1. George E. Pataki Governor
Kenneth J. Ringler
Commissioner
Rodney Luft
Purchasing Officer
Procurement Services Group
NYS Office of General Services
Rev. B.1

2. The Procurement Services Group (PSG)
Presents
for your procurement pleasure
May 2002 Forum

3. A Closer “Look” At ………...
Back-Drop Contracts for Computer Consulting, Systems Integration (SI) & Training
Procurement Opportunities & Options Available under these Contracts
Initiatives for 2002

4. GETTING DOWN TO CONTRACT BASICS

5. CONTRACT basics 101 RFP#S960275-E Back-Drop Contracts
OGS PSG Continuous Recruitment Request For Proposal (RFP)
Each Vendor who meets the requirements of this RFP is awarded a Back-Drop Contract
Back-Drop Contracts
OGS PSG pre-qualified contractors eligible to bid on computer related services initiated by authorized users of State contracts
‘Master’ CMS nnn A Contract Number
Unique number assigned to each Contractor for the life of the firm’s Contract

6. CONTRACT Basics 101 Back-Drop Components Uniform Categories Terms &
Conditions
Categories
of Expertise
Not-To-Exceed
Contract
Rates
Types of
Services

7. CONTRACT basics 101 Back-Drop Contract Components
Uniform Terms & Conditions - No Exceptions!
Types of Services
Consulting - computer related services such as analysis, design, programming, etc.
Systems Integration (SI) - “total solution” including consulting services + product procurement (hardware, software, etc.), integration, customization, etc.
Training - computer related topics taught in a classroom, across a network, or at a workstation
Categories of Expertise
27 specific areas of knowledge in which Contractors have a “proven” past performance track record
Declaration of Expertise Matrix >

8. Declaration of Expertise Matrix
Application Development - MF, MR, PC
Systems Management - MF, MR, PC
Business Process Analysis/Re-Engineering
Computer Aided Drafting & Design
Data Conversion
Desktop Asset Management
E-Commerce/Electronic Data Interchange
Electronic Output Management
Geographic Information Systems (GIS)
Help Desk Services
Imaging Services
Information Security
Interactive Voice Response (IVR)
Application Development Services
Interactive Voice Response (IVR) Hosting Services
Internet/Intranet Application Services
IT Management & Planning
Local Area Network Services
Point of Sales (POS)
Technology Procurement
Telecommunications Services
Web Hosting Services
Workflow Management Services
Year 2000 Services (Y2K)

9. CONTRACT basics 101 Back-Drop Components - cont’d
 Contract Rates INclusive of ALL expenses
Consulting & SI Services: 12 Mandatory Job Titles/Classifications
NOT-TO-EXCEED HOURLY Rates
Project Managers: Entry Level, I, II, III
Programmer/Analysts: Entry Level, I, II, III
Specialists: Entry Level, I, II, III
Levels: minimum years of experience
 Entry Level = less than 2 years
 Level I = minimum of 2 years
 Level II = minimum of 4 years
 Level III = minimum of 8 years

10. CONTRACT basics 101 Back-Drop Components - cont’d
Training Services
Live/Instructor Led (ILT): not-to-exceed PER STUDENT Rates (1-5 day courses)
Computer Based (CBT), Video Based (VBT), Web Based (WBT), Interactive Web Based (IWBT): MINIMUM DISCOUNT - 5% from list at time of bid
Ancillary Job Titles/Classifications
Optional Job Titles/Classifications (per call rate, per page rate, transaction fee, monthly fee, roaming instructor rate, etc.)
 Contract Rates increased annually by lesser of CPI or 5%

11. GETTING DOWN TO PROJECT BASICS

12. Project Basics 101 Authorized Users Issuing Entity Vendor Contractor
NY State agencies, political subdivisions, localities, and others authorized by law to purchase from State contracts
Issuing Entity
Authorized user who initiates a project using these contracts
Vendor
Company interested in a contract with New York State
Contractor
Company that has been awarded a contract with New York State

13. Project Basics 101 Procurement Options
Purchase from any “responsible” vendor if cost is Less Than $15K (use best value, competitive quotes, & Purchase Orders)
Fast Track when Consulting only, less than 18 months, & hourly priced
Mini-Bid Discretionary Purchases when less than $50K
Mini-Bid Project Definition (PD) for Consulting or Systems Integration (SI) projects
Mini-Bid Request for Training Services (RTS) for ILT, CBT, VBT, WBT, & IWBT

