Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
We didn’t make the rules, but let’s make the most of them… IPMA Forum  2002 “ IT Services Contracting –  Best Practices” Or
Presenters: <ul><li>Lourdes Collins, DIS </li></ul><ul><li>Susan Johnsen, OFM </li></ul><ul><li>Steve Demel, GA </li></ul>...
Authorities and  Approvals <ul><li>PURCHASED SERVICES </li></ul><ul><li>Function is performed under agency direction where...
Authorities and Approvals   <ul><li>What about projects that have elements of both personal and purchased services? </li><...
Authorities and Approvals  <ul><li>ISB/DIS approval, if required, is obtained in advance of the solicitation.  </li></ul><...
Authorities and Approvals – DIS  <ul><li>When do you need  DIS/ISB approval? </li></ul><ul><li>Costs greater than delegate...
Authorities and Approvals – DIS  <ul><li>Delegated Authority </li></ul><ul><li>The ISB delegates IT purchasing authority t...
Authorities and Approvals – DIS  <ul><li>Level 2 & 3 Severity & Risk Criteria -  Defined in the IT Portfolio Management St...
Authorities and Approvals  - DIS <ul><li>IT Purchased Services  Competitive  Thresholds: </li></ul><ul><li>0 - $9,999 – Di...
Authorities and Approvals – DIS <ul><li>For IT personal and purchased services, use DIS model contracts. </li></ul><ul><li...
Authorities and Approvals - OFM <ul><li>Personal Service Competitive Thresholds </li></ul><ul><ul><li>$5,000 - $19,999 – i...
Acquisition – Most Important Step <ul><li>Clear Statement of Work/Scope of Work </li></ul><ul><ul><li>Identify project req...
Acquisition – Hourly Rate vs. Fixed Bid <ul><li>Time and materials (hourly rates), fixed bid, or a combination  </li></ul>...
Acquisition – RFP/RFQ – Evaluation Criteria <ul><li>Determine your evaluation approach  </li></ul><ul><ul><li>Focus on eva...
Acquisition – RFP/RFQ Evaluation Criteria <ul><ul><li>Appropriately express your needs and constraints to get consistent r...
Contract Approvals   - OFM <ul><li>Contract Filing Thresholds for Personal Services </li></ul><ul><ul><li>Sole source cont...
Contract Approvals   - OFM <ul><li>There are two types of contract filing – “Review” or “Approval” </li></ul><ul><li>OFM R...
Contract Approvals   - OFM <ul><li>“ Review” vs. “Approval”  depends on acquisition method, size, and type of work - Examp...
Contract Approvals   - OFM   <ul><li>Examples of IT Personal Service Contracts Subject to OFM Approval </li></ul><ul><ul><...
Contract Approvals   - OFM   <ul><li>Sole Source Filing Requirements: </li></ul><ul><ul><li>All sole source 5K or more mus...
Contract Management - Good Working Relationship <ul><li>Require a project charter defining high level expectation, roles, ...
Contract Management - Technology Transfer <ul><li>Depends on type of contract – FB vs. TM </li></ul><ul><li>Depends on you...
More Information <ul><li>OFM – http:/www.ofm.wa.gov </li></ul><ul><li>DIS – http:/www.wa.gov/dis/portfolio </li></ul><ul><...
Upcoming SlideShare
Loading in …5
×

