Office of Procurement and Contract Services .

Office of Procurement

andContract Services

http://opcs.dhhs.state.nc.us

DHHS Performance-based

Contracting

Where are the tracks taking us ?

Training Agenda

Center of Excellence and PBC Competitive Bid Process and Waiver

of Competition Overview of Contract

Administration General Contracting Requirements

& Specific Contract Documents DHHS Compliance with Contracting

Center of Excellence

What is PBC all about?

DHHS

Departmental Center of Excellence

What is the purpose? Who attends? What’s in it for me?

Divisions, Offices, Schools and

Facilities

Division Center of Excellence

What is the Center of Excellence?

A process used to help managers make better, moreinformed decisions in managing the programs andservices within their agencies. This tools helps to assureleaders that the agency is on course with the goals set forthe agency by allowing them to know what wasaccomplished as well as guide them to improvement efforts.


MISSION STATEMENTTo drive performance based contracting and process reform through best practices, information gathering and the sharing of ideas, networking and training for all DHHS divisions, offices, schools and facilities


What’s the purpose of having a center of excellence

in your division?

Identify and approve program needs; produce clear, meaningful data; identify and approve outcomes; train and assist division program staff; and reassess contract services.

Division Center of ExcellenceWhat is managing for results?

– It’s a system of management used to focus decisions and activities on clear and measurable results.

– It’s purpose is to aid the division in maximizing the efficiency, quality, and effectiveness of services and programs.

– It’s fact-based, results-oriented and accountable.


Who attends COE?A select group of people come

together to assist inquality assurance of performance

basedContracting.

– Senior Management (director, section chief, budget– Subject Matter Experts (contracting, budgeting,

programming, policymaking, technology, etc).


How often does your division meet?

Do you attend?

Do you have the right people with the right skills to make those important decisions about whether your contract objectives are meeting your division objectives?

Do you perform contract analysis and outcome review on all new, renewals and amended contracts?


What structure will your division have in place to review contracts for state fiscal year 2008 and 2009?

Understanding Performance-based

Contracting

S.M.A.R.T. Measures

What are S.M.A.R.T. Measures?

Specific

Measurable

Achievable

Relevant

Time-bound

S.M.A.R.T. Measures

Specific

Your goals should be stated as simply, concisely and explicitly as possible.

S.M.A.R.T. Measures

Measurable

Goals should be measurable and quantifiable.

If you’re stating an increase, that increase must be measured.

S.M.A.R.T. Measures

Achievable

An achievable goal has an outcome that is realistic given your current situation, resources and time available.

Is your goal possible?

S.M.A.R.T. Measures

Relevant

A relevant goal should help you on your mission or your “bigger” objectives.

Is this important to the overall objective?

S.M.A.R.T. Measures

Time-bound

A time-bound goal includes realistic timeframes.

Whenever possible, time constraints must be defined.

Summation

All measures should be SMART:• Specific• Measurable• Achievable• Relevant• Time-Bound

State and Contracting Agency need to work together to develop SMART measures.

Research may be necessary to make the measures SMART.

Work In Progress

5 Basic ELEMENTS ofPerformance-based Contracts

Five Basic Elements of PBC

1. Needs Assessment

2. Project Goals & Objectives

3. Project Methods or Design

4. Project Evaluation

5. Reimbursement

1. Needs Assessment

– The needs assessment is a key element of a contract.

– It should be a clear, concise, well-supported statement of what the problem is and why the proposed solution is needed.

– The needs assessment includes a narrative of factual data including statistical information to support what the need is and why the service is needed.

2. Project Goals & Objectives

– The project objectives clearly describe the goals of the project.

– Explain, in terms of results not outputs, the benefits of each objective.

– The objectives are to identify the changes/effects the project will have on people’s lives (result) rather than the number of people served by this project (output).

3. Project Methods or Design

– Project methods or design outline the activities (outputs) that will be accomplished with the available resources (inputs).

– Structure the project methods or design as a time line and identify the target population (who receives/benefits from the service).

– List the tasks and deliverables that must be completed to meet the objectives of the project.

4. Project Evaluation

Develop evaluation criteria to evaluate the progress towards project objectives.

– It is important to define carefully and exactly how success will be determined.

– Describe performance measures that are specific, measurable, accountable, results-oriented and time-bound. Basic measures of time, dollars, units or stages of work can be supplied.

To be useful, the project evaluation should identify:

– who (individual, agency)…– is doing what (change in condition, behavior)…– to whom (target population), and…– why (bottom-line of the project)?– when (change occurs by this specific date), and…– how that change is measured (what data shows changed condition or

behavior)?

5. Reimbursement

Define the plan for reimbursement of services.

– Expenses are to be outlined in the budget narrative.

– The budget is to demonstrate consistency with project objectives.

– When possible, link the payment with meeting the performance measures.

Performance Measures

What are Performance Measures?

Performance measures are tools that provide a powerful means of focus within an agency by assuring that goals are on track.

The previous 5 Mandated Elements include six performance measures.

Six Performance Measures

1. Demand2. Input3. Output4. Outcome5. Service Quality6. Efficiency

1. Demand Supports the need for the service – What is

the problem?

Includes statistical evidence on 3 levels:• National

• State

• Catchment Area

Defines how many people in Catchment Area need the service

Found in the Needs Assessment of the SOW

Demand Measures - Example

Found in the Needs Assessment section.

Includes statistical evidence on 3 levels:

National

State

Catchment Area

Defines number of persons in catchment area who need service.

Expressed as a number.

US: Population approx 300 million 37 million people below the federal

poverty line Rate of poverty 13%

NC: Population approx 9 million 1.2 million people below federal

poverty line Rate of poverty 15%

Service Area: 23 counties = Poverty rates > 18% All rural and 19 located in Coastal

Plain Region 10 small businesses 100 families meeting eligibility

criteria

Need Low Income North Carolinians

(below the federal poverty level) lack the necessary resources to become Self Sufficient

Demand: Statistical Resources

http://www.census.gov/census2000/states/nc.html

http://www.ncruralcenter.org/databank/index.html

http://www.ncjustice.org http://www.acf.hhs.gov/programs/ocs/csbg/ http://www.roma1.org/about_roma.asp?pid=2 http://www.waptac.org/ http://www.nationalhomeless.org/publications/fa

cts.html

http://www.nccaa.net http://www.nccommerce.com/





http://www.ncjustice.org/

http://www.acf.hhs.gov/programs/ocs/csbg/

http://www.roma1.org/about_roma.asp?pid=2

http://www.waptac.org/

http://www.nationalhomeless.org/publications/facts.html

http://www.nationalhomeless.org/publications/facts.html

http://www.nccaa.net/

http://www.nccommerce.com/

http://www.nccommerce.com/

Six Performance Measures

1. Demand: Supports the need for the service

2. Input3. Output4. Outcome5. Service Quality6. Efficiency

2. Input Defines the amount of resources

being used to develop, maintain or deliver a product, activity or service

Found in the Budget. It is the Contract Total.

