For State Operated Campuses An Introduction to Campus Let Contracts ALL TEXT SHOULD BE ARIAL FONT IN BOLD. DO NOT LEAVE THE DEFAULT CALIBRI. September

SUNY Office for Capital Facilities 1

For State Operated Campuses

An Introduction to Campus Let Contracts

September 2015


Objective

Increase knowledge and understanding of:

• Financial Management of Capital Funds

• Procurement Requirements

• Consultant Selection Overview

• Minority and Women Owned Business Requirements

September 2015


Office for Capital Facilities

Visit our Website

September 2015

• Campus Let Contracts Program

• Community College Capital Program

• Energy Management , EO88 and Sustainability

• Environmental Health and Safety

• Energy Procurement and Utility Regulatory Affairs

• Residence Hall Capital Program

•Guidance Documents

•Listservs

•Newsletter

•OCF Website

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

SUNY Office for Capital Facilities 4September 2015


Financial Management of Capital Funds

September 2015


SUNY Capital Program

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. Data as of Fall

2013

# ofBldgs

Sq. Foot(1)

AvgAge(2) Funded By

Projects Managed By

EducationalFacilities

1,859 58.6 46 State Fund/Campus

Hospitals 18 2.9 27Hospital

RevenuesFund/Campus

ResidenceHalls

487 21.1 36 Room RentsDASNY/Campus

CommunityColleges

523 19.3 4250% State50% Local

Local

Totals 2,887 101.9 43


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

September 2015


Capital Appropriations

September 2015


Types of Appropriation

September 2015

94%

5%

1% FY 2014/15 Disbursements

Advanced 384

Other

Advanced = Bonded = 30 year loan


Campus Let Projects

• Campus managed construction projects funded by SUCF appropriations.

• Campus Administered Procedures apply

Campus Funded Projects

• Campus managed construction projects funded by SUNY appropriations or other funds such including those from the Foundation, Research Foundation, Auxiliary Service Corporation, Alumni Association, Income Fund Reimbursable (IFR) accounts or Grants.

Campus Administered Projects See Handout #2


Management of Capital Funds

September 2015

• Bond proceeds must be used only for capital costs

• Useful life of Project

• Tax exempt vs. taxable bonds

• Annual Private Use Survey

See Handout #2


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 - Fixed

September 2015


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

September 2015

Operating vs. Capital Expense


Procurement Requirements and Thresholds

September 2015

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?

September 2015


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

September 2015

Learn more, see

Guidance Document CLC-3


Procurement Requirements

September 2015


Procurement Requirements

September 2015

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

September 2015


Campus Let Construction ProjectIdentify


B-1184, Wicks

Waiver, MWBE 9

Point Memo

Develop Bid Documents

Advertise (NYSCR)

Public Bid Opening

Consultant Forms, including:


Responsibility Insurance,

Construction Bonds


Contract Award

September 2015


Most Qualified Selection (Consultant)

•Contracts are negotiated with the most qualified consultant•Applicability: >$25,000•SUNY Procedure #7555

September 2015

NYS Finance Law §136-A


Competitive Bid (Construction)

•Awards made by public letting to the lowest qualified bidder

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

September 2015

NYS Education Law §376


• 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

September 2015

Division of Budget Bulletin 1184

B-1184


Wicks Law (Construction)

September 2015

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



September 2015

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



September 2015

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.


Campus Let vs. Campus Funded

September 2015

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


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

September 2015

NYS Labor Law, Article 8 & 9

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

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


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

September 2015

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

September 2015


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 UnionSeptember 2015

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

September 2015

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

September 2015

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

September 2015

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/

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

•Construction Forms: ACORD 25 and ACORD 855

•Design Forms: ACORD 25

September 2015

• General Liability

• Auto

• Workers Comp and Disability

• Owners and Contractors Protective Liability (const)

• Builders Risk (const)

• Professional Liability (design)

Do not collect yet - guidance coming

on 855 form


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


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

September 2015



Consultant Selection Overview

Procedure 7554 Construction Related Consultant

Procedure

September 2015


Campus Let Design Project


B-1184, MWBE Goal

Development

Project Funding Request (if Capital)

Develop RFQ , include MWBE

Goals

Advertise (NYSCR)

Consultant Selection

MWBE Participation

Analysis

Negotiations and Consultant Forms:


Responsibility Insurance,

Consultant Reporting


Contract Award

September 2015


State Finance Law §136-a

May 2015

Most Qualified 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.

Negotiate


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

September 2015

SUNY Office for Capital Facilities 43May 2015

Request for QualificationsSee Handout

#3


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)

September 2015

See Handout #4 & #5


Evaluating Firms

•Detailed review of Submittal of Qualifications

•Site visits and Interviews, as applicable

•Contact References (Form 7555-05)

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

September 2015

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

See Handout #6 & #7


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.)

September 2015

See Handout #7


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

•Negotiate a fair and reasonable fee

•Complete the Procurement Checklist (Form 7555-00)

September 2015

Forms available online

See Handout #8 & #9




Subcontractor goals apply to:

Construction Contracts >$100,000

Construction Related Services Contracts >$25,000

Commodities and Services Contracts >$25,000

Pamela Swanigan

U-Wide MWBE Program Director

518-320-1628 or [email protected]

Minority and Women Owned Business Program

MWBE

SUNY Procedure 7557 Executive Law 15-A

mailto:[email protected]


Jessica R. MillerCampus Let Contracts

[email protected]



Additional Slides

September 2015



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

September 2015

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

September 2015

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).

September 2015

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.

September 2015

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.

September 2015

Closeout Capitalization


Project Sunlight

The law requires that SUNY employees who are decision makers or decision advisors report all substantive “appearances” with non-government entities (both individuals and firms) regarding one of five designated categories to an on-line searchable database within five days of the appearance IF the cost of the procurement / contract could be more than $25,000; All entries will be published on a public-facing website.

For more, see SUNY’s compliance websiteSeptember 2015

http://www.suny.edu/compliance/topics/projectsunlight/index.cfm


Term and Backdrop

Agreements

September 2015


Term Agreements

*New* Agreement Template available onlineSeptember 2015

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.

September 2015


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

September 2015


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’

September 2015


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

September 2015
