opm – agency overview personal service agreements purchase of service contracts

Office of Policy and Management

State of Connecticut

Presentation to the State Contracting Standards Board

January 18, 2006


OPM


OPM

OPM – Agency Overview Personal Service Agreements Purchase of Service Contracts Current POS Initiatives Questions

Agenda


OPMOPM – Agency Overview

Agency OverviewAgency Overview

Serves as a staff agency reporting directly to the Governor.Serves as a staff agency reporting directly to the Governor.

Provides the information and analysis required to formulate public policy. Provides the information and analysis required to formulate public policy.

Assists State agencies and municipalities in implementing policy decisions.Assists State agencies and municipalities in implementing policy decisions.


OPMOPM – Agency Overview

Office of FinanceOffice of Finance

Accountable for establishing and monitoring State agency financial policies Accountable for establishing and monitoring State agency financial policies in order to enhance existing management and systems.in order to enhance existing management and systems.

Executive Financial Officer reports to the Secretary. Executive Financial Officer reports to the Secretary.


OPMPersonal Service Agreements

DefinitionDefinition

One of the mechanisms used by State agencies to contract for services.One of the mechanisms used by State agencies to contract for services.

A written, legally binding agreement that specifies the services to be A written, legally binding agreement that specifies the services to be delivered by a contractor to a State agency for a fee.delivered by a contractor to a State agency for a fee.

The contractor may be a person, partnership, limited liability corporation, or The contractor may be a person, partnership, limited liability corporation, or corporation.corporation.

A PSA may range in duration from a few months to several years.A PSA may range in duration from a few months to several years.

A PSA may range in cost from a few hundred dollars to several million.A PSA may range in cost from a few hundred dollars to several million.



ExamplesExamples

Legal advice and assistance.Legal advice and assistance.

Consulting services.Consulting services.

Staff training and organizational development.Staff training and organizational development.

Program research, planning and evaluation.Program research, planning and evaluation.



StatutesStatutes

C.G.S. §§ 4-212 to 4-219, inclusive.C.G.S. §§ 4-212 to 4-219, inclusive.

OPM is required to establish standards [rules] for State agencies to follow OPM is required to establish standards [rules] for State agencies to follow when entering into a PSA.when entering into a PSA.

Standards include how to develop a Request For Proposal (RFP), advertise Standards include how to develop a Request For Proposal (RFP), advertise for contractors, evaluate submitted proposals, select a contractor, execute a for contractors, evaluate submitted proposals, select a contractor, execute a PSA, and monitor and evaluate the contractor’s performance.PSA, and monitor and evaluate the contractor’s performance.

Each state agency must establish written procedures for implementing the Each state agency must establish written procedures for implementing the standards established by OPM. standards established by OPM.

Written procedures must be submitted to OPM for approval. Written procedures must be submitted to OPM for approval.

Require agencies to request approval from OPM for certain types of PSAs, Require agencies to request approval from OPM for certain types of PSAs, to select contractors using a competitive negotiation (RFP) process for to select contractors using a competitive negotiation (RFP) process for certain types of PSAs, and to report to OPM on their PSA activity.certain types of PSAs, and to report to OPM on their PSA activity.


OPM

Recent ActivityRecent Activity

Revision of PSA Standards:

– Ensures the integrity, fairness, and legality of the PSA contracting Ensures the integrity, fairness, and legality of the PSA contracting process.process.

– Instructs agency employees to abide by the standards of conduct set Instructs agency employees to abide by the standards of conduct set forth in the State’s Code of Ethics and to avoid both actual conflicts forth in the State’s Code of Ethics and to avoid both actual conflicts of interest and any appearance of impropriety in their official conduct.of interest and any appearance of impropriety in their official conduct.

– Establishes requirements for the three principal phases of the PSA Establishes requirements for the three principal phases of the PSA process (preparation, request for proposals, contracting).process (preparation, request for proposals, contracting).

Personal Service Agreements



Cost Term

Requirements

$20,000 AND 1 year or less or less

Competitive (RFP) process is recommended, but not required,to select contractor.OPM approval is not requiredto enter into a PSA.

$20,000.01 – AND 1 year or less$50,000.00

Competitive (RFP) process is required to select contractor.OPM approval is not requiredto enter into a PSA.

$50,000.01 OR more than 1 year or more

Competitive (RFP) process is required to select contractor.OPM approval is requiredto enter into a PSA.

