Professional Development

Institute 2009

Procurement and Contracting Services

Robert Schur, J.D., Director • Administrative Assistants : • Sue Butler and Frances Maizland

Frank Krappes, Associate Director • Farrah Bustamante• Bob Hendon• Kathi LaFollette

Construction Contracts Manager, Carol Guy• Linda Meserve• Stan Oakland• Rick Tensley

Procurement Contracts Manager, Elizabeth Kelly, J.D.• John Swaro, Program Administrator • Patty Cashen, SciQuest Help Desk • Lu Ann Herin, Administrative Assistant, ACard

Purchasing Agents-Academic Team:

Purchasing Agents-Administrative Team

SciQuest and ACard:

Staff

Procurement Rules Update

Presented by Bob Schur, J.D.

CSU opted out of State of Colorado Procurement Code Effective January 1, 2008

What does this mean for CSU? Dollar thresholds for solicitations remain the same Protests are now handled internally by CSU Can participate in Group Purchasing Organizations (GPO’s)

E & I, US Communities, National IPA etc. At the discretion of the Procurement office

The use of Colorado Correctional Industries for office furniture remains mandated by State Statute

Fiscal Rule requirements are not affected by opt out View the Colorado State Procurement Code and State Fiscal

Rules at: http://www.purchasing.colostate.edu/pages/manuals.asp

Procurement Rules Update

Fiscal Rules UpdatePresented by Bob Schur, J.D.and Elizabeth Kelly, J.D.

Fiscal Rules Update

Effective January 1, 2009

Fiscal Rule 2-2 Commitment Vouchers

Fiscal Rule 3-1  State Contracts

Related Policies

Definition: A State approved form Purchase order Contract Travel Authorization

Exclusion: Procurement card (ACARD) Most CSU cards have a $3K limit with some up to $5K Commitment Voucher may be used, but is not required for

purchases of $5K or less Supporting documentation may include invoice, receipt or other

appropriate document Unauthorized Purchases

Failure of a person or department to have an approved commitment voucher prior to the purchase of goods or services = Statutory Violation Unauthorized Purchase Process

Fiscal Rule 2-2:Commitment Vouchers

New FR to comply with the Centralized Contract Management System, Personal Services Contracts >$100,000 must include:

Performance measures and standards (objective test) Vendor accountability standards specified in the contract; can withhold payment until successful completion /achievement of performance standards. Monitoring requirements to measure both CSU and vendor performance (monitoring must be done by designated

contract monitor)  Processes to resolve situations in which CSU determines noncompliance, including termination of the contract

State Contracts

Intergovernmental Agreements may “go silent” on choice of governing law without legal approval

All other changes to Special Provisions still require legal approval (and usually OSC waiver)

Specific prohibition on indemnity by CSU Monitoring of State Contracts for Personal

Services (Sponsored Projects are exempt)

State Contracts

Review and Approval – Institutions Of Higher Education with Delegation

Sponsored ProjectsStatutory violations/ late contracts

Vendor Agreements

State Controller Policies

Senate Bill 07-228Presented by Frank Krappes and Farrah Bustamante

Legislation that requires formation of Centralized Contract Management System Personal services contracts in excess of $100,000 Construction contracts in excess of $500,000 Centralized Contract Management System will be

available to the public via a website maintained by the state

Some sections already in effect; CMS effective date is June 30, 2009

Establishes policy of fair and open competition, mechanisms for monitoring, evaluating and reporting contractor performance and location of contract performance

SENATE BILL 07-228

Sole Source Contracts for Personal Services: All must be posted on the BIDS system

Minimum of three (3) business days If other acceptable contractors are identified, a

competitive solicitation must be issued All sole source contracts for personal services will be

reported annually to the Legislative Council of the General Assembly The justification provided in support of the sole source

and all steps taken in the determination of the sole source will be included in the report

SENATE BILL 07-228

Monitoring Contractor Performance: Requires performance measures and standards

developed specifically for the contract Performance measures and standards must be negotiated

with the contractor prior to contract execution Specifies how CSU and contractor will evaluate each

others’ performance, including: Progress reports Site visits Inspections Review of performance data

Monitoring ensures the results, objectives and obligations of the contract are met

SENATE BILL 07-228

Contractor Evaluation and Reporting: Evaluating personal services contracts

A standardized form to be completed by the Designated Contract Monitor, including the following: Name of the Designated Contract Monitor completing the evaluation form Numerical rating relating to quality Numerical rating relating to cost Numerical rating relating to deadlines

Evaluating construction contracts A standardized form to be completed by the Designated Contract

Monitor, including the following: Name of the Designated Contract Monitor completing the evaluation form Initial amount budgeted in the contract vs. the actual amount paid Completion date specified in the contract vs. the actual completion date Numerical rating that assesses the overall qualitative performance Numerical rating that assesses the overall safety performance

SENATE BILL 07-228

Contractor Evaluation and Reporting: (continued) Evaluation submitted to contactor for review and

comment in response to the rating Contractor has dispute rights concerning the

evaluation Evaluation and any response from the contractor

is submitted centrally at CSU for recording to the Centralized Contract Management System database

The evaluation must be made public via website Within thirty days after completion of the contract

