Information Technology Staff Augmentation Contracts

Work Order Procedures Guide 1.4

Department of Information ResourcesMarch 2011

Revised February 2017

iDepartment of Information ResourcesContract Management ProceduresAppendix 62

Revision Sheet

Revision # Date Author Revision DescriptionRev. 0 1/2010 Brian Bell Initial DraftRev. 1.0 3/2011 Skip Bartek Updated GuideRev. 1.1 7/2012 Grace Windbigler Updated GuideRev. 1.2 9/2015 Shannon Kelley Updated GuideRev. 1.3 9/2016 Shannon Kelley Updated GuideRev. 1.4 11/1/16 Shannon Kelley Updated Guide to include sign off for

reading and following guide procedures.Rev 1.5 02/13/2017 Joan Scott Updated Guide

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Table of Contents

Table of Contents......................................................................................................3

Introduction.................................................................................................................4

Organization of this Document.....................................................................................4

Procedure 1.10.10 Procurement of ITSAC Staff Services...............................................5Procedure 2.10.10 ITSAC Request................................................................................11Procedure 2.20.10 ITSAC Draft the Solicitation............................................................12Procedure 2.30.10 ITSAC Vendor Notification.............................................................13Procedure 2.40.10 ITSAC Addenda Creation and Posting............................................14Procedure 2.50.10 ITSAC Solicitation Response Submission........................................15Procedure 2.60.10 ITSAC Administrative Review.........................................................16Procedure 2.70.10 ITSAC Solicitation Response Evaluation.........................................19

Appendices referenced throughout this document can be found on DIR’s local shared drive at T:\BusOps\Procedures\IT Staffing Procedures

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Introduction The Department of Information Resources (DIR) Enterprise Contract Management Section is promulgating these Staffing Services Procedures to 1) document the manner in which Work Orders are planned for, procured and managed, and 2) train new employees in the process of being a successful Enterprise Contract Management Contract Manager. DIR employees are required to strictly adhere to the ethics and conflict of interest standards and policies. To that end, all employees are required to successfully complete the DIR ethics training course.

To develop these procedures, the Enterprise Contract Management Section examined its existing processes, the State of Texas Contract Management Guide, and Texas procurement rules and laws. The goal of this effort is to have the Section’s procedures in compliance with all of the above, as well as establish best practices that are applicable for the section’s use. These procedures are reviewed on an annual basis with coordination and guidance provided by the Office of the General Counsel and Internal Audit Department.

Organization of this DocumentEach procedure is numbered and includes the section number as the prefix and the procedure number for that section. The procedure numbers are sequenced in multiples of ten to allow insertion of new procedures. In section 1, the first procedure is numbered 1.10 and the second procedure is numbered 1.20. In section 2, the first procedure is numbered 2.10 and the second procedure is numbered 2.20.

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Procedure 1.10. Procurement of ITSAC Staff ServicesPurpose To provide guidance and ensure consistency for the management and

procurement for IT staffing services used by DIR Divisions

When to Use Anytime DIR is hiring an IT staffing services contractor

Responsibility

DIR employee hiring the contractor

Procedure 1. Staffing Services contractors may be hired to:a. Provide specialized skill sets not available internally b. Fill a temporary gap in agency staffing,c. Secure additional resources for a project or project management andd. Provide additional resources to temporarily support day-to-day

operations when full time positions are not available2. Staffing Services contractors should be hired as a staff position only and

may not be used to fill a management or supervisory position.3. All Staffing Services contractors must report directly to a DIR employee

who has the responsibility to monitor the contractor’s work and hours.4. The following applies to the conduct of a contractor hired by DIR:

a. Contractors may not represent themselves as a DIR employee. All contractors must represent themselves as a contractor for DIR.

b. Contractors may not sign correspondence on behalf of DIR.c. Contractors may not initiate or participate in the approval process of

agency documents such as contracts, procedures, correspondence, etc.

d. All communications with external entities must be approved by the DIR supervising employee.

5. Needs Assessmenta. When determining the need for a contractor, tasks to be performed

should be assessed to determine if they are best suited for a time and materials based contract (e.g. paid based on hourly rates) or a deliverables based contract. A documented needs assessment must be completed prior to hiring a contractor on a time and materials basis. The needs assessment should include an evaluation of the following factors: Skills – Do the skills required currently exist within the agency?

The first step in determining if a contractor should be hired is determining if the skills already exist in the agency. If so, do the employees with the required skill set have the capacity/bandwidth to perform the required tasks?

Timeliness – If the current staff does not have the required skills,

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how long will it take for current employees to develop the skills? Weigh the time taken to develop the skills versus the time taken to hire a contractor and determine if skills can be developed and still meet the schedule of the tasks needed to be performed.

