractors for requirements > $50, 0000 21 Forum 2002

Discretionary Purchases For service requirements < $50, 000 Purchase direct from small or MWBE contractors Otherwise, solicit a minimum of 3 contractors 22 Forum 2002

Another Procurement Option Why? Over 477 active contracts as of mid-April 2002 As many as 312 contractors pre-qualified for a specific service and category of expertise Customers may receive over 100 responses to a mini-bid or Fast Track solicitation 23 Forum 2002

Goals and Objectives Create a new procurement option to streamline the use of the backdrop contracts Reduce the number of contractors that customers must solicit for specific tasks Reduce the time to conduct the procurement process Provide customers a more manageable and controlled process to acquire IT services 24 Forum 2002

An Overview What are standby contracts? When are standby contracts the right option? How are they established? How do I use them? 25 Forum 2002

What Are Standby Contracts? Unique subset of the backdrop contracts Tailored to a specific customer’s needs Streamlined and efficient Up to three-year period 26 Forum 2002

When Should I Use Standby Contracts? Consulting services based on hourly rates Staff augmentation Instructor led training 27 Forum 2002

Getting Started Analyze your anticipated needs Notify Office for Technology if requirements are expected to exceed $50, 000 28 Forum 2002

Guide to Creating The Project Definition (PD) Overview of environment and platforms List of specific titles mapped to 12 general backdrop titles Evaluation criteria, technical and cost How many contracts? How will the tasks be assigned? 29 Forum 2002

Guide to Creating A Request For Training Services (RTS) A broad description of anticipated training needs Backdrop not-to-exceed pricing governs Evaluation criteria, technical and cost How many contracts? How will the tasks be assigned? 30 Forum 2002

A Closer Look……… The Evaluation Criteria – What Represents Best Value? Overall capabilities of the company Do consultants have access to company’s resources? Company’s pool of consultants Company’s process for selecting sub-contractors 31 Forum 2002

How Many Awards? Enough to meet your needs Not so many that administration is difficult One or many types of requirements 32 Forum 2002

Issues Under Discussion Role of OSC: pre-audit, AC 340 issues Scope of applicable services Define evaluation guidelines or criteria How work tasks will be assigned What happens if new backdrop contractors become available? Contractor performance and business transition issues 33 Forum 2002

In Summary……… Standby Contracts will: ü Be a unique subset of backdrop contracts tailored for a user’s specific needs ü Be a great option for consulting services and staff augmentation based on hourly rates and instructor led training based on per student rates ü Require a full mini-bid process to establish ü Permit efficient award of tasks for up to a three-year period 34 Forum 2002

When Will Standby Contracts Be An Available Option? Summer 2002! 35 Forum 2002

36 Forum 2002