- 1. Getting StartedPlanning and ProcurementI.Introductiona.
Contract Ownerb. Contract ManagerII. FISCPUB and the Quick Guide to
Services ContractingIII.Senate File 2410IV. Informal Competitive
ProcessV.Formal Competitive Processa. Issuing Officerb. The RFPc.
Bid BondVI. Processesa. TSB postingb. eservices postingc.
Evaluation CommitteeVII. Exceptionsa. Intergovernmental Contractsb.
Sole Sourcec. Emergency ProcurementsVIII. Contract File Contents
and Quality Assurancea. Contract Fileb. Quality Assurance Bureau of
Purchased ServicesJon Wetlaufer515-242-5970Eloise Gardner
515-281-7556P. C. Keen 515-281-7795Fax 515-281-6237 October 23,
20061
2. You have a job that needs to be done. You are considering
your options and contracting seems to be the appropriate method to
accomplish what needs to be done. So what to do now?As you get
started you will need a few items. The most important items will be
about your procurement process. Keep all notes, documentation, and
information about why you are using a services contract in your
contract file. The contract owner is usually a Service Area Manager
(SAM),Institution Superintendent, or Division Administrator.
Thecontract owner has overall corporate responsibility
andaccountability to ensure the procurement aligns with
thedepartment's strategic plan. The contract owner has the
authorityto sign payment authorizations and other key and
bindingdocuments. The contract owner has the authority to delegate
thetechnical and day-to-day operational management of the
contractto one or more subordinate staff. The contract owner
retainsresponsibility for providing direction, support and guidance
tothose engaged in management of the procurement, and forproviding
leadership in the resolution of any disputes withcontractors.
Although the Director may sign a contract and otherdocuments, the
actual ownership rests with the SAM,Superintendent, or Division
Administrator. In the case of formalcompetition, the contract owner
may act as Issuing Officer for theprocurement or may delegate this
role to subordinate personnel orto a Decat Coordinator. Contract
ownership cannot be delegated.Contract managers are accountable to
the contract owner, the SAM, Superintendent, or Division
Administrator, acting under direction and receiving guidance and
support from the contract owner.There may be one or more contract
managers. Contract manager duties include, but are not limited to
the duties and responsibilities delegated by the contract owner
which are required for the day-to-day operational maintenance of
the procurement process associated with contracting for services.
These duties may include: o predetermination of need for the
procuremento requests for exceptions to competitive selection,
e.g., sole sourceor emergency procurements (the contract owner must
initiatesuch requests)o acting as the issuing officero preparation
and distribution of solicitation or contractingdocuments October
23, 20062 3. o selection of, and negotiation with, vendorso
implementation of both informal and formal competitiveselection
processeso review and approval of contractor invoices (contract
ownersigns)o monitoring and review of contractor performance
andcomplianceo dispute resolution (in consultation with the
contract owner)o maintenance of contract fileso and other
activities or duties designated by the contract owner. The FISCPUB
share at Hoovr3s2 is one of the most useful tools available for
contracting staff. The share contains everything from the RFP shell
to individual contracting documents to recommended forms. The Quick
Guide to Services Contracting is also in the share. October 23,
2006 3 4. The Quick Guide to Services Contracting is a hands-on,
practical manual for the contracting process. The Guide contains
numerous hyperlinks to all the forms, websites and agencies needed
to complete the contracting process. Throughout this training
packet, phrases or titles in italics and/or different text colors
indicate a form or hyperlink address that is accessible through the
Quick Guide to Services Contracting or at Hoovr3s2/FISCPUB. October
23, 2006 4 5. Senate File 2410 provides for increased agency
oversight for certain contracts. Changes were made to provide for
new Iowa Code Chapter 8F and amendments were made to Iowa Code
28E.6 and 8E.208. The legislation provides for additional contract
reporting and accountability requirements. The changes apply to all
service contracts with a value of $500,000 or more and to all
contracts in which a given contractor has two or more services
contracts with an aggregate value of $500,000, unless the
contract(s) fall under one of the listed exceptions.Certain
categories of contracts are excluded from the compliance
requirements including the following categories of services
contracts: Transportation-related contracts; public utilities;
retirement system; Title XVIII, XIX, or XXI of the federal Social
Security Act; Court appointed attorneys; A federally insured
financial institution subject to mandatory reporting; Vendor
services1 defined as services or goods provided by a vendor that
are required for the conduct of a state or federal program for an
organization's own use or for the use of beneficiaries of the state
or federal program and which are ancillary to the operation of the
