INTRODUCTION · • DECA Procedures Manual Section 106.1 The A-E shall be licensed to practice in...

MAY 11, 2015

INTRODUCTION

Bill Slone, Professional Engineer

Division of Engineering and Contract AdministrationAssociate Director, Mechanical Engineering Branch

Per KRS45a.800, professional design services may only beprocured by the Finance and Administration Cabinet (FAC) orthe Transportation Cabinet (KTC).

•The Transportation Cabinet is restricted to roadway-related projects.•The Finance Cabinet procures building designservices for the Transportation Cabinet.

***Using Agencies are specifically prohibited from procuringsuch services except through DECA in the course of a CapitalConstruction Project.

Section 209.1.1 of the DECA Procedures Manual outlines theProcurement-Related Statutes, Regulations and Policies thatapply to Capital Construction Projects.

Procurement of Professional Services

There are specific Agencies that are authorized to handle theirown procurement of Professional Services as (exceptions toKRS 45a.800):

University of KentuckyUniversity of Louisville

Murray State UniversityWestern Kentucky UniversityNorthern Kentucky University

Kentucky Department of Education (K-12)Administrative Office of the Courts

**Foundations and other special groups****Special cases for Eastern Kentucky University**

Procurement of Professional Services

ORGANIZATIONAL CHART

Governor of the Commonwealth

Secretary of Finance and Administration (FAC)

Department for Facilities and Support Services (DFSS)

Office of Facility Development and EfficiencyDivision of Surplus Properties

Division of Real Properties

Division of Historic Properties

Office of Building and Mechanical Services

Division of Building Services

Division of Mechanical

Services

Division of Engineering and Contract Administration (DECA)

Division of Facility Efficiency

ESPC Project Branch

Facility Performance

Branch

Utilities Audit Branch

Administrative Services Branch

Specialized Contracting

Branch

Mechanical Engineering Branch

Kentucky Projects Branch

ORGANIZATIONAL CHART

Office of Facility Development and Efficiency (Paul Gannoe, Deputy Commissioner)

Division of Engineering and Contract Administration (DECA) (Jennifer Linton, Director)

Administrative Services Branch

Specialized Contracting Branch

Mechanical Engineering Branch

Kentucky Projects Branch

Mechanical, Electrical, and Plumbing Projects; Civil Engineering Projects; Pre-Purchase of Chillers; CEMS Engineering; TAB Services; Commissioning Services; Abandoned Mine Lands; Water Treatment ; Assist with Architectural Projects.

Architectural Projects; Civil Engineering Projects; Landscaping Projects; Interior Design Projects; Build-to-suit Projects; Design-Build Projects; Radio Towers; FILO Projects; Furniture Projects; Assist with MEP Projects.

Procurement of Professional Services (RFP – MA); Purchasing of Construction Services; Procurement of Commissioning Services; Procurement of Construction Management Services.

Contract and Change Order Processing; Auditing; Payment of Professional Services; Payment of Construction Services; Division Accounting.

Bill Slone, PE, Assoc. DirectorMarc Avery, PE. MechanicalDavid Boggess, MechanicalBrian Cottongim, ElectricalDavid Guffey, PE, ElectricalHossein Mehdipour, PE, CivilFrank Phillips, PE, CivilTony Yates, PE, Mechanical

Andy Casebier, RA, Assoc. DirectorKeith Bohart, RA, ArchitecturalDwayne Brown , RA, ArchitecturalPaul Cable, RA, ArchitecturalBernie Engelman, RA, ArchitecturalRon Harris, RA, ArchitecturalButch Hatcher, RA, ArchitecturalSkip Hayes, SpecialistCarl Kratzer, ConstructionCarroll McGill, RA, ArchitecturalJosh Morgan, PE, CivilFrieda Myers, RA, ArchitecturalJoe Sandman, RA, ArchitecturalSpencer Sullivan, RA, ArchitecturalRaymond Williams, ConstructionBruce Wilson, RA, Architectural

Margaret MacDonald (B Mgr)Kelly Hawkins, A/E ContractsKristi Sharp, PurchasingCarolyn Turner, PurchasingSusan Ward, Master Agreements/ Purchasing

Scott Boling (B Mgr)Curt Cunningham, Plan RoomNorma Fallis, Plan RoomKathryn Hulker, DocumentsTracey Norris, InvoicingNickie Tincher, MA InvoicingNatasha Weghorn, Invoicing

Maziar Torabi, PE (Hazardous Materials)

LINE-ITEM PROJECT:Project Funded by the State Legislature (exceeding $600,000.00)

The project need is identified by the Using Agency and included in the Capital Construction Budget Request. The Project is approved by the General Assembly as a line-item of the budget.

