1. IT Staff Augmentation Contracts (ITSAC) DIR Connect May 25, 2016

2. DIR Conference Speakers Shannon Kelley Manager Enterprise Contract Management Joan Scott Contract Manager Enterprise Contract Management

3. Agenda Contract Re-procurement ITSAC Competitive Solicitation Process Best Value Process ITSAC Tips and Tricks Internship Pilot Questions and Answers

4. Re-procurement of IT Staffing Contracts DIR surveyed current users of ITSAC contracts and contracted vendors Held focus groups with representatives from three volunteer agencies Contracted with a third party to benchmark existing ITSAC rates. Procurement was released on March 29, 2016. Proposals were due on May 5, 2016.

5. Re-procurement IT Staffing Contracts New procurement for IT Staffing contracts are currently in the evaluation stage. DIR received 291 responses. For administrative efficiency for DIR and its Customers, DIR reasonably anticipates that it will award no more than 100 ITSAC contracts. Current contracts have no remaining extensions and will expire within the next few months. All applicable service agreements/purchase orders that were entered into between Vendor and a Customer under the existing contracts shall survive the expiration or termination of the Contract.

6. Overview of IT Staffing Categories Developer Analyst Developer Software Test Analyst Technical Writer Business Analyst System Analyst Database Architect Data Warehouse Architect Database Administrator Enterprise Architect Project Manager Project Lead Network Engineer Network Administrator Help Desk Technical Support OCM Analyst (NEW) IT Communication Coordinator (NEW) IT End User Trainer (NEW) IT Contract Manager (NEW)

7. Competitive Solicitation Process Agency submits request to DIR and DIR solicits resumes from all vendors in an awarded labor category. This fulfills SB 20 requirements. Customer generates and submits IT Staffing Services Request Form IT Staffing Services Request Form *FOR STATE AGENCY CUSTOMERS ONLY: TIBH Requirements Must review candidate first If selected, follow ITSAC Competitive Solicitation Process If not selected, follow process but must report on agency’s State Use Report (per HRC 122)

8. Competitive Solicitation Process Customer schedules and conducts interviews of candidates. Customer identifies the ITSAC Contractor(s) and terms: Selection of worker(s) Negotiation of hourly rate(s) below the NTE rate(s) Identification of contract term (start and end dates) Any other related terms and conditions that do not weaken DIR awarded contracts

9. Competitive Solicitation Process Customer generates a purchase order directly/payable to Vendor. Customer must reference Vendor Contract Number on purchase order. Purchase orders are effective and binding when accepted by Vendor. Customer provides DIR with a copy of the finalized IT Staffing Services Solicitation response tabulation. Customer manages ITSAC Contractor(s).

10. Competitive Solicitation Process Vendor submits invoices directly to the customer. Invoices are to be issued in compliance with TGC 2251.TGC 2251 Customer makes payment directly to the vendor. Customers are to comply with TGC 2251, in making payments to vendors. TGC 2251 Vendor collects and compiles all sales into a single detailed monthly report and provides that report, in the required format, to DIR. The report is submitted electronically to DIR no later than the fifteenth (15th) calendar day after the close of the previous month period.

11. Best Value Process Customer identifies ITSAC labor category to be procured. Customer selects Vendors to receive pricing request from contracted Vendors on the DIR website. Customers must follow Senate Bill 20 procurement thresholds when using the Best Value Process.

12. SB20 Changes for State Agencies Only Contract ValueNumber of DIR Vendors $50,000 or less May directly award the contract to a single vendor on the DIR list IF that vendor is the Texas Industries for the Blind and Handicapped (TIBH). Otherwise, the agency must solicit a response from the TIBH ITSAC contract and another vendor. More than $50,000 but not more than $150,000 Three (or all DIR Vendors in a category with less than three vendors). One of the vendors must be TIBH. More than $150,000 but up to $1 million Six (or all DIR Vendors in a category with less than six vendors). One of the vendors must be TIBH. More than $1,000,000Agencies must conduct an independent procurement and cannot use DIR Cooperative Contracts

13. Best Value Process FOR STATE AGENCY CUSTOMERS ONLY: State agency customers are required to solicit a response from the TIBH. If the state agency receives a TIBH candidate resume, the agency must review the TIBH response and determine whether to select the candidate or not. If the TIBH candidate is selected, proceed with ITSAC procurement process. If the candidate is not selected, the agency must satisfying the non-competitive requirements and shall provide DIR with a copy of their “Best Value” justification letter. In addition, the customer must report this decision on the agency’s State Use Report as per HRC 122.HRC 122

