Diane Holley, Editor

Welcome to the July 1998 Issue
of the The Buyers Network!

Small Dollar Limits Increase for "No Bid" Purchases

Effective this month, the dollar limits for purchases requiring no bids increase to $1,000. Previously, the limit was established at $500.

This increase corresponds with the raise in the Purchasing Card Transaction limit, which was approved during the 1998 Legislative Session. Agency Purchasing Card Coordinators are currently being contacted in order to update each cardholder's application with a new monthly credit limit and the single per transaction dollar limit.

The new Agency Purchasing Manual (effective July 1, 1998) explains the new structure for agency delegated purchasing procedures:

Purchases $1,000 or less:              No bids required
                                                                   (competition always encouraged)

    Purchases $1,001 to $5,000:       Three verbal bids required

    Purchases $5,001 to $10,000:   Three written bids required

For additional information on agency delegated purchasing procedures, please refer to the new Agency Purchasing Manual.

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Conference Input Necessary
to Make Positive Changes

A big ‘thank you’ goes out to the participants of the 1998 Spring Purchasing Conference for returning the conference evaluation sheets. Improvement can only be realized through the cooperation and active participation of those which we serve.

"The Purchasing Division has modified the structure of our training conferences based on evaluation results from previous years," according to Purchasing Director Dave Tincher.

The evaluation results will be shared with our readers in the next issue of The Buyers Network.

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Request for Proposal Process Modified to
Enhance Efficiency and Timeliness

A major change to the Request for Proposal (RFP) process used by the Purchasing Division has been made to enhance this purchasing method used for larger, more complex purchases.

In the past, a two-step RFP process was used by the Purchasing Division which required a separate bid opening for cost and technical proposals. Effective July 1, 1998, the Purchasing Division will begin using a one-step process in hopes that the time required for agencies to receive goods and services will improved using using this method.

Some of the highlights of the new RFP process include:

1. Price or cost proposals will be opened and evaluated along with technical proposals;

2. All RFP’s shall follow the standard format;

3. RFP’s shall have an estimated value of at least $250,000;

4. The Purchasing Division shall approve all committee members    prior to the evaluation; and,

5. All committee members shall be trained prior to the evaluation.

In conjunction with the changes to the Request for Proposal process, the Purchasing Division is in the process of streamlining the vendor protest procedures through Legislative Rulemaking. More information on this action will be reported in an upcoming issue of The Buyers Network.

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Director's Comments:
                         The Value of Good Service

At times, it may appear that the focus of the procurement process is price and product, but let's take a look at the importance of service.

When the level of quality has been established and the price is determined, the next step to consider is the service necessary to meet your needs. Good service depends upon how well the vendor respond to your needs and how responsible their actions are in fulfilling those needs.

All your buying efforts will be in vain if the service factor is not taken in consideration. Your needs must be obtainable at the proper time and in the proper method.

Good service will be provided by a vendor who is willing and able to deliver your requirements when needed. Essential to good service is proper geographical location of the vendor, capable personnel, technical expertise, integrity, proper facilities, warranties, ability to handle unforeseen circumstances and financial stability. On your next purchase, mirror these factors against the price and product to see how it measures up.

Where do you get this information? Good sources are knowledgeable salespersons, advertising, catalogs, directories, chambers of commerce, business associates, other customers, trade shows and Better Business Bureaus. The important thing, however, is not to assume that you will automatically get good service. Check your sources. Basically, good vendor response and responsibility is an attitude.

Legitimate problems and circumstances do arise periodically. By the same token, making unreasonable demands or creating impossible problems will surely make your business not worthwhile; sellers will then soon become disenchanted with you as a customer. Be fair and reasonable.

Business people are trying to make a profit. To encourage competition, seek out three or more dependable sources, if possible. Good vendors expect to earn your business.

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Furniture Contracts Consolidate to Avoid
Duplication of Items Offered

Currently, the Purchasing Division maintains three statewide contracts which offers different types of furniture. These contracts have been through an extensive review focusing on usage, availability and need. The outcome of this review is a consolidation of these contracts.

Metal Office Furniture (MOF), Computer Furniture (COMFURN), and System (Modular) Furniture (SYSFURN) will be combined due to a similarity in models and styles of furniture.

In evaluating these contracts, an overlapping of items was discovered. It was recommended at that time to create one statewide contract that would encompass all kinds of furniture to meet state agencies’ needs.

Specifications are currently being finalized for this universal furniture contract and a bid opening is expected soon.

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Agency Purchasing Manual
                        Have You Ordered Your Copy Yet?

