2Welcome & Introductions Name, Program AreaI am in this class because ….The best job I ever had was ….The worst project I ever worked on was ….
3TRAINING SCHEDULEDay 1Procurement and Contract Tracking System (PACTS)Procurement MethodsRole of the Information Technology OfficeRole of Financial ServicesDoing Business with Minority Business EnterprisesRole of the General Counsel’s OfficeHow to Write Contracts
4TRAINING SCHEDULE CONTINUED……. Day 1 (continued)Contract Review ProcessDeveloping and Processing Contracts, Amendments Renewals and ExtensionsManaging Contract FilesProgrammatic & Contract MonitoringDay 2“Contract Management in Florida” presented by Walter Sachs, DCF Staff Director, Contract Administration Perform Examination Review
5Organizational Chart Cynthia R. Lorenzo Director Kevin Thompson, Director ofAgency Support ServicesGeneral Services OfficerRobert MonroeGeneral Services SpecialistBridgett JacksonGeneral Services Purchasing ManagerLaura JenningsEleanor “Fran” ShewanPurchasing SupervisorPurchasing SpecialistSonja StokesPurchasing Analyst – Contract Administration /CMBE CoordinatorChristina Harrell
6Guiding Principles and Responsibilities Legality and EthicsEffective ServicesEfficiencyEconomyFairness & Open CompetitionDiversityLegality and Ethics: To ensure strict adherence to the requirements of the law, unaffected by personal gain and personal relationshipsEffective Services: To assist Agency end users in obtaining what they need when they need itEfficiency: To assist the Agency end users in achieving maximum value with minimum resources and timeEconomy: Obtaining maximum benefit for the dollars expendedFairness & Open Competition: Offering competitive opportunities to the maximum number of suppliers in the marketDiversity: Consider supplier diversity with every opportunity
7Authority Authority Other Related References Chapter 287, Florida StatutesChapter 60A-1, Florida Administrative CodeOther Related ReferencesAWI Purchasing Policy, 4.02 – “Purchasing and Contracting Procedures Manual”DMS State Purchasing MemorandumsDepartment of Financial ServicesReference Guide for State ExpendituresCFO MemorandumsAgency Addressed MemorandumsFederal Regulations
8s. 287.001, F.S.- Legislative Intent Ensure the following:Fair and open competitionReduce the appearance and opportunity for favoritismInspire Public ConfidenceAwarded Equitably and EconomicallyEffective Monitoring MechanismsUniform procedures are followedDetailed Justification of the Agency DecisionsEthical BehaviorChapter 287 was created by the Legislature to ensure (list above) and to ensure that agency’s were only purchasing the necessary items to carry out their statutory duties.Ethical Behavior is further defined in Chapter 112, F.S. and AWI Policy 1.05, Code of Ethics which addresses employee behavior dealing with the solicitation and acceptance of gifts, doing business one’s own agency, unauthorized compensation, misuse of public position, conflicting employment or contractual relationship, and disclosure or miss use of certain information.
9PROCUREMENT AND CONTRACT TRACKING SYSTEM (PACTS) OVERVIEW Laura I. JenningsPurchasing ManagerAgency for Workforce Innovation
10PACTS WHY WAS IT CREATED: The PACTS database was created to track: the process of administering a contract from the initial stages of identifying the program area needthrough the procurement of a provider to deliver those commodities or contractual services,track the routing of contract documents through the agency review process, andto document the contract history (start/end dates, increases/decreased, amendments, renewals, and extensions)Cradle to grave documentation
11Purpose of PACTS http://intra.awi.state.fl.us/pacts/ To assist the Agency in complying with applicable state and federal laws, rules and regulations.To provide a resource to the Agency for proactively manage and track the history of Agency two-party contracts.Program Areas have view access for tracking expiration datesGo to web link and show a demonstration, show reporting capabilities
12METHODS OF PROCUREMENT Laura I. JenningsPurchasing ManagerAgency for Workforce Innovation
13Types of Procurement Three Main Types Small Purchases Non-Competitive Discretionary< $2,500 – Requires only one (1) quoteInformal$2,500 - $14, – Requires two (2) or more quotes>$15,000 - $24, – Requires three (3) written quotesNon-CompetitiveEmergency PurchasesDMS Authorized Agreements (STC, ACS & SPA)Single SourceExemptContinuing EducationPRIDE and RESPECTCompetitive Solicitations >$25,000Invitation to BidRequest for ProposalInvitation to NegotiateDiscretionary/Informal – at least one quote must be obtained from a CMBE vendorEmergency Purchases are either Executive Orders issued by the Governor during a disaster of some sort, or they may be Agency identified. One example while working at DJJ as an HVAC system was struck by lightning, 105 degrees, concrete building or AWI UC C/B Information System due to increased numbers of claimants causing agency’s provider FDS servers to crash. In these rare situations, agency do not have the time to secure competitive bids or advertise single source postings.SPA agreements where DMS has informally negotiated set pricing, however an agency may not spend more than $25,000 in one fiscal year under that SPA agreementThere are 13 exempt purchases in s (5)(f), Florida Statutes:1. Artistic Services2. Academic program reviews3. Lectures by individuals4. Auditing Services5. Legal Services6. Health Services involving examination, diagnosis, treatment, prevention, medical consultation or administration7. Services provided to persons with mental or physical disabilities (non-profit corporations)8. Medicaid Services9. Family Placement Services10. Prevention services related to health services (operated by non-profit corporations)11. Training and education services provided to injured employees12. Contracts entered into pursuant to (DOT)13. Services or commodities provided by other governmental agencies
14Procurement Cycle Identified Need Specification Development Determine Method of ProcurementObtain Quotes or Conduct Formal SolicitationAgency Selection & AwardContract Development (MFMP DO or Two-Party)Delivery of ServicesInvoice and PaymentMonitoring Contract PerformanceContract CloseoutThe procurement cycle is a cradle to grave process.
