PROCUREMENT GUIDELINES

NOTE : When issuing a purchase order on an OGS centralized contract, agencies and vendors are not authorized to change the terms and conditions of that contract, unless such changes are more favorable to the state.

I. Nego tia ting Effe c tive ly

The following are suggestions for negotiating contracts that are most commonly awarded via an RFP, or under a single or sole source theory: • Prior to negotiating, the agency should identify all known issues and outline its position and acceptable alternatives. • To the maximum extent possible, negotiations should be conducted at the agency’s office. Always allow sufficient time to discuss the issues fully. • Look for a “win-win.” Often, it is possible for vendors and procurement staff to agree on terms that are beneficial to both parties. Making any necessary concessions incrementally will aid in working towards a “middle ground” that is satisfactory to all. • Notes should be kept of all negotiation discussions and all revisions should be tracked in writing to ensure that the contract being signed contains all agreed upon terms and conditions. CAUTION: Material terms of a contract awarded pursuant to a competitive bid cannot be negotiated. J . Invo lving Uppe r Man agemen t Even procurements that are limited in scope or are relatively simple have the potential to become controversial. It is recommended that the final selection of a contractor be reviewed by a manager who both has a broad perspective of the agency’s operations and knows the strategic considerations related to the procurement. Management may: 1) concur with the selection; 2) request a re-evaluation in accordance with the pre-established evaluation methodology; or 3) determine that all offers should be rejected and a new procurement conducted. Management may not, however, direct an award to a specific vendor who is not the low bidder or who has not offered the best value in accordance with the pre-established evaluation methodology. K. Documen ting Documentation of all phases of the procurement, including communications with bidders or agency program staff, should be included in the procurement record. Note that contacts with bidders must also be documented in accordance with the requirements of the Procurement Lobbying Law.

New York State Procurement Guidelines 39