How To Do Business With Government

• Structured means of acquiring what is needed to operate government agency
• Directed processes and procedures must be followed
• Open and highly visible process - transparent
• Subject to review by multiple groups

• Fairness to stakeholders
• Vendors, end users, taxpayers

• Consistency
• Predictability
• Repeatability
• Transparency
• Use of an understandable process
• Provision for protests

General Structure of the Law:

• Federal Constitution
• State Constitution
• State laws - statutes, procurement code, NMAC, New Mexico Governmental Conduct Act
• Local laws - county ordinances, school board policies

State Procurement Code:

• State law - statute and regulations
• Legislature creates/changes
• Applies to Los Lunas School - local public body
• Applies to cities, counties, villages

How Do Federal Law, State Codes, and Local Policies Work Together?

• Federal laws has the highest precedence
• State codes and local policies cannot supercede federal law
• All three must be considered together
• All three are law!

• To make public procurement more effective
• Provide for fair and equal treatment
• To get the best value when spending public funds
• To provide safeguards to maintain a system of quality and integrity

• Just about everyone in government
• Exceptions:
  -Towns with home rule - like Albuquerque and Las Cruces
  -New Mexico State University - State Land Grant Institution

• Every purchase not specifically excluded through an exemption
• Tangible goods
• Services
  -Professional services
  -General services
• Construction
• Does not cover real property - real estate

• Fills in any gaps in state code
• School Board creates/changes - may not supercede state code
• Other local governments have similar policies/ordinances
• Get copies of the policies/ordinances where you want to do business
• Knowledge is power

• You can touch, feel, hold
• Generally movable
• "Bid" process generally applies
• Includes expensive tracked capital expenditures (over $5,000) as well as expendable supplies

• Defined by law
• Rule of thumb: college degree and license
• Doctors, lawyers, engineers, architects
• "Request For Proposals" process required by law above $60,000
• Scope of work/statement of work (SOW)
• Characteristics: each job is very unique - requiring highly trained, specialized judgement-engineer designing an airplane or doctor trying to figure out why your nose is blue
• It is not the same old thing over and over

• Any service that is not professional
• Often repetitive
• "Bid" process generally applies
• Clearly defined service requirement
• Generally no separate deliverables or end product
• Must establish performance standards
• May require more oversight than professional services

• Specialized procurement - building, altering, installing, demolishing, including earthwork, drilling wells
• RFP process generally applies
• Significant additional legal requirements apply
• Frequently high dollar
• Capital expense - land or building improvement

• A need is identified
• The need is evaluated and documented
• Request is issued
• Purchasing Department handles the requisition
  -Identifies best or required procurement method. User may suggest or require a specific source (ex: quotes, RFP, IFB)
  -Issues a PO or initiates a procurement
• Vendor receives PO
  -Vendor then begins providing the needed items or services

Los Lunas Schools and State Thresholds

Goods/Non-Professional Services:

• Over $60,000 requires an IFB or RFP Process (requires Board Approval)
• $20,000-$60,000 requires 3 written quotes or price agreement
• Under $20,000 is discretionary (best obtainable price)

Professional Services:

• Over $60,000 requires an RFP only (requires Board Approval)
• Under $60,000 is discretionary (best negotiated value)

Federal Funds

Goods/Non-Professional Services:

• Over $60,000 requires IFB/RFP Process (requires Board Approval)
• $10,000-$60,000 requires three (3) written quotes (from vendor) or price agreement
• Under $10,000 is discretionary (best negotiated value)

Professional Services:

• Over $60,000 requires an RFP only (requires Board Approval)
• $10,000-$60,000 requires three (3) written quotes (from vendor) or price agreement
• Under $10,000 is discretionary (best negotiated value)

($10,000 and below for Federal Funds)

• Goods and non-professional services
• Purchasing Department determines "best obtainable price"
• Direct purchase order
• Some buyer discretion OK
• Good opportunity for initial "foot in the door"
• Generally unique, one-time purchases
• Cannot artificially divide
• For federal funds - must be registered to sam.gov

How NOT To Write An Email:

Heather,

Thank you fot giving me your email address. I wanted to get in tyouch with you because yoiur webistre said that you were the main lady inc harge over there that dreals with PPE supplies i.er. face masks and disinfectant and those things!

