Transcript Slide 1
Service Provider Training Module
Training Agenda
Update the Schools and Departments with the new Agreements in place and where they can be found on our Website
Purchasing Role
What is a Service Provider
Services Agreement Process
Review the Existing/New Forms
What is an Independent Contractor
Highlight the Insurance Requirements for All Consultants
Review Commodity Codes
Guide Users through New and Improved Website
2 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Purchasing Role in the Process
Purchasing is the central point of contact for all Agreements where there are services being provided to the University
Purchasing is responsible for coordinating the necessary University resources (Office of the General Council, Risk Management, Medical Compliance, etc.) in order to bring agreement’s to conclusion
Departments having contract questions from suppliers should contact Purchasing for review and commentary
Purchasing coordinate’s between the University and the supplier during contract negotiations
Only those designated by the University Trustees are permitted to Sign Agreements on behalf of Columbia We Have a Shared Responsibility in the Process
3 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Why do we have Purchasing Policies, Practices and Processes?
Employ Best Business Practices Create Opportunity Spend Dollars Wisely Reduce Liability Reduce Reputational Risk Meet Audit Requirements Meet IRS Regulations Comply with Various Government Organizations (e.g. FAR , OMB , etc) Statutory Requirements
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FAR – Federal Acquisition Regulation: Basic Rulebook for Government Contracts OMB – The Office of Management and Budget Value for Money
What is a Service Provider at Columbia?
“Professional Services to accomplish the objectives of the
University when such Services are specialized, highly technical, and cannot be economically or satisfactorily performed by University employees as part of their normal duties.
”
Current Service Provider Statistics:
~1,000 Agreements reviewed each year for services ranging from Web Designer to Business Consultant to Architect Value of Service Agreements ranges from couple hundred dollars to the millions of dollars
A Temporary or Casual Employee is NOT a Service Provider
Hired for a special project or as a short-term replacement Paid for the exact hours worked and processed through the timesheet submission Rates of pay and job duties are established by each department Usually limited to four consecutive months – there are no fringe benefits 5 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
What is a Service Provider?
Engineers Architects
“Service Provider”
Web Designers Graphic Designers Business Consultants Auditors Engineers Accountants Strategic Consultants PR & Marketing
6 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Service Agreements Process
Option Review Defining Your Needs Sourcing Your Needs Finalizing an Agreement Purchase Order
Developing Statement of Work, Time Lines, Quality & Service requirements, etc.
Contact the Purchasing Office for Advice and Review
University Wide List (UwPA)
Identifying Vendors
Obtaining Bids
Confirming Order
Validating Vendor
Negotiating Terms and Conditions
Creating a Requisition
Getting Necessary Signatures
Ensuring Insurance Requirements are Met
Obtaining approvals such as Prior approvals, DAF and Sole/Single Source Approval
Resolving Intellectual Property Issues
Reviewing with Purchasing including Compliance and Exceptions
7 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Purchasing Bid and Justification Policies
$1 - $24,999 (non-UwPA)
•
Requires one of the following:
• Written Bid(s) • Proposal(s) • Quote(s)
$25,000 or Higher (non-UwPA)
•
Three Written Bids, Quotes or Proposals
• Single/Sole Source form must be approved by Senior Level Officer in the department prior to submission to Purchasing at this dollar threshold.
• Make sure your justification clearly defines WHY you chose to Sole/Single source and provide a clear cost reasonableness.
$0 and higher UwPA (University wide Purchase Agreement)
•
Requires:
• Written quote or proposal and • Executed Scope of Work 8 Note: UwPA: University Wide Purchase Agreement
Why are Agreements Important to Columbia University?
Indemnification Limitation of Liability Use of Columbia Confidential Information Terms/Conditions
To secure against loss or damage and provide compensation Protects CU and Supplier Reduces Responsibility to determine accountability of the Services performed Protects CU and Supplier Protects all information for University and Supplier
Protects the University Acceptance of Deliverables/Work Product
Ensures we get what we are paying for and sets expectations
Ownership of Work Product
Defines exclusive right to results and the by products of an engagement
Use of Columbia University Name
Protects the Reputation of Columbia University 9 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
A Purchase Order or Agreement for my Service?
