Service Level Agreement University Services–Purchasing with University Services customers Service Level Agreement Overview This is a Service Level Agreement (SLA) between University Services–Purchasing (USP) and the following customers: Facilities Management (FM), Capital Planning and Project Management (CPPM), and U of M-Morris Plant Services. USP is also has systemwide responsibility for capital projects and facilities related purchases on all University campuses. The purpose of this agreement is to identify the basic services provided by USP to the customers and describe the processes in place to ensure integrity, economy, efficiency and accountability. This SLA is in effect on July 1, 2011 and will remain in effect until a new agreement is finalized. This agreement specifically addresses: I. Scope of services II. Roles and Responsibilities III. Service standards by process IV. Performance metrics V. Problem management Appendices: A – Purchasing Thresholds and Requirements B – Definitions I. Scope of Services Service Availability: USP staff members are available from 7:30am to 4:00 pm Monday through Friday. Contact USP by email at [email protected]. Emails are returned within 24 hours. Contact information on the individual roles within USP is available at this link or at the USP website: http://www.uservices.umn.edu/purchasing/docs/staff_director.pdf. USP services cover purchases using the Unifier and Compass Systems for three purchasing categories: Goods and Standard Services Purchasing Goods: supplies and parts related to maintenance, repair, operating, electrical, plumbing, custodial, painting, etc. Standard Services: services that are routinely provided to a large number of customers, usually at published rates without significant customization, such as building maintenance, window washing, pest control, etc. Page 1 of 13 University Services – Purchasing Service Level Agreement – July 2011 Construction Purchasing is the process of procurement related to constructing something. Construction may occur in new building or renovation of existing buildings, including but not limited to major remodeling, asbestos abatement, elevator modernization, tuck pointing, roofs, etc. Architect, Engineering and Construction related Consultants Purchasing is a customized service consisting of specialized or creative expertise pertaining to design and/or construction consulting. These services are based on personal skills or ideas of an individual(s) that are provided for a fee, which may be determined individually with each customer for each service contract. USP provides services that can be grouped into five service areas: Vendor Management defined as the processes of vendor authorization, vendor registration (in USP Registered Vendor List), and Contractor Safety Information and Safety violations record collection. Processes vary depending on forms and information needed from vendors. Order Processing begins with the review of an approved purchase request for a good and/or a service and goes through approval of final invoice payment. Request for Bid / Request for Proposal Processes are the procedures related to the RFB/RFP, a document usually sent to multiple vendors, inviting them to make a competitive offer to provide goods or services to the U. Construction Contract Officer refers to the processes through which USP issues construction contracts after the contract has been signed by all parties, and work begins. Communications and Document Management are services involved in communicating and maintaining USP website, processes, documents, files, time tracking and training. In general, the USP team reviews approved purchase requests to ensure the required information is provided and that the proper processes are followed in selecting the vendor. The services provided by the USP team vary depending on the area, category and value of the purchase. (See Appendix A) Services not covered by USP • • Purchasing of goods or services using a departmental Purchasing Card (Pcard). All other purchases not pertaining to construction and or maintenance of facilities are covered by Central University Purchasing. A list of types of purchases and respective contact information for assistance may be found here: http://purchasing.umn.edu/docs/category2.doc Page 2 of 13 University Services – Purchasing Service Level Agreement – July 2011 II. Roles and Responsibilities Integrity within the University and with the external vendor community is based on high ethical standards. All departmental staff responsible for any portion of purchasing processes should be familiar with the Code of Ethics (http://purchasing.umn.edu/docs/CodeOfEthics.pdf) and understand their role in maintaining compliance with University policies and procedures. USP role is to provide timely, consistent customer focused management oversight and service to facilitate purchases made by University Services Customers. USP ensures all appropriate U of M stakeholders are considered in purchasing practices. USP strives to ensure smooth and consistent processes for purchase and delivery of goods and services as well as the invoice payment process. Responsibilities include: • Provide timely information, communication and service • Provide clear templates and forms • Provide medium for obtaining data to set up vendors accurately in systems and help give those vendors an opportunity to do work with the University • Partner with customer to ensure all purchasing forms are complete and accurate • Serve in advisory role throughout the RFB/RFP process • Provide documentation to appropriate U of M stakeholders for contracts (OGC, etc) and/or for audit purposes • Provide instrument or means for providing vendor feedback from requestors • Ensure compliance with appropriate federal, state, local or University laws, regulations