Well I am including you in my loop of exclusive offers only to first responders and educators and thier support staff. 

You may want to further check out ___________webiste. There is a full list of everything we support and if its not there, please belive we can source it! 

I am confrident that I can ebe of great usefulnes to your department within the district!

Please give me a call back or email me. I would like to hear from you!

Ok well, best wishes. 

($10,000-$60,000 for Federal Funds)

• Good and Non-Professional Services
• "Informal" procurement
• Request for quotation - RFQ
• Users/Buyers have some discretion
• For federal funds - must be registered to sam.gov

Quote #1:

Garcia Roof Repair

Fix Leak

Site Visit Performed

$12,275.85

Quote #2:

Belen Roof Repair

Fix Leak

Photos sent to vendor

$14,700.00

Quote #3:

Valdez Roofing and Repair

Fix Leak

Problem described on the phone

$19,000.00

Over $60,000 Formal Procurement

• Goods, services, professional services
• "Formal" process
• 10 Day advertising period - minimum
• Sealed bids or proposals, strict deadlines

Invitation For Bids-IFB:

• Simplest, fastest approach (most common)

• Lowest price

• Seek a specific end result (only 1 answer)

• Meet all specs? (low cost wins!)

• No negotiations allowed

• Public bid opening/reading

Request For Proposals-RFP:

• Less simple (longer approach)
• Best value
• Seek a specific end result (multiple answers possible)
• Multiple scorable factors (cost is only 1 factor)
• Highest total score (best value wins)
• Negotiations are allowed
• More "in depth" response than a bid (explain things, describe proposed solution)
• No public opening - secure process - details not public until after award

• Obtain complete bid package
• Read it carefully, note all "must" and "shall" type language, note all instructions
• Complete the required forms, paying particular attention to unit prices, quantities, price extensions, etc.
• Be sure you include any required forms, certifications, license copies, bonds, etc.
• Go back and re-read the instructions (make sure you are complying with every requirement)
• Signature is critical (disqualified if missing)
• Make sure bid is received BEFORE the deadline (you are fully responsible, mailing by deadline is NOT acceptable)
• Attend pre-bid conference (ask written questions if needed/clarify)
• Keep copies of everything

• Received on time? (LATE BIDS are not accepted)

• Publicly opened and read (contents become public at that time)

• Bids are reviewed for compliance with all requirements (any non-compliance causes disqualification)

• Costs are compared to determine who the least expensive bidder is (while there may be an apparent winner, no winner is declared at that time)

• Procurement manager reviews bids and either awards or recommends award

• If needed, approving authority reviews, approves and awards

• Obtain the complete RFP package

• Read it carefully, note all “must” and “shall” type language, note all instructions-use highlighter

• Write the required narrative and other textual material that you must provide. Complete all required forms

• Carefully assemble your proposal

• Go back and re-read the instructions to make sure you are complying with every requirement

• Insure you are providing the proper number of proposal copies

• Signature is critical-disqualification if missing!

• Make sure your proposal is received before the deadline. You are fully responsible! Mailing by the deadline is not acceptable!

• Attend pre-proposal conference-ask written questions if needed/clarify

• Keep copies of everything!

