Selling to the state of mn 4 16-13


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This workshop will provide an overview and details about contracting with the State of Minnesota. Topics to be covered include an overview of the state’s purchasing practices; where the dollars come from; how the dollars can be spent; how to get registered as a vendor; where to find business opportunities; and State expectations of contractors. Presenter: Duane Kroll, MN Department of Administration

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Selling to the state of mn 4 16-13

  1. 1. Department of AdministrationMaterials Management DivisionDuane Kroll, CPPB
  2. 2. Purchasing AuthorityCommissioner of Administration(As delegated by Minn. Stat. Ch. 16C)MaterialsManagement DivisionAuthorized AgencyBuyer2
  3. 3. What the State Buys Total value of State purchasingis approximately $1.8 billion Wide Range of Goods Non-Prof/Tech Services Professional/TechnicalServices Construction CPV purchases bringsvalue much higher3
  4. 4. Procurement Overview One time Purchases Long Term Contracts Over 1600 contracts 1 – 5 year contract terms are typical Approximately 1000 contracts areoffered to CPV members4
  5. 5. Cooperative Purchasing Venture(CPV) Program Allows other governmental entities toprocure goods and services from statecontracts, when allowed by the contract Political Subdivision must be a current CPVmember Ability to leverage better prices due toincreased volume (saves time and money)5
  6. 6. Who is Eligible to Join? All governmental units A “governmental unit” is defined by statute as anycity, county, town, school district, politicalsubdivision, licensed nonprofit hospital, or anyagency of the State of Minnesota, another state orUnited States government. (Minn. Stat. 471.59Subd. 1.) See our website to see additional groups that mayparticipate in our program.6
  7. 7. Procurement Methods Request for Bid (RFB) Best Value: Award to lowestresponsive/responsiblebidder meeting all terms,conditions, and specifications Request for Proposal Ability to Negotiation Best Value: Award based onprice as well as other criteria7
  8. 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 Services8
  9. 9. Authority for Local Purchase(ALP) Delegated to individuals in state agenciesby Dept. of Administration Levels of Delegation of Authority $10,000 $25,000/$50,000 Special delegations9
  10. 10. Small Business Preferences Targeted Groups (TG) Must be certified, eligible, andapproved for the specific products andservices Up to 6% preference Economically Disadvantaged (ED) Up to 6% preference Except for Construction: up to 4% Veteran Owned (VO) Up to 6% preference10
  11. 11. Small Business ProgramTargeted Groups (TG) Small businesses owned, operated andcontrolled by the following groups: Minorities (A) Asian (I) American Indian (B) African American (E) Alaska Native (H) Hispanic Disabled (D) Women (W)11
  12. 12. Small Business ProcurementProgram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 ExtendedEmployment provider (Minn. Stat. 268A)12
  13. 13. Commodity Purchase Requirements $0 - $2,500 Minimum of one solicitation to TG/ED/VO withinnormal purchase area $2,500 - $10,000 Minimum of two solicitations Contact a TG/ED/VO vendor, when reasonablyavailable $10,000 - $25,000/$50,000 Minimum of three solicitations Contact a TG/ED/VO vendors, when available Advertised on MMD’s Website13
  14. 14. Veteran’s Owned (VO) Preference In accordance with Minnesota Statutes 16C.16, subd.6a, eligible verified veteran-owned small businesseswith their principal place of business in Minnesotamay receive up to 6 percent preference whenresponding to solicitations. The preference is appliedonly to the first $500,000 of the response.14
  15. 15. Veteran Eligibility Eligible veteran-owned small businesses must becurrently verified by the U.S. Department of VeteransAffairs Center for Veterans Enterprise prior to thesolicitation opening date and time to receive thepreference. If the preference is being applied in a solicitation, thesolicitation document will include language and aform relative to the preference. Eligible veteran-ownedsmall businesses should complete the Veteran-OwnedPreference Form, and include any requireddocumentation.15
  16. 16. Veteran Eligibility (continued) Only eligible, verified, veteran-owned small businessesthat provide the required documentation will be giventhe preference. Information regarding verification by the UnitedStates Department of Veterans Affairs may be found at
  17. 17. Vendor OpportunitiesSolicitation Announcements areposted on MMD’s Advertised RFBs/RFPs for goods and non-P/Tservices Construction projects Some Prof/Tech services Updated real-time daily17
  18. 18. Professional/Technical Services“Services that are intellectual in character; thatinclude consultation, analysis, evaluation,prediction, planning, programming orrecommendation, and result in the production of areport or the completion of a task. Professional ortechnical contracts do not include the provision ofsupplies or materials except by the approval of thecommissioner or except as incidental to theprovision of professional or technical services.”Minn. Stat. § 16C.0818
  19. 19. Professional/TechnicalRequirements $0 - $5,000 Contact a minimum of one vendor $5,000 - $50,000 Advertisement required either in State Registerand/or on MMD website Other advertising encouraged Over $50,000 Advertisement required in State Register MMD website or other advertising encouraged Formal RFP 19
  20. 20. Vendor Opportunities –Professional/TechnicalState Register Advertised RFPs for professional/technicalservices Published each Monday
  21. 21. Who to contact? Agency Procurements Contact agencies directly State Procurements See solicitation postings on MMD’s website Professional/Technical Procurements Contact Agency Also view MMD’s website and State Register21
  22. 22. Vendor’s Common ErrorsError’s when responding to aSolicitation 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, orspecifications that make it a material deviation22
  23. 23. Vendor’s Common Errors (con’t) Did not initial strike-overs properly Pricing in vendor’s response completed inpencil Not providing proper attachments Not providing all the information that wasrequired23
  24. 24. MMD Website Solicitation Announcements Vendor Management information List of Acquisition Management Specialists Professional/Technical Coordinators Small Business (TG/ED) ProgramInformation On Line Vendor Registration24
  25. 25. Registrations/Certifications Online Vendor Registration is on MMD’sWebsite Vendor list used centrally and state wide Vendors can view and change their owninformation Small Business Procurement Program Certified company info available via MMD website (public) Internal automated purchasing system (stateemployees)25
  26. 26. MMD Helpline 651-296-2600 Quick Access General Information Small Business ProgramInformation Bid Request/Bid Results Line MMD Switchboard
  27. 27. Contact Information MMD Helpline 651.296.2600 Bid Results Available Acquisitions Manager/Asst. Director Brenda Thielen Willard; CPPO, CPPB 651.201.2402 Vendor Management Specialist Stephanie Selb 651.201.242827
  28. 28. Questions?28
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