1. The Contract Review Process

2. Contract Review Process
What Happens at OSC?
How are Contracts Reviewed?
The Procurement Record
Single and Sole Source Procurements

3. What happens at OSC?

4. OSC reviews approximately 45,000 transactions annually.
New Contracts
Amendments to Existing Contracts
Purchase Orders
AC 340’s

5. In addition, OSC staff…
Assists agencies with the development and review of their RFP’s or IFB’s
Reviews and resolves procurement protests with assistance from our legal staff
Responds to telephone calls from agencies to assist them in the contracting process
Participates in various work groups in order to advance technological and process improvements
Offers contract/procurement training to agencies

6. After receipt by OSC’s central mailroom, transactions are delivered to the Contract Control Unit in the Bureau of Contracts
It is important to make sure packages are labeled BUREAU OF CONTRACTS, 11th FLOOR
Do not put contracts and vouchers in the same envelope
The Contract Control Unit opens the mail and all transactions are date-stamped.
Each contract transaction is then logged in to the Central Accounting System (CAS) in order to acknowledge receipt by OSC

7. New Transactions:
The Contract Control Unit distributes transactions to the audit teams based on the batch type identified by the agency.
Since the batch type routs the contract to the proper audit team, it is VERY important that you use the correct batch type to avoid delays in processing (see recently updated bulletin G-194 for batch types.)

8. Amendments to Contracts
A list of contracts being amended is generated by the CAS.
Our warehouse staff in Menands (Riverview) pulls the original contract files on the list.
Contract files are sent by courier to the Contract Control Unit where they are matched with the contract amendment to be reviewed.
The documents are delivered to the audit teams for review.

9. New Transactions & Amendments
Contracts are assigned to auditors in the appropriate team by supervisory staff
Auditors enter contract information on our Contracts Database
Auditor sorts contracts by priority:
Emergency & time sensitive
Contracts with Not-For-Profits
“Quick” contracts, etc.
Auditor begins reviewing the transaction

10. How are contracts processed?

11. New Contract Review Review RFP/IFB
To assure compliance with the Procurement Stewardship Act
Review Procurement Record to assure compliance with the RFP/IFB
An incomplete procurement record is the number one cause for time delays in reviewing and approving contracts.
Review the evaluation and selection for fairness, reasonableness and to determine that it is in accordance with what was published in the RFP/IFB

12. Office of the State Comptroller
The Procurement Record
Definition
Requirements
Checklist
Benefits
Bid Protests

13. Office of the State Comptroller
The Procurement Record
Definition: “The documentation of the decisions made and the approaches taken in the procurement process.”

14. Office of the State Comptroller
The Procurement Record
Requirements
Description
Need Statement
Procurement Method/Method of Award
Contract Reporter Advertisement
Competitive Field
Scope of Work

15. Office of the State Comptroller
The Procurement Record
Requirements (cont’d)
Evaluation Criteria
Application Methodology
Basis for Award and Selection
Best Value Criteria
Best Value Application

16. Office of the State Comptroller
The Procurement Checklist
Checklist
Assist agencies in preparing, documenting, and submitting the procurement package.
Follows the procurement process from need to contract execution.
Documentation requirements are dependent upon the type and complexity of the procurement.

17. New Contract Review
Review contract terms and conditions to assure that:
The important contract terms match what was published in the RFP/IFB
The terms are reasonable and not unfavorable to the state
Review for required clauses, advertisements, control agency approvals and authorized signatures
The completed package is forwarded to the appropriate authorized OSC signatory for review and final approval

18. Amendment Review Review the terms and conditions of the amendment
Verify that the transaction is in compliance with the original contract’s terms and conditions
Verify agency signatures, control agency approvals and AC340
The completed package is forwarded to the appropriate authorized OSC signatory for review and final approval

19. Contract Inventory Tracking
During the audit process, our database is updated periodically to indicate the current status of the transaction.

20. Approved Transaction
Once the transaction has been signed (approved), it is forwarded to the Contract Control Unit for the batch to be released on the CAS.
After release, the paperwork is sorted into what OSC keeps as a record and what is to be returned to the appropriate agency.

21. End of Tale…….. Happy Customer!!
Unless….

22. DELAYS IN THE PROCESS

23. Common Problems Incomplete Procurement Record
If limited competition was received (less than 3 bids), we need to see your answers to the following questions in the procurement record:
Why do you think you received only 1 or 2 bids?
Could your specifications have been restrictive or ambiguous?
Did you canvass the vendors that didn’t bid to see why they did not bid? What did you find out?
In light of the limited competition, defend the reasonableness of the price.
The procurement record must be complete so that our staff can see that the award was in compliance with all applicable laws relating to:
Contract Reporter Advertisements, Newspaper Advertisements if applicable, Procurement Stewardship Act, MacBride law and others.

24. Common Problems Incomplete Procurement Record (Cont’d)
The procurement record must be complete so that our staff can walk through the selection process you followed in order to see that that the selection and award was in compliance with the solicitation document (RFP/IFB) and to see that a reasonable and fair procurement was done.
Certified Bid Tabulation
RFP or IFB
Evaluation Instrument
Matrix of Scores
Winning Bid Proposal
Questions and Answers
No-bid Letters

25. Common Problems
The AC340 is set up with an incorrect contract amount OR the agency did not encumber money for the fiscal year’s obligation
The contract has not been approved by the Attorney General’s office.
An incorrect batch type is used delaying delivery to the correct team

26. IFB Team Responsibilities
Contracts let by an Invitation for Bid, except for “Quick” contracts
Construction
Commodities
Services
Revenue Contracts
Single/Sole Source Commodities

27. RFP Team Responsibilities
Contracts let by a Request for Proposals
Technology
Services
Revenue Contracts
Single/Sole Source Services

28. GQC Team- Everything Else!
Grants
“Quick” Contracts
Architect, Engineering & Surveying Contracts
Negotiated Agreements
Leases
Land Transactions
Repayment Agreements
Intergovernmental Agreements

29. Single and Sole Source
Procuring services or commodities by the single or sole source method

30. Single Source Defined:
A procurement in which although two or more offerers can supply the required commodities or services, the commissioner or state agency, upon written findings setting forth the material and substantial reasons therefor, may award the contract to one offerer over the other.

31. Sole Source
Defined:
A procurement in which only one offerer is capable of supplying the required commodities or services.

32. Single/Sole Source Requirements
Justification for single or sole source must be clearly outlined in the procurement record.
Need for the purchase
What alternatives were considered?
How vendor was selected
The basis upon which it is determined that the cost is reasonable

33. Single/Sole Source and the Contract Reporter
Contract Reporter exemption request must be approved before you send us a contract for approval.
Advertising the potential opportunity in the Contract Reporter and getting no responses bolsters your case for single or sole source as long as the advertisement was not written in a way that purposely discourages responses.

34. Questions?