Cf Operating Procedure Children and Families

October 31, 2008 CFOP 75-2

STATE OF FLORIDA

DEPARTMENT OF

CF OPERATING PROCEDURE CHILDREN AND FAMILIES

NO. 75-2 TALLAHASSEE, October 31, 2008

Procurement and Contract Management

CONTRACT MANAGEMENT SYSTEM FOR CONTRACTUAL SERVICES

1. Purpose. This document provides the operating procedure to ensure that the Department, through its contracting process, protects the funds it disburses, derives the maximum return of services from those funds, and is in compliance with applicable state and federal laws, rules, and regulations governing contracts for services.

2. Scope. While the Department of Children and Families’ (hereinafter Department) intent has been to cover the procurement and contract management system thoroughly, it is not feasible to write procedures that cover every possible situation. This operating procedure applies to all levels of management and supervision in varying degrees, but a thorough knowledge of the provisions contained herein is required on the part of all Department personnel directly or indirectly associated with the purchase or provision of contractual services. This operating procedure applies to all procurements for the provision of social services, consultant services, and certain other administrative services. Contracts for the provision of commodities are governed by CFOP 75-1 (Purchasing Policy and Procedures). Contracts for the provision of data processing services are governed by CFOP 50-2 (Security of Data and Information Technology Resources). This operating procedure interacts with or complements various other directives from the Department, but supersedes any extant provisions in conflict therewith.

3. Legislative Direction. Section 20.19, and Chapters 287 and 402, F.S., require the Department, whenever possible in accordance with established program objectives and performance criteria, to contract for the provision of services by counties, municipalities, not-for-profit corporations, for-profit corporations, and other entities capable of providing needed services, if services so provided are more cost-efficient than those provided by the Department. The Department shall review the time period for which the Department executes contracts and shall execute multi-year contracts to make the most efficient use of the resources devoted to contract processing and execution. Whenever the Department chooses not to use a multiyear contract, a justification for that decision must be contained in the contract. Chapter 287, F.S., provides procurement procedures, specifies certain contract terms and conditions, and specifies legislative intent.

The legislative intent is that: a) fair and open competition be recognized as a basic tenet of public procurement; b) such competition reduces the appearance of and opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically; and c) documentation of the acts taken and effective monitoring mechanisms are important means of curbing any improprieties and establishing public confidence in the process by which contractual services are procured.

It is essential to the effective and ethical procurement of contractual services that there be a system of uniform procedures to be utilized by state agencies in managing and procuring contractual services, that detailed justification of agency decisions in the procurement of contractual services be maintained, and that adherence by the agency and the contractor to specific ethical considerations be required.

4. Application. Good judgment requires that the Department utilize the resources allocated by the legislative process to the fullest extent possible to provide mandated and needed services to the constituency it serves. These resources are a balanced mixture of people, equipment, facilities, and money. It is the responsibility of the Department to ensure that the expenditure of these resources responds to legislative direction in a balanced fashion. Proper application of the provisions of this operating procedure will aid in accomplishing this objective and ensure compliance with applicable state procurement requirements.

BY DIRECTION OF THE SECRETARY:
(Signed original copy on file)
MELISSA P. JAACKS, CPA
Assistant Secretary for
Administration

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October 31, 2008 CFOP 75-2

Preface
HOW TO USE CFOP 75-2

Purpose and Scope

This preface provides the user with information designed to make CFOP 75-2 a user-friendly document and reference tool. CFOP 75-2 provides the Department’s policies and procedures that govern the procurement of contractual services, starting with the purchasing process and proceeding through writing the contract document, executing, and managing it. The scope of this preface is limited to outlining the organization of the operating procedure along with a brief overview of the content of each chapter.

Table of Contents, Glossary and Appendices.

CFOP 75-2 is organized with a Table of Contents that divides the document by chapter and topic within the chapter. The Table of Contents notes the location of the topic by chapter and paragraph number. References are made throughout the document to chapter and paragraph numbers, e.g., Paragraph 4-4. This method of reference was chosen because paragraph numbers remain more constant over time than page numbers.

A very extensive Glossary is located at http://ewas.dcf.state.fl.us/asc/glossary/glossary.asp. Its entries provide at-a-glance contract related definitions. A list of the appendices included in this operating procedure follows the Table of Contents. CFOP 75-2 includes appendices containing contract-related items, including examples of many contract related forms and other informational documents. These appendices are catalogued by alphabetical character, such as “C.” If the appendix has more than one page it is catalogued with an alphanumeric code, such as “C-2.” The contents of the appendices will be referenced many times throughout the text. It is highly beneficial to develop a familiarity with and knowledge of these required forms and procedures. The very last entry in the document is an expanded Index that references topics in alphabetical order and provides the paragraph number of the reference.

CFOP 75-2 Chapters.

