Procurement FORUM

May 23, 2017

Topics for today• Fiscal 2017 Year End Procedures• ALC Review Schedule• VPR Policy• EASE II Project Updates

(PO/OA approval workflows)(Introduction of Construction Services category for DBA)(PCS / TGS portal overhaul)(VPR portal overhaul)

• Sole Source, Special and Emergency procurements• AASIS document coding (Sole Source, Special, Emergency)• ME3N (Contract Expiration Report)• Contract Management• RFQ and Ratification policies• Next Forum Topic: Legislative changes concerning procurement

Year End InstructionsFiscal Year 2017Cindy Ward

AASIS Service Center

Fiscal Year-End Deadlines

All agencies must clean up purchasing documents before year-end to properly reflect their procurement spend for FY 2017 by:

• Eliminating unwanted Purchase Orders (POs)• Closing unwanted Purchase Requisitions (PRs)• Reducing open Funds Reservations• Deleting PO lines with discontinued account assignments (those

carrying Cost Center, WBS Element, and/or Internal Order), which will no longer be valid in the new fiscal year

• Held and Blocked POs• Held PRs

AASIS Service Center (ASC) will carry forward open commitments where there is sufficient budget and/or appropriation in the new fiscal year to cover the commitment.

NOTE: Agencies should be aware that POs and commitments carried forward into FY 2018 must pass a FY 2018 budget validation or they will be reversed and deleted in FY 2017 by ASC prior to the system being available for normal operations on Wednesday, July 5, 2017.

Exclusions from carry forward:

• No held PR’s will be carried forward from FY 2017 to FY 2018.• No PR or PO containing a funds reservation that is completed will be

carried forward from FY2017 to FY2018• No PO or its referenced PR that contains an asset that has been

capitalized will be carried forward from FY2017 to FY2018.• PRs will carry forward from FY 2017 to FY 2018 if there is sufficient

budget and/or appropriation to cover the entire PR cost.• No POs created prior to FY 2017 will be carried forward, even if line

items were added in FY 2017. • POs created in FY 2017 will be carried forward only if sufficient budget

and/or appropriation exists in FY 2018 to support the entire document.

• POs which require account assignment information changes (Cost Center, Internal Order, WBS Element, Asset number, and/or G/L Account) in order to close out will not carry forward.

• If the assignment (cost center, WBS) is tied to a discontinued fund or funds center.

• The current assignment (cost center, WBS, GL account) will not have sufficient budget in the new fiscal year.

• If the cost object (cost center, WBS) in the asset shell is tied to a discontinued fund or funds center or if the asset was already capitalized

Delete existing line(s) with incorrect data Add new line(s) for desired account assignment

• A Goods Receipt (MIGO) transaction must not be keyed unless goods or services have actually been received.

• An Invoice Receipt (MIRO) transaction must not be keyed unless invoice has actually been received.

Agency Responsibilities

Clear by posting or deleting all parked, saved as complete, held or blocked documents and invoices prior to June 30, 2017. Any documents remaining in parked status on June 30, 2017 prior to the start of the final payment run will be deleted by DFA – Office of Accounting.

GR/IR items should be reviewed. Any old items should be researched and processed to completion through an invoice receipt or through the reversal of receipts (if paid in another manner), etc. This activity should be completed early in June 2017.

If you have done a Goods Receipt but paid via Direct Invoice, contact your CAFR liaison to do a separate transaction.

Document this within your PO

If your Outline Agreement has a validity date later than 6/30/2017, it will show on the transparency website. If that is not correct, make your edits.

As long as asset POs have not been goods receipted, they will carry forward.

ASC will close any PO with assets and its references PR with assets that has only a goods receipt or has been otherwise capitalized

End of Year calendar

Friday, June 30th after 4:30 p.m. – Tuesday, July 4th

DFA personnel will be conducting year end related activities during this time period. Agency personnel will be locked out of the AASIS system.

Wednesday, July 5

AASIS Service Center opens FY2018 period 1 for posting

AASIS Service Center unlocks user roles by 7:00 AM to begin normal operations.

CRITICAL TRANSACTIONS

ZOPENREQ – list of open PRs MB5S – Display list of GR/IR balances ME32K – Block or delete OA lines; change OA validity end date ZPO_OPEN_INV – list of PO with open invoices ZPO_PARTGR_IR – PO partially received and/or invoiced ME52N – close or delete PR ME22N – close PO ME2K – Purchasing Documents per Account Assignment ME5K – List Display of Purchase Requisitions

ZOPENREQ Open Purchase Requisitions

ME52N Close or Delete PR

Don’t forget to save the changes.

