AGENCY

1

• AGENCY
• CONTRACT MANAGEMENT CERTIFICATION
• TRAINING
• February 2010

2
Welcome Introductions

• Name, Program Area
• I am in this class because .
• The best job I ever had was .
• The worst project I ever worked on was .

3
TRAINING SCHEDULE

• Day 1
• Procurement and Contract Tracking System (PACTS)
• Procurement Methods
• Role of the Information Technology Office
• Role of Financial Services
• Doing Business with Minority Business Enterprises
• Role of the General Counsels Office
• How to Write Contracts

4

• TRAINING SCHEDULE CONTINUED.
• Day 1 (continued)
• Contract Review Process
• Developing and Processing Contracts, Amendments
  Renewals and Extensions
• Managing Contract Files
• Programmatic Contract Monitoring
• Day 2
• Contract Management in Florida presented by
  Walter Sachs, DCF Staff Director, Contract
  Administration Perform Examination Review

5
Organizational Chart
6
Guiding Principles and Responsibilities

• Legality and Ethics
• Effective Services
• Efficiency
• Economy
• Fairness Open Competition
• Diversity

7
Authority

• Authority
• Chapter 287, Florida Statutes
• Chapter 60A-1, Florida Administrative Code
• Other Related References
• AWI Purchasing Policy, 4.02 Purchasing and
  Contracting Procedures Manual
• DMS State Purchasing Memorandums
• Department of Financial Services
• Reference Guide for State Expenditures
• CFO Memorandums
• Agency Addressed Memorandums
• Federal Regulations

8
s. 287.001, F.S.- Legislative Intent

• Ensure the following
• Fair and open competition
• Reduce the appearance and opportunity for
  favoritism
• Inspire Public Confidence
• Awarded Equitably and Economically
• Effective Monitoring Mechanisms
• Uniform procedures are followed
• Detailed Justification of the Agency Decisions
• Ethical Behavior

9

• PROCUREMENT AND CONTRACT TRACKING SYSTEM
• (PACTS)
• OVERVIEW
• Laura I. Jennings
• Purchasing Manager
• Agency for Workforce Innovation

10
PACTS

• WHY WAS IT CREATED
• The PACTS database was created to track
• the process of administering a contract from the
  initial stages of identifying the program area
  need
• through the procurement of a provider to deliver
  those commodities or contractual services,
• track the routing of contract documents through
  the agency review process, and
• to document the contract history (start/end
  dates, increases/decreased, amendments, renewals,
  and extensions)

11
Purpose of PACTS

• To assist the Agency in complying with applicable
  state and federal laws, rules and regulations.
• To provide a resource to the Agency for
  proactively manage and track the history of
  Agency two-party contracts.
• Program Areas have view access for tracking
  expiration dates
• http//intra.awi.state.fl.us/pacts/

12

• METHODS OF PROCUREMENT
• Laura I. Jennings
• Purchasing Manager
• Agency for Workforce Innovation

13
Types of Procurement

• Three Main Types
• Small Purchases
• Discretionary
• lt 2,500 Requires only one (1) quote
• Informal
• 2,500 - 14,999.99 Requires two (2) or more
  quotes
• gt15,000 - 24,999.99 Requires three (3)
  written quotes
• Non-Competitive
• Emergency Purchases
• DMS Authorized Agreements (STC, ACS SPA)
• Single Source
• Exempt
• Continuing Education
• PRIDE and RESPECT
• Competitive Solicitations gt25,000
• Invitation to Bid
• Request for Proposal
• Invitation to Negotiate

14
Procurement Cycle

• Identified Need
• Specification Development
• Determine Method of Procurement
• Obtain Quotes or Conduct Formal Solicitation
• Agency Selection Award
• Contract Development (MFMP DO or Two-Party)
• Delivery of Services
• Invoice and Payment
• Monitoring Contract Performance
• Contract Closeout

15
Internal and External Requirements

• External
• DMS
• CSA Telecommunication
• Single Source gt150,000
• DFS
• Council of Efficient Government
• TRW

• Internal
• Cost Price Analysis
• Vendor vs Subrecipient
• Conflict of Interest
• IRA
• OCO
• Facility Services
• Routing Process

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Invitation to Bid ITB

• Commodity or service is easily identified
• Bidders offer pricing based on set requirements
  (i.e., manufacturer, model, size, color, etc.)
• Bidder qualifications and commodity/service will
  be compared to the requirements of the ITB, but
  not to each other
• Award will be made to the responsive and
  responsible bidder offering the lowest price.

17
Request for Proposal - RFP

• Written determination why ITB is not practicable,
  to be approved.
• Defined scope of work with multiple solutions.
• The vendor qualifications, experience and quality
  of service are more important than price.
• Proposals will be compared to each other.
• Award to Respondent that receives the highest
  total points for technical and cost.

