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CALIFORNIA PUBLIC UTILITIES COMMISSIONPolicies and Procedures Manual

Volume 1 - Contract Procurement

Revised March 30, 2007

About This Manual

How we got here

This Policies and Procedures Manual was produced by the CPUC’s Office of Performance Excellence (OPE) with the substantial assistance of several CPUC staff with expertise in contracting. The CPUC staff provided the expertise in describing how the contracting process works, and the OPE worked with those staff to visually map the many individual processes and optimize them. The OPE used this process information, along with voluminous additional information from state contracting regulations, to design and assemble this manual.

The manual is designed to be a user-friendly guide to the detailed and exacting process of procuring a contract for the CPUC, and has these distinct features:

It’s process-driven, containing procedural step lists for each contract type based on detailed process maps for those contract types.

It’s designed like a website, enabling someone who wishes to procure a contract to first gather some overview information, identify the particular type of contract that is appropriate, and then dive deeper into only those areas where more detailed information is needed. The intent is to give you rapid access to all the information you need without your having to wade through material unnecessary for your purposes.

The manual is intended to be used in conjunction with the Personal Services & Consultant Contracts website on the CPUC Intranet, where you will find hyperlinks to supporting documents, examples, and state contracting regulations.

Start your exploration of this document with Chapter 1, which contains information on how to use this manual.

Acknowledgments

A special thanks to Bob Smith, Contracts Office Manager, who devoted many hours to providing essential contracting information and reviewing the materials that comprise this manual. Other CPUC staff that provided valuable information and recommendations on how the contracting process should work at the CPUC include:

Nellie Abrena Ed QuanTim Drew Dave ShantzSommer Harvey Richard SmithChuck Magee Joyce SwisherBarbara Morton Ann White

Give us your feedback!

Your feedback is important in making the contracting process as effective as possible in supporting the work of the CPUC. All CPUC staff that use this manual to help them in their contract procurement efforts are encouraged to provide feedback any time - on what works well, what doesn’t work, what should be added or subtracted, what’s incorrect, or how things could be

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clarified or made better. Please provide comments and suggestions via e-mail to the OPE (Jeff Kasmar, JK2, ext. 32506).

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TABLE OF CONTENTS

INDEX OF FIGURES......................................................................................................6

1. INTRODUCTION AND OVERVIEW......................................................................71.1. How to Use This Manual........................................................................................71.2. Chapter Summaries.................................................................................................8

2. BASIC CONTRACTING CONSIDERATIONS2.1. Definition of a Contract........................................................................................102.2. Broad Overview of the Contracting Process........................................................102.3. Elements of a Valid Contract................................................................................102.4. Authority to Sign a Contract.................................................................................11

3. CONTRACT FUNDING3.1. Fiscal Components................................................................................................123.2. Lifespan of Funds.................................................................................................123.3. Charges against Funds..........................................................................................12

4. CONTRACT ROLES & RESPONSIBILITIES.....................................................14

5. INTERACTING WITH DEPARTMENT OF GENERAL SERVICES (DGS)...17

6. SUMMARY DESCRIPTION OF CONTRACT TYPES6.1. Overview...............................................................................................................18

Comparison of Contract Features..............................................................19 Time Needed for Contract Types...............................................................20

6.2. Personal Services with IFB...................................................................................216.3. Personal Services with RFP..................................................................................216.4. Non-Competitive Bid and Sole Source.................................................................226.5. Under $5000.........................................................................................................226.6. Expert Witness......................................................................................................226.7. Legal Services.......................................................................................................236.8. Master Service Agreements (MSA)......................................................................236.9. California Multiple Award Schedules (CMAS)...................................................246.10. State of CA Inter-Agency Agreement.................................................................246.11. Other Governmental Agency Agreements..........................................................246.12. Utility Reimbursable...........................................................................................246.13. Environmental (CEQA)......................................................................................256.14. Emergency..........................................................................................................25

7. ACRONYMS..............................................................................................................27

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TABLE OF CONTENTS (Cont.)

8. INITIATING A CONTRACT PROCUREMENT..................................................28

9. DETAILED CONTRACT PROCUREMENT STEP LISTS 9.1. About the Step Lists..............................................................................................299.2. Using the Step List as a Tracking Document.......................................................299.3. Hummingbird Refresher.......................................................................................309.4. Availability of Process Maps................................................................................30

Contract Step Lists Personal Services with IFB........................................................................31 Personal Services with RFP.......................................................................34 Non-Competitive Bid and Sole Source......................................................38 Under $5000...............................................................................................40 Expert Witness...........................................................................................42 Legal Services............................................................................................44 Master Service Agreements (MSA)...........................................................46 California Multiple Award Schedules (CMAS)........................................49 State of CA Inter-Agency Agreement........................................................52 Other Governmental Agency Agreements.................................................54

10. STANDARD CONTRACTING FORMS AND EXAMPLES..............................56

11. CONTRACTING REGULATIONS.......................................................................57

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TABLE OF CONTENTS (Cont.)

APPENDIX 1 – Contract Request Form (CRF) with all Sections...............................58

APPENDIX 2 – CPUC Contract Request Summary....................................................59

APPENDIX 3 – Invitation for Bids (IFB)......................................................................60

APPENDIX 4 – Request for Proposals (RFP)...............................................................61

APPENDIX 5 – Posting Documents...............................................................................62

APPENDIX 6 – Conducting a Bidders’ Conference.....................................................63

APPENDIX 7 – Creating an IFB or RFP Addendum..................................................64

APPENDIX 8 – Q&As in Response to an IFB or RFP.................................................65

APPENDIX 9 – Reviewing Proposals for Contractual Compliance...........................66

APPENDIX 10 – Posting and Notification Requirements............................................68

APPENDIX 11 – Preparing a Formal Statement of Work (SOW).............................69

APPENDIX 12 – Preparing a Customized Contract Package.....................................70

APPENDIX 13 – Justifying Not Conducting a Market Survey...................................72

APPENDIX 14 – Documenting a Non-Competitive Bid Justification........................73

APPENDIX 15 – Conducting a Market Survey............................................................74

APPENDIX 16 – Criteria for Evaluating Legal Firms and Expert Witnesses..........75

APPENDIX 17 – Request for Offer (RFO) for a CMAS or MSA Contract...............76

APPENDIX 18 – Finding Qualified CMAS Contractors.............................................77

APPENDIX 19 – Soliciting, Receiving, and Evaluating CMAS Offers......................78

APPENDIX 20 – Fair Housing Form.............................................................................79

APPENDIX 21 – Interviewing and Evaluating CMAS Candidates............................80

APPENDIX 22 – Expert Witness Contract Preparation and Confidentiality...........81

APPENDIX 23 – Utility Reimbursable Contracts........................................................82

APPENDIX 24 – Standard Terms and Conditions.......................................................86

APPENDIX 25 – Contract Certification Clauses..........................................................88

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INDEX OF FIGURES

Figure 6.1 – Comparison of Contract Features.............................................................19

Figure 6.2 – Time Needed for Contract Types (business days)...................................20

Figure A12.1 – Contents for Standard Contract Packages..........................................71

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1. INTRODUCTION AND OVERVIEW

1.1. How to Use This Manual

1.1.1. Just Getting an Overview

If you’re here primarily to obtain an overview of the contract procurement process, we recommend you read all the chapter summaries in this chapter and review, at a minimum, the full chapters marked with an asterisk (*). Other chapters are intended primarily for Contracts Office or Budget Control Officer Personnel.

1.1.2. Procuring a Contract

If you’re going to be procuring a contract, follow these five steps:

A. ASSEMBLE YOUR CONTRACTING RESOURCE MATERIALS Action - Print out this Policies and Procedures manual to facilitate

moving through the materials, and then locate the Contracts Office website on the CPUC Intranet via the following path:Information & Management Services / Personal Services & Consultant Contracts Branch

B. OBTAIN AN OVERVIEW OF THE CONTRACTING PROCESS Action - Read all the chapter summaries in this chapter and review

the full chapters marked with an asterisk (*)

C. INITIATE THE CONTRACT PROCUREMENT PROCESS Action – Follow the instructions in Chapter 8, “Initiating a

Contract Procurement”

D. IMPLEMENT THE CONTRACT PROCUREMENT PROCESS Action – Complete the sequence of actions on the “Contract

Procurement Step List” that will be selected for you by the Contracts Office Manager. Note that some steps are to be completed by you, the Contract Project Manager, and some by the Contracts Officer. As you go through the steps, you will be referred to supporting materials in the appendices for the more complex steps. The appendices, in turn, may refer you to the Contracts Office website to obtain blank contract forms, examples of filled-out forms, and references to underlying state regulations.

E. TRACK YOUR PROGRESS Action – Follow the instructions in Paragraph 9.2, “Using the Step

List as a Tracking Document,” and Paragraph 9.3, “Hummingbird Refresher”

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1.2. Chapter Summaries

Chapter 1 - INTRODUCTION AND OVERVIEW (*)

You’re reading this chapter.

Chapter 2 - BASIC CONTRACTING CONSIDERATIONS (*)

Provides basic information from state contracting regulations regarding the specific definition of a contract, a broad overview of the contracting process, elements of a valid contract, and who at the CPUC has the authority to sign a contract.

Chapter 3 - CONTRACT FUNDING

Provides information for division BCOs regarding the fiscal components of contracts, the lifespan of the funds, and charging against those funds.

Chapter 4 - CONTRACT ROLES AND RESPONSIBILITIES (*)

Provides a summary of the contracting responsibilities of all CPUC staff and state agencies involved in the procurement of a contract. As you will see, the efforts of several parties are required to successfully procure contracts.

Chapter 5 - INTERACTING WITH DEPARTMENT OF GENERAL SERVICES (DGS)

Intended primary for Contracts Office personnel, this chapter identifies key contacts at DGS, and an overall protocol for interacting with them, including how and when and by whom they should be contacted. DGS approval is required for all contracts, regardless of type, exceeding $50,000.

Chapter 6 - SUMMARY DESCRIPTION OF CONTRACT TYPES (*)

Provides an overview understanding of the various contract types used at the CPUC. Two summary charts highlight the features and timelines of the contract types. Each contract type is summarized in narrative form, followed by references to specific chapters in state regulatory manuals if more detailed information is desired.

Chapter 7 - ACRONYMS

Like any good state agency, the CPUC has its share of acronyms. These are the most common ones related to contracting.

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Chapter 8 - INITIATING A CONTRACT PROCUREMENT (*)

Contains the initial steps that should always be taken prior to initiating the procurement of any type of contract.

Chapter 9 - DETAILED CONTRACT PROCUREMENT STEP LISTS (*)

Contains specific, detailed procedures, in sequence, for each type of contract, as well as instructions on a recommended process for tracking the overall procurement effort. Any step required more detailed information has an appendix noted.

Chapter 10 - STANDARD CONTRACTING FORMS AND EXAMPLES

Lists the most commonly used forms for contract procurement at the CPUC. The Contracts Office website has hyperlinks to electronic versions of the blank forms for use in contract preparation, and hyperlinks to filled-out examples of many of the forms and documents.

Chapter 11 - CONTRACTING REGULATIONS

Lists the primary California State regulations for contract procurement. The Contracts Office website has hyperlinks to the full documents contained on the web.

APPENDIX 24 – Standard Terms and Conditions

These are appended to all contracts and must be followed by any agency entering into a contract with the CPUC.

APPENDIX 25 – Contract Certification Clauses

For any contract NOT with another governmental agency, the Contractor must sign the certification form contained in this appendix, and adhere to the clauses contained therein, which are appended to the contract.

OTHER APPENDICES

The step lists described in Chapter 9 contain many steps that required more detailed information in order to understand how to complete that step. This detailed information is contained in the appendices, which are referenced from the step lists. The appendices typically contain helpful information such as which standard forms are required for a particular step, and which specific chapters in underlying state regulations contain more detailed information on the subject.

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2. BASIC CONTRACTING CONSIDERATIONS

2.1. Definition of a Contract

“A contract is an agreement to do or not to do a certain thing” (CC § 1549). It gives rise to an obligation or legal duty enforceable in an action at law (CC § 1428). A contract sets forth terms, conditions, and the statement of all work to be performed.

2.2. Broad Overview of the Contracting Process

Following are major elements of the State of California’s contracting process. (Detailed process steps for each major contract type are contained in Chapter 9 of this manual.)

Someone within the agency must identify the need for a service, whether the need is for a routine renewal of an existing essential service or the acquisition of totally new or unique services.

Services are required to be performed by civil service employees whenever feasible. Such feasibility must be considered before seeking a contract (GC § 19130). As part of the CPUC’s contracting process, justification for seeking contracting services is documented in DGS Form STD 215.

Costs and the availability of funds are always a factor. Alternatives range from using already-budgeted funds for simple services to seeking an appropriation.

Assuming a contract is justified and funds are available, the contractor selection method depends on the services involve and the circumstances. Different methods impose different requirements and procedures.

