Business Process: (what is it?)FISCAL OFFICER TRAINING MANUALEQUIPMENT PURCHASES APPROVAL PROCESSOASAS FIELD OFFICEAn agency that receives <strong>State</strong> Aid from the OASAS is expected to adhere to the “prudent buyer concept” when makingpurchases, whereby the purchase or rental <strong>of</strong> property, materials, supplies or services and the like, may not exceed thecost that a prudent person would pay in the open market to obtain these items under the circumstances prevailing at thattime. <strong>Local</strong> Designated Agencies (LDA’s), <strong>Local</strong> Governmental Units (LGU’s) and direct contract providers will no longerbe required to secure OASAS approval for equipment purchases <strong>of</strong> $5,000 or less if such equipment is included in theapproved budget. Comparably, LDA’s/LGU’s are no longer required by OASAS to grant prior approval for such equipmentacquisitions. LDAs/LGUs retain the right to impose more stringent requirements for such equipment, should they deem itnecessary to fulfill their mandate.Brief Description <strong>of</strong> Process: (how does it work?)The <strong>State</strong> has set the following requirements for purchases. These minimum <strong>State</strong> requirements may be supplemented bythe additional requirements <strong>of</strong> a <strong>Local</strong> Government Unit (LGU).o If the total purchase is for an amount less than $5,000, the local provider will select a reliable vendor at areasonable price.o If the total purchase is for an amount <strong>of</strong> more than $5,000 but less than $25,000, the local provider shall obtain atleast three telephone quotes and select the lowest bidder.o If the total purchase is for an amount in excess <strong>of</strong> $25,000, the local provider shall make a good faith effort toobtain at least five written bids, and shall enter into a written contract with the successful bidder.A written record (i.e., documentation) <strong>of</strong> the procurement, including bids and quotes, shall be maintained and madeavailable for review upon request by appropriate oversight agencies. LGU's and subcontract agencies will not be required,in all cases, to select the lowest quote or bid if it is determined that there is a good commercial reason not to do so. In theevent that the lowest bid or quote is not selected, the local provider shall maintain written justification and/or evidence <strong>of</strong>this decision.*As an alternative to competitive bidding, or as an additional bid or quote, mental health provider agencies can use prenegotiated<strong>State</strong> contracts identified on the NYS Office <strong>of</strong> General Services (OGS) website.Equipment purchases greater than $5,000 requires prior Field Office approval to ensure that the required bidding processwas followed and that the purchase can be programmatically justified/is appropriate. Requests to purchase equipment atthe end <strong>of</strong> the year due to unexpended balances are not acceptable justification <strong>of</strong> programmatic need.Frequency:All requests relating to the current local <strong>fiscal</strong> year must be received by December 1 from Upstate and Long Islandcounties, and by June 1 from the <strong>New</strong> <strong>York</strong> City Department <strong>of</strong> Health and Mental Hygiene (NYCDH&MH).Instructions:Formerly, many equipment purchases required OASAS prior approval even though included in an approved contract orbudget justification form. This has proven to be redundant, time consuming and has resulted in excessive paperwork.Revised ProceduresLDAs, LGUs and direct contract providers will no longer be required to secure OASAS approval for equipment purchases<strong>of</strong> $5,000 or less if such equipment is included in the approved budget. Comparably, LDAs/LGUs are no longer required
y OASAS to grant prior approval for such equipment acquisitions. LDAs/LGUs retain the right to impose more stringentrequirements for such equipment, should they deem it necessary to fulfill their mandate.If an individual equipment purchase is expected to exceed $5,000, OASAS prior approval is required and at leastthree written bids must be received and reviewed competitively prior to purchase.Any purchase <strong>of</strong> computer hardware, information technology (IT) consultant services and/or contracts, networks or majors<strong>of</strong>tware systems expected to exceed $5,000 will require prior written approval by OASAS based on the submission <strong>of</strong> anappropriate IT plan; this pertains to individual purchases or an aggregation <strong>of</strong> several purchases which are integralsystems components. For example, a provider planning to purchase six personal computers, with a total cost <strong>of</strong> $12,000,would need to obtain OASAS approval. In addition, OASAS strongly encourages providers to use OASAS technicalexpertise for all acquisitions which are either below the $5,000 threshold or planned to be accomplished over more thanone year.Unauthorized equipment purchases will be subject to retroactive disallowance.Resources:1. <strong>New</strong> <strong>York</strong> <strong>State</strong> Office <strong>of</strong> Alcoholism and Substance Abuse Serviceshttp://www.oasas.state.ny.us/mis/bulletins/sab94-01.cfm2. Field Office Fiscal Representativehttp://www.oasas.state.ny.us/pio/documents/OASASstaff.pdf3. <strong>New</strong> <strong>York</strong> <strong>State</strong> Office <strong>of</strong> General Services (OGS) Customer Service at 518-474-6717http://www.ogs.state.ny.us/purchase/Default.aspDate: May 1, 2011OASAS Review: (none)
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