Current through Register Vol. 49, No. 9, September, 2024
Chapter 602
Title: DHS Purchasing Authority Special
Provisions
I.
PURPOSE: To provide the Department of Human
Services (DHS) with uniform departmental procedures for the acquisition of
goods and services, in accordance with Arkansas Procurement Law & Rules
(Regulations) (Arkansas Code Annotated [A.C.A.] §
19-11-201 etseq.)
II.
SCOPE:
These procedures are applicable to all DHS divisions, offices,
and facilities.
III.
PROCEDURES: CLIENT EQUIPMENT
A. Purchasing Agents in Office of Finance and
Administration (OFA), Contract Support Section (CSS), Commodities Purchasing
Unit (CPU) shall not consolidate requests for client equipment with other
requests. CPU Purchasing Agents shall process client equipment requests
individually as they are received.
B. The DHS County Administrator is not
required to approve client equipment that is delivered to a field
office.
C. DHS will not be
responsible for payment of merchandise received above the cost reflected on the
purchase order.
D. DHS shall make
payments for architectural improvements to client owned property directly to
the client, not to the vendor, as outlined in Chapter 605 of the Administrative
Procedures Manual.
IV.
PROCEDURES: COPIER EQUIPMENT
The division should follow its internal procedures for
requesting and approving copier equipment (example, using Form DHS-1914). Upon
sufficient division approval, the division shall initiate its formal request to
CPU for copier equipment (or to the facility Purchasing Unit for facility
purchases or leases that do not exceed $25,000).
A. Purchased Copiers
1. The division shall create a purchase
requisition in the Arkansas Administrative Statewide Information System (AASIS)
containing all of the necessary specifications required for competitively
procuring a copier. The required items include, but are not necessarily limited
to, the following:
a. Brand and model that
meets desired specifications, for reference
b. Suggested vendors
c. Number of copies expected to be used per
month
d. Required accessories
(e.g., sorter, finisher, stapler, etc.)
e. Delivery information
f. Required additional functions and Office
of Systems and Technology (OST) approval (e.g., network printing, faxing,
scanning or e-mailing)
* NOTE: OST approval is required for a copier that
is to be used for network printing, faxing, scanning, or e- mailing or that is
anticipated to EVER be used for network printing, faxing, scanning, or
e-mailing.
2.
For purchases not exceeding $25,000 per vendor, per service, per fiscal year,
the CPU (or facility) Purchasing Agent shall conduct the bidding for the
equipment. After the contract is issued, CPU (or facility) Purchasing Agent
shall create the purchase order and forward it to the requisitioner.
3. For purchases exceeding $25,000 per
vendor, per service, per fiscal year, CPU will coordinate the bidding with
Office of State Procurement (OSP) then send the purchase order, along with any
supporting documentation, to the requisitioner.
4. After physically receiving the copier
equipment, the Agency Goods Receipt Technician shall perform the goods receipt
transaction in AASIS for payment.
B. Leased Copiers
1. Divisions lease copiers from the State
Term contract executed by OSP. Copiers available from the contract are specific
to county location. CPU will provide a listing of copiers available under the
State Term contract upon request.
2. The Agency Procurement Technician shall
create a requisition in AASIS and provide the following information to the
Purchasing Agent:
a. Brand and model that
meets desired specifications
b.
Number of copies expected to be used per month
c. Required accessories (e.g., sorter,
finisher, stapler, etc.)
d.
Delivery information
e. Required
additional functions and OST approval (e.g., network printing, faxing, scanning
or e-mailing)
* NOTE: OST approval is required for a copier that
is to be used for network printing, scanning, faxing or e-mailing or that is
anticipated to EVER be used for network printing, scanning, faxing or
e-mailing
3.
Upon approval of the requisition in AASIS, the CPU (or facility) Purchasing
Agent shall create the purchase order.
4. The Purchasing Agent shall print the
purchase order and send it to the Agency Procurement Technician and to the
vendor for delivery.
5. If the
lease on a copier is expiring, divisions needing a replacement shall submit a
request for a replacement copier at least 45 days before the expiration date.
The division shall include the serial number of the expiring copier in the
request.
C. Maintenance
on Copiers
1. Lease of a copier from the State
Term contract includes a full maintenance agreement for the entire term of the
lease. The cost of the maintenance agreement for leased copiers will be
included in the monthly cost of the copier.
2. Purchased copiers should be competitively
procured to include a one year maintenance agreement and a firm price quote for
an optional annual renewal of the maintenance agreement for an additional six
years.
