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The University of Louisiana at Monroe PURCHASING DEPARTMENT Contract Rules

The University of Louisiana at Monroe PURCHASING DEPARTMENT Contract Rules L.S.A.-R.S. 39: Public Finance December 1, 2014.

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The University of Louisiana at Monroe PURCHASING DEPARTMENT Contract Rules

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  1. The University of Louisiana at Monroe PURCHASING DEPARTMENT Contract Rules L.S.A.-R.S. 39: Public Finance December 1, 2014

  2. Professional Contracts is a section of the Office of State Procurement that is charged by law with adopting rules and regulations for the procurement, management, control and disposition of all professional, personal, consulting, and social services contracts required by state agencies. Professional Contracts are received by the Office of State Procurement and are reviewed for appropriateness of contract terms and language, signature authorities, evidence of funding and compliance with applicable laws, regulations, executive orders and policies. Professional Contracts also reviews agencies' procurement processes against competitive solicitation requirements of law.The review process also ensures that a central record of all such agreements is maintained and that comparative statistics in the number and kinds of services needed can be developed for planning and reporting purposes.The Louisiana Revised Statutes Title 39:1481-1526 directly address the laws governing Professional, Personal, Consulting, and Social Services Contracts. The official rules and regulations of the Office of State Procurement, Professional Contracts appear in Title 34, Part V of the Louisiana Administrative Code.

  3. Policy and Procedures for Submitting Contracts for Professional, Personal, Consulting and Social Services DEFINITIONS • Professional Services • A profession is a vocation founded upon prolonged and specialized intellectual training that enables a particular service to be rendered. The word "professional" implies professed attainments in special knowledge, as distinguished from mere skill. • External contracts for professional services may be negotiated by the end user with a responsible contractor without competitive bidding.

  4. For contracts with a total amount of compensation of $50,000 or more, the definition of professional service shall be limited to lawyers, doctors, dentists, psychologists, certified advanced practice nurses, veterinarians, architects, engineers, land surveyors, landscape architects, accountants, actuaries, claims adjusters, and any other profession that may be added by regulations adopted by the Procurement Contracts section of the Office of State Procurement. Personal Services Personal services include work rendered by individuals that requires use of creative or artistic skills, such as, but not limited to, graphic artists, sculptors, musicians, photographers, and writers, or that requires use of highly technical or unique individual skills or talents, such as, but not limited to, paramedicals, therapists, handwriting analysts, foreign representatives, and expert witnesses for adjudications or other court proceedings..

  5. External contracts for personal services may, regardless of the amount of compensation, be negotiated by the end user with a responsible contractor without competitive bidding. Consulting Services Consulting services include work, other than professional or personal services, rendered by either individuals or firms who posses specialized knowledge, experience, and expertise to investigate assigned problems or projects and to provide counsel, review, design, development, analysis, or advise in formulating or implementing programs or services, or improvements in programs and services, including but not limited to such areas as management, personnel, finance, accounting, planning, data processing, and advertising contracts.

  6. External contracts for consulting services where the total amount of compensation is less than $50,000 may be negotiated by the end user with a responsible contractor without competitive bidding. Contracts for $50,000 or more must be awarded by Request for Proposals (RFP) pursuant to the requirements of Louisiana R.S.39:1503. Failure to comply shall result in having to re-do the entire process. PRIOR TO THE COMMENCEMENT DATE ON ANY CONTRACT, the contract shall have been processed and approved by the Purchasing Department or the President’s Office. Contract approval could take up to sixty (60) days, depending on the dollar amount of the contract and the review and approvals required from other University offices or from other state agencies.

  7. Under no circumstances should an individual sign an agreement with any proposed contractor. Guidelines and required contracts and form(s) may be reviewed and downloaded from http://www.ulm.edu/forms If you have any questions, please call the Purchasing Department at 318-342-5205 or fax (5218).