15Internal and External Requirements Cost Price AnalysisVendor vs SubrecipientConflict of InterestIRAOCOFacility ServicesRouting ProcessExternalDMSCSA TelecommunicationSingle Source >$150,000DFSCouncil of Efficient GovernmentTRWOther things to consider in the procurement cycle, internal documents review and approvals or there maybe external approvals and reviews.Cost Price Analysis – know the market conditions, research other state/agency contracts, internet/Google searchVendor vs Subrecipient – you need to determine the relationship (Federal and State) determination, may have an impact on contract Terms and ConditionsConflict of Interest Questionnaire, Certification and Attestation of No Conflict– the agency needs to document individuals participating in the development and selection of VendorOCO – request for purchase of items classified as operating capital outlay (unit price $1,000 or more, useful life 1 year or more) must be reviewed by the OCO Review Team. The team is comprised of Division Directors and the agency Controller.Facility Services – building alterationsRouting Process – allow adequate time for review and approval (Unit level, purchasing, IT, Grants, Budget, Legal, Division Director and Director’s Office) Each area is allowed up to a maximum of 3 days to complete their review.DMS – CSA are filed on line electronically, Single Source – DMS State Purchasing has 21 days to review and approve the agency’s 7 day posting of Notice of Intent to Purchase before the agency can post the Notice of Intent to Award, which is another 3 days.DFS – advanced purchase request >$25,000Council of Efficient Government – if the procurement is an outsourcing activity, the Program Area has to prepare a plan and submit for review. CEG has 31 days to review and comment, after the procurement the agency then has to file a “final” plan for another review.TRW – development of information technology solutions are required to go through a review, 3 weeks.So as you can see there is a lot of planning to consider during the procurement cycle.
16Invitation to Bid – ITB Commodity or service is easily identified; Bidders offer pricing based on set requirements (i.e., manufacturer, model, size, color, etc.);Bidder qualifications and commodity/service will be compared to the requirements of the ITB, but not to each other;Award will be made to the responsive and responsible bidder offering the lowest price.How do we decide on which formal solicitation process to use? Section , F.S. outline the order of preference, identifies the process for choosing a preferred method.
17Request for Proposal - RFP Written determination why ITB is not practicable, to be approved.Defined scope of work with multiple solutions.The vendor qualifications, experience and quality of service are more important than price.Proposals will be compared to each other.Award to Respondent that receives the highest total points for technical and cost.
18Invitation to Negotiate - ITN ■ Scope of Work cannot be completely and accurately defined.Two Step process1. Evaluation Scoring/Ranking Highest to Lowesta. Shortlisted Vendors Move Forward2. Negotiation Phasea. Negotiations are conducted to level theplaying fieldb. Responses are compared to each otherc. Qualifications and quality of service may beconsidered more important than priced. Vendor is selected on “Best Value”
19INFORMATION TECHNOLOGY’S ROLE IN PROCUREMENT AND CONTRACT MANAGEMENT Parker CapeIT Contract ManagerAgency for Workforce Innovation
20Objectives Discussion of Five Topics: Definition of Information TechnologyInformation Resource Authorizations (IRA)Security ConsiderationsEarly InvolvementContract Review Process
21Information Technology Definition s (16), F.S., means “Information Technology” equipment, hardware, software, firmware, programs, systems, networks, infrastructure, media, and related material used to automatically, electronically, and wirelessly collect, receive, analyze, evaluate, process, classify, manipulate, manage, assimilate, control, communicate, exchange, convert, converge, interface, switch, or disseminate information of any kind or form.
23Information Resource Authorization (IRA) What is an IRA?An IRA is a request for acquisition of information technology or services, including those procured through a contract.Why an IRA?It is the responsibility of the Information Technology Unit to ensure that AWI is procuring information technology (hardware, software, services, etc.) that can integrate and interconnect with our existing IT systems and services and is consistent with AWI policies and Florida Statutes.
24Information Resource Authorization (IRA) continued…. A completed IRA Form must accompany all IT related acquisitions.It is required via the Agency’s Information Technology Purchasing Policy (Revision Pending)
25Security Considerations Information System Security Plan (ISSP) Policy 5.02■ Know Confidentiality RulesAdopted 11/06Security is EVERYONE’s responsibility!Build security in from the beginning■ Contract and bid language should contain security requirements■ Positions of Special Trust 1.08− Reaffirmed 2/09−■ Always evaluate the risk of your decisions!
26Early InvolvementIn any contract acquisition involving technology, bring IT into the process with you…..the earlier the better!All new projects require a project definition form to be submitted to your IT Application ManagerCarlton Bassett – Workforce ServicesPatrick Greene – AdministrationJill Conley – Office of Early LearningAllen Northrup – Unemployment CompensationThings to considerLong term, recurring cost of IT support staff (5 to 10 Years)Licensing fees and renewalsMandatory upgrades (hardware and software)Total cost of ownershipExisting Agency infrastructureWarranty period
28FINANCIAL SERVICES ROLE IN PROCUREMENT AND CONTRACT MANAGEMENT Alisa RobersonDisbursements SupervisorAgency for Workforce Innovation
29The Disbursement Unit’s Role Set up of the Contract number in FLAIREntry of the Encumbrance in FLAIR so spending and budget can be tracked and verified by the program officesIn accordance with CFO Memorandum #1 ( ) all contracts require DFS review prior to the initial payment requestSubmission of contracts to the Department of Financial Services (DFS) for a pre-audit 10 days prior to the first request for payment being madeReview of all payment requests to ensure compliance with terms of contract, all applicable regulations and to request payment through DFSMaintenance of the original documentation of payments made through FLAIR (NOT those originating in MFMP)Mail-out of warrants issued to the vendor/contractor
30What F&A Needs From Contract Managers For all contracts:A copy of the completed, signed contract when executedThe contract number referenced on any and all correspondence about your contractA signed and dated Contract Summary Form accompanying a signed and dated invoiceAny accounting code changes (grant, org, etc.) or any warrant mailing/handling instructions at the time of invoice processingDocumentation to support the invoiceA detail of the charges, if summarized on the invoiceReviewed to ensure it matches the contractual rates/fee
31What F&A Needs from Contract Managers (Continued) For contracts entered into MFMP:The contract number included on the Requisition at time of creationReference to the contract number on the Invoice Reconciliation (IR) if it’s not “chosen” at the time of requisitionAll documents (contract, attachments, etc.) scanned and attached to the RequisitionThe Contract Summary Form scanned and attached on all IRsAdditional supporting documentation scanned and attached to the IR, as requested by DFS, especially if not on the original Requisition
32How Contract Managers Can Help Themselves Track all disbursements to ensure adequate contract balance and accurate encumbrancesEnter MFMP Change Orders for any permanent changes in accounting codesCommunicate with your Grant Manager and Budget Analyst frequentlyFollow-up with vendors to ensure invoices are received timelyReview the encumbrance report provided by F&A to ensure accuracy
33DOING BUSINESS WITH MINORITY BUSINESS ENTERPRISES Christina HarrellContract AdministratorAgency for Workforce Innovation
34Minority RequirementWhen contracting the first thought should be “Is there a minority business that can provide the goods or services that I’m about to purchase?”
