lctcs procedures for submitting contracts september 13, 2007 lctcs september 2007 cfo meeting
TRANSCRIPT
LCTCS Procedures for Submitting Contracts
September 13, 2007
LCTCS September 2007
CFO Meeting
Contract or Not to Contract for Services?
- Can we do the services ourselves?– How do we find the right contractor?– How do we find the Cost Benefit Analysis?
Required for any contract $50,000 or more
If your campus performed the services, how much would it cost?
If another state agency could perform the services, how much would they charge?
OCR requires that you certify (for over $50,000 and over 6 months) that IT IS MORE BENEFICIAL TO CONTRACT WITH A PRIVATE ENTITY THAN WITH ANOTHER AGENCY. – Certification Letter
Types of Services
Personal – Services that require use of creative or artistic skills, such as but not limited to graphic artists, sculptors, musicians, photographers, and writers, or which 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.
Professional –An independent contractor who has a professed knowledge of some department of learning or science used by its practical application to the affairs of others or in the practice of an art founded on it, which shall include but not be limited to
lawyers, doctors, dentists, veterinarians, architects, engineers, landscape architects, accountants, and claims adjusters.
Consulting – An independent contractor who possesses specialized knowledge, experience, and expertise to investigate assigned problems or projects and to provide counsel,
review, design, development, analysis, or advice in formulating or Implementing programs or services or improvements in programs or services, including, but not limited to, such areas as management, data processing, advertising and public relations.
Most Restrictive – Requires a RFP or Sole Source Justification for
$50,000 and over http://www.doa.state.la.us/ocr/RequestForProposals.htmData Processing Consulting Services RFP's and subsequent contracts for more than $100,000 require the review of the Procurement Support Team.
Types of Services Cont’d
Social Service - Rendered by a person, firm, corporation, organization, governmental body, or governmental entity in furtherance of the general welfare of the citizens
of Louisiana, including but not limited to the following objectives: Rehabilitation and Health
Support, Habilitation and Socialization, Protection for Adults and Children, Improvement of Living Conditions and Health, Evaluation, Testing,
and Remedial Educational Services for Exceptional Handicapped or Learning
Disabled Nonpublic School Students Social Services contracts for $150,000 or more annually require a RFP
Performance Based Energy Efficiency - Contract for energy efficiency services and equipment in which the payment obligation for each year of the
contract is either:- set as a percentage of the annual energy cost savings attributable to the services or equipment under the contract, or- guaranteed by the person under contract to be less than the annual energy
cost savings attributable to the services or equipment under the contract.- Contact the Division of Administration for assistance in preparation of the requests for proposals,
analysis of the proposals, and development of the contract. The contract shall be considered a consulting services contract.
- Shall be awarded through a request for proposal process. Any performance-based energy efficiency contract entered into shall be for a period not to exceed 10 years and shall contain a guarantee of energy savings.
Types of Services Cont’d
Interagency / Intergovernmental – Interagency contracts between governmental entities as defined in R.S. 39:1484(23) for any of the services
that fall under Personal, Professional, Consulting, or Social Service shall be governed by these
regulations, except that contracts between boards of higher education and their respective institutions shall be exempt.
- No limitation
Operating - Procurement Code RS 39:1600
Laws That Govern Contracts
LA Constitution – Rules that govern OCR’s website and Cooperative Endeavor Agreements
LA Revised Statutes - Titles 38 & 39 – Contracts 39:1481-1526
Executive Orders – KBB 2004-54 – Anti DiscriminationKBB 2005-14 – Cooperative Endeavor AgreementsKBB 2006-22 – Emergency Procurements/Contracts
Other Agency Laws / PoliciesLCTCS Policy# 5.003 – Contract Submission and ApprovalSecretary of State – Guidelines for contracting with Out of State Corp.Ethics BoardOffice of State Purchasing – Memo OSP04-02 – IT/Software Consulting
What is the Cost?
