Central New Mexico
Community College
Procurement 101
Basics of purchasing process
New Mexico Procurement Code: Chapter 13 NMSA
Provide fair and equitable treatment of
Maximize purchasing value of public
Provide procurement system of quality
persons involved in public procurement
funds
and integrity
CNM Governing Board Handbook and CNM Source
Best Practices
What Is Purchased?
Tangible Goods:
• Products that
Services:
Professional Services:
• Performed by
• Performed by
Hybrids:
• Any
can be
personnel
persons or
combination
touched,
that do not
organizations
of two or
including
need
requiring
more of the
supplies,
extensive
specialty
above listed
equipment,
education,
skills. Ex.
categories
materials and
specialty
Architects,
printed
training, or
specialty
materials.
licensing/
trained
Excludes real
licensers
medical
property.
personal,
surveyors,
etc.
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How are these items purchased?
Less than $3,000
$3,000 to
$20,001 to
Greater than
• Best
$20,000
$60,000
$60,000
Obtainable
Price
• P-Card
• Best
Obtainable
Price
Transactions
• Written Quote
• Restriction for
• May process
equipment
costing $1,000
or more
via P-Card with
Purchasing
Approval
• Lowest Price
• Three Written
Quotes
• Formal
Invitation for
Bid (IFB) or
Request for
Proposal
(RFP) issued
by Purchasing
• Existing
Contract
• Sole Source
Competitive: Invitation For Bid
(IFB)
Easier and faster method of procurement
Used for commodity type products and services
Public opening and reading
Best Price Available
Awarded to low responsive/responsible bidder(s)
No changes to price after opening
Information publicly available upon opening
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Competitive: Request for Proposals
(RFP)
Utilized for more complex procurements
Judgment decisions
Most time consuming procurement method
Required for professional services greater than $60,000
Award to highest ranked respondant
Public viewing after award
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IFB Process
Advertised – minimum 10 days
IFB published on Website
Pre-Bid Meeting (not required)
Deadline to submit questions
Publish response to questions
Amendments (if any)
Vendor Response Due
Public opening of vendors’ Bid responses
Purchasing Department verifies low bid compliance (if necessary)
Award & public notification
RFP Process
Advertised – minimum 10 days
RFP published on Website
Pre-Proposal Conference (not required)
– (non-mandatory or mandatory)
Deadline to submit questions
Publish response to questions
Amendments (if any)
Vendor Response Due
Private Opening – review of min qualifications
Evaluation Committee
Preliminary Award & Negotiations
Award and public notification
Procurement - Existing Price Agreements
(Competitively Bid Agreements)
CNM Price Agreements
Procurement Under Existing Contracts
– State Purchasing Division (SPD) – Statewide Price Agreements
– Price agreement with another central purchasing office (UNM)
– Federal Supply Contracts - GSA Agreement (US General
Services Administration Agreement)
• Obtain letter from GSA vendor agreeing to extend to CNM
Cooperative Agreements – i.e. Cooperative Educational
Services (CES) and Western States Contracting Alliance
(WSCA)
“Piggy Backing” is not allowable procurement vehicle
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Exemptions from the Code
Over 30 exemptions from the Code
– Advertising in all media
– Services for eligible persons with disabilities
• example: interpreters
There are no dollar limits if commodity is exempt from the
Code
Emergency Procurement
Definition of Emergency Conditions
– The functioning of government
– The preservation or protection of property; or
– The health or safety of any person
Immediate response required
No dollar threshold
Documentation is developed post event
An emergency condition is a situation that creates a threat to
public health, welfare, safety, or property such as may arise
by reason of floods, epidemics, riots, equipment failures or
similar events.
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Sole Source Procurement
Only when one provider exists
– Not the same as name brand
Single vendor - no competition
No control of costs, terms, and conditions
Conduct a good-faith review of available sources
Must be posted to CNM Purchasing website for 30 days
– Vendor
– Nature and quantity of the goods or services
– Amount
Other vendors may protests within 15 days of the notice
to intent to award
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Pre Procurement Activities
Purchase Requisitions (PR) are the on-line
requisitions entered into the Purchasing (Banner)
System by a department. Regardless of the dollar
amount a Department is required to enter a
requisition prior to obtaining goods and services
(including professional services and hybrids) unless
purchase via P-Card.
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Type of Need
What are you Buying?
Definite Quantity?
Indefinite Quantity?
Price Agreement?
Pure Professional Service?
Public Works?
Valued less than $20,000?
Valued greater than $20,000?
Professional services less than $60,000?
Professional services greater than $60,000?
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Contract Administration
Post Award
Administration
– Ongoing contracts
– Documentation
– Payments
– Termination of Contracts
– Contract renewal
Contractual feedback loop
Systematic method for contract evaluation
Determines good/bad contracts/contractors
Allows improvement of accountability
Contract close outs
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Payments
Pre-payment not allowed
– Except: Minor purchase not exceeding $10,000 for
subscriptions, conference registrations and similar where
prepayment required
15 days to accept invoice
30 days to notice company if invoice is incorrect
30 days to pay after acceptance of invoice
Late payment charge of 1½%
Construction contracts shall provide that payment for
amounts due shall be paid within 21 days
NMSA 1978 Chapter 10 Article 16
Governmental Conduct Act
Positions shall be treated as a public trust
Powers shall be used to advance the public interest
Not to obtain personal benefits or pursue private interests
 Employees shall conduct themselves in a manner as
entrusted to them by the people
Avoid undue influences and abuse in public service. i.e.
conflicts of interest
Employee shall not request or receive money or any
object of value in exchange for promise of performance
of an official act
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Official act for personal financial
interest
Unlawful for public officer/employee take an official act to
enhance financial interest of position
Public officer/employee shall be disqualified from any
official act pertaining to self's financial interest
Exception: unless official act is proportionately less than
benefit to general public
No public officer/employee shall advance official acts for
financial gain
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Government Conduct Act Cont.
Prohibited Employment - unlawful for state agency
employee or local government employee whom
participated in contracting process to be employed with
the contractor
Confidential Information - no public trustee shall disclose
confidential information for one's or another's private gain
No state agency or local government (CNM) shall accept
a bid from which a person participated in the:
– preparation of specifics
– qualifications
– evaluation criteria
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Contracts involving public officers
or employees
Shall not enter into a contract with:
– public officer/employee of the state
– family of public officer/employee
– or a business with above substantial ties
• exceptions: disclosed through public notice, awarded through
competitive process
Person negotiating/executing shall ensure compliance
Unless disclosed publicly, and awarded through
competitive process, entity shall not enter into contract
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Contracts involving former public
officers/employees
Agency shall not enter into contract if:
– contract is in excess of $1,000
– contract resulted of official act by employee/ public officer or;
– assisted in the transaction which directly resulted in the contract
– former employee/public officer shall not assist in contract if
formally assisted in the contractual terms
– for one year, public officer/employee shall not represent for pay
in previously worked agency
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Contracts with Elected Officials
Shall not enter into contracts of services, construction, or
items of tangible property which poses substantial
interest to elected officials (Governing Board)
– Exceptions: contract awarded within the provisions of the
procurement code
Not eligible for sole source or a small purchase contract
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The End
Questions?
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