35What is a Certified Minority? Business that has been certified through the Department of Management Services, Office of Supplier Diversity, as a certified minority business enterprise for the purposes of doing business with the state.What is a Minority Business?Businesses owned by:H -African AmericanI - Hispanic AmericanJ - Asian/Hawaiian AmericanK - Native AmericanM - American WomanW – Service Disabled VeteranMust be domiciled in FL to be eligible to become a Certified Minority Business Enterprise.There are now 6 certified minority designations. In November 2009, the Legislature added W – Service Disabled Veteran. During the procurement process if the award comes down to a tie breaker between a CMBE and Service Disabled Veteran, the minority business having the lowest net worth prevails.
36How Do I Find a Minority Company? Certified Minority Vendor On-Line Directoryhttps://vendorstrator.dms.myflorida.com/directoryContact Purchasing for AssistanceAttend the AWI Purchasing & CMBE Monthly Meeting held on the 4th Wednesday in Room B-49
37Sample Purchasing Types Where Minority Vendors May Be Utilized Contracting/SubcontractingAdvertisingPrintingOffice FurnitureTravel
38How Do I Report My Minority Subcontracting Dollars? The CMBE Subcontractor Expenditure Report is to be utilized by the Contract Manager as a reporting mechanism for all subcontractor dollars.This form is to be submitted to the MBE Coordinator for the Agency (Christina Harrell) via to: no later than the 5th of each month.Section I, H, “Assigments and Subcontracts”, 7 of the Agency core contracts, states that the Contractor or their subcontractor’s must report monthly CBME expenditures from funds received by the agency. Contract Managers should be providing this form to their Vendors at the onset of the contract, and Vendors should submit the form monthly regardless if they have CMBE expenditures or not.
39How Can I Exceed Last Year’s Minority Expenditures Monitor Monthly Reports in FLAIR/FIS.Ensure STC purchases are completed with a Certified MBE Authorized Reseller, if applicable.Ensure your office is using a CMBE Travel Agent vs. going direct.Submit monthly adjustments to the CMBE Coordinator to receive proper credit for miscoded expenditures.Contact Purchasing for Assistance.CMBE Travel Vendor: Travel Leaders (Roosevelt Holloman)Make sure your contracted vendor is submitting their monthly report with their invoice.
40Agency Minority Reporting 90 Day Spending PlansQuarterly 3rd Tier Adjustments – WFI, RWBs and ELCsMonthly Agency Contractor/Subcontracting 2nd Tier AdjustmentsAnnual Small Business Participation Plan90 Day Spending Plan –Quarterly the agency provides OSD with a projected 90 day spending plan, that is posted both on our agency website as well as OSD. This provide minority vendors the ability to identify opportunities that they can market to.2nd and 3rd Tier Adjustments - Pass through money to WFI, RWBs, ELCs, agency contractors and/or their subcontractors are tracked and reported.Finally, each year the Agency is required to provide OSD and the Governor’s Office the Annual Small Business Participation Plan. We try to identify ways to increase CMBE participation through outreach, tradeshow participation, and spot lighting a minority vendor at our monthly meetings.
41LEGAL’S ROLE IN PROCUREMENT AND CONTRACT ADMINISTRATION Mike Marschall, AttorneyGeneral CounselAgency for Workforce Innovation
42AWI OFFICE OF GENERAL COUNSEL (OGC) Contacts:Rosa McNaughton, General CounselAll areas;Jim Landsberg, Deputy General CounselAll areas & Workforce Services;John Perry, Assistant General CounselUC Services;Kristin Harden, Assistant General CounselEarly Learning;
43WHAT IS A CONTRACT?“An agreement between two or more parties creating obligations that are enforceable or otherwise recognizable as law.” Black’s Law Dictionary.
44WHAT IS A CONTRACT? (continued) Agreement and obligations – means a set of promises exchanged between the parties.Enforceable – means that if a party fails to do what they promised to do (breach), a court of law will enter an order to remedy the breach, i.e., make the offended party whole.
45WHAT IS A CONTRACT? (continued) For a contract to be enforceable, the parties must have reached a meeting of the minds, or in other words, agree on the same terms, conditions, and subject matter.Therefore, contracts must be clearly written and must clearly communicate the terms and conditions, i.e., obligations; promises.The terms, conditions, and obligations must be consistent throughout the document or an explanation given as to why they are not and which controls (i.e., order of precedence list).
46WHAT IS A CONTRACT? (continued) Contracts also include:Grants.Direct orders (formerly known as purchase orders).
47WHAT IS A CONTRACT? (continued) Each Contract is UniqueThe results of legal review of one contract do not automatically translate to another contract – even the same contract year to year.What applies in one situation does not necessarily mean that the same will apply in another situation.Each contract must be written with the circumstances of the specific procurement in mind and tailored to that situation.
48THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT PROCESS To provide legal advice when questions arise during the procurement or contract process.Purchasing and program areas are encouraged to contact the OGC early in the process when questions arise, but may contact the OGC at any time during the process.
49THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT PROCESS (continued) To review procurement actions for legal sufficiency. For example, the OGC will review: ITBs, RFPs, RFQs, ITNs, SSsTo review contracts for legal sufficiency.
50THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT PROCESS (continued) Legal Review Includes:Determination that the procurement document or contract contains provisions required by federal and state law.Determination that the contract is legally sound, legally enforceable, and legally defensible in order to protect the interests of the Agency and reduce risk to the Agency.
51THE ROLE OF THE OGC IN THE PROCUREMENT/CONTRACT PROCESS (continued) The OGC does not make determinations or decisions regarding certain areas but may question or make recommendations regarding the following:A determination as to whether the purchase is the best buy.How long the term of the contract should be.Deliverables or the schedule for their delivery.Cost Price analysis.What a program area needs, what best suits the program needs.When invoices should be submitted or detail of invoices.While grammatical and typographical errors may be caught, this is not a primary purpose of legal review. Purchasing and program areas are responsible for proofing their own documents.
52Agency Contracts Components of the Agency Contract: The Agency Core; The Scope of Work (Attachment 1 to the Core) written by the program area; andOther Attachments as required or needed.
53Agency Core ContractThe standard core contract developed by the Agency for use in procurements requiring a two party contract. Developed by the OGC, and may be downloaded from the Purchasing intranet site.The core contract is a template containing standard, general contract provisions that are required in most contracts. (Any provisions not applicable or changed should be done through the Scope of Work.)The core contract is a protected template with fields to be filled in as appropriate.
54Agency Core Contract (continued) 3 Versions of the Agency Core ContractVendor Core Contract (11/18/09)Sub-Recipient Procured (11/06/09)Sub-Recipient Exempt Procured (11/06/09)Most recent version date is located in the lower lefthand corner of core contract; always use most recentversion.
55Agency Core ContractsDetermining Vendor vs. Sub-recipient RelationshipTo determine which core to use, you must first determine if there is a vendor or sub-recipient relationship.Federally Funded Projects:Utilize Agency Vendor vs. Sub-recipient check list – available on the Purchasingintranet webpage.