state or federal program under a service contract and not otherwise
subject to compliance requirements of the state or federal program;
and Contracts with entities licensed by the state and regulated by
the Insurance Division of the Department of Commerce.Pre-contract
certifications must be submitted with a bid proposal. Information
that should be included with the proposal: Supporting documentation
of the entitys legal status to ensurethat it is recognized as
active by Secretary of State Supporting documentation if the entity
is a 501(c) under the IRS(non-profit). Information on the training
and education given governing boardmembers regarding their
responsibilities as a member of the board. Information regarding
the procedures used by the governing bodyof the contractor
regarding: Review of performance and compensation of management
Review of the entitys internal controls concerning
accountingprocesses and procedures 1The vendor services exemption
is very limited and verification that the exemption applies must be
obtained prior to using exclusion. October 23, 20065 6. Review of
the entitys compliance with the laws, rules, regulations, and
contractual agreements applicable to its operations Information
concerning the adopted ethical and professional standards of
operation from the governing body and employees (specifically
nepotism). Information about the policies adopted by the
contractorprohibiting adverse employment actions from being taken
againstemployees who report violations of the law. (whistle-blower)
Certification from contractor that the entity is in full
compliancewith this and other laws. October 23, 20066 7. To begin
the process, determine the value of your contract, including all
contract extensions. Once you have determined the value of the
contract, use the chart below to determine the appropriate
procurement process you will use. DurationTotal
ValueProcess(Include all extensions) One-yearLess than $1,000 No
contract requiredOne-yearLess than $5,000 Informal One-year$5,000
to less than $50,000Informal or Formal One-year$50,000 or
moreFormal Multi-yearLess than $15,000Informal Multi-year$15,000 to
less than Informal or Formal$150,000 Multi-year$150,000 or more
FormalInformal Competitive ProcessInformal competition refers to
the three (3) -bid processes and is used for one-year contracts
with a value of less then $5,000 and multi-year contracts with a
value of less than $15,000. The 3-bid process may also be used for
one-year contracts with a value between $5,000 and $49,999 and
multi-year contracts with a value between $15,000 and $149,999. The
value of a given contract includes the base term and all renewal
periods.Complete the following steps to implement the informal
competitive process:1. Complete a Pre-Determination for Contracting
Documentation Sheet (Attachment #1). 2. Develop your Scope of Work.
The Scope of Work should detail the services to be purchased.3.
Prepare a solicitation document using the DHS Informal Competitive
Solicitation template (Attachment #2).October 23, 20067 8. 4.
Locate the names and addresses of at least three firms or
individuals that would be qualified to provide the service.5. Post
the notice of solicitation to the TSB website 48 hours before
issuing the informal solicitation to the identified vendors. If any
TSB firm requests an opportunity to submit a proposal, add the firm
to the list of identified potential service providers. TSB
instructions are Attachments #9, 10A and 10B.6. Issue the Informal
Competitive Solicitation (Attachment #2) to the potential service
providers. The informal competitive process is intended to be a
shorter process, remember to provide enough time for responding
firms to submit a complete response to your solicitation.7.
Document the date and time (written) responses are received.8.
Disqualify proposals that do not meet the mandatory requirements of
the Informal Competitive Solicitation (Attachment #2) request. Send
a letter disqualifying the bid to the bidder (Attachment #19).9.
Evaluate the proposals and determine which service provider's
proposal most closely meets the requirements of the solicitation.
Use the Informal Bid Selection Documentation (Attachment #3) form
to document your scoring. 10. Issue a Notice of Intent to Enter
into Contract Negotiations(Attachment #4) to all vendors who
submitted a bid.11.Enter into contract negotiations with the top
finalist. Prepare the contract document and acquire signatures of
all parties.12. Complete the Contract File Checklist (Attachment
#5) to assure all necessary documents are included in the contract
file. Formal Competitive ProcessUse the formal competitive process,
a Request for Proposal or RFP (Attachment #8), to select a service
provider for one-year contracts valued at $50,000 or more, and
multi-year contracts valued at $150,000 or more unless you have an
exception. The formal competitive process may also be used for
one-year contracts with a value between $5,000 and $49,999 and
multi-year contracts with a value between $15,000 and $149,999. The
value of a given contract includes the base term and all renewal
periods. October 23, 2006 8 9. Issuing Officer Each RFP should have
an Issuing Officer. The Issuing Officers duties include:1.