MB5S GR/IR Balances

MB5S GR/IR Balances Report

ZPO_OPEN_INV PURCHASE WITH OPEN INVOICES

ZPO_OPEN_INV PURCHASE WITH OPEN INVOICES Report

ZPO_PARTGR_IR - PO PARTIALLY REC’D AND/OR INVOICED

ZPO_PARTGR_IR - PO PARTIALLY REC’D AND/OR INVOICED Report

• Additional Transactions used for yearend cleanup:

Outline agreements must be output in ME9K Outline agreements must have validity dates opened in order to close

outstanding POs and then changed back. If Outline agreement has validity date passed 6/30/2017, it will show on the transparency website. – Change OA ME32K Call OSP buyer if a statewide contract

• Where Do You Go To Look At Your Budget And View The Commitments? The Actual Budget report - Transaction Y_BCS_80000046 The Open CO Commitment Item report – Transaction Z_ALR_80013542 The Open Commitment Item report – Transaction ZCMT

What Reports Can You Run To View Your Open/Held Purchase Requisitions? List Display Of PRs – Transaction ME5A List Display Of Open PRs – Transaction ZOPENREQ General Evaluation of Purchase Orders – ME80FN

What Reports Can You Run To View Your Open/Held/Blocked POs? Purchasing Document Per Document Number – Transaction ME2N Purchasing Documents Per Account Assignment - ME2K

What Reports Can You Run To View Open Goods Receipts/Open Invoices? Display List of GR/IR Balances – Transaction MB5S POs with An Open Invoice – Transaction ZPO_OPEN_INV POs That Have Been Partially Received and/or Invoiced –

ZPO_PARTGR_IR

What Reports Can You Run To View Outline Agreements and their Release Purchase Orders? Purchasing Document Per Document Number – Transaction

ME2N OSP B--Annual Minority Report - Transaction ZMM12What Reports Can You Run To View Expiring Outline Agreements? Purchasing Documents Per Document Number - ME3NWhat Reports Can You Run to Find Invoicing Errors? Vendor Line Item Display Report – Transaction FBL1N PO Vendor Payment Report – ZPOVPWhat Transactions Can You Execute to Close Open MM Documents Change PR – ME52N Change PO – ME22N Change OA – ME32K

What Reports Can You Run to Find Open AP Documents that are committing budget in error? Open Commitment Report – Transaction ZCMT Display Parked Document Report – Transaction FBV3 Parked Vendor Invoices – Transaction ZFI_PARKHELD_RPT Open Item AP Report – Transaction ZOPENITEMAP The Actual Budget Report – Transaction Y-BCS_80000046 S_ALR_87013542 – WBS Open CO Commitments S_ALR_87013542 – IO Open CO Commitments

What Transactions Can you Execute to Close Logistics and Direct Vendor Invoices? Reversing A Posted But Unpaid Logistics Vendor Invoice Or A Logistics Vendor Credit Memo –

Transaction MR8M. Clearing Vendor Open Items For A Logistics Invoice – Transaction F-44 Change An Unpaid Logistics or Direct Vendor Invoice Or A Logistics or Direct Vendor Credit Memo –

Transaction FB02 Reversing A Posted But Unpaid Direct Vendor Invoice Or A Direct Vendor Credit Memo– Transaction

FB08 Delete Parked Invoice Documents – FBV0 Delete Parked Invoice Documents – Transaction FBV2

What Reports Can You Run To View Vendor Status, i.e. Blocked/Deleted • Display Vendor (Centrally) - Transaction XK03 • Display Vendor (Accounting) – FK03

User Manual – Open Commitments: PO & Vendor Invoice Clean-Up

Click on the “Help” section Select “AASIS HELP”Enter “Cleanup” in the “Terms” field. Click “search”

Points of ContactFor AASIS Self-paced Online training: Reconciliation and Reporting

Use EASE https://ease.arkansas.gov/Login > Learning > Self-paced Online> Procurement> Reconciliation and Reporting.

If you have any questions regarding AASIS transactions, pleasecall the AASIS help desk at (501)683-2255 or log a help desk ticket.

Arkansas Legislative Council

Contract Review Schedule

ALC REVIEW SCHEDULECALENDAR & DEADLINES

• ALC PEER/REVIEW MEETING DATES• SET BY Bureau of Legislative Research (BLR)• Subject to Change

• 10 DAY RULE - Set by BLR

• IT IS THE AGENCY’S RESPONSIBILITY FOR CHECKING OSP CALENDAR AND THE STATE LEGISLATURE CALENDAR

• CONTRACTS SUBMITTED IN THE PORTAL ON THE DEADLINE DAY ARE DUE BY THE END OF THE BUSINESS DAY (4:30P.M.)

