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2011 State Purchasing Forum CONTRACT COMPONENTS A Panel Discussion Moderated by: Connie Rissberger – OGS constance.rissberger@ogs.ny.gov MAY 20112011 State Purchasing Forum1
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MAY 20112011 State Purchasing Forum22 Purpose To identify those key components a contracting professional needs to successfully process a contract.
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Panelists NYS Department of Labor: Mary McDonnell Mary.mcdonnell@labor.ny.gov NYS Worker’s Compensation Board : Steve Carbone Steve.carbone@wcb.state.ny.us NYS Office of the State Comptroller : Bill Hughes bhughes@osc.state.ny.us MAY 20112011 State Purchasing Forum3
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MAY 20112011 State Purchasing Forum44 Agenda Based on their area of expertise, each panelist will be available to answer questions with respect to: NYS Department of Labor Prevailing Wage; Worker’s Compensation Board; and Office of State Comptroller Contract Process
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MAY 20112011 State Purchasing Forum5 NYS of Labor NYS Department of Labor What are prevailing wages? How are they used? What am I responsible for?
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MAY 20112011 State Purchasing Forum6 NYS of Labor NYS Department of Labor Question ? Please explain the difference between Article 8 and Article 9 as it relates to Prevailing Wage.
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NYS of Labor NYS Department of Labor Question Part A : Labor Law § 220 (a) states that “[t]he "prevailing rate of wage," for the intents and purposes of this article, shall be the rate of wage paid in the locality, as hereinafter defined, by virtue of collective bargaining agreements between bona fide labor organizations and employers of the private sector, performing public or private work provided that said employers employ at least thirty per centum of workers, laborers or mechanics in the same trade or occupation in the locality where the work is being performed.” MAY 20112011 State Purchasing Forum7
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NYS of Labor NYS Department of Labor Question Part B ? Then why, in a locality with low single digit union construction workers, (well under the above required 30%) must the state pay hourly rates that exceed even the state job rate for a like title? MAY 20112011 State Purchasing Forum8
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NYS of Labor NYS Department of Labor Question? Why must the state pay about $52 an hour for a residential plumber when the union rate is lower? MAY 20112011 State Purchasing Forum9
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MAY 20112011 State Purchasing Forum10 NYS of Labor NYS Department of Labor Question? My agency is located in New York City. Which prevailing wage rates govern my contract, New York State or New York City? If New York City governs, where do I find those (prevailing wage rates)?
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NYS of Labor NYS Department of Labor Question? Sometimes the job descriptions for prevailing wages don’t seem to completely match the work being performed. How do I insure that the vendor is appropriately paying their staff when I review the certified payrolls? MAY 20112011 State Purchasing Forum11
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NYS of Labor NYS Department of Labor Question? Is there a minimum threshold for requiring application for a PRC? MAY 20112011 State Purchasing Forum12
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NYS of Labor NYS Department of Labor Question? When initiating a project and there's no reasonable match between the job function being performed and the job descriptions posted on your website, does that mean there's no predefined prevailing wage? MAY 20112011 State Purchasing Forum13
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NYS of Labor NYS Department of Labor Question – Part I: Last year changes were made to the prevailing wage regulations stipulating that the vendor needs to pay the current wages published each July. As a result, a preferred source vendor is requesting a price adjustment each July to compensate for the increased wages. Staff at our agency are not skilled with interpreting the wages & supplements, as often rates are different based on the particular task being performed, etc. Staff are also not familiar with contract terms that specify the number of staff and/or the number of hours to be working under the contract. MAY 20112011 State Purchasing Forum14
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NYS of Labor NYS Department of Labor Question – Part II? Staff would need to convert the increased wages and benefits into a total percentage increase (or decrease), and know how much of the bid price would be affected by the increased prevailing wage rates. How does DOL or OSC suggest we address this issue with our vendors? MAY 20112011 State Purchasing Forum15
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NYS of Labor NYS Department of Labor Question? When requesting prevailing wages for a statewide contract, it is possible to have a document that is several hundred pages long or sometimes over 1,000 pages. Is there a way to target the specific titles needed so the document a user agency receives is less cumbersome to page through in order to find the correct wages? Is it possible for the NYS Labor Department to use sub-sets when requesting wages to refine the job a little more? MAY 20112011 State Purchasing Forum16
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MAY 20112011 State Purchasing Forum17 2011 State Purchasing Forum 17 Workers’ Insurance & Benefits Requirements Workers’ Compensation Insurance & Disability Benefits Requirements What is Workers’ Compensation Insurance? Why is it important? Who needs to be covered? What forms are required?
