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COUNTY CONTRACT COUNTY CONTRACT WEBINAR TRAININGWEBINAR TRAINING

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AGENDAAGENDA1. Welcome & Introductions 9:00 – 9:10

2. Scope of Work/Budget Display 9:10 – 9:30

3. Contract Process/Timelines 9:30 – 9:50

4. Terms & Conditions and Additional Provisions 9:50 – 10:10 GTC–610 NEW! Right to Terminate – NEW! Federally Funded – NEW! Subcontracting – NEW! Insurance for Hazardous Activities – NEW! County Resolution/Board Minutes

5. Invoice Process/Timelines 10:10 – 10:30

6. Questions 10:30 – 11:00

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OVERALL PURPOSEOVERALL PURPOSE

To educate you on CDFA contract process.To educate you on CDFA contract process. To provide you with better understanding of To provide you with better understanding of

CDFA’s reasons for delays. CDFA’s reasons for delays. CDFA to better understand county contract CDFA to better understand county contract

process and reasons for county delays.process and reasons for county delays. Determine what changes can be made to timely Determine what changes can be made to timely

execute contracts prior to contract start date.execute contracts prior to contract start date. Streamline CDFA/County contract process.Streamline CDFA/County contract process.

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TRAINING GOALS AND TRAINING GOALS AND OBJECTIVESOBJECTIVES

Identify roles and responsibilities of CDFA Staff in the contracting process

Understand contract processing timelines and reasons for delay

Define contract elements Knowledge of recent changes to state

contracting language and requirements Understand invoicing process

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CDFA ROLES AND CDFA ROLES AND RESPONSIBILITIESRESPONSIBILITIES

Program Staff Determine need for services With assistance from you, prepare Scope

of Work (SOW) and Budget Prepares and submits contract request Contract Management

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CDFA ROLES AND CDFA ROLES AND RESPONSIBILITIES CONT.RESPONSIBILITIES CONT.

Contracts Office (CO) Staff Review contract request, SOW and budget for

completeness and accuracy Develop contractual document Prepare contract to send to county for approval

and signature Analyze returned contract and required

documentation Prepare and submit contract for final

signature/execution Distribute executed contract

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SOW & BUDGETSOW & BUDGET

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CONTRACT ELEMENTSCONTRACT ELEMENTS

Main Elements of Contract:

SOW and Budget Display.

CDFA Program staff and/or county will develop SOW and Budget to send to counties to complete.

Contents of SOW and Budget are linked to reflect and/or match the same information.

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SOW PROCESSSOW PROCESS

CO pre-reviews the SOW for completion and accuracy. (This process is usually done before counties are asked to submit a budget).

Does it specify CDFA’s role versus the county’s Does it specify CDFA’s role versus the county’s role?role?

Does it detail the work to be done?Does it detail the work to be done? Does it list a program point of contact?Does it list a program point of contact? Does it specify how the county will get Does it specify how the county will get

reimbursed?reimbursed? Does it meet DGS requirements?Does it meet DGS requirements?

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REMEMBER….REMEMBER….

The SOW only details the work to be done.The SOW only details the work to be done. It does not provide step-by-step directions on It does not provide step-by-step directions on

“how to” do the work.“how to” do the work. Ensure all appendices and attachments are Ensure all appendices and attachments are

attached if stated in SOW.attached if stated in SOW. When county contracts with CDFA each year for When county contracts with CDFA each year for

the same project, do not assume there are no the same project, do not assume there are no changes to the SOW.changes to the SOW.

Your feedback and your communication are Your feedback and your communication are important.important.

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BUDGET DISPLAYBUDGET DISPLAY Budget solicitation from counties is a multi-step process.

The budget displays and SOW are linked to reflect the same information.

Incomplete and/or inaccurate budget displays submitted to CDFA are top reasons for delays to timely submit to CO for processing.

Most budget displays are produced in Excel using formulas.

Budgets are reviewed by program staff to ensure mathematical accuracy and may be audited by program staff for other material.

Budget calculations (vertically and horizontally) must balance to the penny (or round to the nearest dollar) by hand calculator, otherwise returned to the counties for correction.

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TYPES OF BUDGETSTYPES OF BUDGETS(See Handout #1 – Budget Examples)(See Handout #1 – Budget Examples)

Budgets are designed to be program specific.

Budgets are estimates only. Counties are only limited to the total funding amount of the contract.

