SB/DVBE

Whenever possible, SCDD must do business with a Small Business (SB) or Disabled Veteran’s Business Enterprise (DVBE). SBs and DVBEs are certified through the Department of General services. Use the DGS Cal eProcure Certifications database to search for SB/DVBE vendors.

Statewide Contracts

The Department of General Services administers statewide contracts for use by state departments and California local governments. Statewide contracts are a type of Leveraged Procurement Agreement (LPA). Most are mandatory for state departments.

Statewide contracts are established to reduce the need for individual departments to conduct repetitive bids for like products. These contracts are developed based on the business needs of state of California departments through a competitive bidding process. Statewide contracts do not have dollar limits for their use, except as otherwise noted in the contract user instructions. Use the Cal eProcure Leveraged Procurement Agreement to search for Statewide Contracts.

CalPIA

Pursuant to Penal Code, Section 2807, state departments must first consider if CALPIA can fulfill the state department’s need prior to purchasing goods and services from private sector suppliers (including suppliers that have a Leveraged Procurement Agreement with the DGS/PD).

For more information about procedure and the products and services available through CALPIA, see the California Prison Industry Authority (CalPIA) Purchasing Policy and Procedure in the State Contracting Manual (SCM).

Below you will find a brief overview of commonly used procurement methods. Procurement methods are covered more thoroughly in the Department of General Services Basic Acquisition Certificate (BAC) Courses

Competitive

Competition is one of the basic tenets in state procurement and contracting. The procurement may be informal or formal, and the selected competition method may be a phone call (only for under $100.00) or a written solicitation document (distributed by fax, Email or regular mail). Unless otherwise provided by law, procurement activities must be conducted in an open and fair environment that promotes competition among prospective suppliers.

During the development and management of competitive solicitation and throughout the evaluation and award process, all information must remain confidential. Documentation must be maintained in a secured area. The procurement file must contain sufficient documentation to support the technique used to determine the pricing received is fair and reasonable.

Fair and Reasonable Pricing

Competition is always the preferred method of acquisition. However, departments may acquire Non-It goods and IT goods & services valued less than $5,000.00 if “Fair and Reasonable” pricing can be established without two or more quotes. Before the CDSS Purchasing Unit elects to accept only two quotes for orders under $5,000.00, (including shipping/freight, but not including tax), one of the techniques below must be circled, justification provided, signed & dated, and attached to the requisition file to show support of the Fair & Reasonable purchase. Techniques for Determining “Fair & Reasonable”:

• Price Comparison: A purchasing analyst has obtained and documented quotes or offers within the last 12-to-18-month period from other responsible suppliers, which provides evidence that a price obtained is deemed fair and reasonable. (NOTE: The requestor will be required to either reference the purchase order for the reference price or provide copy of quote from vendor).
• Catalog or Market Price: The price offered is supported by an established and verifiable catalog or market pricing media issued by a responsible supplier and/or through an established reputable forum. In addition, the pricing structure provided is one that a prudent purchasing analyst would accept as a reasonable representation of existing market value. (NOTE: The requestor will have to provide proof of the catalog or market price).
• Controller Pricing: The price offered is set by law or regulation; competitively bid master or statewide contracts, etc. (NOTE: The requestor will be required to provide proof on pricing).
• Historical Pricing: A purchasing analyst is able to demonstrate that other transactions occurring in the past (within an 18-month period) exist and that shows historical prices for similar acquisitions have yielded no material change in cost. (NOTE: The requestor will have to provide the prior purchase order number or copy of the prior purchase order).
• Cost/Benefit Analysis: A purchasing analyst can demonstrate that their level of experience in the procurement field provides a sufficient knowledge base, which clearly indicates that the acquisition cost is so low. The cost to the state of verifying the pricing fairness would most likely be more than any potential benefit that could be reasonably gained from searching the marketplace for lower price comparable acquisitions.

When evaluating fair and reasonable pricing using price comparisons, catalog/market price and/or historical pricing, buyers must base the comparisons on identical situations or those with small variations which do not affect pricing.

(Source: CDSS Purchasing Policies and Procedures Handbook)

In order to complete purchasing documentation, you will need to become familiar with SCDD’s accounting codes. These codes ensure that purchases are made with funds from the correct funding streams. You will need to enter your project/Regional Office’s account coding in Fi$CAL and on your Requisition Form (AA18). Coding consists of:

• Service Location/Unit Overhead Code (PCA) – Five-digit number that is specific to the funding source (540##)
• Reporting Structure/Index Code – Four-digit number that indicates the project or Regional Office (11##)
• Reporting Unit Code – Six-digit number that further identifies your unit (792-###)

Your manager will provide you with the account coding for your office/project. If you need further assistance with accounting codes, please contact SCDD’s Budget Officer or the Manager of Business Operations at Headquarters.

