George E. Pataki Governor Kenneth J. Ringler Commissioner Rodney Luft Purchasing Officer Procurement Services Group NYS Office of General Services Rev. B.1

The Procurement Services Group (PSG) Presents for your procurement pleasure May 2002 Forum

A Closer “Look” At ………... Back-Drop Contracts for Computer Consulting, Systems Integration (SI) & Training Procurement Opportunities & Options Available under these Contracts Initiatives for 2002

GETTING DOWN TO CONTRACT BASICS

CONTRACT basics 101 RFP#S960275-E Back-Drop Contracts OGS PSG Continuous Recruitment Request For Proposal (RFP) Each Vendor who meets the requirements of this RFP is awarded a Back-Drop Contract Back-Drop Contracts OGS PSG pre-qualified contractors eligible to bid on computer related services initiated by authorized users of State contracts ‘Master’ CMS nnn A Contract Number Unique number assigned to each Contractor for the life of the firm’s Contract

CONTRACT Basics 101 Back-Drop Components Uniform Categories Terms & Conditions Categories of Expertise Not-To-Exceed Contract Rates Types of Services

CONTRACT basics 101 Back-Drop Contract Components Uniform Terms & Conditions - No Exceptions! Types of Services Consulting - computer related services such as analysis, design, programming, etc. Systems Integration (SI) - “total solution” including consulting services + product procurement (hardware, software, etc.), integration, customization, etc. Training - computer related topics taught in a classroom, across a network, or at a workstation Categories of Expertise 27 specific areas of knowledge in which Contractors have a “proven” past performance track record Declaration of Expertise Matrix -------->

Declaration of Expertise Matrix Application Development - MF, MR, PC Systems Management - MF, MR, PC Business Process Analysis/Re-Engineering Computer Aided Drafting & Design Data Conversion Desktop Asset Management E-Commerce/Electronic Data Interchange Electronic Output Management Geographic Information Systems (GIS) Help Desk Services Imaging Services Information Security Interactive Voice Response (IVR) Application Development Services Interactive Voice Response (IVR) Hosting Services Internet/Intranet Application Services IT Management & Planning Local Area Network Services Point of Sales (POS) Technology Procurement Telecommunications Services Web Hosting Services Workflow Management Services Year 2000 Services (Y2K)

CONTRACT basics 101 Back-Drop Components - cont’d  Contract Rates INclusive of ALL expenses Consulting & SI Services: 12 Mandatory Job Titles/Classifications NOT-TO-EXCEED HOURLY Rates Project Managers: Entry Level, I, II, III Programmer/Analysts: Entry Level, I, II, III Specialists: Entry Level, I, II, III Levels: minimum years of experience  Entry Level = less than 2 years  Level I = minimum of 2 years  Level II = minimum of 4 years  Level III = minimum of 8 years

CONTRACT basics 101 Back-Drop Components - cont’d Training Services Live/Instructor Led (ILT): not-to-exceed PER STUDENT Rates (1-5 day courses) Computer Based (CBT), Video Based (VBT), Web Based (WBT), Interactive Web Based (IWBT): MINIMUM DISCOUNT - 5% from list at time of bid Ancillary Job Titles/Classifications Optional Job Titles/Classifications (per call rate, per page rate, transaction fee, monthly fee, roaming instructor rate, etc.)  Contract Rates increased annually by lesser of CPI or 5%

GETTING DOWN TO PROJECT BASICS

Project Basics 101 Authorized Users Issuing Entity Vendor Contractor NY State agencies, political subdivisions, localities, and others authorized by law to purchase from State contracts Issuing Entity Authorized user who initiates a project using these contracts Vendor Company interested in a contract with New York State Contractor Company that has been awarded a contract with New York State

Project Basics 101 Procurement Options Purchase from any “responsible” vendor if cost is Less Than $15K (use best value, competitive quotes, & Purchase Orders) Fast Track when Consulting only, less than 18 months, & hourly priced Mini-Bid Discretionary Purchases when less than $50K Mini-Bid Project Definition (PD) for Consulting or Systems Integration (SI) projects Mini-Bid Request for Training Services (RTS) for ILT, CBT, VBT, WBT, & IWBT