56Agency Core Contracts (continued) Determining Vendor vs. Sub-recipient Relationship (continued)Federally Funded Projects (continued)Vendor IndicatorsProvides the goods and services within normal business operations.Provides similar goods or services to many different purchasers.Operates in a competitive environment.Provides goods and services that may be ancillary to the operation of a program.Is not subject to the Federal compliance requirements of the federal program.(Source: 29 C.F.R (c) (1)-(5))
57Agency Core Contracts (continued) Determining Vendor vs. Sub-recipient RelationshipFederally Funded Projects (continued)Sub-recipient IndicatorsDetermines eligibility.Has its performance measured against the objectives of the program.Has responsibility for programmatic decision-making.Has responsibility for adherence to applicable federal program compliance requirements (for example, regulations).Uses funds to carry out a program of the organization as opposed to providing goods or services for a program.(Source: 29 C.F.R (b) (1)-(5))
58Agency Core Contracts (continued) Determining Vendor vs. Sub-recipient Relationship (continued)State Funded Projects:Must use Department of Financial Services Florida Single Audit Act Checklist, Form # DFS-A2-NS, July 2005.Use of this form is required by Rule 69I-5.006, Florida Administrative Code.
59Agency Core Contracts (continued) Determining Vendor vs. Sub-recipient Relationship (continued)Once the vendor vs. sub-recipient relationship has been identified, use the appropriate Agency Core Contract, i.e., Vendor Core, Sub-recipient Procured Core, or Sub-recipient Exempt Procured Core.
60Agency Core Contracts (continued) Vendor Core ContractTo be used when:- There is a vendor relationship. For example, Contractor is providing 100,000 widgets.Requires use of:- Attachment 1 (Scope of Work);Attachment 2 (Certifications); andARRA Supplemental Provision (if applicable).
61Agency Core Contracts (continued) Sub-Recipient ProcuredTo be used when:There is a sub-recipient relationship. For example, the contractor is running a program, determining eligibility, enrolling students; andThe purchase was procured. For example, an RFP was used to obtain proposals from several entities.Requires the following attachments:Attachment 1, “Scope of Work”Attachment 2, “Certifications”Attachment 3, “Assurances”Attachment 4, “Audit Requirements”ARRA Special Conditions, if applicable
62Agency Core Contracts (continued) Sub-Recipient Exempt-ProcuredTo be used when:There is a sub-recipient relationship; andThe purchase was exempt from procurement requirements. For example, when the contractor is statutorily exempt, such as a university that is a sub-recipient.Requires the following attachments:Attachment 1, “Scope of Work”Attachment 2, “Certifications”Attachment 3, “Assurances” andAttachment 4, “Audit Requirements”ARRA Special Conditions, if applicableNOTE: Attachment 1, Scope of Work, does not include the language incorporating the solicitation documents. This is because there will be no solicitation documents because there was no procurement.
63Agency Core Contracts (continued) Core Contract Template Fields1. Contract # - provided by purchasing.2. Contractor Name – insert.3. Type of Contract – drop down menu with following options: fixed price, fixed rate, cost reimbursement, fixed price/cost reimbursement, and fixed unit price.
64Agency Core Contracts (continued) Core Contract Template Fields (continued)4. Begin date of contract – insert month, day, year.5. End date of contract – insert month, day and year.6. Contract amount – insert.
65Agency Core Contracts (continued) Core Contract Template Fields (continued)7. Contract Renewal Term – insert (must be 1 of the following: (a) for a period not to exceed 1 year; (b) for a period not to exceed 2 years; (c) for a period not to exceed 3 years; (d) for a period not to exceed the original term of the Contract; or (e) may not be renewed. This provision should also explain how the contract may be renewed, e.g., for 3 one year terms.
66Agency Core Contracts (continued) Core Contract Template Fields (continued)8. Payee & Contract Manager contact information – insert.9. Total number of pages – insert with total number of pages including attachments.10. Signatory information – insert.
67Agency Core Contracts (continued) Core Contract Template Fields (continued)11. Contractor Federal Employer Identification Number – insert.12. Reference to solicitation document – insert appropriate ITB, RFP, RFQ, or SS #.13. Scope of Work – insert tailored scope of work.
68Agency Core Contracts (continued) Scope of WorkAttachment 1 to core contract.Prepared by the program area.Contents may include but are not limited to:DeliverablesThe manner in which deliverables are to be providedLocation where work is to be performedTimelinePerformance MeasuresReporting/Monitoring requirementsMethod of PaymentLiquidated DamagesSpecial provisionsHow to draft a scope of work and the required contents will be presented later.
69Agency Core Contracts (continued) Other AttachmentsCertifications (Attachment 2)Required for all contractsDebarment and SuspensionLobbyingDrug Free WorkplaceNondiscrimination & Equal OpportunityCertification Regarding Public Entity Crimes
70Agency Core Contracts (continued) Other Attachments (continued)Assurances (Attachment 3)Required for all sub-recipients.Federal law requires that the sub-recipient give assurances that it will comply with certain federal laws. These include laws against discrimination, laws limiting political activities when the contract is funded with federal money, safety standards, fair labor standards, environmental laws, and compliance with controlling OMB Circulars regarding audits.
71Agency Core Contracts (continued) Other Attachments (continued)Audit Requirements (Attachment 4)Required for all sub-recipientsDetails audit requirements for federally and state funded contracts.Details Certain Financial Reporting Requirements
72Subcontracting by the Contractor Allowed only with prior approval of the agency.Anticipated subcontract agreements known at the time of proposal submission and the amount of the subcontract must be identified in the proposal. If a subcontract has been identified at the time of proposal submission, a copy of the proposed subcontract must be submitted to the agency.No subcontract that the contractor enters into with respect to performance under the contract shall in any way relieve the contractor of any responsibility for performance of its contract responsibilities with the agency.The agency reserves the right to request and review information in conjunction with its determination regarding a subcontract request.The use of minority subcontractors is strongly encouraged. (See Minority Subcontract Report Form Attached).
73CONDUCTIntegrity and public confidence in a competitive procurement process is essential, andAs a state employee involved in the procurement process, you must maintain complete independence and impartiality in dealings with vendors, both in fact and appearance.
74CONDUCT (continued)Always remember to follow statutes and regulations regarding ethics in procurement. For example,Section (2), F.S., Solicitation or acceptance of gifts.Section (3), F.S., Doing business with one’s agency.Section (4) F.S., Unauthorized compensation.Section (6) F.S., Misuse of public position.Section (7), F.S., Conflicting employment or contractual relationship.Section (8), F.S., Disclosure or Use of Certain Information.