18
Invitation to Negotiate - ITN

• Scope of Work cannot be completely and
  accurately defined.
• Two Step process
• 1. Evaluation Scoring/Ranking Highest to Lowest
• a. Shortlisted Vendors Move Forward
• 2. Negotiation Phase
• a. Negotiations are conducted to level the
• playing field
• b. Responses are compared to each other
• c. Qualifications and quality of service
  may be
• considered more important than
  price
• d. Vendor is selected on Best Value

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• INFORMATION TECHNOLOGYS ROLE IN PROCUREMENT AND
  CONTRACT MANAGEMENT
• Parker Cape
• IT Contract Manager
• Agency for Workforce Innovation

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Objectives

• Discussion of Five Topics
• Definition of Information Technology
• Information Resource Authorizations (IRA)
• Security Considerations
• Early Involvement
• Contract Review Process

21
Information Technology Definition

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

22
Information Technology Definitioncontinued.

• Equipment
• Server/Terminal/Thin Client
• Storage/Tape/Virtual Tape
• UPS/Surge Suppression/Batteries
• Firewalls/Infrastructure Equipment/VPN
• Desktop/Laptops
• Software
• Licenses/renewals/maintenance
• Services
• IT Consulting/Staff Augmentation
• Data Circuits

23
Information Resource Authorization (IRA)

• What is an IRA?
• An IRA is a request for acquisition of
  information technology or services, including
  those procured through a contract.
• Why an IRA?
• It is the responsibility of the Information
  Technology Unit to ensure that AWI is procuring
  information technology (hardware, software,
  services, etc.) that can integrate and
  interconnect with our existing IT systems and
  services and is consistent with AWI policies and
  Florida Statutes.

24
Information Resource Authorization
(IRA)continued.

• A completed IRA Form must accompany all IT
  related acquisitions.
• It is required via the Agencys Information
  Technology Purchasing Policy 5.01. (Revision
  Pending)
• http//www.floridajobs.org/Policies/IT/itequip_20
  purch_repairpolicy5.01.pdf

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Security Considerations

• Information System Security Plan (ISSP) Policy
  5.02
• Know Confidentiality Rules
• Adopted 11/06
• http//intra.awi.state.fl.us/info_sec/index.htm
• Security is EVERYONEs responsibility!
• Build security in from the beginning
• Contract and bid language should contain
  security requirements
• Positions of Special Trust 1.08
• - Reaffirmed 2/09
• - http//www.floridajobs.org/policies/Director/
  Policy201.0820Special_Trust_Positions.pdf
• Always evaluate the risk of your decisions!

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Early Involvement

• In any contract acquisition involving technology,
  bring IT into the process with you..the earlier
  the better!
• All new projects require a project definition
  form to be submitted to your IT Application
  Manager
• Carlton Bassett Workforce Services
• Patrick Greene Administration
• Jill Conley Office of Early Learning
• Allen Northrup Unemployment Compensation
• Things to consider
• Long term, recurring cost of IT support staff (5
  to 10 Years)
• Licensing fees and renewals
• Mandatory upgrades (hardware and software)
• Total cost of ownership
• Existing Agency infrastructure
• Warranty period

27
IRA Submission Process
28

• FINANCIAL SERVICES ROLE IN PROCUREMENT AND
  CONTRACT MANAGEMENT
• Alisa Roberson
• Disbursements Supervisor
• Agency for Workforce Innovation

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The Disbursement Units Role

• Set up of the Contract number in FLAIR
• Entry of the Encumbrance in FLAIR so spending and
  budget can be tracked and verified by the program
  offices
• In accordance with CFO Memorandum 1 (2007-08)
  all contracts require DFS review prior to the
  initial payment request
• http//myfloridacfo.com/aadir/cm070801.pdf
• Submission of contracts to the Department of
  Financial Services (DFS) for a pre-audit 10 days
  prior to the first request for payment being made
• Review of all payment requests to ensure
  compliance with terms of contract, all applicable
  regulations and to request payment through DFS
• Maintenance of the original documentation of
  payments made through FLAIR (NOT those
  originating in MFMP)
• Mail-out of warrants issued to the
  vendor/contractor

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What FA Needs From Contract Managers

• For all contracts
• A copy of the completed, signed contract when
  executed
• The contract number referenced on any and all
  correspondence about your contract
• A signed and dated Contract Summary Form
  accompanying a signed and dated invoice
• http//www.fldfs.com/aadir/summary_csa.htm
• Any accounting code changes (grant, org, etc.) or
  any warrant mailing/handling instructions at the
  time of invoice processing
• Documentation to support the invoice
• A detail of the charges, if summarized on the
  invoice
• Reviewed to ensure it matches the contractual
  rates/fee

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What FA Needs from Contract Managers (Continued)

• For contracts entered into MFMP
• The contract number included on the Requisition
  at time of creation
• Reference to the contract number on the Invoice
  Reconciliation (IR) if its not chosen at the
  time of requisition
• All documents (contract, attachments, etc.)
  scanned and attached to the Requisition
• The Contract Summary Form scanned and attached on
  all IRs
• Additional supporting documentation scanned and
  attached to the IR, as requested by DFS,
  especially if not on the original Requisition

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How Contract Managers Can Help Themselves

• Track all disbursements to ensure adequate
  contract balance and accurate encumbrances
• Enter MFMP Change Orders for any permanent
  changes in accounting codes
• Communicate with your Grant Manager and Budget
  Analyst frequently
• Follow-up with vendors to ensure invoices are
  received timely
• Review the encumbrance report provided by FA to
  ensure accuracy

33

• DOING BUSINESS WITH MINORITY BUSINESS ENTERPRISES
• Christina Harrell
• Contract Administrator
• Agency for Workforce Innovation

34
Minority Requirement

• When contracting the first thought should be Is
  there a minority business that can provide the
  goods or services that Im about to purchase?

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What is a Certified Minority?

