The Contract Review Process 1 Contract Review Process

The Contract Review Process 1

Contract Review Process • What Happens at OSC? • How are Contracts Reviewed? • The Procurement Record • Single and Sole Source Procurements 2

What happens at OSC? 3

• OSC reviews approximately 45, 000 transactions annually. – New Contracts – Amendments to Existing Contracts – Purchase Orders – AC 340’s 4

In addition, OSC staff… • Assists agencies with the development and review of their RFP’s or IFB’s • Reviews and resolves procurement protests with assistance from our legal staff • Responds to telephone calls from agencies to assist them in the contracting process • Participates in various work groups in order to advance technological and process improvements • Offers contract/procurement training to agencies 5

• After receipt by OSC’s central mailroom, transactions are delivered to the Contract Control Unit in the Bureau of Contracts – It is important to make sure packages are labeled BUREAU OF CONTRACTS, 11 th FLOOR – Do not put contracts and vouchers in the same envelope • The Contract Control Unit opens the mail and all transactions are date-stamped. • Each contract transaction is then logged in to the Central Accounting System (CAS) in order to acknowledge receipt by OSC 6

New Transactions: • The Contract Control Unit distributes transactions to the audit teams based on the batch type identified by the agency. – Since the batch type routs the contract to the proper audit team, it is VERY important that you use the correct batch type to avoid delays in processing (see recently updated bulletin G-194 for batch types. ) 7

Amendments to Contracts • A list of contracts being amended is generated by the CAS. • Our warehouse staff in Menands (Riverview) pulls the original contract files on the list. • Contract files are sent by courier to the Contract Control Unit where they are matched with the contract amendment to be reviewed. • The documents are delivered to the audit teams for review. 8

New Transactions & Amendments • Contracts are assigned to auditors in the appropriate team by supervisory staff – Auditors enter contract information on our Contracts Database – Auditor sorts contracts by priority: • Emergency & time sensitive • Contracts with Not-For-Profits • “Quick” contracts, etc. – Auditor begins reviewing the transaction 9

How are contracts processed? 10

New Contract Review • Review RFP/IFB – To assure compliance with the Procurement Stewardship Act • Review Procurement Record to assure compliance with the RFP/IFB – An incomplete procurement record is the number one cause for time delays in reviewing and approving contracts. – Review the evaluation and selection for fairness, reasonableness and to determine that it is in accordance with what was published in the RFP/IFB 11

Office of the State Comptroller • The Procurement Record – Definition – Requirements – Checklist – Benefits – Bid Protests 12

Office of the State Comptroller • The Procurement Record – Definition: “The documentation of the decisions made and the approaches taken in the procurement process. ” 13

Office of the State Comptroller • The Procurement Record – Requirements – – – Description Need Statement Procurement Method/Method of Award Contract Reporter Advertisement Competitive Field Scope of Work 14

Office of the State Comptroller • The Procurement Record – Requirements (cont’d) – – – Evaluation Criteria Application Methodology Basis for Award and Selection Best Value Criteria Best Value Application 15

Office of the State Comptroller • The Procurement Checklist – Checklist • Assist agencies in preparing, documenting, and submitting the procurement package. • Follows the procurement process from need to contract execution. • Documentation requirements are dependent upon the type and complexity of the procurement. 16

New Contract Review • Review contract terms and conditions to assure that: – The important contract terms match what was published in the RFP/IFB – The terms are reasonable and not unfavorable to the state • Review for required clauses, advertisements, control agency approvals and authorized signatures • The completed package is forwarded to the appropriate authorized OSC signatory for review and final approval 17

Amendment Review • Review the terms and conditions of the amendment • Verify that the transaction is in compliance with the original contract’s terms and conditions • Verify agency signatures, control agency approvals and AC 340 • The completed package is forwarded to the appropriate authorized OSC signatory for review and final approval 18

Contract Inventory Tracking • During the audit process, our database is updated periodically to indicate the current status of the transaction. 19

Approved Transaction • Once the transaction has been signed (approved), it is forwarded to the Contract Control Unit for the batch to be released on the CAS. • After release, the paperwork is sorted into what OSC keeps as a record and what is to be returned to the appropriate agency. 20

End of Tale……. . Happy Customer!! Unless…. 21

DELAYS IN THE PROCESS 22

Common Problems • Incomplete Procurement Record – If limited competition was received (less than 3 bids), we need to see your answers to the following questions in the procurement record: • Why do you think you received only 1 or 2 bids? • Could your specifications have been restrictive or ambiguous? • Did you canvass the vendors that didn’t bid to see why they did not bid? What did you find out? • In light of the limited competition, defend the reasonableness of the price. – The procurement record must be complete so that our staff can see that the award was in compliance with all applicable laws relating to: • Contract Reporter Advertisements, Newspaper Advertisements if applicable, Procurement Stewardship Act, Mac. Bride law and 23 others.

Common Problems • Incomplete Procurement Record (Cont’d) – The procurement record must be complete so that our staff can walk through the selection process you followed in order to see that the selection and award was in compliance with the solicitation document (RFP/IFB) and to see that a reasonable and fair procurement was done. – – – – Certified Bid Tabulation RFP or IFB Evaluation Instrument Matrix of Scores Winning Bid Proposal Questions and Answers No-bid Letters 24

Common Problems • The AC 340 is set up with an incorrect contract amount OR the agency did not encumber money for the fiscal year’s obligation • The contract has not been approved by the Attorney General’s office. • An incorrect batch type is used delaying delivery to the correct team 25

IFB Team Responsibilities • Contracts let by an Invitation for Bid, except for “Quick” contracts – Construction – Commodities – Services – Revenue Contracts • Single/Sole Source Commodities 26

RFP Team Responsibilities • Contracts let by a Request for Proposals – Technology – Services – Revenue Contracts • Single/Sole Source Services 27

GQC Team- Everything Else! • Grants • “Quick” Contracts • Architect, Engineering & Surveying Contracts • Negotiated Agreements • Leases • Land Transactions • Repayment Agreements • Intergovernmental Agreements 28

Single and Sole Source • Procuring services or commodities by the single or sole source method 29

Single Source • Defined: – A procurement in which although two or more offerers can supply the required commodities or services, the commissioner or state agency, upon written findings setting forth the material and substantial reasons therefor, may award the contract to one offerer over the other. 30

Sole Source • Defined: – A procurement in which only one offerer is capable of supplying the required commodities or services. 31

Single/Sole Source Requirements • Justification for single or sole source must be clearly outlined in the procurement record. – Need for the purchase – What alternatives were considered? – How vendor was selected – The basis upon which it is determined that the cost is reasonable 32

Single/Sole Source and the Contract Reporter • Contract Reporter exemption request must be approved before you send us a contract for approval. • Advertising the potential opportunity in the Contract Reporter and getting no responses bolsters your case for single or sole source as long as the advertisement was not written in a way that purposely discourages responses. 33

Questions? 34