SENATE BILL 07-228

Location of Contract Performance: Prior to contract execution, the contractor must

disclose where the work will be performed, including any subcontracts

If any of the work is to be performed outside of the State of Colorado or the United States, including subcontracts Contractor must provide a statement setting forth

why it is necessary or advantageous to go outside of Colorado or the U.S. to perform the work

SENATE BILL 07-228

SENATE BILL 07-228 SUMMARY

Formation of Publicly Accessible Centralized Contract Management System Personal services contracts in excess of $100,000 Construction contracts in excess of $500,000

June 30, 2009 Effective Date All Sole Sources must be posted on BIDS

Minimum of three (3) business days Competitive solicitation must be done if other vendors are identified

Specifics on how CSU and Contractor will evaluate each other’s performance Standardized form to evaluate Personal Services contracts

Four (4) items to complete evaluation Standardized form to evaluate Construction contracts

Five (5) items to complete evaluation Evaluation submitted to contractor for review

Contractor has dispute rights Evaluation and Contractor comments submitted to CSU for input into Centralized

Contract Management System Must be posted within 30 days

Prior to contract execution, contractor must disclose where work will be performed If any work to be performed outside Colorado or United States, vendor must provide statement

indicating why it is advantageous to have the work performed outside Colorado or the country Including subcontractors

Environmentally Preferable

PurchasingPresented by Farrah Bustamante and Stan Oakland

A.K.A “green” purchasing What is environmentally preferable?

“Products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose.”

CSU Purchasing Power of $250M+ We can make a big impact with everyday purchases

CRS 24-103-207.5: Can apply up to a 5% preference for “green” or

environmentally friendly products Preference may exceed 5%

If cost of ownership life cycle analysis establishes long term savings

Environmentally Preferable Purchasing (EPP)

What is greenwashing? When a company or organization spends more time and money claiming to be “green”

through advertising and marketing than actually implementing business practices that minimize environmental impact.

What can you do on campus to be “green”? Look for “Eco-labels” or Certifications

Energy Star, Forest Stewardship Council, EPEAT, GreenSeal etc. Use office paper with a minimum 30% PCW

CSU uses approx. 278,352 pounds of paper per year 77.5 % (or about 215,641 pounds) of the paper has NO recycled content Want to know how our paper choices impact the environment?

Paper Calculator shows the environmental impacts of different papers (virgin vs. various PCW) across their full lifecycle

http://www.edf.org/papercalculator/ Use flat screen monitors Set office copier to “sleep” when not in use

Saves up to 40% on energy costs Require all office copiers/printers duplex Buy Energy Star or EPEAT rated electronics Use computer/electronics exchange programs

Dell Disposal Service, HP Trade-In Program, Apple Recycling Program Use “green” cleaning products And a lot more……

Environmentally Preferable Purchasing

What are some other ways to be green? Planet Partners Program

Toner/ink cartridge recycling program directly with HP Ensures cartridges do not end up in landfill

Will allow CSU to receive over $50K worth of Energy Star compliant printers/copiers For more information visit:

http://www.purchasing.colostate.edu/pages/planet_partners.asp

Revised delivery schedules for high volume vendors MWF deliveries for toner/ink cartridges and office

supplies Green products are indicated on SciQuest Plan ahead and consolidate purchases

Environmentally Preferable Purchasing

Maximizing the Value from your Solicitation

Presented by Procurement and Contracting Services Staff

How can you maximize your solicitation? Get PCS involved at the onset of procurements which will

require source selection Planning/Funding Meetings Funding Review/Recommendation Boards/Committees

Plan ahead and try to consolidate your purchases Consult with Purchasing Agent to discuss best source

selection method (DQ, IFB, RFP, ISS) for your project Requisition

Dollar Thresholds Departmental Discretion

Up to $5K for goods or services Purchasing Agent discretion

Up to $10K for goods and $25k for services

Maximizing Your Solicitation

Maximizing Your Solicitation What are the differences between source

selection methods? Documented Quote

DQ Dollar thresholds

For goods $10,000 to $150,000

For Services $25,000 to $150,000

More flexible than other source selection method Generally, short turnaround time Minimum of three (3) business days Can evaluate on more than price Vendor negotiations

Differences between source selection methods (continued): Invitation for Bid

IFB For procurements over $150,000 for both goods and

services Not as flexible as DQ

Formal, sealed response Must be posted for at least 14 calendar days Evaluate responses on lowest price which meets objective

specifications only Cannot have lock out specifications (proprietary, patented, etc.)

Two Step Invitation for Bid Explanation

Maximizing Your Solicitation

Differences between source selection methods (continued): Request for Proposal

RFP Generally for procurements over $150,000 More complex than DQ or IFB’s

Formal, sealed response Must be posted for at least 30 calendar days Must have a committee of at least three (3) evaluators

Cannot include Purchasing Agent RFP process can take at least 90 days after posting Can evaluate on other criteria besides price

Objective and subjective criteria Cannot have lock out specifications (proprietary etc.)

Maximizing Your Solicitation

Q & A

Forms for Reporting SB228 Compliance Web-accessible database for all CSU

Contracts Implementation of a single Contract

Request Form in place of many standard contract forms

Small Business Supplier Showcase February 24, 2009

Will highlight Small, Minority and Disadvantaged Businesses

SQ/Kuali Integration

Coming Attractions