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Disability Workers’ Compensation Insurance & Disability Benefits Requirement Question? Many vendors (particularly IT contractors) are located entirely out of state but their installers or consultants will come on-site for a few days for installation and implementation. What do I need to do for them to insure that I meet my obligations under the law? MAY 20112011 State Purchasing Forum18
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Workers’ Compensation Insurance & Disability Benefits Requirements Question? When does workers’ compensation debarment apply to government permits, licenses and contracts? MAY 2011 2011 State Purchasing Forum 19
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Workers’ Compensation Insurance & Disability Benefits Requirements Question? How do I get a copy of the Prove It to Move It Manual, the instruction guide for government agencies regarding workers' compensation and disability benefits requirements when issuing permits, licenses and contracts? MAY 20112011 State Purchasing Forum 20
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Workers’ Compensation Insurance & Disability Benefits Requirements Question? The requirement under NYS Finance Law to document participation in NYS Worker’s Compensation and Disability Insurance requires us to obtain completed forms C105.2 or DB 120.1. However, I can go to the WCB website, enter the vendor information and see in real time if a vendor participates. Isn’t this a less efficient use of the agency’s and vendors’ time and resources? MAY 20112011 State Purchasing Forum21
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Workers’ Compensation Insurance & Disability Benefits Requirements Question? If a vendor is a sole proprietor and is not required to carry Worker’s Compensation Insurance coverage for employees, does the vendor need to submit the Certificate of Attestation of Exemption Form (CE-200) for New York Entities with no employees stating that this insurance coverage is not required? When is the Certificate of Attestation of Exemption Form (CE-200) required? MAY 20112011 State Purchasing Forum22
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Disability Workers’ Compensation Insurance & Disability Benefits Requirement Question – Part I? My agency recently awarded a contract to an out of state vendor. This vendor bought the materials from a New York vendor and hired another New York vendor to deliver the material to us. Both of these New York State vendors carried Workers’ Compensation Insurance. MAY 20112011 State Purchasing Forum23
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Disability Workers’ Compensation Insurance & Disability Benefits Requirement Question – Part II? While this vendor never actually set foot in New York State, the out of state vendor was still required to carry Workers’ Compensation Insurance adding $1,000 to the cost of the contract. This seems totally unnecessary and another reason for vendors not to do business with NY. Can this law be reviewed and possibly changed or was this a mistake to begin with? MAY 20112011 State Purchasing Forum24
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MAY 20112011 State Purchasing Forum25 Worker’s Compensation and Disability Benefits Requirements
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MAY 20112011 State Purchasing Forum2626 Office of the State Comptroller Ask yourself: What does OSC want me to include in a successful contract? What supporting documentation and examples can I obtain from this session? What resources are available?
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Office of the State Comptroller Question? Were there any changes to New York State Finance Law governing procurements this year? MAY 20112011 State Purchasing Forum27
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Office of the State Comptroller Question? I would be very much interested in changes in piggybacking when dealing with GSA contracts. This has become a major issue for my agency; these piggyback contracts are very important. MAY 20112011 State Purchasing Forum28
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Office of the State Comptroller Question? How do I know if my elevator maintenance and refuse removal should be done on a contract and not a purchase order? How long should the contract be for? What determines the batch type to use? How do I get started for 2011-12 if they have never been done that way before? MAY 20112011 State Purchasing Forum29
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Office of the State Comptroller Question? My agency is especially interested in the changes and revised or new processes due to legislation and alterations in design, construction, and other contracts vis-à-vis OSC. Already, my agency is being told things as basic as….BCL’s will not be required though that sounds questionable. MAY 20112011 State Purchasing Forum30
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MAY 20112011 State Purchasing Forum3131 Contact Information Mary C. McDonnell NYS - DOL Bureau of Public Work – Central Office Mary.mcdonnell@labor.ny.gov (518) 457-5589 William Hughes NYS – OSC Bureau of Contracts bhughes@osc.state.ny.us (518) 486-1292 Steve Carbone NYS Worker’s Compensation Board Steve.carbone@wcb.state.ny.us (518) 486-6307
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MAY 20112011 State Purchasing Forum32 Thank You! Enjoy the day
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