14. Project basics 101 Control Agencies
Office for Technology (OFT)
Contact early in the process IF anticipated project cost $50K or more
Office of the State Comptroller (OSC)
POST Audit IF selected bid is less than $15K for State Agencies
 Selection = Award & work begins immediately
 Documentation sent to OSC ASAP
 PRE Audit IF selected bid is $15K or more for State
 Work begins upon OSC approval
2 - 4 weeks OSC turnaround time
 if Quick Contract Processing criteria satisfied, then business day turnaround

15. Project basics 101 Best Value
 Offer which optimizes quality, cost, efficiency
Technical Component/Non-Technical Components
Mandatory requirements
Qualifiers – Pass/Fail
Quantifiers (Measurable) – Points
Optional/Desirable requirements
Optional – Points
 Financial Component (70%:30%, 75%:25%, etc.)
 If Cost factor less than 25%, contact OSC prior to finalizing specs

16. PROJECT basics 101 Fixed Cap AC340 Contract Encumbrance Request Form
Methods of Payment based on the nature of the work
Hourly by job title/classification X # of hours = fixed cap
By Deliverable X $ amount of each deliverable = fixed cap
Other pricing schemes
 Per call, per page, per image, per month, transaction fee, etc.
Always within contract rates
AC340 Contract Encumbrance Request Form
Mechanism for paying for services
Batch type = TBV
Contractor’s contract number  CMSnnnB, CMSnnnC, CMSnnnD…….
*********** Never CMSnnnA!!!!! ***********
Never a Purchase Order !!

17. SAY WHAT YOU MEAN! RFP or PD or RTS ?
Issuing Entity prepares a Project Definition (PD) or Request for Training Services (RTS), never an RFP when using these contracts
Contract Award or Project Award ?
Back-Drop Contracts are awarded by OGS PSG
To Vendors who successfully meet the RFP requirements
Projects are awarded by Issuing Entities
To Back-Drop Contractors who successfully bid on projects
Project award letter, & copy of OSC approved Summary & Affidavit form confirms the commitment (no formal contract!)
Contract End Date or Project End Date ?
All Back-Drop Contracts expire on 12/31/05
Each Project’s end date is established in the individual project specifications

18. How Do I Know Which Procurement Option to use under these Back-Drop Contracts ?

19. Formal Mini-Bid Process
How Do I Know Which Procurement Option to use under these Back-Drop Contracts ?
Formal Mini-Bid Process

20. Formal Mini-Bid Process Discretionary Purchase
How Do I Know Which Procurement Option to use under these Back-Drop Contracts ?
Formal Mini-Bid Process
Discretionary Purchase

21. Formal Mini-Bid Process Discretionary Purchase Fast Track Procurement
How Do I Know Which Procurement Option to use under these Back-Drop Contracts ?
Formal Mini-Bid Process
Discretionary Purchase
Fast Track Procurement

22. Formal Mini-Bid Process

23. Is It a Formal Mini-Bid?? B FORMAL MINI-BID N Y Y N Project Commences
Immediately
Approved
FORMAL
MINI-BID
Notify Selectee(s) &
Non-Selectee(s):
OSC PRE-AUDIT
Notify Awardee(s) &
Non-Awardee(s):
OSC POST-AUDIT
>$50K N Y Y
Solicit ALL
Contractors
in Service &
Category/ies
>$15K
OFT
Prior
Approval
Best Value
Award(s) N

24. FORMAL Mini-Bid Process
Mini-Bid Guidelines
Consulting, Systems Integration (SI), or Training Services
Limited to 5 years**
No dollar limit
Sent to ALL eligible contractors for the Services and Category/ies of Expertise targeted in project specifications
2-12 Week Bid Response Time
Awarded Contractor(s) “guaranteed” work
**If beyond these limits, contact OSC for prior approval

25. FORMAL Mini-Bid Process - cont’d
Specifications Document
Guidelines & Templates Available Electronically
Download templates/guidelines before each new project
 Standardized language, forms, attachments within templates
Sample Best Value evaluation & selection procedures
Define Scope of Work
Project needs/wants
Current system/computer environment
Project expectations/responsibilities of all parties
Project start date & duration
Mandatory technical/non-technical criteria
Job titles/skillsets as they relate to back-drop contract
Desirable/optional criteria
Technical vs. Financial weights
Method of award
Single vs. multiple award (“up to nn awards”)
Best Value = quality + cost + efficiency

