Service Provider Training ModuleService Provider Training Module
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Training Agenda
Update the Schools and Departments with the new Agreements in place and where they can be found on our Website
Purchasing Role
What is a Service Provider
Services Agreement Process
Review the Existing/New Forms
What is an Independent Contractor
Highlight the Insurance Requirements for All Consultants
Review Commodity Codes
Guide Users through New and Improved Website
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Purchasing Role in the Process
Purchasing is the central point of contact for all Agreements where there are services being provided to the University
Purchasing is responsible for coordinating the necessary University resources (Office of the General Council, Risk Management, Medical Compliance, etc.) in order to bring agreement’s to conclusion
Departments having contract questions from suppliers should contact Purchasing for review and commentary
Purchasing coordinate’s between the University and the supplier during contract negotiations
Only those designated by the University Trustees are permitted to Sign Agreements on behalf of Columbia
We Have a Shared Responsibility in the ProcessWe Have a Shared Responsibility in the Process
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Why do we have Purchasing Policies, Practices and Processes?
Comply with VariousGovernment Organizations (e.g. FAR, OMB, etc)
Reduce LiabilityReduce Reputational Risk
Employ Best Business Practices
Meet Audit Requirements Meet IRS Regulations
Create OpportunitySpend Dollars Wisely
Change in th
e Way we do Business
Statutory Requirements
Value for Money
FAR – Federal Acquisition Regulation: Basic Rulebook for Government Contracts
OMB – The Office of Management and Budget
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What is a Service Provider at Columbia?“Professional Services to accomplish the objectives of the
University when such Services are specialized, highly technical, and cannot be economically or satisfactorily performed by University employees as part of their normal duties.”
A Temporary or Casual Employee is NOT a Service Provider Hired for a special project or as a short-term replacement Paid for the exact hours worked and processed through the timesheet submission Rates of pay and job duties are established by each department – there are no fringe benefits Usually limited to four consecutive months
Current Service Provider Statistics:
~1,000 Agreements reviewed each year for services ranging from Web Designer to Business Consultant to Architect
Value of Service Agreements ranges from couple hundred dollars to the millions of dollars
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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What is a Service Provider?
“Service Provider”
Architects
Engineers Strategic ConsultantsBusiness
Consultants
Web Designers
Accountants Engineers
PR & Marketing
Auditors
Graphic Designers
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Service Agreements Process
Sourcing Your Needs
Sourcing Your Needs
Finalizing an Agreement
Finalizing an Agreement
Defining Your Needs
Defining Your Needs Purchase OrderPurchase Order
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Developing Statement of Work, Time Lines, Quality & Service requirements, etc.
Contact the Purchasing Office for Advice and Review
University Wide List (UwPA)
Identifying Vendors
Obtaining Bids
Confirming Order
Validating Vendor
Negotiating Terms and Conditions
Getting Necessary Signatures
Ensuring Insurance Requirements are Met
Resolving Intellectual Property Issues
Creating a Requisition
Obtaining approvals such as Prior approvals, DAF and Sole/Single Source Approval
Reviewing with Purchasing including Compliance and Exceptions
Option ReviewOption Review
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Purchasing Bid and Justification Policies
$1 - $24,999(non-UwPA)
• Requires one of the following:• Written Bid(s)• Proposal(s)• Quote(s)
• Three Written Bids, Quotes or Proposals
• Single/Sole Source form must be approved by Senior Level Officer in the department prior to submission to Purchasing at this dollar threshold.
• Make sure your justification clearly defines WHY you chose to Sole/Single source and provide a clear cost reasonableness.
$0 and higher UwPA
(University wide Purchase Agreement)
$25,000 or Higher(non-UwPA)
• Requires:• Written quote or
proposal and• Executed Scope of
Work
Note: UwPA: University Wide Purchase Agreement
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Why are Agreements Important to Columbia University?
