Purchasers should consider the following best practices when using established SWCs:
Assess Your Needs
Prior to seeking quotes from Statewide Contract (SWC) Vendors, all purchasers should assess their need for a specific good or service based on a variety of factors. For example, SWCs may include language that offers more competitive pricing for higher volume purchases. In addition, SWCs include environmentally preferable products that have been vetted by the Environmentally Preferable Products Procurement Program.
Familiarize yourself with the Statewide Contract
It is the responsibility of each purchaser to understand what is and is not available from each Statewide Contract (SWC). The simplest way to access contract information is by reading the most recent Contract User Guide, which contains guidance and relevant information for using the contracts effectively, identify current and new SWC Vendors, and/or detail performance reporting which may impact your decision.
Take Advantage of Prompt Payment Discounts
Most OSD's Statewide Contracts contain Prompt Payment Discount (PPD) terms available to all eligible entities. The discounts offered may be taken when the payment date is within the number of days specified in the Contract User Guides.
The turn-around time for payments is measured from
- The date services were rendered, or goods were received, or
- Receipt of a valid invoice, whichever is later.
When a SWC includes PPD terms, all Executive Departments and eligible entities are required to pay their bills as quickly as possible to take advantage of this opportunity to generate savings. OSD has standardized the Prompt Payment Discount terms on all SWCs, requiring that bidders submit their discounts based on a 10-day, 15-day, 20-day, and 30-day turnaround for payment.
Negotiate
Many SWCs contain rates that represent the ceiling or the highest rates that may be charged to the Commonwealth. Departments often have a choice of contractors on SWCs from which to select, with a range of rates, added-value features, and prompt payment discount options. Executive Departments are strongly encouraged and, depending on the guidance contained in the Contract User Guides, may be required to request quotes from at least three qualified SWC Vendors. These Vendors should be provided with specifications or a Statement of Work (SOW) that clearly states what is needed to determine what "best value" may be negotiated for the purchase.
Document
OSD is responsible for maintaining the procurement files for the competitive bid process and ongoing contract management for Statewide Contracts. However, each Department is responsible for maintaining documentation for quotes and transactions using Statewide Contracts. To the extent possible, the procurement documentation should reside in COMMBUYS and CLM (for Executive Departments only) as part of the Procurement file. Additional documentation may include, but is not limited to, the following:
- Documents related to quotes and contractor selection
- Purchase Orders placed through COMMBUYS
- Copies of all invoices and related correspondence
- Copies of written notices or other correspondence with the SWC Vendor
- For engagements involving a SOW, document the receivables and deliverables, and information related to disputes and resolution
- Other relevant information about the SWC Vendor and its performance. Departments also must include a reference to the Statewide Contract number in the Agreement ID field in MMARS for encumbrances related to purchases from Statewide Contracts
Communicate with OSD
OSD strives to obtain best value through Statewide Contracts (SWCs). In some instances, buyers may become aware of more favorable pricing or other terms available. This information should be shared with OSD so that the Strategic Sourcing Team (SST) may determine whether additional concessions may be obtained from Statewide Contract Vendors. Departments should reach out to the Category Management Team when planning a large purchase.
OSD often consolidates demand and leverages volume to obtain more attractive pricing. Department input is essential to helping OSD ensure that Statewide Contracts represent “best value” (see 801 CMR.21.00 – Section 21.02 Definitions) through the life of the contract. If, after finding that none of the SWCs meet your needs, reference the Conducting Best Value Procurement Handbook “Appendix A” for Instructions for Submitting Requests for OSD Approval of Non-Standard Procurement Transactions. Waiver requests apply only to Executive Branch departments that are required to use SWCs.
We want to hear about your experiences using OSD's SWCs. Please direct your comments and/or suggestions about your experience using a SWC to the appropriate Strategic Sourcing Category Management Team.