Transcript LCTCS Procedures for Submitting LTC Contracts

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?
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How do we find the right contractor?
How do we find the Cost Benefit Analysis?
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Required for any contract $50,000 or more
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If your campus performed the services, how much
would it cost?
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If another state agency could perform the services,
how much would they charge?
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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.htm
Data 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
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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
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LA Constitution – Rules that govern OCR’s website and Cooperative
Endeavor Agreements
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LA Revised Statutes Titles 38 & 39 – Contracts 39:1481-1526
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Executive Orders –
KBB 2004-54 – Anti Discrimination
KBB 2005-14 – Cooperative Endeavor Agreements
KBB 2006-22 – Emergency Procurements/Contracts
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Other Agency Laws / Policies
LCTCS Policy# 5.003 – Contract Submission and Approval
Secretary of State – Guidelines for contracting with Out of State Corp.
Ethics Board
Office of State Purchasing – Memo OSP04-02 – IT/Software Consulting
What is the Cost?
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Labor, time, hourly, monthly, annually, per project, per deliverable, per
percentage of completion
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Travel Expenses and Other Expenses – PPM 49
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Is it less than or equal to $2,000? No need to contract unless legal risk
involved (indemnification, insurance, ownership)
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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.
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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
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Is it over $250,000? Send Performance Evaluation to Legislative Auditors
LCTCS Procedures
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All LTC contracts must be signed by the campus Dean and their Regional
Director prior to submission to the LCTCS for review.
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The LCTCS will forward all approved LTC contracts above $20,000 to
the Office of Contractual Review.
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Two originals and one copy of the contract along with the appropriate
letters must be submitted to Susan Smith, OCR Director. (Internal agency
copies needed may be copied by agency upon return by OCR.)
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Contracts should be sent to Contractual Review prior to effective date of
contract; however, if submitted later than sixty days after the effective date,
you must provide written justification for the delay. In no case will a
contract or amendment be approved if it is submitted after its
termination date.
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All LTC contracts will be held in the LCTCS Finance Office until the
required documentation is received. Once the contract has been
approved by LCTCS, it will be forwarded for OCR approval.
THE CONTRACT
Please note that all contracts MUST include:
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Scope of Services included on contract – not attached
– Purpose, Goals and Objectives, Statement of Work
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Deliverables with detailed payment terms (ex. a list of the classes to
be taught along with the associated price for each class, reports) and
schedule
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Contains a maximum amount and schedule of payments to be made
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Contains an itemized budget, if it is a cost reimbursement contract
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Monitoring Plan and Performance Measures
THE CONTRACT Cont’d
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When a contract includes travel and/or other reimbursable expenses, it
contains language to effect the following:
a. Travel and other reimbursable expenses constitute part of the
total maximum payable under the contract, or
b. No more than ($_________) 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).
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Contains contractor’s SSN or FEIN.
THE CONTRACT Cont’d
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Contains the responsibility for payment of taxes, when applicable.
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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.
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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).
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Contains an assignability clause.
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Contains required anti-discrimination language (ADA).
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Contains begin and end dates.
Required Documentation
The following documentation MUST accompany the contract (web
link provided for sample letters):
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Transmittal Letter , http://www.doa.state.la.us/ocr/transm.htm
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Certification Letter, http://www.doa.state.la.us/ocr/cert.htm
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Signed BA-22 Form, http://www.doa.state.la.us/ocr/ba22fnl.htm
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LCTCS Approval cover sheet
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Multiyear Justification Letter, if applicable
http://www.doa.state.la.us/ocr/multiyrs.htm
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Resumes for Consultants
Required Doc. Cont’d
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Justification for Late Submittal Letter, if applicable
http://www.doa.state.la.us/ocr/latesamp.htm
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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
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Certificate of Authority, If the contractor is an out-of-state corporation
http://www.sos.louisiana.gov/Portals/0/commercial/forms/326ApplicationofForeignCorporationforCertificateofAuthority.pdf
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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
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Justification for Advance Payment Letter, if applicable
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Justification for Sole Source Vendor, if applicable
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Justification for Emergency Contract, if applicable
Additional Approvals
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Civil Service, unless exempted by Civil Service
http://www.dscs.state.la.us/progasst/contracts/contractsexempt.htm
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Attorney General and concurred with by Office of Risk Management
for legal services contracts
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Legislative Auditor if auditing services are involved
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LCTCS Board of Supervisors if contract is $50,000 or greater
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Office of Telecommunications if the contract contains any
telecommunication services
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Procurement Support Team (PST) for certain IT Consulting Services
and Data Processing Contracts and RFP’s.
Essential Components of
the Contract
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Purpose
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Why are we doing this?
What the contract, project, or grant will do AND for whom the contract
will do it
Example – “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.”
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Goals
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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
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How are we going to reach our goal?
Specific, Measurable Targets, Aggressive but
Attainable, Result-Oriented, Time – Bound
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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
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Very Specific
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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
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Hand in Hand with SOW
What will be used to measure performance?
Should be measurable and time bound
Example – “# of students who successfully complete the training within
one year” or
“successful implementation of program by December 31, 2007”
Payment Terms
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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
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Who? – Responsible staff member(s) or designee
When? – Frequency that the contractor will be
reviewed/monitored
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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
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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.
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The following Quarterly Reports are submitted.
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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.
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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.
Don’t Forget…
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For additional guidelines and information, please
review the Office of Contractual Review’s website at
http://www.doa.state.la.us/ocr/index.htm.
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Stress to your Contractors:
Timely Submittal of Requested Documents =
Prompt Approval and Payment of the Contract
System Contract Officer
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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)
[email protected]