Process OverviewProcess Overview



Review agency policy decision to enter into a contract.Review agency policy decision to enter into a contract.

Agency may request a waiver from the required competitive (RFP) process Agency may request a waiver from the required competitive (RFP) process from OPM. from OPM.

A PSA having a cost of more than $3,000 within a one-year period must also A PSA having a cost of more than $3,000 within a one-year period must also be reviewed by the Attorney General’s office for legal sufficiency as to form. be reviewed by the Attorney General’s office for legal sufficiency as to form.

For a PSA having a cost of more than $3,000 and with an individual, an For a PSA having a cost of more than $3,000 and with an individual, an agency must request a waiver from the classified service from the agency must request a waiver from the classified service from the Department of Administrative Services.Department of Administrative Services.

Upon completion of the PSA, an agency must prepare and submit a written Upon completion of the PSA, an agency must prepare and submit a written evaluation of the contractor’s performance to the Office of Finance.evaluation of the contractor’s performance to the Office of Finance.




PSA DataPSA Data

Data Element SFY 2002 *SFY 2006

No. of agencies with PSAs 46 32

No. of PSAs 1,678 944

Dollar value of PSAs 437,279,233 1,360,314,835

* Includes current single and multi-year contracts entered in Core-CT.* Includes current single and multi-year contracts entered in Core-CT.


OPMPurchase of Service Contracts

DefinitionDefinition

An agreement between a State agency and an organization for the purchase An agreement between a State agency and an organization for the purchase of direct human services to clients.of direct human services to clients.

Not used for purchasing administrative or clerical services, material goods, Not used for purchasing administrative or clerical services, material goods, training and consulting services.training and consulting services.

Contract with proprietary organizations, non-profit organizations, and Contract with proprietary organizations, non-profit organizations, and government entities, but government entities, but not not individuals.individuals.

Currently over one thousand POS contracts.Currently over one thousand POS contracts.

Currently over 1 billion dollars in POS contracts.Currently over 1 billion dollars in POS contracts.



ExamplesExamples

Rehabilitative services.Rehabilitative services.

Nutrition programs.Nutrition programs.

Counseling services.Counseling services.

Chronic disease programs.Chronic disease programs.

Group homes for persons with disabilities.Group homes for persons with disabilities.

Protective services for children and elderly citizens.Protective services for children and elderly citizens.

Substance abuse treatment services.Substance abuse treatment services.



StatutesStatutes

C.G.S. 4-70b establishes uniform policies and procedures.C.G.S. 4-70b establishes uniform policies and procedures.

C.G.S. 4-230 to 4-236, inclusive, requires uniform audits for nonprofit C.G.S. 4-230 to 4-236, inclusive, requires uniform audits for nonprofit organizations.organizations.



HistoryHistory

Commission to Effect Government Reorganization in 1991, commonly Commission to Effect Government Reorganization in 1991, commonly referred to as the Hull-referred to as the Hull- Harper Commission, was authorized by Public Harper Commission, was authorized by Public Act 91-3.Act 91-3.

Commission’s goals were to improve the delivery of services, increase the Commission’s goals were to improve the delivery of services, increase the productivity of service providers and reduce administrative costs.productivity of service providers and reduce administrative costs.

Commission recommendations set in motion a long-term project overhauling Commission recommendations set in motion a long-term project overhauling the human service contracting system and assigning primary responsibility the human service contracting system and assigning primary responsibility to OPM.to OPM.

Initial activities focused on ways to make the system more responsive to the Initial activities focused on ways to make the system more responsive to the needs of private providers doing business with the state.needs of private providers doing business with the state.

In the past decade OPM has pursued multiple efforts to develop standards In the past decade OPM has pursued multiple efforts to develop standards for the long-term and evolving contractual relationship between state for the long-term and evolving contractual relationship between state agencies and private service providers.agencies and private service providers.




New Standard Contract Language:

– Uniform language based on common agency provisions and Uniform language based on common agency provisions and best practices to replace individual agency provisions.best practices to replace individual agency provisions.

Multi-year Contracting:

– Multi-year contracts for those services that remain constant.Multi-year contracts for those services that remain constant.

– Standard multi-year contract should be for three years.Standard multi-year contract should be for three years.




Consolidated Contracts:

– State agencies are consolidating contracts with a contractor for State agencies are consolidating contracts with a contractor for multiple program services within a single agency.multiple program services within a single agency.