Completing a Pre-Determination for Contracting Document (Attachment
#1) for the contract file.2. Writing the RFP.3. Issuing the RFP,
posting to the appropriate websites, providing any resource
documents or rooms, leading and coordinating the bidders
conference, if one is held, and receiving and reviewing all
correspondence and proposals.4. Acting as the sole point of contact
for communication with all vendors. 5. Establishing the Evaluation
Committee.6. Preparing instructions to the Evaluation Committee
regarding meeting dates, evaluation procedure, responsibilities,
and appropriate conduct during evaluation.7. Packaging copies of
proposals, evaluation directions, and blank score sheets for the
Evaluation Committee members.8. Reviewing incoming proposals to
determine if they comply with the mandatory requirements. Use the
RFP Mandatory Requirements Checklist (Attachment #6) to assist in
the evaluation or create your own form.9. Disqualifying proposals
that do not meet the mandatory requirements of the RFP. Send a
letter disqualifying the bid to the bidder (Attachment
#19).10.Facilitating the evaluation process or coordinating a
facilitator to do these duties and oversee the
Committee.11.Documenting the scores of the Committee.12.Finalizing
a recommendation with the Committee to award a contract and
preparing a summary for recommendations regarding the final
decision to award.13. Preparing and issuing the Notice of Intent to
Enter into ContractNegotiations (Attachment #4).14.Assisting or
leading contract negotiations and completing the contract with the
awarded bidder.15.Responding to any requests for copies of the RFP
and/or Bidder proposals.Note: Anyone can request copies of
proposals and the RFP regardless of whetherthey submitted a bid.
Bidders who requested part of their proposal be keptconfidential
should have provided a copy with the confidential material excised.
October 23, 20069 10. You can provide the non-confidential
information immediately to any requester.If anyone requests to see
the entire bid, which would include the confidentialmaterial
identified by the bidder, notify the bidder that submitted the
proposalthat a request has been made to see the entire proposal,
and that the bidder willhave a certain period of time (as stated in
the RFP) in which to seek aninjunction to prevent release of the
confidential information, otherwise, releaseall the confidential
information by the deadline date. Check the RFP section
onconfidential information regarding the time period for the
bidders response.Consult with the Bureau of Purchased Services if
the bidder requests additionaltime to obtain an
injunction.16.Maintaining the required documents for the contract
file to be given to the contract manager/program manager upon
execution of the contract.17.Acting as the DHS contact
person18.Representing DHS if an appeal is filed. Gather and submit
all appeal documents requested by the Appeals Section.The RFP RFPs
may take considerable time to plan, execute, and award. Before
writing the RFP, determine the timeline for the RFP. Use the RFP-
Contract Timeline Requirements (Attachment #7) form. The form lists
the steps in the RFP process and recommends minimum timeframes for
each task. Use the DHS RFP Template (Attachment #8) for all RFPs to
ensure that all essential clauses pertinent to DHS are included.
The RFP shell includes: RFP Introduction: Section 1 provides for:
The purpose for the RFP, which may include any legal
referencesassociated with the intended program or service,
information aboutthe award date, and the expected duration of the
contract; Background information for the RFP, which may include
asummary of the present environment and how or what you arewanting
to change; and All pertinent definitions that may assist vendors in
understandingand responding to the RFP, especially
acronyms.Administrative Information Section 2 identifies key
information about the logistics of submitting a proposal. The
issuing officer, communications restrictions, instructions for
downloading the RFP, etc.October 23, 200610 11. Service
Requirements/Scope of Work Section 3 provides the Scope of Work
description. One of the biggest steps in the RFP process is
gathering the necessary information, specifics, and data to write a
clear and detailed Scope of Work. The Scope of Work defines what
the state wants to purchase. Focus is placed on the outcomes or
what is to be accomplished, not how the vendor should accomplish
it. A good scope of work should:Be clear, concise, using commonly
used and easily understood terms and language;Include requirements
that allow the contractor the latitude to work in a manner best
suited for innovation and creativity. Generally, it should not
include detailed procedures that dictate how the work is to be
accomplished;Use outcome-based scope of work statements, the
contractor will provide/produce (activity, service or product) to
or for (customer, client, or stakeholder) so they can or in order
to (intended benefit or outcome).Think in terms of:1. The What:
(activity, service or product)2. For Whom: (customer, client,
stakeholder)3. The Why: (intended benefit or outcome)Include
performance work statements, or outcome-based scope of work
statements. These items provide a means to measure the contractors
performance and answer the question, did the state get the services
specified under the contract. Format and Content of Bid Proposals
Section 4 clarifies the format and content to be included in a bid
proposal. The format is designed to facilitate the submission of a
bid proposal that is easy to understand and evaluate. Evaluation of
Bid Proposals Section 5 details the evaluation process that will be
used to determine which bid proposal provides the greatest benefits
to the department.The evaluation section should clarify that the
department will not necessarily award a contract to the bidder
offering the lowest cost to the department but to the compliant
vendor that offers the state the bestOctober 23, 200611 12. value.
