Power Point Presentation - Department of Economic Opportunity

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AGENCY
CONTRACT MANAGEMENT
CERTIFICATION
TRAINING
February 2010
1
Welcome & Introductions

Name, Program Area
I am in this class because ….
 The best job I ever had was ….
 The worst project I ever worked on was ….

2
TRAINING SCHEDULE

Day 1
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Procurement and Contract Tracking System (PACTS)
Procurement Methods
Role of the Information Technology Office
Role of Financial Services
Doing Business with Minority Business Enterprises
Role of the General Counsel’s Office
How to Write Contracts
3
TRAINING SCHEDULE CONTINUED…….

Day 1 (continued)
– Contract Review Process
– Developing and Processing Contracts, Amendments
Renewals and Extensions
– Managing Contract Files
– Programmatic & Contract Monitoring

Day 2
– “Contract Management in Florida” presented by Walter
Sachs, DCF Staff Director, Contract Administration Perform
Examination Review
4
Organizational Chart
Cynthia R. Lorenzo
Director
Kevin Thompson, Director
of
Agency Support Services
Robert Monroe
General Services Officer
Bridgett Jackson
General Services
Specialist
Laura Jennings
General Services Purchasing
Manager
Eleanor “Fran” Shewan
Purchasing Supervisor
Christina Harrell
Purchasing Analyst – Contract
Administration /CMBE
Coordinator
Sonja Stokes
Purchasing Specialist
5
Guiding Principles and Responsibilities
Legality and Ethics
 Effective Services
 Efficiency
 Economy
 Fairness & Open Competition
 Diversity

6
Authority

Authority
– Chapter 287, Florida Statutes
– Chapter 60A-1, Florida Administrative Code

Other Related References
– AWI Purchasing Policy, 4.02 – “Purchasing and
Contracting Procedures Manual”
– DMS State Purchasing Memorandums
– Department of Financial Services
» Reference Guide for State Expenditures
» CFO Memorandums
» Agency Addressed Memorandums
– Federal Regulations
7
s. 287.001, F.S.- Legislative Intent

Ensure the following:
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Fair and open competition
Reduce the appearance and opportunity for favoritism
Inspire Public Confidence
Awarded Equitably and Economically
Effective Monitoring Mechanisms
Uniform procedures are followed
Detailed Justification of the Agency Decisions
Ethical Behavior
8
PROCUREMENT AND CONTRACT
TRACKING SYSTEM
(PACTS)
OVERVIEW
Laura I. Jennings
Purchasing Manager
Agency for Workforce Innovation
9
PACTS

WHY WAS IT CREATED:
– The PACTS database was created to track:
» the process of administering a contract from the
initial stages of identifying the program area need
» through the procurement of a provider to deliver
those commodities or contractual services,
» track the routing of contract documents through the
agency review process, and
» to document the contract history (start/end dates,
increases/decreased, amendments, renewals, and
extensions)
10
Purpose of PACTS



To assist the Agency in complying with applicable
state and federal laws, rules and regulations.
To provide a resource to the Agency for
proactively manage and track the history of
Agency two-party contracts.
Program Areas have view access for tracking
expiration dates
http://intra.awi.state.fl.us/pacts/
11
METHODS OF PROCUREMENT
Laura I. Jennings
Purchasing Manager
Agency for Workforce Innovation
12
Types of Procurement

Three Main Types
– Small Purchases
» Discretionary

< $2,500 – Requires only one (1) quote
» Informal


$2,500 - $14,999.99 – Requires two (2) or more quotes
>$15,000 - $24,999.99 – Requires three (3) written quotes
– Non-Competitive
»
»
»
»
»
»
Emergency Purchases
DMS Authorized Agreements (STC, ACS & SPA)
Single Source
Exempt
Continuing Education
PRIDE and RESPECT
– Competitive Solicitations >$25,000
» Invitation to Bid
» Request for Proposal
» Invitation to Negotiate
13
Procurement Cycle
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Identified Need
Specification Development
Determine Method of Procurement
Obtain Quotes or Conduct Formal Solicitation
Agency Selection & Award
Contract Development (MFMP DO or Two-Party)
Delivery of Services
Invoice and Payment
Monitoring Contract Performance
Contract Closeout
14
Internal and External
Requirements

Internal
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Cost Price Analysis
Vendor vs Subrecipient
Conflict of Interest
IRA
OCO
Facility Services
Routing Process

External
– DMS
CSA Telecommunication
Single Source >$150,000
– DFS
– Council of Efficient
Government
– TRW
15
Invitation to Bid – ITB

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Commodity or service is easily identified;
Bidders offer pricing based on set requirements
(i.e., manufacturer, model, size, color, etc.);
Bidder qualifications and commodity/service will
be compared to the requirements of the ITB, but
not to each other;
Award will be made to the responsive and
responsible bidder offering the lowest price.
16
Request for Proposal - RFP
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Written determination why ITB is not practicable,
to be approved.
Defined scope of work with multiple solutions.
The vendor qualifications, experience and quality
of service are more important than price.
Proposals will be compared to each other.
Award to Respondent that receives the highest
total points for technical and cost.
17
Invitation to Negotiate - ITN
■ Scope of Work cannot be completely and accurately defined.
 Two Step process
1. Evaluation Scoring/Ranking Highest to Lowest
a. Shortlisted Vendors Move Forward
2. Negotiation Phase
a. Negotiations are conducted to level the
playing field
b. Responses are compared to each other
c. Qualifications and quality of service may be
considered more important than price
d. Vendor is selected on “Best Value”
18
INFORMATION TECHNOLOGY’S ROLE
IN PROCUREMENT AND CONTRACT
MANAGEMENT
Parker Cape
IT Contract Manager
Agency for Workforce Innovation
19
Objectives