75CONDUCT (continued) Section 112.3148, F.S., Prohibiting: a procurement employee for the state from soliciting any gift from a political committee, committee of continuous existence, lobbyist who has lobbied his or her agency within the past 12 months, or the partner, firm, employer, or principal of such a lobbyist;a procurement employee for the state from knowingly accepting, directly or indirectly, a gift worth over $ from such a lobbyist, from a partner, firm employer, or principal of the lobbyist, or from a political committee or committee of continuous existence :Prohibits a procurement employee for the state from soliciting an honorarium which is related to his or her public office or duties; anda procurement employee for the state from knowingly accepting an honorarium from a political committee, committee of continuous existence, lobbyist who has lobbied the person’s agency within the past 12 months, or the partner, firm, employer, or principal of such a lobbyist.
76CONDUCT (continued)Make decisions based upon the law and the best interests of the agency and the public.Disregard personal relationships and preferences, and avoid personal gain.Act in ways you would be comfortable seeing in the press, discussing with your family, and defending before a judge.
77contact the Office of General Counsel CONCLUSIONWhen in doubt…contact the Office of General Counselat
78WRITING THE CONTRACTLaura I. JenningsPurchasing Manager
79Contractual Servicess (4), F.S. – states that every procurement of contractual services in excess of Category Two ($25,000) threshold shall be evidenced by a written agreement or purchase orderInternal Agency Threshold$25,000 but <$50,000 requires MFMP Direct Order>$50,000 requires a Two-Party Written AgreementOne exception – State Term ContractsNote: Agencies are allowed to use the PCard for contractual services direct billings that do not exceed $75,000 in a State fiscal year
80WRITING THE CONTRACT Basic Core Contract Layout Attachment 1 Recommended Format for the Statement of Work.Include Performance Specifications.MeasuresDefinitionMeasurement MethodologyInclude Method of PaymentBasic Core Contract Boilerplate - LayoutSection 1 – Contractor Specific Terms and Conditions, page 1Section 2 – Agency Specific Terms and Conditions, Page 14Section 3 – Contractor/Agency Specific Terms and Conditions, Page 15Section 4 – Beginning on Page 19 Attachment 1 (SOW), Attachment 2 Certifications and any other relevant attachments (ARRA Supplemental Provisions, price sheets, exhibits)
81Attachment 1 (Statement of Work) Services to be Provided (What)Manner of Service Provision (How)Method of Payment (How and When)Special Provisions (Any additional clauses that were not previously addressed in the core contract, solicitation or Attachment 1)After the basic core contract boilerplate is the Attachment 1, “Statement of Work” which should address each of these topics.
82A. Services to be Provided 1 Definition of TermsContract TermsProgram or Service Specific Terms2 General DescriptionGeneral StatementAuthorityScope of ServiceMajor Program Goals3 Service RecipientsGeneral DescriptionRecipient EligibilityRecipient DeterminationContract LimitsSo under the section “Services to be Provided”Definitions – provide a list of important contract terms. Include definitions for all terms, terminology, standards, performance or acronyms that are unfamiliar, unusual or unique to the program area.General Description – should include a general statement, description of the history, purpose and the benefit the state wishes to achieve, describing major goals, long range or broad objective which are pertinent and describe the outcome measures for the services provided. The scope of services should not cover requirements that contradict or already covered in the General/Special Terms and Conditions.
83B. Manner of Service Provision 1) Service Tasks2) Staffing RequirementsStaffing LevelsProfessional QualificationsStaffing ChangesSubcontractors3) Service Location & Equipmenta) Service Delivery Locationb) Service Timesc) Change in Location and Timesd) EquipmentTask List: provide a list of specific tasks (e.g., counseling, transportation, day care, case management), a description of the task and any specific elements which are included or must be considered in task performance.Task Limits: provide a description of the limits within each task must be performed. These limits maybe programmatic, medical, financial, legal, or geographic.Staffing levels: specify the number and type of staff members are required to have available to perform the work.Professional Qualifications: Specify what professional licenses, certifications or experience the vendor’s professional staff members are required to posses or obtain.Staffing Changes/Subcontractors: specify under that conditions the vendor is required, or permitted to make staffing changes, specify what approvals or notification requirements are necessary to make staffing changes, and any lead times required for notification or approvals.Service Delivery Locations: Specify the street address, city, etc., where the services are to be delivered. Describe any specific physical or facility requirements which must be available for service delivery or client use.Service Times: Specify when the services must be available, the minimum or maximum frequency of the delivery of services, and any requirement for responding to emergencies or unexpected needs for services, and any information necessary to identify what constitutes service completion.Changes in Location: Specify who may approve changes in location during the course of the contract, advance notification requirements to change locations, and requirements for temporary arrangements which must be made in the event of location changes.Equipment: Describe any equipment that is to be provided by the agency to the vendor or what the vendor will use and provide that must be available for services delivery.
84B. Manner of Service Provisions Continued…. 4) Deliverablesa) Service Unitb) Reportsc) Records and Documentation5) Performance SpecificationsOutcomes and Outputs/AccountabilityOutcomes: i.e., reductions in adverse conditions, scores, etc.Outputs: i.e., specific number of activities that need to be completed.Standards DefinitionsMonitoring and Evaluation MethodologyPerformance DefinitionsService Unit: Describe, specifically, what comprises a service unit, how many units, by type of service, will be provided under the contract. Outline any limitations or special considerations that affect the delivery of service. Describe other characteristics, such as unit of measure and quantity that must be provided.Reports: Specify the type, frequency, form, content and construction of any reports which the vendor is required to submit as part of the contract.Records and Documentation: Describe the form and content of any records, or documentation which the vendor is required to maintain, any limitations which are pertinent to the inspection and availability, who makes final determinations regarding questions about records, and how is the determination obtain, include information regarding format (manually, electronically, or both).Performance Measures: detailed descriptions of how the state will measure the performance of the deliverable, outcomes and outputs must be measurable and expressed in mathematical terms (percentages, ratios, average, units).
