PROCUREMENT GUIDELINES

G. P re fe rred Sou rce Offe rings

When a commodity or service desired by a state agency, political subdivision or public benefit corporation (including most public authorities) is available from a preferred source in the form, function and utility required, and the price, as determined by OGS, is no more than 15 percent above the prevailing market rate (or, in the case of Correctional Industries, the price of the commodity does not exceed a reasonable, fair market rate as determined by the Department of Correctional Services), the state agency must purchase that commodity or service from a preferred source. When doing so, agencies must adhere to the priority that has been accorded to the preferred sources in State Finance Law §162, as follows: With respect to commodities , agencies must purchase from preferred sources in the following prioritized order, if available:

First:

From the Department of Correctional Services’ Correctional Industries Program (CORCRAFT);

Second: From the approved, charitable, non-profit making agencies for the blind; and

Third:

Equal priority is accorded to approved, charitable, non-profit making agencies for the severely disabled, qualified special employment programs for mentally ill persons, and qualified veterans workshops.

With respect to services, if more than one preferred source meets the agency’s form, function and utility requirements , equal priority shall be accorded to the services rendered and offered for sale among the approved charitable, non-profit making agencies for the blind, other severely disabled persons, qualified special employment programs for mentally ill persons, and qualified veterans workshops. If more than one preferred source meets the agency’s requirements, cost shall be the determining factor. NOTE : The Department of Correctional Services’ Correctional Industries Program (CORCRAFT) is not a preferred source option for the purchase of services. Products or services purchased from preferred sources do not require competitive bids . For more information and the list of approved preferred sources offerings, see:

www.ogs.state.ny.us/procurecounc/pdfdoc/psguide.pdf

H. Con tra c ts

Contracts are written agreements between a buyer (the state) and a seller (the vendor). These documents specify various terms and conditions to which the parties must adhere. Some examples of these terms and conditions include the following:

New York State Procurement Guidelines 6