Labor, time, hourly, monthly, annually, per project, per deliverable, per percentage of completion
Travel Expenses and Other Expenses – PPM 49
Is it less than or equal to $2,000? No need to contract unless legal risk involved (indemnification, insurance, ownership)
Is it between $2,000 and $20,000? The LCTCS has obtained prior delegated authority from the Office of Contractual Review, therefore contracts for $20,000 or less may be approved by the LCTCS signing authority without the need for OCR review and approval. All LTC contracts require LCTCS approval.
Is it $50,000 or more? – Consulting Services require RFP or Sole Source Justification - contracts awarded through a RFP process must contain additional information and documentation when submitted to OCR see website for details http://www.doa.state.la.us/OCR/contractsawardedrfp.htm
Is it over $250,000? Send Performance Evaluation to Legislative Auditors
LCTCS Procedures
– All LTC contracts must be signed by the campus Dean and their Regional Director prior to submission to the LCTCS for review.
– The LCTCS will forward all approved LTC contracts above $20,000 to the Office of Contractual Review.
– Two originals and one copy of the contract along with the appropriate letters must be submitted to Susan Smith, OCR Director. (Internal agency copies needed may be copied by agency upon return by OCR.)
– Contracts should be sent to Contractual Review prior to effective date of contract; however, if submitted later than sixty days after the effective date, you must provide written justification for the delay. In no case will a contract or amendment be approved if it is submitted after its termination date.
– All LTC contracts will be held in the LCTCS Finance Office until the required documentation is received. Once the contract has beenapproved by LCTCS, it will be forwarded for OCR approval.
THE CONTRACT
Please note that all contracts MUST include:
Scope of Services included on contract – not attached– Purpose, Goals and Objectives, Statement of Work
Deliverables with detailed payment terms (ex. a list of the classes to be taught along with the associated price for each class, reports) and schedule
Contains a maximum amount and schedule of payments to be made
Contains an itemized budget, if it is a cost reimbursement contract
Monitoring Plan and Performance Measures
THE CONTRACT Cont’d
When a contract includes travel and/or other reimbursable expenses, it contains language to effect the following: a. Travel and other reimbursable expenses constitute part of the
total maximum payable under the contract, or b. No more than ($_________) 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).
Contains contractor’s SSN or FEIN.
THE CONTRACT Cont’d
Contains the responsibility for payment of taxes, when applicable.
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.
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).
Contains an assignability clause.
Contains required anti-discrimination language (ADA).
Contains begin and end dates.
Required Documentation
The following documentation MUST accompany the contract (web link provided for sample letters):
Transmittal Letter , http://www.doa.state.la.us/ocr/transm.htm
Certification Letter, http://www.doa.state.la.us/ocr/cert.htm
Signed BA-22 Form, http://www.doa.state.la.us/ocr/ba22fnl.htm
LCTCS Approval cover sheet
Multiyear Justification Letter, if applicable http://www.doa.state.la.us/ocr/multiyrs.htm
Resumes for Consultants
Justification for Late Submittal Letter, if applicable http://www.doa.state.la.us/ocr/latesamp.htm
Board Resolution, If the contractor is a corporation, profit or non-profit, contract must be accompanied by a resolution from the Board of Directors of the corporation authorizing the signature for the corporation http://www.doa.state.la.us/ocr/brdresol.htm
Certificate of Authority, If the contractor is an out-of-state corporation http://www.sos.louisiana.gov/Portals/0/commercial/forms/326ApplicationofForeignCorporationforCertificateofAuthority.pdf
Disclosure of Ownership Affidavit, If the contractor is a for-profit corporation whose stock is not publicly traded, proof that a disclosure of ownership form has been properly filed with the Secretary of State’s Office http://www.sos.louisiana.gov/Portals/0/commercial/forms/320DisclosureofOwnershipCorporation.pdf
Justification for Advance Payment Letter, if applicable
Justification for Sole Source Vendor, if applicable
Justification for Emergency Contract, if applicable
Required Doc. Cont’d
Additional Approvals
Civil Service, unless exempted by Civil Service http://www.dscs.state.la.us/progasst/contracts/contractsexempt.htm
Attorney General and concurred with by Office of Risk Management for legal services contracts
Legislative Auditor if auditing services are involved
LCTCS Board of Supervisors if contract is $50,000 or greater
Office of Telecommunications if the contract contains any telecommunication services
Procurement Support Team (PST) for certain IT Consulting Services and Data Processing Contracts and RFP’s.
