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									                           Consultant Contracting Overview


                       P ERSO N A L SERV I C ES C O N T RA C T I N G G UI D E
                                                FOR
                          A G EN C Y C O N T RA C T A D M I N I ST RA T O RS


                                                         for
                      “ No n - A&E ” o r “ G en eral ” P erso n al / P ro f essi o n al S ervi ces
                                                         TABLE OF CONTENTS

Introduction ..................................................................................................................................... 2

In a Nutshell .................................................................................................................................... 2

About Personal Service Contracts .................................................................................................... 2

Personal Services Contracts Differ from Goods/Trade Service Contracts. ........................................ 3

About Forms of Contract .................................................................................................................. 3

Personal Service Contracting Procedures ......................................................................................... 3

Procedure Overview: Formal ............................................................................................................ 4

         Keys to Successful Selections ................................................................................................ 5

         Negotiation & Contract Preparation ....................................................................................... 6

         Contract Approvals & Signatures........................................................................................... 8

Procedure Overview: Informal .......................................................................................................... 9

Procedure Overview: Selection By Negotiation .................................................................................. 9

Procedure Overview: Emergencies .................................................................................................... 9

Procedure Overview: Sole Source ................................................................................................... 10

About Amendments & Reinstatements........................................................................................... 10

Should I Issue a RFI, RFP or a RFQ? .............................................................................................. 11

Conclusion ..................................................................................................................................... 12