Formal competitive bidding, which involves a wide range of factors and decisions depending upon circumstances, is generally required by law or policy. In certain instances, non-competitive bidding is allowed, but must be approved by DGS.

A contract must be processed for signature, approval, and distribution in accordance with State contracting regulations.

Management of the contract must be built into the contract to facilitate measurement of achievement and measurement of contractor performance.

2.3. Elements of a Valid Contract

Each contract must contain the following information:

Identification of the parties Term for the performance of completion of the contract (dates or length of time) Consideration (The contract must clearly express the maximum amount to be paid

and the basis on which payment is to be made: e.g., a fixed amount regardless of time spent, billing based on time spent at a specified rate plus actual expenses, or cost recovery.)

Scope (The work, service, or product to be performed, rendered, or provided. Clear and concise language must be used to describe the scope.)

Other general or unique terms and conditions of the agreement Signature by a person for each party who is authorized to bind that party

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2.4. Authority to Sign a Contract

Contracts at the CPUC are signed for authorization by the Executive Director or designee.

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3. CONTRACT FUNDING

3.1. Fiscal Components

Publicly-funded contracts have two fiscal components: authority and appropriation. Authority refers to the ability of the State to pay for validly rendered services pursuant to the contract. Various aspects of valid authority includes whether services were rendered within the term (e.g. June 1, 200X through April 30, 200X), within the maximum amount payable, and within the scope of the contract. Appropriation refers to the funds that are set aside, or encumbered, for authorized payments.

3.2. Lifespan of Funds

While a contract may be governed by calendar years, appropriations of a contract are measured by fiscal years. A fiscal year begins July 1 and ends June 30. Appropriations generally need to be spent within three (3) fiscal years upon encumbrance unless exempted.1 Because most Commission contracts are funded through the annual Budget Act, the last opportunity to encumber funds is the last day of each fiscal year.2 This encumbrance must be registered with the State Controller’s Office (SCO) through our Fiscal office.

After the third fiscal year, the remaining balance reverts, regardless of the terms of the agreement. Project managers must be aware of the difference between calendar and fiscal years. For example, a contract has a term from June 25, 2005 through June 25, 2008 and funds are set aside from the 2004-05 fiscal year. While the contract lasts three calendar years, the agreement spans four fiscal years (2004-05; 2005-06; 2006-07; 2007-08). Because the appropriation reverted at the end of the third fiscal year, June 30, 2007, the 2004-05 appropriation will be unavailable to cover valid expenditures from July 1, 2007 through June 30, 2008.

3.3. Charges Against Funds

When the Fiscal Office schedules a payment for a contract, they will send the State Controller’s Office (SCO) a schedule detailing the contract number and contractor, the amount to be paid, and the fiscal year from which the funds are drawn. To mitigate the three (3) fiscal year lifespan of funds, Fiscal will always charge all costs against the oldest encumbered funds. This occurs even in contracts that have multiple projects encumbered in them. The SCO is only concerned with whether or not a contract exists and that there are sufficient funds. The CPUC is responsible for keeping track of the balances of specific projects through Program Cost Accounts (PCA) codes.

1 Part of Government Code 16304.1 states “Upon the expiration of two years, or four years in the case of a fund made up of federal funds, following the last day of the period of its availability, the undisbursed balance in any appropriation shall revert to and become a part of the fund from which the appropriation was made.” 2 “The following sums of money and those appropriated by any other sections of this act, or so much thereof as may be necessary unless otherwise provided herein, are hereby appropriated for the use and support of the State of California for the 200[X]-0[X] fiscal year beginning July 1, 200[X], and ending June 30, 200[X].” Section 2.00 (a) of the Budget Act.

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If Fiscal receives an invoice for a contract in which the funds have already reverted, they will schedule payment through current year funds, as required by law.3 These costs count as a Direct Expense Charge and will be reflected in the appropriate division’s expense account. The State Controller normally requires ten business days to process scheduled payments. Payments are determined by the date the payment is issued, not the date the SCO receives a schedule. Thus, for contracts whose appropriations may revert, its scheduled payment must be received by the SCO by early June to ensure payments prior to the new fiscal year.

3 Part of Government Code 16304.1 states “Subsequent to reversion any unpaid encumbrance against theappropriation may be paid from any current appropriations available for the same purposes.”

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4. CONTRACT ROLES AND REPONSIBILITIES

4.1. Commission

The California Public Utilities Commission (CPUC) is responsible for its own contracting program. This responsibility includes ensuring the necessity and reasonableness of personal service/consultant services due to a lack of expertise within State service (Government Code § 19130), securing appropriate funding based upon a reasonable budget, complying with laws and policies, writing a contract in a manner that safeguards the State’s interest including not seeking artificial exceptions and circumvention of competitive bidding (ex “pass-through” contracts or ordering a regulated utility to enter into the contractual agreement with the consultant in lieu of a State-issued Commission contract). (State Contracting Manual 1.04) Failure to comply may result in the inability to effectively oversee state resources, as well as violate state contracting laws and be subject to criminal prosecution. Public Contract Code § § 10420 – 10426 criminalizes willful violations of the State acquisition process.

4.2. Contract Project Manager

The Contract Project Manager is the “technical” expert and overall manager of the personal services contract procurement process for a specific project, with assistance from the Division’s BCO. Specific duties are detailed in the contract procurement step lists contained in Chapter 9 of this manual.

4.3. Contracts Office

The Contracts Office administers all contracts pursuant to SCM guidelines and with the support of the Executive Director, who resolves disputes surrounding appropriate procurement methodologies; advises the Contract Project Manager on contracting options, appropriate forms, policy issues, and procedural guidelines; provides ongoing expertise and training, and specialized training in conjunction with OLS, to Commission staff; represents the Commission as the primary liaison with DGS/OLS, DGS/Procurement and other State and Federal Contracts Offices during the entire contract process. More specific duties are detailed in the contract procurement step lists contained in Chapter 9 of this manual.

4.4. Executive Director

The Executive Director signs the initiating Contract Request Form; as required per Governor’s Executive Order, signs all STD Form 821s (Request for Advertising Exemption) and attached Non- Competitive Bid Justifications; approves any agreement entered into using PU Code 632 Exemption (CPUC contract approval for extraordinary circumstances only) and Emergency Contracts (prior to the commencement of work); signs all STD Form 213s (Standard Agreement); pre-approves waivers to the five interview policy for Exempt contracts; adjudicates all contract disputes between the Consultant and the Commission pursuant to language established in the Agreement; adjudicates all contract disputes between the Contracts Office, the Contract Project Manager and/or ALJ/Commissioner’s Office regarding appropriate solicitation methods, contract form, or solicitation time-frame; ensures

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that the Commission’s contracts serve the public’s interests, are within the Commission’s regulatory responsibilities, conform with state rules and regulations, and do not contain inherent conflicts of interest.

4.5. Deputy Executive Director

The Deputy Executive Director signs the initiating Contract Request Form and supports the Executive Director in carrying out any of that position’s contracting responsibilities. In overseeing and prioritizing contracts within the CPUC, The Executive Director and Deputy Executive Director provide a broad perspective that includes the interests of Commissioners, Legislators, all CPUC Divisions, and all utility stakeholders.

4.6. Chief, IMS Division

The Chief of the IMS Division signs the initiating Contract Request Form and ensures that any newly-initiated contract satisfies overall CPUC budgetary constraints and timelines.

4.7. Division Director

The Division Director signs the initiating Contract Request Form and ensures Division funding is available and consultant services are required, including determining when civil service employees are neither available nor have the appropriate expertise to complete the scope of the agreement; ensures the Contract Request Form contains justification of need and defined scope of work; disallows any commencement of work prior to completion of the contract procurement process, or any contract outside the State’s contracting guidelines and/or written directly with utility.

4.8. Division BCO

The Division BCO signs the initiating Contract Request Form, assigns Unit, Object, and PCA codes, and ensures Division funds are available for any proposed contract.

4.9. Supervisor

The Contract Project Manager’s supervisor signs the initiating Contract Request Form and ensures that the scope of work for a proposed contract is necessary and appropriate for the Branch’s responsibilities.

4.10. DGS, Procurement Division

The DGS Procurement Division approves Non-Competitive Bid Justifications and Exemptions from Advertising. Additionally, the Division maintains a Master Services Agreement (MSA) list that enables Project Managers to select pre-qualified contractors in lieu of undertaking a competitive bid process.

4.11. DGS, Office of Legal Services

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The Office of Legal Services of DGS approves all contracts in excess of $50,000 and contract amendments; provides pre-approval for any RFP/IFB contract solicitation anticipated to extend past 24 months and when cost points in a secondary procurement are less than 30 points; provides technical resources for all contract-related statutory requirements and training; publishes the State Contracting Manual (SCM); adjudicates protests filed by competing bidders.

4.12. Advisory Boards

Advisory Boards are authorized by the Commission to provide services, advice, and representation for consumers for utility services involving public purpose funds. SB 669 codified Telecommunication Advisory Boards and established a fiscal process for public purpose funds. Contracts generated by or on behalf of the Boards must be compliant with State contracting guidelines. The Contracts Office is the primary resource used by the boards to ensure compliance.

4.13. Commission Legal Division

The Commission’s Legal Division provides unbiased legal assistance to staff and the Contracts Office in the area of statutory interpretation, as well as project management for contracts containing attorney work product and work place issues. They may be requested by the Contracts Officer to intercede with DGS/OLS to resolve procedural or statutory conflicts. Note that all CEQA contracting issues are now under the jurisdiction of the Legal Division’s assigned attorney.

4.14. Commission Administrative Law Judge (ALJ)

Commission ALJs issue regulatory decisions that may include the necessity to procure Personal Services Consultants. When such a procurement is necessary, the ALJ meets with the Contracts Officer to discuss State procurement rules and time frames prior to issuing a decision ordering the procurement of a consultant. Also, the ALJ must ensure that contract funds are available in the Division’s budget. Note that the Decision Impact sheet will indicate need for consultant, and the Division Director will verify budget availability.

4.15. Commission and Commissioners’ Advisors

The Commission issues regulatory rulings, either as a five-member Commission or through an Assigned Commissioner Ruling, which may include instructions to staff to obtain a Personal Services Consultant(s). Commission Advisors should meet with the Commission’s Contracts Officer prior to issuing rulings that include procurement of consultants to discuss procurement options and time frames in the solicitation process.

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5. INTERACTING WITH DEPARTMENT OF GENERAL SERVICES (DGS)

A very significant external interaction in the contract procurement process occurs with DGS, who has overall jurisdiction over all state contracts, and delegate responsibility to the CPUC for drafting all contract types. They require review and approval of all contracts over $50,000. They are the organization that create and maintain the state contracting manual, and provide training for state contracting professionals.

In order to promote a productive, efficient, and timely relationship with DGS, the Contracting Office Manager and staff:

Attend DGS training classes – Contracting Office Manager and staff regularly attend classes offered in a DGS “Contracting Academy,” intended ultimately to contain basic, intermediate, and advanced curriculum. As of March 2007, DGS has only offered a basic two-week class that has been attended by the CO Manager and staff.

Use DGS-recommended forms & language – DGS offers “model” solicitation documents (e.g., RFP, IFB, RFO) that are utilized by the Contracting Office and are available via the examples in The “Contract Procurement Toolkit” on the Contracts Office website.

Use a highlight cover page when sending a contract to DGS for approval that describes the purpose and importance of the contract (e.g., “The Legislature has directed us to implement this program by a certain date, etc.”)

Follow a specific protocol for DGS interaction :o Contact them through their preferred point of contact in the Office of

Legal Services (Richard Goldberg, Contract Analyst)o Initiate contact from the CPUC by the Contracts Office Manager (Bob

Smith) or the assigned Contract Officero Contact them only at appropriate times regarding a particular contract

status. Typically that means not calling them until after the standard DGS processing time for approving a solicitation document (12 business days)

o Inquire tactfully regarding contract status, asking when we can expect their response on a solicitation document if they are late

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6. SUMMARY DESCRIPTIONS OF CONTRACT TYPES

6.1. Overview

This chapter provides an overview of the various contract types used at the CPUC, including the following information:

Figure 6.1 is a chart that compares the features of each contract type Figure 6.2 is a chart that provides detailed time estimates for the various stages of

contract procurement The paragraphs following provide a summary description of each contract type, with

references to source documents and regulations containing more detailed information. Those documents and regulations can be accessed in the “Contract Procurement Toolkit” on the Contracts Office website.

Following are the contract types described in summary form below:

Personal Services with IFB Personal Services with RFP Non-Competitive Bid and Sole Source Under $5000 Expert Witness Legal Services Master Service Agreements (MSA) California Multiple Award Schedules (CMAS) State of CA Inter-Agency Agreement Other Governmental Agency Agreement Utility Reimbursable Environmental (CEQA) Emergency

Detailed step lists are contained in Chapter 9 for all these contract types except Utility Reimbursable, Environmental (CEQA), and Emergency. Other contract types used at the CPUC but not documented herein include:

Information Technology – These contracts are administered under the Information Services Branch

Business Service (commodity procurements) – These contracts are administered under the Business Services Section

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Figure 6.1Comparison of Contract Features

Type of Contract Types of Services DGS Legal Services Approval Required?

