program controls systems & processes board of trustees workshop october 11, 2005
TRANSCRIPT
Program Controls Systems & Processes
Board of Trustees WorkshopOctober 11, 2005
Introduction
Objectives Presenters Agenda
Objectives
Describe Program Controls Process and Systems
Provide Current Program Budgets and Schedule
Discuss Key Program Controls Issues
Presenters
Al Harrison - VP of College Operations Yulian Ligioso - Director of Fiscal Services Dave Kirn – Program Manager Bruce Rich – Program Controls Manager Dale Molyneux – Manager Estimating/Scheduling Geraldine Bracken – Financial Controls Manager Arthur Bart-Williams – VP, Professional Services
(ViaNovus, Inc.)
Agenda
Overview of Program Control Systems Budget/Cost Management
Current Budgets Paragon System- Cost Mgmt System
Procurement Process Delegation of Authority Schedule Management
Current Schedule Program Cash Flow Information Management
Overview of Controls Systems
Budget / Cost Management Schedule Management Procurement Management Information Management
Budget Management Process
Determine Funding
Obtain Bids
Track Actual Costs
Establish Budgets
Prepare Project
Estimates
Design to Estimate
START
Schedule Management
Define Project Scope
Produce Detailed
Schedules
Track Progress
Update Schedules
Establish Project
Sequence
START
Procurement Process
Define Project Procurement
Needs
Select Vendor
Administer Contract
Determine Procurement
Method
Issue Procurement Documents
START
Information Management Process
Define Document Retention
Needs
Process Information
Transfer Program Records
Define Document
Organization Plan
Define Document Distribution
Matrix
START
Budget/Cost Management Systems
Funding Sources Detailed Budgeting
Initial Budgets Project Definition Budgeting
Budget Issues
Funding Sources
Funding Sources Measure C $249M Local Funds ? M State Funds ? M Donations ? MTotal Funding $250M +
Program Budgeting
Initial Budgets36 Projects = $249.5M (100%)
Current Budgets47 Projects = $200.8M (80%)Program Mgmt = $ 12.8M ( 5%)Contingency = $ 35.9M (15%)Total $249.5M (100%)
Program Budget Components
Program Level Budget Components Facilities Master Plan
Facilities Assessments Program Studies Campus Master Plan
Program Support Staff Program Management Staff
Project Budget Components
Project Level Budget Components Design
A & E Fees Plan Check
Construction Haz Mat Bonds and Insurance
Test and Inspection Furniture, Fixtures & Equipment
Relocation Construction Management Contingency
Detailed Program Budget
Budget Breakdown 8-15-05 COM (Final).xls
Appendix 1
Project Initiation Process
Define Scope Create Project Construction Estimate Establish Schedule Develop Project Budget Determine Funding Source (s)
Project Initiation Forms
JCAF Allocation Master.xls
Appendix 2
Paragon Systems
System Overview Information Input Typical Reports
Budget/Cost Management Systems
Contingency Management Program Level Project Level
Reports Management District Public
Budget Issues
Program Definition Process Internal Forces
People Changes Ed Plan Changes
External Forces Inflation Regulatory Changes Community Input
Procurement
Procurement Process Purchase Orders Consultants Contractors Changes
Payment Process
Identify Need
Establish Scope &
Budget/Cost Codes SMC
M&O
VP
DOM
Review & Approval
Project Initiation
Form
Contracting Process
Procurement Process
BOT ApprovalOf Award
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
Paragon
Procurement ProcessOverview
VP
Review & Recommend
Identify Need
Establish Scope &
Budget/Cost Codes
Write Requisition
ERSSMC
M&O
VP
Review & ApprovalCreate
Purchase Order
Send PO to Vendor
Vendor Deliver Product
Vendor Submits Invoice
DOM
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
Paragon
Purchase Order ProcessGoods or Services
Write Requisition
ERS
Create Purchase
Order
Send PO to Consultant
Consultant Delivers Services
RFP/RFQ Process
VP
Review & Recommend
Review Proposals & Recommend
Shortlist
BOT ApprovalOf Award
Negotiate Agreement
BOT ApprovalAction (Final Contract)
1. Full Selection Committee approves interview process
2. Full Selection Committee approves recommended firm
Consultant Interviews
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
Paragon
SMC
M&O
VP
Review & Approval
Procurement ProcessConsultants
VP
Review & Recommend
Write Requisition
ERS
Create Purchase
Order
Send PO to vendor
Contractor Deliver
Services
Bid Bid Analysis
VP
Recommend to Award
SMC
M&O
VP
DOM
Review & Recommend
BOT Approval
Document Execution
Notice to Proceed
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
Paragon
SMC
M&O
VP
Review & Approval
Procurement ProcessContractors
Pay Invoice
AccountingVendorSubmit Invoice
Cost Controls
Mgr Review Invoice
PM Approve Payment
SMC
M&O
VP
DOM
Review & Approval
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
Paragon
Invoice Payment Process
SMC
M&O
VP
DOM
Review & ApprovalContractorSubmit Change Order
Request
Cost Controls
Mgr Assign
Cost Code
CM Review Change Order
Request
BOT Approval Contract Amendment
Notice to Proceed
Change Order
Identified
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
Accounting
Paragon
Change Order Process
VP
Review & Recommend
Delegation of Authority
Types of Commitments Contracts/Purchase Orders Changes
Suggested Limits New Commitments – Up to $250,000 Changes
Lesser of 5% of Original Agreement or $250,000 Total change less than 10% of Original Agreement
SMC
M&O
VP
DOM
Review & ApprovalContractorSubmit Change Order
Request
Cost Controls
Mgr Assign
Cost Code
CM Review Change Order
RequestADMIN
Admin Approval
BOT Approval Contract Amendment
Notice to Proceed
Change Order
IdentifiedValue
VP VP of College Operations
SMCM&O DOMDirector of Maintenance & Operations
Swinerton CM/PM
Director of Modernization
DP BOTDistrict Purchasing
Board of Trustees
GT 10%
LT 10%
Paragon
Change Order ProcessProposed
Contracting Strategy
Encumber the bid amount plus 10% for contingency
Delegate the management of contingency to District Administration
Report use of contingency at regular intervals
Schedule Overview
Program Schedule Development Project Schedule Development Schedule Format-Paper/Electronic
Program Schedule Development
Identify Projects Develop Sequence of Projects
Evaluate Impacts Establish Priorities Balance Resources Integrate College Schedules
Adjust Schedule
Project Schedule Process
Planning Template Adjust Template to Project Scope Establish Activity Durations Adjust with Progress
Program Cash Flow
Combine Schedule and Budgets County Investment Earning Impact of Delays
Value of Bond Funds at 6.5% Escalation Rate
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
JAN 2005
JUN 2005
NOV2005
APR 2006
SEP 2006
FEB 2007
JUL 2007
DEC 2007
MAY2008
OCT 2008
MAR2009
AUG2009
JAN 2010
JUN 2010
NOV2010
APR 2011
SEP 2011
FEB 2012
JUL 2012
DEC 2012
Months
Val
ue
Future Value of Bond Funds
Planned Schedule Cash Flow
6 Month Delay Cash Flow
195,982,894
187,874,144
Information Management Filing System-Paper/Electronic Software
Microsoft Office Package 2003 Auto CAD 2005 SureTrak 3.0 Adobe Acrobat Professional 7.0
Distribution Access
SMC Team, Facilities, Financial Management & Vice President
Summary
Overview of Program Controls Budget / Cost Management Schedule Management Procurement Management Information Management
Upcoming Activities Program Budget/Schedule Update Paragon Development