Craig J. Nichols, Secretary

Contractor Orientation Meeting

New State Term Contracts for Management Consulting Services & Financial and Performance Audits

January 23, 2014

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Introductions

Today’s PresenterTrey Collins, Division of State PurchasingAssociate Category Manager

Contract ManagerCorina Chiorescu, Division of State PurchasingContract Manager

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Table of Contents

• Contract Overview

• Contract Objectives

• Contractor Responsibilities

• Q&A

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Table of ContentsContract Overview

Management Consulting ServicesContract Number: 973-000-14-01

Contract Term: Three years / three optional one-year renewals

Expiration Date: 1/14/2017

Commodity Code: 973-500

Contractors

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Contract Overview – STC Webpage

http://www.dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_term_contracts/management_consulting_services2

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Table of ContentsContract Overview

Financial and Performance AuditsContract Number: 973-000-14-02

Contract Term: Three years / three optional one-year renewals

Expiration Date: 1/14/2017

Commodity Code: 991-010

Contractors• Carr, Riggs & Ingram • KPMG

• Ernst & Young • McGladrey

• Grant Thornton • Thomas Howell Ferguson

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Contract Overview – STC Webpage

http://www.dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_term_contracts/financial_and_performance_audits

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Table of Contents Contract Objectives

Management Consulting Services & Financial and Performance Audits

1. Easier to use for customers and contractors

2. Meaningful competition between contractors

3. Pricing options (hourly rate & project-based)

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Easier To Use

Management Consulting Services & Financial and Performance Audits

• One category of services per contract

• Simplified price sheet

• Smaller number of vendors

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Meaningful Competition

Management Consulting Services & Financial and Performance Audits

• Contract’s RFQ Requirement (Exhibit A, s. 18)– Customers must RFQ all contractors for all projects

– Increases competition for price and services

– Contractors are not required to compete on every RFQ

• OK for customers to compete and negotiate lower rates– Hourly rates are “not-to-exceed” prices

– Contractors should expect Customers will negotiate lower rates

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Hourly Rate Pricing Option

Management Consulting Services & Financial and Performance Audits

• Price sheets list ceiling hourly rates for five positions– Principal– Senior Consultant– Consultant– Junior Consultant– Program & Administrative Support

• Customers must RFQ all contractors for all projects

• Customers can negotiate lower hourly rates

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Project-Based Pricing Option

Management Consulting Services & Financial and Performance Audits

• May be used for projects with complex requirements

• Customers must RFQ all contractors for all projects

• Customers can negotiate lower project price

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Contractor Responsibilities

Management Consulting Services & Financial and Performance Audits

• Reporting

• Forms & Documentation

• Review Meetings

• Contract Marketing

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents ReportingManagement Consulting Services & Financial and

Performance Audits

• Quarterly Sales Reports– Must use Form 2: Contract Quarterly Report (MS Excel)

– Due within 30 calendar days of the end of each quarter

– Submit to Corina Chiorescu, Contract Manager

• Transaction Fee Reporting– One percent fee on all sales under the contract

– Submit to MyFloridaMarketPlace through Vendor Information Portal (VIP)

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Forms & Documentation

Management Consulting Services & Financial and Performance Audits

• Contact Information and Ordering Instructions (Form 3)

• Subcontracting (Form 1)

• Proof of Insurance

• Preferred Pricing Affidavit

– Required by Section 216.0113, F.S.

– Must be submitted annually to Contract Manager

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Business Review Meetings

Management Consulting Services & Financial and Performance Audits

• Conducted periodically with each contractor

• Topics that may be addressed:– Contractor performance

– Sales reports

– Customer service

– Unresolved issues

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Contract Marketing

Management Consulting Services & Financial and Performance Audits

• Contract customers– State Agencies

– Other Eligible Users

• Contract-related marketing materials must be approved by State Purchasing (PUR 1000, s. 28)

• Use of the Florida State Seal is regulated by Department of State http://www.flheritage.com/facts/symbols/seals.cfm

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Table of Contents Q & A

Management Consulting Services & Financial and Performance Audits

Any questions?

Contract Overview

Contract Objectives

Contractor Responsibilities

Q&A

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Contact Information

• Corina Chiorescu, Contract Manager, (850) 921-0030; corina.chiorescu@dms.myflorida.com

• MyFloridaMarketPlace - Vendor Information Portalhttp://vendor.myfloridamarketplace.com

• MyFloridaMarketPlace Customer Service Desk(866) 352-3776; vendorhelp@myfloridamarketplace.com

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Helpful Links

• MyFloridaMarketPlace - Vendor Information Portalhttp://vendor.myfloridamarketplace.com

• MFMP Transaction Fee & Reporting

• Vendor Toolkit

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Appendix

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Table of Contents Scope of Services

Management Consulting Services

• Management or strategy consulting • Program planning and evaluations • Studies, analyses, scenarios, and reports relating to an

agency's business programs or initiatives• Executive/management coaching services• Customized business training as needed to successfully

perform/complete a consulting engagement • Policy and regulation development assistance• Process and productivity improvement • Expert witness services in support of litigation, claims, or

other formal cases • Advisory and assistance services • Systems alignment and consolidation

Contract Overview

What’s New

Pricing

How To Use The Contract

Q&A

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Table of Contents Scope of Services

Financial and Performance Audits

• Financial Statement Audits • Segments of Financial Statements • Internal Controls • Compliance with Laws and Regulations• Economy and Efficiency Audits• Program Results and Program Fraud Audits

Contract Overview

What’s New

Pricing

How To Use The Contract

Q&A

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Table of ContentsStatement of Work

Management Consulting Services & Financial and Performance Audits

• Purpose: A Statement of Work establishes the specific deliverables, costs, payment schedules, start/ completion dates, etc. for specific projects

• Statement of Work may contain additional terms and conditions negotiated by the customer

– Additional terms may supplement those contained in the contract – Additional terms shall not conflict with the terms established by the

contract• The following items should be included in every Statement of Work:

– Contract Manager– Project Completion Dates– Termination for Cause Language– Change Request Process– Other Considerations (Inspection and Acceptance Terms, Liability

Insurance, Minority Participation, Performance Bond, Performance Management System)

Contract Overview

What’s New

How To Use The Contract

Q&A