Indemnification
Ensures we get what we are paying for and sets expectations
Limitation of Liability
Defines exclusive right to results and the by products of an engagement
Use of Columbia Confidential Information
Protects the Reputation of Columbia University
To secure against loss or damage and provide compensation
Protects CU and Supplier
Reduces Responsibility to determine accountability of the Services performed
Protects CU and Supplier
Protects all information for University and Supplier
Protects the University
Terms/Conditions
Acceptance of Deliverables/Work
Product
Ownership of Work Product
Use of Columbia University Name
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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A Purchase Order or Agreement for my Service?
Go to the Purchasing Website to review Service Provider Grid
• Binding Contract between the University and the Supplier
• Requires SOW
• Required upon request Certificate of Insurance
• Binding Contract between the University and the Supplier
• Requires SOW• Agreement requires submission
Certificate of Insurance
Purchase Order Only
Agreement
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Why a PO versus PO + Service Agreement?
Risks varies from a Service Agreement because of the type of services being rendered (SA)
Service Agreements have flexibility to negotiate terms/conditions (SA)
Insurance Requirements (PO, SA)
Validate authorization, charges the appropriate accounts and gives the approval for the purchase (PO, SA)
It is the ONLY mechanism to encumber the funds (PO)
It helps keep track of these type of agreement relationships (PO)
It is the best way to administer centrally on a systemic basis (PO)
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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The Process to Submit an Order for a Service Provider
All orders (Purchase Requisitions) are processed through the Financial Front End (FFE) system and require a DAF to Provide Approval for the Order
Once you submit your transaction, a Central Purchase Order Requisition will be provided to you electronically.
Refer to the Requisition Checklist for ALL the Supporting Documentation Needed for a NEW Requisition
– Pink: Existing Suppliers in Purchasing System even though worked with supplier previously.
– + Blue: Depending on the $ Threshold
– + Green: Access Patient Health Information
Once a PO is generated, you will be able to pay the Service Provider
Accuracy is Key, so Make Sure ALL Documents are Submitted to Purchasing for Timely Turn Around for a PO
Accuracy is Key, so Make Sure ALL Documents are Submitted to Purchasing for Timely Turn Around for a PO
Approved Requisition – DAF Authorization
Valid Certificate of Insurance (COI) for Service Agreements Only
Signed Agreement by Supplier does not apply to PO only Commodities
Scope (Statement) of Work (SOW)
RFP Summary Sheet
Sole/Single Source Justification (Greater than $25K)
Independent Contractor Verification Worksheet (does not apply to LLC or Incorporated Suppliers) aka Consultant Worksheet
Resume/Company Brochure
Vendor Questionnaire (refer them to Purchasing Website - “For Vendors”
If Applicable, Business Associates Addendum signed by CU Medical Center Compliance Officer
Requisition Checklist
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Document What is Included What to do
Scope of Work (SOW)
Clearly outline what you are buying, when, how and where prior to the start of service delivery ~ key to a successful engagement with your supplier
Scope of Services RequestedDetailed Description of Services ObjectiveIf applicable, key Deliverables (Phases)Resources to complete the ScopeWhat is the final product/service?Payment TermsSignatures
Go to the Purchasing website for access to the standard SOW template. This must be used for Service Providers that are only required to use a Purchase Order and Service Agreement.
Vendor Questionnaire
Provides data regarding the vendor that has been input and verified by Purchasing.
This on-line form is to be completed by all vendors that have not been used previously through the Purchasing system or are making updates to their information.
Provide your vendor with the site address or contact Purchasing so that we are able to contact the vendor for updates.http://procurement.columbia.edu/purchasing/qualification/index.html
Client List
Provides a list of the vendors current and past clients.
Customer listing provided by vendor. This enables us to verify that Columbia is not the only customer for a vendor. This enables us to ensure that the vendor meets the IRS definition of independent contractor.
Contact Purchasing for assistance.
Resume
Provides extensive experience in their field
Work Experience, Dates, Clients Contact Purchasing for assistance.
Brochure
Provides information regarding the services available to any customer. Available via print or website
Service offeringLocationsKey PrincipalsCustomer List
Contact your vendor for access to their promotional brochure or web site.
