Procurement Methods and Requirements

Central Stores stocks most commonly needed office supply items.

• Central Stores serves only University needs.
• Supplies (paper, custom items, and limited supplies) should be ordered through Red Dragon Depot (RDD) through your office's Administrative Assistant.

The State of New York has extended, to certain agencies, special access privileges to State purchasing activity. These preferred agencies include:

• New York State Department of Correction (Corcraft)
• New York State Preferred Source Program for People Who Are Blind (NYSPSP)
• New York State Industries for the Disabled (NYSID)

The products and services these agencies sell must be purchased by State Agencies regardless of price or other considerations; State University, under flexibility, does have more discretion, but must clearly document the basis for not purchasing from Preferred Sources. Purchases from NY State Preferred Sources do not require any additional documentation.

• OSC and Attorney General (AG) review and approval required prior to award for $75,000 or more.

The Office of General Services (OGS) is the central purchasing agency for New York State. Its bureau of standards and purchase develop product specifications and analyze product performance; its engineering units advise on physical facilities, computerization, telecommunications, etc. OGS also negotiates regional and state-wide term commodity contracts with vendors through a formal competitive process for a variety of consumable supplies and equipment.

• State agencies are required to purchase from these contracts (except when Preferred Sources take precedence). If the contract has the "OGS or less" clause, SUNY, through its flexibility, may utilize term contracts or purchase the equivalent from the open market if lower prices can be obtained.

Besides the usual price advantage gained through the power of volume purchasing and formal competition that NYS term contracts offer, competitive bidding and procurement opportunities requirements can be avoided at the campus level, saving a great deal of time and effort.

• OGS Information Technology (IT) Umbrella Contract may be used for any Software, Hardware, and related Implementation services based on a manufacturer's products.
  • A competitive Request for Quote (RFQ) process is used and solicited to the Manufacturer(s) and all of their Resellers.
  • OSC review and approval required prior to award for $200,000 or more.
• For all other State Contracts with multiple resellers, a minimum of 3 quotes from resellers should be obtained.  These quotes should include any M/WBE and SDVOB resellers.
  • OSC review and approval required prior to award for $200,000 or more.

If the commodities/services are on State Contract, please provide the State contract number.

Open market purchases are defined as purchases of commodities or services that are not available through Preferred Sources or OGS State Contracts.

If the campus wishes to purchase a particular commodity or service from the open market when it is available from a Preferred Source or OGS State Contract, the department must compile clear and defensible documentation explaining why the Preferred Source or State Contract was not selected. Please review the additional requirements below.

NYS competition requirements apply to all State agencies and become stringent as the dollar value of the purchase increases. 

Discretionary Procurements:

$0-$49,999

1. Prices must be documented as reasonable and representing best value. While form competition may not be required, competition is generally the preferred method of establishing best value.
2. For purchases of $2,500 or more, written documentation supporting the vendor selection must be maintained by the campus. A minimum of three (3) informal quotes should be obtained, along with a completed Reasonableness of Price Check List, and included with the purchasing documentation.
3. MWBE/SDVOB goal setting is required for all procurements exceeding $25,000 for labor, services (including architectural and design services), supplies, equipment, or materials.
   1. Please contact the campus MWBE Coordinator at extension 2582 to establish goals.
4. Purchases from a New York State Small Business, certified MWBE, or for recycled or remanufactured goods meeting NYS recycled content standards may be made without competition, provided prices are reasonable and represent best value.
5. Subject to post-audit by the Office of the State Comptroller (OSC).

$50,000-$74,999

1. A minimum of three (3) informal quotes or proposals is required from responsible vendors. (A formal process is optional.)
2. A Contract Reporter notice must be published at least 15 business days prior to award.
3. MWBE/SDVOB goal setting is required for all procurements exceeding $25,000 for labor, services (including architectural and design services), supplies, equipment, or materials.
   1. Please contact the campus MWBE Coordinator at extension 2582 to establish goals.
4. Purchases from a New York State Small Business, certified MWBE, or for recycled or remanufactured goods meeting NYS recycled content standards may be made without competition, provided prices are reasonable and represent best value.
5. Subject to post-audit by the Office of the State Comptroller (OSC).