• Business that has been certified through the
  Department of Management Services, Office of
  Supplier Diversity, as a certified minority
  business enterprise for the purposes of doing
  business with the state.
• What is a Minority Business?
• Businesses owned by
• H -African American
• I - Hispanic American
• J - Asian/Hawaiian American
• K - Native American
• M - American Woman
• W Service Disabled Veteran
• Must be domiciled in FL to be eligible to become
  a Certified Minority Business Enterprise.

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How Do I Find a Minority Company?

• Certified Minority Vendor On-Line Directory
• https//vendorstrator.dms.myflorida.com/directory
• Contact Purchasing for Assistance
• Attend the AWI Purchasing CMBE Monthly Meeting
  held on the 4th Wednesday in Room B-49

37
Sample Purchasing Types Where Minority Vendors
May Be Utilized

• Contracting/Subcontracting
• Advertising
• Printing
• Office Furniture
• Travel

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How Do I Report My Minority Subcontracting
Dollars?

• The CMBE Subcontractor Expenditure Report is to
  be utilized by the Contract Manager as a
  reporting mechanism for all subcontractor
  dollars.
• http//www.floridajobs.org/generalservices/Certifi
  ed20Minority20Business20Sub-Contractor20Expend
  iture20Report20Form.xls
• This form is to be submitted to the MBE
  Coordinator for the Agency (Christina Harrell)
  via e-mail to christina.harrell_at_flaawi.com no
  later than the 5th of each month.

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How Can I Exceed Last Years Minority Expenditures

• Monitor Monthly Reports in FLAIR/FIS.
• Ensure STC purchases are completed with a
  Certified MBE Authorized Reseller, if applicable.
• Ensure your office is using a CMBE Travel Agent
  vs. going direct.
• Submit monthly adjustments to the CMBE
  Coordinator to receive proper credit for miscoded
  expenditures.
• Contact Purchasing for Assistance.

40
Agency Minority Reporting

• 90 Day Spending Plans
• Quarterly 3rd Tier Adjustments WFI, RWBs and
  ELCs
• Monthly Agency Contractor/Subcontracting 2nd Tier
  Adjustments
• Annual Small Business Participation Plan

41

• LEGALS ROLE IN PROCUREMENT AND CONTRACT
  ADMINISTRATION
• Mike Marschall, Attorney
• General Counsel
• Agency for Workforce Innovation
• 245-7155

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AWI OFFICE OF GENERAL COUNSEL (OGC)

• Contacts
• Rosa McNaughton, General Counsel
• All areas 245-7150
• Jim Landsberg, Deputy General Counsel
• All areas Workforce Services 245-7156
• John Perry, Assistant General Counsel
• UC Services 245-7152
• Kristin Harden, Assistant General Counsel
• Early Learning 245-7161

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WHAT IS A CONTRACT?

• An agreement between two or more parties
  creating obligations that are enforceable or
  otherwise recognizable as law. Blacks Law
  Dictionary.

44
WHAT IS A CONTRACT?(continued)

• Agreement and obligations means a set of
  promises exchanged between the parties.
• Enforceable means that if a party fails to do
  what they promised to do (breach), a court of law
  will enter an order to remedy the breach, i.e.,
  make the offended party whole.

45
WHAT IS A CONTRACT?(continued)

• For a contract to be enforceable, the parties
  must have reached a meeting of the minds, or in
  other words, agree on the same terms, conditions,
  and subject matter.
• Therefore, contracts must be clearly written and
  must clearly communicate the terms and
  conditions, i.e., obligations promises.
• The terms, conditions, and obligations must be
  consistent throughout the document or an
  explanation given as to why they are not and
  which controls (i.e., order of precedence list).

46
WHAT IS A CONTRACT?(continued)

• Contracts also include
• Grants.
• Direct orders (formerly known as purchase
  orders).

47
WHAT IS A CONTRACT?(continued)

• Each Contract is Unique
• The results of legal review of one contract do
  not automatically translate to another contract
  even the same contract year to year.
• What applies in one situation does not
  necessarily mean that the same will apply in
  another situation.
• Each contract must be written with the
  circumstances of the specific procurement in mind
  and tailored to that situation.

48
THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT
PROCESS

• To provide legal advice when questions arise
  during the procurement or contract process.
• Purchasing and program areas are encouraged to
  contact the OGC early in the process when
  questions arise, but may contact the OGC at any
  time during the process.

49
THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT
PROCESS (continued)

• To review procurement actions for legal
  sufficiency. For example, the OGC will review
  ITBs, RFPs, RFQs, ITNs, SSs
• To review contracts for legal sufficiency.

50
THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT
PROCESS (continued)

• Legal Review Includes
• Determination that the procurement document or
  contract contains provisions required by federal
  and state law.
• Determination that the contract is legally sound,
  legally enforceable, and legally defensible in
  order to protect the interests of the Agency and
  reduce risk to the Agency.

51
THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT
PROCESS (continued)

• The OGC does not make determinations or
  decisions regarding certain areas but may
  question or make recommendations regarding the
  following
• A determination as to whether the purchase is the
  best buy.
• How long the term of the contract should be.
• Deliverables or the schedule for their delivery.
  
• Cost Price analysis.
• What a program area needs, what best suits the
  program needs.
• When invoices should be submitted or detail of
  invoices.
• While grammatical and typographical errors may be
  caught, this is not a primary purpose of legal
  review. Purchasing and program areas are
  responsible for proofing their own documents.