Since the Agency Purchasing Manual was distributed at the 1998 Spring Purchasing Conference, everyone wants to know how and where

they can get their hands on a copy. Many people have been contacting the Central Stockroom with their requests, however, they no longer are stocking the copies.

To get a copy of the Agency Purchasing Manual, contact Purchasing’s Vickie Goodall at (304) 558-7839.

A charge of $10 per copy will be invoiced to your agency, which covers printing and mailing costs.

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Capitol Parking Addressed
        Proposals Open July 2 for the Capitol Parking Garage

Parking has always been an issue at the State Capitol for state employees, visitors, vendors and lobbyists. Unfortunately, there are more requests than spaces. The bid opening for proposals submitted for the new parking garage at the Capitol Complex is scheduled for July 2.

A bill was approved during the 1998 Legislative Session to construct a parking garage to help alleviate the parking problem at the Capitol Complex. A Request for Proposal (RFP) was written and offered to potential vendors on May 29, 1998.

The proposed site recommended by the State Building Commission is in the back portion of the parking area behind Building 3 (Division of Motor Vehicles parking lot) near Greenbrier Street. The garage will be designed to accommodate for 700 vehicles.

The proposal requires that the vendors submitting bids be responsible for all of the design, architectural, engineering services and complete construction of the building. A mandatory prebid conference was held on June 11. All vendors interested in bidding on this project were required to attend in order for their proposals to be considered. Six potential bidders attended this conference.

According to the RFP, the parking building must be completed within six to twelve months on the designated state-owned property. The buildings will include elevators, adequate electronic security devices and be handicap accessible. Entrance to the parking garage will be engineered for electronic card access; therefore, a parking attendant would not be necessary.

Cabinet Secretary Joseph Markus will approve the designation of spaces to state employees, vendors, lobbyists and visitors. He has indicated that at least one third of the spaces will be assigned to employees most likely at the current $15 per month rate which other state employees pay for designated parking at the Capitol Complex.

Vendors and lobbyists who are assigned a permanent parking space in this garage will pay a higher fee. The charge for visitors has not been determined at this time. An update of this project will be reported in an future issue of The Buyers Network.

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                        MONEYWise...Tips for the Thrifty

Is your pantry stacked with sale items that tie up your grocery dollars for months to come? Using strategies, such as "three bags of chips for $3" and "limit 12 cans of soup per person," stores significantly increase the amount consumers purchase, says a study by the University of Illinois. Even without discounts, the "three-for" promotions increased sales on impulse items like candy and beverages.

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WV Surplus Property Manager Serves on
a Review Team to Assist Virginia's Operation

It’s tough being the new kid on the block. Just ask Chris Steele, the new surplus property administrator for the State of Virginia. However, Steele determined that the best way to learn how this program worked was to ask those who have been successful in managing similar programs.

Ken Frye, manager of the West Virginia State Agency for Surplus Property, recently joined the surplus property managers from Pennsylvania (Scott Pepperman) and North Carolina (Benny Troutman) and an area utilization officer from the U.S. General Services Administration (George Stanley), which oversees the Federal Surplus Property Program, in Virginia. Their goal was to assist Steele by conducting a review of the Virginia Surplus Property operation and offering suggestions for improvement.

"Being one of three state-level managers asked to be part of this review team was very flattering," Frye said. "There are few directors of surplus property agencies in the United States that have extensive experience in operating these programs. This quality is valuable to new surplus property managers. Helping these new directors makes the overall surplus property program stronger."

GSA conducts periodic reviews of the state’s surplus property programs, focusing on eligibility, compliance and property distributions. The West Virginia State Agency for Surplus Property has consistently received high marks on these reviews. At the last review, GSA representatives indicated that some states may not be reviewed as often if they show good management and few reported problems. Furthermore, he stated that the West Virginia operation would be a prime candidate for this reprieve.

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Purchasing Division Participates in
Governor's Summer Intern

The Purchasing Division recently welcomed two new employees for the summer. David Elkins and Jimmy Morris were hired to assist with the division’s heavy workload. Both are 1998 participants in the Governor’s Internship Program, a program designed to provide West Virginia’s finest college students with outstanding learning experiences.

"Our goal is to provide students the opportunity to see what West Virginia has to offer," according to Gara Hoke, the program’s coordinator. The program hopes to encourage talented students to return or to stay in the state after graduation. "Agencies get top quality students and the students get real experience and a better understanding of the benefits of West Virginia," she said.

The program was created in 1989 and has grown tremendously. Nearly 1,000 students have participated in the program since its inception. This year over 300 applications were received with 185 students being accepted into the program. "So far 80 candidates have been placed in jobs and many are pending," said Hoke. Students accepted into the program are not guaranteed jobs, only the chance at an interview.