$75,000-$124,999

1. A minimum of three (3) informal quotes or proposals required from responsible vendors. (While a formal process is optional, it is strongly recommended by the Purchasing & Accounts Payable Office for purchases of $75,000 or more.)
2. A Contract Reporter notice must be published at least 15 business days prior to award.
3. MWBE/SDVOB goal setting is required for:
   1. procurements exceeding $25,000 for labor, services (including architectural and design services), supplies, equipment, or materials, and
   2. procurements exceeding $100,000 for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements.
   3. Please contact the campus MWBE Coordinator at extension 2582 to establish goals.
4. Purchases from a New York State Small Business, certified MWBE, or for recycled or remanufactured goods meeting NYS recycled content standards may be made without competition, provided prices are reasonable and represent best value.
5. Office of the State Comptroller (OSC) and Attorney General (AG) review and approval are required prior to award.

Formal Competitive Procurements:

$125,000 and above

1. A formal procurement process is required: including a minimum of five (5) sealed bids from responsible vendors.
2. A Request For Proposal (RFP) or Invitation for Bid (IFB) is required to fully describe the proposed purchase, particularly for complex procurements involving systems, services, equipment, or installation.
3. A Contract Reporter notice must be published at least 15 business days prior to award.
4. MWBE/SDVOB goal setting is required for:
   1. procurements exceeding $25,000 for labor, services (including architectural and design services), supplies, equipment, or materials, and
   2. procurements exceeding $100,000 for the acquisition, construction, demolition, replacement, major repair or renovation of real property and improvements.
   3. Please contact the campus MWBE Coordinator at extension 2582 to establish goals.
5. Office of the State Comptroller (OSC) and Attorney General (AG) review and approval are required prior to award.

Below is a chart that summarizes both procurement thresholds and AG/OSC approval thresholds under the new legislation (effective March 17, 2023).

^{[1] NYS Small Business Enterprises (SBEs), NYS certified Minority or Woman-owned Business Enterprises (MWBEs) and Service Disabled-owned Business Enterprises (SDVOBEs), commodities or technology that  are  recycled  or  remanufactured products.}

A single source procurement is one in which two or more vendors are capable of supplying the required commodity, technology, or service, but the State agency selects one vendor over the others based on a documented and justifiable business reason.

This method is typically used when competition exists, but one vendor is determined to be the best fit due to factors such as specialized expertise, prior experience, familiarity with agency operations, demonstrated success on similar projects, capacity, or ability to respond within required timelines.

For example, an agency may need to retain a specific consulting firm when several firms are qualified to perform the work, but one firm has relevant prior experience with the agency, knowledge of a specific issue, or demonstrated expertise with similar projects at other agencies or levels of government.

New York State requires that the use of single source procurements be limited and fully justified, and agencies must maintain complete documentation in the Procurement Record.

In a single source procurement, the Procurement Record must include:

• the circumstances leading to the selection of the vendor, including any alternatives considered;
• the rationale for selecting the specific vendor over other available sources; and
• the basis for determining that the cost is reasonable, including how that conclusion was reached, similar to the documentation required for a sole source procurement.

All supporting documentation is required by the Office of the State Comptroller (OSC) in order to review the proposed purchase.

A sole source procurement is one in which only one vendor is capable of supplying the required commodity, technology, or service.

Because this method is used only when no other viable vendor can meet the agency’s needs, it must be fully documented in the Procurement Record and supported by a clear written justification. New York State considers sole source procurements an exception to the standard competitive process and requires detailed supporting documentation.

The Procurement Record must include an explanation of:

• the unique nature of the requirement, including why the specific commodity, technology, or service is necessary;
• the basis for determining that only one known vendor can meet the need, including the steps taken to identify potential competitors; and
• the basis for determining that the cost is reasonable, including how the agency established a fair market price that could reasonably be expected under normal competitive conditions.

Examples of cost reasonableness documentation may include:

• product catalogs
• published price lists
• retail market surveys
• records of previous similar purchases
• prior purchasing experience
• comparable market pricing

All supporting documentation is required by the Office of the State Comptroller (OSC) in order to review and approve the proposed purchase.

If the anticipated procurement cost is $50,000 or more, and the purchase is not being made through a State contract, the campus is required to publish a notice of the anticipated purchase in the New York State Contract Reporter.

The notice must be posed for a minimum of 15 business days prior to award (or prior to bid opening, when applicable). This requirement applies to open market procurements and is intended to ensure public notice and promote fair competition.

Please note that certain procurements may qualify for an exemption; however, any exemption must be properly documented and approved in accordance with New York State requirements.