Expressed as a dollar amount.

Input Measures - Example

Found in the Budget.

Total amount of the contract, including local match, if applicable.


$500,000



2. Input: Defines the amount of resources invested

3. Output4. Outcome5. Service Quality6. Efficiency

3. Output Show the quantity of work activity completed

Expressed as a number or quantity

Used to monitor how much was produced or provided the services provided under the contract –

States the number of units of services that is expected to be delivered to customer in order to help solve the problem?

Provide a number indicating how many items, referrals, action, products, etc. were involved

Found in the Project Methods & Design section of the SOW

Output Measures - Example

Found in Project Methods and Design section.

Defines the number of unique participants or clients in the program.

States the services and quantity of the services provided.


Technical assistance will be provided to

10 small businesses to obtain small business loans

All or (10) small business will create and submit loan packages to financial institutions for approval

At least 8 small business (out of 10) will have their loan packages approved

At least 5 of the 8 businesses will be funded total amount requested for small business development

8 of the small businesses whose loans were approved will at least maintain 15 jobs for low income persons

5 small businesses who received full funding will expand or create 15 additional jobs for low income persons

Output Measures - Example

Found in Project Methods and Design section.

Defines the number of unique participants or clients in the program.

States the services and quantity of the services provided.


Minimize barriers to homeownership for

100 families through community and

economic development services,

service plan coordination, and agency/community collaboration

All or 100 families will complete pre-homeownership education and counseling

At least 75 families out of 100 will have their homeownership loan packages approved

At least 50 families out of the 75 will become home owners



2. Input: Defines how much money is needed

3. Output: Defines the services provided

4. Outcome5. Service Quality6. Efficiency

4. Outcome

Defines the results achieved from the contract

Must tie back to the service or activity of the contract and ultimately the main purpose of the program – How will the program effect the problem?

Includes short-term, interim and long-term results

Found in the Project Evaluation Section of SOW

Expressed as a Percentage or Rate

Outcome Measures - Example

Found in the Project Evaluation Section.

Defines the results achieved from the contract.


Expressed as a % or rate.

100 % of small business (N=10) willcreate and submit loan packages forApproval

80% of small business (N= 8) will have theirloans approved

63% of small businesses (N=5) will be funded total amount of funding requested for small business development

All or 80 % of small business whose loans were approved will at least maintain 15 jobs for low income persons

63% of small businesses (5) who received full funding for small business development will expand or create 15 additional jobs for low income persons

Loans for Small Businesses

Outcome Measures - Example

Found in the Performance Requirements section.

Defines the results achieved from the contract.


Expressed as a % or rate.

100% of families (N=100) will complete pre home ownership education and counseling

75% of families (N=75) completing pre home ownership, education and counseling will have their homeowners loan packages approved

66% of families ( N=50) will become homeowners

Long -Term The projected outputs, outcomes,

goals and objectives will contribute to the increase of those moving above the federal poverty level and into self sufficiency in the catchment area by 50% in 3 years

Minimizing Barriers to Homeownership





4. Outcome: Defines the results achieved

5. Service Quality6. Efficiency

5. Service Quality Defined as how well the service was delivered, based

on characteristics important to the recipient

Used to determine if we are meeting the expectations of the recipient

Takes the form of:

• Timeliness

• Accuracy

• Meeting regulatory requirements

• Courtesy

Found in the Project Evaluation section of SOW

Demonstrating Service Quality

It’s not just delivering the service to the recipients…

It’s HOW well it’s delivered!

Service Quality Measures - Example

Found in the Project Evaluation section.

Defines how well the service was delivered, based on characteristics important to the recipient.

Describe in the form of timeliness, accuracy, regulatory requirements, courtesy, and meeting recipient’s needs.

90% of the small businesses will say that the training and technical assistance they received was helpful

90% of small businesses will say that the trainers were knowledgeable

For those loans not approved feedback from bank will show denial resulted from other than technical errors or things the trainer can not control such as type of project, financial projections, credit history or character.

Performance Measures1. Demand: Supports the need for the

service

2. Input: Defines the resources invested



5. Service Quality: Defines how the services will be provided to the recipient’s

satisfaction. 6. Efficiency

6. Efficiency Monitors the relationship between the

amount produced and the resources used

The cost per output or result (such as an evaluation or a study).

Expressed as a dollar amount

Found in the Reimbursement section of the SOW

Efficiency Measures - Example

Cost per participant or result.


Found in the reimbursement section

$200,000 (SB) ÷ 10 (SB) =

$20,000 per small business

300,000 (home project)÷100(families) =

$3,000 per family






5. Service Quality: Defines how well the

service was delivered 6. Efficiency: Cost per participant or

result

Benefits of Performance Measures

Strengthens the program

Contractor learns what is working and where improvement is needed

Builds a strong case for future funding

More people in need are served with the best possible programs

Competitive Bid Process &

Waiver of Competition

What is the best way to find the appropriate

Vendors?

Competitive Bid Process

RFP – A Request for Proposal (referred to as RFP)

is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service.

– A bidding process is one of the best methods for leveraging a company's negotiating ability and purchasing power with suppliers

– The Request process brings structure to the procurement decision and allows the risks and benefits to be identified clearly upfront.

http://en.wikipedia.org/wiki/Bidding

http://en.wikipedia.org/wiki/Proposal_(business)

http://en.wikipedia.org/wiki/Commodity

http://en.wikipedia.org/wiki/Service_(economics)

– The Request purchase process is lengthier than others, so it is used only where its many advantages outweigh any disadvantages and delays caused. The added benefit of input from a broad spectrum of functional experts ensures that the solution chosen will suit the company's requirements.

– Unlike an RFA, the applicants are not aware of the reward amount. Award is made to the offeror presenting the most advantageous overall proposal to the State.

– These are posted by OPCS on the IPS site for all interested vendors to have access to the information.

Competitive Bid ProcessRFA

– Request for Application - A competitive process that usually results in the award of more than one contract. Unlike the RFP, applicants are knowledgeable of the award amount and are asked to submit an application that includes a description of services to be performed and a budget narrative of the potential award amount.

– These are posted to the DHHS website for all vendors to be able to access the information.


So, what’s the difference in the RFA and RFP?

– RFA’s are used when the fundingsource is acting as flow-through forgrant funding.

– RFA’s are used with non profit entities.

Competitive Bid ProcessRFP or RFA?

– Resource and Referral services using funds from Child Care and Development Block Grant to support or carry out a program.

– Janitorial maintenance services from for the State

– Evaluation Recommendation and Implementation of a new medical records system for the State.

– Expand after school program services for at risk children using funds from Temporary Assistance for Needy Families Block Grant


What if I need information prior to issuing an RFP?

RFI – Request for Information - An informal method of

soliciting general information to aid in later planning of specification writing. NO contract results from this process. To be used to obtain technical information NOT pricing.


