Procurement Division
GSPD 13-005 (Rev. 03 28 17) / Attachment 5
Procurement Policy and Procedures Manual Checklist
(State Agency)
Procurement Policy and Procedures Manual Checklist
The state agency’s Procurement Policy and Procedures (P&P) Manual must be written to the intended audience which is state agency procurement staff. The P&P Manual should be written as a step-by-step desktop procedure manual for your procurement staff relevant to acquisition types, acquisition methods, and dollar levels for which purchasing authority has been granted. Replicating entire sections of the SCM with only minimal changes to the verbiage (i.e. replacing “state agency” with your state agency name or acronym) does not meet the intent of developing a P&P Manual that identifies and communicates to personnel involved in purchasing activities, those policies and procedures that are specific to a state agency’s internal processes. The P&P Manual is required for obtaining and maintaining purchasing authority from the Department of General Services.
Please submit only one checklist for your state agency to include responses for both non-information technology (non-IT) and IT P&Ps.
DEFINITIONSPolicy – A written statement that clearly indicates the position and values of the state agency on a given subject. It contains rules and tells one what to do.
Procedures – A written set of instructions that describe the approval and recommended steps for a particular act or sequence of acts. It tells one how to perform a set of tasks in relationship to the state agency‘s policies on conducting business.
P&P MANUAL INFORMATION REQUIREMENTS
Page 1 of 16
Department of General ServicesProcurement Division
GSPD 13-005 (Rev. 03 28 17) / Attachment 5
Procurement Policy and Procedures Manual Checklist
(State Agency)
# / Structure and Introduction Components / DGS USE ONLY
Compliant /
1. 1. / Title Page / Yes
No
2. 2. / Table of Contents
Includes Numbering System – chapter, section, page numbers, and revision date. All pages must be numbered and include the latest revision date. Page numbers listed herein must correspond to the related topic. / Yes
No
3. 3. / Introduction to Manual
a. Purpose of manual
b. Intended audience
c. Location of manual (intranet, hardcopy, etc.) and its availability to employees. / Yes
No
4. 4. / Manual Updates
Identify how and when updates to the P&P Manual will occur. / Yes
No
5. 5. / Acronym List / Yes
No
6. / P&P Manual has been spellchecked and proofed for spelling, grammatical errors, and content / Yes
N
7. / All referenced documents are included as attachments and have working web links / Yes
No
8. / P&P Manual language written by the state agency to intended audience and not a replication of SCM / Yes
No
P&P MANUAL INFORMATION REQUIREMENTS
Page 1 of 16
Department of General ServicesProcurement Division
GSPD 13-005 (Rev. 03 28 17) / Attachment 5
Procurement Policy and Procedures Manual Checklist
(State Agency)
# / Manual Components / Non-IT
Page(s) / DGS USE ONLY
Non-IT Compliant / IT
Page(s) / DGS USE ONLY
IT
Compliant /
1. / SCOPE OF PURCHASING AUTHORITY AND EXCLUSIONS
List approved purchasing authority categories, sub-categories, and dollar threshold limits per the state agency’s current Purchasing Authority Approval Letter (PAAL) and a list of exclusions from purchasing authority.
Note: Exclusions do not apply to IT Purchasing Authority.
References: SCM Vol. 2, Ch. 1, 1.A2.0-3, SCM Vol. 3, Ch. 1, 1.A2.0-3, and SCM F, Ch. 1.A2.02 / Yes
No / Yes
No
2. / PROCUREMENTS EXCEEDING PURCHASING AUTHORITY THRESHOLDS
Explain: when a Purchase Estimate (STD. 66) is required; the process to complete the form; what documents to attach; where to submit, i.e. DGS/PD or CDT; and when to submit a purchasing authority increase request through the Purchase Authority Change Request (PACR) to DGS/PD. Include a web link in your P&P Manual and a copy of the STD. 66 as an attachment.