  8. Professional Contracts-Checklist for the Review of Personal, Professional, Consulting, and Social Services Contracts. • Minimum Contract Content: 1. Contains appropriate original (not a signature stamp) signatures of agency and contractor.2. Contains appropriate approvals; i.e. Civil Service, Attorney General, Higher Education Boards, if applicable, etc.3. Contains a date upon which the contract is to begin and upon which contract will terminate.4. Contains a description of the work to be performed including goals and objectives, deliverables, performance measures and a monitoring plan.5. Contains a maximum amount and schedule of payments to be made.6. Contains an itemized budget if it is a cost reimbursement contract.

  9. . 7.Contains a description of reports or other deliverables to be received, when applicable. 8. Contains a schedule when reports or other deliverables are to be received, when applicable. 9. When a contract includes travel and/or other reimbursable expenses, it contains language to effect the following: a. Travel and other reimbursable expenses constitute part of the total maximum payable under the contract, or b. No more than ($_________) of the total maximum amount payable under this contract shall be paid as reimbursable expenses, and c. Travel expenses shall be reimbursed in accordance with Division of Administration Policy and Procedure Memorandum 49 (The State General Travel Regulations).

  10. 10. Contains the responsibility for payment of taxes, when applicable. 11. Contains the circumstances under which the contract can be terminated either with or without cause and contains remedies for default. Must contain 30 day termination at convenience of the state unless justified and approved by the Director of the Office of Contractual Review. 12. Contains a statement giving the Legislative Auditor and the Division of Administration Auditors the authority to audit records of the individual(s) or firm(s). 13. Contains an assignability clause. 14. Contains required anti-discrimination language (ADA). 15. Appropriate language if key internal controls have been outsourced.

  11. Additional Attachments which are required for Contract Submittal: 1. Signed BA-22 form. 2. Certification letter, if contract is over $5,000. 3. Multi-year letter, if contract exceeds 12 months. 4. Late letter, if contract is more than 60 days late. 5. Board Resolution, if contractor is a corporation, either profit or non-profit. 6. Disclosure of Ownership affidavit which has been filed with the Secretary of State's Office if contractor is a for profit corporation whose stock is not publicly traded. 7. Certificate of Authority to do business in Louisiana if contractor is an out-of-state corporation. 8. Resume for Consultants.

  12. 9. Advance payment justification from non-profit contractor and approval by the agency with a statement that this is the most cost effective way of obtaining the services as well as a recoupment schedule. 10. Information and documentation if contract was awarded through the Request for Proposals process. • Determination of Responsibility of Contractor: • If a contract for consulting services is for $50,000 or more, or for social services for $250,000 or more per a 12 month period, the head of the submitting agency has prepared, signed and placed in the contract file a statement of the facts on which a determination of responsibility was based. Factors to consider are:

  13. 1. Has adequate financial resources for performance, or has the ability to obtain such resources as required during performance.2. Has the necessary experience, organization, technical qualifications, skills, and facilities, or has the ability to obtain them (including probable sub-contractor arrangements).3. Is able to comply with the proposed or required time of delivery or performance schedule.4. Has a satisfactory record of integrity, judgment and performance.NOTE: Contractors who are seriously delinquent in current contract performance, considering the number of contracts and the extent of delinquencies of each, shall, be presumed to be unable to fulfill this requirement.5. Is otherwise qualified eligible to receive an award under applicable laws and regulations.6. On subcontracting, it has been established that contractor's recent performance history indicates acceptable subcontracting systems; or, major subcontractors have been determined by the head of the submitting agency to satisfy standard.

  14. AMOUNTS • < $49,999 - Signed on Campus • > $50,000 – Must be approved by Office of State Procurement in Baton Rouge (allow 4 to 6 weeks for approval) • <$100,000 on campus for Entertainment contract NOTE: Maximum dollar amount MUST be stated, cannot give amount “Plus” expenses

  15. OTHER • NEPOTISM: CAN NOT contract with immediate family member • PRIOR EMPLOYEES: State law

  16. Procedures for Submitting to Purchasing Contracts under $2,000 • Submit a requisition in Banner detailing the terms and conditions of the contract and the contract period. Complete the “Contracts under $2000” form and submit to purchasing for processing. • Contracts under $2000 can be processed on a Check Request when a check is needed for the day of the event. The Check Request must be submitted with this form and before services are rendered. Code the account to 705702