3. Copiers purchased on an
installment purchase arrangement should also be competitively procured to
include a one-year maintenance agreement and a firm price quote for an optional
annual renewal of the maintenance agreement for an additional six years. Once
the machine becomes State owned property, division shall re-evaluate the need
for a maintenance agreement on an annual basis.
4. All maintenance agreements should begin
and end with the fiscal year.
5.
CPU (or facility purchasing unit, for purchases that do not exceed $25,000)
does not automatically arrange for a maintenance agreement after the warranty
on new equipment expires.
6.
Maintenance agreements on equipment are handled as most other purchases. The
requesting division shall enter a requisition into AASIS and shall send the
vendor's current maintenance agreement to CPU (or the facility purchasing
unit). CPU (or the facility purchasing unit) will assist the requesting
division in obtaining a maintenance agreement if necessary. Once CPU (or the
facility purchasing unit) is in possession of the maintenance agreement and the
requisition, CPU shall create a purchase order.
V.
PROCEDURES: EQUIPMENT REPAIR
Repair of equipment requires the authority of a purchase order.
There are three types of repair purchases:
A. Repairs that are exempt by law from the
competitive procurement process:
This type of repair may be started upon receipt of a purchase
order. (See A.C.A. §
19-11-203
[14][0]).
B.
Repairs that are considered sole source or emergency by state regulations:
OSP or Arkansas Building Authority (ABA) must approve this type
of repair before the work is started.
C. Repairs that must be competitively
procured by DHS, OSP, or ABA:
Procurement must be completed and vendor selected before this
type of repair can be started.
VI.
PROCEDURES: INSURANCE
A. Property insurance coverage
1. CSS, Central Support Unit (CSU)
coordinates property insurance coverage. OSP combines most Building and Content
Insurance coverage into one policy bid.
2. The Risk Management Section of the
Arkansas Insurance Department coordinates any additional coverage through
CSU.
B. Vehicular
insurance coverage
1. Prior to the beginning
of each fiscal year Risk Management provides CSU with a insurance coverage
schedule. The schedule includes all vehicles within DHS.
2. All DHS vehicles within the schedule are
covered by a blanket liability policy.
3. Comprehensive coverage is determined based
on fair market value and cost verses loss of vehicles. CSU reviews the schedule
against current value and submits recommendations to the Chief Financial
officer for final approval. Once approved, the updated schedule is submitted to
Risk Management prior to the beginning of the new fiscal year.
C. A Self-insured Fidelity Bond
Program, (A.C.A. §§
21-2-701 et seq.), operated by the
Insurance Department, covers DHS employees.
VII.
PROCEDURES: NOTARY PUBLIC
A. Requesting division shall obtain a
notary pack from the Secretary of State's
office.
B. The division shall
select an insurance company to issue a $7,500 ten-year Notary Bond.
1. The requesting division shall complete the
Notary Bond Application, dating the "Date of Commission" at least two months in
advance to allow time for processing. The division shall secure a notarized
signature on the Notary Bond Application.
2. The division shall enter a requisition in
AASIS, in response to which CPU (or the facility Purchasing Agent) shall create
a purchase order. CPU shall forward a copy of the purchase order to the
requesting division.
3. The
division shall send the Notary Bond Application, along with a copy of the
purchase order, to Accounts Payable for prepayment.
C. Upon receipt of the notary bond, the
division shall send the completed and notarized Notary Bond Application, along
with a copy of the notary bond, to the Secretary of State's office. The
Secretary of State's office should process the application within two days and
return the commission, commission card, and official oath with a cover letter
to the requesting division. (
D. The division shall file the official oath
and original bond with the Circuit Clerk in the resident county. The Circuit
Clerk will mail the oath to the Secretary of State's office. The Secretary of
State's office will enter the individual into their computer files as a Notary
Public. The division shall pay the filing fee at the Circuit Clerk's office by
purchase order or from the county office petty cash fund.
E. To request a Notary Seal or Notary Stamp,
the division shall enter a requisition into AASIS. CPU (or facility) Purchasing
Agent shall create the purchase order and order the Notary Seal or
Stamp.
VIII.
PROCEDURES: VEHICLES
A. Each Division within DHS may submit to CSU
requests for new vehicles. Vehicles may include sedans, station wagons, trucks,
vans, carryalls, four wheel drive and special purpose vehicles. With the
exception of some special purpose considerations (See Special Considerations
below), all vehicles shall be purchased from current state contracts.