Discussion of Five Topics:
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Definition of Information Technology
Information Resource Authorizations (IRA)
Security Considerations
Early Involvement
Contract Review Process
20
Information Technology Definition

s. 282.0041(16), F.S., means “Information
Technology” equipment, hardware, software,
firmware, programs, systems, networks,
infrastructure, media, and related material used to
automatically, electronically, and wirelessly
collect, receive, analyze, evaluate, process,
classify, manipulate, manage, assimilate, control,
communicate, exchange, convert, converge,
interface, switch, or disseminate information of
any kind or form.
21
Information Technology Definition
continued….
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Equipment
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Server/Terminal/Thin Client
Storage/Tape/Virtual Tape
UPS/Surge Suppression/Batteries
Firewalls/Infrastructure Equipment/VPN
Desktop/Laptops
Software
– Licenses/renewals/maintenance

Services
– IT Consulting/Staff Augmentation
– Data Circuits
22
Information Resource Authorization
(IRA)


What is an IRA?
An IRA is a request for acquisition of information
technology or services, including those procured
through a contract.
Why an IRA?
It is the responsibility of the Information
Technology Unit to ensure that AWI is procuring
information technology (hardware, software,
services, etc.) that can integrate and interconnect
with our existing IT systems and services and is
consistent with AWI policies and Florida Statutes.
23
Information Resource Authorization
(IRA)
continued….
A completed IRA Form must accompany all
IT related acquisitions.
 It is required via the Agency’s Information
Technology Purchasing Policy 5.01.
(Revision Pending)

http://www.floridajobs.org/Policies/IT/itequip_%20purch_repairpolicy5.01.pdf
24
Security Considerations
Information System Security Plan (ISSP) Policy 5.02
■ Know Confidentiality Rules
– Adopted 11/06
– http://intra.awi.state.fl.us/info_sec/index.htm

Security is EVERYONE’s responsibility!
Build security in from the beginning
■ Contract and bid language should contain security requirements
■ Positions of Special Trust 1.08
− Reaffirmed 2/09
− http://www.floridajobs.org/policies/Director/Policy%201.08%20Special_Trust_Positions.pdf
■ Always evaluate the risk of your decisions!
25
Early Involvement

In any contract acquisition involving technology, bring IT into the
process with you…..the earlier the better!
– All new projects require a project definition form to be submitted to your
IT Application Manager
»
»
»
»

Carlton Bassett – Workforce Services
Patrick Greene – Administration
Jill Conley – Office of Early Learning
Allen Northrup – Unemployment Compensation
Things to consider
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Long term, recurring cost of IT support staff (5 to 10 Years)
Licensing fees and renewals
Mandatory upgrades (hardware and software)
Total cost of ownership
Existing Agency infrastructure
Warranty period
26
IRA Submission Process
IRA Submission
Begin IRA
Submission
Submit IRA
IT Reviews IRA
Does AWI have an
existing solution?
Yes
No
Is purchase
compatible with Agency
technology & Senate
Bill 1892?
Yes
Contact
Application
Manager &
Complete Project
Definition Form
Yes
Will purchase
consume 200 or more
hours of IT resource
time?
Is existing solution
acceptable?
Yes
No
No
Is there an alternate
solution?
No
Yes
Terminate IRA
Submission
No
Application
Manager Walk
Through Process
with Business
Unit
Enter “Service
Request”
Process IRA
End IRA
Submission
27
FINANCIAL SERVICES ROLE IN
PROCUREMENT AND CONTRACT
MANAGEMENT
Alisa Roberson
Disbursements Supervisor
Agency for Workforce Innovation
28
The Disbursement Unit’s Role
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Set up of the Contract number in FLAIR
Entry of the Encumbrance in FLAIR so spending and budget can be tracked
and verified by the program offices
In accordance with CFO Memorandum #1 (2007-08) all contracts require DFS
review prior to the initial payment request
http://myfloridacfo.com/aadir/cm070801.pdf
Submission of contracts to the Department of Financial Services (DFS) for a
pre-audit 10 days prior to the first request for payment being made
Review of all payment requests to ensure compliance with terms of contract,
all applicable regulations and to request payment through DFS
Maintenance of the original documentation of payments made through FLAIR
(NOT those originating in MFMP)
Mail-out of warrants issued to the vendor/contractor
29
What F&A Needs From Contract
Managers

For all contracts:
– A copy of the completed, signed contract when executed
– The contract number referenced on any and all
correspondence about your contract
– A signed and dated Contract Summary Form accompanying
a signed and dated invoice
http://www.fldfs.com/aadir/summary_csa.htm
– Any accounting code changes (grant, org, etc.) or any
warrant mailing/handling instructions at the time of invoice
processing
– Documentation to support the invoice
» A detail of the charges, if summarized on the invoice
» Reviewed to ensure it matches the contractual rates/fee
30
What F&A Needs from Contract
Managers (Continued)

For contracts entered into MFMP:
– The contract number included on the Requisition at time of
creation
– Reference to the contract number on the Invoice
Reconciliation (IR) if it’s not “chosen” at the time of
requisition
– All documents (contract, attachments, etc.) scanned and
attached to the Requisition
– The Contract Summary Form scanned and attached on all
IRs
– Additional supporting documentation scanned and attached
to the IR, as requested by DFS, especially if not on the
original Requisition
31
How Contract Managers Can Help
Themselves
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Track all disbursements to ensure adequate
contract balance and accurate encumbrances
Enter MFMP Change Orders for any permanent
changes in accounting codes
Communicate with your Grant Manager and
Budget Analyst frequently
Follow-up with vendors to ensure invoices are
received timely
Review the encumbrance report provided by F&A
to ensure accuracy
32
DOING BUSINESS WITH
MINORITY BUSINESS
ENTERPRISES
Christina Harrell
Contract Administrator
Agency for Workforce Innovation
33
Minority Requirement

When contracting the first thought
should be “Is there a minority
business that can provide the goods
or services that I’m about to
purchase?”
34
What is a Certified Minority?

Business that has been certified through the Department of
Management Services, Office of Supplier Diversity, as a certified
minority business enterprise for the purposes of doing business
with the state.

