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Mandatory Contracts and Internal Sources

Prior to seeking competitive bids, state agencies must first check mandatory contracts or internal sources as part of the acquisition planning process

The mandatory contracts include statewide contracts or agency open-end contract existing for the commodity or service

The internal sources include the West Virginia State Agency for Surplus Property, Correctional Industries, and the West Virginia Association of Rehabilitation Facilities (State Use Program)

If the product/service is available from one of these sources but that source is not able to supply the product/service, a waiver must be obtained and retained with the purchase order file for each transaction to which the waiver applies.


Mandatory Contracts

  • Statewide Contracts: West Virginia Code §5A-3-5, authorizes the Purchasing Director to promulgate and adopt standard specifications based on scientific and technical data for appropriate commodities and services, which establishes the quality to which such commodities and services to be purchased and services to be contracted for by the state must conform. These standard specifications are used to establish statewide contracts for commodities that are needed on a repetitive basis and are established for the benefit of state spending units. No agency may be exempt from using statewide contracts without prior written approval from the Purchasing Director. When such prior written approval is obtained, it must be retained with the purchase order file for each transaction to which the approval applies. Use of the State Purchasing Card shall not to be used as a payment method to circumvent purchases from established contracts.

To view all statewide contracts, visit:  

http://www.state.wv.us/admin/purchase/swc/default.html

  • Agency Open-End Contracts (Over $25,000): Upon request by the state agency, the Purchasing Division establishes agency open-end contracts through competitive bid for commodities and services needed on a repetitive basis. Once established, the agency is required to use this contract. Piggybacking on agency open-end contracts may be permitted upon written approval of the Purchasing Director.

For Agency Delegated Contracts ($25,000 or less), the agency is required to use its established contracts through the life of the contract. Piggybacking on agency delegated open-end contracts is discouraged as it may exceed $25,000.

  • [OPTIONAL] Piggyback Contracts: Although piggyback contracts are optional, it is advisable to check to see if any approved piggyback contract may meet your needs prior to soliciting competitive bids.

For a list of approved piggyback contracts, visit:

http://www.state.wv.us/admin/purchase/piggyback/default.html


Internal Sources

  • West Virginia State Agency for Surplus Property: The West Virginia State Agency for Surplus Property operates a state and federal surplus property program.

The State Property Program consists of property no longer needed within state government agencies which is made available to eligible public and nonprofit organizations. The property may also be made available to the general public through competitive public auctions and sealed bids.

In addition to the state Property Program, a federal Property Program is administered. The program serves all eligible organizations and acts as a clearinghouse by offering new and used equipment at reduced costs for acquisition.

For more information, visit:

www.state.wv.us/admin/purchase/surplus

  • Commodities and Services Provided by Correctional Industries: In accordance with West Virginia Code §25-7-1, all offices, departments, institutions and agencies of the state which are supported in whole or in part by this state shall purchase, and all political subdivisions of this state may purchase, from the state commissioner of public institutions all articles or products required by such offices, departments, institutions, agencies or political subdivisions of this state, produced or manufactured by the state commissioner of public institutions by convict labor, as provided for by this article, and no such article or product shall be purchased by any such office, department, institution or agency, from any other source, unless excepted from the provisions of this section, as hereinafter provided.

These commodities and services must meet certain quality and price standards which are comparable to open-market sources. Use of Correctional Industries does not require bidding.

Correctional Industries offer a wide variety of products and services to state agencies. In addition to being the preferred contractor for wooden furniture, it also provides other types of furniture, Braille, welding, engraved signs, mattresses, custom signs, tags, janitorial supplies, linens, seating, detergents, inmate clothing, upholstery and decals. Correctional Industries is the sole source supplier for all printing and quick copy services.

For specific information on available commodities and services, contact Correctional Industries at (304) 558-6054 or visit:

www.wvcorrectionalindustries.com

  • Commodities and Services Provided by Sheltered Workshops: All state agencies are required by West Virginia Code §5A-3-10, to purchase commodities and services from sheltered workshops whenever such commodities and services are available and meet certain quality and price standards which are comparable to open-market sources. Use of sheltered workshops does not require bidding for commodities and services included in the WVARF statewide contract. Commodities and services not included in the WVARF statewide contract require competitive bidding.

If the West Virginia Association of Rehabilitation Facilities is unable to provide the requested commodities and services, a written notice will be provided by WVARF advising the agency that their request is unable to be met at that time and competition may be sought in accordance with the state purchasing procedures.

For specific information on the sheltered workshops or the available commodities and services, contact WVARF at (304) 766-4894, or visit:

www.wvarf.org/stateuse/

To view the WVARF contract, visit: http://www.state.wv.us/admin/purchase/swc/WVARF.htm.


To learn more about mandatory contracts and internal sources, visit Section 4 (4.6) of the Purchasing Division's Procedures Handbook at :

http://www.state.wv.us/admin/purchase/handbook/default.html



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