1 AGENCY CONTRACT MANAGEMENT CERTIFICATION TRAINING February 2010.

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AGENCYAGENCYCONTRACT MANAGEMENT CONTRACT MANAGEMENT

CERTIFICATIONCERTIFICATIONTRAININGTRAINING

February 2010February 2010

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Welcome & IntroductionsWelcome & Introductions

Name, Program AreaName, Program Area

I am in this class because ….I am in this class because …. The best job I ever had was ….The best job I ever had was …. The worst project I ever worked on was ….The worst project I ever worked on was ….

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TRAINING SCHEDULETRAINING SCHEDULE

Day 1Day 1– Procurement and Contract Tracking System (PACTS)Procurement and Contract Tracking System (PACTS)

– Procurement MethodsProcurement Methods

– Role of the Information Technology Office Role of the Information Technology Office

– Role of Financial Services Role of Financial Services

– Doing Business with Minority Business EnterprisesDoing Business with Minority Business Enterprises

– Role of the General Counsel’s Office Role of the General Counsel’s Office

– How to Write ContractsHow to Write Contracts

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TRAINING SCHEDULE CONTINUED…….TRAINING SCHEDULE CONTINUED…….

Day 1 (continued)Day 1 (continued)– Contract Review ProcessContract Review Process

– Developing and Processing Contracts, Amendments Developing and Processing Contracts, Amendments Renewals and ExtensionsRenewals and Extensions

– Managing Contract FilesManaging Contract Files

– Programmatic & Contract MonitoringProgrammatic & Contract Monitoring

Day 2Day 2– ““Contract Management in Florida” presented by Walter Contract Management in Florida” presented by Walter

Sachs, DCF Staff Director, Contract Administration Perform Sachs, DCF Staff Director, Contract Administration Perform Examination ReviewExamination Review

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Organizational ChartOrganizational Chart

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Guiding Principles and ResponsibilitiesGuiding Principles and Responsibilities

Legality and EthicsLegality and Ethics Effective ServicesEffective Services EfficiencyEfficiency EconomyEconomy Fairness & Open CompetitionFairness & Open Competition DiversityDiversity

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AuthorityAuthority

AuthorityAuthority– Chapter 287, Florida StatutesChapter 287, Florida Statutes– Chapter 60A-1, Florida Administrative CodeChapter 60A-1, Florida Administrative Code

Other Related ReferencesOther Related References– AWI Purchasing Policy, 4.02 – “Purchasing and AWI Purchasing Policy, 4.02 – “Purchasing and

Contracting Procedures Manual”Contracting Procedures Manual”– DMS State Purchasing MemorandumsDMS State Purchasing Memorandums– Department of Financial ServicesDepartment of Financial Services

» Reference Guide for State ExpendituresReference Guide for State Expenditures» CFO MemorandumsCFO Memorandums» Agency Addressed MemorandumsAgency Addressed Memorandums

– Federal RegulationsFederal Regulations

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s. 287.001, F.S.- Legislative Intents. 287.001, F.S.- Legislative Intent

Ensure the following:Ensure the following:– Fair and open competitionFair and open competition

– Reduce the appearance and opportunity for favoritismReduce the appearance and opportunity for favoritism

– Inspire Public Confidence Inspire Public Confidence

– Awarded Equitably and EconomicallyAwarded Equitably and Economically

– Effective Monitoring MechanismsEffective Monitoring Mechanisms

– Uniform procedures are followedUniform procedures are followed

– Detailed Justification of the Agency DecisionsDetailed Justification of the Agency Decisions

– Ethical BehaviorEthical Behavior

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PROCUREMENT AND CONTRACT PROCUREMENT AND CONTRACT TRACKING SYSTEM TRACKING SYSTEM

(PACTS)(PACTS)OVERVIEWOVERVIEWLaura I. JenningsLaura I. Jennings

Purchasing ManagerPurchasing ManagerAgency for Workforce InnovationAgency for Workforce Innovation

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PACTSPACTS

WHY WAS IT CREATED:WHY WAS IT CREATED:– The PACTS database was created to track:The PACTS database was created to track:

» the process of the process of administering administering a contract from the a contract from the initial stages of identifying the program area need initial stages of identifying the program area need

» through the through the procurement procurement of a provider to deliver of a provider to deliver those commodities or contractual services, those commodities or contractual services,

» track the track the routingrouting of contract documents through the of contract documents through the agency review process, and agency review process, and

» toto document document the contract history (start/end dates, the contract history (start/end dates, increases/decreased, amendments, renewals, and increases/decreased, amendments, renewals, and extensions)extensions)

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Purpose of PACTSPurpose of PACTS

To assist the Agency in complying with applicable To assist the Agency in complying with applicable state and federal laws, rules and regulations.state and federal laws, rules and regulations.

To provide a resource to the Agency for To provide a resource to the Agency for proactively manage and track the history of proactively manage and track the history of Agency two-party contracts.Agency two-party contracts.

Program Areas have view access for tracking Program Areas have view access for tracking expiration datesexpiration dates

http://intra.awi.state.fl.us/pacts/

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METHODS OF PROCUREMENTMETHODS OF PROCUREMENT

Laura I. JenningsLaura I. JenningsPurchasing ManagerPurchasing Manager

Agency for Workforce InnovationAgency for Workforce Innovation

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Types of ProcurementTypes of Procurement Three Main TypesThree Main Types

– Small PurchasesSmall Purchases» Discretionary Discretionary

< $2,500 – Requires only one (1) quote< $2,500 – Requires only one (1) quote» Informal Informal

$2,500 - $14,999.99 – Requires two (2) or more quotes$2,500 - $14,999.99 – Requires two (2) or more quotes >$15,000 - $24,999.99 – Requires three (3) written quotes>$15,000 - $24,999.99 – Requires three (3) written quotes

– Non-CompetitiveNon-Competitive» Emergency PurchasesEmergency Purchases» DMS Authorized Agreements (STC, ACS & SPA)DMS Authorized Agreements (STC, ACS & SPA)» Single SourceSingle Source» ExemptExempt» Continuing EducationContinuing Education» PRIDE and RESPECTPRIDE and RESPECT

– Competitive Solicitations >$25,000Competitive Solicitations >$25,000» Invitation to BidInvitation to Bid» Request for ProposalRequest for Proposal» Invitation to NegotiateInvitation to Negotiate

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Procurement CycleProcurement Cycle

Identified NeedIdentified Need Specification DevelopmentSpecification Development Determine Method of ProcurementDetermine Method of Procurement Obtain Quotes or Conduct Formal Solicitation Obtain Quotes or Conduct Formal Solicitation Agency Selection & AwardAgency Selection & Award Contract Development (MFMP DO or Two-Party)Contract Development (MFMP DO or Two-Party) Delivery of ServicesDelivery of Services Invoice and PaymentInvoice and Payment Monitoring Contract PerformanceMonitoring Contract Performance Contract CloseoutContract Closeout

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Internal and External Internal and External RequirementsRequirements

ExternalExternal– DMSDMS

CSA TelecommunicationCSA Telecommunication

Single Source >$150,000Single Source >$150,000

– DFSDFS

– Council of Efficient Council of Efficient GovernmentGovernment

– TRWTRW

InternalInternal– Cost Price AnalysisCost Price Analysis

– Vendor vs SubrecipientVendor vs Subrecipient

– Conflict of InterestConflict of Interest

– IRA IRA

– OCO OCO

– Facility ServicesFacility Services

– Routing Process Routing Process

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Invitation to Bid – ITBInvitation to Bid – ITB

Commodity or service is easily identified;Commodity or service is easily identified; Bidders offer pricing based on set requirements Bidders offer pricing based on set requirements

(i.e., manufacturer, model, size, color, etc.);(i.e., manufacturer, model, size, color, etc.); Bidder qualifications and commodity/service will Bidder qualifications and commodity/service will

be compared to the requirements of the ITB, but be compared to the requirements of the ITB, but not to each other;not to each other;

Award will be made to the responsive and Award will be made to the responsive and responsible bidder offering the responsible bidder offering the lowest pricelowest price..

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Request for Proposal - RFPRequest for Proposal - RFP

Written determination why ITB is not practicable, Written determination why ITB is not practicable, to be approved.to be approved.

Defined scope of work with multiple solutions.Defined scope of work with multiple solutions. The vendor qualifications, experience and quality The vendor qualifications, experience and quality

of service are more important than price.of service are more important than price. Proposals will be compared to each other.Proposals will be compared to each other. Award to Respondent that receives the highest Award to Respondent that receives the highest

total points for technical and cost.total points for technical and cost.

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Invitation to Negotiate - ITNInvitation to Negotiate - ITN

■ ■ Scope of Work cannot be completely and accurately defined.Scope of Work cannot be completely and accurately defined. Two Step processTwo Step process

1.1. Evaluation Scoring/Ranking Highest to LowestEvaluation Scoring/Ranking Highest to Lowest a. Shortlisted Vendors Move Forward a. Shortlisted Vendors Move Forward

2. Negotiation Phase2. Negotiation Phasea. Negotiations are conducted to level the a. Negotiations are conducted to level the

playing fieldplaying field b. Responses are compared to each otherb. Responses are compared to each other c. Qualifications and quality of service may be c. Qualifications and quality of service may be

considered more important than priceconsidered more important than priced. Vendor is selected on “Best Value”d. Vendor is selected on “Best Value”

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INFORMATION TECHNOLOGY’S ROLE INFORMATION TECHNOLOGY’S ROLE IN PROCUREMENT AND CONTRACT IN PROCUREMENT AND CONTRACT

MANAGEMENTMANAGEMENT

Parker CapeParker CapeIT Contract ManagerIT Contract Manager


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ObjectivesObjectives

Discussion of Five Topics:Discussion of Five Topics: – Definition of Information TechnologyDefinition of Information Technology– Information Resource Authorizations (IRA)Information Resource Authorizations (IRA)– Security ConsiderationsSecurity Considerations– Early InvolvementEarly Involvement– Contract Review ProcessContract Review Process

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Information Technology DefinitionInformation Technology Definition

s. 282.0041(16), F.S., means “Information s. 282.0041(16), F.S., means “Information Technology” equipment, hardware, software, Technology” equipment, hardware, software, firmware, programs, systems, networks, firmware, programs, systems, networks, infrastructure, media, and related material used to infrastructure, media, and related material used to automatically, electronically, and wirelessly automatically, electronically, and wirelessly collect, receive, analyze, evaluate, process, collect, receive, analyze, evaluate, process, classify, manipulate, manage, assimilate, control, classify, manipulate, manage, assimilate, control, communicate, exchange, convert, converge, communicate, exchange, convert, converge, interface, switch, or disseminate information of interface, switch, or disseminate information of any kind or form. any kind or form.

