What s New in Procurement OGS OSC Purchasing Forum May

What’s New in Procurement? OGS/OSC Purchasing Forum May 18&19, 2005 Walter Bikowitz Director OGS Procurement Services Group walt. bikowitz@ogs. state. ny. us

What’s New In Procurement Topics for Today • • Homeland Security Aggregated IT Buys Green Purchasing Mercury Legislation Renewable Energy Playground Equipment Procurement Legislation/Reform

What’s Happening? By whom For whom Procurement Partnerships

Homeland Security Workgroup Created August 2004 • Developed as a need to form better communications among multiple agencies with homeland security needs • Provide linkage between the needs of first responders and state procurement officials

Workgroup Members • Office of Homeland Security (OHS) • NYS Cyber Security and Critical Infrastructure Coordination (CSCIC) • Weapons of Mass Destruction (WMD) • NY State Association of Municipal Purchasing Officials (SAMPO) • State Emergency Management Office (SEMO) • NYC Department of Citywide Administrative Services (DCAS) • NYS Police • Empire State Development (ESD) • OGS Information Technology, Procurement Services, and Finance • Office for Technology (OFT)

Homeland Security Funds • Per David Bates – Editor of Governing Magazine – $9 Billion federal funds allotted to state and local government during 2003 -2004 • Target areas such as: • First responders (Weapons of Mass Destruction Taskforce (WMDT) training, personal protective equipment, communications, data technology – intelligence sharing, emergency ops centers, etc. ) • Bio-terrorism (planning and readiness assessments) • Health and safety • Security systems • Communications

Workgroup Mission • Needs identification utilizing Urban Area Security Initiative (UASI Grant money) and input from Workgroup members. • Cross match needs against existing contracts. • Determine products and services required. • Identify those products and services best obtained under OGS contracts. • Prioritize procurements. • Assist in providing information and education to first responders.

First Task • OGS cross matched UASI Grant • 18 categories of commodities & services with state contracts • Workgroup reviewed information • Identify the changing needs of the state agencies and municipalities

Collaboration • Identify current and potential vendors for radio, security systems, Homeland Security, and health and safety equipment • Develop a strategy for the procurement – Interface with a varied vendor environment for these needs (manufacturers, resellers, integrators, service providers, etc. )

PSG Efforts • Created Excel spreadsheet and web page • Reviewed comprehensive catalog contracts, piggyback contracts, SBI, NASPO Cooperative contracts, etc. to identify HS products • Discussed Initiatives on the drawing board – Hazardous Incident Contract (BO March 29) – Comprehensive Radio Communications Contract

Governing News Article January 10, 2005 Headlines Governing Magazine Says • NYS pioneers system for homeland purchases • Creates 1 st homeland security system for both state and local governments • Valuable service to New York first responders that other states should model after

Results • • • Creates an efficient method marketplace information. of obtaining Creates an efficient method of communicating to vendors how the state plans to procure homeland security commodities and services. Determines the types of contract vendors and the alternatives to direct contracts with respect to comprehensive catalog contracts.

Hazardous Incident Response Equipment (HIRE) • New Contract Initiative – March 29, 2005 Bid Opening (Received 62 bids) • Comprehensive catalog contract providing for discount for a minimum of 13 categories of HS equipment covered by UASI grants and Law Enforcement Terrorism Prevention Program Funding • Major multi-state initiative with 14 other states (NY lead for NASPO sponsored cooperative) • Has created national interest • Five year term with renewals

Bid Results • Initial awards to cover the broad spectrum vendors • Additional awards to niche market vendors • Most equipment needed for domestic preparedness and disaster events should be covered • Awarded to multiple vendors to meet multiple needs

HIRE Categories 1. 2. 3. 4. 5. 6. 7. Personal Protective Equipment (PPE) Explosive Device Mitigation and Remediation Equipment CBRNE Search and Rescue Equipment Detection Equipment Decontamination Equipment Physical Security Enhancement Equipment Terrorism Incident Prevention Equipment 8. 9. 10. 11. 12. 13. CBRNE Logistical Support Equipment (chemical, biological, radiological, n uclear, explosive) Medical Supplies CBRNE Reference Materials Agricultural Terrorism Prevention, Response and Mitigation Equipment Intervention Equipment Other Authorized Equipment