Dollar Limit

Approximate Weeks to Procure

Contract (*)Personal Services with IFB Simple, common, or routine

services requiring personal or mechanical skills

Yes, if >$50,000 17

Personal Services with RFP Complex services for which professional expertise is needed where different methods & approaches may be required

Yes, if >$50,000 19

Non-Competitive Bid Only one supplier available Yes, if >$50,000

Plus DGS PD approval

9

Under $5000 Various consulting services No $5,000 4

Expert Witness Expert witness for pending litigation, including supporting work such as providing reports & depositions

Yes, if >$50,000 8

Legal Services Special legal expertise Yes, if >$50,000 8

MSA Various consulting services (e.g., Hearing Reporter, Lexis, etc.) where consultants are on a pre-bid agreement list

Yes, if >$50,000 9

CMAS Various non-IT consulting services offered by consultants pre-qualified by DGS

Yes, if >$50,000 $250,000 12

State of CA Inter-Agency Services offered by other state agencies (e.g., SCO, SPB, AJ, UC)

Yes, if >$50,000 6

Other Governmental Agency Services offered by other governmental agencies (e.g., CPS HR services, Community College- Training)

Yes, if >$50,000 6

CEQA Environmental Environmental Services for CEQA

Yes, if >$50,000 13

(*) Subtract 2-3 weeks, except for contracts under $5000, if DGS approval not required

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Figure 6.2Time Needed for Contract Types (business days)

CONTRACT TYPES

SUMMARY STEPS IN PROCURING A CONTRACT

Pers

onal

Ser

vice

s with

IFB

Pers

onal

Ser

vice

s with

RFP

Non-

Com

petit

ive B

idUn

der $

5000

Expe

rt W

itnes

sLe

gal S

ervi

ces

MSA

CMAS

Stat

e of C

A In

ter-

Agen

cyO

ther

Gov

ernm

enta

l Age

ncy

CEQ

A

Obtain preliminary info from BCO; send project description to CO; kick-off meeting with CPM & CO to review contracting process & fill out top page of Contract Request Form (CFR)

3 3 3 3 3 3 3 3 3 3 3

Prepare Statement of Work (SOW); finalize CRF & obtain all approval signatures

5 5 5 3 3 3 3 3 3 3 5

Prepare solicitation document (IFB, RFQ, RFO, or RFP); place solicitation document on DGS web site; hold bidders' conference if required & post Q&As on DGS web site; receive proposals over specified proposal period

31 33 15 15 26

Evaluate proposals; conduct interviews as required; select winner

3 8 2 8 8 2 2 8

If required, Non-Competitive Bid (NCB) processing; complete forms & obtain Executive signature approval; forward to DGS Procurement for approval

15 15 15 15

Obtain any evaluations of selected winner from OLS; post for five days and process any protests

6 6

Prepare contract package and obtain vendor & CPUC signatures

10 10 10 10 10 10 10 10 10 10 10

If required, send contract package to DGS and obtain their approval

12 12 12 12 12 12 12 12 12 12

Distribute approved contract package to recipients; send Fair Housing Form to agency; establish contract file

2 2 2 2 2 2 2 2 2 2 2

APPROXIMATE TOTAL BUSINESS DAYS TO PROCURE SIGNED & APPROVED CONTRACT

87 94 47 20 38 38 47 62 30 30 66

APPROXIMATE WEEKS TO PROCURE CONTRACT

17 19 9 4 8 8 9 12 6 6 13

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6.2. Personal Services with IFB

An Invitation For Bid (IFB) is used to obtain consultants for simple, common, or routine services that may require personal or mechanical skills. Little discretion is used in performing the work. The solicitation document states specific requirements that must be met by the bidder. The bidder provides a yes or no response to each stated criteria. The bidder’s cost is determined by the listed criteria and provided in a separate, sealed envelope. All bids are opened at a public bid opening and the vendor with the lowest responsive bid is awarded the contract after the five-day Protest Period expires and/or protest is adjudicated by DGS. Mandatory forms, described elsewhere in this manual, must be completed or a bid is deemed non-responsive.

Reference: State Contracting Manual (SCM), Volume 1, Sections 5 & 6

6.3. Personal Services with RFP

A Request For Proposal (RFP) solicitation method is used to obtain complex services for which professional expertise is needed where different methods and approaches may be applied during performance. A proposer offers a detailed work plan/methodology that is scored based upon established criteria. Solicitations must contain a three percent Disabled Veteran Business Enterprise (DVBE) participation requirement unless the CPUC agrees to exempt the bidders from the requirement. Proposals are evaluated in three phases: Phase I is a “contractual compliance” screening, by the Contracts Officer, which ensures that all state contracting requirements are met by the proposal. Proposals that fail to meet this requirement are deemed non-responsive and rejected. Phase II is a “Technical Evaluation” performed by the project team (an attempt should be made to include a member outside the agency or division awarding the contract) wherein all scores are individually determined; Phase III consists of an interview of those bidders who have achieved the minimum technical point total established in the RFP. When using a Primary RFP, an intent to award the contract goes to the lowest responsive bidder, selected at a public bid opening, that has achieved the minimum point total. The actual award occurs after the five-day protest period expires or protest adjudication is completed by DGS/OLS. When using the Secondary RFP Method, there is no public bid opening as the contract bid price is scored as an evaluation criteria. However, if cost points are less than 30 percent, the solicitation must be discussed with OLS prior to undertaking the competitive bid. The intent to award the contract is made to the proposer with the highest scored proposal. This method should only be used to obtain services that are unique, highly complex, and/or professional methods are varied that require an innovative approach.

Reference: SCM, Volume 1, Sections 5 & 6

22

6.4. Non-Competitive Bid and Sole Source

These contracts do not require competitive bid but do require civil service considerations. The Executive Director must approve this procurement method prior to commencement. The Contract Project Manager determines, based upon completion of a market survey (five potential vendors should be contacted for the survey), that there is only a single source available (or qualified) to provide the service. The DGS/Systems Integrity Unit must approve the STD Form 821 package which includes: market survey, reasonableness of hourly rate support document including any special factors which impact the cost of the contract, justification for limiting competition by using a specific consultant for the scope of work, and a detailed explanation why the tasks cannot be undertaken by civil service employees (either at the CPUC or through an Inter-agency Agreement). The Executive Director must sign the Standard Form 821 with attached justification or it will be rejected by DGS pursuant to Executive Order W-103-94.

References: SCM, Volume 1, Section 5.70 SCM, Volume II, Purchasing Authority Manual (PAM), Chapter 5

6.5. Under $5000

Miscellaneous consulting needs costing less than $5000 do not require formal competitive bidding, but multiple contracts under $5000 for related work may not be used to circumvent competitive bidding. Therefore, a specific vendor should only be used once in a fiscal year. Contracts under $5000 require only basic terms, conditions, scope, and language mandated by the SCM, and do not require approval by DGS/OLS. A contract under $5000 can be prepared and executed in substantially less time that a contract requiring formal competitive bidding and approval by DGS/OLS.

References: SCM, Volume 1, Section 5.70 SCM, Volume II, Purchasing Authority Manual (PAM), Chapter 5

6.6. Expert Witness

PCC § 10335.5 exempts these contracts from competitive bidding requirements. Consultants are contracted with for the purpose of serving as an “expert witness” in pending litigation. Any specific tasks required of the consultant, such as providing reports and submission of depositions, may only be undertaken as a foundation to testimony in the pending litigation. Expert witness contracts involve attorney work product, that is, information that would reveal the lawyer’s theories and analyses in the course of preparation for possible litigation. Special precautions, as noted in Appendix 35, are required to protect confidentiality in this regard. Billing rates must be consistent with the complexity of the litigation and be representative of rates found in the market place. At least five potential expert witness consultants must be interviewed, based upon established criteria and need, to select the most

23

qualified consultant whose schedule of activities and hourly billing rates most reasonably reflect the tasks required by the project (contract) manager. Any request for waiver from this requirement must be made, in writing, to the Executive Director or his designee. Disabled Veteran Participation goals are normally exempted. Specific Protocols have been developed by the Legal Division in conjunction with the Division of Ratepayer Advocates (DRA) to protect attorney work product. These protocols are reflected in the step list for Expert Witness contracts contained in Chapter 6 of this manual, and in Appendix 35. Approval of Expert Witness Consultant contracts in excess of $50,000, and subsequent amendments, must be obtained from DGS/OLS prior to commencement of tasks.

Reference: SCM Volume 1, Section 3.08

6.7. Legal Services

Contracts for Legal Services are not subject to competitive bid nor Sole Source approval but must be approved by DGS/OLS when the agreement exceeds $50,000. The CPUC is exempt from obtaining prior authorization from the Office of Attorney General and the Governor’s Order directing the procurement of Legal Service Consultants. At least five firms must be interviewed to select the best qualified firm and ensure firms adhere to legal cost and billing rates, litigation plans, case phasing activities and legal budgets designated by the CPUC and maintain legal malpractice insurance in an amount not less than designated by the CPUC. Any request for waiver from this requirement must be made, in writing, to the Executive Director or his designee. CPUC use of outside Legal firms is normally reserved for litigation related to the workplace, such as: sexual harassment, discrimination, labor relation issues, and workers’ compensation injuries.


6.8. Master Service Agreements (MSA)

A Master Service Agreement uses consultants who have been procured from a pre-bid agreement list established by the Office of Procurement or Department of Personnel Administration. MSA Prices are often less than those a single agency could obtain on its own, and Master Service Agreements allow an agency to obtain needed services quickly and easily, as the bid process is avoided. Most agreements have a $100,000 maximum and require DGS/OLS approval if they exceed $50,000. They may or may not have DVBE and civil service justification previously complied with. The Contract Project Manager establishes task criteria, a minimum of three pre-approved vendors are interviewed, and the vendor whose specific experience best fulfills project requirements is selected. The MSA contract serves as the basic contractual document. CPUC language can supplement but not override MSA terms and conditions.

References: SCM Volume 1, Section 3.04 PAM, Chapters 5, 6

24

6.9. California Multiple Award Schedules (CMAS)

California Multiple Award Schedule contracts are established for IT and non-IT products and consulting services that have been competitively assessed, negotiated, or bid primarily, but not exclusively, by DGS. The CMAS program allows state agencies to streamline purchases by removing repetitive, resource-intensive, costly, and time-consuming bid processes. The use of these contracts is available only to California State and Local Government agencies.

References: DGS CMAS Services Guide PAM, Chapters 5, 6

6.10. State of CA Inter-Agency Agreement

An Interagency Agreement (I/A) is a contract between two or more state agencies. A contract with a California State University campus is always an I/A, while a contract with a University of California (UC) campus may be either an I/A or a standard agreement, depending upon the type of contract used. If the UC agrees to calculate cost based upon the provisions in SAM § 8752, then it is an I/A. Otherwise, it will be considered a standard agreement. I/As may not be used for contracts with campus foundations, the federal government, local entities, or other states.


6.11. Other Governmental Agency Agreements

Agreements for services and consultant services do not require competitive bids or proposals if the contract is with:

o A governmental agency from California or any state (PCC § 10340) o A state college or state university from California or any state o A local governmental entity or agency, including those created as a Joint Powers

Authority (JPA) o An auxiliary organization of the CSU, or a California community college o The Federal Government o A foundation organized to support the Board of Governors of the California

Community Colleges o An auxiliary organization of the Student Aid Commission established under

Education Code § 69522


6.12. Utility Reimbursable

Utility Reimbursable contracts are generally authorized by CPUC orders. Typically, such orders seek the performance of a regulatory audit or operational investigation/analysis to be undertaken by a consultant under the direction of a CPUC Contract Project Manager for a

25

particular Division industry, and reimbursed by the utility. The specific contract type to be procured, as determined by the Industry Division in consultation with the Contracts Office, can include such types as RFP, sole source, and CMAS. See Appendix 23 for more detailed information.

6.13. Environmental (CEQA)

Environmental consultants are procured for studies required under the CA Environmental Quality Act (CEQA) using the Request For Qualification (RFQ) competitive bid method. The CPUC’s Request For Qualification (RFQ) procedure was formalized through General Order 163, which sets forth the procedure that must be used by commission staff in its procurement of environmental consultants. GO 163 was written by the Legal Division using policies developed by the Contracts Office pursuant to statutory guidelines, and approved by the Office of Administrative Law (OAL). A link to GO 163 is contained in “Contracting Regulations” in the “Contract Procurement Toolkit” on the Contracts Office website. Detailed instructions for implementing this contract type are described in detail in a separate contract manual, titled “CEQA Contract Manual,” dated June 2005, maintained by the Energy Division.

