slide #1 authority to procure for odot staff in the branches and regions responsible for obtaining...
TRANSCRIPT
Slide #1
Authority to Procure
For ODOT staff in the Branches and Regions responsible for obtaining goods and services
Updated September 15, 2009
Who has authority to conduct the procurementWhat state statutes and rules apply
Slide #2
Tutorial Overview
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Slide #3
Tutorial Outline
This tutorial covers the following topics:
Definitions
Delegations of Procurement Authority
Applicable state statutes, rules and policies
Slide #4
Definitions
DAS is an acronym for State of Oregon Department of Administrative Services which is the state department that has responsibility for the majority of state procurements.
DOJ is an acronym for Department of Justice which is the department that provides legal counsel to all Oregon state agencies, including ODOT.
MWESB is an acronym for Minority, Women and Emerging Small Businesses which are small businesses that meet specific criteria and are certified by the State of Oregon.
OAR is an acronym for Oregon Administrative Rules which are legal rules that give additional guidelines and requirements for state and local agencies to comply with requirements in the Oregon Revised Statutes.
ODOT is an acronym for Oregon Department of Transportation.
ORS is an acronym for Oregon Revised Statutes which are state laws.
Slide #5
Definitions
Procurement is the act of purchasing, leasing, renting or otherwise acquiring goods or services. “Procurement” includes each function and procedure undertaken or required to be undertaken by ODOT to enter into a public contract, administer a public contract and obtain the performance of a public contract.
Solicitation is the process of requesting price quotes, bids or proposals from the business community to fill ODOT’s needs for purchase of goods or services. Solicitation is part of the procurement process.
Slide #6
Definitions
Contract is a legally-binding written document that includes all agreed-to terms between ODOT and the vendor, contractor or consultant relative to the goods or services to be provided to ODOT following execution of the contract.
• A contract is “executed” when all required approvals and signatures have been obtained on the contract document.
• The “execution date” is the date the last required signature was obtained.
Intergovernmental Agreements are legal documents that define the obligations of all parties involved in a project, service, funding pass-through, transfer of property jurisdiction, or other cooperative arrangement.
Per ORS 190, ODOT is authorized to enter into Intergovernmental Agreements with:
• A unit of local government
• A state agency of this or another state
• The United States, or with a United States governmental agency
• An American Indian tribe or an agency of an American Indian tribe
• Another nation or public agency of another nation
Slide #7
Types of Purchases
There are various categories of things that ODOT procures:
Goods – Based on the definition in ORS 279A.010, Goods include supplies, equipment, materials, personal property including any tangible, intangible and intellectual property such as computer software, and the rights and licenses in relation thereto; and combinations of any of the items identified in this definition.
Slide #8
Types of Purchases
Services is an example of a term that is defined differently in the ORS and OAR.
Based on the definition in ORS 279A, Services is defined as all services except for those defined as “Personal Services”.
Based on the definition in OAR 125, Services includes “Trade Services”, “Personal Services”, or any combination thereof, and Trade Services is defined as all services except “Personal Services.”
Examples of services that fall under both definitions include:
• painting
• landscaping
• plumbing
• janitorial
• some training services
• geotechnical drilling
• tree removal
• roadway construction
Slide #9
Types of Purchases
Personal Services are those services that require specialized skills, knowledge and resources for application of technical or scientific expertise, or the exercise of professional, artistic or management discretion or judgment.
Personal services are sometimes referred to as “Professional Services”.
Typically, the definition of Personal Services includes Architectural, Engineering and Land Surveying (A&E) and Related Services. However there are some exceptions to this in the ORS and OAR.
Slide #10
Types of Purchases
Architectural, Engineering and Land Surveying (A&E) are personal services that are required to be performed by an architect, engineer or land surveyor who is registered and holds a valid certificate in the practice of architecture, engineering, or land surveying in the state of Oregon.
ODOT often procures A&E services for the design and engineering of roadways and bridges.
Slide #11
Types of Purchases
Related Services means personal services, other than architectural, engineering and land surveying services, that are related to the planning, design, engineering or oversight of public improvement projects or components thereof.
