1. every student. every classroom. every day. Professional Services Contracts Overview and Current Processes

2. 2 every student. every classroom. every day. Presentation Overview Today we will explore: Definition of professional services contract Four main types of contracts Eight steps to enter a standard professional services contract

3. 3 every student. every classroom. every day. Definition A Professional Services Contract is a formal agreement between the District and an individual or agency. Contracts are used to purchase a service (as opposed to a tangible good) from an external service provider.

4. 4 every student. every classroom. every day. Basic Statistics Year to Date Data (7/1/08-3/2/09) Number of contracts1158 Dollar value$43,053,220 Number of originators~180

5. 5 every student. every classroom. every day. Funding Resource Data from IFAS 7/1/08 - 3/2/09

6. 6 every student. every classroom. every day. Types of Contracts There are four distinct types of contracts, each with a different approval process. 1.Standard Professional Services Contract: Used for almost 90% of all contracts and focus for today. 2.Facilities Contract 3.After School Lead Agency MOU 4.Programs for Exceptional Children Non-Public Schools and Agencies Master Contract

7. 7 every student. every classroom. every day. Overview of Contracts Process

8. 8 every student. every classroom. every day. 1. Need Identified A principal or manager identifies a need for a consultant service. In general this need should be either: 1.Time Limited Project (not ongoing work) 2.Work Requiring Specialized Skill Set (such as dance instructor in after school program)

9. 9 every student. every classroom. every day. 2. Contractor is Selected Contractors are selected by the principal or manager originating the contract. List of Preferred Vendors Instructional Services maintains a list of recommended vendors with information about their services on the intranet.

10. 10 every student. every classroom. every day. 3. Negotiation The principal or manager negotiates directly with the contractor. Together they agree on: 1.Scope of Work – Cannot overlap with bargaining unit work. 2.Dates of Service – Work cannot begin until after contract is approved and most contracts cannot span multiple fiscal years. 3.Hourly Rate of Pay – Must be within OUSD Billing Rate Guidelines.

11. 11 every student. every classroom. every day. 4. Generation of Contract The principal or manager (or typically their support staff) uses contract template to create the contract. The template is a PDF form found on the intranet. In February a new version of the template that could be saved was made available. The packet includes: – Board Memo – Approval Routing Form – Formal, legal contract – Place to identify funds and requisition that reserves budget

12. 12 every student. every classroom. every day. Generation of Contract Cont. The contract packet requires four attachments: AttachmentDescription 1Proof of InsuranceAll agencies must provide proof of general liability and workers compensation insurance. Independent consultants with contracts over $50,000 must provide proof of general liability insurance. 2Proof of Background Clearance Agencies must provide list of employees working on site with fingerprint clearance date. Independent consultants must complete the HRSS Pre-Consultant Screening Process, which includes fingerprinting. 3Statement of QualificationsResume or work history. 4Proof of Negative TB StatusAgencies certify that this documentation is on file for staff. Independent consultants provide documentation from their health care provider.

13. 13 every student. every classroom. every day. 5. Approval Process Please refer to handout Contract Approval Timeline Contracts Requiring Board Approval: 6 weeks* Contracts Eligible for Board Ratification: 3 weeks* *Plus one week for processing time to issue PO.

14. 14 every student. every classroom. every day. 6. Purchase Order Issued Last check of requirements (fingerprint, insurance, etc.) Generate PO in IFAS Notify principal or manager via email Send letter to consultant After the contract is approved, Procurement processes the purchase order (PO):

15. 15 every student. every classroom. every day. 7. Work Performed Performance is monitored by the principal or manager. Consultants can be released at any time.

16. 16 every student. every classroom. every day. 8. Invoice Submitted and Payment Made 1.Invoice Submitted: Consultants submit their invoice to the principal or manager. 2.Work Verified: The principal or manager signs the invoice indicating the work was performed and forwards the invoice to Accounts Payable (often the consultant drops invoice off at Accounts Payable). 3.Invoice Paid: Accounts Payable pays the invoice using the funds in the PO. Invoices are paid twice a month, according to the AP calendar.

17. 17 every student. every classroom. every day. Variations to Contract Process There are three types of services that require a different contract template and approval process: 1.After School Lead Agency MOU 2.Programs for Exceptional Children Non- Public School (NPS) and Non-Public Agency (NPA) 3.Facilities

18. 18 every student. every classroom. every day. After School Lead Agency MOU Service: After School Lead Agencies administer after school programs at partner sites. Reason for Variation: The nature of this service requires additional terms in the Memorandum of Understanding, such as Field Trip policy and attendance taking procedures.

19. 19 every student. every classroom. every day. Programs for Exceptional Children NPS and NPA Master Contracts Service: NPS’s and NPA’s provide services to students with exceptional needs that cannot be met through District Programs. Reason for Variation: OUSD is part of a nine district consortium that uses the same contract, master contract structure and negotiated rates.

20. 20 every student. every classroom. every day. Facilities Contracts Services: Non-construction facilities related services, such as architects. Reason for Variation: Requirements for vendors are slightly different. Facilities also has a different structure than other departments and is able to streamline the generation of contracts.

21. 21 every student. every classroom. every day. Questions? The next presentation will explore the contract process improvement project, including: – Changes to the process made this year – Current pain points – Planned improvements in 2009-2010