What is a Minority Business?
– Businesses owned by:
»
»
»
»
»
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H -African American
I - Hispanic American
J - Asian/Hawaiian American
K - Native American
M - American Woman
W – Service Disabled Veteran
– Must be domiciled in FL to be eligible to become a Certified
Minority Business Enterprise.
35
How Do I Find a Minority
Company?

Certified Minority Vendor On-Line
Directory
– https://vendorstrator.dms.myflorida.com/directory
Contact Purchasing for Assistance
 Attend the AWI Purchasing & CMBE
Monthly Meeting held on the 4th
Wednesday in Room B-49

36
Sample Purchasing Types Where
Minority Vendors May Be Utilized
Contracting/Subcontracting
 Advertising
 Printing
 Office Furniture
 Travel

37
How Do I Report My Minority
Subcontracting Dollars?

The CMBE Subcontractor Expenditure Report is to be
utilized by the Contract Manager as a reporting
mechanism for all subcontractor dollars.
http://www.floridajobs.org/generalservices/Certified%20Minority%20Business%20SubContractor%20Expenditure%20Report%20Form.xls

This form is to be submitted to the MBE Coordinator
for the Agency (Christina Harrell) via e-mail to:
[email protected] no later than the 5th of
each month.
38
How Can I Exceed Last Year’s
Minority Expenditures
Monitor Monthly Reports in FLAIR/FIS.
 Ensure STC purchases are completed with a
Certified MBE Authorized Reseller, if
applicable.
 Ensure your office is using a CMBE Travel
Agent vs. going direct.
 Submit monthly adjustments to the CMBE
Coordinator to receive proper credit for
miscoded expenditures.
 Contact Purchasing for Assistance.
39

Agency Minority Reporting
90 Day Spending Plans
 Quarterly 3rd Tier Adjustments – WFI,
RWBs and ELCs
 Monthly Agency Contractor/Subcontracting
2nd Tier Adjustments
 Annual Small Business Participation Plan