26. “TOTAL SOLUTION” Strategy Procurement of a “Total Solution” with SAME Contractor
Issuing Entity incorporates All Project Phases into PD
Platform determined (Oracle, PowerBuilder, etc.)
Phase 1 scope of work well defined
Subsequent phases described in general terms
 Best “estimate” for timeframe to complete each of the subsequent phases
Phase 1 firm bid
By Deliverable with fixed cap (preferred pricing method) or
Hourly with fixed cap
Bidders propose
Firm bid for Phase 1
 Time to complete Phase 1
For subsequent phases
 Levels of expertise/skillsets equated to contracted mandatory job title(s) or ancillary job title(s)
 Competitive hourly rates for each proposed expertise/skillset
 Total cost for the subsequent phase(s) based on Issuing Entity’s projected number of hours to complete subsequent phases

27. “TOTAL SOLUTION” Strategy - cont’d
Issuing Entity Evaluation
 Firm bid for Phase 1
 Projected hourly rates and skillsets for subsequent phase(s)
Selects “winner” and awards Phase 1 only
Last deliverable of each phase is contractor’s "firm" price for each subsequent phase
Contractor held to proposed hourly rates for subsequent phase(s) and total projected hours
Negotiate only the skillsets to complete the next phase and time
Accept or reject price & work plan at end of each subsequent phase
** OSC prior approval before each new phase begins
If rejected, Issuing Entity can solicit new bids for balance of project
During each phase, if scope changes
Justification to OSC if more than projected hours and dollars needed
OSC approval required before project can continue

28. “TOTAL SOLUTION” Strategy - cont’d Alternative “Best Practices” Approach
Issuing Entity Prepares PD for “Planning” (Analysis)
Phase 1 ONLY Describing:
 Current system
 General plan & direction
Winner of Phase 1
 May be precluded from bidding on remaining phases
Final Deliverable is results-based not platform-based
 Is eligible to bid on the Quality Assurance (QA)
Separate competitive procurement
Winner of QA Assists Issuing Entity
In preparation of requirements for the subsequent phases
In evaluation of proposals submitted
Oversees project’s direction and keeping it on track

29. Discretionary Purchases

30. Is It a Discretionary Purchase??1
Project Commences
Immediately
>
$50K
Fast Track or
Formal Mini-Bid Y A N
Notify Awardee(s) &
Non-Awardee(s):
OSC POST-AUDIT
SBE, MBE, WBE
Buy
Direct
Discretionary
Purchases Y N N
Best
Value
Award(s)
>$15K
Project Commences
AFTER OSC
Approval
3 or
more
bidders
Notify Selectee(s) &
Non-Selectee(s):
OSC PRE-AUDIT Y
Approved

31. Discretionary Purchases
Discretionary Purchases Guidelines
Consulting, Systems Integration (SI), and Training Services
Anticipated Cost for Consulting, SI, or Training is Less Than $50K
Solicit Mini-Bids within Services and Category/ies of Expertise targeted by Specifications
From a “Minimum of 3” Contractors OR
"Buy Direct" if Soliciting Bids from a New York State
SBE (Small Business Enterprise)** or
MBE (Certified Minority Owned Business Enterprise)** or
WBE (Certified Woman Owned Business Enterprise)**
**Identified on Web Site
Faxed or ed to Selected Contractor(s)
Group – Unique identifier in Subject field of header
Few Days to Two Weeks Bid Response Time

32. Discretionary Purchases – cont’d
Scope of Work/Specifications
Instructions & Forms Available Electronically
Download templates each time to assure most recent version
Sample Evaluation & Selection Procedures
Mandatory vs. Desirable Technical Criteria
Best Value Evaluation Method of Award
Scope Changes With Cost Increases
Scope Change Cost Cannot Bring Total Project Cost Greater than $50K
Requires justification to & approval by OSC

33. Fast Track Procurements

34. Is It a Fast Track?? > A N N Y Y N Y N Fast Track N Y Procurements
Notify Awardee(s) &
Non-Awardee(s):
OSC POST-AUDIT
Best
Value
Award(s)
>$15K N
Consulting
Services N Y
Project
Commences
Immediately Y
Solicit ALL
Contractors
in Service &
Category/ies
Notify Selectee(s) &
Non-Selectee(s):
OSC PRE-AUDIT
Approved
Hourly N Y N
>
18 Month
Fast Track
Procurements
>$50K N Y
OFT
Prior
Approval Y B

35. Fast Track Procurements – cont’d
Fast Track Guidelines
CONSULTING Services’ Category/ies of Expertise to Augment or Enhance the Issuing Entity's Staff
Assumes Multiple Awards Focused on Skillsets Required
HOURLY Rates
Limited to 18 Months per procurement
Mailed, Faxed, or ed to ALL eligible Consulting Contractors within the Category/ies Targeted by Fast Track Specifications
Group – Unique identifier in Subject field of header
Few Days to Two Weeks Bid Response Time
If procurement is for less than $50,000, use Discretionary Purchases Guidelines with the Fast Track Form