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Information Technology DefinitionInformation Technology Definitioncontinued….continued….

EquipmentEquipment– Server/Terminal/Thin ClientServer/Terminal/Thin Client– Storage/Tape/Virtual TapeStorage/Tape/Virtual Tape– UPS/Surge Suppression/BatteriesUPS/Surge Suppression/Batteries– Firewalls/Infrastructure Equipment/VPNFirewalls/Infrastructure Equipment/VPN– Desktop/LaptopsDesktop/Laptops

SoftwareSoftware– Licenses/renewals/maintenanceLicenses/renewals/maintenance

ServicesServices– IT Consulting/Staff AugmentationIT Consulting/Staff Augmentation– Data CircuitsData Circuits

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Information Resource Authorization Information Resource Authorization (IRA)(IRA)

What is an IRA?What is an IRA? An IRA is a request for acquisition of information An IRA is a request for acquisition of information technology or services, including those procured technology or services, including those procured through a contract.through a contract.

Why an IRA?Why an IRA?It is the responsibility of the Information It is the responsibility of the Information Technology Unit to ensure that AWI is procuring Technology Unit to ensure that AWI is procuring information technology (hardware, software, information technology (hardware, software, services, etc.) that can integrate and interconnect services, etc.) that can integrate and interconnect with our existing IT systems and services and is with our existing IT systems and services and is consistent with AWI policies and Florida Statutes.consistent with AWI policies and Florida Statutes.

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Information Resource Authorization Information Resource Authorization (IRA)(IRA)

continued….continued…. A completed IRA Form must accompany all A completed IRA Form must accompany all

IT related acquisitions.IT related acquisitions. It is required via the Agency’s Information It is required via the Agency’s Information

Technology Purchasing Policy 5.01. Technology Purchasing Policy 5.01. (Revision Pending)(Revision Pending)

http://www.floridajobs.org/Policies/IT/itequip_%20purch_repairpolicy5.01.pdf

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Security ConsiderationsSecurity Considerations

Information System Security Plan (ISSP) Policy 5.02 Information System Security Plan (ISSP) Policy 5.02 ■■ Know Confidentiality RulesKnow Confidentiality Rules

– Adopted 11/06Adopted 11/06– http://intra.awi.state.fl.us/info_sec/index.htm

Security is EVERYONE’s responsibility!Security is EVERYONE’s responsibility!

Build security in from the beginningBuild security in from the beginning■■ Contract and bid language should contain security requirements Contract and bid language should contain security requirements ■■ Positions of Special Trust 1.08Positions of Special Trust 1.08

− − Reaffirmed 2/09Reaffirmed 2/09− − hthttp://www.floridajobs.org/policies/Director/Policy%201.08%20Special_Trust_Positions.pdf

■■ Always evaluate the risk of your decisions!Always evaluate the risk of your decisions!

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Early InvolvementEarly Involvement In any contract acquisition involving technology, bring IT into the In any contract acquisition involving technology, bring IT into the

process with you…..the earlier the better!process with you…..the earlier the better!– All new projects require a project definition form to be submitted to your All new projects require a project definition form to be submitted to your

IT Application ManagerIT Application Manager» Carlton Bassett – Workforce ServicesCarlton Bassett – Workforce Services» Patrick Greene – AdministrationPatrick Greene – Administration» Jill Conley – Office of Early LearningJill Conley – Office of Early Learning» Allen Northrup – Unemployment CompensationAllen Northrup – Unemployment Compensation

Things to considerThings to consider– Long term, recurring cost of IT support staff (5 to 10 Years)Long term, recurring cost of IT support staff (5 to 10 Years)– Licensing fees and renewalsLicensing fees and renewals– Mandatory upgrades (hardware and software)Mandatory upgrades (hardware and software)– Total cost of ownershipTotal cost of ownership– Existing Agency infrastructureExisting Agency infrastructure– Warranty periodWarranty period

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IRA Submission ProcessIRA Submission Process

Begin IRA Submission

Contact Application Manager &

Complete Project Definition Form

Application Manager Walk

Through Process with Business

Unit

Yes

IT Reviews IRA

Will purchaseconsume 200 or more hours of IT resource

time?

Enter “Service Request”

Process IRA

End IRA Submission

Submit IRA

No

No

No

Yes

Is existing solution acceptable?

No

Yes

Is purchasecompatible with Agency

technology & Senate Bill 1892?

Does AWI have an existing solution?

Yes

Is there an alternate solution?

No

Yes

Terminate IRA Submission

IRA Submission

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FINANCIAL SERVICES ROLE IN FINANCIAL SERVICES ROLE IN PROCUREMENT AND CONTRACT PROCUREMENT AND CONTRACT

MANAGEMENTMANAGEMENT

Alisa RobersonAlisa RobersonDisbursements SupervisorDisbursements Supervisor


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The Disbursement Unit’s RoleThe Disbursement Unit’s Role Set up of the Contract number in FLAIRSet up of the Contract number in FLAIR Entry of the Encumbrance in FLAIR so spending and budget can be tracked Entry of the Encumbrance in FLAIR so spending and budget can be tracked

and verified by the program officesand verified by the program offices In accordance with CFO Memorandum #1 (2007-08) all contracts require DFS In accordance with CFO Memorandum #1 (2007-08) all contracts require DFS

review prior to the initial payment requestreview prior to the initial payment request

http://myfloridacfo.com/aadir/cm070801.pdf Submission of contracts to the Department of Financial Services (DFS) for a Submission of contracts to the Department of Financial Services (DFS) for a

pre-audit 10 days prior to the first request for payment being madepre-audit 10 days prior to the first request for payment being made Review of all payment requests to ensure compliance with terms of contract, Review of all payment requests to ensure compliance with terms of contract,

all applicable regulations and to request payment through DFSall applicable regulations and to request payment through DFS Maintenance of the original documentation of payments made through FLAIR Maintenance of the original documentation of payments made through FLAIR

(NOT those originating in MFMP)(NOT those originating in MFMP) Mail-out of warrants issued to the vendor/contractorMail-out of warrants issued to the vendor/contractor

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What F&A Needs From Contract What F&A Needs From Contract ManagersManagers

For all contractsFor all contracts::

– A copy of the completed, signed contract A copy of the completed, signed contract when executedwhen executed– The contract number referenced on any and all The contract number referenced on any and all

correspondence about your contractcorrespondence about your contract– A signed and dated Contract Summary Form accompanying A signed and dated Contract Summary Form accompanying

a signed and dated invoicea signed and dated invoicehttp://www.fldfs.com/aadir/summary_csa.htm

– Any accounting code changes (grant, org, etc.) or any Any accounting code changes (grant, org, etc.) or any warrant mailing/handling instructions at the time of invoice warrant mailing/handling instructions at the time of invoice processingprocessing

– Documentation to support the invoiceDocumentation to support the invoice» A detail of the charges, if summarized on the invoiceA detail of the charges, if summarized on the invoice» Reviewed to ensure it matches the contractual rates/feeReviewed to ensure it matches the contractual rates/fee

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What F&A Needs from Contract What F&A Needs from Contract Managers Managers (Continued)(Continued)

For contracts entered into MFMP:For contracts entered into MFMP:– The contract number included on the Requisition The contract number included on the Requisition at time of at time of

creationcreation– Reference to the contract number on the Invoice Reference to the contract number on the Invoice

Reconciliation (IR) if it’s not “chosen” at the time of Reconciliation (IR) if it’s not “chosen” at the time of requisitionrequisition

– All documents (contract, attachments, etc.) scanned and All documents (contract, attachments, etc.) scanned and attached to the Requisitionattached to the Requisition

– The Contract Summary Form scanned and attached on all The Contract Summary Form scanned and attached on all IRsIRs

– Additional supporting documentation scanned and attached Additional supporting documentation scanned and attached to the IR, as requested by DFS, especially if not on the to the IR, as requested by DFS, especially if not on the original Requisitionoriginal Requisition

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How Contract Managers Can Help How Contract Managers Can Help ThemselvesThemselves

Track all disbursements to ensure adequate Track all disbursements to ensure adequate contract balance and accurate encumbrancescontract balance and accurate encumbrances

Enter MFMP Change Orders for any permanent Enter MFMP Change Orders for any permanent changes in accounting codeschanges in accounting codes

Communicate with your Grant Manager and Communicate with your Grant Manager and Budget Analyst frequentlyBudget Analyst frequently

Follow-up with vendors to ensure invoices are Follow-up with vendors to ensure invoices are received timelyreceived timely

Review the encumbrance report provided by F&A Review the encumbrance report provided by F&A to ensure accuracyto ensure accuracy

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DOING BUSINESS WITH DOING BUSINESS WITH MINORITY BUSINESS MINORITY BUSINESS

ENTERPRISESENTERPRISES

Christina HarrellChristina Harrell

Contract AdministratorContract Administrator


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Minority RequirementMinority Requirement

When contracting the first thought When contracting the first thought should be “Is there a minority should be “Is there a minority business that can provide the goods business that can provide the goods or services that I’m about to or services that I’m about to purchase?”purchase?”

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What is a Certified Minority?What is a Certified Minority? Business that has been certified through the Department of Business that has been certified through the Department of

Management Services, Office of Supplier Diversity, as a certified Management Services, Office of Supplier Diversity, as a certified minority business enterprise for the purposes of doing business minority business enterprise for the purposes of doing business with the state.with the state.

What is a Minority Business?What is a Minority Business?– Businesses owned by:Businesses owned by:

» H -African AmericanH -African American» I - Hispanic AmericanI - Hispanic American» J - Asian/Hawaiian AmericanJ - Asian/Hawaiian American» K - Native AmericanK - Native American» M - American WomanM - American Woman» W – Service Disabled VeteranW – Service Disabled Veteran

– Must be domiciled in FL to be eligible to become a Certified Must be domiciled in FL to be eligible to become a Certified Minority Business Enterprise.Minority Business Enterprise.

