contracting for purchased, personal and professional services
TRANSCRIPT
Contracting for Purchased, Personal and Professional
Services
Municipal Research and Services Center John Carpita, Public Works Consultant
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Where We're Going Today
• Webinar Operation - Fred Ward
– 3-4 minutes
• MRSC Overview - John Carpita
– 5-7 minutes
• Contracting for Services Presentation
– John Carpita - 30 minutes (+/-)
• Q and A - Fred Ward & John Carpita
– 20 minutes (+/-)
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Who Are You?
• Agency Type?– Cities
– Counties
– Special Districts
– State/Other
• Not a public agency?
• Position– Finance/Clerk/Treasurer
– Public Works/Engineer
– Elected Official
– Attorney
– Other
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But First …
A quick message from our sponsor
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We’re Not From the Government, but
We Are Here to Help You!
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Serving all cities and counties in Washington State
Sumas City Hall
Naches Town Hall
East Wenatchee City Hall
Columbia County Courthouse
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Also serving many special districts in Washington State
• A state general fund allocation allowed MRSC to serve special purpose districts from July 2007 to the end of June 2009.
• Since then, MRSC has contracted directly with some special purpose district associations:– Association of Washington Public Hospital Districts
(AWPHD)
– Washington Association of Sewer & Water Districts (WASWD)
– Enduris, an insurance risk pool, through which we are serving approximately 450 special purpose districts
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Funding
Cities use liquor profits Counties use liquor
excise tax We contract with special
district associations to serve their members
X No charge to individual cities,
counties, and participating districts when you use MRSC Services .
These services are PREPAID!
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Now back to the presentation!
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Contracting for Services Agenda
• Service Contract Types & Definitions
• Service Providers Roster
• Selection Processes and Criteria
• Recommended Contracting for Services Guidelines
• Sample Document Sources
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Service Contract Types
• Purchased Services
• Personal Services
• Non-A/E Professional Services
• A/E Professional Services
– Architectural
– Engineering
– Landscape Architectural
– Land Surveying
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Just so you know …
• Local governments in Washington State have few restrictions on contracting for services, in contrast to State agencies, except for
– Personal service contracts for ports under Chapter 53.19 RCW
– A/E professional service contracts under Chapter 39.80 RCW.
• However, prudence and public perception dictate that an agency have policies that cover procurement of services.
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… note these disclaimers
• Definitions contained herein are based on those in Chapter 53.19 RCW (for ports), but are not identical.
• Having said that, however, they are reasonable, carefully thought out, and can be used with confidence.
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Purchased Services
Purchased services are those provided by vendors for routine, necessary and continuing functions of a local agency, mostly relating to physical activities.
• Repetitive, routine, or mechanical in nature;:– following established or standardized procedures – contribute to the day-to-day business operations – completion of an assigned and specific tasks.– decision-making is routine or perfunctory in
nature.– may require payment of prevailing wages
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Purchased Services
• Examples include:– delivery/courier service – building maintenance (janitorial)– herbicide application service – recycling/disposal/litter pickup service – vehicle inspection, lubricating and
repair services– HVAC system maintenance service– office furnishings installation,
refurbishment and repair service
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Public Works vs. Prevailing Wages Worksheet
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Personal and Non-A/E Professional Services
• Technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement which may or may not reasonably be required in connection with a public works project meeting the definition in RCW 39.04.010(4).
• Activity or product is mostly intellectual in nature
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Personal Services
• Personal services do not include purchased services or professional services procured using the competitive selection requirements in Chapter 39.80 RCW (A&E).
• Licenses or certification by State agencies are not required.
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Personal Service Contract Examples
• Retreat Facilitator
• Trainers
• Utility Rate Studies
• Comprehensive plans
• Inmate Chaplain Services
• Court Interpreter
• Transcription Services
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Non A/E Professional Services
• Non A/E professional services do not include purchased services, personal services, or professional services procured using the competitive selection requirements in Chapter 39.80 RCW (A&E).
• Licenses or certification by State agencies are required.
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Non A/E Professional Services Examples
• City Attorney
• Audit Services
• Inmate Physician Services
• Right of Way Appraisals
• Certain Environmental/Wetland Studies
• County Health Dental Hygienists
• Hearing Examiner
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A/E Professional Services
• Professional services rendered by any person, other than as an employee of the agency, contracting to perform activities within the scope of the definition of professional practice in RCW Chapters:
– 18.08 (Architects)
– 18.43 (Engineers and Land Surveyors)
– 18.96 (Landscape Architects)
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A/E Professional Services
• Services are procured using the qualifications based selection (QBS) requirements in Chapter 39.80 RCW.
• Licenses or certification by State agencies are required.
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RFQs and RFPs for Services
• Request for Qualifications (RFQ)– Ask only for firm’s general capabilities, list of
principals, previous projects, number of employees, licenses, etc.
• Request for Proposals (RFP)– May include RFQ items, unless already on file– Ask for firm’s capabilities with respect to a
specific project , including tasks and milestones– Price may be requested, except for A/E contracts– Price is only one consideration– Evaluation is based on criteria established by the
agency
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Now - Wait A Minute
• By now, you're thinking that this is way more complicated than it should be
• We just use our standard personal service contract forms and processes for everything regardless of costs!
• Give us some good reasons to change.
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Reasons to Change
• Emphasis on cost versus qualifications
• Proper placement of firms on rosters
• Formally recognize your informal processes
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Costs Versus Qualifications
Purchased Services Personal ServicesNon A/E Professional
Services
A/E Professional
Services Under
Chapter 39.80 RCW
RFB or RFP, depending
on serviceRFP RFP RFP
Ask for cost or price in
RFB or RFP
Ask for fees or
costs in RFP
May choose to ask for
fees or costs in RFP
Cannot ask for fees or
costs in RFP –
Qualifications First.
