1. Statewide Financial System 1 CN210 Contracts and Amendments

2. Statewide Financial System 2 Contract Roles

3. Statewide Financial System 3 Agency Contract Processor  Agency Contract Processor The Agency Contract Processor enters contract information into SFS that will be used to create and manage purchases and purchase orders. The Agency Contract Processor role will perform the following tasks in SFS:  Create a Contract  Enter a Contract Amendment  Change Contract Status to ‘Pending OSC Approval’  View Contract Information  View Non-Confidential Vendor Information  Look Up Vendor by TIN

4. Statewide Financial System 4 Agency Buyer Manager  Agency Buyer Manager (Approver) The Agency Buyer Manager (Approver) reviews contract information entered into SFS that will be used to create and manage purchases and purchase orders. The Agency Buyer Manager (Approver) role performs the following tasks in SFS:  Reviews the contract  Changes the Contract Status to “Pending OSC Approval”

5. Statewide Financial System 5 Contract ID and Contract Prefixes/Types

6. Statewide Financial System 6 Contract ID A Contract ID is assigned to each contract by state Agencies; this ID aids in identifying the contract. In SFS, the Contract ID is displayed on the Contract tab just above the Header section of the page.

7. Statewide Financial System 7 Contract ID Naming Convention The Contract ID Naming Convention is BBBBB-NNNNNNNNNN- DDDDDDD.  BBBBB – a five-character valid Business Unit (BU).  NNNNNNNNNN – a one-to-ten alpha numeric contract ID. This section of the ID contains the Contract Prefix.  DDDDDDD – a seven-character valid Department ID.

8. Statewide Financial System 8 Contract Prefixes (1 of 4) PrefixCategoryDescription CMiscellaneous Service, Consultant or Grant A contract for services or consulting (except architect and engineering services, which start with D, or a grant award (except for Community Projects funded legislative initiatives which start with M). CCCorporate Contract for Miscellaneous Service or Consultant for Multiple Agency Use A contract for services or consulting awarded with the intention that multiple state agencies will use it through a purchase order (PO) against the awarding agency’s contract. CMMulti-Agency Contract for Miscellaneous Service or Consultant A contract for services, including consulting, that is available for use by more than one state agency where each individual agency establishes a separate contract under its Business Unit (BU)/Department ID. A contract category can be defined by its prefix. A table listing acceptable prefixes, associated categories and descriptions is displayed below.

9. Statewide Financial System 9 Contract Prefixes (2 of 4) PrefixContractDescription DConstruction-Related Contract A contract for construction-related work, including building construction, highway construction, architectural, engineering, and other construction-related services. FRepayment to StateAn agreement outlining a specific payment schedule for the repayment of funds by entities that either have been advanced funds by the State or must otherwise satisfy outstanding debt. KTransportation GrantA transportation-related grant award made by the Department of Transportation. LLeaseA contract to lease property by a State entity. Leases of State-owned property begin with an L prefix and end with an R suffix. LMMulti-Agency LeaseA lease contract that covers more than one State agency space needs.

10. Statewide Financial System 10 Contract Prefixes (3 of 4) PrefixTitleDescription MLegislative InitiativeA contract, commonly referred to as a member initiative, awarded by the Legislature and funded through the Community Projects Fund. POffices of General Services (OGS) Purchase Contract A contract for commodities or services negotiated by OGS that can be used by State Agencies or other users authorized by law. This includes PT prefix for technology contracts, PS for service contracts, and PC for commodity contracts. PAPurchase AuthorizationA contract entered into by a State Agency which allows the purchase of commodities on an as- needed basis. SConsultant for Miscellaneous Service – Individual A contract under which an individual or sole proprietor is hired to provide professional knowledge, skills, or expertise.

11. Statewide Financial System 11 Contract Prefixes (4 of 4) PrefixTitleDescription TContracts not subject to OSC Approval A contract where the amount of the contract is below the threshold that requires approval by OSC. TMContracts not subject to OSC Approval A legislative initiative that is below the OSC prior approval level is assigned a TM prefix. WLand PurchaseA contract for the purchase of property by New York State. XRevenueA contract that generates income for the State or where the State agrees to give consideration other than payment of money.

12. Statewide Financial System 12 Contract Types New York State Master Contract  A Master Contract, currently referred to as a Centralized Contract is created by the Office of General Service (OGS) only, but POs from other agencies may be created against it using your Agency ‘Business Unit’.  OGS contracts receive prior approval from the Office of the State Comptroller (OSC). Once OSC has completed the pre-approval process and approved each contract, they are posted on the OGS website for use by all eligible entities.  Most OGS contracts can be used to make direct purchases, with the exception of the back-drop contracts (which are clearly labeled as such).

13. Statewide Financial System 13 Contract Types  Only OGS will have access to create a Master Contract. Agencies will be able to associate POs to a Master Contract.

14. Statewide Financial System 14 Creating a Contract Key Points

15. Statewide Financial System 15 Creating a Contract – Key Points  Key points to remember: Validate the vendor before creating a contract Creating contracts is a two-step process 1.A contract is created in SFS. 2.A Purchase Order (PO) is created in SFS to associate to the Contract and encumber the funds. This will be further discussed later in the presentation.  OSC Bureau of Contracts (BOC) changes the status of the contract transaction to “Requested PO” to indicate that the agency should associate a purchase order to the contract. NOTE: Contracts requiring OSC approval are not approved at the contract level in SFS, but rather at the PO level in SFS.