AGENCY INITIATED PROJECT: Project Approved by the Using Agency(not exceeding $600,000.00)

•The project is funded by the Using Agency with an approved source of funds (i.e. maintenance pool, agency funds, or federal funds, etc.)•The use of these funds are reported to the Capital Projects Bond and Oversight Committee through the FAC Secretary. •There is no requirement for the minimum useful life of the project.

BOND FUNDS PROJECT: Project Funded by Bonded Funded Maintenance Pools as authorized by HB 267 (These projects may or may not exceed $600,000.00)

•The project is funded by the Using Agency from an authorizedbond pool as established by the General Assembly. •The use of these funds are pre-approved by the Governor’s Office of Policy and Management and reported to the Capital Projects Bond and Oversight Committee through the FAC Secretary. •These projects are required to be permanent in nature with a useful life that approximates the bonds (20-year). •Typically, they may also have a 2-year limit on the expenditure of these funds.

Establishment of Capital Construction Projects

Andrew Casebier, Architect

Division of Engineering and Contract AdministrationAssociate Director, Kentucky Projects Branch

Request for Proposals (RFP)

• DECA issues RFP for A/E Services describing work to be completed and Design Team required.

• A/E firms respond to the RFP.

• Selection Committee Shortlists A/E firms for interviews.

• Selection Committee interviews shortlisted A/E Firms.

• A/E firm selected by Selection Committee.

• Design and CA fees negotiated.

• Single Contract issued to Design Team.

*** Variation on this process is a one-step process where there is no shortlist and no interviews performed by Selection Committee. Selection Committee selects A/E firm from all respondents.

Master Agreement (MA)

• A/E firms submit qualifications and other information annually. Selection Committee approves A/E firms for specific disciplines they are qualified to provide services under.

• DECA Associate Director receives project request from Agency and assigns project to Project Manager.

• DECA Project Manager shortlists 3-5 potential firms for each discipline from master list.

• DECA Project Manager selects firms to provide services for each discipline.

• DECA Associate Director and DECA Director approves selection of firm for each discipline.

• DECA Project Manager negotiates a NTE Fee for services needed.

• Master Agreement Delivery Order issued for specific project/ specific discipline.

Ways to Procure A/E Services

• AERIAL (1)• ARCHITECTURAL (02)• CIVIL ENGINEERING (03)• ENVIRONMENTAL (04)• LANDSCAPING (05)• MECHANICAL (06)• SITE/ BOUNDARY (07)• STRUCTURAL (08)• RADIO TOWER (09)• SUBSURFACE (10)• INTERIOR DESIGN (11)• ELECTRICAL (12)

Reason for selection of Firm(s) documented:

Availability to meet time Location/ Proximity Specific Expertise Prior Performance Incubating to Process New/ Seldom Used Firm Agency Request Familiarity to Facility Minority Business Other Specific Reason

Use of Master Agreements

•Maximum not-to-exceed fee per discipline limited to $75,000.00 ($150,000.00 annually). **July 2015

•Team assignments made by DECA per discipline. Responsibility for coordination of team assigned to “Lead Firm” (Depending on Project type)

Master Agreement Delivery Orders are established for a NOT-TO-EXCEED fee that is billed on an hourly basis.

•The fee for Master Agreement work IS NOT a lump sum fee based on a percentage of the Construction Costs.

•Do not provide Professional Services under a Master Agreement without the issuance of a Delivery Order.

•Do not provide Professional Services in excess of this NTE fee without written authorization from DECA.

•Maximum fees for a Delivery Order shall not exceed $75,000. per project or $150,000.00 per fiscal year per discipline.

•No sub-consultant work may be billed on Delivery Orders.

•Submit invoices for Delivery Order fees on a monthly basis.

•Final invoice for Delivery Order fees should be submitted no more than 60 calendar days past the completion of the project.

Professionals• DECA Procedures Manual Section 106.1 The A-E shall

be licensed to practice in Kentucky.• DECA Procedures Manual Section 106.2 Direction: The

A-E shall accept directions only from the DECA Project Manager. – Requests or desires of the Using Agency made directly to the A-E will

be immediately referred to the Project Manager. – Any changes to the project scope must be authorized by the Project

Manager.

• DECA Procedures Manual Section 106.3 The A-E (Architect and Engineer) shall assign a person in each discipline who has the responsibility of being present at all meetings and to supervise all significant elements of the work in progress. • The A-E shall notify the Project Manager of the names of these

individuals and the names of alternate persons assigned to each position. THESE SHALL BE CONSISTENT WITH THE RFP RESPONSE or THE MASTER AGREEMENT PROPOSAL FROM WHICH THE TEAM WAS SELECTED.