                                                                         1
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                           Revised May 2004
Introduction                                                               • Transportation construction contracts
                                                                             and       Inter-Agency    or     Inter-
This Quick Reference Guide is intended to                                    Governmental Agreements are handled
assist ODOT Contract Administrators                                          by the Construction Contracts Section
through the personal service contracting                                     within Support Services Branch, as
process. It provides brief descriptions of                                   part    of   the    ODOT   coordinated
the procedures involved. This information                                    procurement      program.   They    are
is provided by the ODOT Purchasing &                                         related, but different from personal
Contracts Management Section, which                                          services contracts.
processes    all   of  personal   services
contracting, per agency policy.                                            ODOT also assists local governments
                                                                           throughout the state to contract for
In a Nutshell                                                              professional services for transportation
                                                                           projects; please refer to the “consultant
ODOT personal service contracts:                                           procedures” on the Local Government
                                                                           Program         web        page        at:
• Are used to procure professional                                         http://www.odot.state.or.us/lgs/index.ht
  consulting services, not “goods or trade                                 ml
  services.”  Contracts     describe the
  service(s) and products/deliverables                                     About Personal Service
  being provided, the payment terms,                                       Contracts
  and a time frame. A valid contract is
  required before work is started and                                      Contracts for Personal Services are
  before payment can be made. Personal                                     awarded using a qualifications-based
  liability may result from authorizing                                    selection process instead of the low-bidder
  payment for any expenses incurred prior                                  process.      Qualifications,     such     as
  to a completely signed contracting                                       performance history, expertise, knowledge,
  document.                                                                creativity and the ability to exercise sound
                                                                           professional judgment, are the primary
• Can be used to procure services                                          considerations when selecting a personal
  categorized as either “Architectural,                                    service      consultant,       with     price
  Engineering and Related Services”                                        consideration     being      secondary     or
  (A&E), or “Non Architect, Engineering                                    nonexistent. The state rule OAR 125-20-
  and Related Services” (Non A&E).                                         0130 lists the following criteria for
                                                                           defining and governing the use of a
• Each category has multiple solicitation                                  personal service contract:
  types that vary in complexity and in
  their time requirements. A separate                                      • The work requires specialized skills,
  Quick Reference Guide is available for                                     knowledge and resources in the
  A&E.                                                                       application of highly technical scientific
                                                                             expertise,    or    the    exercise     of
• Contracts can be structured for a                                          professional, artistic, or management
  specific project, or to apply the same                                     discretion or judgment.
  type of services to a number of related
  projects (under an “Agreement to                                         • The Department will not control the
  Agree”).                                                                   means or manner of the consultant’s
                                                                             performance, but must rely on the
                                                                             consultant’s   specialized   skills,
                                                                     2
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
    knowledge and expertise to accomplish                                  Agreement to Agree. Under the ATA,
    the work.                                                              individual    projects  are    specifically
                                                                           described and assigned through Work
Personal Services Contracts                                                Order Contracts. The character, or scope,
Differ from Goods/Trade Service                                            of services provided must be the same for
Contracts.                                                                 all projects within that ATA. Currently,
                                                                           review by DOJ is necessary for both the
Personal Service contracts cannot be used                                  ATA and all subsequent Work Order
solely to purchase materials, equipment,                                   Contracts that are over $75,000 (except
information systems software/hardware,                                     for Land Use/Transportation Planning
or trade-related services. A primary                                       contracts, which are covered by a class
distinction between a goods/trade service                                  exemption). Generally, the same ODOT
contract and a personal service contract is                                signature on the Agreement to Agree is
that goods/trade service contracts are                                     also required on each Work Order
typically awarded to the lowest bidder,                                    Contract.
whereas the personal service contract is
always awarded on qualification criteria.                                  Personal Service Contracting
OAR 125-20-130 provides a method for                                       Procedures
distinguishing personal service contracts
from goods/trade service contracts, and                                    Both the A&E and non-A&E categories
notes     that    the    Department       of                               provide multiple solicitation procedures,
Administrative Services Purchasing Office                                  or methods, for qualifying and selecting a
has the final authority to determine what                                  consultant. The following table and text
is and isn’t a personal service contract. If                               describe the standard non-A&E personal
your project contains elements of both                                     services contracting options available. (For
types of contracts, or you are not sure, be                                information on A&E contract options, see
sure to raise the issue with an ODOT                                       the Quick Reference Guide on A&E
Purchasing & Contracts Specialist at the                                   contracts.)
very beginning of the contracting process.
                                                                           Some observations on the Non-A&E
Temporary employees (6 months) are                                         procedures: Generally, they are delineated
acquired through ODOT Personnel, or                                        by dollar amounts, and higher limits
acquired    through    a special   state                                   require more involved and time consuming
arrangement       with    rehabilitation                                   procedures. The higher dollar limits have
organizations.                                                             more minimum requirements around fair
                                                                           and open competition – but even at lower
About Forms of Contract                                                    levels you can always choose to follow a
                                                                           more formal process, and oftentimes it
What if you have several projects? A                                       makes sense to do so. The most common
contract is usually applied to cover one of                                procedure is the formal selection method,
two common situations. The most                                            although     the    informal   method     is
common need is for a contract to help                                      sometimes used. There usually is not a
accomplish a single or discrete project,                                   significant difference between them. The
after which, the contract is over. Another                                 sole source approach is not as simple and
situation involves a series of projects                                    straightforward as it may first appear, and
where there is a need to acquire the same                                  its use must be clearly justified. More
services over and over. Within ODOT, we                                    detailed information is provided on these
set up one overall contract called an                                      procedures in their respective sections.
                                                                     3
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
                                        advertisement and selection. These steps
The section on the formal process has   also follow every other type of solicitation
been expanded to include some of the    and selection process.
contracting    steps   that     follow
                        Personal Services (Non -A&E)
                      Consultant Selection Procedures:
 SOLICITATION METHOD                            WHEN TO USE
 Formal                                            Use when cost is $75,001 and above

 Informal                                          Use when cost will not exceed $75,000

 Selection by Negotiation                          Use when cost will not exceed $5,000

 Emergency                                         Use when Agency declares an emergency

 Sole Source                                       Use when only one consultant can perform the work