Some examples of Related Services are:
• facilities planning services
• environmental impact studies
• wetland delineation studies
• Native American studies
• historical research services
• endangered species studies
• rare plant studies
• biological services
• archaeological services
• transportation and land-use planning
Slide #12
Procurement Authority vs. Expenditure Authority
Procurement Authority is the authorization to conduct procurements for goods and services.
When you have Procurement Authority, you can:
• Prepare solicitation documentation.
• Conduct solicitations up to your delegated threshold.
• Negotiate contracts, when appropriate.
• Prepare contract documentation.
• Manage and administer contracts.
• Sign and authorize procurement documents that obligate or expend public funds up to your Expenditure Authority limit.
Expenditure Authority is the authorization to approve the obligation or payment of public funds.
When you have Expenditure Authority, you can:
• Sign contract request forms authorizing solicitations up to your authorized threshold.
• Sign contract documents, including Purchase Orders, up to your authorized threshold.
• Approve payment of invoices up to your authorized threshold.
This tutorial focuses on Procurement Authority.
Slide #13
How ODOT’s Procurement Authority is Delegated
Procurement authority is delegated to state agencies through a hierarchal process:
State of Oregon legislators delegate procurement authority to the heads of state agencies through specific Oregon Revised Statutes (ORS).
Agencies with statutory procurement authority may delegate procurement authority to other agencies through specific Oregon Administrative Rules (OAR).
Agencies can further delegate procurement authority through Policies.
ORS
OAR
Policies
Slide #14
Delegations through Oregon Revised Statutes
Per the Oregon Revised Statutes, procurement authority for all procurements for state agencies is delegated to Department of Administrative Services (DAS). This gives DAS procurement responsibility over all state agencies.
However, ORS 279A.050 states specific exceptions to this for some state agencies, including but not limited to:
• Department of Transportation
• Secretary of State
• The State Treasurer
• Department of Human Services
• State Department of Fish and Wildlife
• State Parks and Recreation Department
• Oregon Department of Aviation
Individual procurements that do not meet the criteria under the ORS exceptions fall under DAS Procurement Authority.
DAS
Procurement Authority
Slide #15
Delegations through Oregon Revised Statutes
The exceptions that apply to ODOT are listed in ORS 279A.050(3) which states the Director of Transportation has all the authority to:
• Procure or supervise the procurement of all services and personal services to construct, acquire, plan, design, maintain and operate passenger terminal facilities and motor vehicle parking facilities in connection with any public transportation system in accordance with ORS 184.689 (5);
• Procure or supervise the procurement of all goods, services, public improvements and personal services relating to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation; and
• Establish standards for, prescribe forms for and conduct the prequalification of prospective bidders on public improvement contracts related to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation.
Many of ODOT’s procurements fall under ODOT’s Procurement Authority.
ODOT Procurement Authority
Slide #16
Delegations through Oregon Revised Statutes
ODOT has additional procurement-related authority delegated through other ORS.
Procurements authorized under these other statutes must comply with different requirements.
A couple examples of additional procurement authorities are:
• ORS 367.800 gives ODOT legal authority to use entrepreneurial approaches through the Oregon Innovative Partnerships Program to obtain funding and procure services.
• ORS 190 gives ODOT legal authority to enter into Intergovernmental Agreements with:
• A unit of local government or a state agency of this or another state
• The United States
• A United States governmental agency
• An American Indian tribe
• An agency of an American Indian tribe
• A nation or a public agency in any nation
This tutorial focuses on Procurement Authority originating through ORS 279A.
Slide #17
Oregon Revised Statutes
ORS 279A
General requirements that apply to all procurements
ORS 279B
Applies to procurement of goods and services, with the following exceptions:
Does not apply to personal services defined as architectural, engineering and land surveying (A&E) and related services.
Does not apply to procurements for public improvements.
ORS 279C
Applies to procurement of personal services defined as A&E and related services.
Applies to procurements for public improvements.
The majority of ODOT’s procurements must comply with applicable requirements under ORS 279A, 279B, and 279C. These statutes are also referred to as the “Public Contracting Code”.
