1. Vendor Responsibility PRACTICAL IMPLEMENTATION & VENDREP SYSTEM INITIATIVE
State Purchasing & Trade Show
May 17 & 18, 2006
Empire State Plaza, Albany

2. Overview of Vendor Responsibility
Where are we today?
Vendors
Agencies
OSC

3. Objectives Components of a Strong Agency Review
Components of Adequate Documentation
Components of OSC Review

4. Responsible Vendor
Financial & Organizational Capacity to perform contractual obligations
Legal Authority to conduct business in NYS
Integrity to warrant an award of taxpayer funds
Past Performance on government contracts

5. State Agency’s Obligations
To assess every vendor according to the 4 factors - FLIP
New Contract > $100,000
Obtain vendor disclosure based on FLIP
New Contract < $100,000
Consider any information that has come to your attention
Risk-based

6. Financial and Organizational Capacity
Assets and Liabilities
Recent Bankruptcies
Equipment & Facilities
Staff Resources & Expertise
Appropriate Accounting & Auditing Procedures

7. Legal Authority Licensure Requirements
Charities Registration with NYS Attorney General
Operating Certificates
MBE/WBE/DBE Certifications

8. Integrity Criminal Indictments or Convictions Debarments
Outstanding Tax Liabilities
Liens & Judgments
Prior Finding of Non-Responsibility

9. Past Performance Reports of less than satisfactory performance
Early contract termination for cause
Contract abandonment
Agency experience

10. Documentation Required for a Complete Procurement Record
Depending on the value and type of transaction
Agency Responsibility Certification
Agency Responsibility Profile
Vendor Disclosure
Independent Research

11. Vendor Responsibility Profile
Documents the Process used to Determine Responsibility including:
Methods of disclosure
Any cautionary information found or potential issues identified
Steps taken by agency to assess vendor responsibility
Agency Assessment of each item
For factors other than Integrity, Agency Resolution of an issue is as it relates to the specific scope of work

12. OSC Contract Review
Every transaction submitted for OSC approval receives a vendor responsibility review
Bureau of Contracts (BOC) Primary Auditor – initial review
VendRep Auditor – concurrent with BOC procurement audit

13. VendRep Team Review Agency Profile Vendor Disclosure All Attachments
All documentation provided including:
Agency Profile
Vendor Disclosure
All Attachments

14. Consider Method of Disclosure
Are 4 factors addressed?
Is adequate explanation provided for any affirmative responses?

15. Consider Agency Process
Accepted vendor disclosure at face value?
Independently verified information provided?
Documented resources consulted?
Internet Sources
Other Agencies
Documented Agency offices consulted?
Program Office
Legal

16. Consider Agency Documentation of Potential Issues
All Disclosed items
Failure to disclose
Information found by independent review

17. Example Potential Issue – Vendor has outstanding State, Federal or Local Tax Liability
Adequate Resolution:
Vendor has executed a payment plan to satisfy outstanding tax liabilities.
Payments will not adversely impact financial resources for this project

18. Example Potential Issue – Vendor has Serious or Willful OSHA Violations
Adequate Resolution:
Serious OSHA violations for facility/office not involved in this project
Serious OSHA violations remediated by corrective action plan and staff training

19. Example Potential Issue – Current or Previous Bankruptcy
Adequate Resolution:
Vendor has emerged from bankruptcy protection in strong financial position
No contract payments will be made until goods/services are received and accepted. Other vendors are available to provide goods as necessary – therefore no risk

20. Not an Adequate Resolution
“See Questionnaire”
“Fine Paid”

21. VendRep will Contact the Contracting Agency
Missing Documents
Incomplete Documents
Disclosed information is not assessed
Assessment is not project-specific
OSC aware of information not documented
Responsibility determination not adequately justified

22. Centralized Online
VendRep System
Initiative

23. OSC VendRep System Initiative
Government
VendRep
System
On-line
Services
Enrollment and
Login
Web
Applications
Business

24. High Level System Design
Phase I – Vendor Disclosure
Enrollment, vendor response set, vendor contract data and notifications
Phase II – Agency Documentation
Profile, external interfaces, resource checklist, procurement code and issue reporting
Phase III
Interface with new Central Accounting System

25. Demonstration of
Vendor Functionality

26. Question Set Branches Question Set Content Core questions
Additional or different questions determined by responses to Basic Info / Branching Questions
Different question sets:
For Profit, Non-Construction
Not-For-Profit
Construction

27. Overview of Contracting Entity Functionality
Enrollment
Login
Search
View Response
Set
Notification
Contract
Data

28. Implementation Plan Begin Scheduling Participating Agencies
End of April
Identify Testing Resources
Vendor and State Agency Testing
June - July
Training
Procedures and Process
System Functionality
July -
System Live
Third Quarter 2006

29.
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