References: SCM Volume 1, Chapter 11 CEQA Contract Manual, dated June 2005, maintained by CPUC’s Energy Division GO 163 (available through The “Contract Procurement Toolkit” on the Contracts

Office website)

6.14. Emergency An emergency is defined in PCC § 1102 as “a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.” This contract type has rarely been employed at the CPUC and is not documented in Chapter 9 with a detailed step list of activities. However, for reference, following is the brief description of procedures contained in the State Contracting Manual:

Agencies are not required to obtain three bids or advertise before entering into a contract in the event of an emergency.

NCB approval is not required to enter into a contract in the event of an emergency. Ordinarily, consulting services contracts should not be commenced before formal

approval by DGS/OLS if dollar amounts require DGS/OLS approval. However, in emergency circumstances an award may be made with the approval of the CPUC Executive Director without DGS/OLS approval. Thereafter, the contract should be sent to DGS/OLS for approval. Other required approvals may be deferred in the same manner. (Note: For consultant services contracts, an emergency means an occurrence, as determined by DGS, in which the use of contracted services appeared to be reasonably necessary, but there insufficient time to obtain prior formal approval of the contract [PCC § 10371].)

26

(Contracting under the “emergency provision” of the SCM 4.05 should not be confused with commission authorization for in-house approval under Public Utility Code Section 632 which exempts the CPUC from the requirements found in Sections 11042 and 14615 of the Government Code and Sections 10295 and 10318 of the Public Contract Code. PU Code 632 may ONLY be used when the Commission makes a finding that extra-ordinary circumstances justify expedited contracting for consultant or advisory services. The Executive Director or his designee must make an extra-ordinary finding. It may not be a rationale nor used when the Commission has the time to develop an RFP, advertise, and go through a competitive bid procedure but chooses not to in order to circumvent the bid process. The Executive Director, through his finding, pre-approves the use of PU Code 632 by affixing an authorizing signature on any contracts issued using the #632 approval method.)


27

7. ACRONYMS

A & E Architectural and Engineering BCO Budget Control Officer CEQA CA Environmental Quality Act CMAS California Multiple Award Schedules CO Contracts Office CPM Contract Project Manager CRF Contract Request Form CRS Contract Request Summary - CRF cover sheet for approval signatures DGS Department of General Services DPA Department of Personnel Administration DVBE Disabled Veteran Business Enterprise EIR Environmental Impact Report GC Government Code GO General Order IAA Inter-Agency Agreement IFB Invitation For Bid MSA Master Services Agreement PCC Public Contract Code OAL Office of Administrative Law OLS Office of Legal Services OSBCR Office of Small Business Certification & Resources RFP Request For Proposal RFQ Request For Qualification SCM State Contracts Manual SOQ Statement of Qualifications

28

8. INITIATING A CONTRACT PROCUREMENT

Procuring a contract is a highly collaborative effort between the Contract Project Manager (CPM) and the Contracts Office (CO). For each contract type, there is a specific series of steps to be completed, some by the CPM, some by the CO, and some jointly by both participants.

Regardless of the contract type, the following preliminary actions must be completed by the CPM before any contract step list is implemented:

1. Consult with the Division Budget Control Officer (BCO) to: Ensure sufficient contract funds are available for the estimated cost of the

contract effort Obtain Unit, Object, and PCA codes as required in Part 1, Item 3 of the

Contract Request Form (CRF) Obtain “Estimated Cost” information as required in Part 1, Item 4 of the

CRF

2. Develop a brief description of the work to be completed and e-mail the description to the CO Manager, Bob Smith (RES, 415-703-2482).

3. Schedule a contract kick-off meeting with the CO Manager, Bob Smith.

4. Attend the contract kick-off meeting with the CO Manager, Bob Smith.

(Note: For Legal Services Contracts, the Staff Project Coordinator and Legal Division Director first determine the need for legal services before completing the above steps.)

Following completion of the above steps, the CPM oversees implementation of the tasks on the step list for the particular type of contract being pursued. The following chapter contains a detailed step list for each type of contract.

29

9. CONTRACT PROCUREMENT STEP LISTS

9.1. About the Step Lists

Step lists for procuring each contract type were developed from detailed process flow diagrams. These diagrams were developed by the Office of Performance Excellence, working with CPUC staff that provided the expertise in describing how the contract procurement process works.

Following are step lists contained in this chapter:

Personal Service with IFB...................................................................................31

Personal Service with RFP..................................................................................34

Non-Competitive Bid and Sole Source...............................................................38

Under $5000..........................................................................................................40

Expert Witness.....................................................................................................42

Legal Services.......................................................................................................44

Master Service Agreements (MSA)....................................................................46

California Multiple Award Schedules (CMAS)................................................49

State of CA Inter-Agency Agreement................................................................52

Other Governmental Agency Agreement..........................................................54

9.2. Using the Step List as a Tracking Document

In addition to providing a detailed, sequenced list of actions to be completed, the step list form serves as a tracking document. The Contract Project Manager (CPM) has overall responsibility for ensuring that the steps on the list are completed (either by the CPM or by the Contracts Office (CO)). Completion dates on the step list should be recorded by the CPM or CO as they complete actions under their responsibility (the step lists indicate task ownership). Recording a completion date consists simply of obtaining the step list from Hummingbird, entering the completion date, and saving the updated step list back into Hummingbird.

At the contract kick-off meeting, the Contracts Office Manager, Bob Smith, will start the tracking process by doing the following:

Obtain an electronic copy of the step list for the required type of contract Enter the Contract Number, CPM’s name, and CO’s name on the step list form Save the step list in Hummingbird according to Contract Number Give editing access to himself, the CPM, and the assigned Contract Officer, and read

access to all CPUC staff

30

9.3. Hummingbird Refresher

Rusty with Hummingbird? It’s easy. Really! Just follow these steps:

Saving the Initial Document After editing the Word step list, go to File/Save As – this will invoke the

Hummingbird screen Enter the following information:

o Document Name: Contract 12345o Document Type: CONTRACTo Proceeding #: 0o Under CPUC Security, select All CPUC – Read Onlyo Under Access Control, Click Custom

Under Groups, select .DOCS_Users Under Users, find the names of the Contract Officer and the Contract

Project Manager. Move each under Current Trustees by selecting their name and hitting the right arrow (→).

o Click OKo Click OK

Retrieving a Document, Editing, and then Putting it Back Click the Windows Explorer DM Extension icon on your desktop Click Search on the top bar Select Profile Search Under Advanced Search, enter either the document number in Doc. #, or the name of

the document in Document Name Click OK Double click on the document name outlined in blue On the Select a Version to Edit screen, hit OK Edit the document Go to File/Save Close the document

9.4. Availability of Process Maps

Each of the above step lists was derived from a detailed process flow diagram for the particular contract type. A process map is available to any reader that would like a visual depiction of the steps involved for the procurement of any given contract type. Contact the Office of Performance Excellence (Jeff Kasmar, JK2, ext. 32506)

31

CONTRACT PROCUREMENT STEP LISTPersonal Service Contract with IFB

Contract Number:Contract Project Manager (CPM):

Contracts Officer (CO):

Step No. CPM CO Action

Appendix w/Detailed

InfoDate

Completed

1 x x CPM and CO have kick-off meeting to prepare for pending project:

a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Funding requirements Contractual requirements Estimated timelines

b. CO fills out Part 1 & Part 2, Section B of Contract Request Form (CRF) electronically

c. CO fills out Contract Request Summary electronicallyd. CO prints out copies of the CRF (Parts 1 & 2) &

Contract Request Summary for the CPMe. CO e-mails CRF & Summary to the CPM, and saves

electronic copies in CO recordsf. CO fills in header info on electronic copy of step list

and saves in Hummingbird2 x Obtain approval signatures on CRF from:

a. Supervisorb. Division BCOc. Division Directord. Chief IMS Divisione. Deputy Executive Directorf. Executive Director

3 x Send signed & completed CRF and Summary to Contracts Office

4 x Receive CRF and Summary from CPM5 x Set up handling of new contract:

a. Assign Contracts Officerb. Assign contract numberc. Establish contract tracking & status recordd. Notify CPM of assigned Contracts Officer & contract

number6 x Receive notification of assigned Contracts Officer & contract

number7 x Prepare draft IFB 3

32

8 x Schedule rooms for:a. Bidders’ Conference (if conference necessary)b. Public bid openingc. Interviews

9 x Initiate review of IFB with CO:a. E-mail draft IFB to CO for reviewb. Schedule meeting with CO to finalize IFB

10 x x CPM and CO meet to finalize IFB and identify a posting date11 x Post solicitation document on:

a. CPUC websiteb. DGS/CSCR website

5

12 x x If Bidders’ Conference was scheduled, conduct Bidders’ Conference

6

13 x x Receive bidder questions before and after Bidders’ Conference:

a. Both CPM and CO may receive questionsb. CPM and CO cc each other on all queries receivedc. CPM develops answers for all technical questionsd. CO develops answers for all contractual questions &

forwards all contractual Q&As to CPMe. CPM compiles all technical and contractual Q&As &

forwards to CPM

8

14 x Post compiled technical and contractual Q&As:a. Receive compiled Q&As from COb. Download list of potential bidders from DGS/CSCR

website & notify that Q&As are being posted on DGS/CSCR website

c. Post Q&As on CPUC website & DGS/CSCR website

5

15 x Create any needed addendums:a. Create IFB addendum if necessitated by bidders’

questions or other concernsb. Forward IFB addendum to CO

7

16 x Post any addendums received:a. Receive IFB addendum(s) from CPMb. Download list of potential bidders from DGS/CSCR

website & notify that addendum(s) are being posted on DGS/CSCR website

c. Post addendum(s) on CPUC website & DGS/CSCR website

5

17 x Receive proposals from bidders by specified due date, stamping each envelope with date/time upon receipt

18 x x Conduct public bid opening 9

33

19 x Process opened bids:a. Review each proposal for contractual complianceb. If unresponsive to IFB, reject bidder & advise via

letter of reason for rejectionc. Inform CPM of any bidder rejectionsd. Retain original proposals in Contracts Officee. Forward copies of compliant proposal to CPM for

evaluation

9

20 x x Evaluate proposals:a. CPM receives copies of compliant proposals from COb. CPM conducts pass/fail evaluation of proposalsc. CPM & CO jointly agree upon winner

9

21 x Check for any OLS evaluations:a. Contact OLS to obtain any negative evaluations for

bidderb. If an evaluation is received that rules out bidder:

i. Reject bidder and advise via letter of rejectionii. Inform CPM of rejection

iii. AT THIS POINT, MIGHT HAVE TO REPOST IFB OR BEGIN ENTIRE CONTRACTUAL PROCESS OVER

9

22 x Go through five-day protest period:a. If no negative OLS evaluations received, post

“Intent to Award” in lobby for five daysb. If a protest is received within five days:

i. Prepare response to protest and forward to DGS/OLS

ii. If DGS/OLS determines that the protest is valid, AT THIS POINT MIGHT HAVE TO AWARD TO PROTESTOR, OR REPOST IFB, OR BEGIN ENTIRE CONTRACTUAL PROCESS OVER

c. If no protests received within five days, inform CPM that bidder has cleared five-day protest period

10

23 x Prepare customized contract package 1224 x Obtain vendor signatures and then CPUC signatures, in that

order25 x If DGS/OLS approval required:

a. Forward signed agreement package to DGS/OLS for approval

b. Receive back approved contract from DGS/OLS

12

26 x Complete final processing of approved contract:a. Distribute contract to CPM, Fiscal, Contractor, and

CO filesb. Prepare Excel spreadsheet & contract file for handling

invoicesc. Send completed Fair Housing Form to CA Dept. of

Fair Employment and Housing

20

34

CONTRACT PROCUREMENT STEP LISTPersonal Service Contract with RFP




Appendix w/Detailed

InfoDate

Completed



b. CO fills out Part 1 & Part 2, Section B of Contract Request Form (CRF) electronically










number7 x Prepare draft RFP 4

35

8 x Schedule rooms for:a. Bidders’ Conference (if conference necessary)b. Public bid openingc. Interviews

9 x Initiate review of RFP with CO:a. E-mail draft RFP to CO for reviewb. Schedule meeting with CO to finalize RFP

10 x x CPM and CO meet to finalize RFP and identify a posting date11 x Post solicitation document on:

a. CPUC websiteb. DGS/CSCR website

5

12 x x If Bidders’ Conference was scheduled, conduct Bidders’ Conference

6

13 x x Receive bidder questions before and after Bidders’ Conference:

a. Both CPM and CO may receive questionsb. CPM and CO cc each other on all queries receivedc. CPM develops answers for all technical questionsd. CO develops answers for all contractual questions &

forwards all contractual Q&As to CPMe. CPM compiles all technical and contractual Q&As &

forwards to CPM

8

14 x Post compiled technical and contractual Q&As:a. Receive compiled Q&As from COb. Download list of potential bidders from DGS/CSCR

website & notify that Q&As are being posted on DGS/CSCR website

c. Post Q&As on CPUC website & DGS/CSCR website

5

15 x Create any needed addendums:a. Create RFP addendum if necessitated by bidders’

questions or other concernsb. Forward RFP addendum to CO

7

16 x Post any addendums received:a. Receive RFP addendum(s) from CPMb. Download list of potential bidders from DGS/CSCR

website & notify that addendum(s) are being posted on DGS/CSCR website

c. Post addendum(s) on CPUC website & DGS/CSCR website

5

17 x Receive proposals from bidders by specified due date, stamping each envelope with date/time upon receipt