Procedure Overview: Formal                                                 administrator will decide on a number of
                                                                           contracting issues: How the contract(s)
The formal solicitation and contracting                                    will be structured; how much work will be
process is governed by OAR 125–20–320.                                     authorized under the contract(s); what
Use the formal process when the                                            type of payment method will be used; the
estimated cost exceeds $75,000.                                            appropriate types and levels of insurance
                                                                           the consultant will be required to carry;
This process uses a complete Request for                                   and several others. These requirements
Proposals (RFP). The person who will be                                    must be included in the RFP.
the Agency contract administrator (usually
the project manager) must submit a                                         For transportation projects involving
drafted scope of work describing the                                       USDOT federal funds, a Disadvantaged
requested services and a signed Contract                                   Business Enterprise (DBE) goal will be
Request Form to the Purchasing &                                           assigned by ODOT at this stage and
Contract    Management      Section.  The                                  included   in   the   RFP   and    the
process usually takes 3 to 4 months. Most                                  advertisement.
of that time is in the control of the
Contract Administrator or the prospective                                  The current minimum requirement is that
consultant.                                                                the advertisement is placed on the State’s
                                                                           VIP (Vendor Information Program) for 14
The PCMS Purchasing & Contracts                                            calendar days. Newspaper or other
Specialist assigned to handle your                                         specialized advertising may be desirable in
contract request will provide advice about                                 specific cases; the project manager pays
necessary legal requirements and provide                                   this cost.
the most current document format and
information that make up the rest of the                                   Consultants must have at least 14
RFP.                                                                       calendar days from the advertisement
                                                                           until their Statements of Proposal are due.
With advice from the                       Purchasing &                    It may be desirable to give consultants
Contracts  Specialist,                     the   contract                  more time, especially with novel or
                                                                     4
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
complex projects, but for other reasons as                                 A well-written RFP contains a brief Scope
well – you can discuss this with your                                      of Work that sets the overall limit of what
Purchasing & Contract Specialist.                                          is permissible, and also proposes either a
                                                                           detailed Statement of Work (for a project-
As a service to agency staff, and more                                     specific contract) or a Menu of Services
importantly, to avoid any complaints                                       (for an Agreement to Agree). A good
about preferential treatment, all contact                                  description of needed services should
with potential proposers during the                                        allow any consultant to decide if they can
solicitation phase must be handled by the                                  provide what the agency needs. It should
Purchasing & Contracts Specialist, who                                     describe the business deal well enough
will     consult   with    the    contract                                 that consultants can decide whether they
administrator or others as appropriate.                                    want to propose. It should also provide
                                                                           enough detail that we will get proposals
During the time the solicitation is open,                                  that are not based on guesses about what
potential respondents can write or email                                   the agency wants. The final Statement of
the Purchasing & Contracts Specialist                                      Work for a project will be refined during
with their questions. Answers will only be                                 negotiations around that project.
supplied in writing. The answers to
substantive      questions     (those   that                               The Evaluation Criteria and Scoring
materially impact the Statement of                                         listed in the solicitation tells consultants
Proposal) will be advertised as an                                         what characteristics and qualities are
addendum to the RFP. Unless specified                                      desired, and their relative importance in
differently, the period for questions ends 7                               the final score.
days before the proposal due date.
                                                                           In regards to which selection criteria are
After the due date for submission, the                                     appropriate, the OARs include:
Statements of Proposal are evaluated by                                    • Availability and capability to perform
the Purchasing & Contract Specialist on                                       the work;
the Pass/Fail criteria listed in the                                       • Experience of key staff on similar
solicitation. The proposals that pass are                                     projects;
forwarded to an evaluation panel chosen                                    • History of completing similar projects
by the Contract Administrator. The                                            on time and within budget;
submittals are scored and ranked                                           • References from past clients;
independently by each evaluator, based on                                  • Required licensing/certification;
the criteria in the RFP. The evaluation                                    • Consultant’s overall knowledge, as
panel then meets to compile scores, and                                       shown through the project approach
discuss and select the best consultant(s).                                    they propose, alternatives they suggest,
It is crucial that this part of the process be                                or potential problems they point out;
fair – a Purchasing & Contract Specialist                                  • Fees or costs;
will facilitate the process.                                               • Availability of any special required
