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ABC’s of Service Contracting

ABC’s of Service Contracting. Presented by Clarence Wilson, CPPO, CPPB, VCO and Maureen Daniels, CPPO, CPPB, VCO. OBJECTIVE. Define a service Provide examples Look at fundamental differences Discuss the unique characteristics Explore the challenges

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ABC’s of Service Contracting

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  1. ABC’s of Service Contracting Presented by Clarence Wilson, CPPO, CPPB, VCO and Maureen Daniels, CPPO, CPPB, VCO

  2. OBJECTIVE • Define a service • Provide examples • Look at fundamental differences • Discuss the unique characteristics • Explore the challenges • Provide contract management tips

  3. Definition “Services” means any work performed by an independent contractor wherein the service rendered does not consist primarily of acquisition of equipment or materials, or the rental of equipment, materials and supplies

  4. Examples Services are intangible products such as accounting, banking, cleaning, consultancy, education, insurance, medical treatment, transportation or security.

  5. Fundamental Differences Services Goods Competitive Sealed Bidding (IFB) Preferred method Negotiate only if special term & condition is included Award based on price Less time consuming • Competitive Negotiation (RFP) • Justification required • Negotiations required • Award based on criteria • More time consuming

  6. Criteria for Services Built from what is needed and special considerations Must be known in advance Can not be changed Avoid vagueness (Such as “any other criteria the state may decide to use”) Point values for criteria must be assigned

  7. Security Services What method of procurement? What would the award be based on? Who would be involved in the award process? What is the estimated procurement cycle?

  8. Unique Characteristics Flexibility in describing what's needed More subjective decision criteria Relies on the expertise of the service provider Offers opportunity to change the content of what is being offered Usually requires extensive contract administration More…..

  9. Security Services • What’s needed? • 24 hours/7 days • After hours only • Perimeter • Roving • Interior • Armed

  10. Security Services • Special Considerations • Licensing • Bonding • Insurance • Quality Assurance Plan • Legal • Training • Qualification of Personnel

  11. Challenges Requires time to plan, organize and strategize Managing a team Knowing what your offerors really want and need Developing negotiation skills

  12. Administration Tips Emphasize the need to commit personnel to closely monitor contractor activity- assign a Contract Administrator Conduct post-award mobilization meeting Regularly schedule performance reviews Document performance against contract metrics

  13. Administration Tips Carefully control contract changes during contract period Consider seeking legal advice/assistance early in the process whenever complex default possibilities could result Create and maintain master contract files

  14. THANK-YOU and remember Services/RFP’s are from Venus

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