1. Centralized Technology Contract Suite
Authorized User Training

2. Agenda Restricted Period reminder Website information
Centralized Technology Contract Suite Overview
Project Based IT Consulting Services Contract
Scope of Work / SOW
Timelines and Milestones
Deliverables and Withholds
Questions

3. For More information:
PLEASE NOTE: The IT Contract Suite contracts (PBITS, Umbrella, Distributor) are in Restricted Periods. Please contact the Designated Contacts with any questions.
Project Based :
Manufacturers Umbrella :
Distributors Umbrella :

4. For More information:

5. Centralized Technology Contract Suite - Overview

6. Suite Overview
Three components of the OGS new Technology Contracting Suite
Project Based IT Consulting Services
Manufacturers Based Umbrella Contract
Distributor Based Umbrella Contract

7. Common Themes Throughout Each Contract
Mandatory competition
Standardized terms and conditions for all vendors
Standardized forms for procurement and response to procurement
Training for authorized users and for vendors

8. Manufacturer Based Umbrella Overview8
Manufacturer Based Umbrella Overview

9. Manufacturer Based Umbrella Contract
Intended to replace many of the existing OGS Technology contracts
4 Lots – Software, Hardware, Cloud, and Implementation
Future lots can be added through periodic recruitment
It is intended that Vendors will submit full lot catalogs for each Lot offered
Implementation projects may have a duration of up to 36 months

10. Manufacturer Based Umbrella Contract
Contracts soon to be awarded (20%)
Lot 1 Software
Lot 2 Hardware
Lot 3 Cloud
Lot 4 Implementation
Additional contracts will be awarded daily.
Training is now being scheduled with Agencies and Localities. Vendor training will take place after 1/1/16. Training will include both the contract and the forms as well as defined scope of work and deliverable based contracting.

11. Manufacturer Based Specific Advice
Aggregate buys to include product, installation, warranty, maintenance, training, and implementation, where applicable, to obtain the best pricing and service levels.
Implementation on a deliverable basis should provide for better pricing and service.
Cloud entry should occur only after a full data categorization study has been completed. It is strongly recommended:
Authorized Users consider obtaining a cyber security insurance policy in addition to any protections of the contract.
Authorized Users prepare and plan for the potential of a breach and have a mitigation plan developed, prior to moving data into a cloud based solution.

12. Distributor Based Umbrella Overview12
Distributor Based Umbrella Overview

13. Distributor Based Umbrella Contract
This contract will work similarly to the existing Miscellaneous Software contracts
Lot 1 will be Software, Lot 2 Hardware
Multiple Distributors will be awarded contracts for competition
Only includes products not available from the Manufacturer Umbrella contract
Enables small Manufacturers or those with no established government sales to meet Manufacturers Umbrella thresholds for future periodic recruitment (escalator)

14. Distributor Based Umbrella Contract Update
The Solicitation will be released in the near future
Establishment of vendor pool for Manufacturer Umbrella must occur first

15. PBITS Overview 15

16. PBITS Overview Total number of replies received was 190
Tentative award letters have been sent out for 128 vendors
Phase 1 of contracts began September 17th
67 contracts currently posted which represents
Lot 1 – 33 contractors
Lot 2 – 57 contractors
Lot 3 – 15 contractors
Training for agencies – already started
Training for contractors – coming soon
PowerPoints training will be posted to our website soon
Live training is available upon request

17. PBITS Overview 3 year contract, plus 2 optional 3 year renewals
Periodic recruitment
Standardized vendor requirements and terms and conditions
Contracts expire on the same date
Maximum not-to-exceed pricing

18. PBITS Overview Competition at transaction level
Consulting service only, no products
All services will be deliverable based information technology projects, no time and material or hourly pricing allowed
Individual projects have a maximum duration of 36 months

19. PBITS Lots

20. OGS Centralized Contract
PBITS Lots: Structure
OGS Centralized Contract
Lot 1
<$200K
Lot 2
$200K - $7.5M
Lot 3
$7.5 - $25M

21. PBITS Lots: Summary
Minimum time frames from mini-bid release to bid opening
Lot 1 mini-bids: 5 business days
Lot 2 mini-bids: 10 business days
Lot 3 mini-bids: business days
Lot 1 reserved for MWBE and SBE contractors
Lot 3 carries higher insurance requirements

22. PBITS Preparing the Mini-Bid

23. PBITS Preparing the Mini-Bid
Authorized Users are reminded to adhere to:
Statutory requirements
Procedures of the contract
Internal policies and procedures (e.g. ITIR, B-1184)
Federal, state and or local statutes as applicable

