3. What the State Buys
Total value of State
purchasing is approximately
$4 billion
Wide Range of Goods
Non-Prof/Tech Services
Professional/Technical
Services
Construction
3
4. Procurement Overview
One time Purchases
Long Term Contracts
About 1700 contracts
1 – 5 year contract terms are typical
Approximately 1000 contracts are
offered to CPV members
4
5. Cooperative Purchasing Venture
(CPV) Program
Allows other governmental entities to
procure goods and services from state
contracts, when allowed by the contract
Political Subdivision must be a current
CPV member – no cost membership
Ability to leverage better prices due to
increased volume (saves time and money)
5
6. Who is Eligible to Join?
All governmental units
A “governmental unit” is defined by statute as any
city, county, town, school district, political
subdivision, licensed nonprofit hospital, or any
agency of the State of Minnesota, another state or
United States government. (Minn. Stat. 471.59
Subd. 1.)
See our website to see additional groups that may
participate in our program.
6
7. Procurement Methods
Request for Bid (RFB)
Best Value: Award to lowest
responsive/responsible
bidder meeting all terms,
conditions, and specifications
Request for Proposal
Ability to Negotiation
Best Value: Award based on
price as well as other criteria
7
8. Request for Bid/Proposal
Advertising Required
Over $25,000 for goods & non-P/T services
Over $25,000 for construction
Sealed Bids/Proposals Required
Over $50,000 for goods & non-P/T services
Over $50,000 for construction
Professional Technical Services
8
9. Authority for Local Purchase
(ALP)
Delegated to individuals in state agencies
by Dept. of Administration
Levels of Delegation of Authority
$10,000
$25,000/$50,000
Special delegations
9
10. Small Business Preferences
Targeted Groups (TG)
Must be certified, eligible, and
approved for the specific products and
services
Up to 6% preference
Economically Disadvantaged (ED)
Up to 6% preference
Except for Construction: up to 4%
Veteran Owned (VO)
Up to 6% preference
10
11. Small Business Program
Targeted Groups (TG)
Small businesses owned, operated and
controlled by the following groups:
Minorities
(A) Asian (I) American Indian
(B) African American (E) Alaska Native
(H) Hispanic
Disabled (D)
Women (W)
11
12. Small Business Procurement
Program
Economically Disadvantaged (ED)
(L) Labor Surplus Area
County designated by US Dept of Labor
(M) Low Median Income County
County designated by MN Planning
Certified Rehab. Facility or Extended
Employment provider (Minn. Stat. 268A)
12
13. Commodity Purchase Requirements
$0 - $5,000
Minimum of one solicitation to TG/ED/VO within
normal purchase area
$5,000.01 - $10,000
Minimum of two solicitations
Contact a TG/ED/VO vendor, when reasonably
available
$10,000.01 - $25,000/$50,000
Minimum of three solicitations
Contact a TG/ED/VO vendors, when available
Advertised on MMD’s Website
13
14. Veteran’s Owned (VO) Preference
In accordance with Minnesota Statutes 16C.16, subd.
6a, eligible verified veteran-owned small businesses
with their principal place of business in Minnesota
may receive up to 6 percent preference when
responding to solicitations. The preference is applied
only to the first $500,000 of the response.
14
15. Vendor Opportunities
Solicitation Announcements are
posted on MMD’s website and/or
Vendor Portal:
www.mmd.admin.state.mn.us
Advertised RFBs/RFPs for goods and non-P/T
services
Construction projects
Some Prof/Tech services
Updated real-time 15
16. “Services that are intellectual in character; that
include consultation, analysis, evaluation,
prediction, planning, programming or
recommendation, and result in the production of a
report or the completion of a task. Professional or
technical contracts do not include the provision of
supplies or materials except by the approval of the
commissioner or except as incidental to the
provision of professional or technical services.”
Minn. Stat. § 16C.08
16
17. Professional/Technical
Requirements
$0 - $5,000
Contact a minimum of one vendor
$5,000 - $50,000
Advertisement required either in State Register
and/or on MMD website
Other advertising encouraged
Over $50,000
Advertisement required in State Register and/or
Vendor Portal
MMD website or other advertising encouraged
17
19. Who to contact?
Agency Procurements
Contact agencies directly
State Procurements
See solicitation postings on MMD’s website
www.mmd.admin.state.mn.us
Professional/Technical Procurements
Contact Agency
Also view MMD’s website, Vendor Portal, and
State Register
19
20. Vendor’s Common Errors
Error’s when responding to a
Solicitation
Did not get their response in on time
Failed to read the solicitation document
Did not sign properly
Did not respond to all requirements
Taking exception to the terms, conditions, or
specifications that make it a material deviation
20
21. Vendor’s Common Errors
(con’t)
Did not initial strike-overs properly
Pricing in vendor’s response completed in
pencil
Not providing proper attachments
Not providing all the information that was
required
21
23. Registrations/Certifications
Online Vendor Registration is on MMD’s
Website
Vendor list used centrally and state wide
Vendors can view and change their own
information
Small Business Procurement Program
Certified company info available via
MMD website (public)
Internal automated purchasing system (state
employees)
23
24. MMD Helpline 651-296-2600
Quick Access
General Information
Small Business Program
Information
Bid Request/Bid Results Line
How to Register as a Vendor
MMD Switchboard
www.mmd.admin.state.mn.us 24