and/or policies • Ensure all orders are placed in a timely manner The Customer role is to understand and document the scope of work; recognize and follow proper processes; and to partner with USP. Customer is also called “Requestor” throughout this document. Responsibilities include: • Properly plan and schedule routine work • Insure appropriate approvals are initiated • Provide complete and accurate information on Purchasing Forms and Documents, including required supporting documentation • Verify vendors are in system; if not – provide complete vendor data for USP • Use appropriate system to initiate purchase • Develop complete and accurate scope of work • If applicable, serve on evaluation committees Page 3 of 13 University Services – Purchasing Service Level Agreement – July 2011 III. Service Standards by Process: The following tables outline the services provided by USP by function or process. Once the scope of work is developed by the customer, the expected level of service is designed to aid in estimating and planning. Vendor Management Function or Process Process vendor authorization forms Process vendor registration applications: -Construction - A&E Professionals Service Expected Service Level (For use in planning) Vendor forms posted on website for completion and submission by requestor/potential vendor USP adds vendor or updates vendor profile in appropriate systems Receive Vendor Registration and Contractors Safety Information - add or update into the USP Registered Vendor List (internal document) Five days minimum Communicate issues to vendors in timely manner Vendor becomes registered within 4 weeks of application receipt Coordinate contractor safety evaluation process Order Processing Function or Process Review approved requests Complete the Purchase Order Administer the order Service Expected Service Level (For use in planning) Collect documentation; review for completeness Issue PO to vendor Manage of delivery, receipt and invoice payment System Specific: COMPASS: Run reports to ensure the vendor has received the order; note any price and/or delivery changes; follow-up on all orders that are past expected delivery dates; and reconcile any pricing variance on the invoices Five (5) days minimum Communicate issues to requester in timely manner Within 48 hours Communicate issues to vendors, requestors, stores clerks and accounts payable on a regular (minimum weekly) basis Unifier: Ensure the vendor has received the order and work to provide prompt payment of invoice when change orders may be necessary. Page 4 of 13 University Services – Purchasing Service Level Agreement – July 2011 Request for Bid Function or Process Request for Bid (RFB) Service Expected Service Level (For use in planning) Prepare • Work closely with requestor in drafting RFB to ensure it is written in a way to achieve customer goals while protecting the University Varies depending on complexity of RFB Planning Estimate (USP time): Simple – 2 days Complex – 30 days Communicate issues to requestor in timely manner Review requestor supplied list of vendors • Supplement vendor list if possible Advertise • Enter RFB into the MBid system • Email RFB to vendors identified by requestor Review • Distribute MBid system bid tabulation to requestor • Work with requestor to review/score vendor bids • Validate vendor selection Select • Process a PO once final vendor selection is complete (Issue the Notice to Proceed) Enter into system within 3 days of receipt Mbid system tabulation and evaluation sheet is made available to the team at close of bid time frame shortly after the bid is due Validation occurs within 1 day of vendor selection Within 5 days of final vendor selection The typical Request for Bid process, from the time the RFB is prepared and advertised to the selection of the vendor, takes about 3 – 4 weeks to complete. Page 5 of 13 University Services – Purchasing Service Level Agreement – July 2011 Request for Proposal Function or Process Request for Proposal (RFP) Service Expected Service Level (For use in planning) Prepare • Work closely with requestor in drafting RFP planning form to ensure it is written to achieve customer goals and comply with all University purchasing policies Varies depending on complexity of RFP Planning Estimate (USP time): Simple – 2 days Complex – 30 days and up Communicate issues to requestor in timely manner Advertise • Advertise on USP website • Notify identified vendors of RFP via email • Serve as the single point of contact for vendor questions to ensure all vendors receive the same information; clarifies requirements Review • Train requestor teams selected to review proposals • Distribute Bid Tabulation and Evaluation sheets to team • Work with customer team to review/score vendor proposals • Review documentation to recommend a short list of vendors to bring in for interviews/validation of proposals Once RFP finalized upload to website in 3-5 days RFP is issued for 2-3 weeks during which time vendor questions are answered Training conducted during the 2-3 weeks the RFP is ‘on the street’ Once all RFPs are received, USP will evaluate RFPs and provide the requestor with a recommended short list within one day if an interview is necessary Select Respond within 3 days of • Meet with requestor to develop interviews, if applicable, with interview questions, collaborate on final recommendation vendor interviews, if applicable • Monitor interviews, if applicable • Validate vendor selection Publicize selection process on • Provide final recommendations USP website within 1 day of • Notifies awarded vendor decision • Notifies non-award vendors, provides information and education for future opportunity The typical Request for Proposal process, from the time the RFB is prepared and advertised to the selection of the vendor, takes about 4 - 5 weeks