B. All Agency funded vehicle requests shall
be submitted utilizing State Of Arkansas Form MV-6. Requests shall be submitted
to CSU by April 1 each year to ensure the vehicle is received during the fiscal
year the vehicle is funded.
C. Each
request submitted shall be reviewed by CSU to ensure it meets the requirements
established by Department of Finance and Administration (DFA) and Act 493 of
1983. MV-6 requests that exceed the established CAP, are requested for vehicles
of greater value than the vehicle being replaced and/or have special purpose
considerations not covered under Act 493, must include written justification.
Once requests meet all requirements they shall be forwarded to the DHS Chief
Fiscal Officer for departmental approval.
D. Immediately following approval, CSU shall
enter each request into the State Agency Vehicle Application (SAVA) and submit
all requesting documentation to DFA for final approval. DFA will review each
MV-6 and either approve or deny each request. Divisions shall be notified by
CSU when a request is denied.
E.
Once all final approvals are received the division shall provide to CSU, in
writing:
1. Asset Shell Number
2. Cost Center
3. Agency Business Area
4. Functional Area
5. Fund
6. Fund Center
7. Internal Order
The form shall also include the approval signature of either
the division director or designate. After the criteria for replacement
established by DFA are met, OSP will place an order for the vehicle.
F. CSU will request
funds from the division requesting the vehicle. It is the responsibility of
each requesting division to ensure that each fund is from a single source
account and that non-general monies are transferred to the account prior to
purchase of the vehicle.
G. Special
Considerations:
1. Detailed specifications
shall be provided to CSU for all requested vehicles over one-ton capacity or
those requiring other special considerations not covered by state contract. CSU
shall forward the request with specifications to DFA for approval. If approved
by DFA, the specifications shall be given to OSP who will review them against
current state contracts. If the requested vehicle is not covered by state
contract, OSP will submit the specifications to vendors to bid. The requesting
division will be notified by CSU as to the status of the request and when and
to whom the bid was awarded.
2.
After all criteria have been met, CSU will notify the requesting division
whether their request has been approved or denied. If approved, the division
will be asked to provide the information in section "E" and that they may
proceed with purchase of the vehicle.
IX.
PROCEDURES: PRINTING
A.
Divisions shall ALWAYS consult with
the DHS Print and Copy Service Center FIRST when they
have printing or copying needs.1. To
place an order with the Print and Copy Service Center, requestor shall go to
the "Print/Copy Center" site on OFA Share and select "Enter Request".
NOTE:
Before placing an
order, requestor may discuss his/her printing needs with the Print and Copy
Service Center Manager or Supervisor.
2. Upon completion of the request form
electronically, requestor shall select "Submit" to forward the request to the
Print and Copy Service Center.
3.
The Print and Copy Service Center will advise the requestor if they have
questions and/or if they can or cannot provide the requested printing/copying.
B. A requestor
MUST
obtain a written determination from
the Print and Copy Service Center Manager or his/her Supervisor that the Print
and Copy Service Center cannot meet the printing and/or copying needs in the
time frame required before the requestor can "out-source" the printing or
copying (i.e., before the requestor can obtain the services of printing or
copying from any source OTHER THAN the Print and Copy Service
Center).
C. If the Print and Copy
Service Center cannot meet the requestor's need, the Manager or his/her
Supervisor shall indicate such in writing to the CPU Purchasing Agent who
possesses the State Delegation Authority to purchase printing services.
NOTE: Amendment 54 to the
Constitution, A.C.A.
19-11-102, and A.C.A
19-11-260 impose
strict regulations on the purchasing of printing. It
is imperative that a duly authorized CPU Purchasing Agent handle the
procurement/purchase.
D. If the Print and Copy Service Center
cannot print the requested items and the total cost (excluding taxes) is $5,000
or less, the CPU Purchasing Agent who is authorized by Delegation Order to
procure printing for DHS will, in order:
1.
Determine if another State agency can provide the service;
2. If not, then determine if the printing can
be purchased off a State Term contract;
3. If not, then secure a minimum of three
bids and select the lowest bidder, adhering to the following requirements, at a
minimum, in accordance with the Printing Delegation Order and Arkansas
Procurement Law:
a. If not being purchased
from another State agency, purchased printing services must be competitively
procured, at a minimum, by the Competitive Bid method (i.e., by soliciting a
minimum of three bids and selecting the lowest bidder.)
b. Bid specifications, standard terms and
conditions, FOB point and
A delivery time must be included in the
competitive bid request.
c.
