How To Pack a Procurement for Its Trip to OSC Susie Tucker-Ross and April LaMoy

1. How To Pack a Procurement for Its Trip to OSC Susie Tucker-Ross and April LaMoy

2. How To Package a Procurement for its Trip to OSC The NYS Office of the State Comptroller, Bureau of Contracts, in an effort to assist and facilitate NYS Agencies and Authorities with their contract approval objectives, has created guidelines for preparing a contract Recommendation for Award to OSC. Use of these guidelines will facilitate OSC’s review process and expedite your contract approval requests. Office of Operations 2009 Fall Conference

3. Data Entry Sheets AC 340 * P Data Sheets * Purchase Orders • All data entry fields should be completed in their entirety. • Please ensure the contract period dates on the AC340 and P Data sheets are entered and are correct. • For amendment transactions, please make sure the contract period dates are properly completed, (beginning date is always the date the contract starts, end date is subject to change if the contract period of performance is modified as a result of a renewal action or another form of extension, and the renewal date is the starting date of the renewal or other form of extension) • Ensure the contract amount is correct. • Contract description should reflect the commodity or service – whether it is a new contract or an amendment. Office of Operations 2009 Fall Conference

4. Mailing Address All Recommendations for Award are to be submitted to: • NYS Office of the State Comptroller • 110 State Street, 11th Floor • Albany, New York 12236 • Attn: Bureau of Contracts Office of Operations 2009 Fall Conference

5. Transmittal Letters • All contracts, amendments & supplements should be accompanied by a Transmittal letter. The transmittal letter should include basic as well as significant elements of your procurement process. These elements include but are not limited to: contract number, Contractor’s name, total contract amount, renewal provisions, description of the goods or services being procured, notation of any rejected bids or bid protests, contact person with phone number, fax number and email address.

6. Transmittal Letter (Continued) • It is suggested that a template be created for your transmittal letter. • An example is provided as follows: • Contract number • Contractor's name • Total Contract Amount • Description of Goods or Services • Notation of rejected bid or protest • Name of Contact person • Telephone and fax number • E-mail address • Narrative summary of procurement action

7. Transmittal Letter (Continued) • Your transmittal letter should be brief and summarize key elements of your procurement review with emphasis given to, e.g., bid rejections or protests, agreements made or scope changes agreed upon during the negotiations process (if applicable).

8. Batch Types for IFB and RFP Batch TypeContract Description Contract Team ```````````````````````````````````````````````````````````````E10 PO’s $50,000+ Invitation for Bids and Real Property & Negotiated Contracts ``````````````````````````````````````````````````````````````````````` TBP Lowest Price IFB Contracts and related Amendments Invitation for including Construction Contracts and Change Orders Bids ``````````````````````````````````````````````````````````````````````` TPC Purchase Authorizations (PA’s). Invitation for ONLY OGS and/or OSC can enter this Batch Type. Bids ``````````````````````````````````````````````````````````````````````` TBV Best Value (RFP) Contracts and related Amendments Request for Proposals ``````````````````````````````````````````````````````````````````````` TCA Address Changes Systems Management ``````````````````````````````````````````````````````````````````````` ECC Encumbrance Adjustment Only Not submitted to Contracts Office of Operations 2009 Fall Conference

9. What is a Procurement Record? • The term procurement record is commonly understood to refer to that file that is made and maintained by a Governmental Entity that documents the series of decisions made and approaches taken when conducting a procurement. For the purposes of the New York State Finance Law, the procurement record shall include a record of Contacts about a particular Procurement Contract and a determination of vendor responsibility in the procurement process. Office of Operations 2009 Fall Conference

10. What is a Procurement Record? (continued) • All relevant pre award documentation • Bid evaluation plan • Proposal analysis • Written record of proposal clarifications/ negotiations, including dates and personnel involved • Justification for the lack of competition in a competitive bid environment • Justification for reasonableness of price (Best Value Analysis for RFPs/Low Bid Analysis for IFBs) • Basis for bid disqualifications • Bid Protests and resolution Office of Operations 2009 Fall Conference

11. Agency Procurements Using an Invitation for Bid (IFB) • IFB may be used to procure either commodities or services, so long as commodities are awarded on the basis of lowest price and services on the basis of best value where best value has been interpreted to mean lowest price among responsive and responsible offerers. Office of Operations 2009 Fall Conference