to complete. Page 6 of 13 University Services – Purchasing Service Level Agreement – July 2011 Construction Contract Management Function or Process Construction Contract Management USP becomes involved at the very beginning for this delivery method: • Lump Sum USP becomes involved after “Guaranteed Maximum Price” contract amount for these delivery methods: • Construction Manager At Risk(CMAR) • Design Build(DB) Service Expected Service Level (For use in planning) Collect / Validate Vendor Documentation in accordance with U Wide Policy: Managing University Records and Information • For LUMP SUM contracts ONLY Prepare Construction Agreement and collect signatures • Prepare, collect, review and approve Payment and Performance Bonds (for all projects greater than $75,000) • Prepare, collect, review and approve Certificate of Insurances (for all projects) Varies depending on contract Maintain complete file for requestor Communicate issues to requestors in timely manner Issue final Purchase Order to Vendor • Upon receipt of completed and approved Payment and Performance Bonds, Certificate of Insurances and, for lump sum contracts only, Construction Agreement Communicate issues to requestor in timely manner Collect certified payroll documents of Prevailing Wage, when requested by Unions Within 2 days of request Upon receipt of complete and approved changes • If amended agreement exceeds 10 percent of original contract value, collect additional Bonding requirements Process and communicate changes within 3 days Provide response and document for internal and external auditors Maintain complete file for requestor Within 30 days after issuance of Notice to Proceed (Lump Sum)/Bond and Insurance collection letter (CMAR/DB) Communicate issues to requestor in timely manner The typical Construction Contract Management process, from the time the vendor is notified to the collection and approval of their documents, takes about 30 days to complete. Page 7 of 13 University Services – Purchasing Service Level Agreement – July 2011 Communications and Document Management Function or Process Document and Website Management Service Maintain all RFP documents processed by USP Maintain Bidding documents Expected Service Level Maintain complete file for requestor Communicate issues to customer in timely manner Maintain complete file for requestor Maintain Purchasing forms on USP website Communicate issues to customer in timely manner Update forms to maintain compliance with internal and external requirements Maintain Vendor Registration Forms Communicate issues to customer in timely manner Update forms to maintain compliance with internal and external requirements Maintain electronic files of project documents pertaining to procurement Communicate issues to customer in timely manner Update forms to maintain compliance with internal and external requirements Website maintenance Communicate issues to customer in timely manner Timely updates Time Tracking Enter/load all time spent on the procurement process into Unifier. Communicate changes to customers Accurate and prompt processing of time tracking Training Staff training on evaluation process and on application of this Service Level Agreement Debrief Vendors on the RFP/RFB selection process Ongoing, as needed by customer Ongoing, as needed or as requested by vendors Vendor Debriefings Page 8 of 13 University Services – Purchasing Service Level Agreement – July 2011 IV. Performance metrics Reports will be created on the accomplishment of the Expected Service Levels for all processes involved. These reports will be used internal to USP to inform on capacity and analyze business needs. USP will meet with the University Services customers (FM, CPPM and U of M-Morris Plant Services) at least quarterly to obtain feedback on service quality and performance. Annually a summary report of accomplishments to Expected Service Levels will be provided to leadership in the requestor areas and to University Services Finance. V. Problem management Issues that arise which cannot be resolved by USP and/or the customers will be escalated to the Director of Finance for the customer’s department. Page 9 of 13 University Services – Purchasing Service Level Agreement – July 2010 Appendix A: Purchasing Thresholds and Requirements Total Purchase Goods and Standard Services Value $0Nothing Required $1,999.99 Construction Professional Services (Non A&E) See U-wide Policy & Procedures Architects, Engineers and Construction related Consultants (A&E) Nothing Required Nothing Required $2,000- A. Obtain a Price Quote, or $2,999.99 B. Setup a Time Period (Annual) Blanket Contract $3,000$9,999.99 A. Obtain a Price Quote A. Obtain a Price Quote $10,000- A. Complete Price Comparison Form, or $24,999.99 B. Utilize a Preapproved Source A. Complete Price Comparison Form, or B. Utilize a Preapproved Source A. Invoice Required A. University Signed CPS Required $25,000$49,999.99 A. University & Vendor Signed CPS Required $50,000- A. USP Issued Competitive RFP / RFB, or $99,999.99 B. Utilize a Preapproved Source A. Purchasing Issued Competitive RFP / RFB B. Utilize a Preapproved Source $100,000$199,999.99 A. USP Issued Competitive RFP / RFB, or B. Utilize a Preapproved Source $200,000$249,999.99 A. USP Issued Competitive RFP / RFB, or B. SDSB Issued RFP (State Funded Projects), or A. USP Issued Competitive RFP / C. Utilize a Preapproved Source RFB, or B. Utilize a Preapproved Source $250,000 $∞ 1. Potential 2. Pre-Approved 3. Sources 4. 5. 