Permanence – Is the skill set needed to fill a temporary or project specific need or will the skills be needed for longer than six months? If the skills are needed for longer than six months, and/or will be a reoccurring need, consideration should be given to hiring an FTE with the appropriate skills or providing training to existing staff. If the need is for a short term and/or project specific, and will not be needed on a reoccurring basis, use of a contractor can be justified.

Cost effectiveness – Are there more cost-effective alternatives available to complete the required tasks/projects? Was the funding for the contractor included in the Board approved operating budget? Viable alternatives should be reviewed and evaluated to ensure the use of staffing services contractors represent the best solution for the agency. This factor may require the preparation of a formal cost benefit analysis.

6. Procurement ProcessIf the needs assessment supports the hiring of a contractor, the next step is to begin the procurement process. A contractor may be procured through the DIR Staffing Services contracts by either of the two available methods (See DIR website for additional information):

A. Best Value Justification. Use of the Best Value method requires approval according to the Delegation of Authority for Contracts and Amendments (Delegation Matrix) approved by DIR’s Executive Director. The Delegation Matrix is located on the DIR DROP Zone.

B. Competitive Solicitation. For the ITSAC competitive solicitation process, DIR will solicit responses from all ITSAC vendors for a selected labor category. This process will ensure that DIR will have met the pricing request threshold requirements of SB 20 (84R). Employee creates a requisition which shall include the following items:

1. A job description including all tasks to be performed by the contractor

2. The completed needs assessment 3. Estimated time contractor will be needed (this should not be

longer than six months unless there is a cost benefit analysis justifying the extended time)

4. IT Staffing Services position title, technology type and Not to Exceed rate, which can be found in this Not-to-Exceed Rates

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document 5. Completed IT Staffing Services Request Form

Route completed requisition for approval signatures. Once the requisition is received in the Purchasing office, the

purchaser will initiate the competitive solicitation process with the Technology Sourcing Office Division.

Once the contractor resumes are received by the Purchasing office, the resumes will be forwarded to the requestor for interviews.

Interviews shall be completed within two weeks of receipt of the resumes.

Once an acceptable candidate has been identified, the rate will be negotiated with the Staffing Services vendor to ensure DIR receives the best value.

Once a candidate is selected, requestor routes a memo to the Purchasing department which will include:1. Contractor Name2. Hourly Rate3. Documented proof that the rate was negotiated4. Start Date

After selecting a contractor, the DIR employee must submit the name to Human Resources so a criminal background check can be performed prior to the contractor reporting to work (allow approximately one week to complete the background check).

If the background check is acceptable, then the contractor may report to work.

If the background check is not acceptable, then the DIR employee must select a new contractor.

b. Best Value (This also applies to any renewals of contractors initially selected through the competitive solicitation process or the best value process).

Employee creates and routes for approval (per the Delegation Matrix) the following items:

1. A job description including all tasks to be performed by the contractor

2. The completed needs assessment 3. Estimated time contractor will be needed (this should not be

longer than six months unless there is a cost benefit analysis justifying the extended time)

4. Justification letter that must be signed by the requestor and 7

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must include how the contractor’s skills pertain to the tasks to be performed and an explanation of why the job classification and rate are justified

5. Contractor Name6. Staffing Services company name7. Staffing Services DIR contract number8. Hourly rate9. Documented proof that the rate was negotiated10. Documentation that the threshold requirements of Senate Bill

20 (84R) have been met: For a contract with a value of no more than $50,000,

documentation that a quote was obtained from two ITSAC vendors (including one quote from the Texas Industries for the Blind and Handicapped [TIBH]). (Note: The quote from TIBH satisfies the requirements of HRC Title 8 Chapter 122.)

For a contract with a value of more than $50,000 but not more than $150,000, documentation that a request for pricing was submitted to at least three vendors, including one to TIBH.

For a contract with a value of more than $150,000 but not more than $1 million, documentation that a request for pricing to at least six vendors, including one to TIBH.

If DIR receives a TIBH candidate resume, DIR must review the TIBH response and determine whether to select the candidate or not. If the candidate is not selected, provide documentation regarding this decision to the DIR Purchaser so he/she may include this on the agency’s State Use Report as per HRC 122.

11. Complete the ITSAC Acknowledgement Form. Create and route a completed requisition for approval signatures

per the Delegation Matrix. Items 1. through 11. and the approval must be attached to the requisition.

After selecting a contractor, the DIR employee must submit the name to Human Resources so a criminal background check can be performed prior to the contractor reporting to work (allow approximately one week to complete the background check).

If the background check is acceptable, then the contractor may report to work.

If the background check is not acceptable, then the DIR employee must select a new contractor.