OSP SCHEDULE

ALC CALENDAR• Link to access the Arkansas State Legislature website:

http://www.arkleg.state.ar.us/assembly/2017/2017R/Pages/MeetingsAndEventsCalendar.aspx

JUNE DEADLINE

• DEADLINE INTO THE PORTAL• June 1st (DROP DEAD DATE)

• OSP REVIEW & COMPILATION OF SUBMISSION TO BLR• JUNE 2nd

• DUE TO BLR• JUNE 2ND

• ALC MEETING• JUNE 14TH

Vendor Performance Reporting

Vendor Performance Reporting

Please remember that state procurement law requires agencies

to report on the performance of vendors on contracts.

What to report• Agencies must report a vendor’s performance under any contract

with a total projected cost (TPC) of $25,000 or more. The TPC includes the cost of the initial term of the contract and any potential extensions.

• Exempt from Reporting:• Property Leases• Construction Projects

When to report

• Term contracts: Vendor performance reports (VPRs) must be submitted at least once every 3 months of the contract term. At the end of the contract term, a final VPR must also be submitted. Term contracts are represented in AASIS by Outline Agreements.

• Firm contracts: A VPR must be submitted after the final delivery has been received. Firm contracts are those for fixed delivery and are represented in AASIS by purchase orders. POs which reference Outline Agreements are not considered firm contracts.

• Important: If issues arise during the reporting period that result in a Below Standard Performance, submit the VPR at the time of the occurrence and again at the end of the 3 month reporting period.

Who reports

• All state agencies, as defined in §19-11-203(30)(A), must provide vendor performance reports.

• Each VPR must be signed by the agency’s directoror his or her designee.

How to report

• VPRs should be submitted through the DFA-Office of State Procurement website. Reporting Link: https://www.ark.org/dfa/vpr_contract_reporting/index.php

QUESTIONS?

If you need more information or have any questions, please submit them to VPR.OSP@dfa.arkansas.gov

EASE IIProject Updates

• PCS, TGS, VPR Portals • PO/OA approval workflow• Construction Services category DBA

EASE Procurement

Overview on New Features and FunctionsDate: May 23, 2017

DFA State of ArkansasDepartment of Finance and Administration EASE Procurement

Agency Overview

EASE Procurement 42

Purpose: • Agency Overview of EASE Procurement

Solution

Goals: • Review New Features and Functions

• System Demonstration and Q&A

Presenters: • Stephanie Mains

• Paul Ford

Today’s Agenda

1. EASE Procurement Overview

2. EASE Procurement Demonstration

3. Questions

DFA State of ArkansasDepartment of Finance and Administration EASE Procurement

Agency Overview

EASE Procurement 43

New AASIS Features and Functions1. New AASIS Release Strategies and Workflow

for OAs and POs.

2. PR, OA, and PO Approvals can be made through the My Inbox tile on the EASE Launchpad.

3. MS Outlook Notifications for PRs, OAs and POs

4. Enhancements to the PCS, TGS, and VPR Applications

5. Improved Procurement Reporting

EASE Procurement Overview

Benefits1. All Purchasing Document Approvals (PR, OA,

PO) are now in AASIS. No longer have to use two systems to track and monitor approvals.

2. PRs, OAs, and POs will be available for review and approve / reject on the World Wide Web (WWW) and accessible through desktop PCs, tablets, and smartphone devices.

3. Additional alerts are now available to notify you of PR, OA, and PO actions pending your approval. Email notifications will link you directly to the EASE My Inbox tile.

4. Several improvements added to facilitate ease of use including data defaults, validation, and pre-population features.

5. Greater efficiencies and flexibility for reporting on procurement approvals will be available (ZMM8_EXTN).

DFA State of ArkansasDepartment of Finance and Administration EASE Procurement

Agency Overview

EASE Procurement 44

New Reviewers / Approvers:• AL – ALC Review (Facilitated by OSP)

• DC – DBA Construction Svc

• DD – DBA Director

• DP – DBA PCS Review

• DR – DBA Real Property

• DS – DIS Review

• OD – OSP Director

• OL – OSP Legal Review

• OM – OSP Manager

• OP – OSP Portal Review

EASE Procurement

Highlights:• Automated Workflow Review / Approval in

AASIS

• Work approvals via AASIS SAPGUI

• Work approvals via EASE My Inbox

• Work approvals via MS Outlook Email link

DFA State of ArkansasDepartment of Finance and Administration EASE Procurement

Agency Overview

EASE Procurement 45

Demonstration

EASE Procurement System Demonstration

DFA State of ArkansasDepartment of Finance and Administration EASE Procurement

Agency Overview

EASE Procurement 46

Questions and Wrap-Up

Questions?