85B. Manner of Service Provisions Continued…. 6. Provider Responsibilitiesa) Provider Unique Activitiesb) Coordination with Other Providers and/or Entities7. Agency Responsibilitiesa) Agency Obligationsb) Agency Determinations
86CONTRACT DEVELOPMENT AND REVIEW PROCESS Laura JenningsPurchasing ManagerAgency for Workforce Innovation
87Contract DevelopmentSection Two, Part I of the Purchasing and Contracting Procedures ManualContract Development ProcessBasic Core ContractScope of WorkCertificationsOther AttachmentsTypes of ContractsContract Review, Approvals, Execution, Distribution and File Set UpContract Development Process – A Contract Checklist is available on the AWI Forms Library, it outlines the responsibilities of the Contract Administrator and the Program Area Contract Manager. Program Areas should utilize the checklist as reference tool to view the Contract Development process.Basic Core Contracts – There are basically three AWI core contracts. Vendor, Subrecipient Procured and Subrecipient Exempt Procured.Types of Contracts – Fixed Price/Fixed Rate Price; Cost Reimbursement; Performance Based or combination
88Review & Approval Process s (19), F.S. – Contractual Services >$50,000Each agency shall establish a review and approval process for all contractual services contracts costing more than the threshold amount provided for in s for Category Three which shall include but not be limited to:ProgramFinancial, andLegalreview and approval. Such review and approvals shall be obtained before the contract is executed.Statute determines the minimum threshold and who should review and approve contracts before a contract is executed.
89Contract Routing Review Process Program AreaPurchasing ManagerIT Manager, if applicableGrant ManagerBudget ManagerGeneral CounselExecutive Management Level AuthorityForms Library - it is the contract managers responsibility to input all required information on the applicable core contract, including completing all necessary certifications and attachments to the contract and the Contract Routing Review Sheet.The contract manager shall provide the entire packet of completed documents which includes the contract, contract routing review sheet, Vendor vs. Subrecipient Checklist for review and approval.The Purchasing Office will route the contract package through the Agency review and approval process as outlined.
91Contract Amendments There are two types of contract amendments: Those that result in a Minor RevisionA technical change that does not alter the contract objectivesExamplesMisspelled wordsWord omissionsTransposed numbersThose that result in a Major RevisionA major revision is a substantive change to the contract.ExampleBudget ModificationNew ClauseChange in timeframes for completing objectivesChanging the name of the AWI Contract Manager should also be taken into consideration when developing the scope of work, making it possible to update through correspondence rather then through a contract amendment.
92Processing a Minor Revision Make a pen and ink change to the contract.All signers on the original contract must initial and date each change.Never “white out” or scratch out” text; simply draw a single line through the text. The original language must be legible.
93Processing a Major Revision Requires a Contract Amendment.An amendment is a document which makes substantive changes to any part of an executed contract. A request to amend a contract may be initiated by either the Agency or the contractor. For example….Method of PaymentTime period of the contractCost of ServicesServices to be delivered.
94Development of an Amendment Meet with the contractor to discuss any proposed changesIf the contractor initiated the request, please have them submit the request in writing.Determine why the contract needs to be changed; changes should only be made when there is sufficient justification for doing so.Assess the implications of the proposed change on the delivery of services, service units, cost of services, the ability of the contractor to render quality services, and the effect the change will have on the clients served by the contractor.
95Developing an Amendment Continued…. Conduct a cost/price analysis to justify changes in contract amount.Draft an amendment based upon amendment format.If the amendment results in an increase in cost, it is required that a detailed cost/price analysis be completed to justify the increase cost.The contract manager is responsible for developing the “draft” amendment and forward the “draft” amendment and completed Contract Routing Review Sheet to the Purchasing Office for review. The execution of the amendment follows the same process as the original contract.
96Amendment Review Process Amendments must go through the same review process as contracts.Complete the Contract Review Form.Attach draft copy of amendment for review and approval.Attach copy of previously executed amendments and a copy of the executed original contract.Remember:An amendment may not be retroactive.Expired contracts may not be amended.Amendments must be executed prior to the effective date.Amendments are to be signed by original contract signers.
98Contract Renewals s. 287.057(14)(a), F.S., states: Contingent upon satisfactory performance evaluationSubject to the availability of funds.”s.60A-1.048(b), F.A.C., states:Justification that the renewal is in the best interest of the StateMaintain a copy of the justification in the contract fileAuthorized by mutual agreement in writingPurchasing and Contracting Procedures ManualPage 86 incorporates the requirements listed aboveThe agency must provide documentation justifying that the renewal is in the best interest of the State, and maintain a records of this in the contract file. The renewal is also contingent upon satisfactory performance evaluations by the Agency.
99Renewal Performance Evaluation See revised Renewal Template, dated 4/18/09
100Contract RenewalsContracts for commodities or contractual services may be renewed on a yearly basis for a period up to 3 years after the original contract, or for a period no longer than the term of the original contract, whichever is longer.Renewal language must be included in the original contract (and bid/proposal/reply)Renewal is subject to same terms and conditions of the original contract.Renewal must be executed before the expiration date of the contract.Example: 2 year original term, 3 year renewal (these could be annual) or you could have a 10 year contract, 10 year renewal.
101Renewal ExceptionsA Renewal may not be processed for the following contracts:Contracts resulting from an emergency procurement.Single Source procurement contracts.Contracts procured competitively if the costs of contemplated renewals was not included in the initial ITB, RFP or ITN.
102Processing a RenewalComplete, sign and date the Contract Routing Review Sheet.Do not change contract start date, only update the ending date.Attach draft copy of renewal amendment and renewal performance evaluation to a copy of the fully executed contract, along with a copy of the vendor vs. sub-recipient checklist, and any previous amendments/renewals and forward to Purchasing (Contract Administrator) for agency review and approval.REMEMBER: Renewals must be executed prior to the expiration date of the original contract.
104Contract ExtensionsAn extension is an increase in the length of the contract time period. It is processed by preparing an amendment.An extension does not allow for an expansion of the scope of services.
105Reasons for Extending a Contract The Agency or the Contractor under estimated the time necessary to complete the contract.Arrival of a crucial piece of equipment needed to complete a task is delayed.Legitimate delay in contract start-up date results in unmet contract objectives and funds not being fully expended by the contract expiration date.
106Conditions of Contract Extensions Amendment for extension must be executed before the contract expires.Extension period shall not exceed six months.Extended contract subject to same terms and conditions of initial contract.Extension granted only once, unless failure to meet the criteria set forth in the contract for completion of the contract is due to events beyond the control of the contractor.Extension are mostly used when procuring new services and there is a delay in award such as a protest. Or maybe the agency had to reject all bids and resolicit.
107Agency for Workforce Innovation CONTRACT MANAGEMENTLaura JenningsPurchasing ManagerAgency for Workforce Innovation
108Who is a Contract Manager? Chapter (15), F.S., provides that “For each contractual services contract, the Agency shall designate an employee to function as a contract manager who shall be responsible for negotiating, administering, monitoring and enforcing the terms and conditions”.