                                                                              resources or equipment;
Keys to Successful Selections                                              • Qualifications         of       proposed
                                                                              subcontractors;
To increase your likelihood of satisfaction,                               • Geographically close to where services
pay particular attention to the following                                     are needed;
issues:                                                                    • Spreading work and $ evenly among all
                                                                              equally qualified consultants;
                                                                     5
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
• And any other criteria that are relevant                                 explain how those criteria will be
  to the project and the Agency’s needs.                                   evaluated, showing that they have been
                                                                           fairly and evenly applied to all proposers.
References are an important source of
information on the consultant’s past                                       If these considerations are not met, those
performance.     Ask     references    for                                 involved can easily find themselves in hot
information    about   the    consultant’s                                 water. A Purchasing & Contract Specialist
strengths, weaknesses and for information                                  can provide the tools and specific
about the project manager’s key people.                                    procedures to ensure that the evaluation
All references should be asked the same                                    is conducted fairly and documented
questions, with the responses noted in                                     properly.
written documentation.
                                                                           Consultants have the right to protest
References may be specified as part of the                                 certain aspects of both the terms of a
scored criteria in your selection process,                                 solicitation and the selection of a
or may be used as a verification step once                                 consultant(s). Protest procedures are
an initial selection has been made. The                                    described in the RFP. Solicitation protests
Purchasing & Contracts Management                                          that question the RFP’s provisions or
Section can provide standard reference                                     terms, must be filed no later than 7
checking questions and score sheets, or                                    calendar days (unless the RFP specifies a
can assist in developing specific questions                                different period) prior to the close of the
and scores for your project.                                               solicitation. Protests concerning who is
                                                                           selected must be submitted no later than
Interviews of some or all of the                                           7 calendar days (unless the RFP specifies
consultants are optional. If interviews are                                a different period) after a consultant is
held, the interview questions and their                                    notified of its selection status. This
scoring are also extremely important in                                    becomes, in essence, a protest of not being
determining how successful the process                                     selected. The grounds for a protest are
will ultimately be in securing a successful                                rather limited. Although they are rarely
consultant. The Purchasing & Contract                                      successful, every protest receives careful
Specialist will consult with you about                                     consideration, and usually brings the
successful topics and approaches to                                        process to a temporary halt. Carefully
questions that have been used already.                                     following     the   selection   procedures
Any interview score is either added to the                                 discourages any protest. The ODOT
consultants’ proposal score to make an                                     Director, or delegate, has the authority to
overall score, or is used as the final stage                               resolve both solicitation and selection
selection method. Whichever approach is                                    protests for the Department.
used, the solicitation document should
describe how the scoring will be done.                                     Negotiation & Contract
                                                                           Preparation
If these general steps are altered or
customized to best meet the needs of your                                  The standard contracting documents
situation, there are two main underlying                                   describe the cost information that
considerations.     First, be     sure   to                                consultants must submit, which is then
specifically identify what criteria will be                                forwarded to the Purchasing & Contracts
used to rank and select consultants, and                                   Specialist for a Pre-Award Audit, or other
how the needed information about a                                         review of the rates. ODOT will compare
consultant will be obtained. Second,                                       the billing rates and overhead costs to
                                                                     6
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
market norms and to any other past and                                     community. The overall objectives are to
current contracts with that firm, and                                      specify all parties’ assumptions and
specific    recommendations      may     be                                expectations, and to lay out sufficient
provided. The Contract Administrator                                       performance standards for the required
must take responsibility for the resolution                                work.
of any review or audit recommendations.
                                                                           The final Statement of Work may merge
These audits are not intended to show                                      parts of the consultant’s proposal with the
whether the contract is a good idea, or                                    proposed SOW from the RFP, and will
whether the work estimates are correct or                                  incorporate any refinements that are
a good value, or whether the overall                                       agreed     on   during    negotiations.   A
budget is appropriate; these are the                                       Statement of Work cannot go beyond the
responsibility of the project manager and                                  scope of what was advertised in the
those who approved the project, and those                                  solicitation document without starting
who negotiate the price.                                                   over and re-advertising.

