1. OGS Procurement Services Group 2006 State Purchasing Forum Vendor Responsibility OGS Approach and Learning Lessons

2. 2006 Purchasing Forum – Vendor Responsibility Presenter’s Contact Information Noreen VanDoren Legal Services Office Office of General Services n.vandoren@ogs.state.ny.us (518) 474-5607 Monica Wilkes Procurement Services Group Office of General Services monica.wilkes@ogs.state.ny.us (518) 473-4393 OGS Website: www.ogs.state.ny.us

3. 2006 Purchasing Forum – Vendor Responsibility Standardized forms for the Procurement Council, OGS (and OGS hosted agencies), and Council of Contracting Agencies: SVRQ (Standard Vendor Responsibility Questionnaire) or Certificate of No Change and previous questionnaire - OR - UCQ (Uniform Contracting Questionnaire) Checklist Profile Approach

4. 2006 Purchasing Forum – Vendor Responsibility Created the Visiflow Vendor Responsibility System, a centralized document management system Stores all VR questionnaires, profiles, checklists and determinations for agency in electronic database Shared with OSC Visiflow

5. 2006 Purchasing Forum – Vendor Responsibility How to assess Vendor Responsibility (VR)? Do they meet the four VR criteria? (Acronymn - FLIP) -Financial Ability (F) -Legal Authority (L) -Integrity (I) -Past Performance (P) Vendor Responsibility

6. 2006 Purchasing Forum – Vendor Responsibility Checklist completion: Discriminatory Jurisdiction check AK, HI, LA, SC, WV, WY Completed (SVRQ) or (UCQ) Review responses which require further inquiry Responsibility Review Process

7. 2006 Purchasing Forum – Vendor Responsibility NYS Web Sites NYS Department of Labor (DOL) debarred list for prevailing wage violations http://www.labor.state.ny.us/workerprotection/publicwork/PDFs/debarred.pdf NYS Department of State (DOS), Division of Corporations - confirm NYS corporation registration with DOS http://appsext5.dos.state.ny.us/corp_public/corpsearch.entity_search_entry DOS – confirm vendor has no NYS tax liens http://appsext4.dos.state.ny.us/stwarrants_public/st_search DOS – UCC listings to confirm that Vendor has no federal tax liens http://appsext4.dos.state.ny.us/pls/ucc_public/web_search.main_frame

8. 2006 Purchasing Forum – Vendor Responsibility Federal Web Sites General Services Administration (federal excluded parties list system) http://epls.gov US Department of Labor for OSHA violations (Occupational Safety and Health Administration ) http://www.osha.gov/pls/imis/establishment.html Securities Exchange Commission (SEC) for publicly held companies http://www.sec.gov/edgar/searchedgar/webusers.htm Department of Justice http://www.usdoj.gov

9. 2006 Purchasing Forum – Vendor Responsibility Internet Searches Google - Advanced Search using key words: –Fines, penalties, fraud, investigation, indictments, accounting practices, etc. Lexis/Nexis ($) – Company Analyzer Accurint ($) Vendex

10. 2006 Purchasing Forum – Vendor Responsibility Advise vendor where there are concerns - Regular or e-mail request for additional documents and further written explanation and details within reasonable time If sufficient additional information provided, proceed with responsibility determination If still have concerns, send formal invitation to responsibility meeting Prepare minutes of meeting and include in procurement record Due Process

11. 2006 Purchasing Forum – Vendor Responsibility Review Process Use Critical Judgment Consider information disclosed Question responses from global company with no issues on SVRQ Question responses from construction or waste company that don’t have DEC or OSHA violations Question if responses don’t appear to make sense Ask vendor to explain why not disclosed

12. 2006 Purchasing Forum – Vendor Responsibility VR must be considered on the basis of the contract under consideration Consider whether all contractors in this industry, if questioned, would have the same issues Must allow due process – opportunity to be heard Do not make final determination until after meeting Decision must be made in the best interests of the State Each Contract is Unique

13. 2006 Purchasing Forum – Vendor Responsibility Every contract is unique Extent of review depends on contract value and whether contract is high profile, critical, etc. Different levels of review may be necessary Use best judgment; don’t work in a vacuum Review Process

14. 2006 Purchasing Forum – Vendor Responsibility Responsive VS. Responsible Vendors found non-responsible must acknowledge such determination on every responsibility questionnaire they complete. Vendors found non-responsive do not meet the technical terms and conditions. Non-responsibility determinations have far greater adverse consequences for vendors.

