Contract Compliance and Cost Recovery Services Webinar

1. Contract Compliance and Cost Recovery Services Webinar Webinar Participation Tips…..1. Please enter your Attendee ID - you will not receive a verbal ‘prompt’ to do so. - Open the Meeting Info tab/box. - Enter you Attendee ID into your phone. This will synch your phone and name to help identify you.2. After the initial welcome and attendee introductions, please consider muting your phones until the question and answer period

2. WSCA/NASPOContract Compliance and Cost Recovery Services Webinar August 11, 2011

3. Sourcing Team Members • Dan Reisner – Utah (Lead State) • Kent Beers -- Utah • Mark Little – Idaho • Christine Warnock – Washington • Douglas Richins – WSCA • Paul Stembler – WSCA • Kathryn Offerdahl -- WSCA

4. Contract Scope of Work Contract Compliance and Cost Recovery Services • Compliance with Contract Pricing Agreements • The primary focus of this contract compliance and cost recovery review will be to validate that vendors under contract with WSCA and/or NASPO states are charging users of the contracts accurate prices. • Accuracy of Administrative Fee Payments Remitted • Under certain contracts, vendors are required to remit an administrative fee payable to WSCA and/or the individual state based on the volume of spend. The primary focus of this contract compliance and cost recovery review will be to validate that vendors under contract are accurately reporting the amount of contract sales and remitting the proper administrative fee payments.

5. Intent to Participate • Draft RFP released to all States • Intents to Participate were received from: Arizona, Hawaii, Idaho, Iowa, Minnesota, Mississippi, Nevada, Ohio, Oklahoma, South Dakota, Utah, West Virginia • If your State did not sign an Intent to Participate, you are still able to use the Master Price Agreement and are encouraged to do so

6. Procurement Process • Compliant with the Utah Procurement Code • RFP release date: January 3, 2011 • RFP close date: February 23, 2011 • Date of Master Price Agreement: August 1, 2011 • Contract Term: August 1, 2011 to August 31, 2016 • Renewal Options: None • Maximum Contract Term: 5 years

7. Evaluation Process • 23 proposals received • 9 proposals deemed non-responsive for award based upon not meeting one or more of the solicitation criteria • 14 proposals were fully evaluated • 12 offerors received awards

8. Evaluation Criteria • RFP Form Required • Minimum Qualifications Pass/Fail • Statement of Qualification • Profile of Audit Firm 20 Points • Audit Work History 25 Points • References 10 Points • Approach to Auditing 10 Points • Audit Tools 5 Points Total Evaluation Points available: 70 Points

9. Final Scores of Prequalified Firms FirmScore Protiviti 69 Deloitte 68 KPMG 68 Chartwell 67 Grant Thornton 63 Cost Reduction 63 Clifton Gunderson 60 MHM 57 Cotton & Co. 57 Brown, Smith 55 Thompson, Cobb 54 Haynie 54

10. Multi-Phase Process • Phase I consisted of a pre-qualification process in which qualified firms were awarded a WSCA/NASPO Master Agreement. Firms were pre-qualified in Phase I using the criteria contained in the RFP. • During Phase II states or political subdivisions may choose to invite all or only a select number of the prequalified firms awarded a WSCA Master Agreement in Phase I to submit proposals to perform contract compliance and/or cost recovery services on contracts selected for review.

11. How to Use this Contract During Phase II, states or political subdivisions should submit the following information to the prequalified firm(s) they invite to submit proposals: • The name of the state or political subdivision contract(s) to be reviewed; • A copy of the state or political subdivision contract(s) or link to website containing contract(s); • Detailed scope of work - The scope of work should include whether the review shall consist of contract compliance and/or cost recovery services, the contract terms and conditions, contract usage and other pertinent information; • Schedule – including deadline when the review is to be completed; and • Other state specific requirements.

12. Invited Pre-Qualified FirmsMust Submit the Followingin their Proposal: • Strength of Team • Work Plan and Schedule • Price Proposal – Schedule of Rates • Other State Specific Submission Requirements

13. Where to Find Information • WSCA Website www.aboutwsca.org or www.wsca.info Current Contracts Contract Compliance and Cost Recovery Services

14. Eligibility Process • All 50 states, DC, and Puerto Rico have executed the NASPO Cooperative MOA, and are eligible to use any WSCA or NASPO cooperative contract. • In all cases State Chief Procurement Official will have the final say on who can and cannot participate within a state. • The WCSA/NASPO Cooperative Development Team (WNCDT) will assist State Chief Procurement Officials, contact them directly (wncoopdt@gmail.com)

15. Participation Process[for a state or political subdivision wanting to use the contracts] • This contract is really about “engagements” – a review of a contract (which may have multiple contractors) by a single firm. Because of this, we will use a slightly modified “participation” process. • Eligible entities (states or political subdivisions) will follow this process to put an engagement in place, and the entity will send a copy of the fully executed engagement participating addendum to the WSCA/NASPO Cooperative Development Team, so that the lead state contract administrator can manage the contract. • Although it is not required, we encourage entities to solicit responses from multiple prequalified firms.  All of the prequalified firms are capable of doing the work.  Inviting multiple firms keeps them competing against each other and provides a business advantages to all of us.

16. Participation Process - continued[for a state or political subdivision wanting to use the contracts] • The Engagement Participating Addendum is a 3 part form • Request for Responses • Offer • Engagement Acceptance • Completing the sections in order creates a package that represents what you wanted, what you were offered and what you actually accepted, in a neat concise bundle. • Each section is completed in order, by the entity, by the responder and then by both the accepted contractor and the entity. • The acceptance is most of the existing WSCA Participating Addendum – so your legal counsel has seen it before

17. Participation Process - continued[for a state or political subdivision wanting to use the contracts] The model package will be linked on the WSCA website for the contract by August 17th. If you are in a really big hurry, send Kate Offerdahl an email (kofferdahl@amrms.com) and she will send you one. And, she can help walk you through the document and how it is intended to work. Please, ask questions if it is not clear how it should work. The process has been reviewed with the contractors and they should understand their roles in the process.

18. WSCA Contract AdministratorWSCA/NASPO Contract Compliance & Cost Recovery Services • Dan Reisner State of Utah Division of Purchasing & General Services 3150 State Office Building Capitol Hill Salt Lake City, UT 84114 dreisner@utah.gov P: 801-538-3216 f: 801-538-3882 Master Price Agreement (Utah) number: MA1000