Campus Let Contracts Regional Training Session Insert Date for State Operated Campuses Oct 20131SUNY Office for Capital Facilities

SUNY Office for Capital Facilities 1

Campus Let ContractsRegional Training Session

Insert Date for State Operated Campuses

Oct 2013


Objective

Increase knowledge and understanding of:

• Procurement Requirements

• Consultant Selection

• Financial Management of Capital Funds

Oct 2013


Office for Capital Facilities

•OCF Newsletter

•OCF Website

•Guidance Documents

•Listservs

Visit our Website

Oct 2013

• Campus Let Contracts Program

• Community College Capital Program

• Environmental Health and Safety

• Energy Management and Planning

• Residence Hall Capital Program

• Environment Health and Safety

• Office for Sustainability

http://www.suny.edu/capitalfacilities/

SUNY Office for Capital Facilities 4Oct 2013


Procurement Requirements and Thresholds

Oct 2013

for State Operated Campuses


Construction Authority and Funding

•New York State Education Law (§355 and §376) establishes the authority for design, construction and

rehabilitation of SUNY facilities on SUNY property

•Who has that authority?

Oct 2013


Construction Authority and Funding

•Who does NOT have the authority to procure design and construction work?

• Research Foundation

• Campus Foundation

• Auxiliary Service Corporation

• 3rd party occupants (Barnes & Noble, Starbucks, Sodexo, Marriott)

• Campus-affiliated corporations

Oct 2013

Learn more, see

Guidance Document CLC-3


Procurement Requirements

Oct 2013


Procurement Requirements

Oct 2013

Polices and Procedures• 7553 – Purchasing• 7552 – Procurement

Lobbying• 7554 – Consultants • 7555 – Construction• 7556 and 7557 – MWBE

See Handout #1


Campus Let Design ProjectIdentify

Estimates, Budget, Funding

Source

B-1184, MWBE 9 Point Memo

Develop RFQ Advertise (NYSCR)

Consultant Selection

Consultant Forms, including:

Procurement Lobbying, Vendor

Responsibility Insurance, Consultant Reporting

Campus Certification Contract Award

Oct 2013


Campus Let Construction ProjectIdentify Estimates,

Budget, Funding Source

B-1184, Wicks Waiver, MWBE 9

Point Memo

Develop Bid Documents

Advertise (NYSCR)

Public Bid Opening

Consultant Forms, including:

Procurement Lobbying, Vendor

Responsibility Insurance,

Construction Bonds

Campus Certification Contract Award

Oct 2013


Most Qualified Selection (Consultant)

•Contracts are negotiated with the most qualified consultant

•Applicability: >$25,000•SUNY Procedure #7555

Oct 2013

NYS Finance Law §136-A


Competitive Bid (Construction)

•Awards made by public letting to the lowest qualified bidder

•Applicability: >$20,000•SUNY Procedure #7554

Oct 2013

NYS Education Law §376


Campus Let vs. Campus Funded

Oct 2013

Campus Let

(Campus Administered)

• Capital Appropriation, including 384

• Project Initiation: Campus Administered Procedures apply

• Eligible for Wick’s Waiver

• Advertisement in Albany paper and a paper of general circulation

Campus Funded

• Operating Appropriation and other campus funding

• Project Initiation: Campus process applies

• Subject to Wick’s• Advertisement in a

paper of general circulation


• Division of Budget’s authorization to spend capital funds

• Done online through the Agency Spending Controls Application (ASCA)

•Does NOT apply to professional staff and site reps

•Applicability: Capital projects >$20,000

Oct 2013

Division of Budget Bulletin 1184

B-1184


Wicks Law (Construction)

Oct 2013

Contracts over the threshold require separate specifications and bids for;• General Contracting• Mechanical: steam heating, hot water heating,

ventilating and air conditioning apparatus• Electrical: electric wiring and standard

illuminating fixtures• Plumbing: plumbing and gas fitting



Oct 2013

Wick’s Applicability thresholds by county• >$3M in Bronx, Kings, NY, Queens, and

Richmond• >$1.5M in Nassau, Suffolk, and Westchester• >$0.5M in all other counties within the state



Oct 2013

Campus Let

(Campus Administered)

•Campuses may apply for a Wick’s Waiver with the Fund

•Construction must be funded entirely with capital appropriations made to the Fund (includes 384)

Campus Funded

•Construction Contracts funded by operating or other funds are not eligible for a Wick’s Waiver

•Contracts under the applicable thresholds must have bidders submit with their bid a separate sealed list that names each subcontractor.