Some budgets may require that personnel costs be broken down by classification that:

Indicate individual hourly rate and benefit rate and…

Combine total hourly rate.

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ALLOCATIONSALLOCATIONSThe list below are allocations that must be separate line items on Budget, if applicable.

Personnel Services (salary and benefits may be combined)Personnel Services (salary and benefits may be combined) Overhead Overhead TravelTravel TransportationTransportation Vehicle PurchasesVehicle Purchases FacilitiesFacilities SubcontractingSubcontracting SuppliesSupplies

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BUDGET APPROVAL PROCESSBUDGET APPROVAL PROCESS(See Handout #2 – Precision As Displayed)(See Handout #2 – Precision As Displayed)

Budget request is sent to counties with a deadline date to return to CDFA.Budget request is sent to counties with a deadline date to return to CDFA.

CDFA Program reviews for mathematical accuracy and/or program accuracy.CDFA Program reviews for mathematical accuracy and/or program accuracy.

If errors found - return to the counties for revision and resubmission, or….If errors found - return to the counties for revision and resubmission, or….

If minor errors are found, CDFA Program Staff may modify.If minor errors are found, CDFA Program Staff may modify.

Dependent on funding, budgets are either used to prepare the contract package, or Dependent on funding, budgets are either used to prepare the contract package, or put on hold dependent upon the final available funding.put on hold dependent upon the final available funding.

Dependent of funding situation, counties may be asked to resubmit budgets based on Dependent of funding situation, counties may be asked to resubmit budgets based on revised, and reduced SOW.revised, and reduced SOW.

When funding has been secured with a complete and accurate SOW and Budgets, When funding has been secured with a complete and accurate SOW and Budgets, the contract request packages are routed for signature to the CO to process.the contract request packages are routed for signature to the CO to process.

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AMENDMENTSAMENDMENTS When an amendment is necessary, program staff submit When an amendment is necessary, program staff submit

a revised SOW that will have underline and strike out a revised SOW that will have underline and strike out text (showing changes) and/or a revised Budget to CO text (showing changes) and/or a revised Budget to CO before the contract expires.  before the contract expires. 

The same process that will be discussed later in this The same process that will be discussed later in this power point will apply to amendments.power point will apply to amendments.

Note: An amendment occurs when a change to the SOW or Budget of an executed contract. If the contract is not yet executed, the changes are called a revision.

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SCOPE OF WORK (SOW) & SCOPE OF WORK (SOW) & BUDGETBUDGET

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CDFA CONTRACTING CDFA CONTRACTING PROCESSPROCESS

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CDFA CONTRACTING PROCESSCDFA CONTRACTING PROCESSLocal Government (County)Local Government (County)

CDFA program staff

determine need for services

Can the work be performed

by local government

Can the work be done by CDFA staff?

No

No contractual need exists

Seek Contract with other resources

Yes

Yes

No

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CDFA CONTRACTING PROCESSCDFA CONTRACTING PROCESSLocal Government (County)Local Government (County)

Program submits contract request,

with Government Code (GC)

19130, SOW and Budget to Budget Office for approval

CDFA and County Staff prepare

SOW and Budget

Can the work be performed

by local government

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Budget Analyst review and

approve funding data on contract

request. If approved,

forward to CO; if not approved,

return to program.

CO Support Staff logs in

contract request and assigns to Contract Analyst

Contract Analyst reviews contract

request for completeness;

develops contractual document

Contract Analyst prepares contract

to send to County for approval

& signature

County returns

signed copies of contract with Board resolution, CCC-307

CDFA CONTRACTING PROCESSCDFA CONTRACTING PROCESS

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Total amount$75,000 or greater

and/or if changes made to Terms & Conditions or

hazardous

CDFA Contracts Manager

signs originals of contract

Distribution:Orig – Contractor

Orig – Contract file Copy–Program Contract Mgr

Copy – AccountingCopy – State Controller

Contracts Analyst sends

contract to DGS Legal

and/or ORIM for approval

DGS Legal reviews/

approves and returns

contract to contract analyst

Distribute copies of fully

executed contract.

Contractor can begin

work.

Yes

No

CDFA CONTRACTING PROCESSCDFA CONTRACTING PROCESS

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CDFA CONTRACTING PROCESSCDFA CONTRACTING PROCESS

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TIMELINESTIMELINES

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TIMELY SUBMISSIONTIMELY SUBMISSION

Contract timing is of the essence.

