Home   Contact Us   PSG Search   Site Map  


Technology Home Page Simplified Guide | Definitions | Important Facts
Guidelines for Specific Contracts | Product Ordering | Purchase Orders | Public Officers Law
Additional References | Feedback Form

Technology Contracts | IT Services Contracts | Telecom Contracts


Definitions

The following definitions apply to these guidelines

20% Rule
Some OGS Information Technology product contracts contain a 20% rule. This means that if an agency is buying product and also needs to buy ancillary services (e.g.: consulting and training) under the same contract for the purposes of customizing the product, or product roll-out and implementation, the agency may be able to purchase those services up to 20% of the value of the product and first year's maintenance. The 20% rule currently applies to microcomputer, printer, software, interactive voice response systems, videoconferencing systems and networking hardware and software contracts.

When using the 20% option, the awarding agency must first do an independent estimate for the services needed. In the event the estimate exceeds the 20% limit, the agency should either: undertake a competitive procurement, or justify a single/sole procurment.
Aggregated Buy
An Aggregated Buy is the process whereby an Authorized User determines the specific contractor and final pricing for the purchase of a product, service or system on behalf of more than one Authorized User. Participation in an Aggregated Buy eliminates the need for an Authorized User to conduct a mini-bid or a best and final negotiation.
Authorized User
An agency, or other entity authorized by the laws of the State of New York to participate in NYS centralized contracts (including but not limited to political subdivisions, public authorities, public benefit corporations and certain other entities set forth in law), or the State of New York acting on behalf of one or more Agencies and other entities, provided that each such Agency or other entity shall be solely responsible for liabilities or payments due as a result of participation.

This is the process required for an Authorized User when making significant purchases from brand bid or negotiated contracts, or, in some cases, any purchase from a limited multiple award contract. A brand bid or negotiated contract covers the full product line of a specific brand of product (i.e. Compaq microcomputers, Cisco networking hardware and software, Hewlett-Packard printers, Oracle software, Polycom video systems, etc.). In addition, whenever an agency is making a first time major purchase such as purchasing a new system, or installing software for the first time, all options available to the agency should be evaluated, including an agency competitive procurement or use of a centralized contract. When the decision is made to purchase from a centralized contract, an agency should solicit best and final offers, based on the agency's statement of needs.

Smaller purchases can be made directly from these contracts, but it is required that for certain minimum size orders and recommended for other smaller size orders, that Users either:

  • draft an informal statement of their needs and solicit best and final offers from competitive sources; or
  • if the user can document a single source procurement, negotiate with the contractor of choice to finalize a best value purchase.

The following awards include multiple contracts awarded by region. When making any purchase from these awards, it is required that the Authorized User solicit best and final offers from all contractors for the applicable region:

  • Electronic Key Systems and Telephone Equipment
  • Digital Centrex Equipment
  • Cable (installed)

Awards that include multiple contracts outline the required Procurement Procedures for soliciting best and final offers.

Direct Buy
The ability for an Authorized User to buy directly from an OGS contract using its standard form, format or purchase order, and which does not require a mini-bid, best and final negotiation, creation of a procurement record, or other required process, prior to making the buy.
Fast Track
This process is a streamlined mini-bid process under the IT Services backdrop contracts used to acquire Consulting Services for the various Categories of Expertise, as defined in the backdrop contracts, when there is a need to augment the State workforce for specified periods of time (six months, one year, up to eighteen months) based on Hourly rates.
Mini-Bid Process
A formal mini-bid is the process whereby an Authorized User develops a project definition outlining their specific requirement and solicits bids from qualified back-drop contractors to determine the best value solution. From development of the project specifications to the project award takes from six to ten weeks, a fraction of the time when compared with the traditional RFP procurement. Project awards shall be based on "Best Value. In the technology area, PBX Systems and IT Services make use of the mini-bid process and each one has several unique features found in its own guidelines describing the required formal mini-bid process. These guidelines are available on the OGS website or upon request from the Procurement Services Group.

Except where an agency can justify single or sole source procurement or where the requirement does not exceed $15,000, (or where a direct purchase is made form an NYS MBE, WBE, SBE for up to $50K) the formal mini-bid process is required for an Authorized User to utilize these two contracts.

Negotiated Contract
A contract established by agreements reached between a contracting entity and a vendor in lieu of issuing a bid document. While occasionally negotiation follows a competitive bid when only one bid is received, such resulting contracts are considered to be competitive procurements.
Procurement Record
The Procurement Record is the accumulated documentation, relating to a purchase, by an Authorized User. Documentation should include, but not necessarily be limited to justification for a single or sole source purchase, competitive methodology utilized (mini-bid vs. agency RFP) and reasonableness of price. Chapter 95 of the Laws of 2000 includes an amendment to Section 163 (7) of the State Finance Law stating, "Agencies are required to document evaluation criteria in the procurement record prior to the initial receipt of offers in a best value procurement." Section 163 (9) (g) was amended to add "The procurement record must include each amendment to a contract and the justification for the same."
Sole Source
"Sole source" means a procurement in which only one Contractor is capable of supplying the required product or service.
Single Source
"Single source" means a procurement in which although two or more Contractors (or participating resellers) can supply the required product or service, the Authorized User, upon written findings setting forth the material and substantial reasons therefore, may award the order to one Contractor (or participating reseller) over the other(s). The Authorized User shall document in the procurement record the circumstances leading to the selection of the vendor, including the alternatives considered, the rationale for selecting the specific vendor and the basis upon which it determined the cost was reasonable. Refer to the Procurement Council Guidelineslocated at the OGS website for further information on Single and Sole Source.