36

18 x Conduct Phase 1 review of proposals:a. Review each proposal for contractual complianceb. If unresponsive to RFP, reject bidder & advise via

letter of reason for rejectionc. If responsive to RFP:

i. Forward copies of compliant proposals to CPM for evaluation

ii. Retain originals in Contracts Officeiii. Withhold cost information from CPM

9

19 x Receive copies of proposals compliant to RFP from CPM20 x Conduct Phase 2 review of proposals:

a. Score each proposal using technical criteriab. If proposal does NOT meet minimum technical

point total, draft letter explaining reason for rejection and send to CO

c. If proposal DOES meet minimum technical point total, move to either an interview process (if required by RFP) or a public bid opening

9

21 x If interview required by RFP, conduct interview process for each bidder:

a. Interview bidderb. Score interview (Phase 3)c. If bidder does NOT pass interview, draft letter

explaining reason for rejection and send to COd. If bidder PASSES interview, inform CO & move to

public bid opening

9

22 x If draft rejection letter(s) received from CPM, reject bidder(s) and advise via letter of reason for objection

9

23 x x Conduct public bid opening 924 x Conduct final bidder evaluation:

a. If primary RFP, identify lowest bidderb. If secondary RFP:

i. Add cost points to technical scoresii. Identify highest final score

9

25 x x Jointly agree upon winning bidder 9

37

26 x Go through five-day protest period:a. If no negative OLS evaluations received, post

“Intent to Award” in lobby for five daysb. If a protest is received within five days:

i. Prepare response to protest and forward to DGS/OLS

ii. If DGS/OLS determines that the protest is valid, AT THIS POINT MIGHT HAVE TO AWARD TO PROTESTOR, OR REPOST RFP, OR BEGIN ENTIRE CONTRACTUAL PROCESS OVER

c. If no protests received within five days, inform CPM that bidder has cleared five-day protest period

10





12

30 x Complete final processing of approved contract:a. Distribute contract to CPM, Fiscal, Contractor, and




20

38

CONTRACT PROCUREMENT STEP LISTNon-Competitive Bid Contract




Appendix w/Detailed

InfoDate

Completed


a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Part 2, Section J of Contract Request Form (CRF) Funding requirements Contractual requirements Estimated timelines

b. CO fills out Part 1 of CRF electronicallyc. CO fills out Contract Request Summary electronicallyd. CO prints out copies of the CRF (Parts 1 & 2) &



and saves in Hummingbird2 x Develop Statement of Work (SOW) & send copy to CO 113 x If identified consultant has NOT been selected via a market

survey:a. Obtain waiver from Executive Director for the need to

conduct a market surveyb. Forward copy of waiver to CO

13

4 x Fill out:a. Non-Competitive Bid Contract Justificationb. STD Form 821

14

5 x Fill out Part 2, Section J of CRF and e-mail to CO 16 x Receive Part 2, Section J of CRF from CPM7 x x Resolve any errors or omissions on CRF8 x Obtain approval signatures on CRF from:


Obtain approval signatures on NCB Justification and STD Form 821 from Executive Director only

39

9 x Send signed & completed CRF and Summary and other contract documentation to Contracts Office

10 x Receive CRF and Summary and other contract documentation from CPM

11 x Set up handling of new contract:a. Assign Contracts Officerb. Assign contract numberc. Establish contract tracking & status recordd. Notify CPM of assigned Contracts Officer & contract

number12 x Send NCB Contract Justification and Form STD 821 to

Procurement Division of DGS13 x If NCB documentation NOT approved by DGS, take

alternative action based on DGS response (e.g., pursue competitive bid)

14 x Receive notification of assigned Contracts Officer & contract number

15 x Provide additional information to CO:a. Rate and cost info from Consultantb. Letter justifying need for expert witness





12

19 x Complete final processing of approved contract:a. Distribute contract to CPM, Fiscal, Vendor, and CO

filesb. Prepare Excel spreadsheet & contract file for handling



20

40

CONTRACT PROCUREMENT STEP LISTContract under $5,000




Appendix w/Detailed

InfoDate

Completed


a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Part 2, Section I of Contract Request Form (CRF) Funding requirements Contractual requirements Estimated timelines




and saves in Hummingbird2 x Develop Statement of Work (SOW) & send copy to CO 113 x If consultant has NOT already been selected, conduct

market survey where practicable:a. Establish criteria for evaluating expert witnessesb. Interview at least five potential expert witness

consultantsc. Select most qualified expert witness based on

established criteria

15

4 x If consultant HAS already been selected and you were unable to conduct a market survey:

a. Obtain waiver from Executive Director for the need to interview five potential consultants

b. Forward copy of waiver to CO

13

5 x Fill out Part 2, Section I of CRF and e-mail to CO 16 x Receive Part 2, Section I of CRF from CPM7 x x Resolve any errors or omissions on CRF

41

8 x Obtain approval signatures on CRF from:a. Supervisorb. Division BCOc. Division Directord. Chief IMS Divisione. Deputy Executive Directorf. Executive Director





number13 x Prepare customized contract package 1214 x Obtain vendor signatures and then CPUC signatures, in that

order15 x Complete final processing of approved contract:

a. Distribute contract to CPM, Fiscal, Vendor, and CO files

b. Prepare Excel spreadsheet & contract file for handling invoices

c. Send completed Fair Housing Form to CA Dept. of Fair Employment and Housing

20

42

CONTRACT PROCUREMENT STEP LISTExpert Witness Contract




Appendix w/Detailed

InfoDate

Completed


a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Part 2, Section C of Contract Request Form (CRF) Funding requirements Contractual requirements Estimated timelines








15

4 x If identified consultant has NOT been selected via a market survey:



13

5 x Fill out Part 2, Section C of CRF and e-mail to CO 16 x Receive Part 2, Section C of CRF from CPM7 x x Resolve any errors or omissions on CRF

43






number13 x Provide additional information to CO:

a. Rate and cost info from Consultantb. Letter justifying need for expert witness





12





20

44

CONTRACT PROCUREMENT STEP LISTLegal Services Contract




Appendix w/Detailed

InfoDate

Completed


a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Part 2, Section F of Contract Request Form (CRF) Funding requirements Contractual requirements Estimated timelines








15

4 x If identified consultant has NOT been selected via a market survey:



13

5 x Fill out Part 2, Section F of CRF and e-mail to CO 16 x Receive Part 2, Section F of CRF from CPM7 x x Resolve any errors or omissions on CRF

45






number13 x Provide rate and cost information to CO14 x Prepare customized contract package 1215 x Obtain vendor signatures and then CPUC signatures, in that




12





20

46

CONTRACT PROCUREMENT STEP LISTMSA Contract




Appendix w/Detailed

InfoDate

Completed



b. CO & CPM look at MSA list to ensure that there is at least one qualified contractor for the work

c. CO fills out Part 1 and Part 2, Section G of Contract Request Form (CRF) electronically

d. CO fills out Contract Request Summary electronicallye. CO prints out copies of the CRF (Parts 1 & 2) &

Contract Request Summary for the CPMf. CO e-mails CRF & Summary to the CPM, and saves

electronic copies in CO recordsg. CO fills in header info on electronic copy of step list







number

47

7 x Develop Statement of Work (SOW) & e-mail copy to CO 118 x If a Request for Offer (RFO) is NOT required, JUMP TO

STEP 2417

9 x Develop RFO & e-mail copy to CO for review 1710 x Receive RFO from CPM 11 x Resolve any RFO deficiencies with CPM and e-mail copy of

final to CPM17

12 x Solicit offers from potentially qualified contractors viva RFO 1913 x Receive offers from contractors 1914 x If MORE THAN ONE offer is received, conduct best value

determination of written offers received & JUMP TO STEP 2419

15 If ONLY ONE offer is received, attempt to get more offers from other potentially qualified contractors

16 x If more than one offer is received after second attempt, conduct best value determination of written offers received & JUMP TO STEP 24

19

17 x If still only one offer has been received after second attempt, consult MSA user guide to determine if NCB is required

18 x If NCB is NOT required per MSA user guide, JUMP TO STEP 24

19 x If NCB IS required, notify CPM that NCB is required20 x Receive notification from CO that NCB is required21 x Fill out NCB forms and e-mail copies to CO:

a. NCB Justification Formb. STD 821

14

22 x Receive NCB forms from CPM and forward to DGS/PD for approval

23 x Receive approved NCB forms from DGS/PD24 x x CPM and CO jointly select winning candidate25 x Obtain copy of MSA contract from selected candidate26 x Prepare customized contract package 1227 x Obtain vendor signatures and then CPUC executive

signatures, in that order28 x If DGS/PD/OLS approval required:

a. Forward signed agreement package to DGS/PD for approval

b. Receive back package and approved STD 213 Agreement from DGS/PD

c. Forward package to DGS/OLS for approvald. Receive package and approved and stamped STD 213

Agreement from DGS/OLS

12

48

29 x Complete final processing of approved contract:a. Distribute STD 213 Agreement with Exhibit A to

CPM, Fiscal, Vendor, DGA procurement, and CO files

b. Prepare Excel spreadsheet & contract file for handling invoices

c. Send completed Fair Housing Form to CA Dept. of Fair Employment and Housing

20

49

CONTRACT PROCUREMENT STEP LISTCMAS Contract




Appendix w/Detailed

InfoDate

Completed



b. CO fills out Part 1 & Part 2, Section G of Contract Request Form (CRF) electronically










number7 x Develop Statement of Work (SOW) & e-mail copy to CO 11

50

8 x Develop RFO & e-mail copy to CO for review 179 x Search CMAS website for potentially qualified contractors 18

10 x Receive SOW and RFO from CPM 11 x Resolve any SOW or RFO deficiencies with CPM and e-mail

copy of final SOW & RFO to CPM17

12 x Receive approved SOW & RFO from CO13 x Solicit offers from potentially qualified contractors via RFO 1914 x Receive offers from contractors 1915 x If MORE THAN ONE offer is received, conduct best value

determination of written offers received & JUMP TO STEP 2219

16 x If ONLY ONE offer is received, attempt to get more offers from other potentially qualified contractors

17 x If more than one offer is received after second attempt, conduct best value determination of written offers received & JUMP TO STEP 22

19

18 x If still only one offer has been received after second attempt, fill out NCB forms and e-mail copies to CO:

a. NCB Justification Formb. STD 821

14

19 x Receive NCB forms from CPM and forward to DGS/PD for approval

20 x Receive approved NCB forms from DGS/PD & authorize CPM to proceed with CMAS process with single candidate

21 x Receive authorization to proceed with CMAS process with single candidate

22 x If you want more information on candidate(s), conduct interviews

22

23 x x CPM and CO jointly select winning candidate24 x Provide contract info to CO:

a. Name of winning contractor & contact infob. Winning contractor’s federal ID, & SSN if an

individualc. Assessment & selection documentsd. Copies of fall supplier responses to RFO, including

their CMAS contracts25 x Receive contract info from CPM26 x Prepare customized contract package 1227 x Obtain vendor signatures and then CPUC executive

signatures, in that order28 x If DGS/PD/OLS approval required:

a. Forward signed agreement package to DGS/PD for approval

b. Receive back package and approved purchase order from DGS/PD

c. Forward package to DGS/OLS for approvald. Receive package and approved and stamped purchase

order from DGS/OLS

12

51

29 x Complete final processing of approved contract:a. Distribute approved purchase order to CPM, Fiscal,

Vendor, and CO filesb. Prepare Excel spreadsheet & contract file for handling



20

52

CONTRACT PROCUREMENT STEP LISTState of California Inter-Agency Agreement




Appendix w/Detailed

InfoDate

Completed


a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Part 2, Section D of Contract Request Form

(CRF) Funding requirements Contractual requirements Estimated timelines

b. CO fills out Part 1 of CRF electronicallyc. CO fills out Part 2, Section D of CRF, except for 2.B

(Statement of Work)d. CO fills out Contract Request Summary electronicallye. CO prints out copies of the CRF (Parts 1 & 2) &



and saves in Hummingbird2 x Contact state agency that will do the work3 x Develop Statement of Work (SOW) & rate structure & e-mail

copy to CO11

4 x Fill out Part 2, Section D, paragraph 2.B of CRF & e-mail copy to CO

1

5 x Attach SOW & Rate structure to CRF, & obtain approval signatures on CRF from:



8 x Receive CRF and Summary from CPM

53



number11 x x CPM & CO jointly determine if there are any additional

requirements or specifications for contract Exhibits D & E12 x Prepare customized contract package 1213 x Obtain vendor signatures and then CPUC signatures, in that



b. Receive back approved & stamped agreement (STD 213) from DGS/OLS

12

15 x Complete final processing of approved contract:a. Distribute contract to CPM, Fiscal, other Agency, and




20

54

CONTRACT PROCUREMENT STEP LISTOther Governmental Agency Agreement




Appendix w/Detailed

InfoDate

Completed


a. CO explains overall contract procurement process & provides info, as necessary, on: Appropriate procurement method Part 2, Section E of Contract Request Form (CRF) Funding requirements Contractual requirements Estimated timelines

b. CO fills out Part 1 of CRF electronicallyc. CO fills out Part 2, Section E, except for 2.B

(Statement of Work)d. CO fills out Contract Request Summary electronicallye. CO prints out copies of the CRF (Parts 1 & 2) &



and saves in Hummingbird2 x Contact governmental agency or college that will do the work3 x Develop Statement of Work (SOW) & rate structure & e-mail

copy to CO11

4 x Fill out Part 2, Section E, paragraph 2.B of CRF & e-mail copy to CO

1

5 x Attach SOW & Rate structure to CRF, & obtain approval signatures on CRF from:



7 x Receive CRF and Summary from CPM

55



number10 x x CPM & CO jointly determine if there are any additional

requirements or specifications for contract Exhibits D & E11 x Prepare customized contract package 1212 x Obtain vendor signatures and then CPUC signatures, in that



b. Receive back approved & stamped agreement (STD 213) from DGS/OLS

12

14 x Complete final processing of approved contract:a. Distribute contract to CPM, Fiscal, other Agency, and




20

56

10. STANDARD CONTRACTING FORMS AND EXAMPLES

Following are the most commonly used elements for contract procurement at the CPUC. Electronic copies of both the blank forms and filled-out examples can be obtained from the Contracting Office website under “Standard Contracting Forms and Examples.”