16. Statewide Financial System 16 Creating a Contract – Key Points Creating contracts and encumbrances is a two step process. A contract must be established before an encumbrance may be created against it through a purchase order. Contract is created Encumbrance through purchase order

17. Statewide Financial System 17 Creating a Contract – Key Points (continued) Procurement Contract, Corporate Contract check box  When the Corporate Contract checkbox is selected, any BU may pay off the contract unless specific business units are defined on the PO Defaults page.  If agencies are using a contract for their own BU, the Corporate Contract checkbox is to be unselected.

18. Statewide Financial System 18 Corporate Contract checkbox  Be sure to uncheck the Corporate Contract checkbox so other agencies don’t associate POs with your contracts.

19. Statewide Financial System 19 Creating a Contract – Key Points (continued)  There is no agency level workflow in the SFS for managing contracts.  It will be necessary for the Contract Processor to save the contract and change the status to ‘Pending OSC Approval’. The system will create the amendment sequence 000.  For contracts requiring OSC approval, the contract will enter the BOC contract approval process. For contracts that do not require OSC approval, the agency will change the status to ‘Requested PO’.  Agencies can track the status of a contract being processed by OSC by inquiring on the contract in SFS.

20. Statewide Financial System 20 Creating a Contract – Key Points (continued)  If the contract requires OSC review and approval, save the contract with the status of Pending OSC Approval.  No further edits may be made when the contract is in the status of ‘Pending OSC Approval’.  Once the agency approves the contract, the contract is saved as pending OSC.  Under Order Contract Options remember the following: Uncheck the Allow Multi Currency PO option Check Corporate Contract if the contract will be used by multiple business units Check the Allow Open Items Reference Option Check Price can be Changed on Order only if quantity or dollar amount changes will be allowed to be made later on the PO

21. Statewide Financial System 21 Creating a Contract – Key Points (continued)  Allow Open Item Reference checkbox – Be sure this box is checked to allow freight costs, for example, to be charged.  Price Can Be Changed on Order checkbox – If this box remains unchecked, the contract can only be changed by quantity and not amount. Be sure to check this box so amount can change if necessary.

22. Statewide Financial System 22 Single Transaction Summary (STS) Report

23. Statewide Financial System 23 STS Report If a contract requires OSC approval the agency must generate and send to OSC BOC a Single Transaction Summary (STS) Report. The DRAFT Guide to Financial Operations, Chapter 11.4.B, Pg. 64 provides directions on how to complete this form: http://www.osc.state.ny.us/agencies/draft_manual_new/chapter_11. pdf#page=2 Navigation to generate the STS in SFS:  Navigate to Purchasing > Procurement Contracts > Amendments  Enter the search criteria information and click the Search button  Under ‘details’ there is a link at the right entitled “Generate Summary Report” – this will produce the STS

24. Statewide Financial System 24 STS Report (continued)

25. Statewide Financial System 25 STS Report (continued)

26. Statewide Financial System 26 Contract Amendments

27. Statewide Financial System 27 Creating a Contract Amendment Key Points  An Amendment cannot be created in SFS until the original Contract is approved (sequence 000).  As with a Contract, if OSC approval is required, the agency will print the STS and submit to OSC.

28. Statewide Financial System 28 Creating a PO to Associate to a Contract Key Points

29. Statewide Financial System 29 Creating a PO to Associate to a Contract Key Points  A contract must be established and have a status of “Requested PO” before a PO can be created against it.  Funds are encumbered in the SFS on the Purchase Order – not the contract.  Be certain to match the vendor on the PO to the vendor on the contract.  The PO Type determines the approval route of the Purchase Order. The initial PO Type for the PO should be the same as the contract. Subsequent PO Types can be different (ECC).  A Department must be entered in the Department Field for reporting purposes.  When associating a PO to a contract it is necessary to enter both the contract ID (on the Contract tab) and the sequence number (using the Contract Details link)

30. Statewide Financial System 30 Creating a PO to Associate to a Contract Key Points (continued)  The PO Default page must be used. Click the PO Default link to validate the business unit used for the contract. Then click the OK button. This will save the contract to allow POs to be created and associated to the contract.

31. Statewide Financial System 31 Key Points to Emphasize

32. Statewide Financial System 32 Canceling a PO – Key Points

33. Statewide Financial System 33 Key Points – Contract Lines  Contract lines are not recommended. Lines should only be added to POs. Refer to PO220 for more details on POs.

34. Statewide Financial System 34 Key Points – Item Catalog

35. Statewide Financial System 35 Key Points – Contracts PO Defaults link

36. Statewide Financial System 36 Key Points – Contract Inquiry

37. Statewide Financial System 37 Resources  Contracts information on the OGS website: http://www.ogs.ny.gov/purchase/pdfdocument/Guide.pdf. http://www.ogs.ny.gov/purchase/pdfdocument/Guide.pdf  OGS contract information is available electronically. Anyone can sign up for the online purchaser notification service (PNS), located on the OGS website at www.ogs.state.ny.us/PNS/default.asp.www.ogs.state.ny.us/PNS/default.asp  Coming Soon: Look for new Contracts and Amendments training materials at: http://www.sfs.ny.gov/training/trainingCourses.htm.http://www.sfs.ny.gov/training/trainingCourses.htm

38. Statewide Financial System 38 Your participation is important to the success of SFS!