Professional Services Contracts in conjunction with Organizational Excellence Made Easy

Procurement Policy LAUSD Board Policy requires competition LAUSD Board Policy requires competition State Education Code (SB1419) State Education Code (SB1419) Public Contracts Code Public Contracts Code Grantor Requirements Grantor Requirements

Contract Authority Board authorizes and is responsible for approving and/or ratifying all contracts. Board authorizes and is responsible for approving and/or ratifying all contracts. Contract Administration Branch is authorized to execute contracts within Delegated Authority up to $250,000. Contract Administration Branch is authorized to execute contracts within Delegated Authority up to $250,000. Contract Administration Branch is authorized to execute all contracts approved by the Board of Education. Contract Administration Branch is authorized to execute all contracts approved by the Board of Education. Schools and Offices can use the Professional Services Decentralized Purchase Order (PD CS) to procure low-dollar value professional services (not exceeding $5,000). Schools and Offices can use the Professional Services Decentralized Purchase Order (PD CS) to procure low-dollar value professional services (not exceeding $5,000). School Principals and Administrators are N O T authorized to execute contracts on behalf of the District.

You’ll soon be an expert in how to… Initiate a Contract Initiate a Contract Amend an Existing Contract Amend an Existing Contract Suspend/Terminate a Contract Suspend/Terminate a Contract Order Services Under a Master Services Agreement Order Services Under a Master Services Agreement Obtain Additional Information Obtain Additional Information

Acquiring Professional Services – Steps: Create a Decentralized Purchase Order for low dollar value professional services (PD CS) online through IFS. Create a Decentralized Purchase Order for low dollar value professional services (PD CS) online through IFS. See Reference Guide No. REF-918 for details. See Reference Guide No. REF-918 for details. Maintain documentation on file at your school/ office in the event of an audit. Maintain documentation on file at your school/ office in the event of an audit. Not Exceeding $5,000

Competitive requirements for acquiring professional service contracts are driven by the estimated cost of service: Exceeding $5,000 to bid threshold (currently $65,100) Exceeding $5,000 to bid threshold (currently $65,100) - 3 Written Quotes Exceeding the bid threshold to $100,000 Exceeding the bid threshold to $100,000 - Informal RFP process Exceeding $100,000 Exceeding $100,000 - Formal RFP process

Initiating the acquisition of professional services exceeding $5,000 requires: A requisition (RX) with CS Prefix A requisition (RX) with CS Prefix Form CS001 (Request for Contract Action) Form CS001 (Request for Contract Action) Scope of work, contractor’s written proposal and payment schedule (if applicable) Scope of work, contractor’s written proposal and payment schedule (if applicable) Approved RFP waiver and After-the-Fact memos, if applicable Approved RFP waiver and After-the-Fact memos, if applicable Contractor’s Certificate of Insurance Contractor’s Certificate of Insurance

Acquiring Professional Services Use the following document numbering formula when creating the RX in IFS: TransAreaDocument Number RX_ _ _CS# (Object Code: 5110, 5140, 5150, 5801 or 5802) (Commodity Code: )

Acquiring Professional Services – Submit RX, Form CS001, scope of work, contractor’s written proposal, and payment schedule (if applicable) at least 30 days before services are needed. $5,000 to Bid Threshold (Currently $65,100) NOTE Schools – CS001 requires signature of Principal and LD Dir. of Instruction Offices – CS001 requires signature of Branch Director

Acquiring Professional Services – Exceeding Bid Threshold to $100,000  Initiate acquisition at least 60 days before services are needed by conducting an Informal Request for Proposal process.  Submit RX, Form CS001, scope of work, contractor’s written proposal, and payment schedule (if applicable). NOTE Schools – CS001 requires additional signature of LD Superintendent Offices – CS001 requires additional signature of Next Higher-Level Administrator

Selection of a contractor to perform services valued at over $100,000 must go through a formal Request for Proposal (RFP) process at least 90 days before the services are needed. Submit RX, CS001, scope of work and evaluation criteria to Contract Administration. Acquiring Professional Services – Exceeding $100,000

Non-Competitive Situations In the event the contract requestor proposes to select a contractor without going through the written quote, Informal RFP, or RFP processes, In the event the contract requestor proposes to select a contractor without going through the written quote, Informal RFP, or RFP processes, ADVANCE WRITTEN APPROVAL is required. After selecting a contractor, the contract requestor must submit an Inter-Office Memo to, and receive approval from, the Chief Procurement Officer, or designee. After selecting a contractor, the contract requestor must submit an Inter-Office Memo to, and receive approval from, the Chief Procurement Officer, or designee.

An Inter-Office Memo should be within the following waiver criteria: 1.C ontractor is identified as a partner or service provider by a process similar to the RFP process but without the formality. 2.S ervice is available from a single source. 3.D istrict’s needs are so urgent that the District’s interest will be seriously injured unless a limit on sources is permitted. Non-Competitive Situations

Waiver Criteria (cont.): 4.A ward to a particular contractor is necessary to maintain that source in case of a District emergency. 5.T erms of the agreement between the District and another organization have the effect of requiring the use of noncompetitive procedures. 6.A law or grant expressly authorizes that the procurement be made from a specified source.

After-the-Fact: Urgent and Compelling Board policy requires all contracts to be approved by the Board of Education or signed by Contract Admin. under delegated authority BEFORE CONTRACT SERVICES ARE INITIATED. Professional Services Contracts are not to be submitted for approval “after the fact,” except in urgent and/or compelling circumstances and only with the written approval of the Chief Procurement Officer or his/her designee.

