2011 state purchasing forum contract components a panel discussion moderated by: connie rissberger...

2011 State Purchasing Forum

CONTRACT COMPONENTSA Panel Discussion

Moderated by: Connie Rissberger – OGS

[email protected]

MAY 2011 2011 State Purchasing Forum 1


Purpose

To identify those key components a contracting professional needs to successfully process a contract.

Panelists •NYS Department of Labor:

Mary [email protected]

• NYS Worker’s Compensation Board:Steve Carbone [email protected]

• NYS Office of the State Comptroller:Bill [email protected]


mailto:[email protected]


AgendaBased on their area of expertise, each panelist will be available to answer questions with respect to: NYS Department of Labor Prevailing

Wage; Worker’s Compensation Board; and Office of State Comptroller Contract

Process


NYS Department of Labor

• What are prevailing wages?

• How are they used?

• What am I responsible for?



Question?Please explain the difference between Article 8 and Article 9 as it relates to Prevailing Wage.

NYS Department of LaborQuestion Part A:

Labor Law § 220 (a) states that “[t]he "prevailing rate of wage," for the intents and purposes of this article, shall be the rate of wage paid in the locality, as hereinafter defined, by virtue of collective bargaining agreements between bona fide labor organizations and employers of the private sector, performing public or private work provided that said employers employ at least thirty per centum of workers, laborers or mechanics in the same trade or occupation in the locality where the work is being performed.”



Question Part B?Then why, in a locality with low single digit union construction workers, (well under the above required 30%) must the state pay hourly rates that exceed even the state job rate for a like title?



Question?

Why must the state pay about $52 an hour for a residential plumber when the union rate is lower?




Question?My agency is located in New York City. Which prevailing wage rates govern my contract, New York State or New York City?

If New York City governs, where do I find those (prevailing wage rates)?


Question?

Sometimes the job descriptions for prevailing wages don’t seem to completely match the work being performed. How do I insure that the vendor is appropriately paying their staff when I review the certified payrolls?



Question?Is there a minimum threshold for requiring application for a PRC?



Question?When initiating a project and there's no reasonable match between the job function being performed and the job descriptions posted on your website, does that mean there's no predefined prevailing wage?


NYS Department of LaborQuestion – Part I: Last year changes were made to the

prevailing wage regulations stipulating that the vendor needs to pay the current wages published each July. As a result, a preferred source vendor is requesting a price adjustment each July to compensate for the increased wages.

Staff at our agency are not skilled with interpreting the wages & supplements, as often rates are different based on the particular task being performed, etc. Staff are also not familiar with contract terms that specify the number of staff and/or the number of hours to be working under the contract. MAY 2011 2011 State Purchasing Forum 14


Question – Part II? Staff would need to convert the increased

wages and benefits into a total percentage increase (or decrease), and know how much of the bid price would be affected by the increased prevailing wage rates.

How does DOL or OSC suggest we address this issue with our vendors?


NYS Department of LaborQuestion? When requesting prevailing wages for a

statewide contract, it is possible to have a document that is several hundred pages long or sometimes over 1,000 pages.

Is there a way to target the specific titles needed so the document a user agency receives is less cumbersome to page through in order to find the correct wages?

Is it possible for the NYS Labor Department to use sub-sets when requesting wages to refine the job a little more?


MAY 2011 2011 State Purchasing Forum 172011 State Purchasing Forum 17

Workers’ Compensation Insurance & Disability Benefits

Requirements· What is Workers’ Compensation

Insurance?

· Why is it important?

· Who needs to be covered?

· What forms are required?


RequirementQuestion?

Many vendors (particularly IT contractors) are located entirely out of state but their installers or consultants will come on-site for a few days for installation and implementation. What do I need to do for them to insure that I meet my obligations under the law?



RequirementsQuestion?

When does workers’ compensation

debarment apply to government permits,

licenses and contracts?




How do I get a copy of the Prove It to Move It Manual, the instruction guide for government agencies regarding workers' compensation and disability benefits requirements when issuing permits, licenses and contracts?



RequirementsQuestion? The requirement under NYS Finance Law

to document participation in NYS Worker’s Compensation and Disability Insurance requires us to obtain completed forms C105.2 or DB 120.1. However, I can go to the WCB website, enter the vendor information and see in real time if a vendor participates.

Isn’t this a less efficient use of the agency’s and vendors’ time and resources?




If a vendor is a sole proprietor and is not required to carry Worker’s Compensation Insurance coverage for employees, does the vendor need to submit the Certificate of Attestation of Exemption Form (CE-200) for New York Entities with no employees stating that this insurance coverage is not required?

When is the Certificate of Attestation of Exemption Form (CE-200) required?



RequirementQuestion – Part I?

My agency recently awarded a contract to an out of state vendor. This vendor bought the materials from a New York vendor and hired another New York vendor to deliver the material to us. Both of these New York State vendors carried Workers’ Compensation Insurance.



RequirementQuestion – Part II?

While this vendor never actually set foot in New York State, the out of state vendor was still required to carry Workers’ Compensation Insurance adding $1,000 to the cost of the contract. This seems totally unnecessary and another reason for vendors not to do business with NY.

Can this law be reviewed and possibly changed or was this a mistake to begin with?



Worker’s Compensation and Disability Benefits Requirements


Office of the State Comptroller

Ask yourself:• What does OSC want me to include in a

successful contract?• What supporting documentation and examples

can I obtain from this session?• What resources are available?


Question?

Were there any changes to New York

State Finance Law governing

procurements this year?



Question? I would be very much interested in

changes in piggybacking when dealing with GSA contracts.

This has become a major issue for my agency; these piggyback contracts are very important.


Office of the State ComptrollerQuestion?• How do I know if my elevator maintenance

and refuse removal should be done on a contract and not a purchase order?

• How long should the contract be for?• What determines the batch type to use?• How do I get started for 2011-12 if they

have never been done that way before?



Question? My agency is especially interested in

the changes and revised or new processes due to legislation and alterations in design, construction, and other contracts vis-à-vis OSC.

Already, my agency is being told things as basic as….BCL’s will not be required though that sounds questionable.



Contact Information

Mary C. McDonnellNYS - DOLBureau of Public Work –

Central [email protected](518) 457-5589

William Hughes NYS – OSC Bureau of [email protected](518) 486-1292

Steve CarboneNYS Worker’s Compensation

[email protected](518) 486-6307







Thank You!

Enjoy the day

2011 state purchasing forum contract components a panel discussion moderated by: connie rissberger...

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