15. 2006 Purchasing Forum – Vendor Responsibility Options: Request a report from Dun & Bradstreet ($) Require D&B or financial records directly from company Use internal resources (legal, financial, administrative) Review records by agency finance unit for financial determination Financial Responsibility

16. 2006 Purchasing Forum – Vendor Responsibility Company Y bid on numerous asphalt contracts Award recommendations sent to OSC DOL withholding statements reported to agency DOL said cannot be basis for non-responsibility OGS obtained written confirmation of financial capacity to perform Financial Example

17. 2006 Purchasing Forum – Vendor Responsibility Financial Example Furniture contract extension D&B reported numerous unsatisfied tax liens from other states Questioned financial ability and integrity Contractor provided proof of satisfaction New office manager Agency considered past performance Contract extended 12 months

18. 2006 Purchasing Forum – Vendor Responsibility Legal Authority Options: Check with DOS for NYS registration Obtain current certificate of good standing from jurisdiction where formed Obtain copy of Certificate of Incorporation Obtain copy of Certificate of signing authority signed by the corporation secretary and approved by board of directors.

19. 2006 Purchasing Forum – Vendor Responsibility Legal Authority Example Paging Company: press release of merger OGS sought assignment of contract Doing business as new company name DOS licensing requirements NYS corporations and LLCs must be registered in NYS with DOS. Out of state corporations - current certificate of good standing within their state. Assumed name certificate filed with DOS

20. 2006 Purchasing Forum – Vendor Responsibility Integrity Options: Review Dun & Bradstreet report Conduct Internet Search (news articles) LexisNexis Company Analyzer search Reports from other agencies, states or municipalities Contact State Inspector General (SIG) for state employee concerns

21. 2006 Purchasing Forum – Vendor Responsibility Integrity Example IT Consulting contractor Received “too good to be true offer” Bid Rigging Once is enough

22. 2006 Purchasing Forum – Vendor Responsibility Temporary Services contract – unlicensed nurses Moving Services contract – submission of altered certified payroll records Body Armor contract – degradation of material over time Floor covering contractor – manager in prior company failed to fund pension plan and worked deal with the US Attorney’s office Integrity Examples

23. 2006 Purchasing Forum – Vendor Responsibility Past Performance Options: NYC Vendex System Prior contract history with your agency Prior contract history with other governmental agencies News articles Internet searches Public records

24. 2006 Purchasing Forum – Vendor Responsibility IT Services Consulting Contractor Commenced lawsuits in 4 other states for non- payment on government contracts Counter claims by states Confidential settlements paid by Company No past performance history within NYS Rubbish Removal Contractors Numerous OSHA violations, parking and traffic tickets Minimal DEC violations for landfill issues History of past performance considered Past Performance Examples

25. 2006 Purchasing Forum – Vendor Responsibility What effect would contract award have on NYS? If award were made to low bidder? If award were not made to low bidder? If award were made to low bidder with requirement for vendor to meet performance measures to ensure continued ability to perform under contract? If award were made to low bidder with ability to terminate? If award were made to low bidder providing a surety bond? Making a Determination

26. 2006 Purchasing Forum – Vendor Responsibility Choices Reject the bid Award the bid Consider the risk for NYS with respect to the contract in question Award with contingencies Suspend current contract until issue resolved Ensure Due Process has been provided

27. 2006 Purchasing Forum – Vendor Responsibility Questions and Answers ?

28. 2006 Purchasing Forum – Vendor Responsibility Presenter’s Contact Information Noreen VanDoren Legal Services Office Office of General Services n.vandoren@ogs.state.ny.us (518) 474-5607 Monica Wilkes Procurement Services Group Office of General Services monica.wilkes@ogs.state.ny.us (518) 473-4393 OGS Website: www.ogs.state.ny.us