RFQ – The Request for Quotation (RFQ) is used where

discussions aren't required with bidders (mainly when the specifications of a product or service are already known), and price is the main or only factor in selecting the successful bidder.

– RFQ may also be used as a step prior to going to a full-

blown RFP to determine general price ranges. In this scenario, products, services or suppliers may be selected from the RFQ results to bring in to further research in order to write a more fully fleshed out RFP.

http://en.wikipedia.org/wiki/Request_for_Quotation


Sole source and Government Contracts

Contracts with public agencies (other state departments, UNC system, community colleges, local government agencies) do not justify a waiver of competition.

• Sole source contracts with a for profit, non profit, or individual must justify a waiver of competition.

• ALL contracts must justify how costs were determined as reasonable.


Does this meet waiver of competition requirements?

a) The contractor is in close proximity of clients and parents.

b) The feds said to use this contractor.

c) The division does not have the resources.

Waiver of CompetitionDoes this meet waiver of competition requirements?

a) Discussions were held to ensure resources were allocated appropriately

b) The division has contracted with this vendor since 1987

c) Performance has been satisfactory.

d) The vendor home office is in NC

e) Legislative mandate states that we must provide this service


Does this meet a waiver of competition?

a) A particular medical service is required.

b) Competition was solicited, but no satisfactory offers were received.

c) An emergency existed.


Waivers of competition should be explained in

detailand defended if challenged later.

Overview of Contract Administration

What should I be doing?


WHEN IS A CONTRACT NEEDED?The use of a bi-lateral contract signed depends on the parties involved, whether the purchase is for goods or services, and sometimes even the type of services.

BI-LATERAL CONTRACT REQUIREDA bi-lateral contract serves as a check and balance that monitors procurement activity for improper relationships, fraud, conflict of interest issues, regulatory requirements, etc. The contracting review and signature process provides for review by more than one individual which gives more opportunity to correct potential problems before a contract is executed.


Contract Administration is any action by either party to the contract from the time of contract award until completion.

Contract Administrators are responsible for the day to day management of the contract.

Contract Manager serves as a resource for the division, oversee all contracts within the agency and provide technical knowledge, training, necessary information and logical methods to help the accuracy in the contracting process and increase efficiency.


Main objectives are to:

– ensure compliance to general contracting requirements;

– ensure contractor’s progress and performance complies with the contract;

– resolve issues that arise during the life of a contract;


Main objectives continued:

– ascertain contract amendments or revisions, negotiate fair adjustments, and determine which parties are responsible for approving cost increases;

– keep accurate records and documentation pertaining to the contract;

– prevent lapse in service.


Components of Contract Administration Process

1. Relationship Management2. Planning3. Pre Award Orientation4. Post Award5. Monitoring6. Payment7. Termination8. Close Out


Relationship Management Creating a good working

relationship, establishing mutual goals upfront, and partnering with all those involved in the contracting process helps prevent disputes and conflicts that may arise during the life cycle of the contract


Planning Review start and end dates to make

sure that there is no lapse in service. Review procurement file and identify

those critical contract issues Read the Contract in full Establish a performance monitoring

plan Identify team members and

responsibilities


Pre Award Orientation Pre-meeting with applicable program and

contracting officials prior to the post award orientation conference so that there is a clear understanding of their specific responsibilities and restrictions in administering the contract.

Items that should be discussed at the pre award meeting include such things as the responsibility of the personnel who will administer the contract, risks, quality control and testing, the specific contract deliverable requirements, special contract provisions, procedures for monitoring and measuring performance, contractor billing, voucher approval, and payment procedures


Post Award Post award orientation, either by conference, letter

or some other form of communication, should be the beginning of the actual process of good contract administration.

This communication process can be a useful tool that helps government and contractor achieve a clear and mutual understanding of the contract requirements, helps the contractor understand the roles and responsibilities of the government officials who will administer the contract, and reduces future problems.


Post Award continues However, it is not a substitute for

the contractor’s fully understanding the work requirements at the time offers are submitted, nor is it to be used to alter the final agreement arrived at in any negotiations leading to contract award.


Monitoring Monitoring plans should be

implemented tomonitor the contractors performance

Examine potential risk to the agency Establish required level of monitoring Establish conformance to

requirements set in the monitoring plan


Monitoring continues Monitoring should be

commensurate with the criticality of the service or task and the resources available to accomplish monitoring


Payments Payment to a contractor implies work is

progressing according to the contract; therefore the contract administrator must be assured that the government is getting what it paid for.

Payments should only be made to contractors that perform according to contract terms and conditions. This can be determined by monitoring contractor’s performance through review of monthly reports, onsite visits, surveillance reviews, etc.


Payment Continues Prior to certifying invoices for payment

review invoices to evaluate accuracy and cost allow ability and reasonableness

Measure submitted costs against funds available

Ensure invoices/payments are consistent with contract payment schedule


Termination Use this choice as a last resort High risk option Contractor or bonding agent

may protest Negotiation/litigation may take

months May be the only/best option


Close Out Contract closeout begins when the contract has

been physically completed, i.e., all services have been performed and products delivered.

Closeout is complete when all administrative actions have been completed, all disputes settled, and final payments have been made. This process can be simple or complex depending on the contract type for cost-reimbursement contracts.

Process requires close coordination between contract office, budget office, program office and the contractor.


Close Out Process Continues Collect all required forms and reports Settle outstanding issues Conduct joint final inventory Make final payments Close out Contract file Conduct agency debriefing Recommend changes to next

procurement contract


Ethics

Impartiality – it is the basic obligation of public service that employees shall act impartially and not give preferential treatment to any private organization or individual. Even the appearance of partiality or preferential treatment is a violation of the regulation on standards of conduct.


Ethics

– You are the contract administrator to specific program related service contracts and are working on an RFA to send to several non profits.

– One of the non profits and potential subcontractor invites

you to lunch.

Should you go?


Ethics

Conflict of Interest with contracts: No DHHS employee will draft, negotiate, administer, accept or approve any

contract or subcontract on behalf of the State if he/she or his/her immediate family has, directly or indirectly, any financial interest in such a contract or subcontract.


Ethics

A romantic relationship has developed between the contact administrator and a contractor employee.

How should this be handled?


Ethics

Gifts – anything of value.

No DHHS employee may request or receive any gift or favor from any contractor, subcontractor, supplier or other business entity or individual that has a present, past, or anticipated financial interest in any matter under the jurisdiction of DHHS.


Ethics

The contractor offers hockey tickets to the contract administrator for his birthday.

Should he accept the tickets?


Ethics

Gifts received from a contractor, subcontractor or supplier doing business directly or indirectly with DHHS must be reported to the Secretary of DHHS.


Ethics

The company your contract is with offers you weekend use of a beach or mountain home...

Should you accept the gift?

Dealing with the Information


Budget revisions :

can change the contract line items, but cannot change the total contract amount.

What’s the process for a budget revision?


Budget revisions to contract in grant form

“Wiggle Room”

• The Controller’s Office allows a 10% adjustment in line items without having the contractor send through a formal budget revision -- as long as this does not affect the total dollar amount.