The body of CFOP 75-2 is arranged into chapters that present the basic steps of the Contract Management System in the order of the chain of events occurring in the contract process. There are twelve chapters that have been organized below into six primary groups.

Purpose and Scope Statements.

Each chapter of CFOP 75-2 begins with a statement of its purpose and scope. The purpose of this short paragraph is to provide the reader with a preview of the chapter while qualifying its focus and depth.

Organization of the CFOP 75-2 Chapters:

Overview of Procurement and Method of Procurement Decision (Chapter 1).

This chapter of CFOP 75-2 provides the reader an overview of the document and a short summary of the Methods of Procurement for contractual services used by the Department.

Chapter 2.

This chapter has been reserved for future use.

Procurement Requirements (Chapters 3 - 6).

These chapters of CFOP 75-2 contain a discussion of procurement methods and requirements. These chapters provide the reader a fundamental understanding of each Method of Procurement used for the procurement of contractual services. Knowledge of these chapters is essential in the steps of the procurement decision-making processes. The procurement methods and activities in these chapters are:

a. Small Purchase Procedures. Chapter 3 contains these informal, competitive procurement requirements.

b. Emergency Procurement, Single Source, Purchases From Other Governmental Agency Contracts, and Regulated Exemptions. These are methods of procuring contractual services the value of which exceeds Category Two on Appendix A that are not subject to the competitive sealed bid procedures of Chapter 287, F.S. Chapter 4 contains these procurement requirements.

c. Competitive Procurement Requirements. Chapter 5 addresses competitive procurements the value of which will be greater than Category Two on Appendix A. It includes Requests For Proposals, Invitations To Bid and Invitations to Negotiate processes. Additional procedures for competitive procurements can be found in CFOP 75-10, Guide to Competitive Procurement – ITB/RFP/ITN.

d. Protests. Chapter 6 is a chapter on protests that addresses the procedures to follow when a protest is filed.

Contract Documents and Clauses (Chapters 7 - 9).

These chapters address contract document requirements and will be extremely important to Contract Managers when preparing the actual contract.

a. Contract Documents. The Department’s contract documents, the Standard Contract, and the Attachment I are thoroughly discussed in Chapter 7.

b. Rate Contracts. Chapter 8 reviews the procedures to follow when the Department negotiates a contract that establishes a rate of payment for a specified unit of service (unit cost). A contract using this method of payment is known as a Rate Contract.

c. Contract Clauses. Chapter 9 includes contract clauses that have been approved for use in the Attachment I/Program Specific Model Attachment (PSMA)I. As these clauses are pre-approved model Special Provisions clauses, they must be used verbatim. Any revision/alteration of a model clause cancels its model status and requires that it receive full review and approval prior to use.

Contract Review and Approval Process (Chapter 10).

This chapter addresses concise but thorough procedures to be followed in the contract review process. The following procedures are covered: transmittal, legal review, financial review, amendments, extensions, and renewals. This chapter will prove extremely important to the Contract Manager when preparing a contract.

Contract Administration (Chapters 11 - 12).

These chapters of CFOP 75-2 address the recurring maintenance and administration of existing contracts. Such requirements include management and invoice processing.

a. Contract Management. Chapter 11 of CFOP 75-2 provides procedures and guidance regarding: Contract Manager’s files, recurring maintenance of a contract, duties of a Contract Manager, standards for contract staff, and activities related to monitoring.

b. Contract Administration Reporting Requirements. Chapter 12 of CFOP 75-2 discusses the FLAIR Contracts and Grants Subsystem which is part of the Florida Accounting Information Resource System (FLAIR). The FLAIR subsystem was designed with the capability to maintain accounting and other informational contract data.

Distribution of CFOP 75-2.

As of July 1, 2000, CFOP 75-2 is distributed electronically. CFOP 75-2 is also available on the Department’s Intranet at the following address: http://ewas.dcf.state.fl.us/asc/managing_contracts/Policies%20&%20Procedures.asp.

Summary. CFOP 75-2 is a compilation of the Department’s contractual services policies and procedures. It is the Contract Manager’s textbook to be used in conjunction with circuit/region-specific operating procedures. It is recommended that you familiarize yourself thoroughly with CFOP 75-2. When questions arise, it is suggested that you first check CFOP 75-2 for the answer. If after searching CFOP 75-2 you still cannot locate the answer, it is recommended you consult your supervisor and/or the Contract Administrator. Often the Contract Administrator knows of other circuit/region-specific situations relative to your question. Work may already be in process to remedy the situation and the Contract Administrator can link you to this. The Contract Administrator is kept abreast of the latest interpretation of CFOP 75-2 and the Florida Statutes by the Office of Contracted Client Services (ASC). The Contract Administrator will call ASC if questions or need of further interpretation arises.