109Roles and Responsibilities Enforcing the terms and conditions of the contract.Carrying out the preparations for contracting.Developing the Scope of Work (SOW).Developing evaluation tools for bid analysis.Negotiating contract, amendments, etc..Reviewing and approving invoices.Monitoring provider’s performance and corrective action plans, as necessary.Maintains a comprehensive Contract Manager File.Performing contract close out procedures.The contract manager is the individual who is primarily responsible for negotiating, monitoring and enforcing the terms and condition s of the contract.This individual is responsible for the success of the contract.The Contract Manager is the primary point of contact through which all contracting information flows between the agency and the vendor in coordination with the Purchasing Office.
110Monitoring Responsibilities Compliance with Terms and Conditions,Getting what we pay for,Track fiscal responsibilities (are funds being used appropriately),Detect non-compliance, problem resolution,Corrective Action Plans, and follow-up,Acceptable level of services is being providedContract monitoring is the process by which the Contract Manager verifies the contractor’s progress to ensure that their performance meets the contracts performance standards.Contract monitoring is the primary tool used to guard against contracting problems after the contract is executed.Contract monitoring includes two quite difference approaches – reactive and proactive. Reactive methods are where another person/notifier tell contract manager there is a problem or concern. Proactive methods involve planned collection and collation of information, ideally on a routine and regular basis.
111Monitoring PlanEvery Contract Manager is required to establish a written Contract Monitoring Plan, and it requires their Supervisor’s review and approvalWritten Plan should include the following:Periodic ReportingContract Deliverables by On-site Reviews and ObservationsDevelop a checklist when deliverables are due (i.e., insurance certificates)Minimum annual reviewClient SurveysOther periodic contact and on-going monitoringReview of Audit ReportReview and approval of invoice paymentsSigned Statement of IndependenceA monitoring plan provide a proactive approach. The Contract Manager’s Supervisor should consider the Contract Managers duties as part of the employee’s job expectations.Periodic Reporting: the plan should include a written description of any periodic reporting required by the contract or good business practice and written description of how the periodic reporting material will be utilized by the contract manager to monitor the services.Contract Deliverables by on-site review and observations: the plan should require not less than one annually for each term of the contract. The contract manager should make a “working copy” of the contract to identify performance, requirements, responsibilities and deliverables.Client Surveys: survey a sample of the recipients of the provider services.Other periodic Contact and on-going monitoring: include a written description of other periodic contacts, describe on-going processes to resolve non-performance issues, all performance issues should be resolved timely and documented. Review Audit Report: the plan should include a written description of any audit reports or other independent evaluation reports. Reports should be signed and dated by the contract manager after being reviewed.Review and approval of invoice payments: The plan should include a description of the process of verifying and documenting that the rates or costs that the vendor is invoicing are in fact correct.Statement of independence: the plan should include a statement that the Contract Manager is independent of and has no conflict of interest with the entity or entities being monitored. The Contract Manager should also provide a signature next to this statement.
112Contract Closeout Process Begin 60 days prior to contract expiration.Documents Success or Failure.Reference point for future procurements.Complete the AWI Contract Manager’s Contract Closeout Guide check list.Contract closeout should be completed prior to initiating a contract termination or before contract expiration. It is recommended that this process start 60 days prior to termination or expiration.Contract Managers are required to complete the AWI Contract Manager’s Contract Closeout Guide check list.
113What is the Contract Manager File? A tool used by the Contract Manager to keep pertinent information related to a contract in a logical and coherent manner.The files are maintained for a period of 6 years following contract closeout or resolution of pending action.
114Purpose of Contract Manager’s File State law requires that a file be maintained for every contract.Ensure that documentation exists to protect the agency, as well as, to clarify events, should a protest, audit or other situation arise.Provides pertinent information related to a contract.Provides required documentation on decisions and events related to the contract.
115Contract Manager’s File Consists of two sub-files:The procurement file: The procurement file contains all documentation and information regarding the providers selection process before the contract is executed.The contract file – The contract file contains all pertinent information related to a contract from the time it is awarded until contract closeout.General Services keeps the AGENCY CONTRACT ADMINISTRATOR’S originals. However, each Contract Manager should also maintain copies for their records.
116Contract Manager’s File File should be neat, complete and organized. The following table is a DFS example in a multi-leaf file folder organized into six main sections and the respective, relevant contents.#Section TitleContents1Contract RecordQuick reference info (provider name, address, phone, ); contact sheet detailing agreement history (meeting notes, phone contact documentation); calendar showing all reporting dates, payment dates, renewal dates, deliverables schedules.2AuthoritativeOriginal agreement & amendments; Single Audit Act documentation; Florida Statutes, Florida Administrative Code, department rules, appropriation language; subcontracts/subgrants and associated ITB/RFP/ITN document; provider certifications.3Payment HistorySpreadsheet with running payment balance, warrant copies, voucher copies.4Payment RequestInvoices, deliverables schedule, deliverables documentation.5VerificationSite visit documentation, independent documentation supporting deliverables, expense validation, audit reports & findings resolution, reconciliation of audit report expenses versus invoiced expenses, client surveys.6CorrespondenceAll correspondence documentation – letters, copies, vendor-related media copies, etc.
117Resources Florida Statutes Florida Administrative Code AWI Agency Addressed MemorandaDMS State Purchasing MemorandaDFS Reference Guide to State ExpendituresDFS CFO MemorandaDFS Best Practices for Contract and Grant ManagementOMB CircularsMyFloridaMarketPlace Tool KitInternetAWI IntranetContract Monitoring Tool
118PROGRAMMATIC MONITORING John HerndonUnemployment Compensation Services
119Monitoring Overview The Need for Monitoring Types of Monitoring Elements of MonitoringMonitoring Methods and ToolsProgrammatic MonitoringContract Monitoring
120The Need for Monitoring Monitoring—what is it? An objective, on-going and reasonable evaluation that occurs throughout the contract period to ensure compliance with applicable laws, rules, regulations, policies, and contractual provisions.Why monitor?It is required.Ensures contractor’s compliance with the terms and conditions of the contract and applicable laws, rules, and regulations.Ensures Program area is getting what it needs and is only paying for what it contracted for.Enables early detection/prevention of non-compliance by identifying and resolving potential problems through constructive, timely feedback.Ensures necessary, timely, and appropriate corrective actions are taken.Ensures fiscal responsibilities--costs are allowable, allocable and documented.
121Types of Monitoring Programmatic Monitoring Contract Monitoring Evaluates the contractor’s performance in meeting program areas’ contract scope of work.Evaluates contractor performance quality.Establishes historical data for potential future contracts with the Contractor.Contract MonitoringEnsures Agency compliance with federal and state requirements.Provides Agency oversight and ensures best practices, concerns and problems are shared throughout the Agency.Verifies payments are within the limits of the contract.
