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 procurements of commodities or services that are not available through Preferred Sources or OGS State Contracts.

Before proceeding with an open market purchase, departments must first determine whether the required commodity or service is available from a Preferred Source or OGS Centralized Contract. If an open market purchase is made when one of these sources is available, the department must provide clear documentation explaining why the Preferred Source or OGS contract does not meet the campus's needs

Although formal competition is not required solely because a purchase falls below the discretionary purchasing threshold, every procurement must demonstrate best value and include sufficient documentation supporting the purchasing decision.

The procurement record should, as applicable address:

• Preferred Source availability
• OGS Centralized Contract availability
• Vendor selection
• Reasonableness of price
• Vendor responsibility
• MWBE/SDVOB requirements
• Funding source restrictions
• Required campus approvals
• Compliance with SUNY procedures and campus procurement requirements

Competition should be sought whenever practical to demonstrate best value and price reasonableness.

Discretionary Procurements (Under $150,000)

Purchases with a total value of less than $150,000 may be processed as discretionary procurements, provided all applicable procurement requirements are met.

Although formal competitive bidding is not required solely because of the dollar value, departments should obtain competition whenever feasible and maintain documentation supporting:

• Vendor selection
• Reasonableness of price
• Best value determination
• Vendor responsibility

For purchases of $2,500 or more, the Purchasing & Accounts Payable Office strongly recommends obtaining a minimum of three (3) informal quotes whenever practical and completing the campus Reasonableness of Price Check List to support the procurement file.

Purchases from New York State Small Businesses, certified MWBEs, or for recycled or remanufactured products meeting NYS recycled-content standards may be made without competition when prices are reasonable and represent best value.

MWBE/SDVOB Requirements

Goal setting remains required for procurements:

• Exceeding $25,000 for labor, services (including architectural and design services), supplies, equipment, or materials; and
• Exceeding $100,000 for acquisition, construction, demolition, replacement, major repair, or renovation of real property and improvements.

Please contact the campus MWBE Coordinator at extension 2582 to establish applicable goals.

Note: The increase in the discretionary purchasing threshold does not change existing Office of the State Comptroller (OSC) and Attorney General (AG) contract approval thresholds. Certain contracts under $150,000 may still require OSC & AG review and approval before execution.

Formal Competitive Procurements ($150,000 and Above)

Procurements with a total value of $150,000 or more generally require a formal competitive procurement process.

Formal procurements typically include:

• A Request for Proposal (RFP) or Invitation for Bid (IFB), as appropriate
• Public advertisement in the New York State Contract Reporter (NYSCR) for at least 15 business days prior to award
• Compliance with all applicable MWBE/SDVOB requirements
• Any required Office of the State Comptroller (OSC) and Attorney General (AG) approvals prior to contract execution

The Purchasing & Accounts Payable Office will assist departments in determining the appropriate procurement method.

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 $150,000 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.