contracting for purchased, personal and professional services

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Contracting for Purchased, Personal and Professional Services Municipal Research and Services Center John Carpita, Public Works Consultant [email protected] 206-625-1300 1

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Contracting for Purchased, Personal and Professional

Services

Municipal Research and Services Center John Carpita, Public Works Consultant

[email protected]

1

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 (+/-)

2

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

3

But First …

A quick message from our sponsor

4

We’re Not From the Government, but

We Are Here to Help You!

5

Serving all cities and counties in Washington State

Sumas City Hall

Naches Town Hall

East Wenatchee City Hall

Columbia County Courthouse

6

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

7

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!

8

MRSC Programs

• Website: www.mrsc.org

• Library

• Publications

• Professional Development

• Inquiries (“Ask MRSC”)

9

Ask MRSC

• Address specific needs

• Fast response

• No per-use fee for research requests

• Expert, objective, professional advice (and practical too!)

10

Research Request Form

11

Or call 206-625-1300Or send an email to

[email protected]

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

13

Service Contract Types

• Purchased Services

• Personal Services

• Non-A/E Professional Services

• A/E Professional Services

– Architectural

– Engineering

– Landscape Architectural

– Land Surveying

14

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.

15

… 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

18

Public Works vs. Prevailing Wages Worksheet

19

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.

21

Personal Service Contract Examples

• Retreat Facilitator

• Trainers

• Utility Rate Studies

• Comprehensive plans

• Inmate Chaplain Services

• Court Interpreter

• Transcription Services

22

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.

23

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)

25

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.

26

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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37

Setby

Agency

Setby

Agency

38

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)?

40

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.

41

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

42

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)

45

Purchasing, Bidding, and Contract Management Sourcebook

46

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

[email protected]

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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