  17. Contracts $2,000 to 20,000 • Contracts over $2,000 and up to $20,000 signed by the contractor and submitted to the Purchasing Department for further processing at least 14 days prior to the commencement date of service. Use the “Correspondence Form” as a cover to reference the requisition number and forward to Purchasing. This form can be found under forms for Purchasing. • The contract will be checked for appropriate terms. The contract will be signed on behalf of the university by the purchasing department. The contract is processed by purchasing personnel. Code the account to 705701 or the appropriate Professional Services account code.

  18. Contracts over $20,000 - $49, 999 • Contracts over $20,000 are submitted to the Purchasing Department for review at least 60 calendar days prior to the commencement date of services. (This does not include sub-award contracts) The contract is reviewed by Purchasing to ensure compliance with all statutory and regulatory requirements. The contract is returned to the originator to attain the Contractor’s signature, as well as the signature of two witnesses. • The signed contract and appropriate documents along with a Correspondence cover is returned to Purchasing and is forwarded for the appropriate approval signature. • The contract is returned to Purchasing for processing. The contract, if necessary is sent for approval by appropriate state agency. Contracts between $20,000

  19. and $49,999 are approved by the President or his designee and processed. Code with account 705700 or the appropriate Professional Services account code. Contracts over $49, 999 • Contracts over $49,999 follow the same procedure as contracts over $20,000 and are sent to Civil Service, if necessary other state agencies and Professional Contracts section of the Office of State Procurement for approval. • These contracts are coded with account 705700 or the appropriate Professional Services account code.

  20. Performance Evaluation • A performance evaluation is required on contracts over $2,000. The evaluation should be completed by the Originator. The evaluation form can be obtained from the Purchasing Department Website. The evaluation must be completely filled out and forward to the Controller’s Office at the end of the contract period for final payment of invoice. A copy must also be sent to the Purchasing Office. • For contracts over $20,000, a performance evaluation must be submitted to the Purchasing Office within 45 days of completion of performance and no contract may be entered into by any using department with any contractor for which a delinquent final evaluation report remains outstanding.

  21. Performance Evaluations over $20,000 are sent to the Office For contracts over $250,000, a performance evaluation is also sent to the Legislative Auditor. Reporting • Contracts over $2,000 are reported quarterly to the Office of State Procurement. • Legal Contract usage is reported quarterly to University of Louisiana System

  22. Additional Clauses Order of Precedence Clause • In the event of any inconsistent or incompatible provisions, this signed agreement (excluding the RFP and Contractor's proposal) shall take precedence, followed by the provisions of the RFP, and then by the terms of the Contractor's proposal. Entire Agreement Clause • This contract, together with the RFP and addenda issued thereto by the Department, the proposal submitted by the Contractor in response to the Department's RFP, and any exhibits specifically incorporated herein by reference, constitute the entire agreement between the parties with respect to the subject matter.

  23. Travel Reimbursements (This language may be used in RFP documents and/or contracts) • If the Proposer will be required to travel in the performance of the contract, and/or the State Agency will be reimbursing the Contractor separately for travel expenses, the RFP and/or the contract shall clearly state that “Travel and other allowable expenses shall be reimbursed in accordance with the Division of Administration State General Travel Regulations, within the limits established for State Employees as defined in Division of Administration Policy and Procedure Memorandum No. 49.  All out of state travel will be subject to prior approval by the Secretary of the agency or his/her designee.”  

  24. ROUTING All contracts are sent to the purchasing office for review of appropriate language prior to sending contractor for signature. Once received from contractor, the issuing department will submit a requisition. The contract with the monitoring plan and certification letter are sent to the purchasing department referencing the requisition number on a Campus Correspondence cover sheet. Purchasing will obtain university signature. The contract is processed according to contract amount and type.

  25. Sample Contracts and Forms can be found under the Purchasing Web site at http://www.ulm.edu/purchasingoffice/ or under ULM Online Forms.

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