40
LEGAL’S ROLE IN
PROCUREMENT AND
CONTRACT
ADMINISTRATION
Mike Marschall, Attorney
General Counsel
Agency for Workforce Innovation
245-7155
41
AWI OFFICE OF GENERAL
COUNSEL (OGC)
Contacts:
 Rosa McNaughton, General Counsel
All areas; 245-7150
 Jim Landsberg, Deputy General Counsel
All areas & Workforce Services; 245-7156
 John Perry, Assistant General Counsel
UC Services; 245-7152
 Kristin Harden, Assistant General Counsel
Early Learning; 245-7161
42
WHAT IS A CONTRACT?
“An agreement between two or more parties
creating obligations that are enforceable or
otherwise recognizable as law.” Black’s
Law Dictionary.
43
WHAT IS A CONTRACT?
(continued)
» Agreement and obligations – means a
set of promises exchanged between the
parties.
» Enforceable – means that if a party fails
to do what they promised to do
(breach), a court of law will enter an
order to remedy the breach, i.e., make
the offended party whole.
44
WHAT IS A CONTRACT?
(continued)
For a contract to be enforceable, the parties must have
reached a meeting of the minds, or in other words, agree on
the same terms, conditions, and subject matter.
Therefore, contracts must be clearly written and must
clearly communicate the terms and conditions, i.e.,
obligations; promises.
The terms, conditions, and obligations must be consistent
throughout the document or an explanation given as to why
they are not and which controls (i.e., order of precedence
list).
45
WHAT IS A CONTRACT?
(continued)
Contracts also include:
» Grants.
» Direct orders (formerly known as
purchase orders).
46
WHAT IS A CONTRACT?
(continued)
Each Contract is Unique
» The results of legal review of one contract do not
automatically translate to another contract – even
the same contract year to year.
» What applies in one situation does not necessarily
mean that the same will apply in another situation.
» Each contract must be written with the
circumstances of the specific procurement in mind
and tailored to that situation.
47
THE ROLE OF THE OGC IN THE
PROCUREMENT/CONTRACT
PROCESS
»
To provide legal advice when questions
arise during the procurement or contract
process.
Purchasing and program areas are
encouraged to contact the OGC early in
the process when questions arise, but may
contact the OGC at any time during the
process.
48
THE ROLE OF THE OGC IN THE
PROCUREMENT/CONTRACT
PROCESS (continued)
»
To review procurement actions for legal
sufficiency. For example, the OGC will
review: ITBs, RFPs, RFQs, ITNs, SSs
»
To review contracts for legal sufficiency.
49
THE ROLE OF THE OGC IN THE
PROCUREMENT/CONTRACT PROCESS
(continued)
Legal Review Includes:
» Determination that the procurement document
or contract contains provisions required by
federal and state law.
» Determination that the contract is legally sound,
legally enforceable, and legally defensible in
order to protect the interests of the Agency and
reduce risk to the Agency.
50
THE ROLE OF THE OGC IN THE
PROCUREMENT/CONTRACT
PROCESS (continued)
The OGC does not make determinations or decisions regarding certain
areas but may question or make recommendations regarding the following:
»
»
»
»
»
»
»
A determination as to whether the purchase is the best buy.
How long the term of the contract should be.
Deliverables or the schedule for their delivery.
Cost Price analysis.
What a program area needs, what best suits the program needs.
When invoices should be submitted or detail of invoices.
While grammatical and typographical errors may be caught, this is not
a primary purpose of legal review. Purchasing and program areas are
responsible for proofing their own documents.
51
Agency Contracts
Components of the Agency Contract:
» The Agency Core;
» The Scope of Work (Attachment 1 to the Core)
written by the program area; and
» Other Attachments as required or needed.
52
Agency Core Contract
»
»
»
The standard core contract developed by the
Agency for use in procurements requiring a two
party contract. Developed by the OGC, and may
be downloaded from the Purchasing intranet site.
The core contract is a template containing
standard, general contract provisions that are
required in most contracts. (Any provisions not
applicable or changed should be done through the
Scope of Work.)
The core contract is a protected template with
fields to be filled in as appropriate.
53
Agency Core Contract
(continued)
3 Versions of the Agency Core Contract
»
»
»
Vendor Core Contract (11/18/09)
Sub-Recipient Procured (11/06/09)
Sub-Recipient Exempt Procured (11/06/09)
Most recent version date is located in the lower left
hand corner of core contract; always use most recent
version.
54
Agency Core Contracts
Determining Vendor vs. Sub-recipient Relationship
»
To determine which core to use, you must first
determine if there is a vendor or sub-recipient
relationship.
»
Federally Funded Projects:
Utilize Agency Vendor vs. Sub-recipient
check list – available on the Purchasing
intranet webpage.
55
Agency Core Contracts
(continued)
Determining Vendor vs. Sub-recipient Relationship (continued)
Federally Funded Projects (continued)
Vendor Indicators
»
»
»
»
»
Provides the goods and services within normal business operations.
Provides similar goods or services to many different purchasers.
Operates in a competitive environment.
Provides goods and services that may be ancillary to the operation of
a program.
Is not subject to the Federal compliance requirements of the federal
program.
(Source: 29 C.F.R. 99.210 (c) (1)-(5))
56
Agency Core Contracts
(continued)
Determining Vendor vs. Sub-recipient Relationship
Federally Funded Projects (continued)
Sub-recipient Indicators
»
»
»
»
»
Determines eligibility.
Has its performance measured against the objectives of the
program.
Has responsibility for programmatic decision-making.
Has responsibility for adherence to applicable federal program
compliance requirements (for example, regulations).
Uses funds to carry out a program of the organization as
opposed to providing goods or services for a program.
(Source: 29 C.F.R. 99.210 (b) (1)-(5))
57
Agency Core Contracts
(continued)
Determining Vendor vs. Sub-recipient Relationship
(continued)
State Funded Projects:
»
Must use Department of Financial Services
Florida Single Audit Act Checklist, Form # DFSA2-NS, July 2005.
»
Use of this form is required by Rule 69I-5.006,
Florida Administrative Code.
58
Agency Core Contracts
(continued)
Determining Vendor vs. Sub-recipient Relationship
(continued)
Once the vendor vs. sub-recipient relationship has
been identified, use the appropriate Agency Core
Contract, i.e., Vendor Core, Sub-recipient Procured
Core, or Sub-recipient Exempt Procured Core.
59
Agency Core Contracts
(continued)
Vendor Core Contract
» To be used when:
- There is a vendor relationship. For example,
Contractor is providing 100,000 widgets.
» Requires use of:
- Attachment 1 (Scope of Work);
- Attachment 2 (Certifications); and
- ARRA Supplemental Provision (if applicable).
60
Agency Core Contracts
(continued)
Sub-Recipient Procured
»
To be used when:
– There is a sub-recipient relationship. For example, the
contractor is running a program, determining eligibility,
enrolling students; and
– The purchase was procured. For example, an RFP was used
to obtain proposals from several entities.
»
Requires the following attachments:
– Attachment 1, “Scope of Work”
– Attachment 2, “Certifications”
– Attachment 3, “Assurances”
– Attachment 4, “Audit Requirements”
– ARRA Special Conditions, if applicable
61
Agency Core Contracts
(continued)
Sub-Recipient Exempt-Procured
» To be used when:
– There is a sub-recipient relationship; and
– The purchase was exempt from procurement requirements. For
example, when the contractor is statutorily exempt, such as a
university that is a sub-recipient.
» Requires the following attachments:
– Attachment 1, “Scope of Work”
– Attachment 2, “Certifications”
– Attachment 3, “Assurances” and
– Attachment 4, “Audit Requirements”
– ARRA Special Conditions, if applicable
NOTE: Attachment 1, Scope of Work, does not include the language
incorporating the solicitation documents. This is because there will
be no solicitation documents because there was no procurement. 62
Agency Core Contracts
(continued)
Core Contract Template Fields
1. Contract # - provided by purchasing.
2. Contractor Name – insert.
3. Type of Contract – drop down menu with
following options: fixed price, fixed rate, cost
reimbursement, fixed price/cost reimbursement,
and fixed unit price.
63
Agency Core Contracts
(continued)
Core Contract Template Fields (continued)
4. Begin date of contract – insert month, day, year.
5. End date of contract – insert month, day and year.
6. Contract amount – insert.
64
Agency Core Contracts
(continued)
Core Contract Template Fields (continued)
7. Contract Renewal Term – insert (must be 1 of
the following: (a) for a period not to exceed 1
year; (b) for a period not to exceed 2 years; (c) for
a period not to exceed 3 years; (d) for a period not
to exceed the original term of the Contract; or (e)
may not be renewed. This provision should also
explain how the contract may be renewed, e.g., for
3 one year terms.
65
Agency Core Contracts
(continued)
Core Contract Template Fields (continued)
8. Payee & Contract Manager contact information
– insert.
9. Total number of pages – insert with total
number of pages including attachments.
10. Signatory information – insert.
66
Agency Core Contracts
(continued)
Core Contract Template Fields (continued)
11. Contractor Federal Employer Identification
Number – insert.
12. Reference to solicitation document – insert
appropriate ITB, RFP, RFQ, or SS #.
13. Scope of Work – insert tailored scope of work.
67
Agency Core Contracts
(continued)
Scope of Work
Attachment 1 to core contract.
Prepared by the program area.
Contents may include but are not limited to:
Deliverables
The manner in which deliverables are to be provided
Location where work is to be performed
Timeline
Performance Measures
Reporting/Monitoring requirements
Method of Payment
Liquidated Damages
Special provisions
How to draft a scope of work and the required contents will be presented later.
68
Agency Core Contracts
(continued)
Other Attachments
» Certifications (Attachment 2)
– Required for all contracts
Debarment and Suspension
Lobbying
Drug Free Workplace
Nondiscrimination & Equal Opportunity
Certification Regarding Public Entity Crimes
69
Agency Core Contracts
(continued)
Other Attachments (continued)
» Assurances (Attachment 3)
– Required for all sub-recipients.
– Federal law requires that the sub-recipient give
assurances that it will comply with certain federal
laws. These include laws against discrimination,
laws limiting political activities when the contract is
funded with federal money, safety standards, fair
labor standards, environmental laws, and
compliance with controlling OMB Circulars
regarding audits.
70
Agency Core Contracts
(continued)
Other Attachments (continued)
» Audit Requirements (Attachment 4)
– Required for all sub-recipients
– Details audit requirements for federally and state
funded contracts.
– Details Certain Financial Reporting Requirements
71
Subcontracting by the Contractor
»
Allowed only with prior approval of the agency.
»
Anticipated subcontract agreements known at the time of
proposal submission and the amount of the subcontract must be
identified in the proposal. If a subcontract has been identified at
the time of proposal submission, a copy of the proposed
subcontract must be submitted to the agency.
»
No subcontract that the contractor enters into with respect to
performance under the contract shall in any way relieve the
contractor of any responsibility for performance of its contract
responsibilities with the agency.
»
The agency reserves the right to request and review information
in conjunction with its determination regarding a subcontract
request.
»
The use of minority subcontractors is strongly encouraged. (See
72
Minority Subcontract Report Form Attached).
CONDUCT
»
Integrity and public confidence in a competitive
procurement process is essential, and
»
As a state employee involved in the procurement
process, you must maintain complete
independence and impartiality in dealings with
vendors, both in fact and appearance.
73
CONDUCT (continued)
Always remember to follow statutes and regulations
regarding ethics in procurement. For example,
» Section 112.313(2), F.S., Solicitation or acceptance of
gifts.
» Section 112.313(3), F.S., Doing business with one’s
agency.
» Section 112.313(4) F.S., Unauthorized compensation.
» Section 112.313(6) F.S., Misuse of public position.
» Section 112.313(7), F.S., Conflicting employment or
contractual relationship.
» Section 112.313(8), F.S., Disclosure or Use of Certain
Information.
74
CONDUCT (continued)
Section 112.3148, F.S., Prohibiting:
» a procurement employee for the state from soliciting any gift
from a political committee, committee of continuous existence,
lobbyist who has lobbied his or her agency within the past 12
months, or the partner, firm, employer, or principal of such a
lobbyist;
» a procurement employee for the state from knowingly accepting,
directly or indirectly, a gift worth over $100.00 from such a
lobbyist, from a partner, firm employer, or principal of the
lobbyist, or from a political committee or committee of
continuous existence. 112.3149:Prohibits a procurement
employee for the state from soliciting an honorarium which is
related to his or her public office or duties; and
» a procurement employee for the state from knowingly accepting
an honorarium from a political committee, committee of
continuous existence, lobbyist who has lobbied the person’s
agency within the past 12 months, or the partner, firm,
employer, or principal of such a lobbyist.
75
CONDUCT (continued)
»
Make decisions based upon the law and the
best interests of the agency and the public.
»
Disregard personal relationships and
preferences, and avoid personal gain.
»
Act in ways you would be comfortable
seeing in the press, discussing with your
family, and defending before a judge.
76
CONCLUSION
When in doubt…
contact the Office of General Counsel
at
245-7150
77
WRITING THE CONTRACT
Laura I. Jennings
Purchasing Manager
78
Contractual Services