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How Do I Find a Minority How Do I Find a Minority Company?Company?

Certified Minority Vendor On-Line Certified Minority Vendor On-Line DirectoryDirectory– https://vendorstrator.dms.myflorida.com/directory

Contact Purchasing for AssistanceContact Purchasing for Assistance Attend the AWI Purchasing & CMBE Attend the AWI Purchasing & CMBE

Monthly Meeting held on the 4Monthly Meeting held on the 4 thth Wednesday in Room B-49Wednesday in Room B-49

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Sample Purchasing Types Where Sample Purchasing Types Where Minority Vendors May Be Minority Vendors May Be

UtilizedUtilized Contracting/SubcontractingContracting/Subcontracting AdvertisingAdvertising PrintingPrinting Office FurnitureOffice Furniture Travel Travel

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How Do I Report My Minority How Do I Report My Minority Subcontracting Dollars?Subcontracting Dollars?

The CMBE Subcontractor Expenditure Report is to be The CMBE Subcontractor Expenditure Report is to be utilized by the Contract Manager as a reporting utilized by the Contract Manager as a reporting mechanism for all subcontractor dollars. mechanism for all subcontractor dollars.

http://www.floridajobs.org/generalservices/Certified%20Minority%20Business%20Sub-Contractor%20Expenditure%20Report%20Form.xls

This form is to be submitted to the MBE Coordinator This form is to be submitted to the MBE Coordinator for the Agency (Christina Harrell) via e-mail to:for the Agency (Christina Harrell) via e-mail to: [email protected] no later than the 5 no later than the 5thth of of each month.each month.

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How Can I Exceed Last Year’s How Can I Exceed Last Year’s Minority ExpendituresMinority Expenditures

Monitor Monthly Reports in FLAIR/FIS.Monitor Monthly Reports in FLAIR/FIS. Ensure STC purchases are completed with a Ensure STC purchases are completed with a

Certified MBE Authorized Reseller, if Certified MBE Authorized Reseller, if applicable.applicable.

Ensure your office is using a CMBE Travel Ensure your office is using a CMBE Travel Agent vs. going direct.Agent vs. going direct.

Submit monthly adjustments to the CMBE Submit monthly adjustments to the CMBE Coordinator to receive proper credit for Coordinator to receive proper credit for miscoded expenditures. miscoded expenditures.

Contact Purchasing for Assistance.Contact Purchasing for Assistance.

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Agency Minority ReportingAgency Minority Reporting

90 Day Spending Plans90 Day Spending Plans Quarterly 3Quarterly 3rdrd Tier Adjustments – WFI, Tier Adjustments – WFI,

RWBs and ELCsRWBs and ELCs Monthly Agency Contractor/Subcontracting Monthly Agency Contractor/Subcontracting

22ndnd Tier Adjustments Tier Adjustments Annual Small Business Participation PlanAnnual Small Business Participation Plan

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LEGAL’S ROLE IN LEGAL’S ROLE IN PROCUREMENT AND PROCUREMENT AND

CONTRACT ADMINISTRATIONCONTRACT ADMINISTRATION

Mike Marschall, AttorneyMike Marschall, Attorney

General CounselGeneral Counsel


245-7155245-7155

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AWI OFFICE OF GENERAL AWI OFFICE OF GENERAL COUNSEL (OGC)COUNSEL (OGC)

Contacts:Contacts: Rosa McNaughton, General CounselRosa McNaughton, General Counsel

All areas; 245-7150All areas; 245-7150 Jim Landsberg, Deputy General CounselJim Landsberg, Deputy General Counsel

All areas & Workforce Services; 245-7156All areas & Workforce Services; 245-7156 John Perry, Assistant General CounselJohn Perry, Assistant General Counsel

UC Services; 245-7152UC Services; 245-7152 Kristin Harden, Assistant General CounselKristin Harden, Assistant General Counsel

Early Learning; 245-7161Early Learning; 245-7161

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WHAT IS A CONTRACT?WHAT IS A CONTRACT?

““An agreement between two or more parties An agreement between two or more parties creating obligations that are enforceable or creating obligations that are enforceable or otherwise recognizable as law.” otherwise recognizable as law.” Black’s Black’s Law DictionaryLaw Dictionary. .

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WHAT IS A CONTRACT?WHAT IS A CONTRACT?(continued)(continued)

» Agreement and obligationsAgreement and obligations – means a – means a set of promises exchanged between the set of promises exchanged between the parties.parties.

» EnforceableEnforceable – means that if a party fails – means that if a party fails to do what they promised to do to do what they promised to do (breach), a court of law will enter an (breach), a court of law will enter an order to remedy the breach, order to remedy the breach, i.e.,i.e., make make the offended party wholethe offended party whole..

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For a contract to be enforceable, the parties must have For a contract to be enforceable, the parties must have reached a meeting of the minds, or in other words, agree on reached a meeting of the minds, or in other words, agree on the same terms, conditions, and subject matter. the same terms, conditions, and subject matter.

Therefore, contracts must be clearly written and must Therefore, contracts must be clearly written and must clearly communicate the terms and conditions, clearly communicate the terms and conditions, i.ei.e., ., obligations; promises. obligations; promises.

The terms, conditions, and obligations must be consistent The terms, conditions, and obligations must be consistent throughout the document or an explanation given as to why throughout the document or an explanation given as to why they are not and which controls (they are not and which controls (i.e.,i.e., order of precedence order of precedence list).list).

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Contracts also include:Contracts also include:

» Grants.Grants.

» Direct orders (formerly known as Direct orders (formerly known as purchase orders).purchase orders).

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Each Contract is UniqueEach Contract is Unique» The results of legal review of one contract do not The results of legal review of one contract do not

automatically translate to another contract – even automatically translate to another contract – even the same contract year to year.the same contract year to year.

» What applies in one situation does not necessarily What applies in one situation does not necessarily mean that the same will apply in another situation. mean that the same will apply in another situation.

» Each contract must be written with the Each contract must be written with the circumstances of the specific procurement in mind circumstances of the specific procurement in mind and tailored to that situation. and tailored to that situation.

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THE ROLE OF THE OGC IN THE THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT PROCUREMENT/CONTRACT

PROCESSPROCESS» To provide legal advice when questions To provide legal advice when questions

arise during the procurement or contract arise during the procurement or contract process.process.

Purchasing and program areas are Purchasing and program areas are encouraged to contact the OGC early in encouraged to contact the OGC early in the process when questions arise, but the process when questions arise, but may contact the OGC at any time during may contact the OGC at any time during the process.the process.

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PROCESS (continued)PROCESS (continued)

» To review procurement actions for legal To review procurement actions for legal sufficiency. For example, the OGC will sufficiency. For example, the OGC will review: ITBs, RFPs, RFQs, ITNs, SSsreview: ITBs, RFPs, RFQs, ITNs, SSs

» To review contracts for legal sufficiency.To review contracts for legal sufficiency.

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THE ROLE OF THE OGC IN THE THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT PROCESS PROCUREMENT/CONTRACT PROCESS

(continued)(continued)

Legal Review Includes:Legal Review Includes:» Determination that the procurement document Determination that the procurement document

or contract contains provisions required by or contract contains provisions required by federal and state law. federal and state law.

» Determination that the contract is legally sound, Determination that the contract is legally sound, legally enforceable, and legally defensible in legally enforceable, and legally defensible in order to protect the interests of the Agency and order to protect the interests of the Agency and reduce risk to the Agency.reduce risk to the Agency.

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PROCESS (continued)PROCESS (continued)The OGC does The OGC does notnot make determinations or decisions regarding certain make determinations or decisions regarding certain areas but may question or make recommendations regarding the following: areas but may question or make recommendations regarding the following:

» A determination as to whether the purchase is the best buy.A determination as to whether the purchase is the best buy.» How long the term of the contract should be.How long the term of the contract should be.» Deliverables or the schedule for their delivery. Deliverables or the schedule for their delivery. » Cost Price analysis.Cost Price analysis.» What a program area needs, what best suits the program needs.What a program area needs, what best suits the program needs.» When invoices should be submitted or detail of invoices. When invoices should be submitted or detail of invoices. » While grammatical and typographical errors may be caught, this is not While grammatical and typographical errors may be caught, this is not

a primary purpose of legal review. Purchasing and program areas are a primary purpose of legal review. Purchasing and program areas are responsible for proofing their own documents. responsible for proofing their own documents.

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Agency ContractsAgency Contracts

Components of the Agency Contract:Components of the Agency Contract:

» The Agency Core;The Agency Core;» The Scope of Work (Attachment 1 to the Core) The Scope of Work (Attachment 1 to the Core)

written by the program area; andwritten by the program area; and» Other Attachments as required or needed. Other Attachments as required or needed.

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Agency Core ContractAgency Core Contract

» The standard core contract developed by the The standard core contract developed by the Agency for use in procurements requiring a two Agency for use in procurements requiring a two party contract. Developed by the OGC, and may party contract. Developed by the OGC, and may be downloaded from the Purchasing intranet site.be downloaded from the Purchasing intranet site.

» The core contract is a template containing The core contract is a template containing standard, general contract provisions that are standard, general contract provisions that are required in most contracts. (Any provisions not required in most contracts. (Any provisions not applicable or changed should be done through the applicable or changed should be done through the Scope of Work.)Scope of Work.)

» The core contract is a protected template with The core contract is a protected template with fields to be filled in as appropriate. fields to be filled in as appropriate.

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Agency Core Contract Agency Core Contract (continued)(continued)

3 Versions of the Agency Core Contract3 Versions of the Agency Core Contract

» Vendor Core Contract (11/18/09)Vendor Core Contract (11/18/09)» Sub-Recipient Procured (11/06/09)Sub-Recipient Procured (11/06/09)» Sub-Recipient Exempt Procured (11/06/09)Sub-Recipient Exempt Procured (11/06/09)

Most recent version date is located in the lower leftMost recent version date is located in the lower lefthand corner of core contract; always use most recenthand corner of core contract; always use most recentversion. version.

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Agency Core ContractsAgency Core Contracts

Determining Vendor vs. Sub-recipient RelationshipDetermining Vendor vs. Sub-recipient Relationship

» To determine which core to use, you must first To determine which core to use, you must first determine if there is a vendor or sub-recipient determine if there is a vendor or sub-recipient relationship.relationship.