Panel presentation

325 views

Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

Panel presentation

  1. 1. We didn’t make the rules, but let’s make the most of them… IPMA Forum 2002 “ IT Services Contracting – Best Practices” Or
  2. 2. Presenters: <ul><li>Lourdes Collins, DIS </li></ul><ul><li>Susan Johnsen, OFM </li></ul><ul><li>Steve Demel, GA </li></ul><ul><li>Don Cotey, Milestone Technology </li></ul><ul><li>Glenn Briskin, Sierra Systems </li></ul>
  3. 3. Authorities and Approvals <ul><li>PURCHASED SERVICES </li></ul><ul><li>Function is performed under agency direction where typical management authorization and work methods are maintained and are not at the discretion of the contractor. </li></ul><ul><li>Services are more routine or repetitive and meet more general needs of the agency. </li></ul><ul><li>Follows established or standardized procedures. </li></ul><ul><li>Decision-making is made on more routine activities in support of a project or activity. </li></ul><ul><li>Payment is typically based on hourly rates. </li></ul><ul><li>PERSONAL SERVICES </li></ul><ul><li>Function is performed independent from control of the agency; consultant maintains control of work methods. Work is more creative or original. </li></ul><ul><li>Services are more specialized. </li></ul><ul><li>Exercises judgment and discretion in accomplishing outcome. </li></ul><ul><li>Decision-making is at a level that determines the strategic direction of the project and/or includes non-routine activities or events. </li></ul><ul><li>Payment is typically deliverables-based. </li></ul>GA Non-IT Purchased Services , e.g., temporary office & accounting services, janitorial, bldg. maintenance, conducting predetermined surveys, conference coordination, etc. DIS IT Purchased Services e.g., programming, PC maintenance, network back-up services, help desk support, delivering agency-designed IT training etc. OFM Personal Services e.g., consulting services, legal services, actuarial services, strategic planning, survey design and results analysis; conference coordination SERVICES DIS / OFM IT Personal Services e.g., IT:software systems design; quality assurance, feasibility studies, etc.
  4. 4. Authorities and Approvals <ul><li>What about projects that have elements of both personal and purchased services? </li></ul><ul><li>Agency should determine the primary purpose of the contract. </li></ul><ul><li>When hardware purchases or programming services are part of a project that is primarily for personal services, then the entire contract is designated as a personal service. </li></ul><ul><li>Projects with IT components must comply with ISB IT policies and standards. </li></ul>
  5. 5. Authorities and Approvals <ul><li>ISB/DIS approval, if required, is obtained in advance of the solicitation. </li></ul><ul><li>OFM filing and review or approval of the contract is obtained after award, but prior to start of work. </li></ul>
  6. 6. Authorities and Approvals – DIS <ul><li>When do you need DIS/ISB approval? </li></ul><ul><li>Costs greater than delegated authority </li></ul><ul><li>Level 2 or 3 Severity & Risk </li></ul><ul><li>Under ISB oversight </li></ul><ul><ul><li>902 Proviso </li></ul></ul><ul><ul><li>ISB Discretion </li></ul></ul>
  7. 7. Authorities and Approvals – DIS <ul><li>Delegated Authority </li></ul><ul><li>The ISB delegates IT purchasing authority to agency directors who are in compliance with IT portfolio management policies and standards. </li></ul><ul><li>The three basic levels of delegated authority are: </li></ul><ul><ul><li>$50,000 for agencies with 49 or less total agency FTEs. </li></ul></ul><ul><ul><li>$250,000 for agencies with 50 to 149 total agency FTEs. </li></ul></ul><ul><ul><li>$1 million or greater for agencies with 150 or more total agency FTEs. </li></ul></ul>
  8. 8. Authorities and Approvals – DIS <ul><li>Level 2 & 3 Severity & Risk Criteria - Defined in the IT Portfolio Management Standards </li></ul><ul><li>Impact on citizens </li></ul><ul><li>Visibility to the public and Legislature </li></ul><ul><li>Impact on state operations </li></ul><ul><li>Consequences of not doing the project </li></ul><ul><li>Impact of the project on the organization </li></ul><ul><li>Effort needed to complete the project </li></ul><ul><li>Stability of the proposed technology </li></ul><ul><li>Agency preparedness </li></ul>
  9. 9. Authorities and Approvals - DIS <ul><li>IT Purchased Services Competitive Thresholds: </li></ul><ul><li>0 - $9,999 – Direct Buy </li></ul><ul><li>$10,000 – 99,999 – at least 3 vendors, verbal or written rqmts, ads discretionary </li></ul><ul><li>$100,000 – 249,999 – at least 5 vendors, written rqmts, ads discretionary </li></ul><ul><li>$250,000 and up – ads required, include all vendors responding, written rqmts </li></ul><ul><li>Contact DIS for further details </li></ul>
  10. 10. Authorities and Approvals – DIS <ul><li>For IT personal and purchased services, use DIS model contracts. </li></ul><ul><li>For more information see: </li></ul><ul><li>http://www.wa.gov/dis/portfolio </li></ul>