• Be sure to keep track of what item has been modified, total line item adjustments cannot exceed 10%.


Line item budget revision example:• Salaries = $ 50,000• Supplies = $ 8,000• Equipment Rental = $ 2,000• Travel = $ 10,000• Total contract amount = $ 70,000

The contractor has higher expenses in Supplies than first expected, and wants to shift money to compensate for this increase. The increase is $ 2,000.

Where can this adjustment come from?


Line item budget revision example:

The amount for salaries can be adjusted:

• Salaries = $ 48,000• Supplies = $ 10,000• Equipment Rental = $ 2,000• Travel = $ 10,000• Total contract amount = $ 70,000

The Total Contract Amount did not change.


Line item title

Original amount

+ or - New

Salaries $50,000 - $2,000 $48,000

Supplies $8,000 + $2,000 $10,000

Equipment

$2,000 $2,000

Travel $10,000 $10,000

Total $70,000


Using the same example:


The contractor wants to take the $ 2,000 from travel, and move it to supplies.

Is the contractor able to do this?


That will not work, 10% of travel is $1,000. The contractor would only be able to shift the 10% from this category, and would have to look at another category to shift the rest.


Leaving the Total Contract Amount unchanged.

Overview Contract Administration

Line item title

Original amount

+ or - New

Salaries $50,000 $50,000

Supplies $8,000 + $2,000 $10,000

Equipment

$2,000 - $1,000 $1,000

Travel $10,000 -$1,000 $9,000


Budget Amendments

Any change to the

TOTAL CONTRACT AMOUNT must be completed through a

contract amendment process.


Budget items must match

– CAF, Justification Memorandum, Contract Cover, SOW, Line Item Budget, DHHS Contract System Entry

• Carefully review all budget entries and totals for the contract. They must match.

• Review invoices for accuracy. Think about what we’re paying for? And how much?

• Controller’s Office requests that the amount of invoice being approved for payment along with the account and center coding be circled.


– The CAF details the funding and total amount to be:• $155,435.

– The General Contract Cover specifies:• The contractor will be paid $155, 435.

– The SOW specifies:• The amount allocated for this contract is $150,435.

– The Line Item Budget Detail documents:• The total for the contract is $150,435.

– The entry in the DHHS Contract System and NCAS mirrors the funding on the CAF

• the total entered is: $155,435.

How much is the contract really for? What should the contractor expect

to get paid? You must track down where the difference is coming from

and have all documents within the contract reflect the same amount.


Invoice Accuracy

– The Contract Administrator is responsible for making sure the invoices that come from the contractor are timely and accurate. Double check what is being billed for, and what is being paid.

– It is essential that you keep accurate records and complete documentation to be able to efficiently monitor the contract.

– If there are any discrepancies on an invoice, check with the contractor right away to get clarification and resolve and issues.

– Insure that all mathematical computations are correct including year-to-date expenditures.


“Playing catch up on invoices”

If a batch comes in for July – December and it’s missing Sept. and Oct., then Nov. and Dec. can’t be paid without Sept. and Oct. invoices.


BudgetsIf, for example, the state funded contract for

administrative services is expending 10% less than projected budget...

What should the administrator do?

a) Wait until the end of the year and revert funds?

b) Do a contract amendment prior to the end of the year and use the funds in other effective services?


Original

A-1 A-2

Total or Amend. Amt

$300,000

$125,000

$(25,000)

Current Contact Total

0 $300,000

$425,000

New Contract Total

$300,000

$425,000

$400,000

CONTRACT APPROVAL FORM – BUDGET INFORMATION


SFY Co#

Acct Center

Amount

Federal

State Other

2009

2B01

52399

1212

$200,000

$100,000

$100,000

2010

2B01

53299

1212

$100,000

$75,000

$25,000

$ 300,000 Total Contract amount

FISCAL YEAR FUNDING INFORMATION


Amount Percentage

Fund Source

CFDA #

$100,000

50% MCHB XXXX

$100,000

50% STATE

$75,000 75% TANF XXXX

$25,000 25% OTHER

Contract Funding Information

$300,000 Total Contract amount


SFY Co# Acct Center

Amount

Program Name

Service Type

2009

2B01

52399 1212 $ 200,000

Direct

2009

2B01

53299 1212 $100,000

Direct

Program and Service Type Information by Fiscal Year Funding

JOE's MEDICAL OUTREACH SERVICES

Budget Item AmountSalaries $100,000.00Fringe $25,000.00Rent $25,000.00Supplies $5,000.00Travel $10,000.00Client Services $135,000.00

Total $300,000.00

Original Contract

NewBudget Item Amount A-1 Contract BudgetSalaries 100,000.00$ 100,000.00$ Fringe 25,000.00$ 25,000.00$ Rent 25,000.00$ 25,000.00$ Supplies 5,000.00$ 20,000.00$ 25,000.00$ Travel 10,000.00$ 5,000.00$ 15,000.00$ Client Services 135,000.00$ 100,000.00$ 235,000.00$

Total 300,000.00$ 125,000.00$ 425,000.00$

NewBudget Item Current A-2 Contract BudgetSalaries 100,000.00$ 100,000.00$ Fringe 25,000.00$ 25,000.00$ Rent 25,000.00$ 25,000.00$ Supplies 25,000.00$ (15,000.00)$ 10,000.00$ Travel 15,000.00$ (10,000.00)$ 5,000.00$ Client Services 235,000.00$ 235,000.00$ Total 425,000.00$ (25,000.00)$ 400,000.00$

Amendment I

Amendment 2

JOE'S MEDICAL OUTREACH SERVICES


Deliverables

– Accurate records are necessary to keep track of the contract activities and deliverables.

– Creating a timeline of activities, reports and deliverables will help you monitor what is expected from the contractor and resolve issues if expectations are not met.


Should contracts have a final report due after the ending date?

If the contract has a report due after the ending date of the contract, is final payment made without a report?


Deliverables

– SOW lists:• progress report due 12/31/07 and

• annual report due 06/30/08.

So, what should the report include?


How do you use this information?

– If the Contractor is not meeting objectives, review objectives to see if it’s reasonable for adjustment or issue a Corrective Action Plan

– But, don’t wait until the end of the year to find out how the contractor is doing or what’s going on with the program.

– Present this to your COE for discussion.


My contract ended 6/30/08.

– Can I amend it on 7/03/08?

My contact was effective on 10/01/06 and ends on 09/30/08. – Can I amend the contract to extend the period of time?

My contact was effective on 7/01/05 and ends on 06/30/08. – Can I amend the contract to extend the period of time?


What happens when work begins before the contract is fully effective? – The contractor is acting at their own risk when working without

a contract. – Any assurances by the division to the contractor are outside of

their legal authority and therefore not binding.– If a dispute arises between the start of performance and the

signing of the contract, there is nothing to use to resolve it.– A contract contains protections for both parties – the division

and contractor. If there’s work and no fully executed contract, neither one of them has those protections.