Prevailing Wage Rates (Construction)

• Applicability: All contracts and purchase orders

• Provide a copy to the prime contractor and incorporate it into the contract

• Primes provides schedules to subcontractors

• Prime provides copies of certified payroll to SUNY

• Request a wage schedule from the Department of Labor website

Oct 2013

NYS Labor Law, Article 8 & 9

http://www.labor.state.ny.us/workerprotection/publicwork/PWReqforOWS.shtm



Minority and Women Owned Business Program

• The MWBE requirements for construction are currently being updated. Look for them in December.

• Training will be provided by the MWBE Program Office.

• For more information contact Pamela Swanigan at 518-320-1628 or [email protected]

Oct 2013

mailto:[email protected]



New York State Contract Reporter

•Advertisement for at least 15 business days prior tothe bid due date

•Individual ad for contracts in excess of $50,000

•Quarterly ad for anticipated contracts >$10,000 but <$50,000

•NYSCR Website

Oct 2013

NYS Economic Development Law (§142)

http://www.nyscr.org/Public/Index.aspx


Emergency Procurements and Exemption from Advertising

•Declaration of the emergency and waiver of competitive bidding, signed by a senior campus officer

•Establish reasonableness of price by obtaining a minimum of three verbal or written quotes

•Notify your Fund Program Manager or SUNY OCF

•A waiver for publication in the NYSCR is required from OSC prior to contract award

Oct 2013


Newspaper Advertisement (Construction)

•Campus Let contracts require a one day ad in an Albany paper and in a local paper of general circulation

•Campus Funded contracts require an ad in a local paper of general circulation

•Contact a reasonable number of local contractors, a minimum of 5, if feasible

• Applicability: >$50,000

Albany Paper = Times UnionOct 2013

NYS Education Law (§376) and Public Building Law (§8)


Procurement Lobbying Act

•Limits communications during the Restricted Period – from Contract Reporter Ad to Contract Execution

•All inquires must be directed to the Designated Contact

•Requires vendor affirmation, certification and disclosure of compliance

•Applicability: >$15,000

•SUNY Procedure #7552

Oct 2013

NYS State Finance Law § 139-j


Procurement Lobbying Act

“Contact” means an oral, written or electronic communication to SUNY related to the procurement by or on behalf of the Offerer during the Restricted Period that could be inferred as intending to influence the procurement

"Restricted period" means from the earliest written notice, advertisement or solicitation of a request for proposal, invitation for bids, or solicitation of proposals, or any other method for soliciting a response from offerers intending to result in a procurement contract

Oct 2013

For more, read Procedure 7552

https://www.suny.edu/sunypp/documents.cfm?doc_id=430


Vendor Responsibility

•For all contracts vendors and contractors must be deemed responsible

•Contracts >$100,000 require

• Vendor Responsibility Questionnaire using VendRep

• Agency certification of Vendor Responsibility

Oct 2013

NYS State Finance Law §163

•OSC Guide to Financial Operations

, Section XI.16 Vendor Responsibility

http://www.osc.state.ny.us/vendrep/info_vresp_agency.htm

http://www.osc.state.ny.us/vendrep/info_vresp_agency.htm

https://www.osc.state.ny.us/agencies/guide/MyWebHelp/



Certificate of Insurance

•Required for ALL contracts and purchase orders

•At a minimum, insurance limits must equivalent to the limits in the construction and consultant

agreements

Oct 2013

• General Liability

• Auto

• Workers Comp and Disability

• Owners and Contractors Protective Liability (const)

• Builders Risk (const)

• Professional Liability (design)