Other HS Initiatives • Communications (Radio) Bid Initiative Anticipated bid opening - August ‘ 05 ü ü multiple award five years include maintenance provide for adding new products and emerging technologies • Security Systems – under consideration

Communications Bid Will include but not limited to: ü two-way radios, ü related infrastructure components, and ü supplemental systems for public safety and non-public safety agencies to support their critical missions. Worked diligently with OFT SWN* team to ensure compatibility with OFT proposed award *Statewide Wireless Network

11 Categories 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Open. Sky Trunked Radio Infrastructure Project 25 Radio Infrastructure Dual Mode Trunked Radio Infrastructure Conventional Analog Radio Infrastructure Open. Sky Radios and Accessories Project 25 Radios and Accessories Dual Mode Radios, Analog Trunked Radios, and Accessories Conventional Analog Radios and Accessories Aviation, Marine, Amateur Radios and Accessories Mobile Data and Automatic Vehicle Location (AVL) Systems 11. Public Safety Paging System

Aggregated IT Buys • New PSG Team 10 - commonly known as Aggregated Buy Team • Concept – leverage government IT buying power against existing contracts. Conduct BAFOs across multiple state and local agencies • Proof of concept demonstrated valuable cost savings measures

Process • Agencies submit Annual Technology Plan (ATP) to OFT • OGS, OCIO, OFT review plans for anticipated technology procurements • Survey agencies through OCIO listserv • Determine standard specs and quantities • OGS Solicits RFQ and evaluates the BAFOs

Recent PC Example • Standard Spec for approx. 7000 PCs in 4 classes: – Desktop (business class and workstation) – Laptops (light weight and business class) • Time Frame – 90 day window for purchases (Feb. 15 - May 15) – all deliveries within 15 days • Standardized on 4 vendors – based on installed base – ability to manufacture and deliver volume PCs in 15 days

Bid • Distributed to four NYS contract vendors on February 8, 2005. • Received vendor responses from Dell, HP, IBM and Gateway on February 15. • Agencies ordering from other than low priced vendor must receive OFT/OCIO approval.

Dramatic Results • Winners were Dell (3 items) and HP (1 item) • Dell and HP increased discounts over and above contract discounts by >40% • 11, 000 PCs purchased by approximately 50 state and non-state agencies by March 31 • Covers purchases made through May 15 • Projected $7 million savings through March 31! • Saved 4 agencies @34% over and above their best negotiated price!

One agency savings • One agency saved $385, 000 • Prices lowered by $550/PC over a single agency BAFO for 700 machines • More aggregated purchases will occur after current review of ATPs! – – Printers Goal for Quarterly PC buys Software Monitors?

Executive Order (EO) 134 Environmentally Preferable Products (EPP) • EO dated January 5, 2005 • All state agencies shall procure and use cleaning products having properties that: – Minimize potential impacts to employees, custodial workers, visitors and other building occupants, and – Promote adoption of practices endorsed by EO • Recognize state agencies that employ environmentally managed practices.

What’s The Definition Of Green Cleaning Products?

There is NO standardized definition!

Green Products • May include but not be limited to: – Mercury free – Non-toxic (or less toxic) – Minimal disposal impact – no hazardous impact – Recycled content (post consumer) – Energy Efficient – Reprocessed or reused

Green Purchasing Also known as “Environmentally Preferable Purchasing” - EPP • State agencies shall procure: ü Products that have a reduced environmental impact while maintaining the same quality and performance. ü Products that minimize health risks. • State Agencies shall provide training for correct use of products.

EO Requirement • EO charges OGS, DOH and DEC to provide consultation and guidance to state agencies to: – Select and procure products that reduce or minimize the risks of harmful effects to employees. – Promote adoption of EO 134 practices. – Recognize state agencies that adopt and implement environmentally beneficial facility and workplace management policies and practices. – Encourage contractors to supply goods and services to agencies. – Encourage landlords and building managers to select and procure EPP products.