52
Agency Contracts

• Components of the Agency Contract
• The Agency Core
• The Scope of Work (Attachment 1 to the Core)
  written by the program area and
• Other Attachments as required or needed.

53
Agency Core Contract

• The standard core contract developed by the
  Agency for use in procurements requiring a two
  party contract. Developed by the OGC, and may be
  downloaded from the Purchasing intranet site.
• The core contract is a template containing
  standard, general contract provisions that are
  required in most contracts. (Any provisions not
  applicable or changed should be done through the
  Scope of Work.)
• The core contract is a protected template with
  fields to be filled in as appropriate.

54
Agency Core Contract (continued)

• 3 Versions of the Agency Core Contract
• Vendor Core Contract (11/18/09)
• Sub-Recipient Procured (11/06/09)
• Sub-Recipient Exempt Procured (11/06/09)
• Most recent version date is located in the lower
  left
• hand corner of core contract always use most
  recent
• version.

55
Agency Core Contracts

• Determining Vendor vs. Sub-recipient Relationship
• To determine which core to use, you must first
  determine if there is a vendor or sub-recipient
  relationship.
• Federally Funded Projects
• Utilize Agency Vendor vs. Sub-recipient check
  list available on the Purchasing
• intranet webpage.

56
Agency Core Contracts(continued)

• Determining Vendor vs. Sub-recipient Relationship
  (continued)
• Federally Funded Projects (continued)
• Vendor Indicators
• Provides the goods and services within normal
  business operations.
• Provides similar goods or services to many
  different purchasers.
• Operates in a competitive environment.
• Provides goods and services that may be ancillary
  to the operation of a program.
• Is not subject to the Federal compliance
  requirements of the federal program.
• (Source 29 C.F.R. 99.210 (c) (1)-(5))

57
Agency Core Contracts (continued)

• Determining Vendor vs. Sub-recipient Relationship
• Federally Funded Projects (continued)
• Sub-recipient Indicators
• Determines eligibility.
• Has its performance measured against the
  objectives of the program.
• Has responsibility for programmatic
  decision-making.
• Has responsibility for adherence to applicable
  federal program compliance requirements (for
  example, regulations).
• Uses funds to carry out a program of the
  organization as opposed to providing goods or
  services for a program.
• (Source 29 C.F.R. 99.210 (b) (1)-(5))

58
Agency Core Contracts (continued)

• Determining Vendor vs. Sub-recipient Relationship
  (continued)
• State Funded Projects
• Must use Department of Financial Services Florida
  Single Audit Act Checklist, Form DFS-A2-NS,
  July 2005.
• Use of this form is required by Rule 69I-5.006,
  Florida Administrative Code.

59
Agency Core Contracts (continued)

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

60
Agency Core Contracts(continued)

• Vendor Core Contract
• To be used when
• - There is a vendor relationship. For
  example, Contractor is providing 100,000
  widgets.
• Requires use of
• - Attachment 1 (Scope of Work)
• Attachment 2 (Certifications) and
• ARRA Supplemental Provision (if applicable).

61
Agency Core Contracts (continued)

• Sub-Recipient Procured
• To be used when
• There is a sub-recipient relationship. For
  example, the contractor is running a program,
  determining eligibility, enrolling students and
• The purchase was procured. For example, an RFP
  was used to obtain proposals from several
  entities.
• Requires the following attachments
• Attachment 1, Scope of Work
• Attachment 2, Certifications
• Attachment 3, Assurances
• Attachment 4, Audit Requirements
• ARRA Special Conditions, if applicable

62
Agency Core Contracts (continued)

• Sub-Recipient Exempt-Procured
• To be used when
• There is a sub-recipient relationship and
• The purchase was exempt from procurement
  requirements. For example, when the contractor
  is statutorily exempt, such as a university that
  is a sub-recipient.
• Requires the following attachments
• Attachment 1, Scope of Work
• Attachment 2, Certifications
• Attachment 3, Assurances and
• Attachment 4, Audit Requirements
• ARRA Special Conditions, if applicable
• NOTE Attachment 1, Scope of Work, does not
  include the language incorporating the
  solicitation documents. This is because there
  will be no solicitation documents because there
  was no procurement.

63
Agency Core Contracts (continued)

• Core Contract Template Fields
• 1. Contract - provided by purchasing.
• 2. Contractor Name insert.
• 3. Type of Contract drop down menu with
  following options fixed price, fixed rate, cost
  reimbursement, fixed price/cost reimbursement,
  and fixed unit price.

64
Agency Core Contracts (continued)

• Core Contract Template Fields (continued)
• 4. Begin date of contract insert month, day,
  year.
• 5. End date of contract insert month, day and
  year.
• 6. Contract amount insert.

65
Agency Core Contracts (continued)

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

66
Agency Core Contracts (continued)

• Core Contract Template Fields (continued)
• 8. Payee Contract Manager contact information
  insert.
• 9. Total number of pages insert with total
  number of pages including attachments.
• 10. Signatory information insert.

67
Agency Core Contracts (continued)

• Core Contract Template Fields (continued)
• 11. Contractor Federal Employer Identification
  Number insert.
• 12. Reference to solicitation document insert
  appropriate ITB, RFP, RFQ, or SS .
• 13. Scope of Work insert tailored scope of
  work.