12. Invitation for Bid (IFB)(continued) • Certified Bid Tabulation: • Original, signed, and certified by an authorized representative of the agency. • Identify the date, time, and place of opening; all bids received, and all no-bids. • List bids ranked numerically with the lowest bidder as number one; no bids and no responses should be designated as such • Rank offerers in a manner consistent with the method of award (by item, lot, grand total, etc.) Office of Operations 2009 Fall Conference

13. Invitation for Bid (IFB)(continued) • The Record/Written Determination/Cover Letter must demonstrate, in writing, the process by which the agency made the award and its relationship to the method of award detailed in the IFB. The Record should include: • Documentation detailing why an offerer is determined to be non-responsible and/or non-responsive. • Documentation of any negotiations concerning specific terms and conditions • Any bid protest correspondence, including a copy of the vendor’s protest and all agency responses. Office of Operations 2009 Fall Conference

14. Invitation for Bid (IFB)(continued) • All relevant correspondence between agency and bidders, e.g., emails • All documented proof as defined in the bid specifications, bidder qualifications etc. • Canvas of No-Bids, if less than 3 viable bids were received • Price list • Vendor Justification • Questions and Answers, also indicate if there weren’t any questions • Prevailing Wage Rates • Comparison to OGS or GSA Contract Pricing • Civil Service Approval, S-contracts • Copy of Host Contract for Piggyback agreements Office of Operations 2009 Fall Conference

15. Invitation for Bid (IFB) Amendments • Amendments submitted to OSC. When OSC prior approval is required for contract amendments, (renewals, price changes, etc.) the following documents should be submitted for approval. • One P-contract data sheet for each vendor’s contract or one AC340 depending on the type of contract. • A agency record/cover letter explaining the purpose and background of the amendment and any changes to the contract. • Copy of the original agreement or Notice of Award contract terms and conditions to verify the changes and/or extension is in accordance with the terms of the contract. (Contract term, CPI increase, etc.) Office of Operations 2009 Fall Conference

16. Invitation for Bid (IFB)(continued - Amendments) • If the amendment is a renewal and/or a CPI increase: • P-Data sheet/AC340 adjustment contract dates: the contract period dates should be as follows; beginning date is the original beginning date of contract, the renewal/amendment date is the start date of the extension, and the end date is the new end date of the contract. • P-Data sheet/AC340 adjustment contract amount: the contract amount should be the annual yearly amount plus a price adjustment increase if applicable. If the usage was underestimated the contract amount should be raised to reflect the true contract usage. • Three renewal agreements. (OSC, Agency & Vendor) The renewal agreement should reference the contract number, have a place for the Comptroller’s approval stamp, and it should have signatures from the vendor and the agency. (Both signatures should be original and authorized to sign the document) • If prices have increased or decreased due to a CPI price adjustment, include a copy of the CPI index used to calculate the increase or decrease and a revised price list.

17. Invitation for Bid (IFB)(continued - Amendments) • If this is an amendment and not a renewal: • Attorney General approval is required if the contract language is amended • Supply any justification that might be needed. (Why the contract is being changed, price justification, model changes etc.) • Three signed (original signature, no faxes) agreements from each vendor (if more than one vendor) which includes the contract number, an authorized agency signature, and a place for the Comptroller’s approval. • Vendor’s written request to change contract. • Vendor’s substantiation that the change is necessary, if applicable. • Lobby Law documentation is not required if the procurement was initiated prior to January 1, 2006. If the original contract was initiated after January 1, 2006 and Lobby Law documents were required for approval, a renewal amendment is considered authorized and payable according to the original contract and Lobby Law documentation is not required. Otherwise, after January 1, 2006 an amendment not anticipated in the original contract would need the vendor’s Lobby Law affirmation, certification, disclosure, and termination. Also, the OSC Lobby Law form is required. (Governmental Entity Representation form) See Bulletin G-224 for details. Office of Operations 2009 Fall Conference

18. Invitation for Bid (IFB)(continued - Amendments) • ST220 CA is not required if the procurement was initiated prior to January 1, 2005. If the procurement was initiated after January 1, 2005, and is in excess of $100,000.00, the ST220 CA is required. See Bulletin G-222a for details. • The Agency Certification of Vendor Responsibility form should be included with all submissions. The Agency Vendor Responsibility Profile form is only required if the agency is aware of potentially adverse information about the vendor (on amendments). The Vendor Responsibility Questionnaire is required if the contract is over $100,000.00 for the first time and/or if potentially adverse information was discovered by the agency.