Slide #18
Oregon Revised Statutes
Another statute worth mentioning is ORS 200.035 which requires ODOT to provide timely notice and information of all solicitations and contract awards that exceed $5,000 to the Advocate's Office for Minority, Women, and Emerging Small Business.
This requirement applies to all procurements that exceed $5,000, including procurements conducted by an ODOT Branch or Region using an informal three quote process.
There are three options for complying with ORS 200.035:
• Fax a completed notification form to the Advocate’s Office to provide timely notice and information about your solicitation. Allow a minimum of 10 business days for the Advocate’s Office to notify appropriate certified firms. Fax notification of contract award to the Advocate’s Office.
• Check OMWESB website for certified Minority, Women or Emerging Small Businesses that provide the products needed and fax notification form to the Advocate’s Office to report the findings of your search and a list of the certified vendors you contacted to request quotes. Fax notification of contract award to the Advocate’s Office.
• Post solicitation information on ORPIN providing enough time for providers to respond before selecting vendor and making purchase. Post award of contract on ORPIN.
Slide #19
More About DAS Procurement Authority
DAS established procurement rules under Oregon Administrative Rules (OAR) Chapter 125, commonly referred to as “DAS Rules”.
All procurements that are under DAS procurement authority must comply with applicable ORS and DAS Rules.
DAS Rules include:
• OAR 125-246: General Provisions for Public Contracting.
• OAR 125-247: Public Procurement of Supplies and Services.
• OAR 125-248; Consultant Selection: Architectural, Engineering, and Land Surveying Services and Related Services.
• OAR 125-249: General Provisions Related to Public Contracts for Construction Services.
ORS
OAR
OAR 125-248 and OAR 125-249 rarely apply to ODOT procurements because generally ODOT procures these services for transportation-related projects, therefore these procurements are conducted under ODOT’s procurement authority.
Slide #20
DAS Delegations through Oregon Administrative Rules
For procurements that are under DAS procurement authority:
DAS has delegated procurement authority to state agencies for purchases of Goods and Services not exceeding $150,000 and Public Improvements not exceeding $100,000 per OAR 125-246-0170(2)(c).
This means:
• ODOT conducts our own procurements up to those thresholds.
• Procurements that exceed $150,000 (or $100,000 for Public Improvements) are conducted by DAS on ODOT’s behalf.
• These procurements must comply with applicable ORS and DAS Rules.
Examples of ODOT procurements that are under DAS procurement authority:
• ODOT Rail - Bus Service at AMTRAK stations
• Pre-Employment Testing
• DMV Equipment Maintenance
• Office of Civil Rights - Disparity Study
• Public Transit- Buses and other vehicles
• Language interpretation of DMV materials
ORS
OAR
Slide #21
DAS Delegations through Policy
Procurement of any Architectural, Engineering, Land Surveying and Related Services that do not fall under ODOT’s Procurement Authority are under DAS Procurement Authority. However, this situation rarely occurs in ODOT procurements.
DAS has delegated procurement authority to state agencies for procurement of all Architectural, Engineering, Land Surveying (A&E) and Related Services per DAS Policy #107-009-010.
This means:
• ODOT conducts our own solicitations, contract awards, amendments and other contract administration for Architectural, Engineering, Land Surveying and Related Services even when the procurement falls under DAS procurement authority.
• The procurements that are under DAS procurement authority must comply with applicable ORS and DAS Rules.
ORS
OAR
Policies
This delegation applies to very few of ODOT’s procurements because the majority of A&E and Related Services that ODOT procures are related to transportation projects and therefore are under ODOT’s statutory procurement authority.
Slide #22
Procurement Authority for ODOT
As mentioned previously, ORS 279A.050(3) states the Director of Transportation has all authority to:
• Procure or supervise the procurement of all services and personal services to construct, acquire, plan, design, maintain and operate passenger terminal facilities and motor vehicle parking facilities in connection with any public transportation system in accordance with ORS 184.689 (5);
• Procure or supervise the procurement of all goods, services, public improvements and personal services relating to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation; and
• Establish standards for, prescribe forms for and conduct the prequalification of prospective bidders on public improvement contracts related to the operation, maintenance or construction of highways, bridges and other transportation facilities that are subject to the authority of the Department of Transportation.