36. Fast Track Procurements – cont’d
Scope of Work/Specifications
Instructions & Forms Available Electronically
Download templates each time to assure most recent version
Sample Evaluation & Selection Procedures
Mandatory vs. Desirable Technical Criteria
Best Value Evaluation Method of Award
OSC Review & Approval
3-5 day turnaround for Fast Track Procurements
Scope Changes With Cost Increases
Requires justification to & approval by OSC

37. Quick Contract Processing OSC Quick Turnaround

38. Quick Contract Processing
Quick Contract Processing Components
Less than $300K
Competition encouraged
3 or more responsive & responsible bids received
Best Value Method of Award defined in specifications
No disqualifications, rejections, protests or objections
Forms completed & signed by authorized contracting agent
Certification Form
Procurement Record Checklist
Summary & Affidavit Form: 1 original+ 2 copies
AC340 prepared with batch type = QDA
OSC review in 3-5 business days
Can’t use if any direct purchases options (Discretionary, etc.)!

39. WRAPPING it up!

40. OGS PSG BACK-DROP CONTRACTS A G D IDEA !!
Contract Reporter Ad not required
Division of Budget (DOB) approval not required
Attorney General (AG) not required
Large pool of Contractors as of 3/25/02
Uniform & comprehensive terms and conditions
Contractors added continuously
“Emerging technologies” accommodated as necessary
Guidelines & templates available electronically
Consistency in format/standardized language
PSG assistance available
Web Site current with real time updates

41. Contract & Project information is just a click away
Visit us on the Web
Contract & Project information
is just a click away

42. Click on <Contracts & Purchasing Info.>

43. Click on <Contracts - Search or Browse>

44. Click on <Computer Consulting, Systems Integration (SI), Training , Ongoing Services, Maintenance & Support Contracts>

45. The Contract Award Notification Book Mark the "C A N” !

46. After Clicking on <Contractor List> (SBE, MBE, WBE identified)

47. After Clicking on <Contract Specifics >

48. After Clicking on <Contract Amendment Packet >

49. After clicking on <Pricing and Contractor Information>

50. After Clicking on <Download Guidelines/Instructions & All Templates>

51. After clicking on <Fast Track Procurements>

52. After clicking on <Mini-Bid Discretionary Purchases>

53. After clicking on <Mini-Bid Quick Contract Processing>

54. After clicking on <Contractor Performance Report>

55. After clicking on <Monthly Purchasing Memoranda>

56. After clicking on <Intent to Purchase Technology Notification Form: Download This Form>

57. After Clicking On <Frequently Asked Questions (FAQs)>

58. Looking Ahead 2002 targeted: third quarter
On-Going Services: synonymous with such phrases as
continuous, extended, “over a long period of time”, etc.
Application Service Providers (ASPs)
Document Management Services
Help Desk Call Support ……….
Maintenance & Support: synonymous with assistance,
help, prevention, etc. and addresses:
software applications
systems that are newly developed, and those that have already been in place and operational
hardware on which the software, programs, applications, and systems reside
 New category for Equipment Maintenance
Declaration of Expertise Matrix >

59. 2002 Declaration of Expertise Matrix
Application Development - MF, MR, PC
Systems Management - MF, MR, PC
Application Service Providers (ASPs)
Business Process Analysis/Re-Engineering
Computer Aided Drafting & Design
Data Conversion
Desktop Asset Management
E-Commerce/Electronic Data Interchange
Electronic Output Management
Document Management Services
Geographic Information Systems (GIS)
Help Desk Services
Call Centers
Imaging Services
Scanning & Indexing
Information Security
System Penetration & Disaster Recovery
Interactive Voice Response (IVR)
Application Development Services
Interactive Voice Response (IVR) Hosting Services
Internet/Intranet Application Services
IT Management & Planning
Local Area Network Services
Point of Sales (POS)
Technology Procurement
Telecommunications Services
Web Hosting Services
Workflow Management Services
Year 2000 Services (Y2K)
Equipment Maintenance
Mainframe
Mid range PC
Printers

60. Let OGS PSG be YOUR FINAL ANSWER.
PSG Contacts Sylvia Casper: Telephone # Fax # Rodney Luft: Telephone # Cheri McCullough: Telephone #
Let OGS PSG be
YOUR FINAL ANSWER.