» Federally Funded Projects:Federally Funded Projects:Utilize Agency Vendor vs. Sub-recipient Utilize Agency Vendor vs. Sub-recipient check list – available on the Purchasingcheck list – available on the Purchasingintranet webpage.intranet webpage.

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Agency Core ContractsAgency Core Contracts(continued)(continued)

Determining Vendor vs. Sub-recipient RelationshipDetermining Vendor vs. Sub-recipient Relationship (continued) (continued)

Federally Funded Projects (continued)Federally Funded Projects (continued)

Vendor Indicators Vendor Indicators

» Provides the goods and services within normal business operations.Provides the goods and services within normal business operations.» Provides similar goods or services to many different purchasers.Provides similar goods or services to many different purchasers.» Operates in a competitive environment.Operates in a competitive environment.» Provides goods and services that may be ancillary to the operation of Provides goods and services that may be ancillary to the operation of

a program.a program.» Is not subject to the Federal compliance requirements of the federal Is not subject to the Federal compliance requirements of the federal

program.program.

(Source: 29 C.F.R. 99.210 (c) (1)-(5)) (Source: 29 C.F.R. 99.210 (c) (1)-(5))

57

Agency Core ContractsAgency Core Contracts (continued)(continued)

Determining Vendor vs. Sub-recipient RelationshipDetermining Vendor vs. Sub-recipient RelationshipFederally Funded Projects (continued)Federally Funded Projects (continued)

Sub-recipient IndicatorsSub-recipient Indicators

» Determines eligibility. Determines eligibility. » Has its performance measured against the objectives of the Has its performance measured against the objectives of the

program.program.» Has responsibility for programmatic decision-making.Has responsibility for programmatic decision-making.» Has responsibility for adherence to applicable federal program Has responsibility for adherence to applicable federal program

compliance requirements (for example, regulations).compliance requirements (for example, regulations).» Uses funds to carry out a program of the organization as Uses funds to carry out a program of the organization as

opposed to providing goods or services for a program.opposed to providing goods or services for a program.

(Source: 29 C.F.R. 99.210 (b) (1)-(5)) (Source: 29 C.F.R. 99.210 (b) (1)-(5))

58


Determining Vendor vs. Sub-recipient RelationshipDetermining Vendor vs. Sub-recipient Relationship (continued)(continued)

State Funded Projects:State Funded Projects:

» Must use Department of Financial Services Must use Department of Financial Services Florida Single Audit Act Checklist, Form # DFS-Florida Single Audit Act Checklist, Form # DFS-A2-NS, July 2005.A2-NS, July 2005.

» Use of this form is required by Rule 69I-5.006, Use of this form is required by Rule 69I-5.006, Florida Administrative Code. Florida Administrative Code.

59


Determining Vendor vs. Sub-recipient RelationshipDetermining Vendor vs. Sub-recipient Relationship (continued)(continued)

Once the vendor vs. sub-recipient relationship has Once the vendor vs. sub-recipient relationship has been identified, use the appropriate Agency Core been identified, use the appropriate Agency Core Contract, Contract, i.e.,i.e., Vendor Core, Sub-recipient Procured Vendor Core, Sub-recipient Procured Core, or Sub-recipient Exempt Procured Core. Core, or Sub-recipient Exempt Procured Core.

60

Agency Core ContractsAgency Core Contracts(continued)(continued)

Vendor Core ContractVendor Core Contract

» To be used when:To be used when:

- There is a vendor relationship. For example, - There is a vendor relationship. For example, Contractor is providing 100,000 widgets.Contractor is providing 100,000 widgets.

» Requires use of:Requires use of:

- Attachment 1 (Scope of Work); - Attachment 1 (Scope of Work); - Attachment 2 (Certifications); andAttachment 2 (Certifications); and- ARRA Supplemental Provision (if applicable).ARRA Supplemental Provision (if applicable).

61

Agency Core Contracts Agency Core Contracts (continued)(continued)

Sub-Recipient ProcuredSub-Recipient Procured

» To be used when:To be used when:– There is a sub-recipient relationship. For example, the There is a sub-recipient relationship. For example, the

contractor is running a program, determining eligibility, contractor is running a program, determining eligibility, enrolling students; andenrolling students; and

– The purchase was procured. For example, an RFP was used The purchase was procured. For example, an RFP was used to obtain proposals from several entities.to obtain proposals from several entities.

» Requires the following attachments:Requires the following attachments:– Attachment 1, “Scope of Work”Attachment 1, “Scope of Work”– Attachment 2, “Certifications”Attachment 2, “Certifications”– Attachment 3, “Assurances” Attachment 3, “Assurances” – Attachment 4, “Audit Requirements”Attachment 4, “Audit Requirements”– ARRA Special Conditions, if applicableARRA Special Conditions, if applicable

62


Sub-Recipient Exempt-ProcuredSub-Recipient Exempt-Procured» To be used when:To be used when:

– There is a sub-recipient relationship; andThere is a sub-recipient relationship; and– The purchase was exempt from procurement requirements. For The purchase was exempt from procurement requirements. For

example, when the contractor is statutorily exempt, such as a example, when the contractor is statutorily exempt, such as a university that is a sub-recipient.university that is a sub-recipient.

» Requires the following attachments:Requires the following attachments:– Attachment 1, “Scope of Work”Attachment 1, “Scope of Work”– Attachment 2, “Certifications”Attachment 2, “Certifications”– Attachment 3, “Assurances” and Attachment 3, “Assurances” and – Attachment 4, “Audit Requirements”Attachment 4, “Audit Requirements”– ARRA Special Conditions, if applicableARRA Special Conditions, if applicable

NOTE:NOTE: Attachment 1, Scope of Work, does not include the language Attachment 1, Scope of Work, does not include the language incorporating the solicitation documents. This is because there will incorporating the solicitation documents. This is because there will be no solicitation documents because there was no procurement.be no solicitation documents because there was no procurement.

63


Core Contract Template FieldsCore Contract Template Fields

1.1. Contract #Contract # - provided by purchasing. - provided by purchasing.

2.2. Contractor NameContractor Name – insert. – insert.

3.3. Type of ContractType of Contract – drop down menu with – drop down menu with following options: fixed price, fixed rate, cost following options: fixed price, fixed rate, cost reimbursement, fixed price/cost reimbursement, reimbursement, fixed price/cost reimbursement, and fixed unit price.and fixed unit price.

64


Core Contract Template Fields Core Contract Template Fields (continued) (continued)

4.4. Begin date of contractBegin date of contract – insert month, day, year. – insert month, day, year. 5.5. End date of contractEnd date of contract – insert month, day and year. – insert month, day and year.

6.6. Contract amountContract amount – insert. – insert.

65


Core Contract Template FieldsCore Contract Template Fields (continued) (continued)

7. 7. Contract Renewal TermContract Renewal Term – insert (must be 1 of – insert (must be 1 of the following: (a) for a period not to exceed 1 the following: (a) for a period not to exceed 1 year; (b) for a period not to exceed 2 years; (c) for year; (b) for a period not to exceed 2 years; (c) for a period not to exceed 3 years; (d) for a period not a period not to exceed 3 years; (d) for a period not to exceed the original term of the Contract; or (e) to exceed the original term of the Contract; or (e) may not be renewed. This provision should also may not be renewed. This provision should also explain how the contract may be renewed, explain how the contract may be renewed, e.g.,e.g., for for 3 one year terms.3 one year terms.

66



8. 8. Payee & Contract Manager contact informationPayee & Contract Manager contact information – insert.– insert.

9. 9. Total number of pagesTotal number of pages – insert with total – insert with total number of pages including attachments.number of pages including attachments.

10. 10. Signatory informationSignatory information – insert. – insert.

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11.11. Contractor Federal Employer Identification Contractor Federal Employer Identification NumberNumber – insert. – insert.

12. 12. Reference to solicitation documentReference to solicitation document – insert – insert appropriate ITB, RFP, RFQ, or SS #.appropriate ITB, RFP, RFQ, or SS #.

13. 13. Scope of WorkScope of Work – insert tailored scope of work. – insert tailored scope of work.

68


Scope of WorkScope of Work

Attachment 1 to core contract.Attachment 1 to core contract.Prepared by the program area.Prepared by the program area.Contents may include but are not limited to:Contents may include but are not limited to:

DeliverablesDeliverablesThe manner in which deliverables are to be providedThe manner in which deliverables are to be providedLocation where work is to be performedLocation where work is to be performedTimelineTimelinePerformance MeasuresPerformance MeasuresReporting/Monitoring requirements Reporting/Monitoring requirements Method of PaymentMethod of PaymentLiquidated DamagesLiquidated DamagesSpecial provisionsSpecial provisions

How to draft a scope of work and the required contents will be presented later.How to draft a scope of work and the required contents will be presented later.

69

Agency Core Contracts Agency Core Contracts (continued) (continued)

Other AttachmentsOther Attachments

» CertificationsCertifications (Attachment 2) (Attachment 2)

– Required for all contractsRequired for all contracts

Debarment and SuspensionDebarment and Suspension

LobbyingLobbying

Drug Free WorkplaceDrug Free Workplace

Nondiscrimination & Equal Opportunity Nondiscrimination & Equal Opportunity

Certification Regarding Public Entity CrimesCertification Regarding Public Entity Crimes

70


Other AttachmentsOther Attachments (continued) (continued)

» AssurancesAssurances (Attachment 3) (Attachment 3)

– Required for all sub-recipients.Required for all sub-recipients.

– Federal law requires that the sub-recipient give Federal law requires that the sub-recipient give assurances that it will comply with certain federal assurances that it will comply with certain federal laws. These include laws against discrimination, laws. These include laws against discrimination, laws limiting political activities when the contract is laws limiting political activities when the contract is funded with federal money, safety standards, fair funded with federal money, safety standards, fair labor standards, environmental laws, and labor standards, environmental laws, and compliance with controlling OMB Circulars compliance with controlling OMB Circulars regarding audits. regarding audits.

71


Other AttachmentsOther Attachments (continued) (continued)

» Audit RequirementsAudit Requirements (Attachment 4) (Attachment 4)

– Required for all sub-recipientsRequired for all sub-recipients

– Details audit requirements for federally and state Details audit requirements for federally and state funded contracts.funded contracts.

– Details Certain Financial Reporting Requirements Details Certain Financial Reporting Requirements

72

Subcontracting by the ContractorSubcontracting by the Contractor» Allowed only with prior approval of the agency.Allowed only with prior approval of the agency.