This means: • ODOT conducts all procurements that fall within this criteria. • Procurements that do not meet this criteria are under DAS procurement authority.
ORS
Slide #23
ODOT Procurement Authority
ODOT established procurement rules under OAR Chapter 731, commonly referred to as “ODOT Rules”.
ODOT Rules apply to all procurements that fall under ODOT procurement authority.
ODOT Rules include:
• OAR 731-005 Public Contract Rules, Highway and Bridge Projects
• OAR 731-007 Public Improvement Contracts, Highway and Bridge Construction
• OAR 731-146 General Provisions Related to Public Contracting
• OAR 731-147 Public Procurement for Goods and Services, General Provisions
• OAR 731-148 Consultant Selection: Architectural, Engineering, Land Surveying and Related Services Contract
• OAR 731-149 General Provisions Related to Public Contracts for Construction Services
ORS
OAR
Slide #24
ODOT Procurement Authority
With some exceptions, ODOT has adopted procurement rules under OAR 137, commonly referred to as “DOJ Model Rules”.
This means:
• Procurements conducted under ODOT procurement authority must comply with applicable ORS and DOJ Model Rules (OAR 137), except as specified in ODOT Rules (OAR 731).
DOJ Model Rules include:
• OAR 137-046 General Provisions Related to Public Contracting
• OAR 137-047 Public Procurements for Goods or Services
• OAR 137-048 Consultant Selection: Architectural, Engineering, Land Surveying Services and Related Services Contracts
• OAR 137-049 General Provisions Related to Public Contracts for Construction Services
ORS
OAR
Slide #25
Delegation of Procurement Authority to ODOT Staff
Individual staff within ODOT are delegated authority to procure goods and services through an internal hierarchy of delegations. Following is a general outline of how ODOT delegates procurement authority:
• ODOT Policy
• ODOT Policy ORG 05 covers delegation of procurement authority on a high organizational level.
• Delegation Orders
• Delegations from Oregon Transportation Commission to ODOT Director, Deputy Directors, Chief of Staff, and Chief Financial Officer.
• Sub Delegation Orders
• Delegations from ODOT Director to ODOT DeputyDirectors, Chief Engineer, Region Managers, and others.
• Letters of Authority
• Delegations from ODOT managers to specific ODOT staff.
Policy
Delegation Orders
Sub Delegation Orders
Letters of Authority
Refer to the delegation document for the specific terms of the delegation.
Slide #26
Delegation of Procurement Authority within ODOT
ODOT Policy ORG 05 includes delegation of procurement authority:
• To the Chief Procurement Officer, Support Services, or designee, to process and execute all personal service contracts and highway construction projects including Architectural and Engineering, Land Surveying, and Related Services.
• To the Chief Procurement Officer, Support Services, or designee, to process and execute contracts for the purchase of goods, trade services, public works, and public improvement projects over $75,000 per ORS 279A.050(3).
• To each Deputy Director, Division Administrator, Branch Manager, Region Manager, and managers in executive service status to approve and sign contracts for the purchase of goods, trade services, public improvements, and public works projects up to $75,000.
ORG 05 applies to procurement authority whether delegated to ODOT through ORS 279A.050(3) or delegated from DAS through rule or policy.
Slide #27
Delegation of Procurement Authority within ODOT
According to the delegations in ORG 05:
The ODOT Procurement Office has authority to:
• Procure all personal service, including Architectural and Engineering, Land Surveying, and Related Services.
• Procure all highway construction services for public improvement projects.
• Procure goods, trade services, public works, and public improvement projects over $75,000.
ODOT Branches and Regions have authority to:
• Procure goods, trade services, public improvements, and public works projects up to $75,000.