– For example, when contractor provides services to three separate For example, when contractor provides services to three separate agency programs, service requirements for all three programs are agency programs, service requirements for all three programs are combined in a single contract.combined in a single contract.

– Agencies are also exploring the possibility of entering into multi-Agencies are also exploring the possibility of entering into multi-agency agreements with a single contractor for program services that agency agreements with a single contractor for program services that cross agency lines.cross agency lines.




Cost Accounting Standards:

– OPM is mandated to develop state-wide cost accounting standards OPM is mandated to develop state-wide cost accounting standards for the purchase of human services from private providers.for the purchase of human services from private providers.

– Based largely on the Federal Office of Management and Budget Based largely on the Federal Office of Management and Budget (OMB) Circular A-122, “Cost Principles for Non-profit Organizations”.(OMB) Circular A-122, “Cost Principles for Non-profit Organizations”.




POS contracting process varies from agency to agency.POS contracting process varies from agency to agency.

A POS having a cost of more than $3,000 within a one-year period must be A POS having a cost of more than $3,000 within a one-year period must be reviewed by the Attorney General’s office for legal sufficiency as to form. reviewed by the Attorney General’s office for legal sufficiency as to form.



POS DataPOS Data

Agency Number of Contracts

Total Dollar Amount

Number of Contracts

Total DollarAmount

DCF 675 306,206,472 186 450,634,569

DMHAS 200 185,751,170 200 208,525,816

DMR 263 353,610,473 193 925,076,141

DOC 24 18,722,388 33 36,944,318

DPH 126 22,687,827 164 96,612,726

DSS 1,166 423,872,236 233 183,373,714

Total 2,454 1,310,850,566 1,009 1,980,142,364

FY 2002 *FY 2006

* Includes current single and multi-year contracts entered in Core-CT.* Includes current single and multi-year contracts entered in Core-CT.


OPMCurrent POS Initiatives

POS Business Process ReviewPOS Business Process Review

Document the current “as is” process for the POS within selected State Document the current “as is” process for the POS within selected State agencies. agencies.

Project scope includes the six major human services agencies (i.e., DCF, Project scope includes the six major human services agencies (i.e., DCF, DMR, DOC, DPH, DSS, MHA) and the State Department of Education DMR, DOC, DPH, DSS, MHA) and the State Department of Education (SDE).(SDE).

Collected information includes the structural location and organization of Collected information includes the structural location and organization of each agency’s contracting function, an overview of each agency’s each agency’s contracting function, an overview of each agency’s contracting process, and summary data on the number and types of each contracting process, and summary data on the number and types of each agency’s POS contracts. agency’s POS contracts.



OPM Internal Business Process for POSOPM Internal Business Process for POS

Develop an internal OPM process for POS contracts that is similar to the Develop an internal OPM process for POS contracts that is similar to the current PSA process. current PSA process.

Introduce the process in 2006, but expect that it will take several contracting Introduce the process in 2006, but expect that it will take several contracting cycles before a complete, mature system is in place. cycles before a complete, mature system is in place.

OPM will have to approve an agency’s entering into most POS contracts. OPM will have to approve an agency’s entering into most POS contracts.



POS Data CollectionPOS Data Collection

A need for more detailed and current POS contract information. A need for more detailed and current POS contract information.

OPM is currently conducting a survey of the six POS agencies (i.e., DCF, OPM is currently conducting a survey of the six POS agencies (i.e., DCF, DMR, DOC, DPH, DSS, DMHAS), State Department of Education and DMR, DOC, DPH, DSS, DMHAS), State Department of Education and Board of Education and Services for the Blind. Board of Education and Services for the Blind.

Results will provide additional information on both contractors and contracts. Results will provide additional information on both contractors and contracts. For example, the type of contractor (non-profit, proprietary, or government For example, the type of contractor (non-profit, proprietary, or government entity) and the type of proposal (competitive or non-competitive). entity) and the type of proposal (competitive or non-competitive).


OPMQuestions

http://www.opm.state.ct.us/finance/psa/standards.htmwww.opm.state.ct.us/finance/psa/standards.htm

PSA WebsitePSA Website

POS WebsitePOS Website

http://www.opm.state.ct.us/pdpd1/pos/main.htmhttp://www.opm.state.ct.us/pdpd1/pos/main.htm

opm – agency overview personal service agreements purchase of service contracts

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