s. 287.058(4), F.S. – states that every procurement
of contractual services in excess of Category Two
($25,000) threshold shall be evidenced by a
written agreement or purchase order
– Internal Agency Threshold


$25,000 but <$50,000 requires MFMP Direct Order
>$50,000 requires a Two-Party Written Agreement
– One exception – State Term Contracts
Note: Agencies are allowed to use the PCard for
contractual services direct billings that do not exceed
$75,000 in a State fiscal year
79
WRITING THE CONTRACT
Basic Core Contract Layout
 Attachment 1 Recommended Format for the
Statement of Work.
 Include Performance Specifications.

– Measures
– Definition
– Measurement Methodology

Include Method of Payment
80
Attachment 1
(Statement of Work)

Services to be Provided (What)

Manner of Service Provision (How)

Method of Payment (How and When)

Special Provisions (Any additional
clauses that were not previously
addressed in the core contract,
solicitation or Attachment 1)
81
A. Services to be Provided
1 Definition of Terms
a) Contract Terms
b) Program or Service Specific Terms
2 General Description
a)
b)
c)
d)
General Statement
Authority
Scope of Service
Major Program Goals
3 Service Recipients
a)
b)
c)
d)
General Description
Recipient Eligibility
Recipient Determination
Contract Limits
82
B. Manner of Service Provision
1) Service Tasks
2) Staffing Requirements
a)
b)
c)
d)
Staffing Levels
Professional Qualifications
Staffing Changes
Subcontractors
3) Service Location & Equipment
a) Service Delivery Location
b) Service Times
c) Change in Location and Times
d) Equipment
83
B. Manner of Service Provisions
Continued….
4) Deliverables
a) Service Unit
b) Reports
c) Records and Documentation
5) Performance Specifications
a) Outcomes and Outputs/Accountability
-
Outcomes: i.e., reductions in adverse conditions, scores, etc.
Outputs: i.e., specific number of activities that need to be
completed.
b) Standards Definitions
c) Monitoring and Evaluation Methodology
d) Performance Definitions
84
B. Manner of Service Provisions
Continued….
6. Provider Responsibilities
a) Provider Unique Activities
b) Coordination with Other Providers and/or
Entities
7. Agency Responsibilities
a) Agency Obligations
b) Agency Determinations
85
CONTRACT DEVELOPMENT AND
REVIEW PROCESS
Laura Jennings
Purchasing Manager
Agency for Workforce Innovation
86
Contract Development

Section Two, Part I of the Purchasing and
Contracting Procedures Manual
– Contract Development Process
» Basic Core Contract
» Scope of Work
» Certifications
» Other Attachments
– Types of Contracts
– Contract Review, Approvals, Execution, Distribution
and File Set Up
87
Review & Approval Process

s. 287.057 (19), F.S. – Contractual Services >$50,000
– Each agency shall establish a review and approval
process for all contractual services contracts costing
more than the threshold amount provided for in
s.287.017 for Category Three which shall include but
not be limited to:
 Program
 Financial, and
 Legal
review and approval. Such review and approvals shall
be obtained before the contract is executed.
88
Contract Routing Review Process
Program Area
 Purchasing Manager
 IT Manager, if applicable
 Grant Manager
 Budget Manager
 General Counsel
 Executive Management Level Authority

89
AMENDMENTS, RENEWALS
AND EXTENSIONS
90
Contract Amendments

There are two types of contract amendments:
– Those that result in a Minor Revision
» A technical change that does not alter the contract objectives

Examples
– Misspelled words
– Word omissions
– Transposed numbers
– Those that result in a Major Revision
» A major revision is a substantive change to the contract.