The goal of the evaluation process is to achieve the best value,
integrating quality and price, when selecting a contractor.Bid Bond
When drafting your RFP consider whether you will require a bid
bond. The bid bond should be a certified or cashiers check, or an
irrevocable letter of credit in favor or made payable to the
department which guarantees the availability of the services. The
bond must be issued by a surety licensed to do business in Iowa in
a form acceptable to the department. The bid proposal security is
forfeit if the chosen bidder withdraws its bid proposal after the
Notice of Intent to Award is issued, does not honor the terms
offered in its bid proposal, or does not negotiate contract terms
in good faith. The security is returned to the bidders when the bid
proposals expire, are rejected, or the department enters into a
contract with the successful bidder, whichever is earliest.Industry
standards set bid bonds between 5% and 20% of the value of the
contract.ProcessesTSB The Iowa Targeted Small Business Act directs
all departments to establish a procurement goal of procuring at
least ten percent of goods and services from certified Targeted
Small Businesss or TSBs. TSB postings are required for both the
informal and formal competitive bid process. To assure that
targeted small businesses are given an opportunity to participate,
post the procurement to the TSB web page for 48 hours before it is
released to the general public. To post to the TSB website: 1. Go
to the Directions for Posting to the TSB website (Attachment
#9)document. Read carefully to locate the current password for the
TSBwebsite. The password is changed monthly, so you will need to
makesure you have the current password. 2. Access the TSB website
athttp://iowalifechanging.com/business/tsb/tsbsearch.asp
(Attachment #10). 3. Follow the directions to enter the procurement
information. 4. The procurement reference number is the
RFP/contract number. 5. The description section is limited to 1,000
characters to describe theprocurement opportunity. 6. The agency
issuing the procurement is Human Services, use your 3-digit agency
code. October 23, 2006 12 13. 7. Select where the services will be
done. Choose either a specific countyor ALL for statewide. 8.
Provide the name and email of the Issuing Officer. 9. Provide the
State of Iowas Vendor and Bid Opportunities (Attachment#11) web
page (the eservices procurement webpage where theopportunity will
posted). 10. Print a copy of the posting for the contract file
fromhttp://iowalifechanging.com/business/tsb/tsbsearch.aspEservices
ALL formal competitive bid opportunities (RFPs) MUST be posted to
the State of Iowas Vendor and Bid Opportunities web page. Formal
competitive solicitations that are not posted to the State of Iowas
Vendor and Bid Opportunities web page ARE VOID AND MUST BE RE-BID.
The Vendor and Bid Opportunities web site allows for posting of new
RFP opportunities, revisions to existing RFP postings and deletion
of existing RFP postings. The system is online, if any errors occur
during the posting process, the system will inform the user that
changes are needed to proceed. The system has a three-year archive.
Attachments and links to other web sites can be used within the
system and the system keeps a log of changes made to each RFP. To
post an Eservices bid opportunity:1. Obtain a user ID and password
from Pam Dickey [email protected] . Provide your name, address,
telephonenumber, fax number, email and department in the request.
Pam willprovide you with a user ID and password. Do this the same
day youcomplete your TSB posting.2. Go to Vendor and Bid
Opportunities (Attachment #11) website whenthe TSB posting has
expired. Log on to the system. Change yourpassword. 3. Create your
RFP, revise an existing RFP or delete an existing RPF asneeded.
View bids at the General Services
websitehttp://bidopportunities.iowa.gov .4. Use the Eservices RFP
Posting Application Manual.doc (Attachment#12) located in FISCPUB,
for assistance in posting, reviewing, orediting your RFP. 5.
Successfully submitted bids will produce a message on the
screenthat states, Youve successfully created a Bid. Please make a
copyof this screen and place the copy in the contract file. If
required fields October 23, 200613 14. are not completed, the
system will prompt the user with directions about additional
information needed to submit the bid.Evaluation Committee The
Evaluation Committee is generally made up of three to seven people.