Project basics 101 Control Agencies Office for Technology (OFT) Contact early in the process IF anticipated project cost $50K or more Office of the State Comptroller (OSC) POST Audit IF selected bid is less than $15K for State Agencies  Selection = Award & work begins immediately  Documentation sent to OSC ASAP  PRE Audit IF selected bid is $15K or more for State  Work begins upon OSC approval 2 - 4 weeks OSC turnaround time  if Quick Contract Processing criteria satisfied, then 3 - 5 business day turnaround

Project basics 101 Best Value  Offer which optimizes quality, cost, efficiency Technical Component/Non-Technical Components Mandatory requirements Qualifiers – Pass/Fail Quantifiers (Measurable) – Points Optional/Desirable requirements Optional – Points  Financial Component (70%:30%, 75%:25%, etc.)  If Cost factor less than 25%, contact OSC prior to finalizing specs

PROJECT basics 101 Fixed Cap AC340 Contract Encumbrance Request Form Methods of Payment based on the nature of the work Hourly by job title/classification X # of hours = fixed cap By Deliverable X $ amount of each deliverable = fixed cap Other pricing schemes  Per call, per page, per image, per month, transaction fee, etc. Always within contract rates AC340 Contract Encumbrance Request Form Mechanism for paying for services Batch type = TBV Contractor’s contract number  CMSnnnB, CMSnnnC, CMSnnnD……. *********** Never CMSnnnA!!!!! *********** Never a Purchase Order !!

SAY WHAT YOU MEAN! RFP or PD or RTS ? Issuing Entity prepares a Project Definition (PD) or Request for Training Services (RTS), never an RFP when using these contracts Contract Award or Project Award ? Back-Drop Contracts are awarded by OGS PSG To Vendors who successfully meet the RFP requirements Projects are awarded by Issuing Entities To Back-Drop Contractors who successfully bid on projects Project award letter, & copy of OSC approved Summary & Affidavit form confirms the commitment (no formal contract!) Contract End Date or Project End Date ? All Back-Drop Contracts expire on 12/31/05 Each Project’s end date is established in the individual project specifications

How Do I Know Which Procurement Option to use under these Back-Drop Contracts ?

Formal Mini-Bid Process How Do I Know Which Procurement Option to use under these Back-Drop Contracts ? Formal Mini-Bid Process

Formal Mini-Bid Process Discretionary Purchase How Do I Know Which Procurement Option to use under these Back-Drop Contracts ? Formal Mini-Bid Process Discretionary Purchase

Formal Mini-Bid Process Discretionary Purchase Fast Track Procurement How Do I Know Which Procurement Option to use under these Back-Drop Contracts ? Formal Mini-Bid Process Discretionary Purchase Fast Track Procurement

Formal Mini-Bid Process

Is It a Formal Mini-Bid?? B FORMAL MINI-BID N Y Y N Project Commences Immediately Approved FORMAL MINI-BID Notify Selectee(s) & Non-Selectee(s): OSC PRE-AUDIT Notify Awardee(s) & Non-Awardee(s): OSC POST-AUDIT >$50K N Y Y Solicit ALL Contractors in Service & Category/ies >$15K OFT Prior Approval Best Value Award(s) N

FORMAL Mini-Bid Process Mini-Bid Guidelines Consulting, Systems Integration (SI), or Training Services Limited to 5 years** No dollar limit Sent to ALL eligible contractors for the Services and Category/ies of Expertise targeted in project specifications 2-12 Week Bid Response Time Awarded Contractor(s) “guaranteed” work **If beyond these limits, contact OSC for prior approval

FORMAL Mini-Bid Process - cont’d Specifications Document Guidelines & Templates Available Electronically Download templates/guidelines before each new project  Standardized language, forms, attachments within templates Sample Best Value evaluation & selection procedures Define Scope of Work Project needs/wants Current system/computer environment Project expectations/responsibilities of all parties Project start date & duration Mandatory technical/non-technical criteria Job titles/skillsets as they relate to back-drop contract Desirable/optional criteria Technical vs. Financial weights Method of award Single vs. multiple award (“up to nn awards”) Best Value = quality + cost + efficiency

