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 20151SUNY Office for Capital Facilities

Objective Increase knowledge and understanding of: Financial Management of Capital Funds Procurement Requirements Consultant Selection Overview Minority and Women Owned Business Requirements September 2015SUNY Office for Capital Facilities2

Office for Capital Facilities Visit our Website September 2015SUNY Office for Capital Facilities3 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

September 2015SUNY Office for Capital Facilities4

Financial Management of Capital Funds September 2015SUNY Office for Capital Facilities5

September 2015SUNY Office for Capital Facilities6 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 # of Bldgs Sq. Foot (1) Avg Age (2) Funded By Projects Managed By Educational Facilities 1, StateFund/Campus Hospitals Hospital Revenues Fund/Campus Residence Halls Room Rents DASNY/ Campus Community Colleges % State 50% Local Local Totals2,

The State’s Fiscal Year is April 1 st through March 31 st The State, SUNY, and the Fund are currently preparing for the next Fiscal Year January - March June – September/October September/October- December November - January Budget Cycle September 20157SUNY Office for Capital Facilities

Capital Appropriations September 2015SUNY Office for Capital Facilities8

Types of Appropriation September 2015SUNY Office for Capital Facilities9 Advanced = Bonded = 30 year loan

September 2015SUNY Office for Capital Facilities10 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 2015SUNY Office for Capital Facilities11 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 2015SUNY Office for Capital Facilities12

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 2015SUNY Office for Capital Facilities13 Operating vs. Capital Expense

Procurement Requirements and Thresholds September 2015SUNY Office for Capital Facilities14 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 2015SUNY Office for Capital Facilities15

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 2015SUNY Office for Capital Facilities16 Learn more, see Guidance Document CLC-3

Procurement Requirements September 2015SUNY Office for Capital Facilities17

Procurement Requirements September 2015SUNY Office for Capital Facilities18 Polices and Procedures 7553 – Purchasing 7552 – Procurement Lobbying 7554 – Consultants 7555 – Construction 7556 and 7557 – MWBE See Handout #1

Campus Let Design Project Identify 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 2015SUNY Office for Capital Facilities19

Campus Let Construction Project Identify 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 September 2015SUNY Office for Capital Facilities20

Most Qualified Selection (Consultant) Contracts are negotiated with the most qualified consultant Applicability: >$25,000 SUNY Procedure #7555 September 2015SUNY Office for Capital Facilities21 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 2015SUNY Office for Capital Facilities22 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 2015SUNY Office for Capital Facilities23 Division of Budget Bulletin 1184 B-1184

Wicks Law (Construction) September 2015SUNY Office for Capital Facilities24 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

Wicks Law (Construction) September 2015SUNY Office for Capital Facilities25 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

Wicks Law (Construction) September 2015SUNY Office for Capital Facilities26 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 2015SUNY Office for Capital Facilities27 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 websiteDepartment of Labor website September 2015SUNY Office for Capital Facilities28 NYS Labor Law, Article 8 & 9

New York State Contract Reporter Advertisement for at least 15 business days prior to the 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 2015SUNY Office for Capital Facilities29 NYS Economic Development Law (§142)

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 2015SUNY Office for Capital Facilities30

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 Union September 2015SUNY Office for Capital Facilities31 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 2015SUNY Office for Capital Facilities32 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 2015SUNY Office for Capital Facilities33 For more, read Procedure 7552Procedure 7552

Vendor Responsibility For all contracts vendors and contractors must be deemed responsible Contracts >$100,000 require Vendor Responsibility Questionnaire using VendRepVendRep Agency certification of Vendor Responsibility September 2015SUNY Office for Capital Facilities34 NYS State Finance Law §163 OSC Guide to Financial Operations, Section XI.16 Vendor Responsibility OSC Guide to Financial Operations

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 2015SUNY Office for Capital Facilities35 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

September 2015SUNY Office for Capital Facilities36 Learn more, see Guidance 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 2015SUNY Office for Capital Facilities37

September 2015SUNY Office for Capital Facilities38

Consultant Selection Overview Procedure 7554 Construction Related Consultant Procedure September 2015SUNY Office for Capital Facilities39

Campus Let Design Project Estimates, Budget, Funding Source B-1184, MWBE Goal Development Project Funding Request (if Capital) Develop RFQ, include MWBE Goals Advertise (NYSCR) Consultant Selection MWBE Participatio n Analysis Negotiations and Consultant Forms: Procurement Lobbying, Vendor Responsibility Insurance, Consultant Reporting Campus Certification Contract Award September 2015SUNY Office for Capital Facilities40

State Finance Law §136-a May 2015SUNY Office for Capital Facilities41 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.

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 2015SUNY Office for Capital Facilities42

May 2015SUNY Office for Capital Facilities43 Request for Qualifications See Handout #3

Short List Brief review of all Submittals of Qualifications Each committee member individually completes a Short List Rating Form ( ) Short List Ratings are complied in the Short List Summary Form ( ) September 2015SUNY Office for Capital Facilities44 See Handout #4 & #5

Evaluating Firms Detailed review of Submittal of Qualifications Site visits and Interviews, as applicable Contact References (Form ) Committee members individually complete the Consultant Selection Rating Form ( ) September 2015SUNY Office for Capital Facilities45 Score in ink. Do not write comments on the score sheets. See Handout #6 & #7

Evaluating Firms Consultant Selection Rating Form ( ) 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 2015SUNY Office for Capital Facilities46 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 ) to the most qualified consultant Negotiate a fair and reasonable fee Complete the Procurement Checklist (Form ) September 2015SUNY Office for Capital Facilities47 Forms available onlineonline See Handout #8 & #9

September 2015SUNY Office for Capital Facilities48

September 2015SUNY Office for Capital Facilities49 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 or Minority and Women Owned Business Program Executive Law 15-A

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September SUNY Office for Capital Facilities

Additional Slides September SUNY Office for Capital Facilities

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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 2015SUNY Office for Capital Facilities54 SUNY Procedure 7302

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 2015SUNY Office for Capital Facilities55 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 2015SUNY Office for Capital Facilities56 Renovations are an asset. In accounting, capitalization is when we spread the cost of an asset across the life of that asset. SUNY Procedure 7004SUNY Procedure 7004

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 2015SUNY Office for Capital Facilities57 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 2015SUNY Office for Capital Facilities58 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 websitecompliance website September 2015SUNY Office for Capital Facilities59

Term and Backdrop Agreements September 2015SUNY Office for Capital Facilities60

Term Agreements *New* Agreement Template available onlineonline September 2015SUNY Office for Capital Facilities61 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 2015SUNY Office for Capital Facilities62

Term Agreement Process Provide a project notification & summary to the consultant Term Project Initiation (Form ) Negotiate a fair and reasonable fee Verify funding source Provide Authorization to Proceed ( ) Term Agreements do not require a selection process to assign a project September 2015SUNY Office for Capital Facilities63

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 Negotiate a fair and reasonable fee Provide Authorization to Proceed Mini selections are done as a ‘desktop analysis ’ September 2015SUNY Office for Capital Facilities64

Term Contract Limits Tier 1Tier 2Tier 3 Contract Limit$225,000 $700,000$3,500,000 (Consultant Cost) Contract Est. $1,500,000 $5,000,000$17,500,000 Construction Value Project Limit $75,000 $200,000 $500,000 (Consultant Cost) Project Est. $525,000 $1,300,000 $3,500,000 Construction Value September 2015SUNY Office for Capital Facilities65

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