Procurement Guidelines - New York State Office of General Services

NOTE: When issuing a purchase order on an OGS centralized contract, agencies andvendors are not authorized to change the terms and conditions of that contract, unlesssuch changes are more favorable to the state.I. Negotiating EffectivelyThe following are suggestions for negotiating contracts that are most commonly awardedvia an RFP, or under a single or sole source theory:• Prior to negotiating, the agency should identify all known issues and outline itsposition and acceptable alternatives.• To the maximum extent possible, negotiations should be conducted at theagency’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 toagree on terms that are beneficial to both parties. Making any necessaryconcessions incrementally will aid in working towards a “middle ground” that issatisfactory to all.• Notes should be kept of all negotiation discussions and all revisions should betracked in writing to ensure that the contract being signed contains all agreedupon terms and conditions.CAUTION: Material terms of a contract awarded pursuant to a competitive bidcannot be negotiated.J. Involving Upper ManagementEven procurements that are limited in scope or are relatively simple have the potential tobecome controversial. It is recommended that the final selection of a contractor be reviewed bya manager who both has a broad perspective of the agency’s operations and knows thestrategic considerations related to the procurement. Management may: 1) concur with theselection; 2) request a re-evaluation in accordance with the pre-established evaluationmethodology; or 3) determine that all offers should be rejected and a new procurementconducted. Management may not, however, direct an award to a specific vendor who is not thelow bidder or who has not offered the best value in accordance with the pre-establishedevaluation methodology.K. DocumentingDocumentation of all phases of the procurement, including communications with biddersor agency program staff, should be included in the procurement record. Note that contacts withbidders must also be documented in accordance with the requirements of the ProcurementLobbying Law.New York State Procurement Guidelines 39