Transcript Compare and Contrast Delegated Authorities for Office of

IPMA Forum 2002
“IT Services Contracting –
Best Practices”
Or
We didn’t make the rules, but let’s make
the most of them…
5/21/02
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Presenters:
Lourdes Collins, DIS
 Susan Johnsen, OFM
 Steve Demel, GA
 Don Cotey, Milestone Technology
 Glenn Briskin, Sierra Systems
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Authorities and Approvals
SERVICES
PURCHASED SERVICES
•Function is performed under agency direction where
typical management authorization and work methods
are maintained and are not at the discretion of the
contractor.
•Services are more routine or repetitive and meet more
general needs of the agency.
•Follows established or standardized procedures.
PERSONAL SERVICES
•Function is performed independent from control of
the agency; consultant maintains control of work
methods. Work is more creative or original.
•Services are more specialized.
•Exercises judgment and discretion in accomplishing
outcome.
•Decision-making is made on more routine activities in
support of a project or activity.
•Decision-making is at a level that determines the
strategic direction of the project and/or includes
non-routine activities or events.
•Payment is typically based on hourly rates.
•Payment is typically deliverables-based.
GA
DIS
DIS / OFM
Non-IT Purchased
Services, e.g., temporary
office & accounting
services, janitorial, bldg.
maintenance, conducting
predetermined surveys,
conference coordination,
etc.
IT Purchased Services
e.g., programming, PC
maintenance, network
back-up services, help
desk support, delivering
agency-designed IT
training etc.
IT Personal Services
e.g., IT:software
systems design; quality
assurance, feasibility
studies, etc.
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OFM
Personal Services e.g.,
consulting services, legal
services, actuarial services,
strategic planning, survey design
and results analysis; conference
coordination
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Authorities and Approvals
What about projects that have elements
of both personal and purchased
services?
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Agency should determine the primary purpose of the
contract.
When hardware purchases or programming services
are part of a project that is primarily for personal
services, then the entire contract is designated as a
personal service.
Projects with IT components must comply with ISB IT
policies and standards.
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Authorities and Approvals
ISB/DIS approval, if required, is
obtained in advance of the solicitation.
 OFM filing and review or approval of the
contract is obtained after award, but
prior to start of work.
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Authorities and Approvals – DIS
When do you need DIS/ISB approval?
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Costs greater than delegated authority
Level 2 or 3 Severity & Risk
Under ISB oversight
• 902 Proviso
• ISB Discretion
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Authorities and Approvals – DIS
Delegated Authority
The ISB delegates IT purchasing authority to agency
directors who are in compliance with IT portfolio
management policies and standards.
The three basic levels of delegated authority are:
 $50,000 for agencies with 49 or less total agency FTEs.
 $250,000 for agencies with 50 to 149 total agency FTEs.
 $1 million or greater for agencies with 150 or more total
agency FTEs.
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Authorities and Approvals – DIS
Level 2 & 3 Severity & Risk Criteria Defined in the IT Portfolio Management
Standards
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Impact on citizens
Visibility to the public and Legislature
Impact on state operations
Consequences of not doing the project
Impact of the project on the organization
Effort needed to complete the project
Stability of the proposed technology
Agency preparedness
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Authorities and Approvals - DIS
IT Purchased Services Competitive
Thresholds:
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0 - $9,999 – Direct Buy
$10,000 – 99,999 – at least 3 vendors, verbal or
written rqmts, ads discretionary
$100,000 – 249,999 – at least 5 vendors, written
rqmts, ads discretionary
$250,000 and up – ads required, include all vendors
responding, written rqmts
Contact DIS for further details
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Authorities and Approvals – DIS
For IT personal and purchased
services, use DIS model contracts.
 For more information see:
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http://www.wa.gov/dis/portfolio
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Authorities and Approvals - OFM
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Personal Service Competitive
Thresholds
• $5,000 - $19,999 – informal competition –
at least 3 vendors, written rqmts, ads
discretionary
• $20,000 or more – formal competition, ad
required, all vendors responding, written
rqmts
• RCW 39.29
• OFM Web Site
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Acquisition – Most Important
Step
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Clear Statement of Work/Scope of Work
• Identify project requirements
• Determine your desired business
outcomes
• Establish key deliverables and associated
milestones
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Acquisition – Hourly Rate vs.
Fixed Bid
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Time and materials (hourly rates), fixed bid,
or a combination
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Well defined deliverables and cost drivers - FB
Deliverable and cost driver definition needed – TM
Need to transfer risk, OK to transfer control - FB
Have strong mgt , just need productive cost
effective staff – TM
• Combination approach
• ISB or agency policy/guidelines may dictate
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Acquisition – RFP/RFQ –
Evaluation Criteria
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Determine your evaluation approach
• Focus on evaluation criteria important to
you
• Weight the criteria to reflect their
importance
– Cost and non-cost factors
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Acquisition – RFP/RFQ
Evaluation Criteria
• Appropriately express your needs and
constraints to get consistent responses
and encourage competition
• Use references effectively
• Don’t over complicate
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Contract Approvals - OFM
 Contract
Filing Thresholds for
Personal Services
• Sole source contracts of $5,000 or
more
• Competitive contracts of $20,000 or
more
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Contract Approvals - OFM
There are two types of contract filing –
“Review” or “Approval”
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OFM Review = Review contract and make
recommendations as needed – Agency can
sign and start work immediately
OFM Approval = 10 day waiting period
required before work begins – review contract
and may require changes – may disapprove
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Contract Approvals - OFM
“Review” vs. “Approval” depends on
acquisition method, size, and type of
work - Examples Subject to OFM
Review
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Enhancements to existing systems
IT systems analysis services
IT network implementation services
On-call IT technical services
(If sole source of 20K or over, subject to OFM approval.)
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Contract Approvals - OFM
Examples of IT Personal Service Contracts Subject
to OFM Approval
• Design, development and implementation of a
major information processing system
• Re-engineering of major information technology
systems
• Quality assurance on IT systems
• Development of IT strategic plans
• Conduct of IT feasibility studies
• Project management services
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Contract Approvals - OFM
Sole Source Filing Requirements:
• All sole source 5K or more must be filed
• All sole source filings require 10 day
waiting period
• All sole source 20K or more require
approval
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Contract Management - Good
Working Relationship
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Require a project charter defining high level
expectation, roles, responsibilities, decision
making needs
• Get assumptions on the table
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Emphasize good project management
discipline
• Issue and change management
• Clear acceptance criteria
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Open and complete communications
Work as a team
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Contract Management Technology Transfer
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Depends on type of contract – FB vs. TM
Depends on your commitment to having
qualified resources available
Look for ways to create a team and work
together
Build team involvement and technology
transfer into the work plan
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Include staff in project and phase kickoffs
Involve staff in producing deliverables
Include staff in reviews of deliverables
Train staff at turnover time
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More Information
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OFM – http:/www.ofm.wa.gov
DIS – http:/www.wa.gov/dis/portfolio
GA – http:/www.ga.wa.gov/pca/ps2
Lourdes Collins, [email protected]
Susan Johnsen, [email protected]
Steve Demel, [email protected]
Don Cotey, [email protected]
Glenn Briskin, [email protected]
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