14. Best Value Process Customer identifies the ITSAC contractor(s) and terms: Selection of ITSAC contractor(s)(s) from a DIR IT Staffing Services vendor Negotiation of hourly rate(s) below the NTE rate(s) Identification of contract term (start and end dates) Any other related terms and conditions that do not weaken DIR awarded contracts

15. Best Value Process Customer generates a purchase order directly/payable to IT Staffing Services vendor. Customer must reference Vendor Contract Number on purchase order. Purchase orders are effective and binding when accepted by vendor. Customer provides DIR with a BEST VALUE LETTER OF JUSTIFICATION, including: Justification statement Awarded vendor(s)/contractor(s) names and vendor’s DIR Contract number Category, title, level Awarded hourly rate Email Letter of Justification to joan.scott@dir.texas.gov and ann.texter@dir.texas.govjoan.scott@dir.texas.gov ann.texter@dir.texas.gov

16. Best Value Process Customer manages ITSAC contractor(s). Vendor submits invoices directly to the customer. Invoices are to be issued in compliance with TGC 2251.TGC 2251 Customer makes payment directly to the vendor. Customers are to comply with TGC 2251, in making payments to vendors. TGC 2251

17. Background Checks Customers have the right to perform backgrounds on ITSAC candidates (Appendix A, Section 8. Vendor Responsibilities, J. Background and/or Criminal History Investigation of the IT Staffing Contracts) Applies to Best Value and Competitive Solicitations DIR recommends that Customers perform a background and/or criminal history investigation on any vendor personnel who will have access to sensitive and/or secure systems, data or materials.

18. Tips and Tricks Consider a Needs Assessment Skills – Do the skills required currently exist within the agency? Timeliness – If the current staff does not have the required skills, how long will it take for current employees to develop the skills? Permanence – Is the skill set needed to fill a temporary or project specific need or will the skills be needed for longer than six months? Cost effectiveness – Are there more cost-effective alternatives available to complete the required tasks/projects?

19. Tips and Tricks DIR Procurement Process A job description including all tasks to be performed by the contractor The completed needs assessment Estimated time contractor will be needed (this should not be longer than six months unless there is a cost benefit analysis justifying the extended time) IT Staffing Services position title, technology type and Not To Exceed rate Completed IT Staffing Services Request Form (for Competitive Solicitations)

20. Tips and Tricks Completing the Competitive Solicitation Form Term of Service Estimated number of hours – Example: For a full-time position for 3 months, the number of hours would be 480 Term of service - proposed time frame for this job. Example: January 1, 2016 to March 31, 2016 You can make changes The solicitation states, “This service may be amended, renewed, and/or extended providing both parties agree to do so in writing.” Be sure to include a job description

21. Tips and Tricks Completing the Competitive Solicitation Form Minimum Requirements One or more must ask for a number of years of experience in the Level requirements below to be considered that Level Level 1 = 0 – 3 years of experience Level 2 = 4 – 7 years of experience Level 3 = 8+ years of experience For Example, only one Minimum Requirement (MR) must ask for 8 or more years of experience, and the other MR can be 7 years or less for it to equal a Level 3.

22. Tips and Tricks Documentation Proof the rate was negotiated Documentation that the SB 20 thresholds were met (for Best Value only) If agency receives a candidate from TIBH, include in agency’s State Use Report (for state agencies only) Send DIR Best Value Justification

23. Tips and Tricks Purchase Order Extensions Onsite versus Remote Working Not-to-Exceed Rates Contractors should not represent themselves as a employee. All contractors must represent themselves as a contractor for the Customer. Contractors should not sign correspondence on behalf of the Customer. Contractors should not initiate or participate in the approval process of agency documents such as contracts, procedures, correspondence, etc. All communications with external entities should be approved by the supervising employee.

24. Pilot Program- Internships The purpose of this program is to provide interns from institutions of high education to DIR Customers. DIR intends to provide customers a resource to utilize and mentor for positions currently held by the significant number of current employees that are retirement–eligible in upcoming years – “The Silver Tsunami” State agencies will be able to introduce potential hires to the benefits of state employment Interns will gain valuable experience in information technology services.

25. Vendor Guidance What do you want ITSAC Vendors to know?

26. Questions and Answers Questions? Please contact us. Joan Scott, Contract Manager joan.scott@dir.texas.gov (512) 475-3290 Ann Texter, Management Analyst ann.texter@dir.texas.gov (512) 936-6660 Shannon Kelley, Manager, Enterprise Contract Management shannon.Kelley@dir.texas.gov (512) 463-7666