DIVISION OF PROCUREMENT SERVICES MMO Online Quarterly Reporting November 13, 2013 South Carolina Budget and Control Board Division of Procurement

DIVISION OF PROCUREMENT SERVICES

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MMO Online Quarterly Reporting

November 13, 2013

South Carolina Budget and Control BoardDivision of Procurement Services

April Walling, Senior AuditorAudit and Certification


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Topics of Discussion

• Topic I: Reporting Requirement

• Topic II: Use of reported information

• Topic III: Online Reporting System

• Topic IV: Common Issues

• Topic V: System Demo


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REPORTING REQUIREMENT

Topic I


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Sole Source/Emergency• SECTION 11-35-2440. Records of procurement actions

– A governmental body as defined in Section 11-35-310(18) shall submit quarterly a record listing all contracts made pursuant to Section 11-35-1560 (Sole Source Procurement) or Section 11-35-1570 (Emergency Procurements) to the chief procurement officers. The record must contain:

(i) each contractor's name;

(ii) the amount and type of each contract;

(iii) a listing of supplies, services, information technology, or construction procured under each contract.

– http://www.scstatehouse.gov/code/t11c035.php


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Trade-in Sales• SECTION 11-35-3830

– (1) Trade-in Value. Unless otherwise provided by law, governmental bodies may trade-in personal property, the trade-in value of which may be applied to the procurement or lease of like items. The trade-in value of such personal property shall not exceed an amount as specified in regulations promulgated by the board.

(2) Approval of Trade-in Sales. When the trade-in value of personal property of a governmental body exceeds the specified amount, the board shall have the authority to determine whether:

(3) Record of Trade-in Sales. Governmental bodies shall submit quarterly to the materials management officer a record listing all trade-in sales made under subsections (1) and (2) of this section.

– http://www.scstatehouse.gov/code/t11c035.php


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Unauthorized(Illegal)

• 19-445.2015. Ratification– Any governmental body shall submit quarterly a record

listing all decisions required by subsection A to the chief procurement officers

– http://www.scstatehouse.gov/coderegs/c019.php#19-445.2000


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Preferences and 10% Rule• SECTION 11-35-1220. Collection of data concerning public

procurement– All using agencies shall furnish these reports as the chief

procurement officers may require concerning use, needs, and stocks on hand, and the chief procurement officers shall prescribe forms to be used by the using agencies in requisitioning, ordering, and reporting supplies, services, information technology, and construction.

• 10% Rule Memo: April 18, 2011 http://procurement.sc.gov/webfiles/AUD_REPORT/Audit/Reporting_of_Use_of_the_10%25_Rule.pdf

• Preference Expense Memo: May 1, 1998


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USE OF REPORTED INFORMATION

Topic II


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Reports Created• Quarterly Reports(Internal to the Board)

– Report on Sole Source, Emergency and Trade-In Sale Procurements

– Quarterly Record of Illegal Procurements– Quarterly Preference Report– Quarterly Record of 10% Rule

• Annual Reports(Compiled from Quarterlies)– Annual Report of Sole Source and Emergency

Procurements – Record of Illegal Procurements


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Annual Report Trivia

• FY 2012 Sole Sources– 82% procured by 12 agencies($138,954,505 of

$169,306,610)– Consulting services(918) were $54,754,113 an

increase of almost 200%(173) since prior year of $20,026,683

– Top Agencies(in order of $ spent)• MUSC, Dept of Education, USC, Clemson


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• FY 2012 Emergencies– 97.6% procured by 10 agencies($135,497,423

of $138,809,401)– 365 POs totaling $138,809,401 compared to

324 POs totaling $43,209,790 prior year• HHS-Non Emergency Transportation Services for

Medicaid Beneficiaries totaling $109,234,969


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• FY 2012 Illegal Procurements– 39 POs totaling $2,367,854

• First Steps-Interagency Agreement with USC for personnel($332,663)

• Trident Technical College-Nursing Lab Equipment($133,760)

• Clemson-Search for HR Lead Recruiter($92,000)

• DMV-Barcode Update($71,500)


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ONLINE REPORTING SYSTEM

Topic III


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Intro• Went live Jan 8, 2013• Provides transparency for the state’s sole source,

emergency, and unauthorized procurements• Replaces Excel Workbook platform• Effective for all reporting periods applicable for

2013 and after - paper reports are no longer accepted


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Online System Location• Access Directly by typing into a web address bar

http://procurement.sc.gov/PS/agency/auditRpts/PS-audit-

reports-login.phtm OR• Access Indirectly From the Procurement Services

home page (procurement.sc.gov), • Locate Agency Users section• Select the “Resources & Forms” link, • Select the “Reporting” link• Under Instructions On Reporting, select “Online