» Anticipated subcontract agreements known at the time of Anticipated subcontract agreements known at the time of proposal submission and the amount of the subcontract must be proposal submission and the amount of the subcontract must be identified in the proposal. If a subcontract has been identified at identified in the proposal. If a subcontract has been identified at the time of proposal submission, a copy of the proposed the time of proposal submission, a copy of the proposed subcontract must be submitted to the agency.subcontract must be submitted to the agency.

» No subcontract that the contractor enters into with respect to No subcontract that the contractor enters into with respect to performance under the contract shall in any way relieve the performance under the contract shall in any way relieve the contractor of any responsibility for performance of its contract contractor of any responsibility for performance of its contract responsibilities with the agency.responsibilities with the agency.

» The agency reserves the right to request and review information The agency reserves the right to request and review information in conjunction with its determination regarding a subcontract in conjunction with its determination regarding a subcontract request.request.

» The use of minority subcontractors is strongly encouraged. (See The use of minority subcontractors is strongly encouraged. (See Minority Subcontract Report Form Attached).Minority Subcontract Report Form Attached).

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CONDUCTCONDUCT

» Integrity and public confidence in a competitive Integrity and public confidence in a competitive procurement process is essential, andprocurement process is essential, and

» As a state employee involved in the procurement As a state employee involved in the procurement process, you must maintain complete process, you must maintain complete independence and impartiality in dealings with independence and impartiality in dealings with vendors, both in fact and appearance.vendors, both in fact and appearance.

74

CONDUCT (continued)CONDUCT (continued)

Always remember to follow statutes and regulations Always remember to follow statutes and regulations regarding ethics in procurement. For example,regarding ethics in procurement. For example,

» Section 112.313(2), F.S., Solicitation or acceptance of Section 112.313(2), F.S., Solicitation or acceptance of gifts.gifts.

» Section 112.313(3), F.S., Doing business with one’s Section 112.313(3), F.S., Doing business with one’s agency. agency.

» Section 112.313(4) F.S., Unauthorized compensation. Section 112.313(4) F.S., Unauthorized compensation. » Section 112.313(6) F.S., Misuse of public position.Section 112.313(6) F.S., Misuse of public position.» Section 112.313(7), F.S., Conflicting employment or Section 112.313(7), F.S., Conflicting employment or

contractual relationship. contractual relationship. » Section 112.313(8), F.S., Disclosure or Use of Certain Section 112.313(8), F.S., Disclosure or Use of Certain

Information.Information.

75

CONDUCT (continued)CONDUCT (continued)Section 112.3148, F.S., Prohibiting:Section 112.3148, F.S., Prohibiting:

» a procurement employee for the state from a procurement employee for the state from soliciting anysoliciting any gift gift from a political committee, committee of continuous existence, from a political committee, committee of continuous existence, lobbyist who has lobbied his or her agency within the past 12 lobbyist who has lobbied his or her agency within the past 12 months, or the partner, firm, employer, or principal of such a months, or the partner, firm, employer, or principal of such a lobbyist; lobbyist;

» a procurement employee for the state from knowingly a procurement employee for the state from knowingly accepting, directly or indirectly, a gift worth over $100.00 from accepting, directly or indirectly, a gift worth over $100.00 from such a lobbyist, from a partner, firm employer, or principal of such a lobbyist, from a partner, firm employer, or principal of the lobbyist, or from a political committee or committee of the lobbyist, or from a political committee or committee of continuous existence. 112.3149:Prohibits a procurement continuous existence. 112.3149:Prohibits a procurement employee for the state from employee for the state from solicitingsoliciting an honorarium which is an honorarium which is related to his or her public office or duties; andrelated to his or her public office or duties; and

» a procurement employee for the state from knowingly a procurement employee for the state from knowingly acceptingaccepting an honorarium from a political committee, committee of an honorarium from a political committee, committee of continuous existence, lobbyist who has lobbied the person’s continuous existence, lobbyist who has lobbied the person’s agency within the past 12 months, or the partner, firm, agency within the past 12 months, or the partner, firm, employer, or principal of such a lobbyist.employer, or principal of such a lobbyist.

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CONDUCT (continued)CONDUCT (continued)

» Make decisions based upon the law and the Make decisions based upon the law and the best interests of the agency and the public.best interests of the agency and the public.

» Disregard personal relationships and Disregard personal relationships and preferences, and avoid personal gain.preferences, and avoid personal gain.

» Act in ways you would be comfortable Act in ways you would be comfortable seeing in the press, discussing with your seeing in the press, discussing with your family, and defending before a judge.family, and defending before a judge.

77

CONCLUSIONCONCLUSION

When in doubt…When in doubt…

contact the Office of General Counselcontact the Office of General Counsel

atat

245-7150245-7150

78

WRITING THE CONTRACTWRITING THE CONTRACT

Laura I. JenningsLaura I. Jennings

Purchasing ManagerPurchasing Manager

79

Contractual ServicesContractual Services

s. 287.058(4), F.S. – states that every procurement s. 287.058(4), F.S. – states that every procurement of contractual services in excess of Category Two of contractual services in excess of Category Two ($25,000) threshold shall be evidenced by a ($25,000) threshold shall be evidenced by a written written agreement agreement or or purchase orderpurchase order– Internal Agency ThresholdInternal Agency Threshold

$25,000 but <$50,000 requires MFMP Direct Order$25,000 but <$50,000 requires MFMP Direct Order >$50,000 requires a Two-Party Written Agreement>$50,000 requires a Two-Party Written Agreement

– One exception – State Term ContractsOne exception – State Term Contracts

Note: Agencies are allowed to use the PCard for Note: Agencies are allowed to use the PCard for contractual services direct billings that do not exceed contractual services direct billings that do not exceed $75,000 in a State fiscal year$75,000 in a State fiscal year

80

WRITING THE CONTRACTWRITING THE CONTRACT

Basic Core Contract LayoutBasic Core Contract Layout Attachment 1 Recommended Format for the Attachment 1 Recommended Format for the

Statement of Work.Statement of Work. Include Performance Specifications.Include Performance Specifications.

– MeasuresMeasures– DefinitionDefinition– Measurement MethodologyMeasurement Methodology

Include Method of PaymentInclude Method of Payment

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Attachment 1Attachment 1 (Statement of Work) (Statement of Work)

Services to be Provided (What)Services to be Provided (What)

Manner of Service Provision (How)Manner of Service Provision (How)

Method of Payment (How and When)Method of Payment (How and When)

Special Provisions (Any additional Special Provisions (Any additional clauses that were not previously clauses that were not previously addressed in the core contract, addressed in the core contract, solicitation or Attachment 1)solicitation or Attachment 1)

82

A. Services to be ProvidedA. Services to be Provided1 Definition of Terms1 Definition of Terms

a)a) Contract TermsContract Termsb)b) Program or Service Specific TermsProgram or Service Specific Terms

2 General Description2 General Descriptiona)a) General StatementGeneral Statementb)b) AuthorityAuthorityc)c) Scope of ServiceScope of Serviced)d) Major Program GoalsMajor Program Goals

3 Service Recipients3 Service Recipientsa)a) General DescriptionGeneral Descriptionb)b) Recipient EligibilityRecipient Eligibilityc)c) Recipient DeterminationRecipient Determinationd)d) Contract LimitsContract Limits

83

B. Manner of Service ProvisionB. Manner of Service Provision1)1) Service TasksService Tasks

2)2) Staffing RequirementsStaffing Requirementsa)a) Staffing LevelsStaffing Levelsb)b) Professional QualificationsProfessional Qualificationsc)c) Staffing ChangesStaffing Changesd)d) SubcontractorsSubcontractors

3)3) Service Location & Equipment Service Location & Equipment a) Service Delivery Locationa) Service Delivery Locationb) Service Timesb) Service Timesc) Change in Location and Timesc) Change in Location and Timesd) Equipmentd) Equipment

84

B. Manner of Service Provisions B. Manner of Service Provisions Continued….Continued….

4) Deliverables4) Deliverablesa) Service Unita) Service Unit

b) Reportsb) Reports

c) Records and Documentationc) Records and Documentation

5) Performance Specifications5) Performance Specificationsa)a) Outcomes and Outputs/AccountabilityOutcomes and Outputs/Accountability

- Outcomes: i.e., reductions in adverse conditions, scores, etc.Outcomes: i.e., reductions in adverse conditions, scores, etc.

- Outputs: i.e., specific number of activities that need to be Outputs: i.e., specific number of activities that need to be completed.completed.

b)b) Standards DefinitionsStandards Definitions

c)c) Monitoring and Evaluation MethodologyMonitoring and Evaluation Methodology

d)d) Performance DefinitionsPerformance Definitions

85

B. Manner of Service Provisions B. Manner of Service Provisions Continued….Continued….

6. Provider Responsibilities6. Provider Responsibilitiesa) Provider Unique Activitiesa) Provider Unique Activities

b) Coordination with Other Providers and/or b) Coordination with Other Providers and/or EntitiesEntities

7. Agency Responsibilities7. Agency Responsibilitiesa) Agency Obligationsa) Agency Obligations

b) Agency Determinationsb) Agency Determinations

86

CONTRACT DEVELOPMENT AND CONTRACT DEVELOPMENT AND REVIEW PROCESSREVIEW PROCESS

Laura JenningsLaura Jennings

Purchasing ManagerPurchasing Manager


87

Section Two, Part I of the Purchasing and Section Two, Part I of the Purchasing and Contracting Procedures ManualContracting Procedures Manual– Contract Development ProcessContract Development Process

» Basic Core ContractBasic Core Contract

» Scope of WorkScope of Work

» CertificationsCertifications

» Other AttachmentsOther Attachments

– Types of ContractsTypes of Contracts– Contract Review, Approvals, Execution, Distribution Contract Review, Approvals, Execution, Distribution

and File Set Upand File Set Up

Contract DevelopmentContract Development

88

Review & Approval ProcessReview & Approval Process

s. 287.057 (19), F.S. – Contractual Services >$50,000s. 287.057 (19), F.S. – Contractual Services >$50,000– Each agency shall establish a review and approval Each agency shall establish a review and approval

process for all contractual services contracts costing process for all contractual services contracts costing more than the threshold amount provided for in more than the threshold amount provided for in s.287.017 for Category Three which shall include but s.287.017 for Category Three which shall include but not be limited to:not be limited to:

ProgramProgram Financial, andFinancial, and Legal Legal

review and approval. Such review and approvals shall review and approval. Such review and approvals shall be obtained before the contract is executed.be obtained before the contract is executed.

