Vendor Responsibility PRACTICAL IMPLEMENTATION & VENDREP SYSTEM INITIATIVE State Purchasing & Trade Show May 17 & 18, 2006 Empire State Plaza, Albany

Overview of Vendor Responsibility Where are we today? Vendors Agencies OSC

Objectives Components of a Strong Agency Review Components of Adequate Documentation Components of OSC Review

Responsible Vendor Financial & Organizational Capacity to perform contractual obligations Legal Authority to conduct business in NYS Integrity to warrant an award of taxpayer funds Past Performance on government contracts

State Agency’s Obligations To assess every vendor according to the 4 factors - FLIP New Contract > $100,000 Obtain vendor disclosure based on FLIP New Contract < $100,000 Consider any information that has come to your attention Risk-based

Financial and Organizational Capacity Assets and Liabilities Recent Bankruptcies Equipment & Facilities Staff Resources & Expertise Appropriate Accounting & Auditing Procedures

Legal Authority Licensure Requirements Charities Registration with NYS Attorney General Operating Certificates MBE/WBE/DBE Certifications

Integrity Criminal Indictments or Convictions Debarments Outstanding Tax Liabilities Liens & Judgments Prior Finding of Non-Responsibility

Past Performance Reports of less than satisfactory performance Early contract termination for cause Contract abandonment Agency experience

Documentation Required for a Complete Procurement Record Depending on the value and type of transaction Agency Responsibility Certification Agency Responsibility Profile Vendor Disclosure Independent Research

Vendor Responsibility Profile Documents the Process used to Determine Responsibility including: Methods of disclosure Any cautionary information found or potential issues identified Steps taken by agency to assess vendor responsibility Agency Assessment of each item For factors other than Integrity, Agency Resolution of an issue is as it relates to the specific scope of work

OSC Contract Review Every transaction submitted for OSC approval receives a vendor responsibility review Bureau of Contracts (BOC) Primary Auditor – initial review VendRep Auditor – concurrent with BOC procurement audit

VendRep Team Review Agency Profile Vendor Disclosure All Attachments All documentation provided including: Agency Profile Vendor Disclosure All Attachments

Consider Method of Disclosure Are 4 factors addressed? Is adequate explanation provided for any affirmative responses?

Consider Agency Process Accepted vendor disclosure at face value? Independently verified information provided? Documented resources consulted? Internet Sources Other Agencies Documented Agency offices consulted? Program Office Legal

Consider Agency Documentation of Potential Issues All Disclosed items Failure to disclose Information found by independent review

Example Potential Issue – Vendor has outstanding State, Federal or Local Tax Liability Adequate Resolution: Vendor has executed a payment plan to satisfy outstanding tax liabilities. Payments will not adversely impact financial resources for this project

Example Potential Issue – Vendor has Serious or Willful OSHA Violations Adequate Resolution: Serious OSHA violations for facility/office not involved in this project Serious OSHA violations remediated by corrective action plan and staff training

Example Potential Issue – Current or Previous Bankruptcy Adequate Resolution: Vendor has emerged from bankruptcy protection in strong financial position No contract payments will be made until goods/services are received and accepted. Other vendors are available to provide goods as necessary – therefore no risk

Not an Adequate Resolution “See Questionnaire” “Fine Paid”

VendRep will Contact the Contracting Agency Missing Documents Incomplete Documents Disclosed information is not assessed Assessment is not project-specific OSC aware of information not documented Responsibility determination not adequately justified

Centralized Online VendRep System Initiative

OSC VendRep System Initiative Government VendRep System On-line Services Enrollment and Login Web Applications Business

High Level System Design Phase I – Vendor Disclosure Enrollment, vendor response set, vendor contract data and notifications Phase II – Agency Documentation Profile, external interfaces, resource checklist, procurement code and issue reporting Phase III Interface with new Central Accounting System

Demonstration of Vendor Functionality

Question Set Branches Question Set Content Core questions Additional or different questions determined by responses to Basic Info / Branching Questions Different question sets: For Profit, Non-Construction Not-For-Profit Construction

Overview of Contracting Entity Functionality Enrollment Login Search View Response Set Notification Contract Data

Implementation Plan Begin Scheduling Participating Agencies End of April Identify Testing Resources Vendor and State Agency Testing June - July Training Procedures and Process System Functionality July - System Live Third Quarter 2006

www.osc.state.ny.us/vendrep/ Contact us at: Vendrep@osc.state.ny.us (518) 408-3687