service provider training module

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

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



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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



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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



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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


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



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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



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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)



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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



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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


http://procurement.columbia.edu/purchasing/qualification/index.html

http://procurement.columbia.edu/purchasing/qualification/index.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



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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.



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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.



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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.



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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



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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


Work

Identify Suppliers




Use Standard

Agreement

Submit Support

Docs

Procurement Reviews


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.



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Process Flow – Custom

Users Defines Need


Work

Identify Suppliers




Supplier Agrees w/Agreement

and SOW Updates

Submit Support

Docs

Procurement Reviews


Final Review by

Procurement

PO IssuedUse Custom Agreement

Obtain Supplier Position

Feedback to cust. and/or

supplier

OGC and Risk

Timely process

Collaborative

Custom


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


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 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 Reviews

Submit Support Docs

Generates PR Faxsheet

Require Departmental Approval and Release Req.

Fin System Request

Is PO Open?

No

Yes

CO Approved


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!


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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


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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!


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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


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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


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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


service provider training module

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service providerhired

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university trustees

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