89

Contract Routing Review ProcessContract Routing Review Process

Program AreaProgram Area Purchasing ManagerPurchasing Manager IT Manager, if applicableIT Manager, if applicable Grant ManagerGrant Manager Budget ManagerBudget Manager General CounselGeneral Counsel Executive Management Level AuthorityExecutive Management Level Authority

90

AMENDMENTS, RENEWALS AMENDMENTS, RENEWALS AND EXTENSIONSAND EXTENSIONS

91

Contract AmendmentsContract Amendments

There are two types of contract amendments:There are two types of contract amendments:– Those that result in a Minor Revision Those that result in a Minor Revision

» A technical change that does not alter the contract objectivesA technical change that does not alter the contract objectives ExamplesExamples

– Misspelled wordsMisspelled words

– Word omissionsWord omissions

– Transposed numbersTransposed numbers

– Those that result in a Major Revision Those that result in a Major Revision » A major revision is a substantive change to the contract.A major revision is a substantive change to the contract.

ExampleExample

– Budget ModificationBudget Modification

– New ClauseNew Clause

– Change in timeframes for completing objectivesChange in timeframes for completing objectives

92

Processing a Minor RevisionProcessing a Minor Revision

Make a pen and ink change to the contract.Make a pen and ink change to the contract. All signers on the original contract must All signers on the original contract must

initial and date each change.initial and date each change. Never “white out” or scratch out” text; Never “white out” or scratch out” text;

simply draw a single line through the text. simply draw a single line through the text. The original language must be legible.The original language must be legible.

93

Processing a Major RevisionProcessing a Major Revision Requires a Contract Amendment.Requires a Contract Amendment.

– An amendment is a document which makes An amendment is a document which makes substantive changes to any part of an executed substantive changes to any part of an executed contract. A request to amend a contract may be contract. A request to amend a contract may be initiated by either the Agency or the contractor. For initiated by either the Agency or the contractor. For example….example….

» Method of PaymentMethod of Payment

» Time period of the contractTime period of the contract

» Cost of ServicesCost of Services

» Services to be delivered.Services to be delivered.

94

Development of an AmendmentDevelopment of an Amendment

Meet with the contractor to discuss any Meet with the contractor to discuss any proposed changesproposed changes– If the contractor initiated the request, please have If the contractor initiated the request, please have

them submit the request in writing.them submit the request in writing.– Determine why the contract needs to be changed; Determine why the contract needs to be changed;

changes should only be made when there is changes should only be made when there is sufficient justification for doing so.sufficient justification for doing so.

– Assess the implications of the proposed change on Assess the implications of the proposed change on the delivery of services, service units, cost of the delivery of services, service units, cost of services, the ability of the contractor to render services, the ability of the contractor to render quality services, and the effect the change will have quality services, and the effect the change will have on the clients served by the contractor.on the clients served by the contractor.

95

Developing an Amendment Developing an Amendment Continued….Continued….

Conduct a cost/price analysis to justify Conduct a cost/price analysis to justify changes in contract amount.changes in contract amount.

Draft an amendment based upon Draft an amendment based upon amendment format.amendment format.

96

Amendment Review ProcessAmendment Review Process Amendments must go through the same review process Amendments must go through the same review process

as contracts.as contracts.– Complete the Contract Review Form.Complete the Contract Review Form.

– Attach draft copy of amendment for review and approval.Attach draft copy of amendment for review and approval.

– Attach copy of previously executed amendments and a copy Attach copy of previously executed amendments and a copy of the executed original contract.of the executed original contract.

Remember: Remember: – An amendment may not be retroactive.An amendment may not be retroactive.

– Expired contracts may not be amended.Expired contracts may not be amended.

– Amendments must be executed prior to the effective date.Amendments must be executed prior to the effective date.

– Amendments are to be signed by original contract signers.Amendments are to be signed by original contract signers.

97

RENEWALSRENEWALS

98

Contract RenewalsContract Renewals

s. 287.057(14)(a), F.S., states:s. 287.057(14)(a), F.S., states:– Contingent upon satisfactory performance evaluationContingent upon satisfactory performance evaluation– Subject to the availability of funds.”Subject to the availability of funds.”

s.60A-1.048(b), F.A.C., states:s.60A-1.048(b), F.A.C., states:– Justification that the renewal is in the best interest of Justification that the renewal is in the best interest of

the Statethe State– Maintain a copy of the justification in the contract fileMaintain a copy of the justification in the contract file– Contingent upon satisfactory performance evaluationContingent upon satisfactory performance evaluation– Authorized by mutual agreement in writingAuthorized by mutual agreement in writing

Purchasing and Contracting Procedures ManualPurchasing and Contracting Procedures Manual– Page 86 incorporates the requirements listed abovePage 86 incorporates the requirements listed above

99

Renewal Performance Evaluation Renewal Performance Evaluation

See revised Renewal Template, dated See revised Renewal Template, dated 4/18/094/18/09

http://www.floridajobs.org/forms/Renewal_Boilerplate.doc

100

Contract RenewalsContract Renewals

Contracts for commodities or contractual services Contracts for commodities or contractual services may be renewed on a yearly basis for a period up may be renewed on a yearly basis for a period up to 3 years after the original contract, or to 3 years after the original contract, or for a for a period no longer than the term of the original period no longer than the term of the original contractcontract, whichever is longer., whichever is longer.

Renewal language must be included in the original Renewal language must be included in the original contract (and bid/proposal/reply)contract (and bid/proposal/reply)

Renewal is subject to same terms and conditions Renewal is subject to same terms and conditions of the original contract.of the original contract.

Renewal must be executed before the expiration Renewal must be executed before the expiration date of the contract.date of the contract.

101

Renewal ExceptionsRenewal Exceptions

A Renewal may not be processed for the A Renewal may not be processed for the following contracts:following contracts:– Contracts resulting from an emergency Contracts resulting from an emergency

procurement.procurement.– Single Source procurement contracts.Single Source procurement contracts.– Contracts procured competitively if the costs of Contracts procured competitively if the costs of

contemplated renewals was not included in the contemplated renewals was not included in the initial ITB, RFP or ITN.initial ITB, RFP or ITN.

102

Processing a RenewalProcessing a Renewal

Complete, sign and date the Contract Routing Review Complete, sign and date the Contract Routing Review Sheet.Sheet.

Do not change contract start date, only update the ending Do not change contract start date, only update the ending date.date.

Attach draft copy of renewal amendment and renewal Attach draft copy of renewal amendment and renewal performance evaluation to a copy of the fully executed performance evaluation to a copy of the fully executed contract, along with a copy of the vendor vs. sub-recipient contract, along with a copy of the vendor vs. sub-recipient checklist, and any previous amendments/renewals and checklist, and any previous amendments/renewals and forward to Purchasing (Contract Administrator) for agency forward to Purchasing (Contract Administrator) for agency review and approval.review and approval.

REMEMBER: Renewals must be executed prior to the REMEMBER: Renewals must be executed prior to the expiration date of the original contract.expiration date of the original contract.

103

EXTENSIONSEXTENSIONS

104

Contract ExtensionsContract Extensions

An extension is an increase in the length of An extension is an increase in the length of the contract time period. It is processed by the contract time period. It is processed by preparing an amendment.preparing an amendment.

An extension does not allow for an An extension does not allow for an expansion of the scope of services.expansion of the scope of services.

105

Reasons for Extending a ContractReasons for Extending a Contract

The Agency or the Contractor under The Agency or the Contractor under estimated the time necessary to complete estimated the time necessary to complete the contract.the contract.

Arrival of a crucial piece of equipment Arrival of a crucial piece of equipment needed to complete a task is delayed.needed to complete a task is delayed.

Legitimate delay in contract start-up date Legitimate delay in contract start-up date results in unmet contract objectives and results in unmet contract objectives and funds not being fully expended by the funds not being fully expended by the contract expiration date.contract expiration date.

106

Conditions of Contract ExtensionsConditions of Contract Extensions

Amendment for extension must be executed Amendment for extension must be executed before the contract expires.before the contract expires.

Extension period shall not exceed six months.Extension period shall not exceed six months. Extended contract subject to same terms and Extended contract subject to same terms and

conditions of initial contract.conditions of initial contract. Extension granted only once, unless failure to Extension granted only once, unless failure to

meet the criteria set forth in the contract for meet the criteria set forth in the contract for completion of the contract is due to events beyond completion of the contract is due to events beyond the control of the contractor.the control of the contractor.

107

CONTRACT MANAGEMENTCONTRACT MANAGEMENT

Laura JenningsLaura JenningsPurchasing ManagerPurchasing Manager


108

Who is a Contract Manager?Who is a Contract Manager?

Chapter 287.057(15), F.S., provides that Chapter 287.057(15), F.S., provides that “For each contractual services contract, the “For each contractual services contract, the Agency shall designate an employee to Agency shall designate an employee to function as a contract manager who shall be function as a contract manager who shall be responsible for negotiating, administering, responsible for negotiating, administering, monitoring and enforcing the terms and monitoring and enforcing the terms and conditions”.conditions”.

109

Roles and ResponsibilitiesRoles and Responsibilities

Enforcing the terms and conditions of the contract.Enforcing the terms and conditions of the contract. Carrying out the preparations for contracting.Carrying out the preparations for contracting. Developing the Scope of Work (SOW).Developing the Scope of Work (SOW). Developing evaluation tools for bid analysis.Developing evaluation tools for bid analysis. Negotiating contract, amendments, etc..Negotiating contract, amendments, etc.. Reviewing and approving invoices.Reviewing and approving invoices. MonitoringMonitoring provider’s performance and corrective action provider’s performance and corrective action

plans, as necessary.plans, as necessary. Maintains a comprehensive Contract Manager File.Maintains a comprehensive Contract Manager File. Performing contract close out procedures.Performing contract close out procedures.