Example
– Budget Modification
– New Clause
– Change in timeframes for completing objectives
91
Processing a Minor Revision
Make a pen and ink change to the contract.
 All signers on the original contract must
initial and date each change.
 Never “white out” or scratch out” text;
simply draw a single line through the text.
The original language must be legible.

92
Processing a Major Revision

Requires a Contract Amendment.
– An amendment is a document which makes
substantive changes to any part of an executed
contract. A request to amend a contract may be
initiated by either the Agency or the contractor. For
example….
» Method of Payment
» Time period of the contract
» Cost of Services
» Services to be delivered.
93
Development of an Amendment

Meet with the contractor to discuss any
proposed changes
– If the contractor initiated the request, please have
them submit the request in writing.
– Determine why the contract needs to be changed;
changes should only be made when there is
sufficient justification for doing so.
– Assess the implications of the proposed change on
the delivery of services, service units, cost of
services, the ability of the contractor to render
quality services, and the effect the change will have
on the clients served by the contractor.
94
Developing an Amendment
Continued….
Conduct a cost/price analysis to justify
changes in contract amount.
 Draft an amendment based upon
amendment format.

95
Amendment Review Process

Amendments must go through the same review process
as contracts.
– Complete the Contract Review Form.
– Attach draft copy of amendment for review and approval.
– Attach copy of previously executed amendments and a copy
of the executed original contract.

Remember:
–
–
–
–
An amendment may not be retroactive.
Expired contracts may not be amended.
Amendments must be executed prior to the effective date.
Amendments are to be signed by original contract signers.
96
RENEWALS
97
Contract Renewals

s. 287.057(14)(a), F.S., states:
– Contingent upon satisfactory performance evaluation
– Subject to the availability of funds.”

s.60A-1.048(b), F.A.C., states:
– Justification that the renewal is in the best interest of
the State
– Maintain a copy of the justification in the contract file
– Contingent upon satisfactory performance evaluation
– Authorized by mutual agreement in writing

Purchasing and Contracting Procedures Manual
– Page 86 incorporates the requirements listed above
98
Renewal Performance Evaluation

See revised Renewal Template, dated
4/18/09
http://www.floridajobs.org/forms/Renewal_Boilerplate.doc
99
Contract Renewals




Contracts for commodities or contractual services
may be renewed on a yearly basis for a period up
to 3 years after the original contract, or for a
period no longer than the term of the original
contract, whichever is longer.
Renewal language must be included in the original
contract (and bid/proposal/reply)
Renewal is subject to same terms and conditions
of the original contract.
Renewal must be executed before the expiration
date of the contract.
100
Renewal Exceptions

A Renewal may not be processed for the
following contracts:
– Contracts resulting from an emergency
procurement.
– Single Source procurement contracts.
– Contracts procured competitively if the costs of
contemplated renewals was not included in the
initial ITB, RFP or ITN.
101
Processing a Renewal




Complete, sign and date the Contract Routing Review
Sheet.
Do not change contract start date, only update the ending
date.
Attach draft copy of renewal amendment and renewal
performance evaluation to a copy of the fully executed
contract, along with a copy of the vendor vs. sub-recipient
checklist, and any previous amendments/renewals and
forward to Purchasing (Contract Administrator) for agency
review and approval.
REMEMBER: Renewals must be executed prior to the
expiration date of the original contract.
102
EXTENSIONS
103
Contract Extensions
An extension is an increase in the length of
the contract time period. It is processed by
preparing an amendment.
 An extension does not allow for an
expansion of the scope of services.

104
Reasons for Extending a Contract
The Agency or the Contractor under
estimated the time necessary to complete
the contract.
 Arrival of a crucial piece of equipment
needed to complete a task is delayed.
 Legitimate delay in contract start-up date
results in unmet contract objectives and
funds not being fully expended by the
contract expiration date.

105
Conditions of Contract Extensions




Amendment for extension must be executed
before the contract expires.
Extension period shall not exceed six months.
Extended contract subject to same terms and
conditions of initial contract.
Extension granted only once, unless failure to
meet the criteria set forth in the contract for
completion of the contract is due to events beyond
the control of the contractor.
106
CONTRACT MANAGEMENT
Laura Jennings
Purchasing Manager
Agency for Workforce Innovation
107
Who is a Contract Manager?

Chapter 287.057(15), F.S., provides that
“For each contractual services contract, the
Agency shall designate an employee to
function as a contract manager who shall be
responsible for negotiating, administering,
monitoring and enforcing the terms and
conditions”.
108
Roles and Responsibilities









Enforcing the terms and conditions of the contract.
Carrying out the preparations for contracting.
Developing the Scope of Work (SOW).
Developing evaluation tools for bid analysis.
Negotiating contract, amendments, etc..
Reviewing and approving invoices.
Monitoring provider’s performance and corrective action
plans, as necessary.
Maintains a comprehensive Contract Manager File.
Performing contract close out procedures.
109
Monitoring Responsibilities
Compliance with Terms and Conditions,
 Getting what we pay for,
 Track fiscal responsibilities (are funds being
used appropriately),
 Detect non-compliance, problem resolution,
 Corrective Action Plans, and follow-up,
 Acceptable level of services is being
provided

