How to Hire a Service Provider

1. How to Hire a Service Provider

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3. 3 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

4. 4 Why do we have Purchasing Policies, Practices and Processes?

5. 5 What is a Service Provider at Columbia?

6. 6 Sample Service Providers

7. 7 Service Agreements Process

8. 8 If a Vendor wants to make changes to a Contract… Department/School needs to contact Director for Service Agreements to request a Word Version of Service Agreement Department/School to provide Supplier Contact Information, Department/School Main Contact for the Engagement and a Scope of Work (To ensure correct Service Agreement is being used) Purchasing will send Word Version of Service Agreement to Supplier and cc Department/School contacts (Main Contact and the person processing the Requisition) Supplier to make edits for audit trail purposes to ensure understanding of changes for Purchasing Supplier will return to Purchasing directly for review Purchasing will communicate with Supplier for negotiations and provide a separate email to Department/School of status, as appropriate Once finalized, Purchasing will send final version to Department/School and Supplier Supplier will send signed copy to Department/School for submission for Requisition

9. 9 Purchasing Bid and Justification Policies

10. 10 Why are Agreements Important to Columbia University?

11. 11 A Purchase Order or Agreement for my Service?

12. 12 Why a PO terms and conditions only versus PO + Service Agreement (SA) terms and conditions? 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)

13. 13 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 will be provided to you electronically which will allow you to pay the supplier through AP/CAR. Refer to the Requisition Checklist for necessary Supporting Documentation Needed for YOUR Requisition Pink: Existing Suppliers in Purchasing System (CAPS) Note: Contact Purchasing if not sure if the Supplier has been set-up previously + Blue: Depending on the $ Threshold + Green: Access Patient Health Information

14. 14 Requisition Checklist

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16. 16 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.” 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 for an EMPLOYEE Independent Contractor Questionnaire Worksheet Certification 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: (1) Behavior Control (2) Financial Control (3) Individual’s Relationship with the University

17. 17 IRS Litmus Test for Independent Contractor vs. Employee

18. 18 Examples of an “Employee” vs. “Independent Contractor” 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‘S services are integrated into the business operations because the services are important to the success or continuation of the business. This shows that the EMPLOYEE is subject to direction and control. An EMPLOYEE works for an employer who hires, supervises, and pays assistants. An INDEPENDENT CONTRACTOR hires, supervises, and pays assistants under a contract that requires him/her to provide materials and labor, and to be responsible only for the result. An EMPLOYEE has a continuing relationship with an employer. A continuing relationship may exist where work is performed at frequently recurring, although irregular, intervals. An EMPLOYEE has set hours of work established by an employer. An INDEPENDENT CONTRACTOR is the master of his/her own time An INDEPENDENT CONTRACTOR is free to work when and for whom he/she chooses. An EMPLOYEE works at a location or on a route designated by an employer. Generally an INDEPENDENT CONTRACTOR would not be required to work at a location designated by the contractor, unless required by the nature of the work to be performed.

19. 19 Insurance Requirements: Commercial vs. Professional

20. 20 Insurance Requirements: Umbrella Policy

21. 21 Sample ACORD Certificate of Insurance (COI)

22. 22 Process Flow – Purchase Order and Standard

23. 23 Process Flow – Custom

24. 24 What is a Change Order?

25. 25 Process Flow: Change Order and Financial

26. 26 Changes For Service Providers Transaction Process

27. 27 Purchasing Will Support You With A Range Of Project Management Activities

28. 28 How do I Submit Documentation to Purchasing? Through one of 3 methods: BEST: Email documents to Purchasing using the Fax Server Email to purchsrv@columbia.edu 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

29. 29 Bottle Necks which delay the Process for a PO to be created – Purchasing’s Average is 12 Business Days Agreements signed by an unauthorized Columbia University (CU) EMPLOYEE: Only those designated by the University Trustees are permitted to Sign Agreements on behalf of Columbia Scope of Work not accurately completed or signed: The Department/School hiring the Service Provider must countersign. Purchasing does not sing SOW since we are not agreeing to deliverables Certificate of Insurance: It is important the COI is accurately completed (refer to slide 19) and the correct Insurance coverage are captured for the respective Commodity. Please double check the requirements on the website. Sole Source Justification: Please make sure it clearly justifies why this provider is the only one who can perform the services and the cost reasonableness since it was not competitively bid. Vendor Questionnaire not completed: All Vendors must complete, if the provider does not have an EIN, then Social Security Number should be used Correct version of the contract not being used: Please disregard files saved on your hard drive and use the ones on our website since they continuously are updated Business Associates Addendum: Make sure the supplier and the person on the BAA from CU perspective has signed it prior to submission Dollar Value on Requisition: Make sure the dollar value of the Requisition matches the SOW value Proper Use of Agreements versus a PO only: If you are not sure, please contact one of us on the Service Agreements team to assist

30. 30 Update Your Contact Lists for Service Agreements! Name Email Phone Number Joe O’Brien j.obrien@columbia.edu 212.854.3664 Fatima Suarez fs2257@columbia.edu 212.854.7551 Carlos Arias caa2130@columbia.edu 212.851.7346

31. 31 Additional Information You May Need from Purchasing

32. FFE REQUISITION PROCESS SCREEN SHOTS

33. 33 Financial Front End System (FFE) Requisition Process

34. 34 FFE…

35. 35 FFE – ALL Service Agreements have Supporting Documents