Negotiation of effort and cost is one way                                  The final Statement of Work should
a knowledgeable Contract Administrator                                     accurately describe the project approach
will gain the most bang-for-the-buck,                                      and the exact services and work products
showing Agency efficiency and fulfilling                                   required. Fully describing the project
the   public    interest.  A    necessary                                  approach can be tricky; the Agency should
prerequisite is a cost estimate prepared                                   strive not to tell a consultant specifically
independently from the consultant’s                                        how to do their job – which might cross
estimate.                                                                  the line separating an independent
                                                                           consultant from a temporary employee. At
ODOT is phasing in a standard policy of                                    the same time, the Agency’s primary
negotiating the profit amount for each                                     contract responsibility is to ensure that
project or contract.                                                       enough      measurable    outcomes      and
                                                                           necessary detail are specified to avoid any
If a contract cannot be finalized in a                                     possible misunderstandings. If details are
reasonable amount of time, and at a                                        needed by the agency, then they must
reasonable compensation, negotiations                                      appear on paper now – we cannot verbally
with that consultant can be terminated                                     insist on them later.
and new negotiations may begin with the
next highest rated consultant.                                             No matter which part initially drafts the
                                                                           SOW, the Agency needs to assume final
This stage is when the Agency and the                                      responsibility for the contents.
consultant together negotiate and refine a
Statement of Work to become the heart                                      The personal service contract documents
of the Contract. A Statement of Work that                                  will be prepared by the Purchasing &
is detailed, understandable and that                                       Contracts Specialist using state forms
accurately describes your specific needs                                   approved by our DOJ. The format and
has proven to be the most important key                                    “boilerplate” legal provisions can be
to a successful contract. The consultant                                   prepared      while   negotiations  are
can only complete that which it knows you                                  conducted.
want done, and the statement of work is
what describes and communicates your                                       Also at this stage, the Purchasing &
requirements      to    the     consulting                                 Contracts Specialist will request and
                                                                     7
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
receive proper insurance certificates from                                 from the Department of Administrative
the contractor prior to signing the                                        Services (DAS) and the Department of
contract, showing the insurance required                                   Justice (DOJ). Some types of services that
in the RFP is in place.                                                    are related to other state agencies also
                                                                           require that agency’s prior approval. Some
Contracts are typically signed first by the                                types of services are exempted from a
Contractor, then by ODOT. For contracts                                    particular approval (e.g. A&E contracts are
under $1 million, faxed signatures are all                                 exempt from DAS and DOJ review), or
that is needed; contracts over that amount                                 ODOT may have a specific delegation of
must have original ink signatures (usually                                 authority (e.g., training does not need DAS
on three copies). Once all necessary                                       approval; land use or transportation
signatures have been obtained, the                                         planning and TGM program contracts do
consultant can begin the work according                                    not need DAS or DOJ approval; local
to the instructions in the contract                                        government contracts do not need FHWA
administrator’s Notice to Proceed.                                         approval). The Purchasing and Contracts
                                                                           Management Section tracks changes in
The contract becomes binding after being                                   the necessary approvals for all types of
fully executed (i.e., everyone has signed).                                contracts.
The Purchasing & Contract Specialist will
obtain the necessary signatures. The                                       Signature requirements vary according to
consultant may not begin work until the                                    the contract amount, and generally follow
contract is completely signed. Once all                                    a set order. For those over $75,000, the
necessary signatures have been obtained,                                   first to sign is the Assistant Attorney
the contract administrator should send a                                   General (unless we have a DOJ exemption,
separate “Notice to Proceed” that tells the                                such as for Land Use Planning /
consultant whether to begin work                                           Transportation     Planning).  Next,   the
immediately, or on a later specified date.                                 consultant     signs,  then   the    ODOT
                                                                           Purchasing and Contracts Management
Copies of the final documents are                                          Section, followed by the ODOT manager(s)
distributed by Purchasing and Contract                                     with the appropriate signature delegation.
Management staff. The consultant and the                                   Finally, the Department of Administrative
Contract Administrator will receive a copy.                                Services signs (unless we have a DAS
The Department’s official procurement file                                 delegation, such as for Training, Land
stays at Purchasing and Contract                                           Use/Transportation planning and TGM).
Management Section, and a copy is
maintained in General Files.                                               Within ODOT, signature delegations for
                                                                           differing dollar amounts vary for different
Contract files must be maintained by                                       people. Very generally, for contracts of
ODOT and the Contractor for six years,                                     $75,000 or less included in the STIP or
and may be subject to examination or                                       approved agency work-plan budget, a
audit from ODOT, DOJ, the Secretary of                                     branch or region head may sign, (or a
State Audits Division, or FHWA or other                                    section manager that has a proper
federal funding agency.                                                    delegation of authority). If the contract is
                                                                           over $75,000, the first signature is a
Contract Approvals & Signatures                                            recommendation from the branch or
                                                                           region head, then it must go to an
In general, all Personal Service Contracts                                 approved Deputy Director or Division
over $75,000 require signature approval                                    Administrator for final signature approval.
                                                                     8
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
The     Purchasing       and      Contracts                                finalized in a reasonable amount of time,
Management Section tracks changes in                                       and at a reasonable compensation,
the signature authorities and necessary                                    negotiations with that consultant can be
approvals for all types of contracts. NOTE:                                terminated and new negotiations begun
The     Purchasing        and      Contract                                with the next highest rated consultant.
Management Section must sign all
contract documents regardless of dollar                                    One caveat to be considered during the
limit.                                                                     informal process is that if the estimated
                                                                           cost is revised and comes to exceed
Procedure Overview: Informal                                               $75,000, then the informal process must
                                                                           be stopped, and a new formal solicitation
The Informal process described in OAR                                      must be issued.
125-20-330 involves the same basic
approach as the formal process, but the                                    Contracts should never be broken into
specific requirements are not as strict.                                   “smaller chunks” to try to avoid a more
Some time may be saved during the                                          formal process. Likewise, amendments
advertisement, the solicitation documents                                  that try to expand a contract beyond the
may be simpler, and the number of                                          dollar limit for the process used will not be
respondents can be limited.                                                approved.