References: SCM Vol. 2, Ch. 1, 1.A2.4 & Ch. 2, 2.C6.0-3, SCM Vol. 3, Ch. 1, 1.A2.4 and Ch. 2, 2.C6.03, and SCM F, Ch. 1, 1.A2.3 / Yes
No / Yes
No
3. / ORDER SPLITTING
Explain the state agency’s policy prohibiting the splitting of orders to evade the bidding or advertising requirements or to circumvent the approved purchasing authority thresholds.
References: SCM Vol. 2, Ch. 1, 1.A2.5, SCM Vol. 3, Ch. 1, 1.A2.5 / Yes
No / Yes
No
4. / PROCURING FOR ANOTHER STATE AGENCY/IES (IF APPLICABLE)
If the Primary state agency is procuring for another state agency/ies (Secondary), explain the procedures for the Secondary state agency to request and coordinate procurements with the Primary state agency.
References: SCM Vol. 2, Ch. 1, Ch. 1, 1.B2.0-1.B2.9, and SCM F, Ch. 1, 1.9A.0-1.9A.2 / Yes
No / Yes
No
5. / DELEGATING PURCHASING AUTHORITY WITHIN THE STATE AGENCY & SUB-DELEGATIONS (IF APPLICABLE)
Explain the state agency’s policy/criteria for determining staff assignments in the procurement unit and in other offices/units outside of the procurement unit that have sub-delegated purchasing authority. Identify staff positions, their assigned purchasing categories (i.e. LPA, competitive, IT, non-IT), and their dollar limits.
References: SCM Vol. 2, Ch. 1, 1.A3, SCM Vol. 3, Ch. 1, 1.A3.0, and SCM F, Ch. 1, 1.A4.5, and 1.A3.7 / Yes
No / Yes
No
6. / SIGNATURE AUTHORITY
List positions (titles/civil service classifications) authorized to approve and sign procurement documents, and approve procurement activities, including FI$Cal approval processes, the procurement categories authorized, and their authorized dollar thresholds.
References: SCM Vol. 2, Ch. 1, 1.A3.0 and Ch. 8, 8.2.3, SCM Vol. 3, 1.A3.0 and Ch. 8, 8.33, and SCM F, Ch. 9, 9A.1.5 / Yes
No / Yes
No
7. / TRAINING POLICY/PROGRAM
In accordance with the training policy requirement in Public Contract Code Sect. 10333, describe the state agency’s policy to provide procurement-related training opportunities for staff involved in the procurement process.
o Include requirement for all staff involved in the procurement process to be trained at the appropriate levels for the types, categories, and dollar thresholds of the procurements each staff conducts.
o List the procurement-related resources the state agency requires its procurement staff be familiar with.
o Include requirement for all procurement staff to complete DGS/PD California Procurement and Contracting Academy (Cal-PCA) Basic Acquisitions Certification Program (BACP) training classes and the other Cal-PCA acquisitions training classes available that would be helpful to procurement staff.
o Explain the training required and available to state agency procurement staff for FI$Cal processes. Include requirement for all procurement staff to complete FI$Cal User Productivity Kit (UPK) Trainings as well as the other FI$Cal acquisitions training classes available that would be helpful to procurement staff.
o Describe the internal and/or external training provided/required by the state agency for procurement staff.
o Include requirement for the CAL-Card Administrator and anyone issued a CAL-Card to complete CAL-Card training.