Forms/ Supporting Documents
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Forms: What is an Independent Contractor (aka Consultant Worksheet) – Based on IRS Standards?
“A business firm or an individual that contracts with the University to provide services for which the University controls or directs at most the result of the service, not the means and methods of accomplishing the result.”
Independent Contractor Certification
– According the IRS, should the Service Provider be treated as an employee or an Independent Contractor? (Payroll Tax Withholding)
– New York State withholds Workers Compensation and Unemployment Tax Withholding
Before the performance of services commence, departments contracting for services must assess the relationship with the individual providing services to ensure that individuals hired or contracted to perform services are properly classified as an employee or an independent contractor.
The three main categories for determining whether a relationship should be categorized as an employee or independent contractor are:
1. Behavior Control
2. Financial Control
3. The Individual’s Relationship with the University
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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IRS Litmus Test for Independent Contractor vs. Employee
Behavioral ControlBehavioral controls are evidenced by facts that determine whether the employer has a right to direct and control how the individual performs the tasks for which the individual is hired, including the type of instructions the employer gives the individual and how the individual obtains training for providing such services.
Financial Control Type of RelationshipFinancial controls are evidenced by facts that determine whether the employer has a right to direct or control the financial/business aspects of the individual's business activities, including (1) the extent to which the individual is reimbursed for business expenses, (2) the extent of the individual's investment in the business and whether a profit or loss is realized, (3) the extent to which the individual offers similar services to the relevant market, and (4) how the employer pays the individual, such as hourly, salary, or a flat fee.
The relationship between the individual performing services and the employer is evidenced by examining how the employer and the individual perceive their relationship, including (1) whether a written contract exists explaining the employer's and individual's intent, (2) the provision of, or lack of employee benefits, (3) the permanency of the relationship, (4) the right to terminate the relationship, and (5) the extent to which services are performed that are a part of the employer's regular business activities..
- An employee must comply with instructions about when, where, and how to work. Even if no instructions are given, the CONTROL factor is present if the employer has the right to give instructions.
- An employee can quit his/her job at any time without incurring liability. An Independent Contractor usually agrees to complete a specific job and is responsible for its satisfactory completion, or is legally obligated to make good for failure to complete it.
- An employee must comply with instructions about when, where, and how to work. Even if no instructions are given, the CONTROL factor is present if the employer has the right to give instructions.
- An employee can quit his/her job at any time without incurring liability. An Independent Contractor usually agrees to complete a specific job and is responsible for its satisfactory completion, or is legally obligated to make good for failure to complete it.
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Insurance Requirements: Commercial vs. Professional
Professional LiabilityProfessional LiabilityCommercial General LiabilityCommercial General Liability
• Designed to pay for economic damages caused by negligent acts, errors or omissions for which you’re legally liable.
• Protects you if, in your professional capacity, you do or fail to do something that causes financial loss to a third party.
• Covers professionals as Doctors, Lawyers, Executive Search, Accountants, Data Analysis, PR/Marketing, Web Designers
• Designed to pay for economic damages caused by negligent acts, errors or omissions for which you’re legally liable.
• Protects you if, in your professional capacity, you do or fail to do something that causes financial loss to a third party.
• Covers professionals as Doctors, Lawyers, Executive Search, Accountants, Data Analysis, PR/Marketing, Web Designers
• Provides coverage for your business if an individual or another business claims your company or your employee was negligent and responsible for bodily injuries, property damage, financial loss, personal injury or advertising inquiry
• Contractual Liability
•Breach (Confidentiality, SOW)
• Pays for Defense Costs
• Provides coverage for your business if an individual or another business claims your company or your employee was negligent and responsible for bodily injuries, property damage, financial loss, personal injury or advertising inquiry
• Contractual Liability
•Breach (Confidentiality, SOW)
• Pays for Defense Costs
Examples: A visitor could slip, a competitor could sue for false advertising, a client could sue for damage to their property value while in your care, a former client could sue for libel or slander
Examples: A visitor could slip, a competitor could sue for false advertising, a client could sue for damage to their property value while in your care, a former client could sue for libel or slander
Examples: Failure to perform services as requested or design, misrepresentation, failure to make recommendations, breach of client confidentiality, unintentional dissemination of false or misleading info.
