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									OGS Procurement Services Group
 2006 State Purchasing Forum




      Vendor Responsibility
OGS Approach and Learning Lessons
             Presenter’s Contact Information

Noreen VanDoren                   Monica Wilkes

Legal Services Office             Procurement Services Group

Office of General Services        Office of General Services

n.vandoren@ogs.state.ny.us        monica.wilkes@ogs.state.ny.us

(518) 474-5607                    (518) 473-4393


                          OGS Website:

                        www.ogs.state.ny.us


          2006 Purchasing Forum – Vendor Responsibility
                          Approach

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


            2006 Purchasing Forum – Vendor Responsibility
                       Visiflow


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




        2006 Purchasing Forum – Vendor Responsibility
               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)




        2006 Purchasing Forum – Vendor Responsibility
           Responsibility Review Process

Checklist completion:

• Discriminatory Jurisdiction check
     AK, HI, LA, SC, WV, WY

• Completed (SVRQ) or (UCQ)

• Review responses which require further inquiry




        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


           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


        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


       2006 Purchasing Forum – Vendor Responsibility
                     Due Process
• 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

         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
        2006 Purchasing Forum – Vendor Responsibility
               Each Contract is Unique
• 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
        2006 Purchasing Forum – Vendor Responsibility
                 Review Process

• 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

       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.
       2006 Purchasing Forum – Vendor Responsibility
             Financial 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

       2006 Purchasing Forum – Vendor Responsibility
                 Financial Example

• 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



        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

       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.

       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
         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


       2006 Purchasing Forum – Vendor Responsibility
           Integrity Example

• IT Consulting contractor

• Received “too good to be true offer”

• Bid Rigging

• Once is enough



     2006 Purchasing Forum – Vendor Responsibility
                 Integrity Examples
• 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

       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

       2006 Purchasing Forum – Vendor Responsibility
             Past Performance Examples
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
         2006 Purchasing Forum – Vendor Responsibility
                Making a Determination
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?
         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



       2006 Purchasing Forum – Vendor Responsibility
      Questions and Answers




               ?
2006 Purchasing Forum – Vendor Responsibility
             Presenter’s Contact Information

Noreen VanDoren                   Monica Wilkes

Legal Services Office             Procurement Services Group

Office of General Services        Office of General Services

n.vandoren@ogs.state.ny.us        monica.wilkes@ogs.state.ny.us

(518) 474-5607                    (518) 473-4393


                          OGS Website:

                        www.ogs.state.ny.us


          2006 Purchasing Forum – Vendor Responsibility

								
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