24. PBITS Preparing the Mini-Bid
Terms and conditions may be added if:
Not in conflict with the centralized contract
Place no additional liability or responsibility on the agency
Preparation of statement of work, project scope or requirements document
Mini-bids must be sent to all vendors in the selected lot

25. PBITS Preparing the Mini-Bid
Develop a procurement plan which may include:
Surveying the contractor pool for interest in the project (optional)
Develop procurement timeline, scope and deliverables
Evaluation tools creation
Criteria & weighting must be finalized prior to bid opening date
Additional Insurance requirements, if necessary

26. PBITS Preparing the Mini-Bid
Additional optional considerations –
Enhanced budget
change orders with a cost – up to 10% of original project cost
Employ retainage in payment terms
Withholding up to 20% of each deliverable

27. PBITS Evaluation & Award of Mini-Bid

28. PBITS Evaluation & Award of Mini-Bid
Conduct evaluation
Notification of mini-bid results
Communication with tentative awardee to ensure full understanding of each others roles and responsibilities
Finalize procurement record
Issue purchase request

29. Summary

30. PBITS Summary Speed to market Diversity of contractors
Up to 36 month engagements at transaction level
Ability to require additional insurance at transaction level
Streamlined processes
Detailed How to Use
Standardized templates
One link for mini-bid distribution for each lot
No pre-audit required
Enhancement budget is available

31. PBITS Benefits and Website Review
Terms and conditions
How to use
Mini-bid
Financial response

32. Questions

33. Contact the PBITS Team Pbits.authorizedusers@ogs.ny.gov
Pbits website:

34. Scoping for PBITS and the Manufacturer Umbrella contract
What is a Scope of Work?
Scoping for PBITS and the Manufacturer Umbrella contract

35. Creating a Scope

36. Definition: A scope of work is:
A formal agreement document that specifies all the criteria of a contract between a service provider (contractor) and the agency. It clearly documents the project requirements, milestones, deliverables, end products, documents and reports that are expected to be provided by the vendor

37. But what does that mean?
A written document between the contractor and the agency that includes:
What the agency is going to provide
Project lead, Who signs off on what, Is the work being done on-site, is the agency going to provide computers, network connection, parking, access to technical staff, etc.)
What will the contractor provide ( Staffing charts, tools, supplies)
When will work be completed? (8-4, 9-5, after hours)
What steps, phases, DELIVERABLES, will this project entail
What are the risks that may occur, and are there any mitigation strategies?
What is the payment structure
What does success for each deliverable and for the entire project look like

38. Lets look at a simple example
Joe has a one acre lawn. He is looking for someone to care for it and keep it presentable from April to August. The lawn is heavily treed and sticks or branches fall at times and must be picked up prior to mowing. In case of large branches, the lawn provider will let Joe know there are large branches. Joe will contact Fred’s Tree service to remove the large branches. The neighborhood has many dogs. Unfortunately, the neighbors are not always consistent with picking up after their dogs so part of the lawn care will be waste pick up and spot treating with lime. Lastly, the neighborhood children often leave toys or bikes on the lawn that must be moved to the extent possible before mowing. Joe requires the lawn must be mowed if the grass reaches 4” in height but must not be cut any shorter than 2.5 inches in height.

39. A closer look
Joe has a one acre lawn (HOW LARGE IS THE JOB). He needs it cared for from April to August (TIME FRAME) and needs to get someone to keep his lawn looking great. His lawn is heavily treed and sticks or branches fall at times and must be picked up prior to mowing (RISKS). In case of large branches, Fred’s Tree Service will take care of any issues (RISK MEDIATION). The lawn care provide will contact Joe and Joe will contact Fred’s Tree Services. The neighborhood has many dogs. The neighborhood has many dogs. Unfortunately, the neighbors are not always consistent with picking up after their dogs so part of the lawn care will be waste pick up and spot treating with lime (RISK). Lastly, the neighborhood children often leave toys or bikes on the lawn that must be moved to the extent possible before mowing (RISK). The lawn must be mowed if the grass reaches 4” in height but must not be cut any shorter than 2.5 inches in height (PERFORMANCE MEASURE OR STANDARD).

40. Lets get technical
Let’s try a simple IT example: an agency has ZYX database containing input from the last 10 years with approximately 8 million pieces of data.  This data is broken in to tables with multiple variables (see examples attached). This project is to convert the data in to a new format based the agency’s new platform. As part of this process it is expected the contractor to perform data consolidation and verification and place data validation measures on the specific fields in question. Current error rate in data is 63%. It is expected the new data set will contain no more than 1% error . It is expected the contractor will carry this work out in CONUS at their own facilities using their own staff. Data verification issues will be brought to Joe Blank by for resolution. This project must be complete by 1/1/2017 .