OGS • Created web site with many resources • Offer training session at Purchasing Forum • Coordinate with DOH and DEC to provide guidance • Use Green/Clean in buildings

Customer Examples • Integrated Pest Management (IPM) in buildings • Low VOC paint and cleaners (volatile organic compound) • Cleaning products with base of orange or citrus essence (SBI) • Bio-diesel fuel • Fewer disposable cleaning supplies and packaging • Bulk packaging

Web Site includes – List of Preferred Source green products – List of industry resources – Green Seal, Inform, Center for New American Dream, etc. – List of other states’ contracts • Massachusetts required product samples tested by independent lab for cleaning effectiveness, ease of use, and odor. • City of Santa Monica documented 5% savings. – FAQs – List of Green Seal certified contract products – List of contract products self-identified by contractors as environmentally preferable – Links to nationally recognized government experts in EPP including: EPA, DEC, GSA

What Must You DO? • Shall purchase environmentally preferable products or document the reasons for selecting alternative products. • Reach out to experts including DEC and DOH and compile list of criteria to use to evaluate products. • Research best practices for EPP. • Research cleaning product specifications as cleaning methodology affects formulas. • Review FAQs.

Agency Delegation • Assign an individual to: – Assess current management practices and use of product – Evaluate products to conform – Identify and procure conforming products within the next six months allowing for phase out of nonconforming practices and allows for training – Document reasons for selecting non-conforming product

Reporting • Chief agency executive shall prepare an assessment retained as a document available to employees and the general public of the efforts undertaken to comply – review and update every two years • Local government and schools encouraged to review their practices are

Mercury Legislation Chapter 145, Laws of 2004 of Environmental Conservation Law

Mercury Issues • Mercury is a toxic substance. • Significant problem in the Northeast. • Release of mercury from landfill and incinerators pollute water supplies. • Toxic vapors from exposure to unacceptable levels of mercury can cause neurological harm to people.

The Law • Prohibits the purchase and use of elemental mercury by primary and secondary schools after September 4, 2004. • Prohibits sales of toys or novelty products containing mercury after January 1, 2005. • Requires products containing mercury to be labeled after July 12, 2005. • Prohibits waste products containing mercury from being incinerated after July 12, 2005. • Requires waste products containing mercury to be managed separately from other solid waste effective July 12, 2005.

Purpose of Legislation • Increase consumer education. • Encourage informed purchasing. • Bolster programs designed to separate, collect and properly manage or recycle mercury-added products.

Mercury Products Examples of mercury-added consumer products • • • Thermostats Switches Medical or scientific instruments Fluorescent light bulbs Batteries, etc.

Maybe now is a good time to go digital • Sales of mercury thermometers are restricted after January 1, 2005.

Product Bans Effective 1/1/05 ü Mercury fever thermometers ü Mercury-added novelty decorations, etc. ) product (figurines, ü Elemental mercury effective September 4, 2004, by primary or secondary schools except for medical, dental, research, and manufacturing.

Legal Requirements • Law provides for exceptions and penalties for improper disposal • Advisory committee to report on: ü the extent and health effects of mercury contamination, ü methods and costs to remove risks from mercury contamination, and ü other related topics.

Mercury Labeling • After July 12, 2005, manufacturers must label products and provide for proper disposal (responsibly managing the waste) from mercuryadded consumer products. • Mercury added products must clearly and conspicuously inform the consumer that mercury is present and shall not be disposed of or placed in a waste stream. • Automobiles are to be labeled on doorpost that lists the mercury-added components present. • PSG inserted a clause in bids regarding the law.

