Lorraine A. Rodriguez - CPP Becky Pepping – CPP March 10, 2014

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Topics

     Public Works Service Order/Service Contract Prevailing Wage Procurement Card Request for Proposal (RFP) 2

Public Works

 Standard Bidding Options:  SB/DVBE Option - greater than $5,000.oo up to $250,000.00      (ICSUAM 5215.0 400 SB/DVBE option) JOC (Job Order Contract – a firm, fixed price, competitively bid, indefinite quantity type Contract designed to accomplish small to medium, multi-traded maintenance, repair and minor new construction projects) Design-Bid-Build Minor Projects $5,000.00 up to $634,000.00

Design-Bid-Build Major Projects Over $634,000.00

Design-Build (for Major Capital Outlay Projects only) CM @ Risk (Construction Manager at Risk Services with Guaranteed Maximum Price (GMP) (For Major Projects Only) *Capital Planning, Design & Construction - Construction Management *SUAM Section XII: 9700 – 9843 Construction Management 1/2014 3

Public Works (Continued)

 CPP Bidding Options:       SB/DVBE Option – Projects from $5,000.00 – $250,000.00 (utilizing Prequalified Contractors only – minimal bid package) *Contractors Prequalified via Contractor Prequalification Conference* JOC Option (standard JOC release) Mini-Bid Option – Projects $5,000,00 - $634,000.00 (utilizing prequalified contractors only – minimal bid package) Minor Bid Option – projects $5,000.00 to $634,000.00 (invite contractors – semi-annual advertisement, full bid package, contract general conditions) Major Bid Option – Projects over $634,000.00 (standard processing – full advertisement, full bid package, contract general conditions, financial prequalification) Design-Build – CM @ Risk Option – Standard RFP Process (Handout) 4

Service Order/Service Contract

 Service Order for Maintenance/Repair: • “Project” includes the erection, construction, alteration, painting, repair, or improvement of any state structure, building, road, or other state improvement of any kind. (Public Works) • “Maintenance” includes routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes, in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired. (Service Order/Service Contract) 5

Service Order/Service Contract (continued)

 Contracting Method: • “Simple” a simple repair, one which would not require most or all of the contract provisions found in the construction Contract General Conditions, like liquidated damages, schedule, etc. (Service Order/Contract) • “Involved” a very complex repair, one which would require most or all of the contract provisions found in the construction Contract General Provisions; the contract documents of choice for work that is complex in scope would be Project Documents. (Public Works) 6

Example

 Roofing: • Patching (simple): this maintenance work; prevailing wage applies, campus may use a service order/contract; is not a construction project. (Service) • Re-roofing (involved): this is maintenance work; prevailing wage applies, campus may not use a service order/contract; it is recommended to perform this work as a construction project. (Public Works) 7

Prevailing Wage

 Requirements:  Labor Code, Section 1771 – Except for public works projects of one thousand dollars ($1000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed, shall be paid to all workers employed on public works.

 Contracted Maintenance Work (service order/contract) over one thousand dollars ($1000) is subject to payment of prevailing wage.

 Modular Furniture – the assembly and disassembly of freestanding and affixed modular office systems over ($1000), must contain a citation of Labor Code section 1720 regarding prevailing wages for the services performed.

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Procurement Card (P-Card )

 Recent survey results from others campus  Allowable purchases  Audit procedures  Allowable/prohibited charges  Property, inventoried items, tagging  ATI/IT - ensuring accessibility  Hospitality items - appropriate use & approvals  Services – appropriate insurance  Travel – appropriate approval 9

P-Card – Cal Poly Pomona’s Fraud Penetration Case

 70+ cards jeopardized  US Bank fraud procedures blocked a single transaction  CPP conducted internal administrative review identifying additional cards  Cards were cancelled, closed out and new cards issued  Case involved CPP Police Department, US Secret Service, and US Bank  Results:  Improve fraud detection processes  Prevention of additional fraud attempts 10

P-Card – Program Controls

ensure that the organization is realizing the benefits and efficiencies associated with the cards

 Hard Controls – administrative  Soft Controls – policy, procedure, trainings  Detective Controls – reports & auditing 11

P-Card – Hard Controls

 Monthly / single transaction limits  Merchant category codes blocked  International vendors blocked 12

P-Card – Soft Controls

 Authorized Users are eligible employees only  Required User Training  Approving officials  Monthly reconciliation 

Span of Control: Transactions to cardholder / Cardholders to approver

 Conflict of Interest Trainings & Filings 13

P-Card – Detective Controls

 Back-end reporting & monitoring  Campus Auditing  US Bank Monitoring  System-wide Auditing 14

P-Card scenario

Please take 10 minutes to review and discuss the scenario (handout) regarding submission deadlines and lack of documentation.

 How would you handle this situation?

 Do you have written policies for this issue?

 What consequences do you employ, and when?

 What risks are associated with allowing cardholder to continue this behavior?

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Request for Proposals (RFP)

 Standard requirements should include:          Purpose/background Schedule of events/timeline Proposal requirements/submittal instructions Vendor qualifications Scope of work/services Proposal evaluation method & award General Provisions 508 compliance DVBE/Small Business 16

RFPs

 Key Factors – Campuses Discussion / Concerns  508 Inclusion  Criteria – points/rating  DVBE/SM  Scope  Preventing potential protests 17

RFPs – CPP Example

 Student Information Software Management RFP  Confidentiality/proprietary  508 Roadmap  Avoiding potential protest  Notice of Intent to Award  Public Records Request 18

RFP Scenario

A campus issued an RFP for outsourcing of their student health center. Only one response was received, but the proposer failed to sign the bid proposal form, a requirement of the RFP.

The current vendor did not submit a proposal, stating it was too expensive for their consultant to write a response to the campus request.

How would you handle this?  Consider the only submitted proposal as a minor irregularity  Disqualify the proposal as non-responsive  Other options?

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