Recent Changes to
OGS Technology Contract Purchasing Guidelines
OGS continues to work with OSC to
simplify technology purchasing for agencies. Guidelines have been
and are continuing to be made more uniform, based on the type of
technology contract. Recent changes include:
- Guidelines for microcomputers
(PCs), printers, software, networking hardware and software,
interactive voice response systems (IVR) and video conferencing
are now very similar (see "Guidelines for Specific
- Under the new guidelines for the
above 6 areas, OSC pre-audit of purchases has been removed.
However, agencies are required to have a procurement record for
purchases above $50,000 and the procurement record will be
subject to a post audit by OSC.
- Single or sole source purchases
involving OGS contractors may now be made under the applicable
OGS contract (see "Single and Sole Source Purchases"
There are three fundamental types
of technology contracts, depending upon the process OGS employs
in establishing the contract. The three types are:
- "Direct Purchase:" The
OGS contract price is competitively bid and is the best price
available. Agencies issue purchase orders directly against the
contract in accordance with the contract guidelines (see
"Guidelines for Specific Contracts). These purchases are not
subject to OSC pre-audit but may be subject to a post audit by
- "Best and Final:" OGS
does either a preliminary competitive bid or a negotiated
contract where the pricing is a good, competitive price at
quantity one. However, since OGS contracts are IDIQ (Indefinite
delivery, indefinite quantity) contracts, the agency, at the time
of purchase, can often obtain better pricing based on its volume
or commitment level, by obtaining a best and final price among
OGS contract holders for the specific technology being purchased.
These purchases are not subject to OSC pre-audit, but may be
subject to a post audit by OSC.
- "Formal Mini-bid:" OGS
does not perform competition in establishing the OGS contract and
pricing is maximum not to exceed. In technology, these contracts
are PBX and IT Services. These contracts are subject to OSC
pre-audit above $15,000 (see "Guidelines for Specific
Contracts) and are subject to OSC post audit when $15,000 or
Technology (state agencies only)
Before a State agency purchases
from any OGS technology contract, Office for Technology approval
of the agency's intent to purchase must be obtained
- Any software purchase above
- Any hardware or services purchase
References" for OFT's policies.
OGS contracts are IDIQ contracts.
Pricing is good at quantity one, but it is important that
Authorized Users do their part to ensure that they are getting
the best deal possible. The following suggestions will enable
- Consolidate purchases across the
agency; don't let each department or office cut orders for
its own requirements.
- Place as few orders as possible;
make infrequent large purchases to increase volume.
- For State agencies, whenever
possible plan purchases so they may be aggregated across the
agency, with other agencies or included in the Office for
Technology's aggregated buys. If this is not possible, always
solicit "best and final" offers from as many
contractors as can reasonably be expected to meet your needs or
negotiate directly in the event of a single or sole source
- When soliciting "best and
final" offers or negotiating, determine in advance what
additional considerations are the most valuable (i.e., lower
pricing, extended warranties, free or more deeply discounted
training or consulting, etc.).
- Determine the value of existing
equipment and look for opportunities to trade in existing
equipment against the acquisition of new equipment.
- If resellers are allowed to
participate in the contract, solicit best and final pricing among
the resellers if at all possible. This is particularly important
when it has been determined that the requirement can only be met
by a single brand of hardware or software.
- Determine when is the best time
to negotiate with the contractor (for example: market place
conditions, company's fiscal year end)? Note that this may be
different for each contractor. Users should seek information,
which enables them to properly plan the best time to
- Consult the OSC Bulletin No.
G-68, which is a good source for negotiation techniques, under
On occasion, an Authorized User
may have a single or sole source purchase in a technology area.
For state agencies, any single or sole source purchases must be
made in accordance with Procurement Council Guidelines [see
"Additional References" above (refer to Procurement
Council Guidelines, Section 4 Procurement Techniques, F. Single
For those single or sole source
purchases related to an OGS centralized contract (e. g.: a need
for services on an OGS software contract where the software
developer is the only vendor that can perform the services), an
agency may make the purchase under the OGS contract, provided
that the agency makes a justification for the single or sole
source purchase, reasonableness of price and obtains OSC approval
for the Single or Sole Source Exemption. Upon OSC approval of the
exemption, the Agency is required to publish an exemption notice
in the NYS Contract Reporter.
Other examples of single/sole
source purchases under OGS technology contracts
- An IT Services purchase where
there is only one contractor capable of performing a specific
project due to unique factors in the project scope.
- When performing Annual
Competition or Transactional Purchases, there may be instances
when a single or sole source represents "best
- Justifying a specific
manufacturer's equipment as sole source. Here, documentation
must include a list of specific features or factors that
distinguish the equipment from other available contract equipment
and why such features/factors are required/important to the
agency. If the selected manufacturer includes resellers in the
contract, the justification for single source must include
documentation as to why competition between the manufacturer
and/or among resellers is not a viable option.
Here is a quick reference table of
what OGS technology contract purchases require OSC pre-audit and
at what dollar thresholds:
||Agency Discretionary Limit
||Agency Discretionary Limit
|Single/Sole Source Purchases
(outside the scope of contract)
||Above Agency Discretionary
|All Other Technology and
||None (see Guidelines for Specific