110
Monitoring Plan


Every Contract Manager is required to establish a written
Contract Monitoring Plan, and it requires their
Supervisor’s review and approval
Written Plan should include the following:
– Periodic Reporting
– Contract Deliverables by On-site Reviews and Observations
» Develop a checklist when deliverables are due (i.e., insurance
certificates)
» Minimum annual review
–
–
–
–
–
Client Surveys
Other periodic contact and on-going monitoring
Review of Audit Report
Review and approval of invoice payments
Signed Statement of Independence
111
Contract Closeout Process
Begin 60 days prior to contract expiration.
 Documents Success or Failure.
 Reference point for future procurements.
 Complete the AWI Contract Manager’s
Contract Closeout Guide check list.

http://www.floridajobs.org/forms/AWI_Contract_Closeout_Guide.doc
112
What is the Contract Manager File?
A tool used by the Contract Manager to
keep pertinent information related to a
contract in a logical and coherent manner.
 The files are maintained for a period of 6
years following contract closeout or
resolution of pending action.

113
Purpose of Contract Manager’s File




State law requires that a file be maintained for
every contract.
Ensure that documentation exists to protect the
agency, as well as, to clarify events, should a
protest, audit or other situation arise.
Provides pertinent information related to a
contract.
Provides required documentation on decisions and
events related to the contract.
114
Contract Manager’s File

Consists of two sub-files:
– The procurement file: The procurement file contains all
documentation and information regarding the providers
selection process before the contract is executed.
– The contract file – The contract file contains all
pertinent information related to a contract from the time
it is awarded until contract closeout.
– General Services keeps the AGENCY CONTRACT
ADMINISTRATOR’S originals. However, each
Contract Manager should also maintain copies for their
records.
115
Contract Manager’s File
File should be neat, complete and organized. The following table is a DFS example in a multi-leaf file
folder organized into six main sections and the respective, relevant contents.
#
Section Title
Contents
1
Contract Record
Quick reference info (provider name, address, phone, email); contact sheet detailing
agreement history (meeting notes, phone contact documentation); calendar showing all
reporting dates, payment dates, renewal dates, deliverables schedules.
2
Authoritative
Original agreement & amendments; Single Audit Act documentation; Florida Statutes,
Florida Administrative Code, department rules, appropriation language;
subcontracts/subgrants and associated ITB/RFP/ITN document; provider
certifications.
3
Payment History
Spreadsheet with running payment balance, warrant copies, voucher copies.
4
Payment Request
Invoices, deliverables schedule, deliverables documentation.
5
Verification
Site visit documentation, independent documentation supporting deliverables, expense
validation, audit reports & findings resolution, reconciliation of audit report expenses
versus invoiced expenses, client surveys.
6
Correspondence
All correspondence documentation – letters, email copies, vendor-related media
copies, etc.
116
Resources












Florida Statutes
Florida Administrative Code
AWI Agency Addressed Memoranda
DMS State Purchasing Memoranda
DFS Reference Guide to State Expenditures
DFS CFO Memoranda
DFS Best Practices for Contract and Grant Management
OMB Circulars
MyFloridaMarketPlace Tool Kit
Internet
AWI Intranet
Contract Monitoring Tool
117
PROGRAMMATIC MONITORING
John Herndon
Unemployment Compensation Services
118
Monitoring Overview
The Need for Monitoring
 Types of Monitoring
 Elements of Monitoring
 Monitoring Methods and Tools
 Programmatic Monitoring
 Contract Monitoring

119
The Need for Monitoring


Monitoring—what is it? An objective, on-going and reasonable
evaluation that occurs throughout the contract period to ensure
compliance with applicable laws, rules, regulations, policies,
and contractual provisions.
Why monitor?
– It is required.
– Ensures contractor’s compliance with the terms and conditions of the
contract and applicable laws, rules, and regulations.
– Ensures Program area is getting what it needs and is only paying for
what it contracted for.
– Enables early detection/prevention of non-compliance by identifying and
resolving potential problems through constructive, timely feedback.
– Ensures necessary, timely, and appropriate corrective actions are taken.
– Ensures fiscal responsibilities--costs are allowable, allocable and
documented.
120
Types of Monitoring

Programmatic Monitoring
– Evaluates the contractor’s performance in meeting program areas’
contract scope of work.
– Evaluates contractor performance quality.
– Establishes historical data for potential future contracts with the
Contractor.

Contract Monitoring
– Ensures Agency compliance with federal and state requirements.
– Provides Agency oversight and ensures best practices, concerns
and problems are shared throughout the Agency.
– Verifies payments are within the limits of the contract.
121
Elements of Monitoring






Maintaining well documented, current contracting files.
Identifying, reviewing, and analyzing Contractor reports.
Tracking project milestones and timelines, contractor
performance, and costs.
Reviewing, approving, processing, and tracking invoices.
Reconciling invoice payments.
Monitoring Plans: A formalized means of defining
appropriate and specific monitoring methods. Determined
by the type of contract, level of risk, amount of award,
complexity of program, etc.
– Tailor monitoring plans and activities to the particulars of
each contract.

Documentation!
122
Monitoring Methods and Tools

Determine monitoring methods and tools.
– May be impacted by the type of contract or funding and
may include documentation, observations, surveys,
interviews, tests, etc.
– Determine the nature, timing and extent of monitoring.
» Program complexity: Complex programs have a higher risk of
non-compliance and require more rigorous monitoring.
» Vendor/Sub-Recipient Risk: Prior history, personnel changes,
new systems and the status of the contract relationship
impacts the level and frequency of monitoring.
» Amount of Contract Award: The larger the contract award, the
greater the risk and need for more rigorous monitoring.
– Identify the tools to be used to measure and assess
performance and compliance.
123
Programmatic Monitoring

Programmatic Monitoring deals with contract and program
compliance requirements.
– Should answer the question “are we getting” what we contracted
for?
– Includes both primary contractor and any sub-contractors.