Once the contractor reports to work, they must complete a non-8

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disclosure form.

7. Monitoring and Oversighta. DIR employee supervising the contractor is responsible for:

Monitoring the number of hours that the contractor works each week and is responsible for signing off on the contractor’s time card. Staff should use the standard time card that includes the Contractor’s time and detailed activities performed.

Directing, approving, and monitoring all work performed by the contractor.

b. Contractor’s time worked must be documented in detail on a time sheet.

c. Contractor shall detail each activity and the corresponding time spent on each activity on the timesheet.

d. DIR employee supervising the contractor is responsible for the accuracy of the time stated on the contractor’s time sheet.

e. The DIR employee supervising the contractor shall reject any timesheet that does not contain detailed activities for payment. For example, the following entry is considered unacceptable. 3/15/16 – Worked on upgrade project – 8 hours

f. Once the time sheet has been approved by the supervising employee, the time sheet will be routed to the director of the division for which the contractor is working for final sign off.

8. Use of Staffing Services to Provide Services to External Entitiesa. As a Service Provider, DIR often provides services to support its

external customers. Many options exist for providing these services, including but not limited to, using internal resources, IT staffing services contractors, contracting with a managed service provider or a combination of the options.

b. If the use of IT staffing services contractors is chosen as the method for providing services to an external entity, all steps included in the Procurement process described in 6. above must be followed. In addition, the needs assessment must include an analysis of all options considered for providing the external services and a detailed justification for the decision to use a staffing services contractor.

All contract monitoring and oversight steps included in item 7 must be followed as well when staffing services contractors are used to provide services to external entities.

Date of Last Revision

12/2016

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Procedure 2.10.10 ITSAC RequestPurpose To assist Staffing Services Customer’s process their request for ITSAC

services

When to Use When customer is requesting IT staffing services via the competitive solicitation process.

Responsibility Customer

Procedure 1. Complete the IT Staffing Services Request Form and submit to DIR for review and comment

2. E-mail form to ITSAC staff

3. Review request and clarify any uncertainties with Customer

Date of Last Revision

12/2016

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Procedure 2.20.10 ITSAC Draft the SolicitationPurpose To ensure that all solicitations are prepared in a consistent

format in order to clearly communicate the needs and requirements of the solicitation

When to Use Any time an ITSAC Request Form document is submitted to DIR

Responsibility DIR Systems Specialist

Procedure 1. Create draft ITSAC Solicitation

2. Submit to customer for final review and approval.

3. Prepare e-mail notification for respective vendors to receive solicitation.

Date of Last Revision

12/2016

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Procedure 2.30.10 ITSAC Vendor NotificationPurpose To provide the notice of solicitation opportunities to eligible

ITSAC vendors

When to Use Any time a ITSAC Solicitation is issued

Responsibility DIR Contract Specialist

Procedure 1. Contract Specialist issues notice to eligible ITSAC Vendors via e-maila. Eligible vendor list b. Ensure vendors receiving solicitation were awarded

category being solicitedc. Copy customer and appropriate ITSAC staff and ITSAC

Contract Manager

2. Update ITSAC Job Index spreadsheet

3. If, any time, changes to solicitation are required, Proceed to 2.40.10 ITSAC Solicitation Addenda Creation and Posting

4. If no changes to solicitation are required, Proceed to 2.50.10 ITSAC Solicitation Response Submission

Date of Last Revision

12/2016

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Procedure 2.40.10 ITSAC Addenda Creation and PostingPurpose To ensure that any changes or additional information related to

a solicitation are prepared in a consistent format and process and provided to eligible vendors

When to Use Any time it is necessary to amend a solicitation or provide additional information regarding a solicitation

Responsibility DIR Systems Specialist unless otherwise noted

Procedure 1. Document justification for making change or addition

2. DIR Systems Specialist and customer review and reach agreement on changes

3. Contract Specialist issues amended ITSAC Solicitation to eligible Vendors via e-mail. a. Copy customer and appropriate ITSAC staff and ITSAC

Contract Manager

4. Update Staffing Services Job Index spreadsheet “Vendor responses due insert appropriate date & time”

5. Proceed to 2.50.10 ITSAC Solicitation Response Submission

Date of Last Revision

12/2016

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Procedure 2.50.10 ITSAC Solicitation Response SubmissionPurpose To ensure that all responses to ITSAC solicitations are received

and logged in a consistent manner

When to Use When receiving any vendor response to a ITSAC solicitation

Responsibility DIR Systems Specialist

Procedure 1. Vendor response to solicitation is delivered to Requestor (Contracting Specialist) via e-mail to DIRStaffAugmentation@dir.texas.gov

2. Response is date and time-stamped via email.

3. Response is logged in ITSAC Solicitation Response Tally spreadsheet by Contract Specialist.

4. Contract Specialist will update Staffing Services Job Index spreadsheet status to read “DIR Processing”

5. Proceed to 2.60.10 ITSAC Administrative Review

Date of Last Revision

12/2016

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Procedure 2.60.10 ITSAC Administrative ReviewPurpose To ensure solicitation responses received contain all mandatory

response contents as listed within the ITSAC solicitation

When to Use When processing responses to ITSAC solicitations

Responsibility DIR Contract Specialist

Procedure 1. Create Folder in the DIRStaffAugmentation Email Box for new solicitation. Name it with the Solicitation Number and Agency Acronym.

