Integrated CSU Administrative Manual

CSU POLICY

--INACTIVE HISTORICAL POLICY--

Section:   CSU POLICY MANUAL FOR CONTRACTING & PROCUREMENT

Section 5000 Policies

Policy Number:  5204.0

Policy Title: Strategic Sourcing Options and Alternatives

Policy Effective Date:  April 28, 2008

Last Revision Date:  
(see revision history)

POLICY OBJECTIVE

To establish system wide contracting and procurement policy as required by Education Code 89036.

POLICY STATEMENT

It is the policy of the CSU to seek and to achieve discounts and to reduce administrative costs through the use of volume purchasing programs and multiple sourcing opportunities. To this end, the CSU is committed to maximizing purchasing leverage through collaborative, joint, and strategic sourcing activities. The Targets of Procurement program, under the direction of administrative vice presidents, and administered by the self-governing council of CSU Procurement Officers, is dedicated to the effective management of strategic sourcing and contracting in the CSU.

 

100  CSU Master Enabling Agreements

These agreements support the strategic sourcing efforts of two or more campuses by combining common requirements for specified goods and services. This enables the CSU to avoid redundant solicitations and contracts, maximize volume discounts, and reduce administrative costs. Each CSU Master Enabling Agreement may have specific conditions for its use. These conditions may include: the extent to which competition requirements have or have not been satisfied, the naming of parties that may place orders against the CSU Master Enabling Agreement, and/or instructions on how to place an order.

Unless stated otherwise within the terms of the Master Enabling Agreement,; if multiple Master Enabling Agreements were awarded to multiple vendors then acquisitions placed against those Master Enabling Agreements shall be competitively solicited from two or more of the awarded vendors resulting in two or more offers.    Such competition may be the result of an informal or formal solicitation process as determined by campus procedures.   Acquisitions provided for by Policy Sections 301A, 301B, 401A, 401B, 501A, 501B and 501C shall be exempted from this competition requirement.  In the event that only one offer is received, documentation of the solicitation method used must be included with the contract documentation. Master Enabling Agreements resulting from a formal competitive process and where only one vendor was awarded an agreement do not require further competition.

Persons interested in pursuing volume purchasing, either on a multiple campus or systemwide basis, should contact either the Director of Contract Services and Procurement or their local campus procurement offices.

A directory of all CSU Master Agreements is maintained at the CSU Contract Store website.

 

200  Blanket Purchase Orders (BPO) and Multiple Awards

BPO are primary source agreements which are designed to supply goods or services on an ongoing basis for a designated period of time. The agreement generally establishes prices, terms, conditions, and the period covered. Quantities or minimum sales are not required.

Awards may be initiated with more than one vendor or contractor for comparable products or services. Multiple awards may be used in instances where awarding to a single provider would be impractical or fail to satisfy the overall requirements of all potential users.

 

300  CSU Master Pricing Agreements

In order to reduce administrative costs to the CSU, Master Pricing Agreements may be awarded. Such agreements establish fixed prices/rates provided by vendors for the purpose of acquiring goods and services at the vendors’ best pricing. These prices/rates may be based on aggregate volume purchased and may include mutually agreed to terms and conditions for any resulting orders placed by campuses. Master Pricing Agreements may be used to establish market pricing or price reasonableness when a procurement is not subject to competition. Master Pricing Agreements are not to be used in lieu of satisfying formal competition requirements. In addition, Master Pricing Agreements may be established to assist in the meeting of legislatively mandated procurement goals for programs such as Buy Recycled Products and DVBE. Master Pricing Agreements are listed at CSU Contract Store website.

 

400  General Services Administration of the United States (GSA) Pricing Schedules

A Multiple Award Schedule (MAS) is an agreement established between the General Services Administration (GSA) of the United States and multiple vendors for the purpose of acquiring goods and/or services under specific prices, terms and conditions. GSA agreements may be used by the CSU if the GSA vendor is willing to extend the same GSA prices to the CSU, prices in the agreement have satisfied CSU’s competitive solicitation process, and the terms of the agreement include the terms required by California law.

 

500  California Multiple Award Schedule (CMAS) and State Master Agreements

A California Multiple Award Schedule (CMAS) and State Master Agreements are agreements established between the California Department of General Services (DGS) and multiple vendors who agree to the State of California terms and conditions, and may be used by the CSU.  Acquisitions based on CMAS or State Master Agreements shall be competitively solicited by the CSU resulting in offers from three or more vendors including one small business, if available.  If less than three offers are received, documentation of solicitation methods must be included with the contract documentation.  Acquisitions provided for by Policy Sections 301A, 301B, 401A, 401B, 501A, 501B and 501C shall be exempt from this competition requirement. Three offers are not required for CMAS and State Master Agreements based on competition, such as Cal-Store, the Master Rental Agreement, Western States Contracting Alliance (WSCA), etc. Information on specific CMAS and State Master Agreements are available on DGS’s website at: http://www.pd.dgs.ca.gov/cmas/default.htm .

Prior to placing orders under the California Multiple Award Schedule program, the CSU shall, whenever practicable, first consider offers from small businesses and Disabled Veteran Business Enterprise suppliers that have established CMAS contracts.

Reference: Government Code 14846

 

600  Cooperative and Consortium Purchasing Agreements Administered by Non-CSU Agencies

A cooperative purchasing relationship is one in which a lead government agency conducts a solicitation and executes and maintains an agreement for which all members of the cooperative, including the lead agency, may utilize and will benefit equally.

A consortium purchasing relationship in one in which a third party conducts a solicitation and executes and maintains an agreement with the intent that the primary benefit of such an agreement will be to its member organizations.

Participation in cooperative and consortium agreements, administered by public or private organizations external to the State or the CSU, is permitted for acquiring goods and services if all of the following are met.

The solicitation process and the resultant contract for the goods and services are in compliance with all applicable California laws and CSU policies, including Small Business/DVBE, ADA, etc.

  1. The solicitation process and the resultant contract for the goods and services are in compliance with all applicable California laws and CSU policies, including Small Business/DVBE, ADA, etc.
  2. The agreement represents the best value for the CSU.
  3. There is a compelling business reason to participate.

In addition, the relationship between the CSU and the consortium or the lead agency responsible for executing and maintaining the contract must be fair and equitable and provide the CSU with sufficient coverage in terms of risk and liability.

 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

 

Related Principles:

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

 

COGNIZANT OFFICE(S)

CO Manager:

Tom Roberts
Director, Contract Services & Procurement
CSU Office of the Chancellor
troberts@calstate.edu

Subject Expert:

Tom Roberts
Director, Contract Services & Procurement
CSU Office of the Chancellor
troberts@calstate.edu

Affinity Group:

Procurement and Support Services Officers

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