Recordkeeping for a Procurement Review FORUM 2006 Ronald L. King, CPPB, CPPO, VCO Agenda •Objective of a Review •Review Indicators •Approach •Compliance Findings •Operational Recommendations Agenda--continued •File Organization •Documentation Open to the Public •Contract Administration •Retention Schedule •Destroying Records Objectives of a Review •Management Tool •Promote Compliance •Evaluate Operations & Assess Performance •Advice & Consultation •Identify Training Needs Review Indicators •Agency Request •Request for Increased DPA •Time Since Last Review •Procurement Metrics •Staff Turnover •Other Performance Indicators Approach •Policies, Procedures, & Organizational Chart •Procurement Files •Accounting Files •Personnel Interviews •Operational Efficiencies Compliance Findings •No Documentation That WAMS Were Solicited •No Documentations for Single Quotes < $5K •Not Using Quick Quote >$5K < $50K Compliance Findings—cont’d •Purchase Orders Not Issued Through eVA •No Documentation That Competition Was Obtained >$5K •Too Few Vendors Solicited >$5K •No Evidence of Vendor Insurance Compliance Findings—cont’d •No Evidence of Vendor License •Competitive Negotiation Procedures Not Followed Correctly •Lack of Adequate Contract Administration •Unauthorized Purchases (No eVA PO) Compliance Findings—cont’d •Unauthorized Personnel Signing Vendor Contracts/Other Procurement Documents •Appearance of Order Splitting •Not Using Mandatory Sources •Incomplete SPCC Purchase Logs Operational Recommendations •Conduct Periodic End User Training •Have End Users Enter Reqs in eVA •Control Unauthorized Purchases •Issue SPCC To Appropriate Staff •Utilize IFB & RFP Checklists in APSPM (Annex 6-D and 7-E) Manual or Automated Office Environments •Is your office automated, manual, or a combination of both automated and manual systems? •What information in a purchasing office needs to be kept, updated, and easily retrieved? •Organize the office to retrieve information easily. Files to Manage •Files –Service/Term contracts –Goods procurements –Canceled procurements –Sole source –Emergency •Internal purchasing procedures and updates •State contracts Files to Manage •Forms –Management forms –Leave slips –HR, IT, Payroll forms –Expense forms –Purchasing forms •Vendor –Lists –Performance reports –Complaints & closure Files to Manage—cont’d •Resource materials –Reference catalogues –Technical bulletins –Sample solicitations –Commodity code listings •Professional Development –Seminar Information –Organization membership information Types of Filing Equipment •Vertical file cabinets •Lateral file cabinets •Open shelf •Automated File Organization •Files MUST be able to be found. File contract and procurement files by vendor name, alphabetically. •Cross reference special files such as sole source, emergency, and vendor payment files. Filing Spot Purchases •How do you file spot purchases? –Binders –In manila files –Bound with rubber bands –Electronic folders –Other suggestions? When Should I Use a Folder? •Will depend upon the amount of required documentation •The dollar level of the procurement •How often will you need to refer to it? The File Folder •File tabs should show: –Vendor name & year of award –Contract Number –Contract/Performance period –Renewals (number of years) •Manila folders OR divided folders? –What determines the type of file or folder to use? A Look Inside •Purchase transactions for large purchases should include a checklist to be certain all information required is included in the procurement file. •Use of a checklist depends upon state, local, and internal requirements—and dollar thresholds. Developing a Checklist •Look at your legal requirements first –VPPA –State guidelines –Local ordinances –Internal policies & procedures Sample Checklist IFB SO LICITA TION CHEC KLIST FILE CHECKLIST S pecial Ap provals Release fro m Correct ions, VIB, DP S Ap proved Purchase Requ isition Internally ap proved requ isition. S pecificatio ns/Scope of W ork What is wanted, where, when , an d h ow many or h ow much Pre-b id C onferences/S ite Visits Pre-b id sign-in sheet, optional or mandatory General Terms and Con ditions Stan dard & A pproved B oilerp late S pecial Terms an d Co nd itions F or each solicitation, use carefully to ensure pro per ones are included Metho d of Award Based o n the requirements stated, e.g., other than line item, lot, or grand total, a pricing scenario shou ld be included to illustrate how the low bid will be deter mined Total or Scenario Metho d of Payment Procedure for Pay ment; e.g., progress payments, partial pay ments, etc. References Resu lts of Reference Checks (if requested) B id ders L ist Name, addresses of B id ders so licited .T he list sh ould n ote which vend ors are minority or wo men-owned vend ors . P ub lic Notice P ub lic not ice of the solicitation VBO Ad vertisement Orig inal So licitation Orig inal IFB , as issued Ad den da A copy of all addenda issued must be maintained in the file Questions/Respo nses Answers to questions fro m p otential bidders B id O pen ing an d Evaluatio n B id tabu lation sheet Not ice of Award or Award Document Not ice of Award or Notice of Intent to Award Successfu l B id A copy of the successfu l b id is retained in the active procurement file Co ntract A dmin istration Assign ment assigned