122Elements of Monitoring Maintaining well documented, current contracting files.Identifying, reviewing, and analyzing Contractor reports.Tracking project milestones and timelines, contractor performance, and costs.Reviewing, approving, processing, and tracking invoices.Reconciling invoice payments.Monitoring Plans: A formalized means of defining appropriate and specific monitoring methods. Determined by the type of contract, level of risk, amount of award, complexity of program, etc.Tailor monitoring plans and activities to the particulars of each contract.Documentation!
123Monitoring Methods and Tools Determine monitoring methods and tools.May be impacted by the type of contract or funding and may include documentation, observations, surveys, interviews, tests, etc.Determine the nature, timing and extent of monitoring.Program complexity: Complex programs have a higher risk of non-compliance and require more rigorous monitoring.Vendor/Sub-Recipient Risk: Prior history, personnel changes, new systems and the status of the contract relationship impacts the level and frequency of monitoring.Amount of Contract Award: The larger the contract award, the greater the risk and need for more rigorous monitoring.Identify the tools to be used to measure and assess performance and compliance.
124Programmatic Monitoring Programmatic Monitoring deals with contract and program compliance requirements.Should answer the question “are we getting” what we contracted for?Includes both primary contractor and any sub-contractors.Evaluates and documents Contractor/sub-contractor performance.May be met by making on-site visits, reviewing contractor documentation, conducting periodic or client reviews, personal observations, conducting tests, reviewing state/agency audits, or any other activities that provides assurances of satisfactory contractor performance and project requirements are met as scheduled.Must be documented.
125METHODS OF PROGRAMMATIC MONITORING Documentation – may be written reports from the contractor, acceptance tests, client surveys, audit reports, invoices, s, letters, and other forms of documentation etc.Observation – includes on-site reviews to the contractors’ location or other locations where the services are being provided to evaluate progress, processes, and documentation first hand.
126Tips for Effective Programmatic Monitoring Determine monitoring requirements, methods, tools, etc.. Ideally, this should be done during the RFP and contract development process.Maintain regular, effective contractor dialogue and review contractor performance and progress on a regular basis.When possible, conduct on-site reviews and interview contractor staff to determine their understanding or contractual requirements, review key documentation and observe operations.If applicable, conduct client surveys to determine service delivery quality and satisfaction and require the contractor to resolve complaints.Ensure the contractor complies with the AWI Program standards, regulations and contract provisions.Document monitoring results and ensure that appropriate corrective action is taken for any deficiencies.Follow-up to ensure that deficiencies have been timely and satisfactorily corrected .
127Summary of Programmatic Monitoring The Contract Manager is responsible for the ongoing management of the contract.Maintaining a well organized contract managers’ file is a reflection of you.Effective programmatic monitoring ensures your contracts and the services meet your program’s objectives.
128Financial Management Systems Assurance Section CONTRACT MONITORINGFinancial Management Systems Assurance SectionHenrietta “Penny” Lee(FMSAS)
129Contract Monitoring Why do we have contract monitoring? What information will be reviewed?How do we complete the contract monitoring process?Who will be monitored during FY09-10?When will the monitoring take place?Where will the monitoring take place?08-09 Observations08-09 Overview – Findings.Other Suggested Best Practices.
130Why do have contract monitoring? AWI is charged by state and federal regulations with oversight of the funds it expends for contracted services.Contract monitoring encompasses administrative and performance standards expected to be met by the Agency’s contractors according to their contracts and applicable federal & state rules, regulations and instructions.AWI’s contract monitoring procedures are subject to audit by state and federal agencies.
131What information will be Reviewed? Contract/Direct OrderScope of WorkInvoices and invoice process.Other file documentation that supports “due diligence” over the contract by AWI staffOther documentation outside of the contract file. (AWI policy, program rules, federal/state procurement instructions)
132How do we complete the contract monitoring process? Entrance Meeting – Meet with program staffReview the contractEnsure the contract and contract file meet the minimum federal, state and AWI’s procedure requirementsEnsure the scope of work and deliverables are met based on contract languageReview the invoices to ensure they are paid within and according to the terms and conditions of the contractEnsure that expenditures were made in accordance with applicable laws, rules and regulations; were authorized by the agreement; were directly related to the project; and were properly supported
133How do we complete the contract monitoring process? (Continued) Identify and summarize testing results and any deficiencies notedIdentify and summarize testing results and any best practices foundExit Conference on draft program summary reportAdditional input from contract managers is required (if needed) to perform any follow-up as we finalize test resultsComplete the AWI draft reportAWI management review and approval of reportSend out final approved report to program areasCorrective action plan processing performed, if needed
134Who will be Monitored FY 09-10 AWI has a Monitoring Plan that assists in the determination which Contracts will are selected to be monitored.Five contracts and four direct orders have been selected for monitoring at this time.Three full contract monitoring processTwo contract monitoring for ARRA onlyFour Direct Orders processesAWI Management may make changes to this sample list.
135When will the monitoring take place? Starting March 1, 2010 and completion is targeted by June 30, 2010.Each Project Manager/Contract Manager will be contacted by with more information.
136Where will monitoring take place? Contract-related data request memos will be sent to the program areas.All testing material will be scheduled and data items will be reviewed by FMSAS staff.Question/Answer sessions are currently underway with Project Managers or Contract Managers.The review process continues from FMSAS office.Summary results are performed from our office.
13708-09 Overview – Observations Missing approval documentation in filesSubrecipient vs vendor checklist in the file but incompleteMissing file informationMissing deliverable approval from fileInconsistent or incomplete supporting documentation in filesContents of contract file incomplete and/or disorganizedSee handouts
13808-09 Overview – FindingsAWI could not provide a comprehensive two-party contract listing.An employee was conducting contract manager duties but was not an AWI certified contract manager.AWI’s contract renewal process was not followed as specified in the AWI’s policy and procedures manual.Contract Managers did not conduct the contract close-out procedures.
13908-09 Overview – Findings (Con’t) Contract managers did not document payment reconciliation to FLAIR (state accounting system) in the contract files.
140Other Suggested Best Practices A checklist has been developed to ensure that the contract renewal process has complete minimum agency requirements.A checklist has been developed to determine and document the subrecipient vs vendor relationship for all contracts.Coordinate with other AWI staff as needed to share guidance information, technical assistance or other available reference materials.Continue/expand management training for contract/program staff.
141American Recovery and Reinvestment Act (stimulus) Additional/enhanced monitoring will be required in for grant funds disbursed under the American Recovery and Reinvestment Act. We anticipate additional monitoring requirements will apply. We’re currently waiting on further guidance and instructions from the federal awarding agencies and OMB. We are advising contract managers that have contract with stimulus dollars, have there contract files and all pertinent documentation readily available for monitoring purposes.