2. Drag Emails for solicitation from DIR Staff Augmentation email IN BOX to specified folder for the solicitation.

3. After the response deadline (as detailed in Section VII of IT Staffing Services Solicitation document), drag attached files from IN BOX Folder to the T:drive; each vendor will submit a Form A (word doc) and a Resume (pdf file). Put the files in a folder named RESUMES. The resumes file needs to be created in the customer folder.

4. Go to the T:drive folder for the customer and print all the Form As. (word docs)

5. Alphabetize the Form A’s by vendor name.

6. Create a Column in the Solicitation Responses Tally FYXX for the Solicitation. Name it with the Solicitation number and Agency code.

7. Go to the Master List Responses Tally and copy the awarded information for the category:

8. Paste the award information into the column for the Responses Tally.

9. Insert a 1 in the column next to each vendor who submitted to the solicitation and total at the bottom. At this point verify that the same number of Form A’s in the

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RESUME folder equal the number printed.

10. Using the Master Exhibit B – ITSAC Category Pricing list determine the NTE (Not To Exceed) rate for the solicitation. Check each Form A to make sure the vendors did not submit rates that exceed the cap.

11. Check Each PDF to make sure the candidates meet the Minimum Requirements. The number of years of experience must equal or exceed the number of years required by the customer.

12. Go to the Master Response Tab in the Solicitation Templates folder and do a Save As to the Customer file. Print the Solicitation and use information from it to fill in the ResponseTab. Fill in column O (# of hours), columns R – V with the Category, Level, Type, Solicitation Number and Customer code. Copy and paste the information all the way to the bottom.

13. Using the Form A’s fill in the Response tab with HUB Sub info as applicable, candidate last name, first name, hourly rate and date of availability.

14. Delete any vendor lines that are blank for those who did not submit to the solicitation. Save.

15. Indicate in column D (Reason for Disqualification) any candidates that are disqualified. Reasons are as follows:Duplicate Submission

Minimum Requirements Not Met

16. Note on each Form A the detailed reason for disqualification.

17. Move the PDF files for the disqualified candidates into a DISQUALIFICATION FOLDER in the RESUMES file.

18. Prepare and send email to customer using the Template_Email_To_Customer letter. Go to Job index to find the contact information for the customer who is to be sent the resumes. Send only the resumes that pass

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the administrative review, the Response Tab and a Vendor Contact List.

19. Update Job Index to reflect “customer reviewing resumes” status.

20. Notify applicable vendors of disqualification for “Minimum Requirements Not Met” via email

21. Send candidate name and vendor names to ITSAC Contract Manager listing disqualified vendors for “Duplicate Submissions”

22. Proceed to 2.70.10 ITSAC Solicitation Response Evaluation

Date of Last Revision

12/2016

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Procedure 2.70.10 ITSAC Solicitation Response EvaluationPurpose To establish a process for Customer review and selection of

project resources and/or notification of other actions

When to Use Anytime responses to ITSAC solicitations are being evaluated

Responsibility Customer unless otherwise noted

Procedure 1. Customer reviews candidate resumes.

2. Customer determines which candidates to interview, customer contacts vendors and as applicable schedules and conducts interviews.

3. Customer notifies Systems Specialist of weekly status:

4. Contract Specialist will update Staffing Services FY#### Job Index (Appendix 24) status based on information received from customer

5. Contract Specialist will notify all vendors with weekly status via email.

6. Customer provides DIR with completed Response Tab spreadsheet upon their award choice via email.a. If Customer has made selection

i. Contract Specialist notifies all other vendors that the customer has made an award

b. If Customer requires additional resumesi. Customer is instructed to provide revised

specifications to Contract Specialistii. Proceed to 2.20.10 ITSAC Draft the Solicitation

c. If Customer requests cancellation of ITSAC Solicitation i. Update Staffing Services FY#### Job Index (Appendix

24) status to reflect “Canceled at Customer’s request”

ii. Contract Specialist will notify Staffing Services vendors of cancellation

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Date of Last Revision

12/2016

19Department of Information ResourcesContract Management ProceduresAppendix 62