The Master Agreement Project Process

Step 1

Project Established / DECA PM Assigned / Funding

Step 2

Shortlist of Firms by Project Manager

Step 3

Review of Shortlisted Firms by Project Manager

Step 4

Project Manager Selection of Firm(s) for each

discipline

Step 5

Discussion of Project between firm and Project

Manager

Step 6

Submission of proposed NTE Fee

Step 7

Acceptance of NTE Fee by Project Manager

Step 8

Project Manager Routes Selection and Fee for

Approval

Step 9

Discussions of Selection and Fee by PM with Assoc. Director and

Director

Step 10

Issuance of a Delivery Order by DECA

Step 11

Initial Project Meeting (including Using Agency)

WORK ON PROJECT BEGINS

• MA Submittal Quality

• This SMPS Event

• Quarterly Newsletters

• Drop-in Visits (Limited)

• Appointment Visits

• Educational Opportunities

• Performance on Projects

• Introduction by Other Firms

• Using Agency Requests

PERFECT WAYS TO

NOTMARKET DECA:

Don’t assume that your firm is so well known that simply making the MA submittal insures work.

Don’t overdo the email (spam) marketing technique.

Don’t cold call Project Managers.

Don’t insist on being assigned work because you “need” work.

If assigned work, don’t blow it off and promise to do better next time.

Don’t perform work at the request of a Using Agency (gratis work).

Marketing DECA for Project Assignments

Establish Master

Agreement

• Summit required information to apply for Master Agreement.

• Information reviewed by Selection Committee.

• Selection Committee recommends authorization of firm to provide services (per discipline).

• Master Agreement Contract issued and executed.

Prepare for Master

Agreement Work

• Familiarize yourself with DECA Procedures Manual Requirements.

• Familiarize yourself with the Master Agreement Contract Requirements.

• Market firm to DECA / Using Agencies (specific expertise/ professionals/ prior performance).

Assignment of Delivery

Order

• DECA Project Manager selects firm(s) for specific project. Obtains approvals.

• Negotiate NTE Fee with Project Manager on a timely basis.

• Receive Delivery Order authorizing work and establishing NTE fee.

• Begin Work on specific project under Master Agreement Delivery Order.

Getting Started with Master Agreements

Jennifer Linton, Director

Division of Engineering and Contract AdministrationDirector, Division of Engineering and Contract Administration

Ways to make sure you don’t get paid for Master

Agreement Delivery Order Work on a timely basis.

• Don’t set up your VCC correctly with payment information along with mailing address. (When any company information changes, don’t update it with DECA).



Don’t Set up/ Update your

VCCCorrectly

Don’t send in your renewal on time. (This year they are due back to Susan Ward on June 1st ) .



Don’t set upyour VCCcorrectly

Start providing services prior to receiving a delivery order for the project work.

Don’t send in your Renewal

on time




Provide extra services under the direction of the Using Agency.


on time

Start providing services prior to delivery order




Provide services beyond your NTE fee without prior authorization from DECA.


on time


Provide extra services

without DECA direction




Invoice using any form other than the state invoice form.


on time




Provide services beyond your

NTE fee



Invoice for work you have not yet performed and provided deliverables for.

Invoice using incorrect form



on time





NTE fee



Indicate the wrong delivery order number/account information on each invoice. (Or don’t attach a copy of the delivery order with each invoice).

Invoice for work you have not

yet performed




on time





NTE fee



Use hourly rates other than the rates in your master agreement contract when invoicing. (These rates can be found in the contract your firm signed in 2014… If you need a copy of your contract please contact Susan.)

Use Wrong Account Number


yet performed




on time





NTE fee



Charge for mileage on your invoice. (*We no longer pay for mileage under the master agreement)

Use Incorrect Hourly Rates



yet performed




on time





NTE fee



Charge for unauthorized reimbursable expenses or fail to provide a backup receipt.

Charge for mileage on your

invoice




yet performed




on time





NTE fee



Invoice for work performed by persons not employed directly by your firm.

Charge for unauthorized reimbursable

expenses


invoice




yet performed




on time





NTE fee



Invoice work at rates other than the appropriate rate for that work.

Invoice for work by

non-employees


expenses


invoice




yet performed




on time





NTE fee



Wait to submit the Invoice more than 60 calendar days after the project is completed.

Invoice at Inappropriate

rates

Invoice for work by

non-employees


expenses


invoice




yet performed




on time





NTE fee



*** Note: if you fail to do the things indicated above, there is a significant chance that you will be paid quickly upon receipt of your invoice.

Wait to submit the Invoice

Invoice at Inappropriate

rates

Invoice for work by

non-employees


expenses


invoice




yet performed




on time





NTE fee

MAY 11, 2015

QUESTIONS / DISCUSSION

INTRODUCTION · • DECA Procedures Manual Section 106.1 The A-E shall be licensed to practice in...

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