Learn more, seeGuidance Document CLC-1

NYS State Finance Law § 139-f

Bonds Construction Bonds

•Applicability: >$50,000

•Performance Bonds

• May be waived when only one (1) payment is made to the contractor upon successful completion of the work

•Labor & Material Bonds cannot be waived

•Multiple contracts for project - the entire project value

must be fully bonded


Consultant Reporting

•Annual reporting of all consultant contracts and purchase orders

• OSC Form A• OSC Form B

•OSC Guide to Financial Operations, Section XI.18.C Consultant Disclosure Legislation

Oct 2013NYS State Finance Law § 8 and § 163



Campus Procurement Certification

•SUNY procedures require a Campus Procurement Certification for all contracts (not purchase orders) •>$250,000 – signed by a Campus Vice President and uploaded to the “SUNY Procurement Officers” space in Confluence

Oct 2013


Consultant Selection

Procedure 7554 Construction Related Consultant

Procedure

Oct 2013


Consultant Agreements >$25,000

State Finance Law §136-a

It is the policy of New York state to negotiate contracts for architectural and/or engineering services and/or surveying services on the basis of demonstrated competence and qualification for the type of professional services required and at fair and reasonable fees.

Oct 2013



Pre Solicitation

Identify the funding source:

Capital dollars, including 384• Campus Let Contracts

Campus dollars• Campus Funded Contracts

Oct 2013


Pre Solicitation

If capital, follow the Campus Administered Procedures

• Capital Project Request Form (Attachment D)• Division of Budget B-1184 approval• Project Funding Request (Attachment F)• MWBE Goals – 9 Point Memo

See Handouts

#2, #3, #11

Oct 2013

Project Funding Requests must be approved by the Fund prior to placing an advertisement


Request for Qualification

sLink to form

Oct 2013

https://www.suny.edu/sunypp/lookup.cfm?lookup_id=485


Selection Committee

•A minimum of three members are required•If interviews are held, all voting committee members must attend all interviews •At a minimum the committee chair must have

completed the Consultant Selection Training

Oct 2013


Conflict of Interest

A conflict of interest occurs when the Committee member or an immediate family member (spouse/domestic partner, parent, sibling or child) has a financial interest in or has been employed by any of the firms under consideration within the previous five years.

Contact your campus ethics officer or counselOct 2013


Short List

•Brief review of all Submittals of Qualifications•Each committee member individually completes a Short List Rating Form (7555-03)•Short List Ratings are complied in the Short

List Summary Form (7555-04)

Oct 2013

See Handouts

#5 and #6


Short List

•At a minimum the five firms with the highest ratings are to continue in the selection

process. In the event that the fifth and sixth firms’ ratings are tied both firms are to continue in the selection process.•Ratings may be reconsidered if pool of firms

is too large or too small

Oct 2013



Evaluating Firms

•Detailed review of Submittal of Qualifications

•Site visits and Interviews, as applicable

•Contact References (Form 7555-07)

•Committee members individually complete the Consultant Selection Rating Form (7555-06)

Oct 2013

Score in ink. Do not write comments on the score sheets.

See Handouts

#7 and #8


Evaluating Firms

•Consultant Selection Rating Form (7555-06)

• Firm Qualifications and Experience (20 Pts.)

• Personnel Qualifications and Experience (20 Pts.)

• Previous Experience with Work Specific to Project Scope (20 Pts.)

• Approach & Capability (20 Pts.)

• MWBE Utilization (10 Pts.)

• References (10 Pts.)

Oct 2013

See Handout #8


Evaluating Firms

Oct 2013

RatingTotal of 20

PointsTotal of 10

Points Excellent 17 to 20 8 to 10 Good 11 to 16 5 to 7 Fair 5 to 10 3 to 4 Poor 0 to 4 0 to 2


Make Selection

•Compile the Selection Committee members individual scores

•The highest ranking consultant is determined by calculating the average of all Selection Committee member’s scores

•Forward a Letter of Intent (Form 7555-08) to the most qualified consultant

Oct 2013

Forms available online

See Handout #9



Negotiate a Fair and Reasonable Fee

•Request and evaluate the cost proposal• Hours• Rates• Multipliers

No cost proposals are to be submitted with the qualifications. Cost proposals are to be requested after a consultant selection is made.