Form or Document

Contract Request Form Part 1 Part 2, Section A – Amendments Part 2, Section B – Competitive Bids Part 2, Section C – Expert Witness Part 2, Section D – Interagency Agreements (IAA) Part 2, Section E – Other Governmental Agency Agreements Part 2, Section F – Legal Services Part 2, Section G – Master Service Agreements (MSA) Part 2, Section H – Section 632 Part 2, Section I – Under $5000 Part 2, Section J – Non-Competitive Bids (NCB)

Contract Request SummaryExpert Witness Contract Cover SheetFair Housing FormInterview Questions and Scoring for IFB or RFPInvitation for Bid (IFB)Non-Competitive Bid (NCB) Contract Justification Q&As in Response to IFB or RFPQuestions & Scoring for Oral Interview of CMAS CandidatesRejection Letter for IFB or RFPRequest for Offer (RFO) Request for Proposals (RFP)Request for Proposal (RFP) AddendumSTD 65 – Purchasing Authority Purchase OrderSTD 213 – Standard AgreementSTD 213A – Amendment to Standard AgreementSTD 215 – Agreement SummarySTD 821 – Request for Advertising ExemptionTechnical Criteria used for Scoring IFB or RFP

57

11. CONTRACTING REGULATIONS

Following are the primary California State regulations for contract procurement. These regulations can be viewed and printed out as required from the Contracting Office website under “Contracting Regulations” in the “Contract Procurement Toolkit.”4

California Public Contract Code

State Contracting Manual (SCM), Volume 1

State Contracting Manual (SCM), Volume II, Purchasing Authority Manual (PAM)

The California Multiple Award Schedules (CMAS)

CMAS Services Guide

Master Agreements

Requirements for the Use of CA Multiple Award Schedules (CMAS), Master Agreements, and Non-Competitively Bid Contracts – State Management Memo MM 03-10, dated May 28, 2003

CPUC General Order No. 163A

58

APPENDIX 1

Contract Request Form (CRF) with all Sections

The Contract Request Form (CRF) must be filled out and signed prior to initiating the procurement of contract services. For any contract type, it is necessary to complete Part 1 and whichever section of Part 2 is applicable. Signatures are required from:

Contract Project Manager’s Supervisor Division BCO Division Director Chief of Management Services Deputy Executive Director Executive Director

Referenced forms and examples, available in the “Contract Procurement Toolkit” on the Contracts Office website

Contract Request Form Part 1 Part 2, Section A – Amendments Part 2, Section B – Competitive Bids Part 2, Section C – Expert Witness Part 2, Section D – Interagency Agreements (IAA) Part 2, Section E – Other Governmental Agency Agreements Part 2, Section F – Legal Services Part 2, Section G – Master Service Agreements (MSA) Part 2, Section H – Section 632 Part 2, Section I – Under $5000 Part 2, Section J – Non-Competitive Bids (NCB)

59

APPENDIX 2

CPUC Contract Request Summary

The Contract Request Summary must accompany the Contract Request Form when it is distributed for signatures. The Summary provides a concise overview of the proposed project scope, budget, and timeline, to facilitate review by signatories who must approve the proposal.

Referenced form and example, available in the “Contract Procurement Toolkit” on the Contracts Office website

Contract Request Summary

60

APPENDIX 3

Invitation for Bids (IFB)

An Invitation for Bid (IFB) must be filled out using the form referenced below. The IFB must be exact and clear to ensure that all bids received will be competitive as the result of all bidders bidding on exactly the same work or equipment, specifications, and contract obligations.

An IFB seeks an answer to the following:

“Here is exactly what we need to have done. Here are the qualification requirements, performance specifications, time frames, and requirements that must be met. How much will you charge us?”

An IFB must indicate the specific requirements of the state. Timely bids are reviewed to determine which bidders meet the requirements indicated in the IFB. For each specific requirement, a basic yes or no answer is required.


Invitation for Bid (IFB)

More detailed information, available in “Contracting Regulations” in the “Contract Procurement Toolkit” on the Contracts Office website

State Contracting Manual (SCM), Volume 1, Chapter 5

61

APPENDIX 4

Request for Proposals (RFP)

A Request for Proposals (RFP) must be filled out using the form referenced below. A Request for Proposals (RFP) must be as precise as possible to ensure that all proposals are accomplishing the same goal. An RFP seeks an answer to the following:

“Here is what we wish to accomplish. Here are the qualification requirements, performance specifications, time frames, and other requirements that must be met. How would you accomplish the job for us and for how much?”

An RFP should not be used when the service or equipment to be hired is standard, routine, or common, or when there is a standard associated with the service or equipment to be hired.

There are two methods for evaluating proposals and awarding contracts:

1. Primary Method: By this method, the contract is awarded to the responsible and qualified proposer offering the lowest cost for its services. Reference SCM 5.20 for more information.

2. Secondary Method: This method requires evaluation of proposals by an evaluation committee with the award made to the responsible proposer earning the highest score. Reference SCM 5.25 for more information.

Before soliciting proposals, agencies must determine which method of evaluation will be used in order to include the appropriate information in the RFP, as follows:

1. A comprehensive evaluation plan must be developed and finalized. All rating and scoring factors which are to be considered must be included, criteria for considering costs to the state must be developed, and the evaluation plan must provide for a fair and equitable evaluation of all proposals.

2. All proposals and all evaluation and scoring sheets must be available for public inspection at the conclusion of the scoring process.

Referenced form and example, available in The “Contract Procurement Toolkit” on the Contracts Office website

Request for Proposals (RFP)


State Contracting Manual (SCM), Volume 1, Section 5

62

APPENDIX 5

Posting Documents

DGS/CSCR WebsiteAfter the Contract Project Manager (CPM) finalizes the solicitation document (RFP or IFB), and it has been reviewed and approved by the Contracts Office (CO), he or she sends the document to the CO Manager, who posts the document to the California State Contracts Register. The CO Manager uses a password issued by DGS and enters their web portal, where various screens are filled in containing information about the solicitation to be posted.

CPUC WebsiteUsing the new ad submitted to the DGS Website, the CO Manager creates a URL and sends it to the CPUC Webmaster, who posts the new contract opportunity to the CPUC webpage.

(Note: For CEQA contracts, the Energy Division posts the contract notification to both websites.)

63

APPENDIX 6

Conducting a Bidders’ Conference

If you have issued either an IFB or RFP, you may optionally schedule a Bidders’ Conference to give bidders an opportunity to ask detailed questions. At this conference, the Contract Project Manager (CPM) responds to technical questions from bidders, while the Contracts Office (CO) responds to questions on State contracting rules and procedures. At this meeting the CPM records all the bidders’ questions as well as the CPUC’s answers to those questions. It should be emphasized to the bidders at the meeting that, while questions may be answered verbally by the CPUC during the meeting, the only official answers are those that are later posted in writing on the CPUC and DGS/CSCR websites. After the Bidders’ Conference, the CO will post official answer to all technical and contractual questions that were received both at the Conference, and outside the Conference up to the specified cut-off date for questions.

64

APPENDIX 7

Creating an IFB or RFP Addendum

If you have issued either an IFB or RFP, the Contracts Project Manager (CPM) or Contracts Office (CO) may receive technical or contractual questions from bidders that require a clarifying addendum to the IFB or RFP. Since the CPM compiles all technical and contractual questions received, the CPM creates any addendums to the IFB or RFP and e-mails the addendum(s) to the CO for posting on the CPUC and DGS/CSCR websites.

Referenced example, available in the “Contract Procurement Toolkit” on the Contracts Office website

Request for Proposal (RFP) Addendum

65

APPENDIX 8

Q&As in Response to an IFB or RFP

If either an IFB or RFP has been issued, the Contracts Project Manager (CPM) or Contracts Office (CO) may receive technical or contractual questions from bidders that require a clarifying addendum to the IFB or RFP. These questions may be received before, during, or after the Bidders’ Conference, up to a specified cut-off date. The CPM compiles all technical and contractual questions received, as well as answers to those technical questions, and e-mails the Q&As to the CO for posting on the CPUC and DGS/CSCR websites.


Q&As in Response to IFB or RFP

66

APPENDIX 9

Reviewing Proposals for Contractual Compliance

All proposals in response to an IFB or RFP are first reviewed by the Contracts Office for basic contractual compliance. The bidder must have provided a clear yes or no answer to all qualification requirements, performance specifications, time frames, and other requirements.

Proposals in response to an IFB go through the following process: The proposals are first reviewed by the Contracts Office (CO) for basic contractual

compliance. The bidder must have provided a clear yes or no answer to all qualification requirements, performance specifications, time frames, and other requirements, as well as fees they will charge for all required services.

For any proposal that is non-responsive, the CO rejects the bidder and advises them via letter of the reason for rejection. The CO informs the Contract Project Manager (CPM) of the bidder rejection. The “Contract Procurement Toolkit” on the Contracts Office website contains an example of a rejection letter.

All proposals that are responsive to the IFB are forwarded to the CPM for evaluation. Assuming all remaining bidders are responsive to all requirements stated in the IFB, it is a matter of determining which bidder is offering the lowest cost for its services. Determination of a winner is made jointly by the CPM and CO.

Proposals in response to an RFP go through the following process: The proposals are first reviewed by the Contracts Office (CO) for basic contractual

compliance (Phase 1 evaluation). The bidder must have demonstrated their ability to fulfill all qualification requirements, performance specifications, time frames, and other requirements. They must indicate how they will accomplish the job as well as the fees they will charge for all required services.

The proposals are next scored by the Contract Project Manager (CPM) using technical criteria (Phase 2 evaluation).

If an interview was required in the RFP, the CPM interviews the bidders and scores them (Phase 3 evaluation).

After the Phase 1, 2, & 3 evaluations have been completed, all bids are opened at a public bid opening hosted by the CO and CPM jointly. The bids are adjusted for various preference categories as required (e.g., small business, etc.). For a primary RFP, the lowest bidder is selected. For a secondary RFP, cost points are added to the technical scores to identify the highest-scoring bidder. Determination of a winner is made jointly by the CPM and CO.

67

For any proposal that is non-responsive at any stage, the bidder is rejected and advised via letter of the reason for rejection. The rejection letter is written by the CO for Phase 1 and by the CPM for Phases 2 and 3, but in all cases the CO sends the letter to the bidder, informing the Contract Project Manager (CPM) of the bidder rejection. The “Contract Procurement Toolkit” on the Contracts Office website contains an example of a rejection letter.

Referenced examples, available in the “Contract Procurement Toolkit” on the Contracts Office website

Interview Questions and Scoring for IFB or RFP Rejection Letter for IFB or RFP Technical Criteria used for Scoring IFB or RFP


State Contracting Manual (SCM), Volume 1, Section 5

68

APPENDIX 10

Posting and Notification Requirements

After a winning bidder has been selected in response to either an IFB or an RFP, there are specific posting and notification requirements, per SCM, Volume 1, Section 5.65:

1. RFP. After selecting a bidder for possible contract award under an RFP (Primary or Secondary): The CPUC must post, in an area accessible to the public, a letter of intent to award. This

public area is typically the lobby of our building at 505 Van Ness Avenue. The contract cannot be awarded for a period of five working days (starting the day after

posting), during which time the CPUC must allow all bidders access to all the bid information including all responses and score sheets used in the evaluation.