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October 31, 2008 CFOP 75-2

Preface HOW TO USE CFOP 75-2 iii

Chapter 1 OVERVIEW OF PROCUREMENT AND METHOD OF PROCUREMENT DECISION 1-1

1-1. Purpose and Scope. 1-1

1-2. The Department’s Decision to Contract and Assignment of Contract Management Responsibilities. 1-1

1-3. MyFloridaMarketPlace Rule 60A-1.030, Florida Administrative Code (F.A.C.) – Vendor Registration. 1-1

1-4. MyFloridaMarketPlace (MFMP) – Transaction Fee Implementation. 1-2

1-5. Documentation/File Requirements. 1-4

1-6. Definition of Contractual Services. 1-4

1-7. Procurement. 1-4

1-8. Methods of Procurement. 1-4

1-9. Method of Procurement Decision. 1-5

1-10. Public Meetings. 1-7

1-11. State and Federal Procurement Statutes and Regulations. 1-7

1-12. Employee Ethics. 1-7

1-13. Prohibited Transactions and Procedures. 1-8

1-14. Additional Procurement Requirements for Specific Services. 1-9

Chapter 2 2-1

Chapter 3 SMALL PURCHASE PROCEDURES 3-1

3-1. Purpose and Scope. 3-1

3-2. Procurements Less Than or Equal to $2,500 (Rule 60A-1.002, Florida Administrative Code (F.A.C.). 3-1

3-3. Procurements Greater Than $2,500 but not exceeding the Threshold Amount for Category Two (see Appendix A and Rule 60A-1.002, Florida Administrative Code (F.A.C.). 3-1

3-4. Small Purchases Approaching the Threshold Amount for Category Two (see Appendix A and Rule 60A-1.002, Florida Administrative Code (F.A.C.). 3-1

Chapter 4 OTHER THAN COMPETITIVE PROCUREMENTS 4-1

4-1. Purpose and Scope. 4-1

4-2. Intent. 4-1

4-3. Documentation Required. 4-1

4-4. Single Source Procurement. 4-1

4-5. Emergency Procurement. 4-3

4-6. State Purchasing Office State Term Contracts. 4-5

4-7. Contracts with Other Governmental Agencies. 4-5

4-8. Contractual Services Subject to Regulated Exemptions. 4-6

4-9. Additional Department Requirements for Non-competitive Contracts with Colleges/Universities. 4-8

4-10. Non-Competitive Negotiation Meetings. 4-9

4-11. Additional Requirements for Non-Client Services Contracts. 4-9

Chapter 5 COMPETITIVE PROCUREMENT REQUIREMENTS 5-1

5-1. Purpose and Scope. 5-1

5-2. Intent of the Legislature. 5-1

5-3. Use of Competitive Procedures. 5-1

5-4. Competitive Procurement Procedures. 5-1

5-5. Selecting the Appropriate Competitive Procurement Type. 5-1

5-6. Procurement Manager. 5-2

5-7. Contract Negotiators (For ITN’s Only). 5-2

5-8. Competitive Negotiation Meetings. 5-2

5-9. General Instructions to Respondents – PUR 1001 Form. 5-3

5-10. General Contract Conditions – PUR 1000 Form. 5-3

5-11. Approvals. 5-3

Chapter 6 PROTESTS 6-1

6-1. Purpose and Scope. 6-1

6-2. Issues Causing Protest. 6-1

6-3. Filing the Protest. 6-1

6-4. Posting Bond for Protest Filed. 6-2

6-5. Content of Formal Written Notice of Protest. 6-2

6-6. Department’s Response to Protest. 6-3

6-7. Resolution of the Protest. 6-3

Chapter 7 CONTRACT DOCUMENTS 7-1

7-1. Purpose and Scope. 7-1

7-2. The Contract. 7-1

7-3. Contract Document Profile. 7-1

7-4. Standard Contract. 7-2

7-5. Exceptions to the Mandated Use of the Department’s Standard Contract. 7-3

7-6. Attachment I Design. 7-4

7-7. Statement of Work Format. 7-5

7-8. Other Attachments/Exhibits. 7-8

7-9. Duration of Contract. 7-8

Chapter 8 RATE CONTRACTS 8-1

8-1. Purpose and Scope. 8-1

8-2. Introduction. 8-1

8-3. Rate Contract Management Procedures. 8-1

8-4. Rate Contract Payment. 8-1

8-5. Multi-Circuit Rate Contracts. 8-2

8-6. Multi-Circuit Rate Contract Processing Procedures. 8-2

8-7. Development and Assignment of a Contract Number for Multi-Circuit Rate Contracts. 8-3

Chapter 9 CONTRACT CLAUSES 9-1

9-1. Purpose and Scope. 9-1

9-2. Method of Payment Clauses. 9-1

9-3. Advance Payments – Discussion. 9-5

9-4. Fees for Services. 9-7

9-5. Subcontractors. 9-7