19. Agency Procurements Using a Request for Proposal (RFP) Methods for gathering information before developing solicitation documents and specifications • Prior to the formal release of an RFP, NYS agencies are allowed the flexibility of gathering and exchanging information with potential suppliers. Three methodologies are currently available for this gathering and exchange of information. • These methods are: • Request For Information (RFI) • Request For Comment (RFC) • Draft RFPs Office of Operations 2009 Fall Conference

20. Request for Proposal (RFP)(continued) • Request For Information (RFI) is considered a research and information gathering mechanism to be utilized when an agency seeks to establish requirements or options for a proposed scope of work. This methodology must be executed prior to issuing a formal solicitation. • Request For Comment (RFC)is a methodology used to solicit input fromall potential bidders relative to the clarity of proposed contract language. This methodology is also used to identify restrictive or unclear proposal requirements prior to formal RFP issuance. • Draft Request For ProposalsAgencies have the flexibility to submit draft RFPs to allpotential bidders for remarks or comments prior to the issuance of an RFP. Agencies also have flexibility in establishing final contract specifications that satisfy identified requirements, however, statutory contract requirements are not subject to negotiation or change

21. Request for Proposal (RFP)(continued) • A “Request For Proposal (RFP)” is an invitation for qualified suppliers to compete for a contract award. • A well developed RFP should include a number of important elements including but not limited to: An overview of the intended scope of work, a description of the products or services required, selection criteria, a time line which outlines key events pertaining to the RFP, i.e.: the RFP release date, due date, question and answer period, and projected award date.

22. Request for Proposal (RFP)(continued) • A primary advantage to using the Best Value RFP methodology is that it facilitates the submittal of a well organized proposal which can be evaluated using quantifiable methodologies.

23. Request for Proposal (RFP)(continued) • When submitting a Best Value/RFP recommendation for award to the Office of the State Comptroller (OSC) Please refer to: OSC’s Submission Guide to ensure appropriate document submittal

24. OSC SUBMISSION GUIDE

25. OSC SUBMISSION GUIDE

26. OSC SUBMISSION GUIDE

27. OSC SUBMISSION GUIDE

28. OSC SUBMISSION GUIDE

29. Please refer to the OSC Submission Checklist

30. SINGLE/SOLE SOURCE Sole Source Procurements only one vendor can provide the commodity or service required Single Source Procurements two or more vendors can supply the commodity or service required; however, the agency, upon written findings setting forth the material and substantial reasons therefore, may award the contract to one vendor over the other(s) 30 Office of Operations 2009 Fall Conference

31. SINGLE/SOLESOURCE A new subparagraph ii was added to  Section 163(10)(b) to limit the use of single source procurements to circumstances where a formal  competitive process is not feasible and provide that the term of the single source contract shall be only for a period of time until such circumstances are ameliorated.  Furthermore, State agencies must document in the Procurement Record why competition is not feasible and publish these reasons on its website within 30 days of awarding a single source contract.  This is in addition to the requirement that single source contracts be let in only unusual circumstances where material and substantial reasons exist. 31 Office of Operations 2009 Fall Conference

32. Emergency Purchases • An emergency is an unanticipated, sudden and unexpected occurrence beyond the control of an agency which threatens (I) the life, health, safety or welfare of any person, or (ii) the continued public use or function of property of New York State. For procurements conducted under an emergency situation, the Procurement Package shall include: Office of Operations 2009 Fall Conference

33. Emergency Purchases • Written explanation of the emergency determination signed by the agency head or designated official • Certified tabulation of quotations received and an explanation of vendor selection if other than the low bidder; • Written quotation from the selected vendor • Procurement Record Checklist • Proof of advertisement in the ContractReporter, or an OSC approved exemption • Certified tabulation of quotations received and an explanation of vendor selection if other than the low bidder Office of Operations 2009 Fall Conference