RFB = Request for Bids RFP = Request for Proposals
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Criteria for Service Provider Selection
• Basic criteria to consider in selection of any service provider include:– Fees or costs (except see next 2 slides for A/E)– Ability and reputation– Quality of previous performance for the agency or other
agencies – Ability to meet deadlines for contract performance – Responsiveness to solicitation requirements– Staff readily available for the project– Experience and reputation– Compliance with statutes and rules relating to contracts or
services
• Unique criteria, of course, will apply to each type of service
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QBS* for Professional Services
• RCW 39.80.040
“… The agency shall evaluate current statements of qualifications and performance data on file with the agency, together with those that may be submitted by other firms regarding the proposed project, and shall conduct discussions with one or more firms regarding anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services and then shall select therefrom, based on criteria established by the agency, the firm deemed to be most highly qualified to provide the services required for the proposed project. …”
* QBS = Qualifications Based Selection
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QBS* for Professional Services
• Chapter 39.80 RCW requires selection of professional architecture, engineering, surveying and landscape architecture services on the basis of qualifications of the firm or individual.
• AGO 1988 No. 4 notes:– A public agency may not, in procuring architectural or
engineering services, consider proposed price or cost in determining which firm is most highly qualified to provide services.
– When a public agency selects a firm to perform architectural or engineering services, price and cost may be considered only after the most qualified firm has been selected, at which time the law provides for negotiation of a "fair and reasonable" price.
* QBS = Qualifications Based Selection33
Service Providers Roster
• Applicants provide basic information, such as their UBI, federal tax information and contacts and
• identify categories and subcategories of services they provide
• provide references, experience and financial capacity
• More detailed information depending on type of service.
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Type of
Contract
Consultant Rosters Small Public Works Roster Vendor List
A/E Professional
Services
Non A/E
Professional
Services
Personal Services
Small Public
Works
Contractors
Prevailing
Wage
Purchased
Service
Providers
Non Prevailing
Wage
Purchased
Service
Providers
Vendors of
Materials,
Equipment
and Supplies
Unrelated to a
Public Works
Project
Typical
Services/
Contracts
Architects
Engineers
Land Surveyors
Landscape
Architects
Construction
Management
Legal Counsel
Appraisal
Accounting
Real Estate
Planning
Aerial
Mapping
Construction
Inspection,
Administration
& Testing
Public
Involvement
Market
Research
Construction
Repair
Maintenance
Alteration
Improvement
Janitorial
Services
Landscaping
Services
Appliance
Repair
Automotive
Repair
Moving and
Storage
Holiday
Lighting
Office
Supplies
Printing
Signs
IT Sales
Playground
Equipment
Selection
Process
QBS
RFP RFP RFP RFB RFB/RFP RFB/RFP RFB
Service Providers RosterPossible Rosters and Vendor List Breakdown
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Recommended Contracting for Services Guidelines
• Below $”Y”– Minimal competition.
• RFQ/RFP encouraged, but not required.• Select directly from roster?
• $”Y” to “X”– Informal Competition
• Prepare RFQ/RFP• Send to minimum of three firms • Evaluate responses and make award decision.
• Over $”X”– Formal Competition
• Prepare RFQ/RFP• Publish legal notice • Formal evaluation with a committee• Interview short listed firms• Select best firm based on quality/price combination.
• See Local Agency Contracting for Services Guidelines
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Setby
Agency
Setby
Agency
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Setby
Agency
Your Agency Thresholds
• Do you have thresholds in place?
_____ Yes ______ No
• Minimal Process (Upper Limit)
___$5K ___$10K ___$25K __ $50K __??
• Informal Process (Upper Limit)
__$10K __$25K __$50K __ $100K __??
• Formal Process (Lower Limit)
__$50K __ $100K __250K __??
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Amendments
• While not required by statute (except for ports) agency policies should address contract amendments exceeding a given percentage of the value of the original contract
• Singly or cumulatively:
• Filed with the agency legislative body?
• Available for public inspection?
• Prior to the proposed starting date of services under the amendment(s)?
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Scope of Service Changes
While not required in the statutes (except for ports) agency policies should address:
– Substantial changes in the scope of work specified in the contract.
– If there are increased fees above a given dollar amount, the agency's governing body should ratify the changes, per the amendment policy in the last slide.
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Sole Source Contracts
• For purchased, personal, and non-A/E professional contracts:
– Agency staff should provide documented evidence that they attempted to identify more than one potential, qualified consultants
– If the fees are more than a given dollar amount, the agency's governing body should ratify the contract
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Sample Document Sources
• Personal Services Contracting Manual for Ports - Report No. 64, January 2009
• Purchasing, Bidding, and Contract Management Sourcebook
• Sample MRSC RFPs
• Or you can ask MRSC to find samples for you.
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Manual Appendices
• Appendices A: Included Only In the Manual
• Appendices B: Quick Start Helps (4 Documents) (Also Included in Chapter 2 of the PSC Manual)
• Appendix C: Annotated 2008 Legislation (SSHB 3274) (1 Document)
• Appendices D: Sample Policy and Procedure Documents (10 Documents)
• Appendices E: Sample Personal Service Contracting Documents (22 Documents)
• Appendices F: Sample Non-Port Reference Documents (5 Documents)
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Purchasing, Bidding, and Contract Management Sourcebook
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Sample MRSC RFPs
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Sample MRSC RFPs
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This Concludes Contracting for Purchased, Personal and
Professional Services
Municipal Research and Services Center John Carpita, Public Works Consultant
Stay Tuned!The next MRSC Public Works
Webinar will focus on Selection of A/E Professional Services and will feature a cast of thousands.
(Well a few, anyway)
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