In order to enter a Requisition for purchasing goods, staff will need access to Fi$Cal. Please reach out to the Chief Deputy Director to request access.

The California Department of Social Services (CDSS) is authorized to purchase for SCDD through the Requisition process. Council staff is responsible for submitting requisitions in Fi$Cal (with a completed purchasing packet attached), tracking stock received reports, approving invoices, and forwarding all documentation to accounting for payment.

Prior to submitting a Requisition in Fi$cal, your purchasing packet must be completed and approved by your manager. This packet documents your procurement method and will contain the following documents when using the competitive procurement method:

• AA18 (Requisition Form)
• GEN 1387 Request for Quote (RFQ) Form
• Quote from 1^st Vendor
• Signed Vendor Page from RFQ (Page 3)
• Quote from 2^nd Vendor
• Signed Vendor Page from RFQ (Page 3)
• Vendor’s STD 204 Payee Data Record (winning vendor only)

Splitting Orders is Prohibited: The practice of splitting purchase requisitions and purchase order documents or any type of other practice, which indicates an act of splitting orders for the purpose of circumventing dollar threshold limits, is strictly prohibited. Approval and renewal of CDSS’ purchasing authority is in adherence to this and other prohibitions. The PCC Section 10329 states that “no person shall willfully split a single transaction into a series of transactions for the purpose of evading the bidding requirements of this article.”

Once your purchasing packet has been approved by your manager, it can be entered into Fi$Cal as a Requisition. For detailed instructions on how to enter a requisition in Fi$Cal, see the Fi$Cal Requisition Guide (step-by-step).

When the Requisition is approved, SCDD’s purchaser at CDSS will create a Purchase Order and contact the vendor.

The contact person indicated on the AA-18 form will receive an email from CDSS that contains a “Stock Received Purchase Order” and “Stock Received Instructions.”  These instructions will direct staff on documenting the receipt of goods and processing the invoice for payment. Following these instructions is critical to ensuring compliance with all Purchasing Policies and Procedures, which are required by law.

Service Orders are used exclusively for the purchase of services, as opposed to IT/Non-IT goods. Service Orders must be fully executed before a contractor is allowed to start work. Forms and instructions for completing and submitting a Service Order Package can be found at the link below:

• Service Order Instructions and Forms
• Example of a Completed Service Order Form

SCDD participates in the P-Card Program through the Department of General Services (DGS) to ensure access to a flexible payment mechanism for goods and services. Most purchasing for SCDD is done through requisitions, and only a few staff have access to a P-Card.

P-Cards are a method of payment, not a procurement method. This means that when purchasing with a P-Card, you must document your procurement method in the same manner as with a Requisition. You must have a complete and approved purchasing packet prior to providing a P-Card to a vendor to purchase goods. When purchasing with a P-Card, your purchasing packet will contain the following documents when using the competitive procurement method:

• AA18 (Requisition Form)
• GEN 1387 Request for Quote (RFQ) Form
• Quote from 1^st Vendor
• Signed Vendor Page from RFQ (Page 3)
• Quote from 2^nd Vendor
• Signed Vendor Page from RFQ (Page 3)
• Vendor’s STD 204 Payee Data Record (winning vendor only)
• Paid Invoice
• Packing slips

Splitting Orders is Prohibited: The practice of splitting purchase requisitions and purchase order documents or any type of other practice, which indicates an act of splitting orders for the purpose of circumventing dollar threshold limits, is strictly prohibited. Approval and renewal of CDSS’ purchasing authority is in adherence to this and other prohibitions. The PCC Section 10329 states that “no person shall willfully split a single transaction into a series of transactions for the purpose of evading the bidding requirements of this article.”

The Purchasing Packet must be saved for inclusion in the monthly P-Card Packet for statement reconciliation.

P-Card Holders are responsible for submitting documentation each month to support the charges listed on their P-Card Statement. P-Card Packets must be completed and submitted to the Contracts and Grants Analyst by the 10^th of each month.

Completed packets must include the following documents (signed by cardholder and their approver):

1. US Bank Statement
2. Complete Purchasing Packets for all charges (arranged in the same order as listed on the Statement)
3. Completed Cal-Card Log
4. Completed P-Card Checklist

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