1. Public School Capital Outlay Council
Construction Procurement & Contracting
Public School Facilities Authority
(PSFA – Formerly DC Unit)
Spring Budget Workshop Presentation
Dotty McKinney, CPPB
Paul Garcia, Trainer
Jeffrey Eaton, Controller
April 8, 2005
Public School Facilities Authority
2019 Galisteo, Suite B-1
Santa Fe, NM
Phone: (505) Ext. 108
Fax: (505)

2. Presentation Overview
Joint Powers Agreement (JPA)
Project Agreement/Memorandum of Understanding (PA/MOU)
PSFA Standard Contracts
Contracting Methods & the Procurement Code
Dollar Thresholds
Other Methods
Request for Proposals (RFP)
PTAB – Professional Technical Advisory Board
Invitation to Bid (ITB)/ Bid Award Procedures
BIDNET

3. Joint Powers Agreement (JPA)
District and PSFA Deficiencies Correction Program (DCP) , formerly the Deficiencies Correction Unit (DCU) sign a JPA before PSFA (DCP) work begins in district.
District empowered to enter into contracts for construction & repair of school property.
District designates a District Representative (DR) as a single point of contact for the district and the PSFA (DCP).
PSFA (DCP) empowered to validate & oversee all aspects of contracts and provide oversight & management of construction correcting outstanding deficiencies and 2004/2005 PSCOC awarded projects.
District serves as “owner” and central purchasing agent for all PSFA (DCP) work.
PSFA (DCP) serves as “co-owner” and is responsible for approval and payment of all completed work.

4. Joint Powers Agreement (JPA)
New Standards Based Capital Outlay Process to be set up using the DCP model
PSFA is the FISCAL agent for 2004/2005 Capital Outlay projects as well as DCP projects

5. Project Agreement/Memorandum of Understanding (PA/MOU)
PROJECT AGREEMENT (PA)
Outlines scope of work & schedules, collaboratively agreed to by PSFA (DCP) Regional Manager and District Representative.
Forms basis for formal Memorandum of Understanding to be presented to PSCOC for approval.
MEMORANDUM OF UNDERSTANDING (MOU)
Valid MOU requires 3 signatures: DR, PSFA Director, PSCOC Chair.
Until received by PSFA, PSFA shall not enter into contracts or participate financially in any school construction project.
The WHO, WHAT, WHERE, HOW & HOW MUCH

6. The PSFA Process: New Contracts
If any portion of the work is funded by PSFA (DCP), the district will use PSFA standard contracts.
QUESTION:
If the work is funded by sources other than PSFA (DCP) and/or 2004/2005 PSCOC awarded projects, will the District use PSFA contracts?
ANSWER:
No. – But we strongly encourage you to use PSFA standardized contracts. They are becoming widely accepted, they empower the owner and they require more responsibility of the design professional and contractor you may currently be using.

7. New PSFA Contract Requirements
Currently working with Version 1.3 of Design Professional and Construction Contracts
Version 2.0 – Draft of Synopsis of changes to be released
Review of Design Professional Agreement and Attachments
Review of Construction Agreement and Attachments

8. New PSFA Contract Requirements
DESIGN PROFESSIONAL (DP) AGREEMENTS
PSFA transmittal letter
PSFA portion of work clearly defined
Scope of work/MACC (exclusive of GRT)
Contains language the PSFA portion of work will be paid directly by PSFA (optional)
Certificate of Insurance
Exhibits
If Approved by PSFA, Contract Approval letter and PO issued by PSFA
No PSFA work is authorized without PSFA Contract
Approval AND a PO issued by PSFA for the work.

9. New PSFA Contracts Requirements
CONSTRUCTION CONTRACTS
PSFA portion of work clearly defined
Contains language the PSFA portion of work will be paid directly by PSFA
REQUIRED DOCUMENTS:
PSFA transmittal letter
Certificates of Insurance
Bonds
Bid Abstract (Bid Tabulation, Low Bid & Bid Bond)
Schedule of Values
State W-9 form
Approved by PSFA (Contract Approval Letter)
Upon Approval, a Purchase Order (PO) is issued by PSFA
No PSFA work is authorized without PSFA Contract Approval AND a PO issued by PSFA for the work.

10. Contracting Methods & Procurement Code
PUBLIC WORKS PROJECTS
Public Works Projects require RFP Selection Process for Design Professionals.
DESIGN PROFESSIONAL SERVICES
Determined a public works project when design fees of $25,000 or greater for Architects and Engineers, and $5,000 for Landscape Architects, and Surveyors
CONSTRUCTION AND MATERIALS PURCHASES
Per limits set in local public body’s Board Policy, pursuant to NMSA 1978 of the Procurement Code. If no policy exists, then District must adhere to the limits set in NMSA for Small Purchases and NMAC Regulations.
NOTE: Wage rates are required for work in excess of
$20,000 ($60,000).

11. Dollar Thresholds DP CONTRACT THRESHOLDS
QUESTION: What about Design Professional contracts that are less than $25,000 in fees and reimbursables, if applicable, but exclusive of GRT? Do I need to go out to RFP?
ANSWER: No. Because the Design Professional fees and any applicable reimbursables, but exclusive of GRT is less than $25,000, it is not a public works project and therefore the RFP process of procurement is not required.