Oct 2013


Consultant Procureme

nt ChecklistLink to form

Oct 2013

Ensure all required documentation is submitted

https://www.suny.edu/sunypp/lookup.cfm?lookup_id=720


Consultant Agreements <$25,000


Campus Documentation

• DOB B-1184 Approval (applies >$20,000)• Purchase Order or Agreement

• Exhibit A• Exhibit A-1 (applies >$25,000)• Project scope and requirements

• If processed as a Contract - Campus Procurement Certification (Form XV, Procedure 7553)

Oct 2013

Agreements <$25K


Consultant Documentation

• Procurement Lobbying Forms (applies >$15,000)

• Certificates of Insurance• Certificate of Workers Comp and Disability• OSC Form A - State Consultant Services

Contractor’s Planned Employment (applies >$15,000; applicable to salaries, does not include travel or reimburseables)

Oct 2013

Agreements <$25K


Term and Backdrop

Agreements

Oct 2013


Term Agreements

*New* Agreement Template available onlineOct 2013

A pre-awarded agreement for the preparation of a study or for design services and/or contract administration of small projects with similar scopes of work.



Backdrop Agreements

For small projects with diverse scopes of work.

Backdrop term agreements involve the selection of three to six firms to serve as a “backdrop” of consultants and a mini-selection process is used to determine the most qualified consultant for each project.

Oct 2013


Term Agreement Process

•Provide a project notification & summary to the consultant

• Term Project Initiation (Form 7555-13)•Negotiate a fair and reasonable fee•Verify funding source •Provide Authorization to Proceed (7555-14)

Term Agreements do not require a selection process to assign a project

Oct 2013


Backdrop Agreements Process

•Provide a project notification & summary to all consultants on the backdrop term agreement.

•Give consultants the opportunity to update qualifications

•Evaluate and select the most qualified consultant

•Document justification for selection in using the Backdrop Term Contract Mini Selection Form 7555-07

•Negotiate a fair and reasonable fee

•Provide Authorization to Proceed - 7555-14

Mini selections are done as a ‘desktop analysis’

Oct 2013


Term Contract Limits

Tier 1 Tier 2Tier 3

Contract Limit $225,000 $700,000$3,500,000(Consultant Cost)

Contract Est. $1,500,000 $5,000,000$17,500,000Construction Value

Project Limit $75,000 $200,000 $500,000(Consultant Cost)

Project Est. $525,000 $1,300,000 $3,500,000

Construction Value

Oct 2013



Financial Management of Capital Funds

Oct 2013


SUNY Capital Program

# ofBldgs

Sq. Foot(1)

AvgAge(2) Funded By

Projects Managed By

EducationalFacilities

1,844 58.5 45.4 State Fund/Campus

Hospitals 19 3.3 28.2Hospital

RevenuesFund/Campus

ResidenceHalls

485 20.5 34.8 Room RentsDASNY/Campus

CommunityColleges

503 18.9 41.350% State50% Local

Local

Totals 2,851 101.2 41.9

Notes: (1) Square footage and funding expressed in millions. (2) Average age (in years) represents straight average with no consideration given to the size of buildings or

subsequent renovations.


The State’s Fiscal Year is

April 1st through

March 31st

The State, SUNY, and the Fund are

currently preparing for

the next Fiscal Year 2014-15

SUNY Budget Preparation

& Board Approval

Budget DivisionReview

Governor'sDecisions

LegislativeAction

BudgetImplementation

Janu

ary -

Mar

chJune –

September/October

September/October-

December

Novem

ber -

Janu

ary

Budget Cycle

Oct 2013


Types of Appropriation

Oct 2013

92.66%

6.24%1.08%

0.02% FY12-13 Capital Disbursements:

Advanced (bonded)

384 (grants, foundation sponsors, campus contributions (IFR, auxiliaries))

Other (UDC funding)

Hard Dollar (pay as you go)