2. IFB. After selecting a bidder for possible contract award under an IFB: The CPUC must post, in an area accessible to the public, a letter of intent to award if

requested in writing by any of the bidders. If the lowest bidder is not being awarded the contract, the low bidder must be notified of

that fact five working days prior to contract award. The notice should also include the reason why the lowest bidder is not being awarded the contract.

If the agency is awarding to the lowest responsible bidder, and no requests have been made to publicly post a letter of intent, the agency may award the contract without delay.

During the five-day posting period, a protestor only has to indicate their intent to object. Upon receiving their actual objection, the Contracts Office (CO) prepares a response to the protest and forwards to DGS/OLS for evaluation. If DGS indicates that the protest has no merit, the CO informs the Contract Project Manager that the bidder has cleared the five-day protest period, and proceeds to prepare the contract package. If DGS indicates that the protest has merit, they will typically indicate one of several actions to take, such as awarding the contract to the protestor, reposting the IFB or RFP on the DGS/CSCR website, or even beginning the entire contract solicitation process all over.

69

APPENDIX 11

Preparing a Formal Statement of Work (SOW)

For all contract types, it is necessary for the Contract Project Manager (CPM) to prepare a Statement of Work (SOW) that defines the specific services and terms for which bidders will make offers. The SOW will vary in complexity according to the size and type of contract but, in general, should contain at least the elements shown in the SOW outline attached to the Request for Offers (RFO) template contained in The “Contract Procurement Toolkit” on the Contracts Office website.

For CMAS contracts, the DGS website has detailed information available on SOW preparation, including three SOW examples, to be found at this URL: http://www.pd.dgs.ca.gov/cmas/SOWMarch06.htm


SOW example contained in example for “Request for Offer (RFO)”

70

http://www.pd.dgs.ca.gov/cmas/SOWMarch06.htm

APPENDIX 12

Preparing a Customized Contract Package

After a contractor has been selected for contract award, the Contracts Office (CO) prepares a contract package for signature and subsequent distribution to all involved parties. In many instances the contract package is first sent to DGS/OLS for approval before final distribution. Contents of the contract package vary by contract type and are shown in Figure A12.1.

More detailed information can be found at this URL:

http://www.ols.dgs.ca.gov/Contracting+Info/formsandinstructions.htm

71

http://www.ols.dgs.ca.gov/Contracting+Info/formsandinstructions.htm

Figure A12.1Contents for Standard Contract Packages

STD 65

STD 213

STD 215

SOW Proposal RFO Rate Structure

Boilerplate Provisions

Personal Services with IFB

● ● ● ● ●

Personal Services with RFP

● ● ● ● ●

Non-Competitive Bid

● ● ● ● ●

Under $5000 ● ● ● ● ● ●

Expert Witness ● ● ● ●

Legal Services ● ● ● ● ●

MSA (*) ● ● ● ● ●

CMAS (**) ● ● ● ● ●

State of CA Inter-Agency

● ● ● ● ●

Other Governmental Agency

● ● ● ● ●

DGS forms STD 65, 213, and 215 are available electronically via links in The “Contract Procurement Toolkit” on the Contracts Office website.

SOW information is contained in Appendix 11. RFO information is contained in Appendix 17. The “Boilerplate Provisions” consist of Standard Terms and Conditions (Appendix 24) and Contractor

Certification Clauses (Appendix 265.

(*) MSA contract package also includes: Copy of MSA User Guide Complete copy of supplier’s MSA contract Assessment and selection documents Copies of all supplier responses to RFO

(**) CMAS contract package also includes: Complete copy of supplier’s CMAS contract Assessment and selection documents Copies of all supplier responses to RFO

72

APPENDIX 13

Justifying Not Conducting a Market Survey

Non-Competitive Bid Contracts, Contracts Under $5000, Legal Services Contracts, and Expert Witness Contracts normally require that the Contract Project Manager (CPM) conduct a market survey and interview at least five potential consultants. Various circumstances can make this requirement impractical, the most common one being that there may be only one qualified candidate for the contract. Whatever the circumstances, the CPM must obtain a waiver signed by the Executive Director whenever a market survey of potential candidates is not conducted. The CPM should give a copy of the waiver to the Contracts Office to be placed in the contract file.

73

APPENDIX 14

Documenting a Non-Competitive Bid Justification

Non-Competitive Bid Contracts, MSA Contracts, and CMAS Contracts require documentation whenever only one bidder is considered for contract award. This documentation consists of completing two documents:

Non-Competitive Bid Contract Justification STD form 821

Referenced forms and examples, available in the “Contract Procurement Toolkit” on the Contracts Office website

Non-Competitive Bid Contract Justification STD form 821


State Contracting Manual (SCM), Volume II, Purchasing Authority Manual (PAM), Chapter 5

74

APPENDIX 15

Conducting a Market Survey

Market surveys are conducted for informal solicitations involving contracts under $5000. Referring to a brief statement of work, the Contract Project Manager contacts prospective bidders via phone or e-mail and questions them regarding their qualifications, interest in bidding, approximate cost to complete the contract, and approximate time to complete the contract. At least three prospective bidders should be contacted. The same questions should be asked of each prospective bidder, and all responses should be fully documented and sent to the Contracts Office for the contract file.

75

APPENDIX 16

Criteria for Evaluating Legal Firms & Expert Witnesses

Chapters 6.6 and 6.7 contain general criteria (e.g., quality, schedule of activities, and cost) for evaluating legal firms and expert witnesses. Specifics under these categories should be developed by the Contract Project Manager in response to the specific service needs of their division.

76

APPENDIX 17

Request for Offer (RFO) for a CMAS or MSA Contract

The Request for Offer (RFO) is the vehicle by which the Contract Project Manager (CPM) identifies the department’s needs and requests contractors to offer their best price and/or proposal to meet the department’s requirements.

Referenced form and example, available in The “Contract Procurement Toolkit” on the Contracts Office website

Request for Offer (RFO)

77

APPENDIX 18

Finding Qualified CMAS Contractors

The DGS website has detailed instructions on finding a CMAS contractor. Click on the following link or enter the URL into your browser:

More detailed information at this URL:

http://www.pd.dgs.ca.gov/cmas/contracts.htm

Most often you will do a search by Product/Service Description. The web page for doing that search is self-explanatory, but keep in mind that you may have to experiment with how you name the service you’re after. For example, entering “Project Management” yields no hits, but entering “Project Mgmt” yields 411 contracts!

Once you have a list of contractors with the service you’re after, clicking on any particular contractor’s contract number provides some detailed information. Sometimes they list a website where you can find out more about their specific services. Or, you can try doing a Google search on their name to find out other sources of information about them.

78

http://www.pd.dgs.ca.gov/cmas/contracts.htm

APPENDIX 19

Soliciting, Receiving, and Evaluating CMAS or MSA Offers

Soliciting

A CMAS or MSA RFO must be in writing. It may be delivered by fax, e-mail, US mail, or by the supplier picking up the RFO in person. The Contract Project Manager (CPM) must ensure that the RFO is documented and that all contractors get the same information.

Receiving

At least three offers are required in response to the RFO, one from SB or DVBE if available. The CPM should send the RFO to more than three potential bidders, if possible, to increase the chances of getting at least three respondents. If less than three responses are received, the CPM must have written evidence that two other potential bidders were contacted. If potential bidders initially don’t respond, they should be contacted and asked to send notice that they’re not interested. This notice will serve as the written evidence that they were contacted.

Evaluating

When evaluating offers for best value, apply the criteria contained in the RFO. In addition, refer to the following resources:


State Contracting Manual (SCM), Volume II, Purchasing Authority Manual (PAM), Sections 6.A.3.2 – 4

CMAS Services Guide, Section 6 Requirements for the Use of CA Multiple Award Schedules (CMAS),

Master Agreements, and Non-Competitively Bid Contracts

Other basic information on working with CMAS contract offers can be found at the following resource:


State Contracting Manual (SCM), Volume II, Purchasing Authority Manual (PAM), Section 6.B

(Note: For MSA contracts, the MSA guide provides specific instructions for selecting and evaluating potential contractors that can vary depending on the type of service being pursued.)

79

APPENDIX 20

Fair Housing Form


Fair Housing Form

80

APPENDIX 21

Interviewing and Evaluating CMAS Candidates

The CPM may optionally choose to interview prospective contractors to obtain more detailed information about them.

Phone interviews In-person interviews

The RFO should state that this interview is a possibility, and indicate approximately when the interviews would occur. Chapter 10 contains a link to an example of questions and scoring CMAS candidates.


Questions & Scoring for Oral Interview of CMAS Candidates

81

APPENDIX 22

Expert Witness Contract Preparation and Confidentiality

An expert witness contract must identify the CPUC Contract Manager. The designated CPUC Contract Manager for all expert witness contracts should be the assigned staff counsel from Legal Division’s Enforcement Section (CSD contracts) or Division of Ratepayer Advocacy (DRA contracts). The contract should also name the staff Project Coordinator, and direct that all work products be directed to the Project Coordinator as well as to the CPUC Contract Manager.

The contract should include a section entitled “Tasks,” subdivided into two parts, “General” and “Work Orders.” The first part entitled “General” will contain a general description of the services to be provided — i.e., “review utility application, data responses and other materials..., perform investigations, and analyses..., provide written report and oral testimony....” The second part entitled “Work Orders” should provide that individual work orders for specific tasks will be issued by Staff Counsel, setting out the scope, budget, and time frame for the particular tasks to be performed by the consultant.

All internal and external copies must be under cover of an Expert Witness Contract Cover Sheet. This cover sheet identifies the contract and associated information as “Confidential — Attorney Work Product” and directs questions and inquiries to the CPUC Contract Manager. The cover sheet:

Should be copied on colored paper to alert staff to maintain confidentiality Should be on the final contract provided to the Contracts Office and all other copies that

are distributed internally and externally Should be on all invoices received from the expert witness consultant and distributed to

Fiscal Office for payment and Budget Office for utility reimbursement

In addition, all logs and records in affected offices — Budget Office, Contracts Office, and Fiscal Office — that reference the contract and/or contract number shall include a notation that all information regarding the contract is confidential.

If the contract is reimbursable, the Contracts Office will also provide a copy of the contract, under cover of the Expert Witness Contract Cover Sheet, to the Budget Office, which will set up a book for tracking and submitting invoices to the utility.


Expert Witness Contract Cover Sheet

82

APPENDIX 23

Utility Reimbursable Contract Procedures

11/01/05

1. Authority for Reimbursement

CPUC orders are generally the source of authority for a CPUC industry division (e.g., Telecommunications, Energy) to undertake a utility reimbursable contract. Typically, these orders seek the performance of a regulatory audit (e.g. financial, operational, management) or operational investigation/analysis to be undertaken by a consultant under the direction of an industry staff and reimbursed by the utility.

2. Preliminary Notice to Utility of Potential Reimbursement Obligation & Appeal Opportunities

The CPUC order provides formal notice to the utility that the utility is required to fund a consultant to conduct an audit or investigation. Prior to the issuance of the order, utilities typically have a review period to comment on a proposed ruling containing such an order. If there were factual or legal error in an order requiring the utility to fund a consultant, the utility has an opportunity to raise any discovered error to the Commission.

Once the CPUC issues its order, the utility may also appeal or petition to modify the CPUC order setting forth the scope of the reimbursable contract.

3. Second Notice to Utility: Notice of RFP Issuance

As appropriate, the CPUC may order the Industry Division to select a consultant through the RFP process. If the order is silent, the Industry Division, in consultation with the Contract Office, will select the most appropriate and expedient approach permitted by state rules (e.g. RFP, sole source, CMAS) to select a consultant.

Under an RFP approach, the Industry Division will comply with the CPUC order in developing the technical aspects of the RFP and follow state contracting guidelines and procedures. Once the RFP is completed, the Industry Division management will notify the utility of the impending issuance of the RFP and provide an opportunity to meet and discuss the RFP’s scope in general terms. If possible (e.g., assuming project cost parameters are known), this discussion may include coverage of the estimated magnitude/range of the costs. This meeting would also provide a forum for the utility to apprise the Industry Division staff of any concerns regarding the scope. In providing this notification and opportunity for discussion, utility approval of the RFP is not required.

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4. Consultant Selection

Where the CPUC order contemplates consultant selection, the assigned Industry Division staff completes a Contract Request Form and Contract Request Summary. This Contract Request would state the problem to be addressed and explain the need for hiring an outside consultant to address the problem (this would include the reason why work cannot be done by someone in civil service). In the event of a sole source procurement contract, a justification would be needed for the selection of the particular consultant. The Industry Director, the Assistant General Counsel, and the Executive Director must approve the Contract Request.

Industry Division assigned staff will comply with state mandated rules for selecting a consultant (e.g., holding bidder’s conferences, issuing objective scoring criteria, and making interviews results available).