Many steps and stops involved in processing a contract.

Important to work together as a Team both CDFA and counties to prepare and process our contracts timely.

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TIMELINES FOR CO SUBMITTAL TIMELINES FOR CO SUBMITTAL MAY VARY AS A RESULT OF MAY VARY AS A RESULT OF

THE FOLLOWING:THE FOLLOWING:

During the heavy contract period from April through September.

Submittal of incomplete and/or inaccurate contract requests, SOW, Budget and other related documents.

Contract request package submitted in groups of 20 or more at the same time to the CO.

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CDFA/COUNTY TIMELINESCDFA/COUNTY TIMELINES

CDFA Program/County should plan ahead CDFA Program/County should plan ahead well in advance to begin preparing SOW well in advance to begin preparing SOW and Budget.and Budget.

SOW and Budget preparation should SOW and Budget preparation should begin 90 days (3 months) or sooner in begin 90 days (3 months) or sooner in advance of April 1advance of April 1stst each year. (If start each year. (If start date of contract is July 1)date of contract is July 1)

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CDFA PROGRAM & CO CDFA PROGRAM & CO TIMELINESTIMELINES

CDFA Program submission to the CO at least (90) days prior to start date. (3 months)

CDFA Program submission to the CO of Amendments at least (90) days prior to expiration date of the existing contract. (3 months)

* Please keep in mind that contracts cannot be amended once they have expired.

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POTENTIAL REASONS FOR POTENTIAL REASONS FOR DELAY (PRIOR TO SENDING TO DELAY (PRIOR TO SENDING TO

COUNTY)COUNTY)

Program and County: SOW is incomplete and/or incorrect Budget sheet is incomplete/incorrect

Program and CO: Program does not submit required documentation Improper routing within the Department

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COUNTY CONTRACT COUNTY CONTRACT APPROVAL PROCESSAPPROVAL PROCESS

The following county entities may be required to review and approve each contract:

County Agricultural Commissioner Chief Financial Officer County Counsel County Clerk Board of Supervisors

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DEPARTMENT OF GENERAL SERVICES (DGS)- DEPARTMENT OF GENERAL SERVICES (DGS)- OFFICE OF LEGAL SERVICES (OLS)/OFFICE OFFICE OF LEGAL SERVICES (OLS)/OFFICE OF RISK AND INSURANCE MANAGEMENT OF RISK AND INSURANCE MANAGEMENT

(ORIM) (ORIM) APPROVAL REQUIREDAPPROVAL REQUIRED

When county changes the General Terms and Conditions, add (10) additional working days for DGS/OLS review.

When contract involves Hazardous Activities, add (15) additional working days for DGS/ORIM and DGS/OLS review and approval.

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DGS/OLS UNAPPROVED DGS/OLS UNAPPROVED Contract returned to CDFA unapproved, the following steps must be

taken :

CO analyst reviews DGS requested information to determine what is needed.

There may be a need to consult with CDFA Legal Office for advisement on DGS issues – add a minimum of 10 business days for DGS/OLS review, in addition to the CO processing time.

Obtain DGS requested information from CDFA Program such as statutory authority and/or various justifications.

Resubmit requested information to DGS/OLS.

* Note: Due to State furloughs extra days may be necessary for DGS/OLS to review and approve.

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TIMELINESTIMELINES

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STATE’S GENERAL TERMS & STATE’S GENERAL TERMS & CONDITIONS (GTC)CONDITIONS (GTC)

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STATE’S GTCSTATE’S GTC(See Handout #3- Exhibit C)(See Handout #3- Exhibit C)

New Language: GTC revised effective June 9, 2010 (revised from GTC 307 to current GTC 610). Small Business and Disabled Veterans Business Enterprise Participation – applicable

when using subcontractors to perform portion of service. Loss Leader – Business and Professions Code 10730, Public Contract Code (PCC)

10344(e) – applicable when using subcontractors to perform portion of service.

Business and Professions Code 17030. "Loss leader" means any article or product sold at less than cost:

a) Where the purpose is to induce, promote or encourage the purchase of other merchandise; or

b) Where the effect is a tendency or capacity to mislead or deceive purchasers or prospective purchasers; or

c) Where the effect is to divert trade from or otherwise injure competitors.

PCC 10344(e)The state agency used the evaluation and selection procedure in subdivision (c) of Section 10344, but is proposing to award the contract to a bidder other than the bidder given the highest score by the state agency evaluation committee.