Printing specifications must be clear, concise and consistent with industry
standards:
d. Bid request shall
indicate a preference for recycled paper.
e. Bid request shall indicate that the
printing MUST be printed in soybean ink, provided that the soybean ink is
comparable in price to other inks and that it is equally suitable for
use.
f. Split purchasing is
prohibited.
g. Award must be made
to the lowest, responsible and responsive bidder as set forth in the
procurement regulations.
4 Complete the purchase order for the
printing.
X.
PROCEDURES: USED EQUIPMENT
A. OFA Distribution stocks some used
equipment at the OFA Distribution Center. If used equipment is acceptable for
the division's needs, the division should submit an electronic (e-mail) request
to the OFA Distribution Center. OFA Distribution will distribute the equipment,
if it is available, to the requesting division on a regular delivery route. If
the equipment is not available, the OFA Distribution Center will notify the
requester.
B. Divisions may trade
in used equipment for new equipment. The division must route its request to the
OFA Central Inventory Control Unit, which will request approval from DFA
Marketing & Redistribution and forward the request to CPU.
C. All offices turning in used computers must
first remove all software and files from the computers' memory. The Unit
Manager or County Administrator must complete and sign a memorandum stating
that this procedure has been completed and attach the memorandum to the
completed Transfer Document, Form DHS-1006. The OFA Central Inventory Control
Unit shall require both documents before it removes the equipment from an
office.
XI.
PROCEDURES: MAINTENANCE CONTRACTS
A. Maintenance agreements are usually
purchased separately from the equipment. If a maintenance agreement is desired
for equipment, requesting division shall take the following steps:
1. Secure a maintenance agreement from the
vendor.
2. After examining the
agreement, enter a requisition into AASIS and send the
original maintenance agreement to CPU (or to the
facility Purchasing Unit, for agreements not exceeding $25,000). THE
DIVISION SHALL NOT SIGN THE AGREEMENT.
B. Upon CPU Purchasing Agent's review and
approval of the document (or facility Purchasing Agent's review and approval,
for agreements not exceeding $25,000), the Purchasing Agent and the contractor
shall sign the agreement. The Purchasing Agent shall create the purchase order
from the requisition, in accordance with Arkansas Procurement Law and Rules and
DHS policy.
C. After completion of
the purchase order, Purchasing Agent shall send copies of the maintenance
agreement and the purchase order to the OFA, General Operations Section,
Purchase Order Unit, the requesting division, and the vendor.
XII.
PROCEDURES: PETTY CASH
A. DHS has a Petty Cash Fund administered by
OFA, General Operations Section. This fund may be used ONLY for purchases not
exceeding $35, which are NOT on State contracts, NOT covered by Amendment 54
(printing, office supplies &
stationery), and NOT travel-related items (i.e., commodities on
State contracts, amendment 54 items, and travel-related items may not be
purchased from petty cash.) (See DHS Administrative Procedures Manual,
Chapter 306, Cash Disbursements, for more details concerning petty cash
funds.)
B.
Utilization by Central Office
1. To utilize
the Petty Cash Fund in the central office, an employee shall obtain the form
(DHS Fund Voucher, Form DHS-1021) from CPU (at 682-6554). CPU tracks the usage
of this sequentially-numbered form to ensure proper accounting. The employee
shall complete the Form DHS-1021 and submit it to CPU. (Instructions for
completing the form are on the back of the form.)
2. The CPU Purchasing Agent'will review the
form to determine that items requested are NOT on a State contract and that
items are appropriate to buy from the petty cash fund. The CPU Purchasing Agent
will sign the Form DHS-1021 to indicate approval. The employee should NOT make
purchases before the request is reviewed and signed by CPU, except in emergency
situations.
3. The requesting
employee shall proceed in accordance with the DHS Administrative Procedures
Manual, Chapter 306.
C.
Utilization by County Offices and Facilities
County offices and facilities shall process their petty cash
requests in accordance with the DHS Administrative Procedures Manual, Chapter
306.
XIII.
PROCEDURES: DISABLED WORK CENTERS
A. A.C.A. §§
19-11-901 and 902 identifies
procedures for purchases of Disabled Work Center products.
B. In accordance with R5:
19-11-902, DHS shall procure
commodities and services from the Work Centers when contract terms and
specifications are equal and the price is not more than 10% above the lowest
competitive price obtained from a non-work center.
C. The appropriate CPU (or facility)
Purchasing Agent shall create the purchase order.