– Also, by statute, anyone spending money for a purpose other than for which it was appropriated may be held personally liable for the sum so spent.


Why revise the scope of work when its a no cost extension?

– If the original scope of work specifically covers the contract period, then technically no work is required during the no cost extension.

For example, timelines in the original scope of work.


Previous Audit Findings

– Program manager had a personal service contract with a non profit agency while simultaneously acting as contract administrator for a division contract.

– Failure to determine that a secondary employment situation did exist and thereby permitting the conflict of interest to exist.



– An 80,000 contract with another state agency was not handled in accordance with the State rules and regulations.

– Invoices were paid without adequate supporting documentation, and the contract was incorrectly classified as a personal service contract.



The division failed to adequately identify the federal awarding agency or Catalog of Federal Domestic Assistance (CFDA)

number in the sub recipient contracts.

General Contracting Requirements

&Specific Contract

Documents

Contract Approval Flow


Contract Approval Flow Use the Contract Approval Flow chart to determine the correct approvals for your contract.

Know the following to determine contract approval flow:

• service type• dollar amount• options (how procured) • contractor agency type



– All Contracts must go through an internal approval process.

– The Contract Approval Form (CAF) walks you through the necessary approvals.

General Contracting Requirements Internal Approvals

◊ Contract Administrator

◊ Section Chief Signature

◊ Division Contract Office

◊ Division Budget Office

◊ Division Personnel Manager (if Personal Service)

◊ COE Chair◊ Division Director



– Some contracts will need External approval.– The requirements for external approvals will

depend upon the service type, dollar amount, options (how the contract was secured), and type of contractor.


External Approvals◊ DIRM – containing any IT related service

◊ Public Affairs – containing any Media related service

◊ DHHS B&A – depending upon the service, contract amount, how the contract was selected, and the type of contract.

◊ DHHS Personnel – Personal Service, $10,000

◊ OPCS – depending upon the service, contract amount, how the contract was selected, and the type of contract.

◊ The Secretary – any Other State

Agency

◊ AG’s Office - RFP over $25,000

◊ Other


Examples

You have a Contract that focuses on specializedtraining of staff.

The contract includes items such as:– Travel– Supplies– Computer Equipment purchase ($6,000)– Maintenance of computer equipment and software.

At a Glance… will this need External approval?


The Computer items should raise a flag.

– This contract deals with IT purchase and maintenance – and needs DIRM approval.

– The IT Checklist is to be completed for every contract, and will guide you through determining whether the contract needs to go through DIRM for approval.


Examples

You have a Contract that focuses on educating consumers about birth defects and the importance of prenatal care.

The contract includes items such as:– Salaries– Supplies– Office Equipment – Design and Publishing of promotional materials

At a Glance… will this need External approval?


The Media item should raise a flag.

– This contract deals with Design and Publishing of

promotional materials – and needs Public Affairs approval.

– The Publication Approval Form can be found on the Public Affairs web site. The web site also contains useful information about required elements in all publications, etc.


Examples using the Flow Chart:

– You have an education contract that was awarded from an RFP.

– The contract is with a Non-Profit agency for $ 50,000.

What approvals are required?


– This is a Program Related Service = Education– Value = $50,000– The Option = RFP– Type of Contractor = Non-Profit

Approval levels required for this contract– All internal (except HR)– External approvals required for this contract

• DHHS B&A• OPCS• AG• State P&C



– A training contract in the amount of $230,000 with the Department of Administration.



– This is a Program Related Service = Training

– Value = $230,000

– The Option = Government

– Type of Contractor = Other State Department

Approval levels required for this contract– All internal (except HR)– External approvals required for this contract

• OPCS

• Secretary



– You have an maintenance contract that was awarded from an RFQ.

– The contract is with a For-Profit agency for $ 9,000.



– This is an Operation = Maintenance

– Value = $9,000

– The Option = RFQ

– Type of Contractor = For-Profit

Approval levels required for this contract– All internal (except HR)– No external approvals required for this contract



– You have a sole source direct medical service contract.

– The contract is with a For-Profit agency for

$ 190,000.



– This is an Program Related Service = Direct Medical Services

– Value = $190,000

– The Option = Sole source

– Type of Contractor = For-Profit

Approval levels required for this contract– All internal (except HR)– No external approvals required for this contract


If the value of that contract was

over $200,000, then

the contract would require approval from the Office of Procurement &

Contract Services.


Examples using the Flow Chart:– Providing staff training to DHHS– This is a sole source contract with a for

profit for $20,000.



– This is an Operations Related Service = Staff Training – Value = $20,000– The Option = sole source– Type of Contractor = For-Profit

Approval levels required for this contract– All internal (except HR)– B & A– OPCS


Examples using the Flow Chart:– A personal services contract (with an

individual) providing IT related services

for $9,000 at a rate of $80 per hour.



– This is an IT related service = Programming – Value = $8,000– The Option = Personal Services– Type of Contractor = Individual

Approval levels required for this contract– All internal (including HR)– DIRM– DHHS HR– B & A


Personal Service Contracts

Specific Documents

Required Contract Documents

Contract Documents (depending upon the Type of contract)

– Contract Approval Flow Chart– Contract Approval Form (CAF)– Contract Determination Questionnaire– Indirect Cost Rate– Cash Advance Documentation– Contract Justification– IT Checklist– HIPAA Checklist/BA Addendum– General Contract Cover (a. UNC b. General)– Terms and Conditions (a. Private b. Local Gov. c. State Dept. d. Health Care)– SOW (including elements and measures)– Line Item Budget and Budget Narrative– Conflict of Interest Policy/Acknowledgement– Federal Certifications (a. Tobacco b. Debarment c. Lobbying d. Drug-Free Workplace

e. Lobbying Activities)– No Overdue Tax Certification– ITS Tax Exempt Letter/Verification


Contract Approval Form

Requires specific information about the contract along with appropriate routing and signature approval. The contracting review and signature process provides for review by more than one individual which gives more opportunity to correct potential problems before a contract is executed


Audit Determination Questionnaire– States, local governments, and non-profit organizations

that receive federal and/or state funds must comply with the audit requirement in OMB Circular A-133

– Contractors that meet the definition of “sub recipient” are subject to the audit requirement, but contractors that meet the definition of “Vendor” are not.

– The audit determination form is a guide used to help determine whether payments constitute a federal award or a payment for goods or services


Audit Determination Questionnaire (Cont.)

– Unless otherwise required, for-profit/commercial entities are not subject to these requirements

– To distinguish between the two types of contracts, refer to OMB Circular A-133 and NCAC T10 C1 S/B.0400. There is a list of question to assist in distinguishing between a purchase of service or financial assistancearrangement


Subrecipient Characteristics: Determines who is eligible to receive

financial assistance; Has it performance measured against

whether the objectives of the programs are met;

Is responsible for adherence to applicable state program compliance requirements; and

Uses funds to carry out a program of the organization as compared to providing goods or services for a program of the pass-through entity.