Go to the Purchasing Website to review Service Provider Grid Purchase Order Only
• Binding Contract between the University and the Supplier • Requires
SOW
• Required upon request Certificate of Insurance
Agreement
• Binding Contract between the University and the Supplier • Requires
SOW
• Agreement requires submission Certificate of Insurance 10 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Why a PO versus PO + Service Agreement?
Risks varies from a Service Agreement because of the type of services being rendered (SA) Service Agreements have flexibility to negotiate terms/conditions (SA) Insurance Requirements (PO, SA) Validate authorization, charges the appropriate accounts and gives the approval for the purchase (PO, SA) It is the ONLY mechanism to encumber the funds (PO) It helps keep track of these type of agreement relationships (PO) It is the best way to administer centrally on a systemic basis (PO) 11 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
The Process to Submit an Order for a Service Provider
All orders (Purchase Requisitions) are processed through the Financial Front End (FFE) system and require a DAF to Provide Approval for the Order Once you submit your transaction, a Central Purchase Order Requisition will be provided to you electronically. Refer to the Requisition Checklist for ALL the Supporting Documentation Needed for a NEW Requisition
–
Pink: Existing Suppliers in Purchasing System even though worked with supplier previously.
– –
+ Blue: Depending on the $ Threshold + Green: Access Patient Health Information Once a PO is generated, you will be able to pay the Service Provider Requisition Checklist
Approved Requisition – DAF Authorization Valid Certificate of Insurance (COI) for Service Agreements Only Signed Agreement by Supplier does not apply to PO only Commodities Scope (Statement) of Work (SOW) RFP Summary Sheet Sole/Single Source Justification (Greater than $25K)
Independent Contractor Verification Worksheet (does not apply to LLC or Incorporated Suppliers) aka Consultant Worksheet Resume/Company Brochure Vendor Questionnaire (refer them to Purchasing Website “For Vendors” If Applicable, Business Associates Addendum signed by CU Medical Center Compliance Officer
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Accuracy is Key, so Make Sure ALL Documents are Submitted to Purchasing for Timely Turn Around for a PO
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Forms/ Supporting Documents
Document Scope of Work (SOW)
Clearly outline what you are buying, when, how and where prior to the start of service delivery ~ key to a successful engagement with your supplier
Vendor Questionnaire
Provides data regarding the vendor that has been input and verified by Purchasing.
Client List
Provides a list of the vendors current and past clients.
Resume What is Included What to do
Scope of Services Requested Detailed Description of Services Objective If applicable, key Deliverables (Phases) Resources to complete the Scope What is the final product/service?
Payment Terms Signatures This on-line form is to be completed by all vendors that have not been used previously through the Purchasing system or are making updates to their information.
Work Experience, Dates, Clients Go to the Purchasing website for access to the standard SOW template. This must be used for Service Providers that are only required to use a Purchase Order and Service Agreement.
Provide your vendor with the site address or contact Purchasing so that we are able to contact the vendor for updates.
http://procurement.columbia.edu/purchasin g/qualification/index.html
Customer listing provided by vendor. This enables us to verify that Columbia is not the only customer for a vendor. This enables us to ensure that the vendor meets the IRS definition of independent contractor.
Contact Purchasing for assistance.
Contact Purchasing for assistance.
Provides extensive experience in their field
Brochure
Provides information regarding the services available to any customer. Available via print or website
Service offering Locations Key Principals Customer List 13 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Contact your vendor for access to their promotional brochure or web site.
Forms: What is an Independent Contractor
(aka Consultant Worksheet)
– Based on IRS Standards?
“
A business firm or an individual that contracts with the University to provide services for which the University controls or directs at most the result of the service, not the means and methods of accomplishing the result.”
Independent Contractor Certification
– According the IRS, should the Service Provider be treated as an employee or an Independent Contractor? (Payroll Tax Withholding) – New York State withholds Workers Compensation and Unemployment Tax Withholding Before the performance of services commence, departments contracting for services must assess the relationship with the individual providing services to ensure that individuals hired or contracted to perform services are properly classified as an employee or an independent contractor. The three main categories for determining whether a relationship should be categorized as an employee or independent contractor are: 1.
Behavior Control 2.
Financial Control 3.
The Individual’s Relationship with the University 14 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
IRS Litmus Test for Independent Contractor vs. Employee
Behavioral Control Behavioral controls are evidenced by facts that determine whether the employer has a right to direct and control how the individual performs the tasks for which the individual is hired, including the type of instructions the employer gives the individual and how the individual obtains training for providing such services.