Quarterly Reporting” link


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What to Know• Users can enter information anytime

• Reports DUE by the end of the month following a reporting quarter

• User ID/Password required

• Information is real time and transparent

– Access by visiting Procurement Services website at: www.procurement.sc.gov,

– Under General Information, select “Transparency”,

– Select “Materials Management Office Transparency Query”

• Direct system questions to– Mac Stiles, [email protected]

– April Walling, [email protected]


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Reporting System Functionality• Enter or Edit Report

Data• Current Quarter Status• Reviewing Entered

Data– Download/View

Previous Data

– View Report Totals


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Enter/Edit Report Data• Data can be entered for any reporting period(current and prior)

• Only data entered during the current reporting period can be Edited

• Use this section to enter PO amendments(POs reported in a prior period)

– Use the same PO number as previously used

– Use the current entry date for the PO date

– Note “Amendment “ in Description section

– Decreases to PO amount should be entered as negative(-)

• Any amounts not entered for a reporting period prior to cutoff should be emailed to Gail Skinner


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Current Quarter Status• Provides summary of reported activity for active quarter

• Allows user to confirm no activity for any particular reporting area

• Users are required to either report activity or confirm no activity for all reporting areas


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Reviewing Entered DataUsers have two other options for reviewing submitted data:•Download/View Previous Data

– Shows itemized layout of entered information for the selected Reporting Time Period

– Users can search based on Document Date or Submission Date– Results are displayed based on Date Reported– Information can be exported to Excel

•View Report Totals

– Shows summarized totals for the selected Reporting Time Period– Users can search based on Document Date or Submission Date– Replaces the Quarterly Report Totals Summary Sheet under the

legacy reporting system


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COMMON ISSUES

Topic IV


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Common Reporting Issues

• Discussed over the next few slides:– Blanket PO’s

– Preference Expense

– Commodity Codes


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Reporting Blanket POs• Initial Report should be for the anticipated total amount of the

Contract

– Ex., Sole Source with IBM regarding consultant work. Agreement is for $400,000 paid in 4 monthly installments of $100,000 each. This should be reported as a $400,000 Sole Source Procurement at the creation of the initial PO, not as 4 different Sole Sources of $100,000 each.


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Reporting Blanket POs• No amendments necessary unless significant difference between

reported vs actual

– Significant is left to agency discretion

• If Amendment is needed:

– Use the previously used PO number

– Use the current entry date for the PO date

– Note “Amendment “ in Description section

– Decreases to PO amount should be entered as negative(-)


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Preference Expense• Difference between Lowest Responsive Bid and Actual

Award Amount

– How much we are “overpaying” as a result of preferences

• When only one vendor responds to bid and claims a preference, there is no preference expense

• If awarded vendor did not claim any preferences, then no preference expense

• If awarded vendor claimed preferences but had lowest responsive bid without them, then no preference expense


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Commodity Codes• Please ensure a valid class is being submitted

– MMO’s report is formatted with the NIGP classes

– Online System transfers reported information into report

– Any code not recognized by the report has to be further researched in order for correct placement.

• This is time consuming and may infringe upon the accuracy of the report


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Commodity Codes• MMO only reports on 3 digit class, first 3 digits of the 5

digit Commodity Code– Architectural Non-Licensed (90714)

• 263 commodity classes reported on

• Be sure to include any leading zeros– Ex., Abrasives is class 005, do not leave the “00” off of the code

• Ways to view the 263 classes:– Google NIGP classes

– SCEIS agencies can download out of SRM

– Email me for an excel spreadsheet with the NIGP classes


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SYSTEM DEMO

Topic V


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Additional Resources• Procurement Services Website,

www.procurement.sc.gov

• Chapter 35 of SC Procurement Code online, http://www.scstatehouse.gov/code/t11c035.php

• Chapter 19 of SC Procurement Code online, http://www.scstatehouse.gov/coderegs/c019.php#19-445.2000

• Transparency Query accessed through–Procurement Services website

–Under General Information, select “Transparency”,

–Select “Materials Management Office Transparency Query”


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Additional Resources• Handout

• MMO Staff– April Walling, [email protected]

– Mac Stiles, [email protected]

– Gail Skinner, [email protected]


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Questions/Comments???

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Documents

DIVISION OF PROCUREMENT SERVICES MMO Online Quarterly Reporting November 13, 2013 South Carolina Budget and Control Board Division of Procurement