Evaluation Committee members should complete the form Conflict of
InterestConfidentiality (Attachment #13) and adhere to the DHS
confidentiality requirements. Potential committee members may
include: A person familiar with the procurement process The
Contract Manager, or Program Manager, for which the
services/program are being procured A technical expert A
disinterested technical 3rd party A legal or finance representative
A representative who may possibly be impacted by the contractThe
Evaluation Committee shall: Not discuss the solicitation or
proposals with anyone Review and evaluate proposals individually
Discuss proposals as a whole with the Evaluation Committee Rank
proposals Participate in vendor demonstrations and/or a best and
final offer process Make an award recommendation ExceptionsThere
are exceptions to the competitive process. They include, but are
not limited to, intergovernmental contracts, sole source
procurements, and emergency procurements.Intergovernmental
Contracts The competitive selection process is not required for
contracts with another state agency, a political subdivision of the
state of Iowa (cities, counties, public school districts), the
federal government, another state government, or a political
subdivision of another state. October 23, 200614 15. Sole Source
and Emergency Procurements In limited circumstances there may be a
valid reason to enter into a contract without using a competitive
process to select the service provider. These exceptions are
referred to as sole source and emergency procurements. A folder in
FISCPUB is reserved for these processes and the necessary
paperwork. Sole Source Procurements The sole source procurement
option is to be used only in a narrow set of circumstances and
requires additional documentation and justification. Sole Source
contracts may be used when: one service provider is the only one
qualified or eligible to perform the service; or the services being
purchased involves work that is of such a specialized nature or
related to a specific geographic location that only a single source
could provide the service; or the service provider is to provide
peer review services for a professional licensing board, or the
services are for experts, advisors, counsel or consultants to
assist in any type of legal proceeding in the preparation of quasi
judicial or judicial proceedings; or the federal government or
other provider of funds for the services being purchased has
imposed clear and specific restrictions on theOctober 23, 200615
16. of the use of funds in a way that restricts the hiring to only
oneservice provider; or applicable law requires, provides for, or
permits the use of sole asource procurement.When considering a sole
source procurement, carefully consider whether there is adequate
justification for using sole source procurement. The Guidelines for
Sole Source Justification (Attachment #14) , the Directions for
Submission of Sole Source Request (Attachment #15) and the Sole
Source Justification form (Attachment #16) provide tools and
information needed to complete the sole source process. Please note
the vendors name as it will appear on the contract when completing
the form. Submit the sole source justification request
electronically to BPS and the request will be processed. If the
sole source is appropriate, the Director will sign the sole source
justification form, the executed form is returned. Work cannot
begin until the contract is signed. Emergency Procurements An
emergency procurement is an acquisition of a service or services
resulting from an emergent need. Emergency purchases should not be
used as a solution for hardships caused by neglect, poor planning,
or lack of organization by the agency.The Report of Emergency
Procurement (Attachment #17) document must be completed, using the
Directions for Emergency Procurement (Attachment #18). Call the BPS
prior to work beginning. Please note the vendors name as it will
appear on the contract when completing the form. Submit the report
of emergency procurement form, electronically, to BPS. If the
report indicates the emergency procurement is appropriate, the
Director will sign the report of emergency procurement and the
executed form is returned. Work can begin prior to the contract
being signed. Contract File Contents & Quality
AssuranceContract File Since the beginning of your procurement
project you have been acquiring lots of paper, using forms to
assist in the process. Once your contract is executed you should
have a contract file that contains: The Pre-Determination of
Contracting document Documentation of Sole Source or Emergency
Procurement A copy of the Informal Bid Selection Document or the
RFP Documentation of the TSB posting October 23, 2006 16 17.
Documentation of the eservices posting The chosen bid proposal and
documentation of the evaluationprocess.Quality Assurance Both the
Auditor of State and Bureau of Purchased Services (BPS) randomly
pick contract files to review.BPS conducts internal quality
assurance reviews each month. The purpose is to identify what was
done well and to learn where additional training may be needed.For
the procurement process the review is looking for: The reason the
contract was procured, statutory changes, staff shortages, etc. A
copy of the enabling legislation, notes and information regarding
any circumstances surrounding the need to contract. The procurement
method used, informal or formal. The selection method used, on what
basis was the contract awarded to this particular contractor. Proof
that procurement was properly posted on the TSB and eservices
website. Please note: For formal procurements if the eservices
posting was not done the contract is void and must be re-bid.
Questions??? October 23, 2006 17
