Statewide Contract (SC) Basics - 1606.1

When to Use SCs

SCs are established to reduce the need for individual departments to conduct repetitive bids for like products.  Use of most SCs, is mandatory, but the use of some SCs is non-mandatory.  Buyers must verify the mandatory or non-mandatory status of a contract by reviewing the user instructions for each contract.

SC Limitations

SC’s do not have dollar limits or limitations to their use unless otherwise noted in the specific contract and/or user instructions.

Contract Price is Maximum

Contract pricing identified within SCs is the maximum allowed.

Distinguishing SC Contracts

SCs are identified in most cases with a numbering system beginning with “1” although there may be some exceptions, e.g., some contracts previously known as CSSI contracts will retain their original CSSI number beginning with a “1S” until the contract is renewed.  In addition, there are some SC contracts that begin with an “8”.  SC numbers beginning with an “8” are restricted to CALPIA use only.

Using SCs

The following must be verified before executing an SC order:

• Departments must have the appropriate purchasing authority.
• Is the contract mandatory or non-mandatory?
• Does the order require any CALPIA waivers?
• Does the order require additional review and approval prior to issuing the order (i.e. Fleet etc.)?
• Obtaining multiple offers is not required since these SCs are established as a result of competition.
• Each SC provides a set of user instructions unique to each contract.  This includes instructions to departments for obtaining DGS written approval for any exemption to conduct a purchase outside of an authorized SC.
• The FI$Cal system will identify the SC numbers on the purchase document.
• Procurement files must be documented in sufficient detail to support the purchase transaction in the same fashion as any other LPA purchase activity.
• Purchasing dollar thresholds, although unlimited, must remain within the department’s approved purchasing authority dollar threshold for SCs.
• That all certified SB or DVBE purchases made through the SCs will be reported monthly by the contract holder and be credited to the purchasing department.

Click here to access the list of LPAs contracts.

SB/DVBE Off-Ramp Policy for Mandatory SC

Mandatory SC awarded by the DGS for goods may have a Small Business/Disabled Veteran Business Enterprise (SB/DVBE) Off-Ramp, meaning departments will be permitted to purchase equivalent products at the same or lower price from other sources that are certified SBs or DVBEs. To determine whether a particular mandatory contract has an SB/DVBE Off-ramp, consult the user instructions for that contract or refer to the State Contracts Index Listing.

SB/DVBE Off-Ramp Usage Rules

In order to utilize the SB/DVBE Off-Ramp, departments must document in the procurement file that the goods being purchased are:

1. Equivalent to the goods available from the SC including product description, functional requirements and manufacturer warranties as provided in the SC and
2. Equal to or less expensive pricing than the pricing offered from the SC for the same product based on the total order value before taxes.

Additional rules for the SB/DVBE Off-ramp are:

• Departments must have applied for and received purchasing authority granted by DGS/PD in order to utilize the SB/DVBE Off-ramp as identified by the user instructions.
• Transactions must be less than $250,000 including sales and use tax, finance charges, postage, and handling charges;
  • For purchases greater than $0 and less than $5,000, departments must document in the procurement file that the price is less than or equal to the pricing on the statewide mandatory contract unless otherwise stated in the user instructions;
  • For purchases of $5,000 and up to $249,999.99 departments must obtain price quotations from two or more certified SBs or two or more certified DVBEs (must be the same certification type) unless otherwise stated in the user instructions;
• SB/DVBE Off-ramp purchases must be made from a supplier with a current California SB or DVBE certification.
• Other rules as specified in the user instructions.

Purchase Documents

Unless otherwise directed by individual SC user instructions, the common purchase document used to issue SC orders is the purchase order within FI$Cal.  When utilizing the SB/DVBE Off-ramp, the system will generate the word “Off-ramp” on the Purchase Order.  Buyers must ensure their purchase is an exact match, make and model, when a product is identified as meeting one or more EPP criteria, meeting all applicable specifications and certifications of the original LPA. Departments within their purchase order shall track EPP and SABRC information as it is noted within the FI$Cal Item Master ID list.

Exemptions

Occasionally, a department will need to purchase a product type other than what is available through the mandatory IT Hardware Statewide contracts.  In these instances, the department must obtain an exemption from the use of the contract from the Department of General Services Procurement Division (DGS-PD), Contract Administrator.

Click here to access the Exemption Form and Instructions.

If you have additional exemption process questions, please contact your contract administrator.

Body Armor Purchases

Departments shall purchase body armor (stab resistant and/or bullet proof vests) from the mandatory SC.  If the products do not meet the department’s requirements, then the department must submit to DGS/PD a requisition for DGS/PD to procure the goods on behalf of the department.

Statewide Pharmaceutical Program

Please click here to access further information on the Statewide Pharmaceutical Program.