If seeking approval for Contract Administration to process an after-the-fact contract, an Inter-Office Memo should be written justifying the urgent and compelling circumstance. If it is determined that a contract does not meet the requirement of urgent and compelling necessity, the contract will not be approved and the contract request will be returned to the sponsor. After-the-Fact: Urgent and Compelling

Acquiring Income and No-Cost Contracts Submit Form CS001, scope of work, and payment schedule (if applicable) at least 30 days before services are needed.

Amending an Existing Professional Services Contract Type of Amendment Submit the following Extension of Time Forms CS001 & CS0010 Change in Scope Form CS001, rev. scope Increase in Amount RX, Forms CS001 & CS0010 Terminating/Suspending Forms CS001 & CS0010 Contract ended; Disencumber funds Memo addressed to Contracts, c: Accounts Payable

Contracts That Cannot Be Amended Significant change in the scope of work Significant change in the scope of work Term of contract has already ended Term of contract has already ended (Dead Contract) (Dead Contract) Increase in contract amount > 75% of original contract value Increase in contract amount > 75% of original contract value An amendment increasing the contract amount by more than 75% requires the initiation of a new contract.

Ordering Against a Master Services Agreement (MSA) Orders against MSAs require an RX with the numbering formula of RX _ _ _ MSA# Reference Guide No. REF-427 is specifically for Enrichment Services. Reference Guide No. REF-427 is specifically for Enrichment Services. Reference Guide No. REF-428 is specifically for Professional Services. Reference Guide No. REF-428 is specifically for Professional Services. MSA info can also be found at

What should I do after receiving my copy of the fully executed contract? A.Monitor Contract expenditures to ensure sufficient funds to complete the work B.Monitor performance of the contractor/consultant to ensure compliance with terms of the contract C.Ensure receipt of deliverables included in contract D.Be mindful of the expiration date and/or renewal options and plan ahead for any needed renewals

What should I do after receiving my copy of the fully executed contract? E.Be good to your consultant and help them get paid on time. Check invoices for accuracy, sign/approve and move it to Accounts Payable Remember: District payment provision is typically a 45 day process from receipt of invoice F.File Maintenance – Be sure to keep good records in the event of an audit G.Upon completion of services, send a Contractor Assessment (Form CS0010) to Contract Admin. or complete an online assessment. Contract Admin. will send s to the sponsor requesting the online assessment be completed.

Where To Get More Information Contact Contract Administration at (213) Contact Contract Administration at (213) questions to: questions to: Bulletins, Memos and Reference Guides, available through: Bulletins, Memos and Reference Guides, available through: Inside LAUSD: and Contract Administration’s Website:

Required for Payment of Invoices Authorization to purchase goods or services Authorization to purchase goods or services Acknowledgement that goods and services were received Acknowledgement that goods and services were received Invoice Invoice

Authorization to purchase goods or services Executed copy of the contract (>$5,000) or copy of the amendment to contract Executed copy of the contract (>$5,000) or copy of the amendment to contract - I ssued by Contract Administration Branch - I ssued by Contract Administration Branch - Signed by Contractor and District - Signed by Contractor and District Purchase Order Purchase Order PRIOR TO ANY SERVICE BEING PERFORMED

Acknowledgement that goods and services were received Online Receiver Online Receiver - Required for 3-way match “A” - Required for 3-way match “A” - Accepted in lieu of approval on invoice - Accepted in lieu of approval on invoice Approval on Invoice Approval on Invoice - By site administrator - By site administrator - Print Name and Title - Print Name and Title

Invoice Checklist: Invoice Date Invoice Date - Not earlier than billing period - Not earlier than billing period - Not later than current date - Not later than current date Vendor Name Vendor Name - Same as contract and PO - Same as contract and PO Vendor Address Vendor Address - Should match vendor file info in IFS - Should match vendor file info in IFS - If not matched, vendor should request update - If not matched, vendor should request update

Invoice Checklist: Invoice Number Invoice Number - Preferably 8 digits - Preferably 8 digits - Ensure that payment is credited properly - Ensure that payment is credited properly Reference Contract or PO Reference Contract or PO - Include amendment letter (example: A) - Include amendment letter (example: A) Date(s) when services rendered Date(s) when services rendered - Within contract or amendment dates - Within contract or amendment dates

Invoice Checklist: Description of Work / Service Description of Work / Service - Specify activity or phase completed - Specify activity or phase completed Quantity of Hours Billed Quantity of Hours Billed - Follow payment schedule or terms - Follow payment schedule or terms - Associate with service rendered - Associate with service rendered Unit Price Unit Price - Match to rate per person (or position) - Match to rate per person (or position) - Match to service “package” or “module” - Match to service “package” or “module”

Invoice Checklist (cont.) Itemized Shipping, Handling & Sales Tax Itemized Shipping, Handling & Sales Tax - Fees are not subject to ST - Fees are not subject to ST - Materials are generally subject to ST - Materials are generally subject to ST Total Amount Due Total Amount Due If applicable, deduction from “Amount Due” for any Retention per contract If applicable, deduction from “Amount Due” for any Retention per contract One original invoice to Accounts Payable One original invoice to Accounts Payable - With approval signature or online RC - With approval signature or online RC

Accounts Payable CUSTOMER SERVICE UNIT (213) Website: Thank You!