1. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER Back to Basics Office of Operations 2013 Fall Conference November 6-7 New York State Office of the State Comptroller Thomas P. DiNapoli, Comptroller Office of Operations John Traylor, Executive Deputy Comptroller Division of Contracts and Expenditures Margaret Becker, Deputy Comptroller Charlotte Breeyear, Director, Bureau of Contracts Complex Issues in Invitation for Bid (Estimated Use Contracts) Bill Hughes

2. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 2 PART I Planning for Your Needs The What If Factors Developing the IFBs Method of Award The Award and the Contract Contract Monitoring

3. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 3 PLANNING FOR YOUR NEEDS Historical information such as previous maintenance agreement costs Quantity of each different piece of equipment, parts, labor and material costs Age of equipment, and maintenance program Labor rates, raw material pricing, or changes in general or specific market indexes, etc. Market volatility

4. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 4 THE WHAT IF FACTORS Consider including in your budget a reasonable cushion for unexpected event(s) Consider option items not previously included

5. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 5 DEVELOPING THE METHOD OF AWARD Quantify needs into the bid document and develop a Method of Award (MOA) upon which all bidders will be evaluated Ensure that all bidders have a true understanding of: What they are bidding on How they are bidding All bidders prices must be compared fairly and equally

6. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 6 THE AWARD AND THE CONTRACT Create a not to exceed contract The contract amount reflects your best cost estimate of your assessed needs for the contract term

7. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 7 CONTRACT MONITORING Agencies need to not only monitor their contracts in terms of contract deliverables, but also to monitor expenditures The Office of the State Comptrollers Guide to Financial Operations XI.2.H.on Multi-Year Contract Renewals http://www.osc.state.ny.us/agencies/guide/MyWebHelp/

8. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 8 PART II – DEVELOPING A WORKABLE METHOD OF AWARD Background Manufacturers Preventive Maintenance Narrative Repair Labor Rates Replacement Parts and Materials Option Items - Manufacturer's Preventive Maintenance Weighted Evaluation Methodology Cushioning for That Unexpected Event

9. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 9 PART II – HANDOUT AND TEMPLATE EXAMPLE Refer to the Method of Award Handout and Template Example

10. STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 10 QUESTIONS Questions