in writing Insurance/L icenses/References If other infor mation was requ ired of the contractor, these items must be retained in the procurement file. Unsuccessfu l B ids Co pies of the unsuccessfu l bids are retained as a part of the inact ive permanent record Why is Documentation Important? •Public procurement is conducted in a “fishbowl.” •Documentation is open to inspection by the public. •Purchases and related documentation may be scrutinized. Virginia Freedom of Information Act Your purchasing files are public records. •May be accessed upon request and open to disclosure under the VFOIA. •There are no unofficial files, including your own files in your desk drawer or at home. They may also be disclosed under the VFOIA. What Should NOT be in Your Procurement File? •Unprofessional comments, e.g. “he doesn’t have a clue” or “a little fish in a big pond,” that happen as a result of individual notes taken at meetings or while on the phone, etc. •Draft copies of the solicitation. Only keep the original, as issued. •Extraneous papers and post-it notes. •Remove unnecessary notes, copies, and papers. What Information is NOT Open to Disclosure? •Proprietary information cannot be disclosed to the public unless by court order. •If a protest is probable, copy your attorney and can mark your documentation “Confidential Attorney/Client privilege.” Contract Administration Introduction •You will learn when it is necessary to appoint a Contract Administrator (CA), how to make the appointment, and what information to include and provide. •It’s teamwork! Contract Administration •After the award is made, term contracts, including time & materials contracts & some high dollar or complicated spot purchases need a CA assigned to be sure the vendor (and the entity) comply with the Ts & Cs of the contract. •Always appoint a CA in writing & document the procurement file. Responsibilities of a Contract Administrator •Make sure your appointment includes: –Their responsibilities –Their authority limits –The Purchasing office’s responsibilities –A copy of the contract (IFB, RFP, PO, or other) It’s Not Over Till It’s Over. . . •After the order is placed, it must be received & paid for. –Three way match •Purchase order •Receiving record •Invoice •What department maintains the record of the procurement? –Accounting –Purchasing Code of VA §42.1-19.1 •Requires that you submit all publications, except those that are used only for the daily operation of business (such as forms), to the Library of Virginia (LVA). •Includes: annual reports, studies, brochures, & any other publication produced for the public & paid for in whole or in part at gov’t expense. Code of VA §2.2-609 & §2.2-1127 •The LVA asks that you send 20 copies of each publication. You must supply these free of charge. •The LVA keeps at least two copies for its collection & distributes the others to geographically diverse libraries throughout the state & to the Library of Congress. Where to Send the Publications? State Documents Receiving The Library of Virginia 800 E. Broad Street Richmond, VA 23219-8000 Library & Archive Information •Library of Virginia –www.lva.lib.va.us –Conley Edwards Director, Records Management Services 804.692.3554 Electronic Resources Manager •Library of Virginia –Kathy Jordan –firstname.lastname@example.org –804.225.3699 Electronic Records Guidelines •Know who your entity’s Records Management Analyst is. •This information can be found on the LVA’s website. Electronic Records Guidelines •Digitally born records may need to be managed differently. •They must be preserved in accordance with applicable laws, & in compliance with LVA standards & guidelines. It’s Still Not Over . . . What do you do with all those files that you have accumulated over the years? Retention Schedule •Bid/Proposal Files—Retain 3 years after award, closure, cancellation, or until audit, whichever is longer; then destroy. •P.O.s, Requisitions, Receipts, Receiving Records/Reports—Retain 3 years. •Contracts & Agreements –Capital Improvements—Permanent –Purchases—Retain 3 years after completion and/or termination Destroying Records •State agencies & localities must obtain approval from the Library of Virginia to destroy public records. •A signed Certificate of Records Destruction (Form RM-3) must be approved by the designated records officer before records can be destroyed. Destroying Records •After records are destroyed, the original signed RM-3 must be sent to the Library of Virginia. Five Required Steps for Record Disposal •A LVA-approved retention schedule must exist covering the records to be destroyed. •Required retention periods are passed. •Audit, investigations, litigation have been resolved. •RM-3 submitted to the LVA. •RM-3 has been approved. Summary •Control the file; eliminate extra copies. •Establish a basic file plan; include procedures and controls which fulfill requirements. •Use correct equipment to accommodate records with ease of operation. •Develop retention, transfer, & disposal plans. •Delegate authority & responsibility for the file operation. Your Feedback •How will you be able to use the training you received today? •Have you learned anything new? •Are there ideas that you can put into practice? •Did the training hit the target?
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