Vendor Characteristics: Provides the goods and services within

normal business operations; Provides similar goods or services to

many different purchasers Operates in a competitive environment Provides goods or services that are

ancillary to the operations of the state program; and

Is subject to the compliance requirement of the state program.


At a Glance, what is your determination of the following (FA or POS):

– Contract award to evaluate a new program

– Contract award to administer NC Food Stamp program

– Contract award to provide psychiatrist to Cherry Hospital

– Provide HIV services to low income citizens


Congratulations if you made the following determinations.

– Contract award to evaluate a new program (POS)

– Contract award to administer NC Food Stamp program (FA)

– Contract award to provide psychiatrist to Cherry Hospital (POS)

– Provide HIV services to low income citizens (FA)


Indirect Cost

Any cost that is incurred for common objectives and therefore cannot be directly

Charged or traced to a specific activity or any single cost objective.

If a contractor budget include indirect (or administrative) cost : Contractor may include indirect cost in the contract budget for

reimbursement if they have have a predetermined indirect cost rate, fixed rate or provisional rate

Review contract funding source to determine possible limitations regarding administrative cost

Official documentation of indirect cost include either an official document for the cognizant federal agency or an independent source (not the contractor)

Verify indirect cost computation to ensure that indirect cost is not computed on excluded line items or those with dollar limitations

A copy of the official indirect cost documentation must be attached to the executed contract


Cash Advance Request Requirements

Advances may be allowed if they meet the Dept criteria

and “Advance of Financial Assistance Funds Policy”– Approved only when the lack of an advance would create an

economic hardship for the contractor– Not allowed for procurement of goods and services and

Purchase of Services contracts– Advance should not exceed the cash requirement for up to sixty

days– Requesting agency must document the need via the DHHS

Certification of Cash Need and submit to the DHHS Controllers Office


Cash Advance

– Signature required by Entity’s director, board chair person and entire board

– If contractor is funded with federal funds, the division must identify and budget state funds to support the advance; however, federal funds may be used to support the advance if allowed by the federal regulations

– Must include “advance request” payment for service language in the contract

– All advances must be settled before June 30 the fiscal year end


LET’S TEST YOUR KNOWLEDGE....

1. What types of contracts may be eligible for cash advance?

(A) Financial Assistance or (B) Purchase of Service

2. Cash advances typically should not exceed what time period

(A) 60 days or (B) 90 days

3. Contract must be signed and in place prior to cash advance

(A) True or (B) False


4. State or Federal funds must be budgeted to support the advance pay


5. DHHS Certification of Cash Need form must be

completed and submitted to: (A) Division Budget Office or (B) DHHS Controllers Officer

6. Contract document must include the “advance request” payment for service language”



Contract Justification MemorandumServes a stand alone contract and substantiate the reason for entering into the contract.

Key Components include:• Purpose and expectation of the contract• Contractor Selection Method • Selection Justification• Contract and Program Funding


IT Determination Letter

DIRM must review and approve all contracts containing an Information Technology component. Refer to DIRM website for additional information. http://dirm.state.nc.us/dirmhome

http://dirm.state.nc.us/dirmhome

http://dirm.state.nc.us/dirmhome


HIPPAThe Health Insurance Portability and Accountability Act of 1996 (Public Law 104-191)

Individually Identifiable Health Information Information that is a subset of health information,

including demographic information collected from an individual, and:

(1) Is created or received by a health care provider, health plan, employer, or health careclearinghouse; and

http://aspe.os.dhhs.gov/admnsimp/pl104191.htm


(2) Relates to the past, present, or future physical or mental health or condition of an individual; the provision of health care to an individual; or the past, present, or future payment for the provision of health care to an individual; and

(i) That identifies the individual; or

(ii) With respect to which there is a reasonable basis to believe the information can be used to identify the individual.


Business AssociateA business associate relationship may arise when a person or organization performs a function or activity on behalf of a covered entity or provides certain legal, financial or management services to the covered entity and the function, activity or services involved in the use or disclosure of individually identifiable health information.


HIPAA forms, instructions and other materials can be located on the HIPAA web site: http://hipaa.dhhs.state.nc.us/index.html

Documentation needed for contracts may include:

External Business Associate Assessment Tool (Instructions)

Internal Business Associate Assessment Tool (Instructions)

HIPAA Business Associate Addendum for Contract HIPAA Business Associate Addendum for

Memorandum of Agreement (MOA) HIPAA MOA (stand alone)

http://hipaa.dhhs.state.nc.us/index.html


Indirect Cost Information Technology

Checklist NCAS DHHS Contract System Tax Exempt Status

– IRS Federal Tax Exempt Letter– Verification of IRS Federal Tax Exempt Letter


General Cover

– UNC - Use only for UNC System-modified version due to MasterAgreement

– Other-Use for all other Contractors

– Delete attachments that do not apply and labelattachments according to order of precedence as applicable

– Delete all instructions in blue italics


General Cover “must” include the following:

– This Contract

– General Terms and Conditions or Master Agreement for UNC

– Scope of Work

– Budget (Line Item)

– Budget Narrative (descriptive)

– All other attachments are “If Applicable”


General Terms and Conditions– Private Sector– Private Universities– Duke Medical– Public Agencies (local governments)– State Departments– Health Care Providers


Financial Assistance Requirements– No Overdue Tax Debts– Notice of Certain Reporting Requirements– Grants Information Center (GIC)

General Contract Cover– UNC– All Other

General Terms and Conditions– Private Sector– Private Universities– Duke Medical– Public Agencies (local governments)– State Departments– Health Care Providers


Federal Assurances

– Federal Disclosure of Lobbying Activities

– Federal Certification Regarding Lobbying Form

– Federal Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion-Lower Tier Covered Transaction

– Federal Certification Regarding Drug-Free Workplace Requirements

– Federal Certification Regarding Environment Tobacco Smoke


Federal Certifications

– The Federal Government requires individuals and organizations to sign certain certifications depending on the amount for federal citations.

– Use the following guidelines to determine when these

certifications are required



CERTIFICATION REGARDING LOBBYING (Referred to as the Hatch Act)

– Include in sub awards for all tiers (Federal award > $25,000 or more)

– The main provision is to prohibit federal employees (applies by extension to state and local government from engaging in partisan political activity and to prevent pernicious political activities which advocates the over throw of our constitution from of government. It forbids officials paid with federal funds from using promises of jobs, promotion, financial assistance, contracts, or any other benefit to coerce (influence) campaign contribution or political support.


Federal CertificationsCERTIFICATION REGARDING DEBARMENT, SUSPENSION,

INELIGIBILITYAND VOLUNTARY EXCLUSION-LOWER TIERCOVERED

TRANSACTIONS

– Include in sub awards for all tiers (Federal award > $25,000 or more)

– This executive order called for the creation of a government wide debarment and suspension system in connection with all transactions with federal agencies.