Mercury Clause MERCURY-ADDED CONSUMER PRODUCTS Bidders are advised that effective January 1, 2005, Article 27, Title 21 of the Environmental Conservation Law bans the sale of fever thermometers containing mercury and the sale of elemental mercury for other than research purposes due to the hazardous waste concerns of mercury. The law further states that effective July 12, 2005, manufacturers are required to label mercury-added consumer products that are sold or offered for sale in New York State by a distributor or retailer. The label is intended to inform consumers of the presence of mercury in such products and of the proper disposal or recycling of mercury-added consumer products. Bidders are encouraged to contact the Department of Environmental Conservation, Bureau of Solid Waste, Reduction & Recycling at (518) 402 -8705 or the Bureau of Hazardous Waste Regulation at 1 -800 -462 -6553 for questions relating to the law. Bidders may also visit the Department's web site for additional information: http: //www. dec. state. ny. us/website/dshm/redrecy/c 145 home. html

SBI/FPA • Vendors who can assist with electronics recycling and hazardous waste (mercury) removal Group 79000 • SBI – Small Business Initiative – Permits state agencies to directly purchase up to $50, 000 from New York State Small Businesses – Three computer recycling initiatives • FPA – Filed Price Agreement – Permits state agencies to directly purchase up to discretionary thresholds from businesses out of state or not deemed small – Eight computer recycling and hazardous waste removal agreements

Mercury Resources • Exemptions and more information about law is available at: http: //www. dec. state. ny. us/website/dshm/redrecy/c 145 home. html • Bureau of Solid Waste, Reduction & Recycling at (518) 402 -8705 for household waste disposal questions • Bureau of Hazardous Waste Regulation at 1 -800462 -6553 for questions about the disposal of mercury-containing products for businesses. • Both may be reached by e-mail at: dshmwrr@gw. dec. state. ny. us

Renewable Electrical Energy Attributes (Green Power) • EO 111 states by 2005 all agencies will by purchasing 10% of their electricity from a renewal source. • Considering renewable electrical energy contracts • Purchase renewable energy credits (premium generator can charge for rights of generator production) • Power into ISO (independent system operator) displaces conventionally generated electricity

Create State Market • Foster development of renewable energy sources in state • Solar, wind, bio-mass, wood fire plant, geo thermal, etc. • Looking at this as an initiative

Playground Equipment • • New Contract Initiative Bids due May 26, 2005 Manufacturers or dealers Competitive “Brand Bid” with one award to each manufacturer line of playground equipment

Procurement Legislation/Reform • SFL § 163 sunset extended to June 30, 2006 • Various legislative proposals are being and may continue to be made in the next year • This is not a comprehensive list but some of the important proposals being advanced

Procurement Lobbying • Governor, Senate and Assembly have all advanced procurement lobbying proposals • Proposed procurement lobby reform would: – Subject additional forms of lobbying to regulation by Lobby Commission – expand the Lobby Commission jurisdiction to include lobbying on Exec. Orders, Tribal/State agreement and “permissible contacts in the procurement process” – Close loopholes in current lobby law – Provide greater enforcement of lobby law – Clarify due process rights for persons subject to Lobby Commission jurisdiction

Procurement Lobbying • To various degrees the Governor, Senate and Assembly propose: – Amending Public Officer’s Law & SFL to prohibit lobbying on governmental procurements of governmental contracting agencies – Prohibit attempts to influence a procurement during the pendency of procurement (i. e. : from point of advertisement of procurement until contract award • The Governor, Senate and Assembly each offer alternative ways to accomplish these goals • OGS Prognosis – The parties will hammer out an agreement

OSC Procurement Reform

OSC Procurement Reform • Discretionary buying threshold: – SFL § 163. 6: increase from $15, 000 to $50, 000 – Increase $50, 000 to $100, 000 for certified M/WBEs – GML: increase local government discretion from $10, 000 to $20, 000 – Increase public works contracts from $20, 000 to $50, 000

OSC Procurement Reform • Improved Oversight/Accountability: – Split ordering: propose 1 year rule – Vendor Responsibility: develop a vendor management system – Debriefing: proposal for agencies to fully debrief after agency award determination prior to submission to OSC • Propose OSC review of high value agency “contracts” pursuant to OGS contracts

OSC Procurement Reform • Other proposals: – Extend PSA for 5 years – Open grant programs to for profit entities – Clarify appropriate use of piggybacking but also permit local governments to piggyback other state and federal contracts – Allow OSC to waive minor contract deviations – Prompt contracting – E-Procurement: encourage a comprehensive plan for electronic system • OGS prognosis: Some of these proposals will become law in some form

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