68
Agency Core Contracts (continued)

• Scope of Work
• Attachment 1 to core contract.
• Prepared by the program area.
• Contents may include but are not limited to
• Deliverables
• The manner in which deliverables are to be
  provided
• Location where work is to be performed
• Timeline
• Performance Measures
• Reporting/Monitoring requirements
• Method of Payment
• Liquidated Damages
• Special provisions
• How to draft a scope of work and the required
  contents will be presented later.

69
Agency Core Contracts (continued)

• Other Attachments
• Certifications (Attachment 2)
• Required for all contracts
• Debarment and Suspension
• Lobbying
• Drug Free Workplace
• Nondiscrimination Equal Opportunity
• Certification Regarding Public Entity Crimes

70
Agency Core Contracts (continued)

• Other Attachments (continued)
• Assurances (Attachment 3)
• Required for all sub-recipients.
• Federal law requires that the sub-recipient give
  assurances that it will comply with certain
  federal laws. These include laws against
  discrimination, laws limiting political
  activities when the contract is funded with
  federal money, safety standards, fair labor
  standards, environmental laws, and compliance
  with controlling OMB Circulars regarding audits.
  

71
Agency Core Contracts (continued)

• Other Attachments (continued)
• Audit Requirements (Attachment 4)
• Required for all sub-recipients
• Details audit requirements for federally and
  state funded contracts.
• Details Certain Financial Reporting Requirements

72
Subcontracting by the Contractor

• Allowed only with prior approval of the agency.
• Anticipated subcontract agreements known at the
  time of proposal submission and the amount of the
  subcontract must be identified in the proposal.
  If a subcontract has been identified at the time
  of proposal submission, a copy of the proposed
  subcontract must be submitted to the agency.
• No subcontract that the contractor enters into
  with respect to performance under the contract
  shall in any way relieve the contractor of any
  responsibility for performance of its contract
  responsibilities with the agency.
• The agency reserves the right to request and
  review information in conjunction with its
  determination regarding a subcontract request.
• The use of minority subcontractors is strongly
  encouraged. (See Minority Subcontract Report Form
  Attached).

73
CONDUCT

• Integrity and public confidence in a competitive
  procurement process is essential, and
• As a state employee involved in the procurement
  process, you must maintain complete independence
  and impartiality in dealings with vendors, both
  in fact and appearance.

74
CONDUCT (continued)

• Always remember to follow statutes and
  regulations regarding ethics in procurement. For
  example,
• Section 112.313(2), F.S., Solicitation or
  acceptance of gifts.
• Section 112.313(3), F.S., Doing business with
  ones agency.
• Section 112.313(4) F.S., Unauthorized
  compensation.
• Section 112.313(6) F.S., Misuse of public
  position.
• Section 112.313(7), F.S., Conflicting employment
  or contractual relationship.
• Section 112.313(8), F.S., Disclosure or Use of
  Certain Information.

75
CONDUCT (continued)

• Section 112.3148, F.S., Prohibiting
• a procurement employee for the state from
  soliciting any gift from a political committee,
  committee of continuous existence, lobbyist who
  has lobbied his or her agency within the past 12
  months, or the partner, firm, employer, or
  principal of such a lobbyist
• a procurement employee for the state from
  knowingly accepting, directly or indirectly, a
  gift worth over 100.00 from such a lobbyist,
  from a partner, firm employer, or principal of
  the lobbyist, or from a political committee or
  committee of continuous existence.
  112.3149Prohibits a procurement employee for the
  state from soliciting an honorarium which is
  related to his or her public office or duties
  and
• a procurement employee for the state from
  knowingly accepting an honorarium from a
  political committee, committee of continuous
  existence, lobbyist who has lobbied the persons
  agency within the past 12 months, or the partner,
  firm, employer, or principal of such a lobbyist.

76
CONDUCT (continued)

• Make decisions based upon the law and the best
  interests of the agency and the public.
• Disregard personal relationships and preferences,
  and avoid personal gain.
• Act in ways you would be comfortable seeing in
  the press, discussing with your family, and
  defending before a judge.

77
CONCLUSION

• When in doubt
• contact the Office of General Counsel
• at
• 245-7150

78

• WRITING THE CONTRACT
• Laura I. Jennings
• Purchasing Manager

79
Contractual Services

• s. 287.058(4), F.S. states that every
  procurement of contractual services in excess of
  Category Two (25,000) threshold shall be
  evidenced by a written agreement or purchase
  order
• Internal Agency Threshold
• 25,000 but lt50,000 requires MFMP Direct Order
• gt50,000 requires a Two-Party Written Agreement
• One exception State Term Contracts
• Note Agencies are allowed to use the PCard for
  contractual services direct billings that do not
  exceed 75,000 in a State fiscal year

80
WRITING THE CONTRACT

• Basic Core Contract Layout
• Attachment 1 Recommended Format for the Statement
  of Work.
• Include Performance Specifications.
• Measures
• Definition
• Measurement Methodology
• Include Method of Payment

81
Attachment 1 (Statement of Work)

• Services to be Provided (What)
• Manner of Service Provision (How)
• Method of Payment (How and When)
• Special Provisions (Any additional clauses that
  were not previously addressed in the core
  contract, solicitation or Attachment 1)

82
A. Services to be Provided

• 1 Definition of Terms
• Contract Terms
• Program or Service Specific Terms
• 2 General Description
• General Statement
• Authority
• Scope of Service
• Major Program Goals
• 3 Service Recipients
• General Description
• Recipient Eligibility
• Recipient Determination
• Contract Limits