Financial Control Financial controls are evidenced by facts that determine whether the employer has a right to direct or control the financial/business aspects of the individual's business activities, including (1) the extent to which the individual is reimbursed for business expenses, (2) the extent of the individual's investment in the business and whether a profit or loss is realized, (3) the extent to which the individual offers similar services to the relevant market, and (4) how the employer pays the individual, such as hourly, salary, or a flat fee.
Type of Relationship The relationship between the individual performing services and the employer is evidenced by examining how the employer and the individual perceive their relationship, including (1) whether a written contract exists explaining the employer's and individual's intent, (2) the provision of, or lack of employee benefits, (3) the permanency of the relationship, (4) the right to terminate the relationship, and (5) the extent to which services are performed that are a part of the employer's regular business activities.
.
- An employee must comply with instructions about when, where, and how to work. Even if no instructions are given, the CONTROL factor is present if the employer has the right to give instructions.
- An employee can quit his/her job at any time without incurring liability. An Independent Contractor usually agrees to complete a specific job and is responsible for its satisfactory completion, or is legally obligated to make good for failure to complete it.
15 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Insurance Requirements: Commercial vs. Professional
Commercial General Liability • Provides coverage for your business if an individual or another business claims your company or your employee was negligent and responsible for bodily injuries, property damage, financial loss, personal injury or advertising inquiry • Contractual Liability •Breach (Confidentiality, SOW) • Pays for Defense Costs Professional Liability • Designed to pay for economic damages caused by negligent acts, errors or omissions for which you’re legally liable.
• Protects you if, in your professional capacity, you do or fail to do something that causes financial loss to a third party.
• Covers professionals as Doctors, Lawyers, Executive Search, Accountants, Data Analysis, PR/Marketing, Web Designers
Examples:
A visitor could slip, a competitor could sue for false advertising, a client could sue for damage to their property value while in your care, a former client could sue for libel or slander 16 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Examples
: Failure to perform services as requested or design, misrepresentation, failure to make recommendations, breach of client confidentiality, unintentional dissemination of false or misleading info.
Insurance Requirements: Umbrella Policy
“Umbrella Insurance”
Commercial General Liability Automobile
Is an option that can be utilized by Service Providers in the event their primary Commercial General Liability and Automobile are not sufficient to meet University requirements.
An example – if the Service Provider has $500K in CGL and AL and the CU requires $1MM, Service Provider can purchase an additional $500K Umbrella Policy that would cover both. The Purpose of Insurance is to Mitigate and Manage Risk to the University which Will Not be Waived.
17 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Sample ACORD Certificate of Insurance (COI)
A Certificate of Insurance is an articulation of a firms coverage.
Purchasing will need an updated COI for each Requisition even though the supplier is performing multiple projects for the University
The COI is renewed on an annual basis
Per Service Provider Agreement, Section Titled “Insurance, 1(a), “Products and completed operations insurance shall be maintained for 3 years following termination of this Agreement.” The last two sections must read… PO Suppliers will not be Required to Provide a COI however, this will not Release them of the Obligation to carry the Appropriate Coverage
18 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Process Flow – Purchase Order and Standard
PO
Users Defines Need User Creates Scope of Work Identify Suppliers
Collaborative
Procurement Website Request Supporting Doc.
Initiate Req. in FFE Required Departmental Approval and Release Req.
Use PO Agreement Submit Support Docs Please refer to Service Provider Grid for details needed for PO.
Procurement Requests Add’l Info.
Procurement Reviews Final Review by Procurement PO Issued
Standard
Users Defines Need User Creates Scope of Work Identify Suppliers Procurement Website Request Supporting Doc.
Initiate Req. in FFE Required Departmental Approval and Release Req.
Use Standard Agreement
Collaborative
Submit Support Docs Please refer to Service Provider Grid for details needed for Standard Agreement.
Procurement Requests Add’l Info.
Procurement Reviews Final Review by Procurement PO Issued
A clearly defined Statement (Scope) of Work is needed for both.
19 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Process Flow – Custom
Custom
Users Defines Need User Creates Scope of Work Identify Suppliers
Collaborative
Procurement Website Request Supporting Doc.
Initiate Req. in FFE Required Departmental Approval and Release Req.