Examples: Failure to perform services as requested or design, misrepresentation, failure to make recommendations, breach of client confidentiality, unintentional dissemination of false or misleading info.
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Insurance Requirements: Umbrella Policy
“Umbrella Insurance”
Automobile
Commercial General Liability
Is an option that can be utilized by Service Providers in the event their primary Commercial General Liability and Automobile are not sufficient to meet University requirements.
An example – if the Service Provider has $500K in CGL and AL and the CU requires $1MM, Service Provider can purchase an additional $500K Umbrella Policy that would cover both.
The Purpose of Insurance is to Mitigate and Manage Risk to the University which Will Not be Waived.
The Purpose of Insurance is to Mitigate and Manage Risk to the University which Will Not be Waived.
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Sample ACORD Certificate of Insurance (COI)
A Certificate of Insurance is an articulation of a firms coverage.
Purchasing will need an updated COI for each Requisition even though the supplier is performing multiple projects for the University
The COI is renewed on an annual basis
Per Service Provider Agreement, Section Titled “Insurance, 1(a), “Products and completed operations insurance shall be maintained for 3 years following termination of this Agreement.”
The last two sections must read…
PO Suppliers will not be Required to Provide a COI however, this will not Release them of the Obligation to carry the Appropriate Coverage
PO Suppliers will not be Required to Provide a COI however, this will not Release them of the Obligation to carry the Appropriate Coverage
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Process Flow – Purchase Order and Standard
Users Defines Need
User Creates Scope of
Work
Identify Suppliers
Procurement Website Request Supporting Doc.
Initiate Req. in FFE
Required Departmental Approval and Release Req.
Use PO Agreement
Submit Support
Docs
Procurement Reviews
Procurement Requests Add’l Info.
Final Review by
ProcurementPO Issued
Collaborative
Users Defines Need
User Creates Scope of
Work
Identify Suppliers
Procurement Website Request Supporting Doc.
Initiate Req. in FFE
Required Departmental Approval and Release Req.
Use Standard
Agreement
Submit Support
Docs
Procurement Reviews
Procurement Requests Add’l Info.
Final Review by
ProcurementPO Issued
Collaborative
Please refer to Service Provider Grid for details needed for PO.
Please refer to Service Provider Grid for details needed for Standard Agreement.
PO
Standard
A clearly defined Statement (Scope) of Work is needed for both.A clearly defined Statement (Scope) of Work is needed for both.
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Process Flow – Custom
Users Defines Need
User Creates Scope of
Work
Identify Suppliers
Procurement Website Request Supporting Doc.
Initiate Req. in FFE
Required Departmental Approval and Release Req.
Supplier Agrees w/Agreement
and SOW Updates
Submit Support
Docs
Procurement Reviews
Procurement Requests Add’l Info.
Final Review by
Procurement
PO IssuedUse Custom Agreement
Obtain Supplier Position
Feedback to cust. and/or
supplier
OGC and Risk
Timely process
Collaborative
Custom
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
A clearly defined Statement (Scope) of Work is needed for both.A clearly defined Statement (Scope) of Work is needed for both.
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Change Order 1Change Order 1
What is a Change Order?
Change OrdersChange OrdersChange Order 2Change Order 2
Change Order 3Change Order 3
Extension to the Period of Performance
1. Agreements will not be extended beyond 3 years regardless if services remain the same.
2. Make Sure you provide detailed supporting documentation
3. Ensure Certificate of Insurance is up-to-date
Increase in Dollar Value, same Scope
Extension to Period and Increase
Change Order 4Change Order 4
Change in Language of the Executed Agreement
Four Types of Change Orders
NOT Change OrderNOT Change Order
Changes in SOW beyond Original Scope
Example:• Valid CO: Executive Search Firm Change
Order where the Salary is Higher than Expected or the Search takes longer.