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STATE’S GTC CONTINUED..STATE’S GTC CONTINUED..

Proposing changes to GTC 610 requires: County to submit statute citation why GTC cannot be

agreed to. State to submit why it is in the best interest of State to

agree to altered terms. Determine if any adverse impact to State and if State is

adequately protected. Request CDFA Legal Office to advise and prepare

memo to send with contract to DGS/OLS.

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RIGHT TO TERMINATERIGHT TO TERMINATE(See Handout #4 – Exhibit D)(See Handout #4 – Exhibit D)

OLS questioned the Right to Terminate clause in county agreements.

CO and CDFA Legal have revised the language to reflect the following:

The State reserves the right to terminate this agreement subject to 30 days written noticeto the Contractor. Contractor may submit a written request to terminate this agreementonly if the State should substantially fail to perform its responsibilities as provided herein.

However, the agreement can be immediately terminated for cause. The term "for causes”shall mean that the Contractor fails to meet the terms, conditions, and/or responsibilities of the contract. In this instance, the contract termination shall be effective as of the date indicated on the States' notification to the Contractor.

This agreement may be suspended or cancelled without notice, at the option of the Contractor, if the Contractor or State's premises or equipment are destroyed by fire or other catastrophe, or so substantial damaged that it is impractical to continue service, or in the event the Contractor is unable to render service as a result of any action by a state agency directly impacting the Contractors ability to perform.

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ADDITIONAL PROVISIONSADDITIONAL PROVISIONS (See Handout #5 – Exhibit E)(See Handout #5 – Exhibit E)

Federally Funded Contracts Shall contain language that the contract can be amended or canceled if

federal funding is reduced or canceled.

Subcontractors (See Handout #6 – Subcontracting Example) Any subcontractors performing portion of work for services to be performed

shall: Perform less than 25% of total contract amount or $50,000, whichever

is less, or Require three (3) competitive bids

Insurance Coverage ORIM and OLS have determined that we must require proof of insurance for

all county contracts, to include: General Liability Automobile Liability Worker’s Compensation Environmental/Pollution Liability (when applicable)

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ADDITIONAL REQUIREMENTSADDITIONAL REQUIREMENTS

Resolutions/County Ordinances All Contracts shall be returned with either, Board

of Supervisors minutes, or resolution, to include: Contract identification Authorization for signatory

County Code or Ordinance authorizing signatory

Contractor Certification Clauses (CCC-307) (See Handout #7) shall be signed and returned with each contract.

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STATE’S GENERAL TERMS & STATE’S GENERAL TERMS & CONDITIONS (GTC)CONDITIONS (GTC)

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INVOICINGINVOICING

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KEY POINTS TO INVOICINGKEY POINTS TO INVOICING

You will prepare an invoice to submit to CDFA for reimbursement of work performed.

Two different State agencies are involved in the reimbursement process, CDFA and the State Controller’s Office (SCO).

While CDFA is the contracting agency, the SCO generates a check (warrant) and mails it to the county.

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PROCESS OVERVIEWPROCESS OVERVIEW CDFA Program Contract Manager (PCM) receives an invoice for reimbursement

from the county. PCM reviews the invoice to ensure it meets the scope of work identified in the

contract and that there are sufficient funds to have the invoice paid. Invoices are approved by PCM. PCM submits approved invoice to the Financial Services Branch Accounts

Payable Unit (AP). AP Unit will review the invoice for compliance with the payment terms, and

schedules the invoice for payment within 30 calendar days of receipt. The schedule is then forwarded to SCO.

SCO will review the invoices, verify the contract funding, expiration date, and issue payment, typically within 15 calendar days of receipt of the claim schedule. Payments are sent to the County Treasurer’s Office.

Payments made to Public Entities are not subject to late fees or penalties. Per Government Code 811.2, a "Public Entity" includes the State, the Regents of the University of California, a county, city, district, public authority, public agency, and any other political subdivision or public corporation in the State.

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MISSING LINKSMISSING LINKS

No Executed ContractNo Executed Contract The AP Unit cannot process an invoice for payment untilThe AP Unit cannot process an invoice for payment until

there is an executed contract. there is an executed contract.

No State BudgetNo State Budget Invoices are paid out of a “General Fund Clearing Invoices are paid out of a “General Fund Clearing

Account” and are reimbursed by the contract’s funding Account” and are reimbursed by the contract’s funding source. source.