“TOTAL SOLUTION” Strategy Procurement of a “Total Solution” with SAME Contractor Issuing Entity incorporates All Project Phases into PD Platform determined (Oracle, PowerBuilder, etc.) Phase 1 scope of work well defined Subsequent phases described in general terms  Best “estimate” for timeframe to complete each of the subsequent phases Phase 1 firm bid By Deliverable with fixed cap (preferred pricing method) or Hourly with fixed cap Bidders propose Firm bid for Phase 1  Time to complete Phase 1 For subsequent phases  Levels of expertise/skillsets equated to contracted mandatory job title(s) or ancillary job title(s)  Competitive hourly rates for each proposed expertise/skillset  Total cost for the subsequent phase(s) based on Issuing Entity’s projected number of hours to complete subsequent phases

“TOTAL SOLUTION” Strategy - cont’d Issuing Entity Evaluation  Firm bid for Phase 1  Projected hourly rates and skillsets for subsequent phase(s) Selects “winner” and awards Phase 1 only Last deliverable of each phase is contractor’s "firm" price for each subsequent phase Contractor held to proposed hourly rates for subsequent phase(s) and total projected hours Negotiate only the skillsets to complete the next phase and time Accept or reject price & work plan at end of each subsequent phase ** OSC prior approval before each new phase begins If rejected, Issuing Entity can solicit new bids for balance of project During each phase, if scope changes Justification to OSC if more than projected hours and dollars needed OSC approval required before project can continue

“TOTAL SOLUTION” Strategy - cont’d Alternative “Best Practices” Approach Issuing Entity Prepares PD for “Planning” (Analysis) Phase 1 ONLY Describing:  Current system  General plan & direction Winner of Phase 1  May be precluded from bidding on remaining phases Final Deliverable is results-based not platform-based  Is eligible to bid on the Quality Assurance (QA) Separate competitive procurement Winner of QA Assists Issuing Entity In preparation of requirements for the subsequent phases In evaluation of proposals submitted Oversees project’s direction and keeping it on track

Discretionary Purchases

Is It a Discretionary Purchase?? 1 Project Commences Immediately > $50K Fast Track or Formal Mini-Bid Y A N Notify Awardee(s) & Non-Awardee(s): OSC POST-AUDIT SBE, MBE, WBE Buy Direct Discretionary Purchases Y N N Best Value Award(s) >$15K Project Commences AFTER OSC Approval 3 or more bidders Notify Selectee(s) & Non-Selectee(s): OSC PRE-AUDIT Y Approved

Discretionary Purchases Discretionary Purchases Guidelines Consulting, Systems Integration (SI), and Training Services Anticipated Cost for Consulting, SI, or Training is Less Than $50K Solicit Mini-Bids within Services and Category/ies of Expertise targeted by Specifications From a “Minimum of 3” Contractors OR "Buy Direct" if Soliciting Bids from a New York State SBE (Small Business Enterprise)** or MBE (Certified Minority Owned Business Enterprise)** or WBE (Certified Woman Owned Business Enterprise)** **Identified on Web Site Faxed or E-mailed to Selected Contractor(s) Group 73012 – Unique identifier in Subject field of e-mail header Few Days to Two Weeks Bid Response Time

Discretionary Purchases – cont’d Scope of Work/Specifications Instructions & Forms Available Electronically Download templates each time to assure most recent version Sample Evaluation & Selection Procedures Mandatory vs. Desirable Technical Criteria Best Value Evaluation Method of Award Scope Changes With Cost Increases Scope Change Cost Cannot Bring Total Project Cost Greater than $50K Requires justification to & approval by OSC

Fast Track Procurements

Is It a Fast Track?? > A N N Y Y N Y N Fast Track N Y Procurements Notify Awardee(s) & Non-Awardee(s): OSC POST-AUDIT Best Value Award(s) >$15K N Consulting Services N Y Project Commences Immediately Y Solicit ALL Contractors in Service & Category/ies Notify Selectee(s) & Non-Selectee(s): OSC PRE-AUDIT Approved Hourly N Y N > 18 Month Fast Track Procurements >$50K N Y OFT Prior Approval Y B

Fast Track Procurements – cont’d Fast Track Guidelines CONSULTING Services’ Category/ies of Expertise to Augment or Enhance the Issuing Entity's Staff Assumes Multiple Awards Focused on Skillsets Required HOURLY Rates Limited to 18 Months per procurement Mailed, Faxed, or E-mailed to ALL eligible Consulting Contractors within the Category/ies Targeted by Fast Track Specifications Group 73012 – Unique identifier in Subject field of e-mail header Few Days to Two Weeks Bid Response Time If procurement is for less than $50,000, use Discretionary Purchases Guidelines with the Fast Track Form