• Invalid CO: If it is a New search, a New Requisition will need to be processed with New Support Documentation.
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Process Flow: Change Order and Financial
Change Order Request
File Review Process Begins
Justification Email to Procurement to
Open
Procurement Requests Add’l Info.
Procurement Reviews
Submit Support Docs
Generates PR Faxsheet
Require Departmental Approval and Release Req.
Fin System Request
Is PO Open?
No
Yes
CO Approved
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
Financial Change Order
File Review Process Begins
Justification Email to Procurement to
Open
Process Change Order
Reviewed by Controller’s
Office
Info Submitted to Controller’s
Office
Require Departmental Approval and Release Req.
Fin System Request
Is PO Open?
No
Yes
Updates Completed
Financial
CO
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University-wide Purchasing Agreements (UwPA)/Master Agreements
What are UwPAs?
– Negotiated or bid contracts with select vendors
– Best value
– No need for additional bids
– For a complete listing of all UwPAs, visit:
http://www.columbia.edu/purchasing/purch/pv_list.html
What are Master Agreements?
– These are agreements where the contract terms & conditions have been negotiated and on file with Purchasing
– This does not preclude the competitive bidding process and is required for these agreements, but if awarded only a standard University Scope of Work document is required as supporting documentation to the request.
Always BEST to Refer to the UwPAs when Possible for Savings!Always BEST to Refer to the UwPAs when Possible for Savings!
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Changes For 2009 Service Providers Transaction Process
GreaterCollaboration
ImprovedCommunications
RefinedProcesses
• Purchasing will work with Schools and Departments to ensure the proper documentations are completed to ensure a timely PO issued for purchases
• Purchasing will be offering training to individuals to ensure support documents are precise and to expectation to avoid any bottlenecks in the process
• Require Requisitions to be submitted PRIOR to work starting
• PO specific Service Providers
• Continue to Evaluate Alternative Processes
Go to the Service Provider Website which Provides Necessary Documents and Insight
Go to the Service Provider Website which Provides Necessary Documents and Insight
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Purchasing Will Support You With A Range Of Project Management Activities
From the Purchasing Office Service Agreement Team, you can expect:
Weekly Requisition Status
Check-Ins with the Transactions
Update WebPur with Notes
Update on Open Questions
Management Plan of Overall Process for Sourcing a Need
Support for Onboarding and Training
Ad-Hoc Transaction Support
We’re All In This Together!We’re All In This Together!
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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How do I Submit Documentation to Purchasing?Through one of 3 methods:
BEST: Email documents to Purchasing using the Fax Server
– Email to [email protected]
– Indicate ONLY the Purchase Requisition Number (RAXXXX) in the Subject Line of the email (Add sample email)
– Attach all supporting documents
GOOD: Fax documents to Purchasing Using the Fax Server.
– Fax number: 212-854-2699
– Fax coversheet:http://www.columbia.edu/purchasing/forms/pdf/faxcoverletter.pdf
LEAST: Inter-campus Mail or Dropping it off at the Purchasing Office
Please Make Sure to Include Requisition Number on Fax Sheet and Make CopiesPlease Make Sure to Include Requisition Number on Fax Sheet and Make Copies
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Update Your Contact Lists for Service Agreements!
Name Email Phone Number
Carlos Arias [email protected] 212.851.7346
Fatima Suarez [email protected] 212.854.7551
Joe O’Brien [email protected] 212.854.3664
Service
Provider
Team
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html
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Need Information?
Available Resources to Assist You
Purchasing Website: http://www.columbia.edu/purchasing
Complete Listing of UwPAs
News Updates
Library of Standard University Forms
Link to Accounts Payable Procedures
Link to WebPur
Link to Risk Management Website
Purchasing Policies and Guidelines
Note: http://procurement.columbia.edu/purchasing/hire_consultant_a.html