110

Monitoring ResponsibilitiesMonitoring Responsibilities

Compliance with Terms and Conditions,Compliance with Terms and Conditions, Getting what we pay for,Getting what we pay for, Track fiscal responsibilities (are funds Track fiscal responsibilities (are funds

being used appropriately),being used appropriately), Detect non-compliance, problem resolution,Detect non-compliance, problem resolution, Corrective Action Plans, and follow-up,Corrective Action Plans, and follow-up, Acceptable level of services is being Acceptable level of services is being

providedprovided

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Monitoring PlanMonitoring Plan

Every Contract Manager is required to establish a written Every Contract Manager is required to establish a written Contract Monitoring Plan, and it requires their Contract Monitoring Plan, and it requires their Supervisor’s review and approvalSupervisor’s review and approval

Written Plan should include the following:Written Plan should include the following:– Periodic ReportingPeriodic Reporting– Contract Deliverables by On-site Reviews and ObservationsContract Deliverables by On-site Reviews and Observations

» Develop a checklist when deliverables are due (i.e., insurance Develop a checklist when deliverables are due (i.e., insurance certificates)certificates)

» Minimum annual reviewMinimum annual review– Client SurveysClient Surveys– Other periodic contact and on-going monitoringOther periodic contact and on-going monitoring– Review of Audit ReportReview of Audit Report– Review and approval of invoice paymentsReview and approval of invoice payments– Signed Statement of IndependenceSigned Statement of Independence

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Contract Closeout ProcessContract Closeout Process

Begin 60 days prior to contract expiration.Begin 60 days prior to contract expiration. Documents Success or Failure.Documents Success or Failure. Reference point for future procurements.Reference point for future procurements. Complete the AWI Contract Manager’s Complete the AWI Contract Manager’s

Contract Closeout Guide check list.Contract Closeout Guide check list.

http://www.floridajobs.org/forms/AWI_Contract_Closeout_Guide.doc

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What is the Contract Manager File?What is the Contract Manager File?

A tool used by the Contract Manager to A tool used by the Contract Manager to keep pertinent information related to a keep pertinent information related to a contract in a logical and coherent manner.contract in a logical and coherent manner.

The files are maintained for a period of 6 The files are maintained for a period of 6 years following contract closeout or years following contract closeout or resolution of pending action.resolution of pending action.

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Purpose of Contract Manager’s FilePurpose of Contract Manager’s File

State law requires that a file be maintained for State law requires that a file be maintained for every contract.every contract.

Ensure that documentation exists to protect the Ensure that documentation exists to protect the agency, as well as, to clarify events, should a agency, as well as, to clarify events, should a protest, audit or other situation arise.protest, audit or other situation arise.

Provides pertinent information related to a Provides pertinent information related to a contract.contract.

Provides required documentation on decisions and Provides required documentation on decisions and events related to the contract.events related to the contract.

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Contract Manager’s FileContract Manager’s File

Consists of two sub-files:Consists of two sub-files:– The procurement file: The procurement file contains all The procurement file: The procurement file contains all

documentation and information regarding the providers documentation and information regarding the providers selection process before the contract is executed.selection process before the contract is executed.

– The contract file – The contract file contains all The contract file – The contract file contains all pertinent information related to a contract from the time pertinent information related to a contract from the time it is awarded until contract closeout.it is awarded until contract closeout.

– General Services keeps the AGENCY CONTRACT General Services keeps the AGENCY CONTRACT ADMINISTRATOR’S originals. However, each ADMINISTRATOR’S originals. However, each Contract Manager should also maintain copies for their Contract Manager should also maintain copies for their records.records.

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Contract Manager’s FileContract Manager’s File

# 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.

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.

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ResourcesResources

Florida StatutesFlorida Statutes Florida Administrative CodeFlorida Administrative Code AWI Agency Addressed MemorandaAWI Agency Addressed Memoranda DMS State Purchasing MemorandaDMS State Purchasing Memoranda DFS Reference Guide to State ExpendituresDFS Reference Guide to State Expenditures DFS CFO MemorandaDFS CFO Memoranda DFS Best Practices for Contract and Grant ManagementDFS Best Practices for Contract and Grant Management OMB CircularsOMB Circulars MyFloridaMarketPlace Tool KitMyFloridaMarketPlace Tool Kit InternetInternet AWI IntranetAWI Intranet Contract Monitoring ToolContract Monitoring Tool

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PROGRAMMATIC MONITORINGPROGRAMMATIC MONITORING

John HerndonJohn HerndonUnemployment Compensation ServicesUnemployment Compensation Services

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Monitoring OverviewMonitoring Overview

The Need for MonitoringThe Need for Monitoring Types of MonitoringTypes of Monitoring Elements of MonitoringElements of Monitoring Monitoring Methods and ToolsMonitoring Methods and Tools Programmatic MonitoringProgrammatic Monitoring Contract MonitoringContract Monitoring

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The Need for MonitoringThe Need for Monitoring Monitoring—what is it? An objective, on-going and reasonable Monitoring—what is it? An objective, on-going and reasonable

evaluation that occurs throughout the contract period to ensure evaluation that occurs throughout the contract period to ensure compliance with applicable laws, rules, regulations, policies, compliance with applicable laws, rules, regulations, policies, and contractual provisions.and contractual provisions.

Why monitor? Why monitor? – It is required.It is required.– Ensures contractor’s compliance with the terms and conditions of the Ensures contractor’s compliance with the terms and conditions of the

contract and applicable laws, rules, and regulations.contract and applicable laws, rules, and regulations.– Ensures Program area is getting what it needs and is only paying for Ensures Program area is getting what it needs and is only paying for

what it contracted for.what it contracted for.– Enables early detection/prevention of non-compliance by identifying Enables early detection/prevention of non-compliance by identifying

and resolving potential problems through constructive, timely feedback.and resolving potential problems through constructive, timely feedback.– Ensures necessary, timely, and appropriate corrective actions are taken.Ensures necessary, timely, and appropriate corrective actions are taken.– Ensures fiscal responsibilities--costs are allowable, allocable and Ensures fiscal responsibilities--costs are allowable, allocable and

documented.documented.

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Types of MonitoringTypes of Monitoring

Programmatic MonitoringProgrammatic Monitoring– Evaluates the contractor’s performance in meeting program areas’ Evaluates the contractor’s performance in meeting program areas’

contract scope of work.contract scope of work.– Evaluates contractor performance quality.Evaluates contractor performance quality.– Establishes historical data for potential future contracts with the Establishes historical data for potential future contracts with the

Contractor.Contractor. Contract Monitoring Contract Monitoring

– Ensures Agency compliance with federal and state requirements.Ensures Agency compliance with federal and state requirements.– Provides Agency oversight and ensures best practices, concerns Provides Agency oversight and ensures best practices, concerns

and problems are shared throughout the Agency. and problems are shared throughout the Agency. – Verifies payments are within the limits of the contract.Verifies payments are within the limits of the contract.

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Elements of MonitoringElements of Monitoring

Maintaining Maintaining well documentedwell documented, , currentcurrent contracting files. contracting files. Identifying, reviewing, and analyzing Contractor reports.Identifying, reviewing, and analyzing Contractor reports. Tracking project milestones and timelines, contractor Tracking project milestones and timelines, contractor

performance, and costs.performance, and costs. Reviewing, approving, processing, and tracking invoices.Reviewing, approving, processing, and tracking invoices. Reconciling invoice payments.Reconciling invoice payments. Monitoring Plans: A formalized means of defining Monitoring Plans: A formalized means of defining

appropriate and specific monitoring methods. Determined appropriate and specific monitoring methods. Determined by the type of contract, level of risk, amount of award, by the type of contract, level of risk, amount of award, complexity of program, etc.complexity of program, etc.– Tailor monitoring plans and activities to the particulars of Tailor monitoring plans and activities to the particulars of

each contract.each contract. Documentation!Documentation!

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Monitoring Methods and ToolsMonitoring Methods and Tools

Determine monitoring methods and tools.Determine monitoring methods and tools.– May be impacted by the type of contract or funding and May be impacted by the type of contract or funding and

may include documentation, observations, surveys, may include documentation, observations, surveys, interviews, tests, etc.interviews, tests, etc.

– Determine the nature, timing and extent of monitoring.Determine the nature, timing and extent of monitoring.» Program complexity: Complex programs have a higher risk Program complexity: Complex programs have a higher risk

of non-compliance and require more rigorous monitoring.of non-compliance and require more rigorous monitoring.» Vendor/Sub-Recipient Risk: Prior history, personnel changes, Vendor/Sub-Recipient Risk: Prior history, personnel changes,

new systems and the status of the contract relationship new systems and the status of the contract relationship impacts the level and frequency of monitoring.impacts the level and frequency of monitoring.

» Amount of Contract Award: The larger the contract award, Amount of Contract Award: The larger the contract award, the greater the risk and need for more rigorous monitoring.the greater the risk and need for more rigorous monitoring.

– Identify the tools to be used to measure and assess Identify the tools to be used to measure and assess performance and compliance.performance and compliance.

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Programmatic MonitoringProgrammatic Monitoring

Programmatic Monitoring deals with contract and program Programmatic Monitoring deals with contract and program compliance requirements.compliance requirements.– Should answer the question “are we getting” what we contracted Should answer the question “are we getting” what we contracted

for? for? – Includes both primary contractor and any sub-contractors.Includes both primary contractor and any sub-contractors.

Evaluates and documents Contractor/sub-contractor Evaluates and documents Contractor/sub-contractor performance.performance.

May be met by making on-site visits, reviewing contractor May be met by making on-site visits, reviewing contractor documentation, conducting periodic or client reviews, documentation, conducting periodic or client reviews, personal observations, conducting tests, reviewing personal observations, conducting tests, reviewing state/agency audits, or any other activities that provides state/agency audits, or any other activities that provides assurances of satisfactory contractor performance and assurances of satisfactory contractor performance and project requirements are met as scheduled.project requirements are met as scheduled.

Must be documented.Must be documented.

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METHODS OF PROGRAMMATIC METHODS OF PROGRAMMATIC MONITORINGMONITORING

Documentation – may be written reports from the Documentation – may be written reports from the contractor, acceptance tests, client surveys, audit contractor, acceptance tests, client surveys, audit reports, invoices, e-mails, letters, and other forms reports, invoices, e-mails, letters, and other forms of documentation etc.of documentation etc.

Observation – includes on-site reviews to the Observation – includes on-site reviews to the contractors’ location or other locations where the contractors’ location or other locations where the services are being provided to evaluate progress, services are being provided to evaluate progress, processes, and documentation first hand.processes, and documentation first hand.