Slide #28
Delegated Authority for ODOT Branches and Regions
This is important for ODOT staff in Branches and Regions, because it means:
Authorized staff in ODOT Branches or Regions can conduct:
• Small Procurements not exceeding $5,000 for goods, trade services, public improvements, and public works projects on behalf of the Branch or Region (with some exceptions).
• Intermediate Procurements up to $75,000 for goods, trade services, public improvements, and public works projects on behalf of the Branch or Region (with some exceptions).
Procurements must comply with applicable statutes and rules:
• ORS 279A, 279B, and 279C
• ORS 200.035 regarding notification to the Advocate’s Office for MWESB
• DAS Rules when procurement is under DAS Procurement Authority
• ODOT Rules and DOJ Model Rules when procurement is under ODOT Procurement Authority
For more information about how to conduct procurements, refer to the ODOT Procurement Office Training page for links to classes and online tutorials.
Slide #29
Delegated Authority for ODOT Branches and Regions
For some types of procurements, ODOT staff in Branches and Regions must:
Submit requests to ODOT’s Information Technology Procurement and Asset Management (ITPAM) section to procure information technology (IT) goods or services, such as computer hardware and software:
• ITPAM will conduct IT related procurements up to $75,000.
• ITPAM will submit IT related procurements that exceed $75,000 to the ODOT Procurement Office.
Submit requests to Cindy Lesmeister to procure A&E and Related Services directly related to Transportation & Growth Management (TGM) projects:
• Cindy will conduct TGM related procurements up to $150,000.
• Cindy will submit TGM related procurements that exceed $150,000 to the ODOT Procurement Office.
Submit requests to the ODOT Procurement Office for:
• All procurements for personal services, including but not limited to A&E and Related Services (except for TGM as noted above).
• All procurements for goods, trade services, public improvements, and public works projects that will exceed $75,000.
Slide #30
What OPO Will Do for Branches and Regions
The ODOT Procurement Office (OPO) will complete the following on Branch or Region’s behalf:
• Conduct all procurements for goods, trade services, public improvements, and public works projects that exceed $75,000.
• Except when procurement is under DAS Procurement Authority, OPO will:
• Conduct procurements that exceed $75,000 and not exceed $150,000.
• Submit procurements that exceed $150,000 to DAS.
• Conduct all procurements for Architectural, Engineering, Land Surveying (A&E) and Related Services.
• Conduct procurements for all non-A&E personal services.
• Except when procurement is under DAS Procurement Authority, OPO will:
• Conduct procurements up to $150,000.
• Submit procurements that exceed $150,000 to DAS.
Slide #31
Where to go for more information
Following are resources for or more information about procurement authority:
ODOT Procurement Office Intranet site
• Procurement Manual, Section G – Procurement Authority
• Procurement Authority/Delegations webpage
• ODOT Procurement Office Training webpage
• Fiscal and Procurement Responsibilities classroom training
ODOT Intranet site
• ODOT Policy and Procedure Manual
• ODOT Delegation Orders
• ODOT Subdelegation Orders
Slide #32
Questions?
If you have questions about procuring goods or services, contact your local OPO Procurement Specialist, or the primary contact for your area as listed below:
Region 1 - Bob McKibben 503.731.8462
Region 2 and Technical Services Branch - Doug Peetz 503.986.2980
Regions 3, 4 and 5 - Kevin Cassidy 541.963.1326
Other ODOT Sections - Tara Anderson 503.986.2921
Construction Contracts - Marie Wright 503.986.2737
If you have questions or comments related to this tutorial, please contact:
Mary Wandell
Procurement Training Coordinator
503.986.2617
Slide #33
Acknowledgements
I would like to thank the following people for their assistance in developing this tutorial:
Tara Anderson, ODOT Procurement Office
Jerry Bohleen, ODOT Procurement Office
Elizabeth Clark, ODOT Procurement Office
Pat Corey, ODOT Procurement Office
Bob McKibben, ODOT Procurement Office
Joanne Robinson, ODOT Procurement Office
Gordon Shadle, ODOT Procurement Office
Vera Wicks, ODOT Procurement Office
Marie Wright, ODOT Procurement Office
Jule Youngren, ODOT Procurement Office