Essential Components of the Contract
Purpose– Why are we doing this?– What the contract, project, or grant will do AND for whom the contract
will do itExample – “The purpose of the contract is to provide training to update job skills by
teaching new computer technologies to 5, 273 employees so that technical or professional certification can be obtained to increase the quality of the labor force.”
Goals– What is the end result? – Establish direction and destination Example - “To improve the education and skills of the work force by providing
customized training in employee development, effective management and leadership and effective writing skills by partnering with ABC company to provide high quality training and employment opportunities thus enabling Louisiana workers to secure and retain jobs and continue to increase their earnings.”
Objectives
How are we going to reach our goal? Specific, Measurable Targets, Aggressive but Attainable, Result-Oriented, Time – Bound
Example:
“To provide an expert to the Dept. on genetic variation and genetic populations to support research to be completed by December 21, 2007.”
Statement of Work
Very Specific– What, How, When are they going to do it?
Describes the work the contractor will perform, description of and schedule of dates that the reports or other deliverables will be received.
Example – “24-hour telephone crisis intervention service. “The Phone” is for currently enrolled students and will be staffed by professionally trained and experienced personnel. Program Manager shall have an advanced degree in psychology, social work or other mental health field. Reports will be provided of the number of calls received to be submitted on a daily basis.”
Performance Measures and Payment Terms
Performance Measures Hand in Hand with SOW What will be used to measure performance? Should be measurable and time boundExample – “# of students who successfully complete the training within
one year” or “successful implementation of program by December 31, 2007”
Payment Terms Can be tied into SOW or Deliverables Should be scheduled so that services are rendered prior to payment Should be inclusive of all costs including travel and expenses (in accordance with
PPM 49) Include contractor’s method for submitting invoices Include procedure for paying invoices (ex. upon who’s (?) approval, net 30, etc.)
Monitoring Plan
Who? – Responsible staff member(s) or designee
When? – Frequency that the contractor will be reviewed/monitored
How? – Method used to monitor contractor’s output/services
Example –”The contract will be monitored by Dr. James Smith, Research Professor, on a monthly basis by meeting with contractor on a weekly basis to determine the percentage of completion of the research conducted”
Reports
Performance Evaluation or monitoring reports are the responsibility of the signer and/or person monitoring the contract and are due in the Office of Contractual Review within 60 days after termination of contract. Please be sure to include OCR# and PeopleSoft Contract# on report.
The following Quarterly Reports are submitted.– Report of Small Contracts - All contracts between $2,001 and $20,000 should
be submitted to the Office of Contractual Review and the LCTCS Senior Vice President for Finance and Administration.
– Contracts Submitted to OCR - A comprehensive report of all LCTCS Board Office and System contracts between $20,001 and $49,999.99 shall be submitted to LCTCS Board of Supervisors on a quarterly basis.
The Campus Reports, of the aforementioned, should be submitted to Toi Matthews, via email in an Excel format, 15 days following each quarter.
For additional guidelines and information, please review the Office of Contractual Review’s website at http://www.doa.state.la.us/ocr/index.htm.
Stress to your Contractors:
Timely Submittal of Requested Documents =
Prompt Approval and Payment of the Contract
Don’t Forget…
System Contract Officer
Please submit all contracts to:
Attn: Toi Matthews
LCTCS
265 South Foster Drive
Baton Rouge, LA 70806 Contact Info:
(225) 922-2607
(225) 922-1185 (FAX)