83
B. Manner of Service Provision

• 1) Service Tasks
• 2) Staffing Requirements
• Staffing Levels
• Professional Qualifications
• Staffing Changes
• Subcontractors
• 3) Service Location Equipment
• a) Service Delivery Location
• b) Service Times
• c) Change in Location and Times
• d) Equipment

84
B. Manner of Service Provisions Continued.

• 4) Deliverables
• a) Service Unit
• b) Reports
• c) Records and Documentation
• 5) Performance Specifications
• Outcomes and Outputs/Accountability
• Outcomes i.e., reductions in adverse conditions,
  scores, etc.
• Outputs i.e., specific number of activities that
  need to be completed.
• Standards Definitions
• Monitoring and Evaluation Methodology
• Performance Definitions

85
B. Manner of Service Provisions Continued.

• 6. Provider Responsibilities
• a) Provider Unique Activities
• b) Coordination with Other Providers and/or
  Entities
• 7. Agency Responsibilities
• a) Agency Obligations
• b) Agency Determinations

86

• CONTRACT DEVELOPMENT AND REVIEW PROCESS
• Laura Jennings
• Purchasing Manager
• Agency for Workforce Innovation

87
Contract Development

• Section Two, Part I of the Purchasing and
  Contracting Procedures Manual
• Contract Development Process
• Basic Core Contract
• Scope of Work
• Certifications
• Other Attachments
• Types of Contracts
• Contract Review, Approvals, Execution,
  Distribution and File Set Up

88
Review Approval Process

• s. 287.057 (19), F.S. Contractual Services
  gt50,000
• Each agency shall establish a review and approval
  process for all contractual services contracts
  costing more than the threshold amount provided
  for in s.287.017 for Category Three which shall
  include but not be limited to
• Program
• Financial, and
• Legal
• review and approval. Such review and
  approvals shall be obtained before the contract
  is executed.

89
Contract Routing Review Process

• Program Area
• Purchasing Manager
• IT Manager, if applicable
• Grant Manager
• Budget Manager
• General Counsel
• Executive Management Level Authority

90

• AMENDMENTS, RENEWALS AND EXTENSIONS

91
Contract Amendments

• There are two types of contract amendments
• Those that result in a Minor Revision
• A technical change that does not alter the
  contract objectives
• Examples
• Misspelled words
• Word omissions
• Transposed numbers
• Those that result in a Major Revision
• A major revision is a substantive change to the
  contract.
• Example
• Budget Modification
• New Clause
• Change in timeframes for completing objectives

92
Processing a Minor Revision

• Make a pen and ink change to the contract.
• All signers on the original contract must initial
  and date each change.
• Never white out or scratch out text simply
  draw a single line through the text. The
  original language must be legible.

93
Processing a Major Revision

• Requires a Contract Amendment.
• An amendment is a document which makes
  substantive changes to any part of an executed
  contract. A request to amend a contract may be
  initiated by either the Agency or the contractor.
  For example.
• Method of Payment
• Time period of the contract
• Cost of Services
• Services to be delivered.

94
Development of an Amendment

• Meet with the contractor to discuss any proposed
  changes
• If the contractor initiated the request, please
  have them submit the request in writing.
• Determine why the contract needs to be changed
  changes should only be made when there is
  sufficient justification for doing so.
• Assess the implications of the proposed change on
  the delivery of services, service units, cost of
  services, the ability of the contractor to render
  quality services, and the effect the change will
  have on the clients served by the contractor.

95
Developing an Amendment Continued.

• Conduct a cost/price analysis to justify changes
  in contract amount.
• Draft an amendment based upon amendment format.

96
Amendment Review Process

• Amendments must go through the same review
  process as contracts.
• Complete the Contract Review Form.
• Attach draft copy of amendment for review and
  approval.
• Attach copy of previously executed amendments
  and a copy of the executed original contract.
• Remember
• An amendment may not be retroactive.
• Expired contracts may not be amended.
• Amendments must be executed prior to the
  effective date.
• Amendments are to be signed by original contract
  signers.

97

• RENEWALS

98
Contract Renewals

• s. 287.057(14)(a), F.S., states
• Contingent upon satisfactory performance
  evaluation
• Subject to the availability of funds.
• s.60A-1.048(b), F.A.C., states
• Justification that the renewal is in the best
  interest of the State
• Maintain a copy of the justification in the
  contract file
• Contingent upon satisfactory performance
  evaluation
• Authorized by mutual agreement in writing
• Purchasing and Contracting Procedures Manual
• Page 86 incorporates the requirements listed above

99
Renewal Performance Evaluation

• See revised Renewal Template, dated 4/18/09
• http//www.floridajobs.org/forms/Renewal_Boilerpla
  te.doc

100
Contract Renewals

• Contracts for commodities or contractual services
  may be renewed on a yearly basis for a period up
  to 3 years after the original contract, or for a
  period no longer than the term of the original
  contract, whichever is longer.
• Renewal language must be included in the original
  contract (and bid/proposal/reply)
• Renewal is subject to same terms and conditions
  of the original contract.
• Renewal must be executed before the expiration
  date of the contract.

101
Renewal Exceptions

• A Renewal may not be processed for the following
  contracts
• Contracts resulting from an emergency
  procurement.
• Single Source procurement contracts.
• Contracts procured competitively if the costs of
  contemplated renewals was not included in the
  initial ITB, RFP or ITN.