Fast Track Procurements – cont’d Scope of Work/Specifications Instructions & Forms Available Electronically Download templates each time to assure most recent version Sample Evaluation & Selection Procedures Mandatory vs. Desirable Technical Criteria Best Value Evaluation Method of Award OSC Review & Approval 3-5 day turnaround for Fast Track Procurements Scope Changes With Cost Increases Requires justification to & approval by OSC

Quick Contract Processing OSC Quick Turnaround

Quick Contract Processing Quick Contract Processing Components Less than $300K Competition encouraged 3 or more responsive & responsible bids received Best Value Method of Award defined in specifications No disqualifications, rejections, protests or objections Forms completed & signed by authorized contracting agent Certification Form Procurement Record Checklist Summary & Affidavit Form: 1 original+ 2 copies AC340 prepared with batch type = QDA OSC review in 3-5 business days Can’t use if any direct purchases options (Discretionary, etc.)!

WRAPPING it up!

OGS PSG BACK-DROP CONTRACTS A G D IDEA !! Contract Reporter Ad not required Division of Budget (DOB) approval not required Attorney General (AG) not required Large pool of Contractors - 475 as of 3/25/02 Uniform & comprehensive terms and conditions Contractors added continuously “Emerging technologies” accommodated as necessary Guidelines & templates available electronically Consistency in format/standardized language PSG assistance available Web Site current with real time updates

Contract & Project information is just a click away Visit us on the Web www.ogs.state.ny.us Contract & Project information is just a click away

Click on <Contracts & Purchasing Info.>

Click on <Contracts - Search or Browse>

Click on <Computer Consulting, Systems Integration (SI), Training , Ongoing Services, Maintenance & Support Contracts>

The Contract Award Notification Book Mark the "C A N” !

After Clicking on <Contractor List> (SBE, MBE, WBE identified)

After Clicking on <Contract Specifics >

After Clicking on <Contract Amendment Packet >

After clicking on <Pricing and Contractor Information>

After Clicking on <Download Guidelines/Instructions & All Templates>

After clicking on <Fast Track Procurements>

After clicking on <Mini-Bid Discretionary Purchases>

After clicking on <Mini-Bid Quick Contract Processing>

After clicking on <Contractor Performance Report>

After clicking on <Monthly Purchasing Memoranda>

After clicking on <Intent to Purchase Technology Notification Form: Download This Form>

After Clicking On <Frequently Asked Questions (FAQs)>

Looking Ahead 2002 targeted: third quarter On-Going Services: synonymous with such phrases as continuous, extended, “over a long period of time”, etc. Application Service Providers (ASPs) Document Management Services Help Desk Call Support ………. Maintenance & Support: synonymous with assistance, help, prevention, etc. and addresses: software applications systems that are newly developed, and those that have already been in place and operational hardware on which the software, programs, applications, and systems reside  New category for Equipment Maintenance Declaration of Expertise Matrix -------->

2002 Declaration of Expertise Matrix Application Development - MF, MR, PC Systems Management - MF, MR, PC Application Service Providers (ASPs) Business Process Analysis/Re-Engineering Computer Aided Drafting & Design Data Conversion Desktop Asset Management E-Commerce/Electronic Data Interchange Electronic Output Management Document Management Services Geographic Information Systems (GIS) Help Desk Services Call Centers Imaging Services Scanning & Indexing Information Security System Penetration & Disaster Recovery Interactive Voice Response (IVR) Application Development Services Interactive Voice Response (IVR) Hosting Services Internet/Intranet Application Services IT Management & Planning Local Area Network Services Point of Sales (POS) Technology Procurement Telecommunications Services Web Hosting Services Workflow Management Services Year 2000 Services (Y2K) Equipment Maintenance Mainframe Mid range PC Printers

Let OGS PSG be YOUR FINAL ANSWER. PSG Contacts Sylvia Casper: E-mail: sylvia.casper@ogs.state.ny.us Telephone # 518-473-8079 Fax # 518-486-6867 Rodney Luft: E-mail: rodney.luft@ogs.state.ny.us Telephone # 518-486-6836 Cheri McCullough: E-mail: cheri.mccullough@ogs.state.ny.us Telephone # 518-486-2775 Let OGS PSG be YOUR FINAL ANSWER.