References: SCM Vol. 2, Ch. 1, 1.A3.0, 1.A4.1, 1.C1.3, Ch.9, 9.B4.2, SCM Vol. 3, 1.A3.0, Ch.8, 8.33, Ch. 9, 9.B4.2, and SCM F, Ch. 1, 1.A3.5, 1.A3.7, 1.A3.13, 1.A4.5, Ch. 8, 8.B3.2 and Ch. 9, 9.A1.5 / Yes
No / Yes
No
8. / ACQUISITION REQUEST PROCESS
Explain the state agency’s requisition process for centralized and decentralized purchases, including: a copy of the requisition document as an attachment and procedures on completing the form; levels of approval; and required support documentation (i.e. justification, reviews/approvals, funding, specifications, and SOW)
References: SCM Vol. 2, Ch. 1, 1.A3.0, 1.A4.1, 1.C1.3, Ch.9, 9.B4.2, SCM Vol. 3, 1.A3.0, Ch.8, 8.33, Ch. 9, 9.B4.2, and SCM F, Ch. 1, 1.A3.5, 1.A3.7, 1.A3.13, 1.A4.5, Ch. 8, 8.B3.2 and Ch. 9, 9.A1.5 / Yes
No / Yes
No
9. / CONDUCTING PROCUREMENT ACTIVITIES
Provide detailed step-by-step instructions on how to conduct a purchasing activity for the requested or current approved dollar threshold. Procedures must reflect dollar thresholds of each category requested or currently approved.
Tip: Look at each purchasing authority type/category. Organize the information, use a flow chart to establish the sequence of work and integrate SCM requirements to support the procedure
References: SCM Vol. 2, Ch. 1, 1.A3.0, 1.A4.1, 1.C1.3, Ch.9, 9.B4.2, SCM Vol. 3, 1.A3.0, Ch.8, 8.33, Ch. 9, 9.B4.2, and SCM F, Ch. 1, 1.A3.5, 1.A3.7, 1.A3.13, 1.A4.5, Ch. 8, 8.B3.2 and Ch. 9, 9.A1.5 / Yes
No / Yes
No
10. / CONTROLLING AND REVIEWING PURCHASING PRACTICES
Explain how state agency staff controls and reviews purchasing practices and monitors the state agency’s progress in meeting and/or exceeding purchasing authority standards and continuous improvement of the state agency’s purchasing program. (e.g. management oversight, review and approval of requisitions, solicitations and awards, database/SCPRS tracking inside and outside of the FI$Cal system, and audits, training, procurement log, documentation checklists, and ethics training)
FI$Cal: Explain the workflow approval processes in FI$Cal including management oversight, review and approval of requisitions, solicitations and awards, procurement log, documentation checklists, and database/SCPRS tracking.
References: SCM Vol. 2, Ch. 1, 2 & 4, SCM Vol. 2, Ch. 1, 1.A3.0, SCM Vol. 3, Ch. 1, 1.A3.0, and SCM F, Ch. 1, 1.A3.5 / Yes
No / Yes
No
11. / INTERNAL AUDITING OF PURCHASING ACTIVITIES
Identify the staff responsible to perform audits, frequency of audits, focus of the audits, criteria used to determine compliancy (checklists), requirements of a corrective action plan, etc. Include the audit forms used as attachments to the P&P Manual. If the state agency doesn’t have auditing capabilities, then specify entity responsible for internal auditing of purchasing activities (e.g. other state agency other than DGS/OAS).
FI$Cal: Explain how FI$Cal is used as an internal audit tool; frequency of audits, focus of the audits, criteria used to determine compliancy (checklists), requirements of a corrective action plan.
References: SCM Vol. 2, Ch.1, 1.B4.6, 1.C1.3, SCM Vol. 3, Ch. 1, 1.A3.0, and SCM F, Ch. 1, 1.A3.5 / Yes
No / Yes
No
12. / CONFLICT OF INTEREST (COI) / INCOMPATIBLE ACTIVITIES (IA) POLICY & STATEMENT AND ACCEPTING GIFTS AND GRATUITIES
Explain the policy requiring every staff person involved in the procurement process to sign a COI/IA at least once during their tenure with the state agency, including those who prepare requisition requests, receive goods and approve payment. Include: policy requiring all procurement staff to be aware of possible conflicts and sign a COI/IA; a copy of the COI statement included as an attachment; where form is located (hardcopy & web link); and where completed statements are maintained.
Note: State agency must either use the sample COI statement provided in the SCM or develop their own (state agency’s own form must be submitted to DGS/PD for approval).