6. U-Wide Contracts (Limit: $250k) 1. State Contracts (Limit: $250k) 2. E & I Contracts (Limit: $250k) University ISOs (Limit: None) Special Payment List (Limit: None) Exceptions to Regents Policy (Limit: None) Consortium for Construction (Limit: $250K) Exceptions to Regents Policy (Limit: None) 1. Exceptions to Regents Policy (Limit: None) 1. Exceptions to Regents Policy (Limit: None) Page 10 of 13 Appendix B - Definitions University Services – Purchasing Service Level Agreement – July 2011 Bid Threshold: The University of Minnesota’s formal purchasing bid thresholds for goods and standard services is $50,000; for Architect, Engineering and Construction related Consultants services is $100,000; and for Construction Services is $250,000. The formal bid threshold is the dollar level at which Central Purchasing Services is required by policy to publicly solicit competitive bids or proposals or approve an exception, and issue the purchase order. Buyer: Role within USP responsible for, and authorized to, manage and/or oversee procurement for the University. Buyers are involved in all stages of purchasing from planning through placement of orders and approval of final payment, regardless of system or value. COMPASS: A CMMS product used by Facilities Management, specifically designed to manage customer requests, maintenance activities, inventory, purchasing and time records. It has been used by the University of Minnesota since 1999. Construction Delivery Methods: Design/Bid/Build – (DBB) is a delivery method in which design and construction phases of a construction project are bid and performed by two independent contractors under two distinct contracts. The design is typically complete before a contractor is brought on to construct the project. This may also be referred to as a Lump Sum bid. Design/Proposal/Build – (DPB) is a delivery method in which design and construction phases of a construction project have two distinct RFPs and performed by two independent contractors under two distinct contracts. The design is typically complete before a contractor is brought on to construct the project. This may also be referred to as a Lump Sum proposal. Design/Build – (D/B) is a delivery method in which a contractor partners with design professionals to complete both design and construction for a fixed price, based on a program description and performance specification. Construction Manager at Risk – (CMAR) is a delivery method which entails a commitment by the construction manager to deliver the project within a Guaranteed Maximum Price (GMP). The construction manager acts as consultant to the University in the development and design phases (often referred to as "Preconstruction Services"), but as the equivalent of a general contractor during the construction phase. Page 11 of 13 Appendix B - Definitions University Services – Purchasing Service Level Agreement – July 2011 Guaranteed Maximum Price –(GMP) is a figure, based on competitive subcontract bids, that can be provided by a construction manager or design builder in which the firm guarantees that the cost of the work will not exceed a specified amount for an agreed upon scope. Evaluation Team: Group that evaluates the proposals on the basis of evaluation criteria stated in the RFP. Team members, which may comprise people inside the University and outside the University, are selected on the basis of their interest in and/or expertise in the services. Lump Sum: A contract under which a principal (customer or owner) agrees to pay a contractor a specified amount for completing work without requiring a cost breakdown. PIPS: Performance Information Procurement System (PIPS) is an information based procurement system for selecting high-performing contractors and for minimizing the owner/contracting organization's risk. PIPS is a method used in Best Value Procurement. The definition of "Best Value" is predetermined in a proposal solicitation to include a combination of quality, price, past performance and other elements necessary for a project. Procurement: The process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. It commonly involves: o purchase planning o standards determination o specifications development o supplier research and selection o value analysis o financing o price negotiation o making the purchase o supply contract administration o inventory control and stores o disposals and other related functions Requestor: Individual responsible for initiating the purchasing process. This includes properly scoping work, working with vendors to identify needed goods and/or services, working with USP in drafting RFB/RFP, and obtaining appropriate approvals and/or documents. In FM, the requestor is typically a Team Manager/Supervisor, Planner, or Trade/Mechanic. In CPPM, the requestor is typically a Project Manager. Page 12 of 13 Appendix B - Definitions University Services – Purchasing Service Level Agreement – July 2011 Request For Bid: (RFB) is an invitation to vendors to submit a written offer to supply goods and/or services. The RFB will require the vendor to define their specific financial commitments that comprise the offer. The RFB evaluates price only. Request For Proposal: (RFP) is an invitation to vendors to submit a written offer to supply services. The RFP will require the vendor to define the specific financial and/or service commitments that comprise the offer, such as schedule, vendor experience, safety, etc. Targeted Group Business: Small businesses, at least 51% owned, operated and controlled on a daily basis by minorities, women, or persons with a substantial physical disability as designated by the Minnesota Commissioner of Administration. Must meet the definition of a TGB as defined in Minn. Stat. Sect. 137.35 and have its principle place of business in Minnesota. Unifier: A purpose-built platform that manages and organizes project management information. The platform encourages disciplined processes and better performance management as well as saves time and effort of project manager organization. Unifier improves collaboration, minimizes claims, establishes benchmarks, and reduces change orders. Page 13 of 13