You may use the Informal process if the                                    Procedure Overview: Selection
estimated price will not exceed $75,000.                                   By Negotiation

A written solicitation is sent to three                                    Governed by OAR 125-20-335, this
qualified consultants, or the opportunity                                  process allows a consultant to be directly
can be advertised on the state Vendor                                      appointed, without advertising to, or
Information Program for a minimum of five                                  having to evaluate, a number of
calendar days (or both). The amount of                                     consultants. It can be used when the
time allowed for consultant responses                                      contract amount will not exceed $5000.
should follow the general rule of
encouraging competition to the extent                                      Contracts should never be broken into
practicable, i.e., generate an adequate                                    “smaller chunks” to try to avoid a more
response.                                                                  formal process. Likewise, amendments
                                                                           that try to expand a contract beyond the
As with the formal process, responses                                      dollar limit for the process used will not be
received are evaluated on any Pass/Fail                                    approved.
criteria, and those that pass are scored
and ranked by the evaluator or evaluation                                  Procedure Overview:
panel. Cost may be one criterion for                                       Emergencies
selection.
                                                                           If the Transportation Commission or
After selecting the highest ranked                                         Agency      declares   an   emergency,  a
consultant(s) and checking references,                                     solicitation need not be bound by the
negotiations begin on the Statement of                                     normal requirements or dollar thresholds,
Work and the compensation. Selection,                                      as per OAR 125-20-340. We will follow the
negotiation, and contract preparation are                                  most       competitive    and    thorough
handled the same as described under the                                    contracting practice reasonable under the
formal process. If a contract cannot be                                    circumstances. Every decision about what
                                                                     9
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
measures are reasonable or unreasonable                                    • A completed and signed Amendment
should be justified and documented.                                          Request Form describing the changes
                                                                             being sought.
If the emergency is properly declared,
prior approval by both DAS and DOJ may                                         If the amendment is to raise the billing
be waived.                                                                     rates, justification from the consultant
                                                                               and     the     contract   administrator
Procedure Overview: Sole Source                                                (following a protocol provided by
                                                                               Purchasing and Contract Management
In the special circumstance when only one                                      Section) must accompany the request.
consultant can provide the necessary
services, sole source contracting (OAR                                     • If new work is being added, an
125-20-350) can be used. Sufficient                                          addendum to the Statement of Work
written justification for the sole source                                    must also be provided to the
contract must be provided to the                                             Purchasing & Contract Specialist,
Purchasing & Contract Specialist before                                      showing the additional services sought.
using this procedure, and will be reported
to DAS.                                                                    • If a new subcontractor is being added,
                                                                             cost information (like the prime) must
If the estimated cost of services is over                                    be attached, and may undergo a pre-
$75,000, an advertisement stating the                                        award audit.
intent to contract for the services must be
placed on the State’s VIP System, and we                                   Any Statement of Work Addendum and/or
give the consulting community at least five                                cost pages are included as part of the new
calendar days in which to respond. If the                                  amendment.
advertisement of Notice of Intent generates
interest from prospective bidders, this is                                 Additional total compensation, if any,
usually interpreted to mean that there is                                  cannot      include    work  that    was
more than one practicable source for the                                   contractually bound to be completed
services and a competitive solicitation                                    under the terms and amounts of the pre-
process must be initiated.                                                 existing contract. Nor can any additional
                                                                           work go beyond the scope of work
About Amendments &                                                         originally advertised.
Reinstatements
                                                                           If there is a cost over-run on a cost-
Amendments are used to change or add                                       reimbursement type contract, where more
to the work already authorized. The RFP                                    money is needed to complete the duties
must have given notice of the possibility of                               already authorized, but no new, additional
amendments or they may not be allowed.                                     work      is   added,    several   specific
Also, any additional work cannot go                                        requirements in OAR 125-20-0540 apply.
beyond the scope of work originally                                        A justification statement must be provided
advertised in the RFP.                                                     to ODOT PCMS (and also forwarded to
                                                                           DAS) explaining the unforeseen or
Contract Administrators initiate the                                       unavoidable circumstances leading to the
amendment process by submitting to the                                     overrun.
Purchasing & Contract Specialist:


