013-040 Procurement Types: Exemption

013-040 Procurement Types: Exemption The Exemption procedure allows agencies and institutions to request exemption from ITS to handle specific information technology procurement projects that, by law, require solicitation of bids or proposals, without the involvement of ITS. The exemption procedure is designed for projects involving traditional information technology equipment, software, or services which the agency/institution has the in-house resources and expertise to procure without ITS involvement. The exemption should be approved by ITS before an advertisement is issued for the procurement. A request for exemption should be submitted on an Exemption Request form. A copy of the exemption request form is available in PDF and Word formats on the ITS website. Customers may also submit exemption requests via ITS' online procurement request system. All exemption requests must be signed by the Executive Director of the agency or the CIO of the institution of higher learning, or that person’s designee. The name and title of the agency head, institution CIO, or designee should be entered on the line to the bottom left of the request form and the form should be signed and dated on the bottom right. ITS staff reviews the information submitted on the exemption request form concerning the acquisition, including the procurement approach that will be used and the estimated total lifecycle cost. The exemption request will be approved by the ITS Executive Director, or will be presented to the ITS Board for approval if the total lifecycle cost exceeds the Director Approval threshold. A CP-1 Acquisition Approval Document is issued for the amount of the exemption, based on the agency's estimate of the total lifecycle cost. Agencies that issue purchase orders through DFA should be aware that this CP-1 is uploaded by ITS into MAGIC to authorize processing payment for an exempted procurement. This approval is not vendor specific, as it is issued prior to the procurement process. When exempting a procurement, ITS will specify the maximum amount exempted on the CP-1 Acquisition Approval Document. The agency/institution must submit a request for approval of the additional dollar amount if the procurement results in a cost greater than the estimated total used in the original exemption. When approval is received, the agency/institution may proceed with the procurement without further involvement from ITS, as outlined under "Agency/Public University Responsibilities" below. An exemption cannot be used in conjunction with a sole source acquisition. Sole source acquisitions should be submitted to ITS on a Sole Source Certification Request form. The requirement of soliciting bids or proposals for services that can be competitively provided is NOT waived by an ITS exemption. All applicable statutes for competitive procurements must still be followed by the purchasing entity. An exemption should also be requested if an agency desires to issue a Request for Information (RFI) without ITS involvement. Note that an RFI is for information gathering purposes only and cannot be used as a procurement award for the purchase of IT hardware, software or services. Agency/Public University Responsibilities For exempted acquisitions, the purchasing agency/institution is responsible for making the purchase within the dollar amount authorized by ITS on the CP-1 Acquisition Approval Document and for following all applicable statutory requirements throughout the procurement process, including but not limited to those outlined in Title 25, Chapter 53 of Mississippi Code. These requirements include: (1) development of competitive and open specifications; (2) issuing an advertisement to solicit bids or proposals according to Section 25-53-5 (o) of the Mississippi Code; (3) conducting a thorough and equitable evaluation of all proposals received; (4) responding in a timely manner to all public records and post-procurement review requests; and (5) negotiating and signing a contract, if applicable, within the scope and intent of the specifications. ITS does not participate in any of these steps for exempted procurements. In the negotiation of contracts for the products and services being obtained, agencies and public universities should be aware that, per a 1993 Attorney General Opinion, state agencies do not have the authority to allow a vendor to limit its liability. Pursuant to Section 25-53-21(e) of the 1972 Mississippi Code Annotated, as amended, the Executive Director of ITS may negotiate a limitation on the liability to the State of prospective contractors provided such limitation affords the State reasonable protection. This authority to negotiate a limitation of liability applies ONLY to contracts negotiated by ITS for execution by the ITS Executive Director and does not apply to contracts negotiated for exempted procurements. If a vendor protest results from the exempted procurement, however, the rules and guidelines of the ITS Protest Procedure and Policy apply, with the ITS Executive Director receiving and responding to the protest. Refer to 009-001 ITS Procurement Process Flows for additional information, specifically the flow labeled Exemption Approvals.