12. Dollar Thresholds DP CONTRACT THRESHOLDS
QUESTION: If the contract is for $25,000 or less and doesn’t require a RFP, do I need the other documents?
ANSWER: Yes. All new contracts for DP services for PSFA (DCP) or PSCOC work still require the following items:
DCP or PSCOC portion of work clearly defined
Certificate of Insurance
Contains language the DCP or PSCOC portion of work will be paid directly by PSFA (if required as part of future PSCOC award – certification training)

13. Dollar Thresholds CONSTRUCTION CONTRACT THRESHOLDS
QUESTION: What about construction or materials contracts that are for $5,000 ($10,000) or less? Do I need to go out to bid?
ANSWER: If the work or materials is for more that $1,500 ($5,000), but less than $5,000 ($10,000) (or limits allowed by Board Policy) the district should obtain 3 quotes from 3 vendors. If the work or materials is less than $1,500, three quotes are not required. Depending on the type of work or materials sought, the other documents, (certificates of insurance, bonds, bid abstract & schedule of values) may still be required.

14. Other Procurement Methods
PRICE AGREEMENTS
Price Agreements are contracts entered into via an IFB or RFP Selection Process.
May be used for Services or Construction and Materials Purchases.
Advantages to using are set pricing and agreements may be transferred to other districts for use if vendor and district agree to such.
CAUTION:
DP SERVICES PRICE AGREEMENTS MUST HAVE VERY WELL DEFINED SCOPES OF WORK. THEREFORE, THEY GENERALLY ARE NOT TRANSFERABLE TO OTHER DISTRICTS FOR PURPOSES OF AVOIDING THE RFP PROCESS.

15. Request for Proposals (RFP)
DISTRICT REQUEST FOR PROPOSALS
Required for public works projects.
Procedural requirements for RFP’s outlined in State Procurement Code.
QUESTION:
The District is it’s own “Purchasing Agent”. Does the State Procurement Code apply to us?
ANSWER:
A local public body is exempt from the State Purchasing Division, but not the Procurement Code, despite some belief to the contrary. ALL DISTRICTS must comply with the requirements of the State Procurement Code when seeking work, materials or services on behalf of the school district. The only exception is the District’s ability, as a local public body, to write their own regulations for small purchases for tangible goods, services, and construction per NMSA Limits set may be less than those defined in the Procurement Code, but cannot be more than the limits set in the Code.

16. P T A B Professional Technical Advisory Board
NMSA – Required by Statute since 1979.
Purpose: To provide professional technical advisory services to local public bodies in the development of Scope of Work, RFP, ad the selection of professional services of architects, engineers, landscape architects and surveyor through the use of the “qualifications based selection process”.

17. P T A B Professional Technical Advisory Board P. O. Box 3773
Albuquerque, NM
Phone:
Fax:

18. Invitation to Bid (ITB)
INVITATION TO BID & BID AWARD PROCEDURES
QUESTION: The lowest bid received by the District exceeds the budgeted funds. Can the District negotiate with the low bidder?
ANSWER: Yes. As long as the lowest responsible bid is within 10% of the budgeted funds. Negotiation can only occur in order to lower the overall price in order to avoid rejection of all bids. The scope of work or other conditions can NOT be changed.

19. As if that weren’t enough!
PAYMENT/INVOICE PROCESS
Construction
- Invoice to be submitted by 25th of the month to DP
- Must be forwarded to the RM by the 8th of the month
- Payment will be made within 21 days

20. Non-Competitive Procurements
DETERMINATION – Required!
*Sole Source – NMSA
*Emergency – NMSA
*Request for Proposal – NMSA
OTHER TYPES OF PROCUREMENT
*Existing Contracts – NMSA
*GSA/State Price Agreements
*Local Public Bodies/CES

21. PSFA Responsibilities
PSFA PROCUREMENT TRAINING PROGRAMS
*Overview of the Procurement Code
*Invitation to Bid Process & Specifications
*Request for Proposal Process
*Use of PSFA DP & Construction Contracts
CERTIFICATE OF COMPLETION
*On Line Instruction & Testing
*District Participates in Oversight of Projects
NMPPA
New Mexico Public Procurement Association
NIGP
National Institute of Governmental Purchasers

22. BIDNET New Mexico E-Procurement System –
Formerly the Chavez County Purchasing System
E-Procurement System created in conjunction with a company called BIDNET
All Users & Vendors need to register with BIDNET
48 Hrs to set up account, PSFA provides training
SAVE TIME AND MONEY – streamline the entire bidding process (free for district, PSFA and contractors)!
Provide Users/Vendors more bid information and bidding opportunities - obtain the best price!

23. BIDNET GENERAL CONDITIONS PSFA Design Professional Contract - Ver. 2.0
SECTION BIDDING PHASE
2.5.1
*DP shall assist Owner in obtaining bids & preparing contracts
for construction
*District responsible for costs related to legal notice & initial
advertising of project to bid
2.5.2
*DP prepares Invitation to Bid – including bid date, location and
time of bid opening
*Cannot advertise project until PSFA Approval of School
Construction is obtained!

24. BIDNET
The Design Professional shall assist the Owner with local advertisement and shall concurrently load digitally, in accordance with para. 9.1 and 11.3 project description to the PSFA public bid advertisement website and construction documents into the PSFA Construction Information Management System (CIMS). PSFA will train & assist DP as appropriate to fulfull these requirements.

25. CONTACT – User Account Setup:
BIDNET
CONTACT – User Account Setup:
Paul Garcia, Trainer
Phone: ABQ
Fax:

26. Public School Facilities Authority
Construction Procurement &
Contracting
Questions &
Comments