Use Custom Agreement Submit Support Docs Obtain Supplier Position OGC and Risk Procurement Requests Add’l Info.
Feedback to cust. and/or supplier Supplier Agrees w/Agreement and SOW Updates Timely process Procurement Reviews Final Review by Procurement PO Issued
A clearly defined Statement (Scope) of Work is needed for both.
20 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
What is a Change Order?
Change Orders
1.
2.
3.
Agreements will not be extended beyond 3 years regardless if services remain the same.
Make Sure you provide detailed supporting documentation Ensure Certificate of Insurance is up-to-date
Four Types of Change Orders Change Order 1 Change Order 2
Extension to the Period of Performance Increase in Dollar Value, same Scope
Change Order 3
Extension to Period and Increase
Change Order 4
Change in Language of the Executed Agreement •
Example:
Valid
CO: Executive Search Firm Change Order where the Salary is Higher than Expected or the Search takes longer. •
Invalid
CO: If it is a New search, a New Requisition will need to be processed with 21 New Support Documentation.
NOT Change Order
Changes in SOW beyond Original Scope
Process Flow: Change Order and Financial
CO
Change Order Request Is PO Open?
Yes Fin System Request No Justification Email to Procurement to Open File Review Process Begins Require Departmental Approval and Release Req.
Generates PR Faxsheet Submit Support Docs Procurement Reviews Procurement Requests Add’l Info.
Financial
Financial Change Order Is PO Open?
Yes Fin System Request No Justification Email to Procurement to Open File Review Process Begins Require Departmental Approval and Release Req.
Info Submitted to Controller’s Office Reviewed by Controller’s Office Process Change Order CO Approved Updates Completed 22 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
University-wide Purchasing Agreements (UwPA)/Master Agreements
What are UwPAs?
– Negotiated or bid contracts with select vendors – – – Best value No need for additional bids For a complete listing of all UwPAs, visit: http://www.columbia.edu/purchasing/purch/pv_list.html
What are Master Agreements?
– These are agreements where the contract terms & conditions have been negotiated and on file with Purchasing – This does not preclude the competitive bidding process and is required for these agreements, but if awarded only a standard University Scope of Work document is required as supporting documentation to the request.
Always BEST to Refer to the UwPAs when Possible for Savings!
23 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Changes For 2009 Service Providers Transaction Process
Greater Collaboration Improved Communications Refined Processes • Purchasing will work with Schools and Departments to ensure the proper documentations are completed to ensure a timely PO issued for purchases • Purchasing will be offering training to individuals to ensure support documents are precise and to expectation to avoid any bottlenecks in the process • Require Requisitions to be submitted PRIOR to work starting • PO specific Service Providers • Continue to Evaluate Alternative Processes
Go to the Service Provider Website which Provides Necessary Documents and Insight
24 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Purchasing Will Support You With A Range Of Project Management Activities
From the Purchasing Office Service Agreement Team, you can expect:
Weekly Requisition Status Management Plan of Overall Process for Sourcing a Need Check-Ins with the Transactions Support for Onboarding and Training Update WebPur with Notes Update on Open Questions Ad-Hoc Transaction Support
We’re All In This Together!
25 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
How do I Submit Documentation to Purchasing?
Through one of 3 methods:
BEST: Email documents to Purchasing using the Fax Server
– – Email to [email protected]
Indicate
ONLY
the Purchase Requisition Number (RAXXXX) in the Subject Line of the email (Add sample email) – Attach all supporting documents
GOOD: Fax documents to Purchasing Using the Fax Server.
– – Fax number: 212-854-2699 Fax coversheet: http://www.columbia.edu/purchasing/forms/pdf/faxcoverletter.pdf
LEAST: Inter-campus Mail or Dropping it off at the Purchasing Office Please Make Sure to Include Requisition Number on Fax Sheet and Make Copies
26 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Update Your Contact Lists for Service Agreements!
Name Email Phone Number Carlos Arias [email protected]
212.851.7346
Service Provider Team Fatima Suarez [email protected]
212.854.7551
Joe O’Brien [email protected]
212.854.3664
27 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Need Information?
Available Resources to Assist You
Purchasing Website: http://www.columbia.edu/purchasing Complete Listing of UwPAs News Updates Library of Standard University Forms Link to Accounts Payable Procedures Link to WebPur Link to Risk Management Website
Purchasing Policies and Guidelines
28 Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html