– To curb fraud, waste, theft, embezzlement, falsification or destruction of records, and abuse in Federal programs, increase agency accountability and ensure consistency among agency regulations concerning debarment and suspension of participants in Federal programs

– Applicants for federal funds are required to certify that neither they, their principals, nor their researchers are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal department or agency or have a civil judgement or criminal offense in connection with fraud, etc



CERTIFICATION OF DRUG FREE WORKPLACE REQUIREMENTS

– Must provide with any federal participation

– To inform about the dangers of drugs in the workplace

– Contractor certifies that he will provide a drug free workplace by: Publishing a statement notifying employees that the unlawful

manufacture, distribution dispensing, possession or use of a controlled substance is prohibited in the contractors workplace and specifying the actions that will be taken against employees for violation of such prohibition



Public Law 103-227, Part C-EnvironmentalTobacco Smoke, also known as the

Pro Children Act of 1994 (Act)

Required if there is any federal participation and the contractor provides health, child care, education, or library services to children under the age of 18 in indoor facilities)


FEDERAL CERTIFICATION GUIDELINE REVIEW

If the federal participation value of the contract is $25,000 or more, the

Contractor must sign:– The Certification Regarding Lobbying – The Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion

If there is any federal participation, the Contractor must sign:– The Certification Regarding Drug-Free Workplace Requirements

If there is any federal participation and the Contractor provides health, child care,

education, or library services to children under the age of 18 in indoor facilities, the

Contractor must sign:– The Certification Regarding Environmental Tobacco Smoke

Include the appropriate attachments in the contract for any required certifications, if any.


Example You have a contract providing health services to children.

The contract amount consist of $250,000 in Federal Funding, Individual with Disabilities Education Act (IDEA), CFDA # 81.181.

At a Glance - are certifications required?

If certifications are required, state the appropriate forms to attach.


ExampleYou have a contract providing training to social workers. The contract amount consist of $22,000 in federal funds, social services block grant and 200,000 in state funds

At a Glance - are certifications required?

If certifications are required, state the appropriate forms to attach.


Conflict of Interest Policy

What is a Conflict of Interest (COI): An actual or perceived interest by a member of an organization or group in an action that results in, or has the appearance of resulting in personal, organization, or professional gain. The conflict of interest occurs when the member or group has a direct fudiciary interest in another relationship

Conflict of Interest Acknowledgement formAccompanies the Conflict of Interest Policy and must be notarized

COI Verification needed on a yearly basis


Conflict of Interest – Contracts extending more than one state fiscal year must

include documentation in the file that the conflict of interest policy has not changed from the previous year. If the policy has changed a new conflict of interest policy is required

– Conflict of Interest Policy is required with all private, non profit entities

– Contract document (General Cover) must include COI language

– Conflict of Interest not required for UNC system, local government and public authority agencies


1. At a Glance – who are required to have a COI?

(A) Governmental Agencies (B) Private Entities (for-profit) (C) Private Entities( non-profit)

2. COI verification is needed every three years


3. The contractor signed a three year contract but their COI

policy changed from when the contract was initially awarded.

Thus, the contractor should:(A) Submit a new COI or (B) Do nothing


Is the following a Conflict of Interest (yes or no)

1. A contract has been awarded to a contractor to review insulin drug claims, but the contractor also serves on the board for Eli Lilly & Company

2. A contract has been awarded to a church to carry out youth services, whereby the contract administrator belongs to the church and is also over the youth services


Financial Assistance Contract Requirements

Certification of No Overdue Tax Debts

– Certifies that the contractor does not any overdue tax debts

– Not required for UNC system, local government and public authority agencies

– Contract document (General Cover) must include “statement of no overdue tax debt language



Notice of Certain Reporting Requirements– Grantees, local governments, public authorities, and subgrantees

shall comply with all rules and reporting requirements established by stature or administrative rules.

– G.S 143C-6-23 required every grantee that receives a State or Federal pass-through funds directly from state agency to file annual reports on how those grants funds were used

– 3 reporting levels (1) Less than $25,000, (2) At Less than $500,000 and, (3) $500,000 or more

– Contract document (General Cover) must include “reporting requirements” language



Grants Information Center (GIC)– All Annual grantee reports required by G.S.143C-6-23 must be

entered on line in the Grants Information Center

– A 15 digit GIC # is established for both Purchase of services and Financial Assistance contracts

– Enter the GIC # in NCAS for FA and POS contracts paid under “specified” account codes

– Enter new grantee information and update FA Grant award data and GIC # into the GIC

– Controller will not process payment without a valid GIC



Purchase of Service (POS) contracts are exempt from the statement of no overdue tax

debts and reporting requirements

Testing your knowledge:Which contract requires “no overdue tax debt”and “reporting requirements” forms?

(a) Purchase of Service contract with a non profit(b) Financial Assistance contract with a non profit


TAX EXEMPT

IRS federal tax exempt letter applies when a

Contractor qualifies for a non-profit tax exempt

status. – If your agency has a copy of the IRS federal

tax exempt letter on file, send the verification form

to the contractor. (Delete instructions)


Tax Exempt - 501(c)(3) designation

When the agency becomes a state private non profit corporation, it can then apply for 501(c)(3) designation through the IRS.

Once the IRS grants 501(c)(3) status, the organization is exempt from certain taxes and any donations to the charitable organization are tax deductible.

Many individuals and organizations prefer to make donations to 501(c)(3) private non profits.

Any organization or group can apply for 501(c)(3) status, provided their charter or mission focuses on the non profit’s objective

DHHS Contract Compliance

How can we show the good work that we are

doing?

DHHS Compliance with Contracting

DHHS Compliance Review sheet

– This worksheet is helpful in preparing and monitoring contracts.

– Use this as a checklist to make sure to include all requirements and monitoring guide for the contract period.


OPCS Tracking Log

– Tracks number of contracts that need OPCS approval

– Tracks contract approval time, internal and external (+30, 30, <30)

– Contract Compliance– Average Number of Days for approval, internal

and external


Contract Approval Time-Frames SFY 2007 - 2008

Contracts or amendments rec'd for approval less

than 30days prior tothe effective date

62%

Contracts or amendments rec'd for approval more

than 30days prior to the effective date

18%

Other -Including Legislative increase

amendments

5%

Contracts or amendments rec'd for approval on or

after effective date

15%

Timely Approvals Trend Analysis

SFY 2006 – SFY 2008SFY 2006 - 2008 Approval Time Frame Comparison

0%

20%

40%

60%

80%

100%

M ore than 30 days Less than 30 days On or Aftereffective date

Other - Includinglegislative increase

SFY 2006

SFY 2007

SFY 2008

SFY 2006 - 2008 Compliance Comparison

0%

20%

40%

60%

80%

100%

DCD DM H DM H -Facilities

DPH DSS DVR ExecM gt

SFY 2006

SFY 2007

SFY 2008

SFY 2006 - 2008 Compliance Comparison

0%

20%

40%

60%

80%

100%

DHSR DIRM DM A DAAS DSB&HH OES RuralHlth

EconOpp

SFY 2006

SFY 2007

SFY 2008

Division

# of Contracts or Amendments

Reviewed by OPCS

# N

on

Co

mp

liant

P1 Approval Process

# N

on

Co

mp

liant

P2Required

Documents

# N

on

Co

mp

liant

P3Timely

Approval

# N

on

Co

mp

liant

P4Performance

Measures

# N

on

Co

mp

liant

P5COE

Review

# N

on

Co

mp

liant

Other (Edits, NCAS

header, etc.)