102
Processing a Renewal

• Complete, sign and date the Contract Routing
  Review Sheet.
• Do not change contract start date, only update
  the ending date.
• Attach draft copy of renewal amendment and
  renewal performance evaluation to a copy of the
  fully executed contract, along with a copy of the
  vendor vs. sub-recipient checklist, and any
  previous amendments/renewals and forward to
  Purchasing (Contract Administrator) for agency
  review and approval.
• REMEMBER Renewals must be executed prior to the
  expiration date of the original contract.

103

• EXTENSIONS

104
Contract Extensions

• An extension is an increase in the length of the
  contract time period. It is processed by
  preparing an amendment.
• An extension does not allow for an expansion of
  the scope of services.

105
Reasons for Extending a Contract

• The Agency or the Contractor under estimated the
  time necessary to complete the contract.
• Arrival of a crucial piece of equipment needed to
  complete a task is delayed.
• Legitimate delay in contract start-up date
  results in unmet contract objectives and funds
  not being fully expended by the contract
  expiration date.

106
Conditions of Contract Extensions

• Amendment for extension must be executed before
  the contract expires.
• Extension period shall not exceed six months.
• Extended contract subject to same terms and
  conditions of initial contract.
• Extension granted only once, unless failure to
  meet the criteria set forth in the contract for
  completion of the contract is due to events
  beyond the control of the contractor.

107

• CONTRACT MANAGEMENT
• Laura Jennings
• Purchasing Manager
• Agency for Workforce Innovation

108
Who is a Contract Manager?

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

109
Roles and Responsibilities

• Enforcing the terms and conditions of the
  contract.
• Carrying out the preparations for contracting.
• Developing the Scope of Work (SOW).
• Developing evaluation tools for bid analysis.
• Negotiating contract, amendments, etc..
• Reviewing and approving invoices.
• Monitoring providers performance and corrective
  action plans, as necessary.
• Maintains a comprehensive Contract Manager File.
• Performing contract close out procedures.

110
Monitoring Responsibilities

• Compliance with Terms and Conditions,
• Getting what we pay for,
• Track fiscal responsibilities (are funds being
  used appropriately),
• Detect non-compliance, problem resolution,
• Corrective Action Plans, and follow-up,
• Acceptable level of services is being provided

111
Monitoring Plan

• Every Contract Manager is required to establish a
  written Contract Monitoring Plan, and it requires
  their Supervisors review and approval
• Written Plan should include the following
• Periodic Reporting
• Contract Deliverables by On-site Reviews and
  Observations
• Develop a checklist when deliverables are due
  (i.e., insurance certificates)
• Minimum annual review
• Client Surveys
• Other periodic contact and on-going monitoring
• Review of Audit Report
• Review and approval of invoice payments
• Signed Statement of Independence

112
Contract Closeout Process

• Begin 60 days prior to contract expiration.
• Documents Success or Failure.
• Reference point for future procurements.
• Complete the AWI Contract Managers Contract
  Closeout Guide check list.
• http//www.floridajobs.org/forms/AWI_Contract_Clos
  eout_Guide.doc

113
What is the Contract Manager File?

• A tool used by the Contract Manager to keep
  pertinent information related to a contract in a
  logical and coherent manner.
• The files are maintained for a period of 6 years
  following contract closeout or resolution of
  pending action.

114
Purpose of Contract Managers File

• State law requires that a file be maintained for
  every contract.
• Ensure that documentation exists to protect the
  agency, as well as, to clarify events, should a
  protest, audit or other situation arise.
• Provides pertinent information related to a
  contract.
• Provides required documentation on decisions and
  events related to the contract.

115
Contract Managers File

• Consists of two sub-files
• The procurement file The procurement file
  contains all documentation and information
  regarding the providers selection process before
  the contract is executed.
• The contract file The contract file contains
  all pertinent information related to a contract
  from the time it is awarded until contract
  closeout.
• General Services keeps the AGENCY CONTRACT
  ADMINISTRATORS originals. However, each
  Contract Manager should also maintain copies for
  their records.

116
Contract Managers File
File should be neat, complete and organized. The
following table is a DFS example in a multi-leaf
file folder organized into six main sections and
the respective, relevant contents.
117
Resources

• Florida Statutes
• Florida Administrative Code
• AWI Agency Addressed Memoranda
• DMS State Purchasing Memoranda
• DFS Reference Guide to State Expenditures
• DFS CFO Memoranda
• DFS Best Practices for Contract and Grant
  Management
• OMB Circulars
• MyFloridaMarketPlace Tool Kit
• Internet
• AWI Intranet
• Contract Monitoring Tool

118

• PROGRAMMATIC MONITORING
• John Herndon
• Unemployment Compensation Services

119
Monitoring Overview

• The Need for Monitoring
• Types of Monitoring
• Elements of Monitoring
• Monitoring Methods and Tools
• Programmatic Monitoring
• Contract Monitoring

120
The Need for Monitoring

• Monitoringwhat is it? An objective, on-going
  and reasonable evaluation that occurs throughout
  the contract period to ensure compliance with
  applicable laws, rules, regulations, policies,
  and contractual provisions.
• Why monitor?
• It is required.
• Ensures contractors compliance with the terms
  and conditions of the contract and applicable
  laws, rules, and regulations.
• Ensures Program area is getting what it needs and
  is only paying for what it contracted for.
• Enables early detection/prevention of
  non-compliance by identifying and resolving
  potential problems through constructive, timely
  feedback.
• Ensures necessary, timely, and appropriate
  corrective actions are taken.
• Ensures fiscal responsibilities--costs are
  allowable, allocable and documented.