• Received on time? Late proposals are not accepted

• Proposal contents are confidential until after an award is made. They are opened privately and distributed to an evaluation committee to read

• The evaluation committee meets to further discuss and score each separate section of the proposals

• A score sheet is prepared that indicates the scoring for each proposal

• Technical proposal is scored first and then sealed cost proposal is opened

• An evaluation committee report is prepared that explains the findings and scoring along with a recommendation

• The procurement manager reviews the documentation and proceeds with the recommendation from the evaluation committee

• If needed, approving authority reviews, approves and awards

• Negotiations may take place between recommendation for award and board approval

• Purchasing Department-the chief procurement officer of the agency makes the determination

• Based on most cost effective approach to get what user needs

• Considers:
  -Cost of the procurement
  -Need/value of negotiation (RFP only)
  -Value to user department and the taxpayer if seeking the best and final offers (RFP only)

• Formal vendor registration programs
  -Vendor registry
• Los Lunas Schools website
• Newspaper
• Buyer, end-user contracts
• Word of mouth

• Less cost effective result for user and taxpayer

• Must be justified and approved

• No other dealers or distributors anywhere

• Often applicable to software and proprietary items

• Negotiation required by law

• Must be publicly posted for 30 days and may be protested

• Immediate threat to people, property or function of government
• Could not have been reasonably foreseen
• Essentially suspends purchasing rules (determination is made by CPO)
• Can only be used to solve the immediate problem
• Must maximize competition given the circumstances

Example: Tractor

• Minimum of 195 HP
• Minimum of 145" wheelbase
• Must have automatic transmission
• Must have rollover protection structure
• Must have enclosed operator cab
• Must have implement towing hitch
• Must have a power take off (PTO)
• Must be painted green

NM Procurement Code 13-1-164

(Does the tractor really need to be painted green?)

• "All specifications shall be drafted so as to ensure maximum practicable competition and fulfill the requirements of state agencies and local public bodies"
• You should challenge specifications you feel are validly unfair to all or are unfairly biased to a specific company or product ASAP!
• It's very important to attend a pre-bid or pre-proposal conference even if it is not mandatory

• NMSA 13-1-21 and 13-1-22
• Resident business or Native American resident business preference
  -Certificate required form taxation and revenue department
  -Previous certificates issued by state purchasing no longer valid
  -8% preference
• Resident veteran business or Native American resident veterans business preference
  -Certificate required from taxation and revenue
  -10% preference

• Your signed bid or proposal constitutes a valid and legal "offer"
• Once the government entity signs to signify "acceptance" of a bid or proposal, a contract is formed
• For proposals, if negotiations take place, the vendor may need to re-sign the final contract

• Yes!
• Bids become public at the public bid opening, but it may make more sense to review everything after the bids have been tabulated and examined for compliance
• Proposals become public after the contact is awarded along with the rest of the procurement file
• Agency is only obligated to make the materials available
• IPRA request

• Vendors have 15 calendar days after the materials become public to protest
• Only bidders/offerors can protest
• Protests must be in writing to the Chief Procurement Officer called out in the IFB or RFP documents
• Must specify in detail what is being protested
• Must specify what action, or end result, is being questioned
• Must be received within the 15 day protest period

• Procurement file is maintained for at least the life of the contract
• Non-winning bids and proposals are retained and may be reviewed even after the protest period ends

• Procurement code does not cover real property/real estate
• Counties, cities, villages may have vendor registration programs - ASK!
• There are exemptions to the procurement code (Are you one of them? 13-1-98)
• Felony level charges for certain procurement code violations

• Contact the buyer for the procurement you are interested in
• Contact fellow vendors with experience in government contracting
• Los Lunas Schools website
• State purchasing website or call (505) 827-0472
• Cooperative Educational Services or call email or call Lisa Romo at (505) 344-5470 ext. 116

• Go to the Los Lunas Schools website, click on the blue "Vendor Registration" button to sing up on vendor registry to be notified of any solicitations
• To become a vendor, you must submit a vendor registration form and a W-9

Michelle Romero, CPO, NMCPPP, CPS, CAPE
Los Lunas Schools Director of Purchasing
(505) 866-8246

Heather Rindels, CPPB, NIGP-CPP, CPO, NMCPPP, CAPE
Los Lunas Schools Buyer
(505) 866-8259