Management of Capital Funds

Oct 2013

• Bond proceeds must be used only for capital costs

• Useful life of Project

• Tax exempt vs. taxable bonds

• Annual Private Use Survey


Operating vs. Capital Expense

Operations and Maintenance

• Budgeted staff payroll

• Utilities

• Office supplies and janitorial supplies to support regular operations

• Disposal of hazardous waste from academic or research activities

Capital

• Architecture and Engineering Studies

• Design

• Construction

• Construction Material

• Equipment - Group III

Oct 2013


Operations and Maintenance expense, unless done as part of a new construction or major renovation project

• Landscaping

• Painting

• Carpet

• Furniture

• Moving expenses

• Resealing, resurfacing or relining parking areas

Oct 2013

Operating vs. Capital Expense


Approval To Use Appropriated Funds

Sept 2013

•B-1184 approval is provided for a specific project•Certificate of Approval (now called budget journal in SFS) is provided for a specific purpose or project

Division of Budget

•Allocation/Segregation is issued by OSC for a specific purpose or project

Office of State Comptroller

•Capital Project Requests and Project Funding Requests are approved and coding is issued for a specific project

The Fund


Managing Disbursements

Oct 2013

Take away


2007-08 2008-09

2009-10 2010-11

2011-12 2012-13

2013-14 (Projected)

2014-15 (Projected)

2015-16 2016-17

2017-18

$0

$200

$400

$600

$800

$1,000

$505 $504

$729 $775$905

$1,080$968

$887

$600 $606

$718

$943 $912 $946$968

$887 $893

$776

$393

Annual Disbursements Fiscal Plan Target

Manage To:

Limitations Imposed by Disbursement Targets:

($ in millions)

Ed Facilities & Hospital Capital Program Bonded

Disbursements

Oct 2013



Charging Staff to Capital Appropriations

•Professional staff and site representatives Fully dedicated to supporting capital program No day to day or routine responsibilities on campus One staff member or site representative per project

•Only payroll charges can be charged to the account

•Charge the capital account directly, or

•Charge one of the IFR accounts, and process journal vouchers monthly

Oct 2013

SUNY Procedure 7302

http://www.suny.edu/sunypp/documents.cfm?doc_id=466


•Critical Maintenance projects between $5,000 and $150,000•Project completion in less than 12 months

•Discrete scope Limited to a specific building or group

of buildings Limited to discrete components of the

building(s) Addresses specific aspects of the campus

site or infrastructure

•Project has useful life of 10 years or more

Oct 2013

Critical Maintenance:

projects to preserve facilities in good

working condition, suitable for their

current utilization, and compliant with

all applicable codes, rules,

regulations, and standards.

Minor Critical Maintenance


Capitalization - SUNY

•All land acquisitions

•All buildings acquisitions

•Building renovations and improvements projects costing more than $100,000

•Land improvements and infrastructure projects costing more than $100,000, and,

•Equipment costing more than $5,000 with a useful life beyond a single reporting period (generally one year).

Oct 2013

Renovations are an asset. In accounting, capitalization is when we

spread the cost of an asset across the life of that asset. SUNY Procedure 7004

http://www.suny.edu/sunypp/documents.cfm?doc_id=559


Capitalization - SUNY

Complete the SUNY Capitalization Form when:

• The project has reached substantial competition

• The asset is placed in service (beneficially occupied)

• The project costs are known and/or can be reasonably estimated

Submission of this form will NOT close out financial accounts. Outstanding payments can still be processed for the project.

Oct 2013

Closeout Capitalization


Closeout – The Fund

•At substantial completion update the beneficial occupancy milestone (800) via the Fund’s web portal

•When all payments have been processed and paid Reduce any outstanding encumbrances on the project

to zero Submit the Account Closeout form (Attachment G) to

the Fund Upon receipt of the Account Closeout form, the Fund

will close out the associated accounts and return any unexpended balances to the campus’ balance account.

Oct 2013

Closeout Capitalization


Equipment Guidance

Oct 2013

Coming Soon!


Take away


Contact Information:

Jessica R. Miller

518-320-1129

[email protected]

Office for Capital Facilities Website

Oct 2013

mailto:[email protected]

http://www.suny.edu/capitalfacilities/contracts.cfm