41. A closer look
Let’s try a simple IT example: An agency has ZYX database containing input from the last 10 years with approximately 8 million pieces of data.  This data is broken in to tables with multiple variables. (THE SIZE OF THE PROJECT) This project is to convert the data in to a new format based on the our new platform. As part of this process it is expected the contractor to perform data consolidation and verification and place data validation measures on the specific fields in question. Current error rate in data is 63%. (RISK) It is expected the new data set will contain no more than 1% error .(EXPECTATION) It is expected the vendor will carry this work out in CONUS at their own facilities using their own staff (RESOURCES). Data verification issues will be brought to Joe Blank by for resolution (RISK MITIGATION). This project must be complete by 1/1/2017. (TIMEFRAME)

42. Time Lines and Milestones

43. What's your timeframe and milestones?
The project only gives 2 time frames estimated start date (assumed) and a project completion date of 1/1/17. We know however there should be a few more:
Award Date
Kick off meeting – data is exchanged
Planning meeting – we gave you the data – what's your plan?
Plan approval with correction
Full analysis of data with plan of correction
Data correction verified
Design of new data format is complete
Conversion in to the new format is complete and verified
Data has been loaded in to new data based without error
This timeline is required to ensure your project is complete on time.

44. Thoughts on Timelines and Milestones
The contractor will meet your overall time frame but the agency may pay an additional amount for short or expedited time frames
If your total time frame is 36 months you can allow no slippage in timeframes of deliverables. Allowing 6 months time for no cost schedule change is preferable.
Think carefully about your milestones. Invoices or batches of hours are not appropriate milestones.

45. Deliverables and Withholds

46. What are your deliverables?
Deliverables are the points at which an agency is willing to sign off on some portion of the total project. Sign off only when all facets of the deliverable meet the agency’s stated standards. Any deficiencies must result in held payments.
Award Date
Kick off meeting – data is exchanged
Planning meeting – we gave you the data – what's your plan?
Plan approval with correction
Full analysis of data with plan of correction
Data correction verified
Design of new data format is complete
Conversion in to the new format is complete and verified
Data has been loaded in to new data based without error
The first three items on the previous timeline do not require the contractor to produce any actual deliverable so the 3 items do not require any payment.

47. Thoughts on deliverables
Make sure each deliverable is clear, clean and objective. All parts must be defined and expectations set.
Deliverable payments should be based on how valuable the deliverable is to the project and how re-usable the deliverable is should the agency have to hand off the project to a new contractor.
Weigh the majority of the payments on the last few steps to ensure project completion
The initial plan should include a Gantt chart of all go/no go points, sign off points, agency staff responsibilities, and prerequisites.
Holding all payment until completion requires a vendor to float payroll for a long period of time. Small to medium size firms may not have the fiscal resources to do this. Low payments for deliverables during the first half of the project ensure the vendor remains vested in your project and is relieved from some of the payroll burden.

48. Gantt Chart Example

49. What is a Withhold?
A Withhold is the intentional delay of payment until a specific point in the project has been reached. Pbits’ maximum withholding is 20% for each deliverable. For the sample project the first three deliverables are:
Plan approval with correction (10%)
Full analysis of data with plan of correction (10%)
Data correction verified (10%)
A general question: Is the data so poor it can’t be corrected? If so, the agency can hold back or withhold 10% of each of the first 3 deliverables to be paid once the Data Verification is complete.
Note: If an agency wants to use withholdings, the withholding percentages for each deliverable must be stated in the Mini-Bid.

50. Thoughts on Withholds
The more complex the project the more valuable withholds are.
If stated in the Mini-Bid, withholds can be reduced if a vendor exceeds expectations, turns in deliverables early to speed up timeframes, etc.
Withholds require additional work for the person managing the project and the payments. Use them as needed but remember the additional responsibilities.

51. Final thoughts on Scope of Work
The scope of work allows the agency to define the job for the contractor.
Be clear – 8th grade English, very objective on risks, roles, responsibilities, and expectations
Ensure the vendor understands expectations
All deliverables must be clearly defined, completion of stages in the project
Knowledge transfer documentation of each step as well as the entire project is critical for success and for future procurements on the same systems

52. Questions???

53. Thank you for joining us today
Project Based :
Manufacturers Umbrella :
Distributors Umbrella :
Thank you for joining us today