Evaluates and documents Contractor/sub-contractor
performance.
May be met by making on-site visits, reviewing contractor
documentation, conducting periodic or client reviews,
personal observations, conducting tests, reviewing
state/agency audits, or any other activities that provides
assurances of satisfactory contractor performance and
project requirements are met as scheduled.
Must be documented.
124
METHODS OF PROGRAMMATIC
MONITORING


Documentation – may be written reports from the
contractor, acceptance tests, client surveys, audit
reports, invoices, e-mails, letters, and other forms
of documentation etc.
Observation – includes on-site reviews to the
contractors’ location or other locations where the
services are being provided to evaluate progress,
processes, and documentation first hand.
125
Tips for Effective Programmatic
Monitoring







Determine monitoring requirements, methods, tools, etc.. Ideally, this
should be done during the RFP and contract development process.
Maintain regular, effective contractor dialogue and review contractor
performance and progress on a regular basis.
When possible, conduct on-site reviews and interview contractor staff
to determine their understanding or contractual requirements, review
key documentation and observe operations.
If applicable, conduct client surveys to determine service delivery
quality and satisfaction and require the contractor to resolve
complaints.
Ensure the contractor complies with the AWI Program standards,
regulations and contract provisions.
Document monitoring results and ensure that appropriate corrective
action is taken for any deficiencies.
Follow-up to ensure that deficiencies have been timely and
satisfactorily corrected .
126
Summary of Programmatic
Monitoring
The Contract Manager is responsible for the
ongoing management of the contract.
 Maintaining a well organized contract
managers’ file is a reflection of you.
 Effective programmatic monitoring ensures
your contracts and the services meet your
program’s objectives.

127
CONTRACT MONITORING
Financial Management Systems
Assurance Section
Henrietta “Penny” Lee
(FMSAS)
128
Contract Monitoring









Why do we have contract monitoring?
What information will be reviewed?
How do we complete the contract monitoring process?
Who will be monitored during FY09-10?
When will the monitoring take place?
Where will the monitoring take place?
08-09 Observations
08-09 Overview – Findings.
Other Suggested Best Practices.
129
Why do have contract
monitoring?



AWI is charged by state and federal regulations
with oversight of the funds it expends for
contracted services.
Contract monitoring encompasses administrative
and performance standards expected to be met by
the Agency’s contractors according to their
contracts and applicable federal & state rules,
regulations and instructions.
AWI’s contract monitoring procedures are subject
to audit by state and federal agencies.
130
What information will be Reviewed?
Contract/Direct Order
 Scope of Work
 Invoices and invoice process.
 Other file documentation that supports “due
diligence” over the contract by AWI staff
 Other documentation outside of the contract
file. (AWI policy, program rules,
federal/state procurement instructions)

131
How do we complete the contract
monitoring process?






Entrance Meeting – Meet with program staff
Review the contract
Ensure the contract and contract file meet the minimum
federal, state and AWI’s procedure requirements
Ensure the scope of work and deliverables are met based
on contract language
Review the invoices to ensure they are paid within and
according to the terms and conditions of the contract
Ensure that expenditures were made in accordance with
applicable laws, rules and regulations; were authorized
by the agreement; were directly related to the project;
and were properly supported
132
How do we complete the contract
monitoring process? (Continued)








Identify and summarize testing results and any deficiencies
noted
Identify and summarize testing results and any best
practices found
Exit Conference on draft program summary report
Additional input from contract managers is required (if
needed) to perform any follow-up as we finalize test
results
Complete the AWI draft report
AWI management review and approval of report
Send out final approved report to program areas
Corrective action plan processing performed, if needed
133
Who will be Monitored
FY 09-10


AWI has a Monitoring Plan that assists in the
determination which Contracts will are selected to be
monitored.
Five contracts and four direct orders have been selected for
monitoring at this time.
– Three full contract monitoring process
– Two contract monitoring for ARRA only
– Four Direct Orders processes

AWI Management may make changes to this sample list.
134
When will the monitoring take
place?
Starting March 1, 2010 and completion is
targeted by June 30, 2010.
 Each Project Manager/Contract Manager
will be contacted by e-mail with more
information.

135
Where will monitoring take place?





Contract-related data request memos will be sent
to the program areas.
All testing material will be scheduled and data
items will be reviewed by FMSAS staff.
Question/Answer sessions are currently underway
with Project Managers or Contract Managers.
The review process continues from FMSAS
office.
Summary results are performed from our office.
136
08-09 Overview – Observations







Missing approval documentation in files
Subrecipient vs vendor checklist in the file but incomplete
Missing file information
Missing deliverable approval from file
Inconsistent or incomplete supporting documentation in
files
Contents of contract file incomplete and/or disorganized
See handouts
137
08-09 Overview – Findings




AWI could not provide a comprehensive twoparty contract listing.
An employee was conducting contract manager
duties but was not an AWI certified contract
manager.
AWI’s contract renewal process was not followed
as specified in the AWI’s policy and procedures
manual.
Contract Managers did not conduct the contract
close-out procedures.
138
08-09 Overview – Findings (Con’t)

Contract managers did not document payment
reconciliation to FLAIR (state accounting system)
in the contract files.
139
Other Suggested Best Practices




A checklist has been developed to ensure that the
contract renewal process has complete minimum
agency requirements.
A checklist has been developed to determine and
document the subrecipient vs vendor relationship
for all contracts.
Coordinate with other AWI staff as needed to
share guidance information, technical assistance or
other available reference materials.
Continue/expand management training for
contract/program staff.
140
American Recovery and
Reinvestment Act (stimulus)

Additional/enhanced monitoring will be required
in 2009-10 for grant funds disbursed under the
American Recovery and Reinvestment Act. We
anticipate additional monitoring requirements will
apply. We’re currently waiting on further
guidance and instructions from the federal
awarding agencies and OMB. We are advising
contract managers that have contract with stimulus
dollars, have there contract files and all pertinent
documentation readily available for monitoring
purposes.
141
QUESTION AND ANSWER
SESSION
142
Day Two
143
“Contract Management in Florida”
presented by
Walter Sachs, DCF Staff Director
Contract Administration
144
Thank you
145
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