Web Based Training Available in June 2017Production Go-Live aligned with Fiscal Year-End Transition

GO-LIVE – July 5th, 2017

Sole Source&

Special ProcurementPolicies

Sole Source Procurements ACA § 19-11-232• Procurements greater than $10,000• Contracts may be awarded for a required commodity or service to a

“sole” supplier when all other methods of contracting are not applicable or practicable (due to there being a single source)

• Unless a written determination by the OSP Director (or the head of a procurement agency) is made that there is only one source for the commodity or service, efforts shall be made to obtain competition.

• To obtain a written determination, a Request for Approval must be submitted by the agency showing there is a single source. Brand name or design specifications are not sufficient.

Sole Source Procurements cont.How it Works ACA § 19-11-232 & R1:19-11-232

• Request for Approval from Agency:• Request must be made in writing• R1:19-11-232 lists the elements required to justify a sole source• All of the elements point to a showing that there is only a single source

available for the contract and explaining why the commodity or service is needed

Special Procurements ACA § 19-11-263• Procurements greater than $10,000

• A procurement may be initiated above the small purchase threshold if there is a determination that an unusual or unique situation exists that makes competitive bidding, competitive sealed bidding, or competitive sealed proposals contrary to the public interest

• A written determination of the basis for a special procurement and for selection of the particular contractor/vendor shall be obtained from the OSP Director (or head of the procurement agency)

Special Procurements cont. How it Works

• If the determination is being requested from the OSP Director, the request must be in writing and submitted to the OSP Director articulating why and how an unusual or unique situation exists, why this particular vendor provides unique solutions for the situation, and why competitive bid processes are contrary to public interest

• Agencies are required to report all special procurements to OSP. Reports must include the written determination and a copy of the contract, which is then consolidated with other special procurement reports and forwarded to Legislative Council.

AASIS Document Coding for Sole Source

Special Procurement

PO Codes are referenced in the “our reference” field of the purchasing document in AASIS.

CODE CODE DESCRIPTIONSS Sole SourceSSA Sole Source Previously ApprovedSPECIAL Special ProcurementsSPECIAL–APPR Special Procurements Previously Approved by DFA-OSP

Our Reference field

SS = Sole Source Procurement, comes to OSP for release

SSA = Purchase order against a previously approved sole source Outline Agreement

Special = Special Procurement comes to OSP for release

Special-APPR = Purchase order against a previously approved Special Procurement Outline Agreement

Never use SSA unless you are referencing a sole source Outline Agreement previously approved by DFA/OSP

Contract Expiration Report

AASIS Transaction

ME3N

Request for Qualifications

Policy

Request for Qualifications (RFQs)

• Defined as “a solicitation document requiring submittal of qualifications or specialized expertise in response to the scope of work or services required and does not require pricing.” ACA § 19-11-204 (10)

• Used for: (1) architectural, (2) engineering, (3) land surveying, (4) legal, and (5) interior design contracts

• May also be used for other PCS contracts with prior written approval from the OSP DirectorACA § 19-11-801

Request for Qualifications (RFQs) cont. How it Works (ACA § 19-11-801, 802, 803, 804)

• Agency must demonstrate that it is the most suitable method of contracting• RFQ is sent to the vendors best suited to perform the needed work• Public notice pursuant to ACA § 19-11-229• Initial selection based upon respondents’ qualifications• Evaluation of qualifications takes into consideration specialized experience,

technical competence, capacity and capability, past record of performance, proximity to and familiarity with the project location

• Select three qualified firms, from which the best-qualified and capable is selected • Negotiate a contract

• If negotiations fail, undertake negotiations with another of the qualified firms

Ratification

Policy

Ratification Arkansas Code § 19-11-247; § 19-11-1008(c); § 19-11-1011(c)(2)

• If an award of a contract was in violation of law (did not follow procurement law), the contract may be ratified and affirmed (approved and invoices paid) if (1) the person awarding the contract did not act fraudulently or in bad faith and (2) doing so is in the best interest of the state

• A written explanation is required detailing the reason for the unlawful contracting and corrective steps taken to prevent future violations

• Legislative Council review still occurs if the contract rises to the relevant threshold amounts

• Past amounts due can be paid up using ratification, but ongoing and future work should be halted and a contract lawfully awarded.

Coming Soon

Changes to Procurement Law

A procurement forum will be held in the near future to make you aware of upcoming changes

to

Arkansas Procurement Law, Rules and Procedures

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