34. OSC RequirementsPurchase Orders • Purchase orders should be completed in full, including: • Agency name and code • Vendor name and address • Billing address • Shipping instructions, if different than the billing address • Description of purchase, including quantities and unit prices • Any special provisions, including special delivery schedules, shipping terms (should be FOB), payment provisions • Inspection requirements that affect the purchase • The total purchase must be encumbered with the purchase order. When multiple deliveries are required, funds should be encumbered for purchases anticipated during the entire fiscal year. • An individual authorized in accordance with OSC signature requirements must sign the purchase order. Office of Operations 2009 Fall Conference

35. OSC RequirementsContracts In accordance with G-Bulletin 111 two original copies of the contract are required for OSC’s files. Agencies may submit signature pages only in lieu of the entire contract document. In accordance with G-Bulletin 111, Agencies are required to place the contract number and an agency certification on all signature pages The Agency Certification states “In addition to the acceptance of this contract, I also certify that the original copies of this signature page will be attached to all other exact copies of this contract” Upon approval, the signature pages will be returned to the agency with the OSC approval stamp. It is the agency’s responsibility to attach the signature pages to the proper contract documents Office of Operations 2009 Fall Conference

36. OSC RequirementsContract Encumbrance (AC 340) • The AC 340 document is used to establish a master file of the contract as well as encumber the necessary funds for payment. • The procurement record must include the AC 340 document, signed by the agency finance officer or designee. Also, the signature and telephone number of the preparer should be included. The amount required for payment for the fiscal year must be fully encumbered. Office of Operations 2009 Fall Conference

37. OSC RequirementsRequired Signatures and Attachments • The Record must include the signatures of contracting parties, in ink and dated showing the title of the signatory parties. If there are any changes to the text of the original contract prior to OSC’s review, they must be dated and initialed by all signatory parties. Agencies must have on file with OSC all individuals authorized to sign contracts. The Record must include the following signatures and/or attachments prior to submission to OSC: • Attorney General’s approval (not required on commodity contracts or pa-contracts) • Appendix A • An acknowledgment of contractor’s signature Office of Operations 2009 Fall Conference

38. Recurrent Audit Findings(Improvement Opportunities) • Many times the signatures are illegible. Ensure authorized signatory signatures are written as well as typed onto the signature page. • Justifications for discretionary purchase contractor selection are often not provided • Justification provided for “no bid” submittals • Inadequate justification for bidder selection. Advertising materials substituted for why the recommended bidder was selected. • Incomplete Consultant Form A submittals. All appropriate fields not completed and O*Net employment codes incorrect. • Form A submittal is only required for the original contract approval action

39. Recurrent Audit Findings(Improvement Opportunities)(continued) • A justification of reasonableness of contract price must always be presented for all new contract/amendment/ supplemental actions that impact pricing. Should pricing remain the same a statement should be provided. • Statutory Requirements documentation not provided: (Vendor Responsibility, ST-220, Lobby Law, Consultant Disclosure Forms A&B) • Inconsistencies between the price identified on the contract and the contract price identified on the detail screen • Contract/Amendment actions/ Supplements transmitted to the Office of the State Comptroller for approval prior to submittal the Office of the State’s Attorney General • Contract Reporter exemption requests should be submitted for approval prior to submittal for the recommendation for award

40. Recurrent Audit Findings(Improvement Opportunities)(continued) • Payee ID (Federal Identifications Number) must be consistent on all contract documentation including but not limited to: the AC-340 and statutory requirements documentation. • Contract/Amendment/Supplement submittals must provide contact information • Project definition (scope of work requirements) not provided • Justification not provided for contract terms in excess of five years • Justification not provided for contract termination actions • Always complete all fields on the AC-340 for all contract and amendment actions. • When using amendments/supplements that increase/decrease pricing always justify the change in terms of the reasonableness of the new price.

41. Recurrent Audit Findings(Improvement Opportunities)(continued) • Questions and answers generated during the bidding process must be submitted with the recommendation for award. If no questions were received, please indicate so via the cover letter. • The AC-340 description field should clearly identify the product or service being procured. • Any inconsistencies between the contract price and pricing identified by any related supporting documentation must be reconciled in writing. • Frequently, when Appendix X documentation is submitted, the dates and amounts do not correspond. If the full contract (multi-year) term dates are identified, then the full contract amount should be identified. If only one year’s dates (renewal) are used, then only the one year amount should be entered (not the multi-year amount).

42. Thank You