Internal Policy and Procedures

Contractual Services

POLICY:

When contracting for services over $25,000 the applicable labor union must be formally notified, and a comprehensive cost analysis and justification must be submitted to DOA for notification purposes. Agents must also consider any limitations on the performance of the work outside of the United States.

Exceptions: Academic Support Service Agreements do not require the notification of the labor union, cost analysis and justification to DOA. Services provided under the statutory conditions listed in Attachment A are not limited to performance within the United States.

DOA enterprise contracts for services may have contract specific procedures related to cost benefit analysis.

DEFINITIONS:
CHR: Classified Human Resources Department
ITA: Intent to Award
RFP: Request for Proposal
SBOP: State Bureau of Procurement, Wisconsin Department of Administration
PRO-x-x: State procurement manual references
CBA: Cost Benefit Analysis:

Documentation Flow-Chart:
The following document pathway descriptions clarify the attached flow chart. Please reference the flow chart while reviewing the descriptions below.

Path 1: SBOP RFP Notification.
The Agent reports all intended contractual service procurements in excess of $25,000 to the appropriate supervisor submitting the SBOP procurement plan (IPP29, PRO-A-4).

Path 2: Union Notification Process:
Union notification (when required) is performed through the University’s Classified Human Resources Department (CHR). There are two documents provided by the Agent: the justification and the notification letter. After union notification, the Agent can proceed with the solicitation process.

Justification of need. Based on campus customer needs, the Agent develops a justification of need document; it is reviewed by the Purchasing Director, and signed by the Assistant Vice Chancellor. PRO-I-4 section I, A through F, defines the necessary components of the justification document.

Notification letter to CHR. The Agent will prepare a notification letter for the documents being submitted to CHR. The letter must include a summary of the services being provided, the length of the contract, any proposed renewals, the anticipated dollar amount of the contract and any proposed renewals.

When required, CHR provides the Agent with a copy of their union notification letter for inclusion in the packet of information to be submitted to SBOP.

Documents are provided to State Bureau of Procurement (SBOP):
The SBOP notification process is performed through the Purchasing Services Department. In daily practice most of our procurements don’t involve a Request for Purchasing Approval (RPA) and therefore step #10 of the flow chart can be ignored and the two forms (DOA-3821a, and DOA-3821b described below) can be e-mailed to DOA at doacba@wisconsin.gov (xc UW System Purchasing Director Rich Lampe).

In cases where an RPA is required for the procurement, the following four documents should be sent in paper form along with the RPA. Once the RPA is approved agent should e-mail copies of the four documents to: doacba@wisconsin.gov (xc UW System Purchasing Director Rich Lampe).

Comprehensive cost analysis. The agent must work with the requesting department to develop a comprehensive cost analysis (DOA3821b) (instructions for completing DOA 3821b) and summary document (DOA3821a). To complete the analysis the Agent must acquire the appropriate payroll and overhead information for the type of proposed service (i.e. salary, fringe, overhead, direct and indirect costs), and using the attached spreadsheet as a starting point, prepare the cost analysis.
The cost analysis must be reviewed and approved by the Director of Purchasing Services.

Justification of need (A-F document). As outlined in the union notification process above, the Agent includes a copy of the signed justification that was sent to CHR.

Notification letter, CHR. CHR notification letter originally sent to CHR that has been returned with CHR disposition signature, or a copy of the union notification letter generated by CHR (if CHR determined it was needed).

Cover letter to SBOP (when RPA is required): The Agent must develop a cover letter for the four above referenced documents (DOA-3821a, DOA3821b, Justification A-F, and Notification Letter).

Variable: The Union Requests Further Discussion:
If the union requests further discussion or information about the procurement notify the Director of Purchasing and refer to PRO-I-9, section VII.

Completing the process:

Intent to award
Using the contract information copied to Agent by CHR for the original union notification document, Agent sends the final union notification of award letter using the CHR template, and copies CHR. This letter may be mailed, faxed or e-mailed. Union e-mail address, if available, will be on original union notification letter sent by CHR and copied to agent.

Award
Thirty (30) days after the initial union notification and 5 days after the intent to award notification to the union, the agent can award the contract.

Post Award:
For existing contracts, upon contract renewal agent must perform an analysis of the continued appropriateness of the contract and summarize the results using DOA form 3819. The form is emailed to DOA cba.

EXAMPLES:
Event Related Security Services
Moving Services Requiring Cranes and Rigging
Moving Services
Electrician Services
Laundry Services
Most Recent Example of CBA and Summary
Instructions for completing DOA-3821b

REFERENCES: