Information for Small Business

Small Business The Supplier Diversity Subcontracting Program is an initiative of the University of New Mexico to provide maximum opportunities to participate in subcontracts awarded by the University to small, minority-owned, and women-owned businesses. It is intended to help small businesses become financially sound and to foster the development of business relationships between the University and these types of businesses. Anyone interested in obtaining more information is welcome to visit or contact the Purchasing Department. Our Small Business Liaison Officer may also be contacted with any questions or comments. Small Business Liaison Officer (SBLO): Marcos Roybal - Associate Director Finance & Administration | Email: marcosroybal@unm.edu | Phone: 272-1058 Appointment – Small Business Liaison Officer Community Involvement The University of New Mexico, UNM, supports Supplier Diversity and is dedicated to providing New Mexico small, disadvantaged, and/or woman owned business the maxumim opportunity to do business with the University. To reach this goal, the Supplier Diversity Program has the following functions: Encourage the various departments to purchase from small minority and woman owned business concerns. Educate campus departments and Purchasing Agents of UNM's Supplier Diversity Program, providing potential vendor sources available on eMercadoNM and CCR/Pro-Net. Circulate small and disadvantaged company brochures, as applicable to appropriate purchasing personnel, including campus departmental staff. Attend small and disadvantaged business fairs, trade shows and seminars. Vendors are encouraged to register with the federal government Central Contract Registration (CCR). Monitor applicable statutes and regulations to keep apprised of all relevant developments. Interface with other affirmative action programs at the University and in the community. Interface with the Buyers and University departments regarding goals and opportunities, and problem resolution related to minority and woman owned businesses and the University. Identify potential opportunities at UNM. Work with vendors on bond reduction, payment terms, etc. University Awareness Buyer Training The University has weekly Buyer meetings where the Supplier diversity Program, SDP, is discussed. Buyers who have done an outstanding job in working with vendors are recognized. Ways to make University business more available to small companies are also discussed. Expenditure Review The University Purchasing Department periodically reviews UNM expenditures made through purchasing to determine the level of business participation by SDP. Overall expenditures are reviewed, as well as a breakdown of expenditures by categories of goods and services. This information is then used to identify areas where increased participation is desired. The overall purchasing patterns and specifications in these areas are reviewed to determine if minority and women owned businesses do have an opportunity to participate. The information is also used when attending trade fairs and other community meetings to actively seek out vendors in some of the commodity areas. Methods of Procurement The University offers two methods of procurement. First, trained and authorized personnel in departments are permitted to make small dollar purchases with the UNM Purchasing Card ( PCard ). Tangible items and selective services may be procured with the P-Card. The P-Card is accepted by any business that accepts Visa. Second, trained and authorized personnel in departments may submit a request to purchase equipment, goods or services. This process is referred to as a purchase requisition. Purchase requisitions may be converted into a purchase order once the requisition is approved. Only a Buyer in the Purchasing Department has authority to issue, modify and disseminate a purchase order. Doing Business with UNM Formal Competitive Solicitations General Prices for goods and non-professional services may be required to be solicited through the formal Invitation for Bid, IFB, or the Request for Proposal, RFP, in accordance with University Policy. Bids and proposals are posted on the Purchasing Department web site in Adobe Acrobat format, and may be printed from the Purchasing Department web site purch.unm.edu . Interested Offerors may pick up IFBs and RFPs at the Purchasing Department for a $.10 per page charge or may requst a faxed copy of the IFB or RFP. All IFBs and RFPs are advertised in the local Albuquerque Journal. The Supplier Diversity Program Specialist can assist you in preparing an Offer to an Invitation for Bid or a Request for Proposal. Assistance includes reviewing the IFB or RFP, guidance completing UNM forms, bonding requirements, payment terms and clarification requirements. Assistance involving pricing or product selection is not permitted. Please note that: "No state agency shall accept any bid from a person who directly or indirectly participated in the preparation of specification on which the competitive bidding was held." In accordance with New Mexico State Law 10-16-13. Bond Reduction Some procurements require vendors to supply various bonds. Under state law, the buyer has some flexibility in reducing the bond amounts for small businesses in order to allow them equal opportunity to participate in doing business with the University. While bond reductions are not offered automatically, the University is willing to work with an otherwise qualified supplier in the area of bonding. Under certain circumstances, the Purchasing Department may reduce bonding requirements as described below. It is important to note that all bonds, whether they are reduced or not must be executed by a state authorized surety company which must also be approved in Federal Circular 570 published by the United State Treasury Department. A listing is available from the Superintendent of Insurance at the New Mexico State Corporation Commission (505) 827-4297. Goods and Services Bid Bonds If the buyer requires a bid bond, even though it is not necessarily required by state law, the Procurement Code states that a bid must be rejected if it does not comply with the requirement [13-1-147]. Performance and Payment Bonds If performance and payment bonds are required the buyer may reduce the bonding requirement for small businesses [13-1-186]. Unlike procurement of contract services where bond reductions must be stated before the IFB or RFP is issued, bond reductions for goods and services can be made after the bids are received and prior to the award of the contract. Request for Bond Reduction Request for a reduction in the bond requirement must be made in your bid or proposal. Again, a request for reducing the bond may be made for goods and services whether or not it is stated in the IFB or RFP. However, for construction services you may request a reduction of the bond only if it is stated in the IFB or RFP that bond reductions will be allowed. Construction Services Bid Bonds A bid bond of a least five percent of the amount of the bid is required for construction contracts expected to exceed twenty-five thousand dollars [13-1-146]. The Procurement Code states we must reject a bid if the respondent to the bid does not comply with the requirement [13-1-147]. Performance Bonds A performance bond in an amount equal to 100 percent of the price specified in the contract is required. The buyer may reduce the bonding requirement to no less than 50 percent prior to the solicitation of bids. Such a reduction must be stated in the Invitation for Bid. The buyer may not reduce the bonding requirement after the bids are received [13-4-18]. Payment Bonds A payment bond in an amount equal to 100 percent of the price specified in the contract is required. The buyer may reduce the bonding requirement to no less than 50 percent prior to the solicitation of bids. Such a reduction must be stated in the Invitation for Bid. The buyer may not reduce the bonding requirement after the bids are received [13-4-18]. Additional Information The Small Business Administration (SBA) has programs to assist small businesses in obtaining bonding. The Small Business Administration may be reached at (505) 346-7909. Accounts Payable Terms The University's standard payment terms are net 30 however, payment terms may be negotiated with otherwise qualified suppliers. Types of Payment Progress Payments The University can assist you in working with the ordering department to arrange progress payments. Progress payments can be set up based on completion schedules, on receipt of materials for installation; with the installation paid as it occurs or even potential consignment or payment guarantees. An example of a progress payment for a printing job would be a partial payment upon approval of the camera ready art work or typesetting and the balance of the payment at delivery. Construction services are also often paid for through progress payments. While these things are outside of the normal operating procedures, the University is willing to look at these types of terms on an individual basis. The University is however, prohibited by state law from prepaying for goods and services [13-1-158]. Payment Assignments The University can work with you to assign payments. The assignment may be to a bank, to repay a loan or to a manufacturer to pay for the raw materials required for a purchase order with UNM. The Purchasing Department will coordinate the necessary paperwork with the Accounts Payable Department. Definitions Small Business Concerns The University hereby adopts the Small Business Administration (SBA) criteria used to define a business concern that qualifies as a small business concern. The criteria used is specific to the industry in question and includes criteria such as numbers of employees, total sales, and/or production capability. A general guideline used by some organizations is a business concern with less than five-hundred (500) employees. How