                                                                     10
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
When adding amendments, keep in mind
the original dollar amount and time period                                 Should I Issue a RFI, RFP or a
of the contract, and the competitive                                       RFQ?
process used (i.e. formal, informal, direct,
etc.) to originally select the consultant.                                 Within each solicitation procedure, there
The amount of an amendment must be                                         may be options about which documents
necessary to fulfill the purpose of the                                    and activities to use. For example, if the
original contract, in proportion to the                                    dollar amount involved allows use of the
original contract, and not give the current                                informal or the direct appointment
consultant an advantage. Seeking to add                                    process, there is no requirement to issue a
a large dollar amount or a long time                                       comprehensive Request for Proposals
extension may be seen as an attempt to                                     (RFP) document. However, the rules expect
circumvent the competitive selection                                       use of the most competitive procedures
process,    especially   for   a   contract                                that are practical and that further the
established through a process of limited or                                public interest, regardless of the minimum
no competition.                                                            requirements.

Once a contract goes beyond the                                            Because ODOT prefers to use the most
expiration date specified in the original (or                              competitive process feasible, and because
as modified by an amendment), no further                                   of the dollars involved, most contracts
work may be paid, unless the contract is                                   result from a comprehensive RFP required
Reinstated. One reinstatement of an                                        to be issued as part of the formal selection
expired contract is allowed, provided the                                  process.
reinstatement is executed within 60 days
after the contract termination date. After                                 Another, seldom used, option is to use a
that time, a new selection process must be                                 Request for Qualifications (RFQ) to develop
started. The use of reinstatements is very                                 a list of pre-qualified firms prior to issuing
restricted: they are only intended to allow                                a RFP. The RFQ doesn’t result directly in a
for completion of work set out in the                                      contract, but is used to identify, or
expired contract, with no change in the                                    establish a pool of qualified consultants,
total compensation or rates paid. They                                     none of which can be contracted with until
must be accompanied by a written                                           an appropriate competitive evaluation
justification explaining the unforeseen or                                 process is completed. An RFQ may be
unavoidable conditions leading to the                                      helpful when there are large numbers of
expiration.                                                                proposers for routine, “cut and dried”
                                                                           agency projects. Because of the extra time
After the Purchasing & Contract Specialist                                 needed to follow up a RFQ with a separate
has prepared the amendment document,                                       evaluation and selection process, they are
the same type of approvals as on the                                       used less often.
original must be obtained before the
consultant may begin work. All signatures                                  A Request for Information (RFI) can also
are returned to the Purchasing & Contract                                  be used to help determine the availability
Specialist for distribution of final copies,                               and estimated costs of desired products
including copies to the consultant and the                                 and services in the marketplace. It is for
contract administrator.                                                    information purposes only. Consider using
                                                                           a RFI when there is a desired end product
                                                                           in mind, but there is a need for outside
                                                                           information about: price or cost estimates
                                                                     11
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004
for budget preparation and cost/benefit
analysis, alternative approaches to a
project, vendors potentially interested in
bidding on an RFP, or other information.

Conclusion

This Guide provides only an overview of
the personal services contracting process,
and is intended to familiarize you with
some of the contracting components. The
Purchasing & Contract Management
Section may have other educational or
training resources to help you learn more.
By working with the Purchasing and
Contract Management Section, you can be
assured that your contracting process
meets the applicable state and federal
laws,    and   Oregon     Department    of
Transportation policies and procedures.




                                                                     12
This document is revised periodically. Please contact the Contracts Management Section at 986-2710 for the latest version.
9765a7c8-1749-4f73-a8bc-d4026a7ca30a.doc                                                                                     Revised May 2004

								
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