Every student. every classroom. every day. Professional Services Contracts Overview and Current Processes

every student. every classroom. every day.

Professional Services Contracts

Overview and Current Processes

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Presentation Overview

Today we will explore:• Definition of professional services

contract• Four main types of contracts• Eight steps to enter a standard

professional services contract

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Definition

A Professional Services Contract is a formal agreement between the District and an individual or agency.

Contracts are used to purchase a service (as opposed to a tangible good) from an external service provider.

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Basic Statistics

Year to Date Data (7/1/08-3/2/09)

Number of contracts 1158

Dollar value $43,053,220

Number of originators ~180

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Funding Resource

General Purpose8%

Title 18%

Special Education24%

GO Bonds Measure A8%

TIIG Block Grant1%

SIP Block Grant0%

Economic Impact Aid1%

Economic Impact Aid - Limited English Proficiency

1%

Measure E6%

Other18%

After School (21st Century and Prop 49)

25%

Data from IFAS 7/1/08 - 3/2/09

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Types of Contracts

There are four distinct types of contracts, each with a different approval process.

1. Standard Professional Services Contract: Used for almost 90% of all contracts and focus for today.

2. Facilities Contract3. After School Lead Agency MOU4. Programs for Exceptional Children Non-

Public Schools and Agencies Master Contract

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Overview of Contracts Process

1. Need Identified

2. Contractor Selected

3. Terms Negotiated

4. Contract Generated

5. Contract Approved

7. Work is Performed

8. Invoice Submitted and Payment Made

6. Purchase Order Issued

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1. Need Identified

A principal or manager identifies a need for a consultant service.

In general this need should be either:1. Time Limited Project (not ongoing

work)2. Work Requiring Specialized Skill Set

(such as dance instructor in after school program)

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2. Contractor is Selected

Contractors are selected by the principal or manager originating the contract.

List of Preferred Vendors Instructional Services maintains a list of recommended vendors with information about their services on the intranet.

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3. Negotiation

The principal or manager negotiates directly with the contractor. Together they agree on:

1. Scope of Work – Cannot overlap with bargaining unit work.

2. Dates of Service – Work cannot begin until after contract is approved and most contracts cannot span multiple fiscal years.

3. Hourly Rate of Pay – Must be within OUSD Billing Rate Guidelines.

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4. Generation of Contract

The principal or manager (or typically their support staff) uses contract template to create the contract. The template is a PDF form found on the intranet.

In February a new version of the template that could be saved was made available.

The packet includes:– Board Memo– Approval Routing Form– Formal, legal contract– Place to identify funds and

requisition that reserves budget

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Generation of Contract Cont.

The contract packet requires four attachments:

Attachment Description

1 Proof of Insurance All agencies must provide proof of general liability and workers compensation insurance. Independent consultants with contracts over $50,000 must provide proof of general liability insurance.

2 Proof of Background Clearance

Agencies must provide list of employees working on site with fingerprint clearance date. Independent consultants must complete the HRSS Pre-Consultant Screening Process, which includes fingerprinting.

3 Statement of Qualifications

Resume or work history.

4 Proof of Negative TB Status

Agencies certify that this documentation is on file for staff. Independent consultants provide documentation from their health care provider.

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5. Approval Process

Please refer to handout

Contract Approval Timeline• Contracts Requiring

Board Approval: 6 weeks*• Contracts Eligible for

Board Ratification: 3 weeks*

*Plus one week for processing time to issue PO.

Principal or Manager Initiates Contract

Is the funding source restricted?

Resource Manager (i.e. State and Federal or After School)

Reviews to see that it is a compliant use of funds and has been approved by School Site

Council

Network or Department Executive OfficerReviews scope of work to see if aligns with needs

of school or department

Member of CabinetReviews for appropriate use of consultant (i.e. Should this be an employee position?)

Is vendor over $72,400 for the fiscal year?

Superintendent Reviews

Board of Education Approves

Procurement Does final check that contract

requirements have been met and issues PO

Superintendent Approves

Procurement Does final check that contract

requirements have been met and issues PO

Board of Education Ratifies

Yes

No

YesNo

Page 1

Current Professional Services Contract Approval Process – Paper Based**Boxes that are bolded are approved on paper and electronically in IFAS

Using the OUSD template contract?

Legal DepartmentReview requested non-

standard contract language

No

Yes

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6. Purchase Order Issued

Last check of requirements (fingerprint, insurance, etc.)

Generate PO in IFAS Notify principal or manager via email Send letter to consultant

After the contract is approved, Procurement processes the purchase order (PO):

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7. Work Performed

Performance is monitored by the principal or manager.

Consultants can be released at any time.

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8. Invoice Submitted and Payment Made

1. Invoice Submitted: Consultants submit their invoice to the principal or manager.

2. Work Verified: The principal or manager signs the invoice indicating the work was performed and forwards the invoice to Accounts Payable (often the consultant drops invoice off at Accounts Payable).

3. Invoice Paid: Accounts Payable pays the invoice using the funds in the PO. Invoices are paid twice a month, according to the AP calendar.

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Variations to Contract Process

There are three types of services that require a different contract template and approval process:

1. After School Lead Agency MOU2. Programs for Exceptional Children

Non-Public School (NPS) and Non-Public Agency (NPA)

3. Facilities

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After School Lead Agency MOU

Service: After School Lead Agencies administer after school programs at partner sites.

Reason for Variation: The nature of this service requires additional terms in the Memorandum of Understanding, such as Field Trip policy and attendance taking procedures. Page 1

After School Lead Agency MOU Approval Process – Paper Based**Boxes that are bolded are approved on paper and electronically in IFAS

School Site Identifies lead agency for coming academic year

After School ProgramsGenerates MOU using template contract

Lead AgencyCompletes required attachments with principal,

obtains principal signature

After School Program OfficeCreates requisition after funds are loaded in

early July

PrincipalApproves requisition in IFAS

Legal Review

ProcurementFinal check of contract requirements and issue

PO

Network Executive Officer Review

Member of Cabinet Review

Board of Education Approve

Electronic approval

Paper approval

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Programs for Exceptional Children NPS and NPA Master

Contracts

Service: NPS’s and NPA’s provide services to students with exceptional needs that cannot be met through District Programs.

Reason for Variation: OUSD is part of a nine district consortium that uses the same contract, master contract structure and negotiated rates.

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Facilities Contracts

Services: Non-construction facilities related services, such as architects.

Reason for Variation: Requirements for vendors are slightly different. Facilities also has a different structure than other departments and is able to streamline the generation of contracts.

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Questions?

The next presentation will explore the contract process improvement project, including:

– Changes to the process made this year– Current pain points– Planned improvements in 2009-2010

Documents

Every student. every classroom. every day. Professional Services Contracts Overview and Current Processes