  11. 11. Authorities and Approvals - OFM <ul><li>Personal Service Competitive Thresholds </li></ul><ul><ul><li>$5,000 - $19,999 – informal competition – at least 3 vendors, written rqmts, ads discretionary </li></ul></ul><ul><ul><li>$20,000 or more – formal competition, ad required, all vendors responding, written rqmts </li></ul></ul><ul><ul><li>RCW 39.29 </li></ul></ul><ul><ul><li>OFM Web Site </li></ul></ul>
  12. 12. Acquisition – Most Important Step <ul><li>Clear Statement of Work/Scope of Work </li></ul><ul><ul><li>Identify project requirements </li></ul></ul><ul><ul><li>Determine your desired business outcomes </li></ul></ul><ul><ul><li>Establish key deliverables and associated milestones </li></ul></ul>
  13. 13. Acquisition – Hourly Rate vs. Fixed Bid <ul><li>Time and materials (hourly rates), fixed bid, or a combination </li></ul><ul><ul><li>Well defined deliverables and cost drivers - FB </li></ul></ul><ul><ul><li>Deliverable and cost driver definition needed – TM </li></ul></ul><ul><ul><li>Need to transfer risk, OK to transfer control - FB </li></ul></ul><ul><ul><li>Have strong mgt , just need productive cost effective staff – TM </li></ul></ul><ul><ul><li>Combination approach </li></ul></ul><ul><ul><li>ISB or agency policy/guidelines may dictate </li></ul></ul>
  14. 14. Acquisition – RFP/RFQ – Evaluation Criteria <ul><li>Determine your evaluation approach </li></ul><ul><ul><li>Focus on evaluation criteria important to you </li></ul></ul><ul><ul><li>Weight the criteria to reflect their importance </li></ul></ul><ul><ul><ul><li>Cost and non-cost factors </li></ul></ul></ul>
  15. 15. Acquisition – RFP/RFQ Evaluation Criteria <ul><ul><li>Appropriately express your needs and constraints to get consistent responses and encourage competition </li></ul></ul><ul><ul><li>Use references effectively </li></ul></ul><ul><ul><li>Don’t over complicate </li></ul></ul>
  16. 16. Contract Approvals - OFM <ul><li>Contract Filing Thresholds for Personal Services </li></ul><ul><ul><li>Sole source contracts of $5,000 or more </li></ul></ul><ul><ul><li>Competitive contracts of $20,000 or more </li></ul></ul>
  17. 17. Contract Approvals - OFM <ul><li>There are two types of contract filing – “Review” or “Approval” </li></ul><ul><li>OFM Review = Review contract and make recommendations as needed – Agency can sign and start work immediately </li></ul><ul><li>OFM Approval = 10 day waiting period required before work begins – review contract and may require changes – may disapprove </li></ul>
  18. 18. Contract Approvals - OFM <ul><li>“ Review” vs. “Approval” depends on acquisition method, size, and type of work - Examples Subject to OFM Review </li></ul><ul><ul><li>Enhancements to existing systems </li></ul></ul><ul><ul><li>IT systems analysis services </li></ul></ul><ul><ul><li>IT network implementation services </li></ul></ul><ul><ul><li>On-call IT technical services </li></ul></ul><ul><li>(If sole source of 20K or over, subject to OFM approval.) </li></ul>
  19. 19. Contract Approvals - OFM <ul><li>Examples of IT Personal Service Contracts Subject to OFM Approval </li></ul><ul><ul><li>Design, development and implementation of a major information processing system </li></ul></ul><ul><ul><li>Re-engineering of major information technology systems </li></ul></ul><ul><ul><li>Quality assurance on IT systems </li></ul></ul><ul><ul><li>Development of IT strategic plans </li></ul></ul><ul><ul><li>Conduct of IT feasibility studies </li></ul></ul><ul><ul><li>Project management services </li></ul></ul>
  20. 20. Contract Approvals - OFM <ul><li>Sole Source Filing Requirements: </li></ul><ul><ul><li>All sole source 5K or more must be filed </li></ul></ul><ul><ul><li>All sole source filings require 10 day waiting period </li></ul></ul><ul><ul><li>All sole source 20K or more require approval </li></ul></ul>
  21. 21. Contract Management - Good Working Relationship <ul><li>Require a project charter defining high level expectation, roles, responsibilities, decision making needs </li></ul><ul><ul><li>Get assumptions on the table </li></ul></ul><ul><li>Emphasize good project management discipline </li></ul><ul><ul><li>Issue and change management </li></ul></ul><ul><ul><li>Clear acceptance criteria </li></ul></ul><ul><li>Open and complete communications </li></ul><ul><li>Work as a team </li></ul>
  22. 22. Contract Management - Technology Transfer <ul><li>Depends on type of contract – FB vs. TM </li></ul><ul><li>Depends on your commitment to having qualified resources available </li></ul><ul><li>Look for ways to create a team and work together </li></ul><ul><li>Build team involvement and technology transfer into the work plan </li></ul><ul><ul><li>Include staff in project and phase kickoffs </li></ul></ul><ul><ul><li>Involve staff in producing deliverables </li></ul></ul><ul><ul><li>Include staff in reviews of deliverables </li></ul></ul><ul><ul><li>Train staff at turnover time </li></ul></ul>
  23. 23. More Information <ul><li>OFM – http:/www.ofm.wa.gov </li></ul><ul><li>DIS – http:/www.wa.gov/dis/portfolio </li></ul><ul><li>GA – http:/www.ga.wa.gov/pca/ps2 </li></ul><ul><li>Lourdes Collins, [email_address] </li></ul><ul><li>Susan Johnsen, [email_address] </li></ul><ul><li>Steve Demel, [email_address] </li></ul><ul><li>Don Cotey, [email_address] </li></ul><ul><li>Glenn Briskin, [email_address] </li></ul>

×