5. Third Notice to Utility: Potential Cost Magnitude

If the magnitude of the consultant funds were unknown or significantly different than at the time of the issuance of the RFP, Industry Division management will provide notification to the utility of the potential dollar impact range prior to the formal announcement of the winning consultant bid. (The winning consultant cannot be revealed until the formal public announcement under the RFP process). Such notice allows the utility to allocate the proper amount of internal funds to the project and to convey concerns about the general project scope/costs (This is not intended as a forum to demand a more limited scope audit or investigation.).

6. Contract/Work Orders

After a consultant has been selected and the protest period ends, the Contract is completed in consultation with the Contracts Office. The CPUC Contract Manager named in the contract should be an Industry Division manager/supervisor or the Legal Division’s Assistant General Counsel for that Industry. Once approved internally, the executed Contract is sent to the Department of General Services for review and approval.

The Contract should include a project plan setting out the scope, budget, and time frame for the particular tasks to be performed by the consultant. An approach utilizing individual Work Orders may also be used; this approach identifies particular work tasks, work products, schedule for production milestones and checkpoints, budget and hours.

7. Final Notice to Utility

After DGS has given approval to the Contract, the Executive Director will issue a letter to the utility: (1) identifying the encumbered amount of the consultant contract; (2) defining payment terms and what will be included on the reimbursement invoice; and (3) explaining the procedure for invoice dispute resolution (see Steps 10 & 11).

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8. Contractor Invoices

Contractor invoices are submitted to the Contracts Office, which reviews them to determine if they are properly prepared and if there is a sufficient balance to pay. If satisfactory, the Contract Office forwards invoices to the CPUC Contract Manager for verification and approval.

In consultation with staff counsel and the staff project team, the CPUC Contract Manager reviews the invoices to verify hours worked, expenses claimed, persons assigned to tasks, and work product produced against the applicable Work Orders. If approved, the invoices are forwarded to Fiscal Office for payment.

9. Reimbursement Invoices

Budget Office will submit to the utility reimbursement invoices with copies of the contractor invoices, redacted to maintain (where confidential) the consultant’s detailed breakout of billable hours and the substance of any attorney work product. The reimbursement invoices are to be paid in full within 30 days.

The reimbursement invoice shall identify the authorizing CPUC Contract Manager and indicate his or her phone number to be contacted in case of questions.

10. Invoice Dispute Resolution

If a utility disputes any billed consultant expenses, it must be within the 30-day payment period indicated on the invoice and the utility must provide: (1) payment in full to the CPUC and (2) a written letter to the CPUC Contract Manager identifying the disputed expense and the basis for the dispute. The CPUC Contract Manager should meet and confer with the utility within 10 calendar days of the date of the written dispute letter. After this subject has been discussed, the CPUC Contract Manager should respond in writing to the utility’s letter. If the resolution of this dispute is in the utility’s favor, the CPUC can reflect the disputed expense as a credit in the following month’s invoice. If not, further escalation to the next level of CPUC management is an option.

11. Utility Challenge to Contract Work Scope

If a utility’s concerns with contract work scope are not resolved in prior steps in this process, a utility can seek to challenge these matters formally in the proceeding through the hearing process or in filed comments.

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CALIFORNIA PUBLIC UTILITIES COMMISSIONFISCAL SECTION - REIMBURSABLE EXPENDITURE FORM

Example

CPUC REIMBURSABLE EXPENDITURE PROFILE

CONTACT: JOHN DOE *PROJECT NAME OR TITLE: SOCAL GAS SEMPRA (FIG) *APPLICANT NAME: SEMPRA / SOCALGAS, INC. *APPLICATION # : A. XX-XX-XXX *CONTRACT # : 00PS5030D-U *FISCAL YEAR : 2001/2002 *CONTRACT REIMBURSER: SEMPRA /SOCALGAS *

JOYCE PADLESCHADT*101 ASH STREET*SAN DIEGO, CA 92102*Phone # : *Email: [email protected]

(*) Required Fields

Blank Form

CPUC REIMBURSABLE EXPENDITURE PROFILE

CONTACT:PROJECT NAME OR TITLE:APPLICANT NAME:APPLICATION # :CONTRACT # :FISCAL YEAR :CONTRACT REIMBURSER:

(*) Required Fields

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APPENDIX 24

Standard Terms and Conditions

1. Anti-Trust Provision : Language found in SCM 5.30 C must be included in every solicitation document. Language is based upon GC Sections 4550, 4552, 4554 and subdivision c of section 16750 of the Business and Professions Code.

2. Child Support Compliance (IA exempt) : All agreements exceeding $100,000.

3. Corporate Qualifications to do Business in CA : (The Statement of Compliance is included in the document “Contractor Certification Clauses” CCC - 1005 .) Verifies that contractor is qualified to do business in CA and is in compliance with R&TC 23101. Verification can be obtained from the Secretary of State’s Office at 916-845-4171 or www.ss.ca.gov.

4. Disabled Veteran Participation (DVBE) : Consultant procurements, except Expert Witness, Legal Services, contracts less than $10,000 and/or those specifically exempted in the procurement document must include a three percent participation requirement. A “prime” contractor must include a certified disabled veteran on its team who will undertake tasks that are equal to at least three percent of the dollar value of the contract. Invoices must reflect that three percent of the tasks, if appropriate, have been completed by the DVBE listed on the Agreement. Requirement can be met by using a DVBE firm for purchase of supplies, equipment, and/or travel arrangements for the project that equals three or more percent of contract value. If a DVBE is not identified, prime must make a “good faith effort” (as outlined in SCM 8.13.2). Proposals that do not contain three percent DVBE or a good faith effort will be rejected as “non-responsive.”

5. Disabled Veteran Business Enterprise (DVBE) Program Requirements : These apply to all CPUC competitively bid (IFB, RFP, RFQ) and CMAS contracts. See: Documentation of Disabled Veteran Business Enterpries Program Requirements at http://www.pd.dgs.ca.gov/dvbe.

6. Drug-Free Workplace Certification : Contractor must comply with GC 8350 et.seq by affixing a signature on STD Form 21 or by an equivalent certification. (The Statement of Compliance is included in the document “Contractor Certification Clauses” CCC - 1005 .)

7. Enterprise Zone, Target Area Preference, Local Agency Military Base Recovery Act (contracts in excess of $100,000): Information may be obtained from DGS Protest and Dispute Resolution Unit.

8. Insurance Requirement (if Applicable) : Contractor must provide proof of insurance for workers compensation coverage for any employee completing tasks under the scope of the Agreement and may be requested to provide proof of malpractice coverage, general liability, business auto, etc.

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http://www.documents.dgs.ca.gov/ols/CCC-1005.doc

http://www.pd.dgs.ca.gov/dvbe

http://www.documents.dgs.ca.gov/pd/smallbus/9_15_03_DVBE_PR_1_2.pdf

http://www.ss.ca.gov/


9. Priority Hiring (contracts in excess of $200,000) : Must comply with Welfare and Institutions Code 11200 and PCC 10353.

10. Progress Payments : PCC 10346 & 10379 may be used when contract term exceeds four months; must withhold 10 percent retention from each invoice (paid upon expiration of contract or at the conclusion of each separate and distinct tasks).

11. Resolution Dispute : Agreement must specify, per PCC 10240.5, 10381, 22200, the manner in which contract dispute must be settled.

12. Small Business Participation : Each IFB or RFP must contain information regarding awarding a small business preference and how to obtain certification (OSBCR) for a bidding small business. Web site www.osmb.dgs.ca.gov/sbcert/program.htm may be accessed for complete information. Secondary RFPs are discouraged as they dilute the Small Business Preference. Methodology as outlined in SCM Section 8.

13. Statement of Compliance : Bidder must certify that he/she complies with Government Code Section 12990 a-f. STD Form 19, or an equivalent certification. (The Statement of Compliance is included in the document “Contractor Certification Clauses” CCC - 1005 .)

14. Subject to the Availability of Funds : A contract may not be written unless funds are available in the Commission’s budget as established by Governor’s Budget each fiscal year. (Note: Contract Project Manager should confer with Budget Officer and Contracts Officer prior to commencement of procurement process to ensure funds are available.)

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APPENDIX 25

Contract Certification Clauses

For any contract NOT with another governmental agency, the Contractor must sign the certification form below. The Contractor Certification clauses are appended to the contract.

CCC-1005

CERTIFICATION

I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly authorized to legally bind the prospective Contractor to the clause(s) listed below. This certification is made under the laws of the State of California.

Contractor/Bidder Firm Name (Printed)

Federal ID Number

By (Authorized Signature)

Printed Name and Title of Person Signing

Date Executed Executed in the County of

CONTRACTOR CERTIFICATION CLAUSES

1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with the nondiscrimination program requirements. (Gov. Code §12990 (a-f) and CCR, Title 2, Section 8103) (Not applicable to public entities.)

2. DRUG-FREE WORKPLACE REQUIREMENTS: Contractor will comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:

a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.

b. Establish a Drug-Free Awareness Program to inform employees about:

1) the dangers of drug abuse in the workplace;

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2) the person's or organization's policy of maintaining a drug-free workplace;3) any available counseling, rehabilitation and employee assistance programs; and,4) penalties that may be imposed upon employees for drug abuse violations.

c. Every employee who works on the proposed Agreement will:

1) receive a copy of the company's drug-free workplace policy statement; and,2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.

Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that any of the following has occurred: the Contractor has made false certification, or violated the certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et seq.)

3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies that no more than one (1) final unappealable finding of contempt of court by a Federal court has been issued against Contractor within the immediately preceding two-year period because of Contractor's failure to comply with an order of a Federal court, which orders Contractor to comply with an order of the National Labor Relations Board. (Pub. Contract Code §10296) (Not applicable to public entities.)

4. CONTRACTS FOR LEGAL SERVICES $50,000 OR MORE- PRO BONO REQUIREMENT: Contractor hereby certifies that contractor will comply with the requirements of Section 6072 of the Business and Professions Code, effective January 1, 2003.

Contractor agrees to make a good faith effort to provide a minimum number of hours of pro bono legal services during each year of the contract equal to the lesser of 30 multiplied by the number of full time attorneys in the firm’s offices in the State, with the number of hours prorated on an actual day basis for any contract period of less than a full year or 10% of its contract with the State.

Failure to make a good faith effort may be cause for non-renewal of a state contract for legal services, and may be taken into account when determining the award of future contracts with the State for legal services.

5. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the State of California.

6. SWEATFREE CODE OF CONDUCT:

a. All Contractors contracting for the procurement or laundering of apparel, garments or corresponding accessories, or the procurement of equipment, materials, or supplies, other

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than procurement related to a public works contract, declare under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the state pursuant to the contract have been laundered or produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. The contractor further declares under penalty of perjury that they adhere to the Sweat free Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108.

b. The contractor agrees to cooperate fully in providing reasonable access to the contractor’s records, documents, agents or employees, or premises if reasonably required by authorized officials of the contracting agency, the Department of Industrial Relations, or the Department of Justice to determine the contractor’s compliance with the requirements under paragraph (a).

7. DOMESTIC PARTNERS: For contracts executed or amended after July 1, 2004, the contractor may elect to offer domestic partner benefits to the contractor’s employees in accordance with Public Contract Code section 10295.3. However, the contractor cannot require an employee to cover the costs of providing any benefits which have otherwise been provided to all employees regardless of marital or domestic partner status.

DOING BUSINESS WITH THE STATE OF CALIFORNIA

The following laws apply to persons or entities doing business with the State of California.

1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current or former state employees. If Contractor has any questions on the status of any person rendering services or involved with the Agreement, the awarding agency must be contacted immediately for clarification.

Current State Employees (Pub. Contract Code §10410):

a. No officer or employee shall engage in any employment, activity or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity or enterprise is required as a condition of regular state employment.

b. No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide goods or services.

Former State Employees (Pub. Contract Code §10411):

a. For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a contract in which he or she engaged in any of

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http://www.dir.ca.gov/

the negotiations, transactions, planning, arrangements or any part of the decision-making process relevant to the contract while employed in any capacity by any state agency.

b. For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general subject area as the proposed contract within the 12-month period prior to his or her leaving state service.

If Contractor violates any provisions of above paragraphs, such action by Contractor shall render this Agreement void. (Pub. Contract Code §10420)

Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each meeting of the board or commission, payment for preparatory time and payment for per diem. (Pub. Contract Code §10430 (e))

2. LABOR CODE/WORKERS' COMPENSATION: Contractor needs to be aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Contractor affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor Code Section 3700)

3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)

4. CONTRACTOR NAME CHANGE: An amendment is required to change the Contractor's name as listed on this Agreement. Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said amendment.

5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:

a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the contractor is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled.

b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. Although there are some statutory exceptions to taxation, rarely will a corporate contractor performing within the state not be subject to the franchise tax.

c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California. Agencies will

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determine whether a corporation is in good standing by calling the Office of the Secretary of State.

6. RESOLUTION: A county, city, district, or other local public body must provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of the agreement.

7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution.

8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all contractors that are not another state agency or other governmental entity.

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