Contracts that are paid from the General Fund may be Contracts that are paid from the General Fund may be subject to delay due to a budget impasse. subject to delay due to a budget impasse.

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NEED REIMBURSEMENT, WHAT NEED REIMBURSEMENT, WHAT TO DO NEXT?TO DO NEXT?

Review your SOW SOW should provide directions on how to invoice for reimbursement. This should include:

Who to send the invoices to Address to send the invoices to A timeline if any

The SOW may also specify an invoice template that needs to be used.

Invoicing/Reimbursement Immediately after work is completed, submit an invoice in compliance with the contract

terms to the CDFA PCM for approval.

All receipts for purchases do not need to be submitted to CDFA, but must be retained by you for audit purposes.

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WHY WOULD CDFA REQUIRE USING WHY WOULD CDFA REQUIRE USING SPECIFIC OR CERTAIN TEMPLATE AND SPECIFIC OR CERTAIN TEMPLATE AND

BILLING SCHEDULE BILLING SCHEDULE (See Handout #8 – Invoice Example)(See Handout #8 – Invoice Example)

There are various reasons why a particular program may need to be invoiced on a particular form.

If funds for the contract come from USDA, or some other source, the agreement that CDFA has with the funding source may require that invoicing be done a particular way.

CDFA may also need to submit invoicing on a particular form to comply with audits.

Until you invoice CDFA and the expenditures appear on CDFA’s budget report, CDFA cannot bill the appropriate entity for reimbursement.

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WHERE IS THE FLEXIBILITY?WHERE IS THE FLEXIBILITY?

If unable to use the invoice template specified in SOW, or

Unable to meet any of the other invoicing provisions in SOW, contact the PCM per SOW.

PCM will work with you to ensure both county & state needs are met.

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WHY THE DELAYS? CHECK WHY THE DELAYS? CHECK DOESN’T MATCH INVOICE?DOESN’T MATCH INVOICE?

Invoice sent to the wrong place/person: SOW specifies where and to whom invoices are to be sent.

Wrong contract number: Ensure the correct contract number is on your invoice. Check the remittance that comes with the payment and verify the program and

contract number. Invoice doesn’t balance: CDFA will verify mathematical computation prior to scheduling. Verify your math to make sure there are no mistakes.

Non-billable items: SOW specifies what work is to be done. Non-billable items will not be reimbursed.

Contract is billed in full: Keep track of how much reimbursement has been received.

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AVOID THE PITFALLS…AVOID THE PITFALLS…Formula Modification: When using a CDFA invoice template in Excel, do not modify the formulas. Contact the point-of-contact in the SOW and let them know so he/she can help.

Mileage Rate: Federal Government (FG) sets the mileage reimbursement rate for all invoices paid

with Federal dollars. CDFA cannot pay mileage over the rate that has been set by the FG. FG can change the mileage rate during your contract term. Overhead cannot be charged on mileage.

Itemized Invoice: Invoices must be itemized to be reimbursed. Personnel must be billed on a separate line item with overhead not to exceed 25%. Invoices must include the mileage reimbursement rate in order to be paid.

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INVOICINGINVOICING

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CONCLUSIONCONCLUSION

Have our training goals and objectives been met?

Identify roles and responsibilities of CDFA Staff in the contracting process

Understand contract processing timelines and reasons for delay

Define contract elements Knowledge of recent changes to state

contracting language and requirements Understand invoicing process

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OVERALL PURPOSE OVERALL PURPOSE TO DOTO DO LIST LIST

To educate you on CDFA contract process.To educate you on CDFA contract process. To provide you with better understanding of To provide you with better understanding of

CDFA’s reasons for delays. CDFA’s reasons for delays. STILL PENDINGSTILL PENDING CDFA to better understand your contract CDFA to better understand your contract

process and reasons for your delays.process and reasons for your delays. Determine what changes can be made to timely Determine what changes can be made to timely

execute contracts.execute contracts. Consider changes to process where we have Consider changes to process where we have

authority or is within our control to carry out. authority or is within our control to carry out. Streamline CDFA Contract Process.Streamline CDFA Contract Process.

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WRAP-UPWRAP-UP

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HAPPY CONTRACTING!HAPPY CONTRACTING!

Thank you for participating in the

Contract Webinar Training!CDFA appreciates your participation and interest!!