DCD 48 1 2% 15 31% 1 2% 1 2% 1 2% 9 19%DHSR 43 1 2% 4 9% 17 40% 0 0% 0 0% 1 2%DIRM 4 0 0% 0 0% 3 75% 0 0% 0 0% 0 0%DMA 13 0 0% 2 15% 2 15% 0 0% 0 0% 3 23%DMH 33 2 6% 8 24% 2 6% 0 0% 0 0% 4 12%DMH -Facilities 73 0 0% 2 3% 38 52% 0 0% 0 0% 34 47%DAAS 2 0 0% 0 0% 0 0% 0 0% 0 0% 0 0%DPH 130 3 2% 3 2% 19 15% 7 5% 1 1% 21 16%DPH-MinHDSB&HHDSS 88 4 5% 14 16% 7 8% 1 1% 0 0% 28 32%DVR 88 0 0% 0 0% 0 0% 0 0% 0 0% 0 0%OES 7 0 0% 1 14% 1 14% 0 0% 0 0% 6 86%Rural Hlth 7 0 0% 1 14% 1 14% 0 0% 0 0% 3 43%EconOpp 61 0 0% 5 8% 3 5% 1 2% 0 0% 10 16%HRProp & ConstrExecMgt 19 0 0% 2 11% 1 5% 0 0% 0 0% 3 16%More@4ControllerDD CouncilMMIS

Overall: 616

11 2% 57 9% 95 15% 10 2% 2 0% 122 20%% of ALL contracts that have a

problem in this area:

Compliance Rating at the time of Approvals 2008 (SFY Totals)Results include only Contracts and Amendments that are approved through OPCS.

Does not include RFPs that are sent to DOA or State P&C for approval

OPCS Reviews Areas of Contracts or Amendments NOT in Compliance

Division Demand Input Output Outcome

Service Quality Efficiency Total # # o

f co

ntr

acts

revie

wed

Po

ssib

le #

of

po

ints

per

Co

lum

n

Po

ssib

le #

of

po

ints

per

Ro

w

DAAS 33% 100% 100% 100% 100% 100% 89% 1 3 18

DCD 73% 98% 98% 98% 98% 92% 93% 17 51 306

DHSR 52% 100% 100% 36% 9% 21% 53% 11 33 198

DIRM X X X X X X X 0 0 0

DMA 33% 100% 100% 67% 33% 33% 61% 1 3 18

DMH 83% 100% 100% 96% 88% 96% 94% 8 24 144

DMH -Facilities 90% 100% 100% 62% 71% 71% 83% 7 21 126

DPH 90% 100% 100% 81% 81% 86% 90% 43 129 774

DSS 80% 100% 99% 94% 93% 92% 93% 28 84 504

DVR 69% 100% 100% 100% 100% 100% 95% 16 48 288

EconOpp 100% 100% 100% 100% 100% 100% 100% 19 57 342

Exec Mgmt X X X X X X X 0 0 0

OES X X X X X X X 0 0 0

Rural H 33% 100% 100% 100% 0% 100% 72% 2 6 36

DepartmentTotals 81% 100% 100% 87% 83% 86% 89% 153 459 2754

SFY 2008 - PBC Quality Rates

Areas of Compliance Trend Analysis SFY 2006 – 2008

SFY 2006 - 2008 Areas of Non-Compliance

0

50

100

150

200

250

P1 ApprovalProcess

P2 RequiredDocuments

P3 TimelyApproval

P4 PerformanceMeasures

P5 COE Review P6 Other (Edits,NCAS header, etc.)

SFY 2006 SFY 2007 SFY 2008


System IntegrationAdvantages of Merging Systems:

– Consistency: combined structure fosters better information management and reporting

– Accountability: demonstrate successes and sound management

– Facilitate auditing: reduce the potential for non-compliance penalties

– Monitoring: enhance performance component of monitoring and contracting

– Contracts/Subrecipient: enhance sub recipient and contracts component of program management

– Time Savings: anticipated savings of time, less burdensome than three databases

DHHS Performance Management

Database

Subrecipient

Monitorin

g

System

Contracts Database

Program Management

Database

DHHS Contract Numbers/Dollar Values/% Reviewed/Compliance Rate

Divisions

Contracts in system

(as of 7/08) sfy 2008

Approx. $ Value of Contracts as of 7/08

sfy 2008 funding

% of Contracts Reviewed by

OPCS

Compliance Rate SFY

2008

DCD 48 166,068,711$ 40% 52%

DHSR 115 10,759,660$ 19% 47%

DIRM 73 12,612,885$ 0% 25%

DMA 89 440,473,392$ 7% 69%

DMH 73 31,164,531$ 19% 55%

DMH - Facilities 317 37,952,820$ 18% 30%

DAAS 12 1,753,138$ 17% 100%

DPH 619 83,272,609$ 9% 64%

DPH-MinH 0 -$ - -

DSB&HH 31 23,442,866$ - -

DSS 488 71,978,940$ 11% 49%

DVR 139 20,493,869$ 29% 99%

OES 31 1,128,341$ 3% 14%

Rural Hlth 529 33,728,057$ 1% 43%

EconOpp 121 30,066,834$ 45% 82%

HR 0 -$ -

Prop & Constr 5 454,936$ -

ExecMgt 34 5,788,291$ 44% 74%

B&A 5 1,300,000$ -

DD Council 41 1,461,259$ -MMIS 0 -$ -

SFY 2008 Contract Data

Government Accountability Efficient and Effective

Management of State Resources

Center of Excellence

Merge

Example: NC Rural Fund

Program Goal: Help low income person in NC attain economic self sufficiency

The primary purpose of this Contract is to:

(1) Assist low income families to attain homeownership

(2) Assist small businesses to start, maintain and or expand small businesses development resulting in jobs for low income citizens

How?

Provide technical assistance to small businesses which will result in the creation/maintenance of job opportunities for low-income citizens

Increase awareness about local, state & federally sponsored initiatives that focus on minimizing barriers to employment, education and housing opportunities

Scope of Work

Types of Vendors

What’s a non profit?

Organization incorporated under State law and whose purpose is not to make a profit, but rather to further a charitable, civic, religious, scientific, or other lawful purpose.

Q & A

Thank Youfor your

Participation

Office of Procurement and Contract Services .

Documents

contracting slide

dhhs slide

division objectives

division meet

division program staff

contract objectives

contract services http

measures measurable