121
Types of Monitoring

• Programmatic Monitoring
• Evaluates the contractors performance in meeting
  program areas contract scope of work.
• Evaluates contractor performance quality.
• Establishes historical data for potential future
  contracts with the Contractor.
• Contract Monitoring
• Ensures Agency compliance with federal and state
  requirements.
• Provides Agency oversight and ensures best
  practices, concerns and problems are shared
  throughout the Agency.
• Verifies payments are within the limits of the
  contract.

122
Elements of Monitoring

• Maintaining well documented, current contracting
  files.
• Identifying, reviewing, and analyzing Contractor
  reports.
• Tracking project milestones and timelines,
  contractor performance, and costs.
• Reviewing, approving, processing, and tracking
  invoices.
• Reconciling invoice payments.
• Monitoring Plans A formalized means of defining
  appropriate and specific monitoring methods.
  Determined by the type of contract, level of
  risk, amount of award, complexity of program,
  etc.
• Tailor monitoring plans and activities to the
  particulars of each contract.
• Documentation!

123
Monitoring Methods and Tools

• Determine monitoring methods and tools.
• May be impacted by the type of contract or
  funding and may include documentation,
  observations, surveys, interviews, tests, etc.
• Determine the nature, timing and extent of
  monitoring.
• Program complexity Complex programs have a
  higher risk of non-compliance and require more
  rigorous monitoring.
• Vendor/Sub-Recipient Risk Prior history,
  personnel changes, new systems and the status of
  the contract relationship impacts the level and
  frequency of monitoring.
• Amount of Contract Award The larger the
  contract award, the greater the risk and need for
  more rigorous monitoring.
• Identify the tools to be used to measure and
  assess performance and compliance.

124
Programmatic Monitoring

• Programmatic Monitoring deals with contract and
  program compliance requirements.
• Should answer the question are we getting what
  we contracted for?
• Includes both primary contractor and any
  sub-contractors.
• Evaluates and documents Contractor/sub-contractor
  performance.
• May be met by making on-site visits, reviewing
  contractor documentation, conducting periodic or
  client reviews, personal observations,
  conducting tests, reviewing state/agency audits,
  or any other activities that provides assurances
  of satisfactory contractor performance and
  project requirements are met as scheduled.
• Must be documented.

125
METHODS OF PROGRAMMATIC MONITORING

• Documentation may be written reports from the
  contractor, acceptance tests, client surveys,
  audit reports, invoices, e-mails, letters, and
  other forms of documentation etc.
• Observation includes on-site reviews to the
  contractors location or other locations where
  the services are being provided to evaluate
  progress, processes, and documentation first
  hand.

126
Tips for Effective Programmatic Monitoring

• Determine monitoring requirements, methods,
  tools, etc.. Ideally, this should be done during
  the RFP and contract development process.
• Maintain regular, effective contractor dialogue
  and review contractor performance and progress on
  a regular basis.
• When possible, conduct on-site reviews and
  interview contractor staff to determine their
  understanding or contractual requirements, review
  key documentation and observe operations.
• If applicable, conduct client surveys to
  determine service delivery quality and
  satisfaction and require the contractor to
  resolve complaints.
• Ensure the contractor complies with the AWI
  Program standards, regulations and contract
  provisions.
• Document monitoring results and ensure that
  appropriate corrective action is taken for any
  deficiencies.
• Follow-up to ensure that deficiencies have been
  timely and satisfactorily corrected .

127
Summary of Programmatic Monitoring

• The Contract Manager is responsible for the
  ongoing management of the contract.
• Maintaining a well organized contract managers
  file is a reflection of you.
• Effective programmatic monitoring ensures your
  contracts and the services meet your programs
  objectives.

128
CONTRACT MONITORING

• Financial Management Systems Assurance Section
• Henrietta Penny Lee
• (FMSAS)

129
Contract Monitoring

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

130
Why do have contract monitoring?

• AWI is charged by state and federal regulations
  with oversight of the funds it expends for
  contracted services.
• Contract monitoring encompasses administrative
  and performance standards expected to be met by
  the Agencys contractors according to their
  contracts and applicable federal state rules,
  regulations and instructions.
• AWIs contract monitoring procedures are subject
  to audit by state and federal agencies.

131
What information will be Reviewed?

• Contract/Direct Order
• Scope of Work
• Invoices and invoice process.
• Other file documentation that supports due
  diligence over the contract by AWI staff
• Other documentation outside of the contract file.
  (AWI policy, program rules, federal/state
  procurement instructions)

132
How do we complete the contract monitoring
process?

• Entrance Meeting Meet with program staff
• Review the contract
• Ensure the contract and contract file meet the
  minimum federal, state and AWIs procedure
  requirements
• Ensure the scope of work and deliverables are met
  based on contract language
• Review the invoices to ensure they are paid
  within and according to the terms and conditions
  of the contract
• Ensure that expenditures were made in accordance
  with applicable laws, rules and regulations were
  authorized by the agreement were directly
  related to the project and were properly
  supported

133
How do we complete the contract monitoring
process? (Continued)

• Identify and summarize testing results and any
  deficiencies noted
• Identify and summarize testing results and any
  best practices found
• Exit Conference