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Tips for Effective Programmatic Tips for Effective Programmatic MonitoringMonitoring

Determine monitoring requirements, methods, tools, etc.. Ideally, this Determine monitoring requirements, methods, tools, etc.. Ideally, this should be done during the RFP and contract development process.should be done during the RFP and contract development process.

Maintain regular, effective contractor dialogue and review contractor Maintain regular, effective contractor dialogue and review contractor performance and progress on a regular basis.performance and progress on a regular basis.

When possible, conduct on-site reviews and interview contractor staff When possible, conduct on-site reviews and interview contractor staff to determine their understanding or contractual requirements, review to determine their understanding or contractual requirements, review key documentation and observe operations.key documentation and observe operations.

If applicable, conduct client surveys to determine service delivery If applicable, conduct client surveys to determine service delivery quality and satisfaction and require the contractor to resolve quality and satisfaction and require the contractor to resolve complaints. complaints.

Ensure the contractor complies with the AWI Program standards, Ensure the contractor complies with the AWI Program standards, regulations and contract provisions.regulations and contract provisions.

Document monitoring results and ensure that appropriate corrective Document monitoring results and ensure that appropriate corrective action is taken for any deficiencies.action is taken for any deficiencies.

Follow-up to ensure that deficiencies have been timely and Follow-up to ensure that deficiencies have been timely and satisfactorily corrected .satisfactorily corrected .

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Summary of Programmatic Summary of Programmatic MonitoringMonitoring

The Contract Manager is responsible for the The Contract Manager is responsible for the ongoing management of the contract.ongoing management of the contract.

Maintaining a well organized contract Maintaining a well organized contract managers’ file is a reflection of you.managers’ file is a reflection of you.

Effective programmatic monitoring ensures Effective programmatic monitoring ensures your contracts and the services meet your your contracts and the services meet your program’s objectives.program’s objectives.

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CONTRACT MONITORINGCONTRACT MONITORING

Financial Management Systems Financial Management Systems Assurance SectionAssurance Section

Henrietta “Penny” LeeHenrietta “Penny” Lee(FMSAS)(FMSAS)

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Contract MonitoringContract Monitoring

Why do we have contract monitoring?Why do we have contract monitoring? What information will be reviewed?What information will be reviewed? How do we complete the contract monitoring process?How do we complete the contract monitoring process? Who will be monitored during FY09-10?Who will be monitored during FY09-10? When will the monitoring take place?When will the monitoring take place? Where will the monitoring take place?Where will the monitoring take place? 08-09 Observations08-09 Observations 08-09 Overview – Findings.08-09 Overview – Findings. Other Suggested Best Practices.Other Suggested Best Practices.

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Why do have contract Why do have contract monitoring?monitoring?

AWI is charged by state and federal regulations AWI is charged by state and federal regulations with oversight of the funds it expends for with oversight of the funds it expends for contracted services. contracted services.

Contract monitoring encompasses administrative Contract monitoring encompasses administrative and performance standards expected to be met by and performance standards expected to be met by the Agency’s contractors according to their the Agency’s contractors according to their contracts and applicable federal & state rules, contracts and applicable federal & state rules, regulations and instructions. regulations and instructions.

AWI’s contract monitoring procedures are subject AWI’s contract monitoring procedures are subject to audit by state and federal agencies. to audit by state and federal agencies.

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What information will be Reviewed?What information will be Reviewed?

Contract/Direct OrderContract/Direct Order Scope of WorkScope of Work Invoices and invoice process.Invoices and invoice process. Other file documentation that supports “due Other file documentation that supports “due

diligence” over the contract by AWI staffdiligence” over the contract by AWI staff Other documentation Other documentation outside outside of the contract of the contract

file. (AWI policy, program rules, file. (AWI policy, program rules, federal/state procurement instructions)federal/state procurement instructions)

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How do we complete the contract How do we complete the contract monitoring process?monitoring process?

Entrance Meeting – Meet with program staffEntrance Meeting – Meet with program staff Review the contractReview the contract Ensure the contract and contract file meet the minimum Ensure the contract and contract file meet the minimum

federal, state and AWI’s procedure requirementsfederal, state and AWI’s procedure requirements Ensure the scope of work and deliverables are met based Ensure the scope of work and deliverables are met based

on contract languageon contract language Review the invoices to ensure they are paid within and Review the invoices to ensure they are paid within and

according to the terms and conditions of the contractaccording to the terms and conditions of the contract Ensure that expenditures were made in accordance with Ensure that expenditures were made in accordance with

applicable laws, rules and regulations; were authorized applicable laws, rules and regulations; were authorized by the agreement; were directly related to the project; by the agreement; were directly related to the project; and were properly supportedand were properly supported

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How do we complete the contract How do we complete the contract monitoring process? (Continued)monitoring process? (Continued)

Identify and summarize testing results and any deficiencies Identify and summarize testing results and any deficiencies notednoted

Identify and summarize testing results and any best Identify and summarize testing results and any best practices foundpractices found

Exit Conference on draft program summary reportExit Conference on draft program summary report Additional input from contract managers is required (if Additional input from contract managers is required (if

needed) to perform any follow-up as we finalize test needed) to perform any follow-up as we finalize test resultsresults

Complete the AWI draft reportComplete the AWI draft report AWI management review and approval of reportAWI management review and approval of report Send out final approved report to program areasSend out final approved report to program areas Corrective action plan processing performed, if neededCorrective action plan processing performed, if needed

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Who will be MonitoredWho will be MonitoredFY 09-10FY 09-10

AWI has a Monitoring Plan that assists in the AWI has a Monitoring Plan that assists in the determination which Contracts will are selected to be determination which Contracts will are selected to be monitored.monitored.

Five contracts and four direct orders have been selected for Five contracts and four direct orders have been selected for monitoring at this time.monitoring at this time.– Three full contract monitoring processThree full contract monitoring process– Two contract monitoring for ARRA onlyTwo contract monitoring for ARRA only– Four Direct Orders processes Four Direct Orders processes

AWI Management may make changes to this sample list.AWI Management may make changes to this sample list.

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When will the monitoring take When will the monitoring take place?place?

Starting March 1, 2010 and completion is Starting March 1, 2010 and completion is targeted by June 30, 2010. targeted by June 30, 2010.

Each Project Manager/Contract Manager Each Project Manager/Contract Manager will be contacted by e-mail with more will be contacted by e-mail with more information.information.

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Where will monitoring take place?Where will monitoring take place?

Contract-related data request memos will be sent Contract-related data request memos will be sent to the program areas.to the program areas.

All testing material will be scheduled and data All testing material will be scheduled and data items will be reviewed by FMSAS staff.items will be reviewed by FMSAS staff.

Question/Answer sessions are currently underway Question/Answer sessions are currently underway with Project Managers or Contract Managers.with Project Managers or Contract Managers.

The review process continues from FMSAS The review process continues from FMSAS office. office.

Summary results are performed from our office.Summary results are performed from our office.

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08-09 Overview – Observations08-09 Overview – Observations

Missing approval documentation in filesMissing approval documentation in files Subrecipient vs vendor checklist in the file but incompleteSubrecipient vs vendor checklist in the file but incomplete Missing file informationMissing file information Missing deliverable approval from fileMissing deliverable approval from file Inconsistent or incomplete supporting documentation in Inconsistent or incomplete supporting documentation in

filesfiles Contents of contract file incomplete and/or disorganizedContents of contract file incomplete and/or disorganized See handoutsSee handouts

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08-09 Overview – Findings 08-09 Overview – Findings

AWI could not provide a comprehensive two-AWI could not provide a comprehensive two-party contract listing.party contract listing.

An employee was conducting contract manager An employee was conducting contract manager duties but was not an AWI certified contract duties but was not an AWI certified contract manager.manager.

AWI’s contract renewal process was not followed AWI’s contract renewal process was not followed as specified in the AWI’s policy and procedures as specified in the AWI’s policy and procedures manual.manual.

Contract Managers did not conduct the contract Contract Managers did not conduct the contract close-out procedures.close-out procedures.

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08-09 Overview – Findings (Con’t) 08-09 Overview – Findings (Con’t)

Contract managers did not document payment Contract managers did not document payment reconciliation to FLAIR (state accounting system) reconciliation to FLAIR (state accounting system) in the contract files.in the contract files.

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Other Suggested Best PracticesOther Suggested Best Practices

A checklist has been developed to ensure that the A checklist has been developed to ensure that the contract renewal process has complete minimum contract renewal process has complete minimum agency requirements.agency requirements.

A checklist has been developed to determine and A checklist has been developed to determine and document the subrecipient vs vendor relationship document the subrecipient vs vendor relationship for all contracts.for all contracts.

Coordinate with other AWI staff as needed to Coordinate with other AWI staff as needed to share guidance information, technical assistance or share guidance information, technical assistance or other available reference materials.other available reference materials.

Continue/expand management training for Continue/expand management training for contract/program staff.contract/program staff.

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American Recovery and American Recovery and Reinvestment Act (stimulus)Reinvestment Act (stimulus)

Additional/enhanced monitoring will be required Additional/enhanced monitoring will be required in 2009-10 for grant funds disbursed under the in 2009-10 for grant funds disbursed under the American Recovery and Reinvestment Act. We American Recovery and Reinvestment Act. We anticipate additional monitoring requirements will anticipate additional monitoring requirements will apply. We’re currently waiting on further apply. We’re currently waiting on further guidance and instructions from the federal guidance and instructions from the federal awarding agencies and OMB. We are advising awarding agencies and OMB. We are advising contract managers that have contract with stimulus contract managers that have contract with stimulus dollars, have there contract files and all pertinent dollars, have there contract files and all pertinent documentation readily available for monitoring documentation readily available for monitoring purposes.purposes.

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QUESTION AND ANSWER QUESTION AND ANSWER SESSIONSESSION

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Day TwoDay Two

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““Contract Management in Florida” Contract Management in Florida”

presented by presented by

Walter Sachs, DCF Staff DirectorWalter Sachs, DCF Staff Director

Contract AdministrationContract Administration

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Thank youThank you

1 AGENCY CONTRACT MANAGEMENT CERTIFICATION TRAINING February 2010.

Documents

Transcript of 1 AGENCY CONTRACT MANAGEMENT CERTIFICATION TRAINING February 2010.