Note: The COI and IA are not to be confused with #11 Confidentiality Policy & Statement. The COI/IA Statements need to be maintained in a central location, preferably in the procurement office, for audit purposes.
References: SCM Vol. 2, Ch. 1, 1A3.0 and Ch. 1, 1.B4.5; Ch. 2, 2.A2.0; Ch. 11, 11.3.0-2, SCM Vol. 3, Ch. 1, 1.A3.0, Ch.1, 1.B4.5, Ch. 2, 2.A2.0-4; Ch. 11, 11.3.0-2, and SCM-F, Ch. 1, 1.A3.11; Ch. 2, 2.A2.0 / Yes
No / Yes
No
13. / CONFIDENTIALITY POLICY AND STATEMENT
The P&P Manual must include: policy requiring all procurement staff to maintain confidentiality in all procurement activities and sign a Confidentiality Statement for each procurement; a copy of the statement as an attachment; where form is located (hardcopy & web link); who needs to sign; and where completed statements are maintained.
Note: The state agency must have a Confidentiality Policy and a Confidentiality Statement to ensure state agency staff maintains confidentiality in all procurement activities. The state agency must either use the sample confidentiality policy & statement provided in the SCM or develop their own.
Note: The Confidentiality Policy & Statement is not to be confused with COI/IA. The Confidentiality Policy & Statement should be completed for each competitive solicitation by the buyer and all those involved with that particular project, including the bidders. The signed Confidentiality Statements should be maintained in each procurement file.
References: SCM Vol.2, Ch.4, 4, 4.A1.3-5, and SCM-F, Ch. 4, Resources / Yes
No / Yes
No
14. / ETHICS & CONFLICTS
State agency personnel involved in procurement activities are either directly or indirectly spending public funds and are subject to public scrutiny.
Explain how the state agency ensures that personnel involved in procurement activities:
o Act responsibly.
o Conduct business honestly.
o Avoid wasteful and impractical purchasing practices.
o Avoid real or perceived conflicts when conducting business on the State's behalf.
o Advise state agency personnel of expected standards of ethical and moral behavior during any procurement activities involving their participation.
Click here to access the Fair Political Practices Commission's web page for additional information.
References: SCM Vol. 2 and Vol. 3, Ch. 1, 1.A3.0, 1.A4.1 and 3, Ch.2, 2.A1.1; Ch. 11, 11.3.0, and SCM-F, Ch. 1, 1.A3.6 / Yes
No / Yes
No
15. / SEPARATION OF DUTIES
Explain the state agency’s policy to maintain sufficient separation of duties in order to reduce the risk of error or fraud in the state agency’s purchasing program and list the key duties and the staff person(s) responsible for each duty.
Note: Key duties and responsibilities should be segregated to separate the responsibilities for conducting procurements; approving purchase documents; acknowledging and receiving goods and services; approving invoices; and preparing payments. No one person shall control more than one of the key aspects of procurement activities listed above.
Note: The FI$Cal system enforces separation of duties based on user roles. Refer to SCM-F, Ch.1, Topic 5 of this Section C, Role Mapping, for more information.
References: SCM Vol.3, Ch. 1, 1.A4.4, Ch. 9, 9.A5.5, Ch. 10, 10.1.1,and SCM-F, Ch. 1, 1.A3.7; Ch. 1, Topic 5 / Yes
No / Yes
No
16. / ADDITIONAL PRE-PROCUREMENT REVIEWS AND APPROVAL REQUIREMENTS
Explain the state agency’s requirement and procedures for buyers to obtain other approvals as may be required from: Prison Industry Authority (PIA), DGS Surplus Property, DGS Office of Records & Information Management (CalRIM), DGS/PD, DGS/OLS, DGS/RESD, DGS/OFAM (Fleet), DGS/OSP, CDT STPD, CDT Telecom, State Personnel Board, Department of Conservation, and represented employee organizations.