David Elkins, who is working on Capitol parking, reflects upon his internship experience thus far. "It's interesting to learn about the organization of the parking around the Capitol and the process of providing parking for the entire complex," he said. "I think this program a great opportunity for college students to learn about state government."

Not only are the interns reaping the benefits of the program, but the agencies involved are getting quality workers for needed assistance. "I am getting good results. He's getting things done that otherwise would be difficult to complete in a timely manner," according to Janice Boggs, Elkins' supervisor. David is a student majoring in engineering at West Virginia University.

The other intern at the Purchasing Division is Jimmy Morris, a student majoring in neuroscience at Oberlin College in Ohio. He is working with Diane Holley to assist with public information and the division's website. "I’ve never had such a great chance to work in these areas before," said Morris. "Now choosing a career will be that much easier since I will have on-the-job experience in journalism and public information."

This is the first year which the Purchasing Division has participated in the Governor's Internship Program; however, due to the success of this experience, the participation will most likely continue in years to come.

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Matt Hackworth
New Face at Purchasing

The Purchasing Division is pleased to introduce Matt Hackworth, who was recently hired as our mail runner. Matt is a valuable asset to the Purchasing Division. He previously worked for the Division of Highways.

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TEAM Workshop Offers Information
in a Fun, Relaxed Environment

Our conference presenters made an extra effort to add a little pizzazz to the learning process this year. In fact, prior to the conference, Division of Personnel instructor Mark Isabella conducted a workshop for our presenters, offering ideas on how to enhance their sessions.

As for the two TEAM workshop sessions, Purchasing's Dan Miller and IS&C's Barbara Haddad gave the participants a "then and now" picture (literally) of both the TEAM system and of Dan and Barbara (they looked really cute in the 80's).

Participants were also invited to count M&M’s and answer the off-the-wall survey. As promised, the responses to the survey have been tallied and are printed below:

This is my first purchasing conference.

Yes: 40% (29) No: 60% (44)

How often do you use the Internet?

How often do you use WVFIMS?

How often do you use TEAM?

How often do you use Internet email?

My agency has a homepage.

Barry Manilow is my favorite singer.
(Now, somebody had a sense of humor on this one)

Special thanks to Jimmy Morris, our Communications Intern, for com-piling the data (aka, dots...For those who did not attend this class, colored dots were used during this off-the-wall survey).

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QUESTION OF THE MONTH

After bidding and making an award on a particular request for quotation or proposal, at what point can a contractor actually begin working on a construction project?

It is extremely important to understand that the encumbrance date is the earliest date that work may commence on a construction contract. No work is permitted to begin until this time. When an architect/engineering firm is employed on a project, construction normally does not commence until such time as the firm gives the contractor 'notice to proceed.'

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When determining the workshop topics for this year's spring conference, the usual subjects were mentioned: vendor registration, requests for proposals, the Purchasing Card Program and others. Although all of our workshops received positive feedback, there was one workshop which stood out primarily due to its uniqueness: Purchasing Jeopardy!

Purchasing Director Dave Tincher served as host, with Dan Miller as judge and technical expert, and Diane Holley as score keeper. Our contestants were agency procurement officers and definitely deserve to be recognized for their good sportsmanship: Susie Teel, Jo Miller, Leonard Kelley (DHHR); Angie Moorman, Tony Sylvester, Freda Taylor (DOH); Pat Randolph, Evelyn Harper, Frank Hayden (Adjutant General's Office); Beverly Carte, Diana Joseph, Robin Strickland, Ed Henderson (DNR); Chip Myers (PEIA); Mary Blashford (School Building Authority); Edi Barker (BEP); Monica Cochran (Fairmont State College); and Lendin Conway (DEP).

Let's share some comments that our participants had about this workshop: "Purchasing Jeopardy was a very good learning tool for new employees"..."This workshop was a fun way to learn and review"..."The best newest addition was Purchasing Jeopardy"..."I hope this is done every year."

Check out the Purchasing Jeopardy game on the state's Intranet at http:intranet.state.wv.us/admin/purchase.

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Information and dates (as June 15, 1998) included in this Current Statewide Contract Update are subject to change. If you need additional information, please contact the appropriate state buyer.

Are you unsure of certain purchasing procedures? ... Do you need to know what printing services Consolidated Publishing Facility provides? ... Do you have a question regarding travel requests? ... Would you want to know what surplus property is available? ... If you need information concerning any function within the Purchasing Division, complete the form below: