Document 6438851

Service Level Agreement
University Services–Purchasing with University Services customers
Service Level Agreement Overview
This is a Service Level Agreement (SLA) between University Services–Purchasing (USP) and the
following customers: Facilities Management (FM), Capital Planning and Project Management
(CPPM), and U of M-Morris Plant Services. USP is also has systemwide responsibility for capital
projects and facilities related purchases on all University campuses. The purpose of this
agreement is to identify the basic services provided by USP to the customers and describe the
processes in place to ensure integrity, economy, efficiency and accountability.
This SLA is in effect on July 1, 2011 and will remain in effect until a new agreement is finalized.
This agreement specifically addresses:
I.
Scope of services
II.
Roles and Responsibilities
III.
Service standards by process
IV.
Performance metrics
V.
Problem management
Appendices:
A – Purchasing Thresholds and Requirements
B – Definitions
I. Scope of Services
Service Availability: USP staff members are available from 7:30am to 4:00 pm Monday through
Friday. Contact USP by email at [email protected]. Emails are returned within 24 hours. Contact
information on the individual roles within USP is available at this link or at the USP website:
http://www.uservices.umn.edu/purchasing/docs/staff_director.pdf.
USP services cover purchases using the Unifier and Compass Systems for three purchasing
categories:
Goods and Standard Services Purchasing
Goods: supplies and parts related to maintenance, repair, operating, electrical,
plumbing, custodial, painting, etc.
Standard Services: services that are routinely provided to a large number of
customers, usually at published rates without significant customization, such as
building maintenance, window washing, pest control, etc.
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University Services – Purchasing
Service Level Agreement – July 2011
Construction Purchasing is the process of procurement related to constructing
something. Construction may occur in new building or renovation of existing buildings,
including but not limited to major remodeling, asbestos abatement, elevator
modernization, tuck pointing, roofs, etc.
Architect, Engineering and Construction related Consultants Purchasing is a
customized service consisting of specialized or creative expertise pertaining to design
and/or construction consulting. These services are based on personal skills or ideas of
an individual(s) that are provided for a fee, which may be determined individually with
each customer for each service contract.
USP provides services that can be grouped into five service areas:
Vendor Management defined as the processes of vendor authorization, vendor
registration (in USP Registered Vendor List), and Contractor Safety Information and
Safety violations record collection. Processes vary depending on forms and information
needed from vendors.
Order Processing begins with the review of an approved purchase request for a good
and/or a service and goes through approval of final invoice payment.
Request for Bid / Request for Proposal Processes are the procedures related to the
RFB/RFP, a document usually sent to multiple vendors, inviting them to make a
competitive offer to provide goods or services to the U.
Construction Contract Officer refers to the processes through which USP issues
construction contracts after the contract has been signed by all parties, and work
begins.
Communications and Document Management are services involved in communicating
and maintaining USP website, processes, documents, files, time tracking and training.
In general, the USP team reviews approved purchase requests to ensure the required
information is provided and that the proper processes are followed in selecting the vendor.
The services provided by the USP team vary depending on the area, category and value of the
purchase. (See Appendix A)
Services not covered by USP
•
•
Purchasing of goods or services using a departmental Purchasing Card (Pcard).
All other purchases not pertaining to construction and or maintenance of facilities are
covered by Central University Purchasing. A list of types of purchases and respective
contact information for assistance may be found here:
http://purchasing.umn.edu/docs/category2.doc
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University Services – Purchasing
Service Level Agreement – July 2011
II. Roles and Responsibilities
Integrity within the University and with the external vendor community is based on high ethical
standards. All departmental staff responsible for any portion of purchasing processes should be
familiar with the Code of Ethics (http://purchasing.umn.edu/docs/CodeOfEthics.pdf) and
understand their role in maintaining compliance with University policies and procedures.
USP role is to provide timely, consistent customer focused management oversight and service
to facilitate purchases made by University Services Customers. USP ensures all appropriate U of
M stakeholders are considered in purchasing practices. USP strives to ensure smooth and
consistent processes for purchase and delivery of goods and services as well as the invoice
payment process.
Responsibilities include:
• Provide timely information, communication and service
• Provide clear templates and forms
• Provide medium for obtaining data to set up vendors accurately in systems and help
give those vendors an opportunity to do work with the University
• Partner with customer to ensure all purchasing forms are complete and accurate
• Serve in advisory role throughout the RFB/RFP process
• Provide documentation to appropriate U of M stakeholders for contracts (OGC, etc)
and/or for audit purposes
• Provide instrument or means for providing vendor feedback from requestors
• Ensure compliance with appropriate federal, state, local or University laws,
regulations and/or policies
• Ensure all orders are placed in a timely manner
The Customer role is to understand and document the scope of work; recognize and follow
proper processes; and to partner with USP. Customer is also called “Requestor” throughout
this document.
Responsibilities include:
• Properly plan and schedule routine work
• Insure appropriate approvals are initiated
• Provide complete and accurate information on Purchasing Forms and Documents,
including required supporting documentation
• Verify vendors are in system; if not – provide complete vendor data for USP
• Use appropriate system to initiate purchase
• Develop complete and accurate scope of work
• If applicable, serve on evaluation committees
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University Services – Purchasing
Service Level Agreement – July 2011
III. Service Standards by Process:
The following tables outline the services provided by USP by function or process. Once the scope of
work is developed by the customer, the expected level of service is designed to aid in estimating
and planning.
Vendor Management
Function or
Process
Process vendor
authorization
forms
Process vendor
registration
applications:
-Construction
- A&E
Professionals
Service
Expected Service Level
(For use in planning)
Vendor forms posted on website for
completion and submission by
requestor/potential vendor
USP adds vendor or updates vendor profile in
appropriate systems
Receive Vendor Registration and Contractors
Safety Information - add or update into the
USP Registered Vendor List (internal
document)
Five days minimum
Communicate issues to
vendors in timely manner
Vendor becomes
registered within 4 weeks
of application receipt
Coordinate contractor safety evaluation
process
Order Processing
Function or
Process
Review approved
requests
Complete the
Purchase Order
Administer the
order
Service
Expected Service Level
(For use in planning)
Collect documentation; review for
completeness
Issue PO to vendor
Manage of delivery, receipt and invoice
payment
System Specific:
COMPASS: Run reports to ensure the vendor
has received the order; note any price and/or
delivery changes; follow-up on all orders that
are past expected delivery dates; and reconcile
any pricing variance on the invoices
Five (5) days minimum
Communicate issues to
requester in timely manner
Within 48 hours
Communicate issues to
vendors, requestors, stores
clerks and accounts
payable on a regular
(minimum weekly) basis
Unifier: Ensure the vendor has received the
order and work to provide prompt payment of
invoice when change orders may be necessary.
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University Services – Purchasing
Service Level Agreement – July 2011
Request for Bid
Function or
Process
Request for Bid
(RFB)
Service
Expected Service Level
(For use in planning)
Prepare
• Work closely with requestor in drafting
RFB to ensure it is written in a way to
achieve customer goals while protecting
the University
Varies depending on
complexity of RFB
Planning Estimate (USP time):
Simple – 2 days
Complex – 30 days
Communicate issues to
requestor in timely manner
Review requestor supplied list of vendors
• Supplement vendor list if possible
Advertise
• Enter RFB into the MBid system
• Email RFB to vendors identified by
requestor
Review
• Distribute MBid system bid tabulation to
requestor
• Work with requestor to review/score
vendor bids
• Validate vendor selection
Select
• Process a PO once final vendor selection
is complete (Issue the Notice to Proceed)
Enter into system within 3
days of receipt
Mbid system tabulation and
evaluation sheet is made
available to the team at close
of bid time frame shortly
after the bid is due
Validation occurs within 1 day
of vendor selection
Within 5 days of final vendor
selection
The typical Request for Bid process, from the time the RFB is prepared and advertised
to the selection of the vendor, takes about 3 – 4 weeks to complete.
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University Services – Purchasing
Service Level Agreement – July 2011
Request for Proposal
Function or
Process
Request for
Proposal (RFP)
Service
Expected Service Level
(For use in planning)
Prepare
• Work closely with requestor in drafting
RFP planning form to ensure it is
written to achieve customer goals and
comply with all University purchasing
policies
Varies depending on
complexity of RFP
Planning Estimate (USP time):
Simple – 2 days
Complex – 30 days and up
Communicate issues to
requestor in timely manner
Advertise
• Advertise on USP website
• Notify identified vendors of RFP via
email
• Serve as the single point of contact for
vendor questions to ensure all vendors
receive the same information; clarifies
requirements
Review
• Train requestor teams selected to
review proposals
• Distribute Bid Tabulation and
Evaluation sheets to team
• Work with customer team to
review/score vendor proposals
• Review documentation to recommend
a short list of vendors to bring in for
interviews/validation of proposals
Once RFP finalized upload to
website in 3-5 days
RFP is issued for 2-3 weeks
during which time vendor
questions are answered
Training conducted during
the 2-3 weeks the RFP is ‘on
the street’
Once all RFPs are received,
USP will evaluate RFPs and
provide the requestor with a
recommended short list
within one day if an interview
is necessary
Select
Respond within 3 days of
• Meet with requestor to develop
interviews, if applicable, with
interview questions, collaborate on
final recommendation
vendor interviews, if applicable
• Monitor interviews, if applicable
• Validate vendor selection
Publicize selection process on
• Provide final recommendations
USP website within 1 day of
• Notifies awarded vendor
decision
• Notifies non-award vendors, provides
information and education for future
opportunity
The typical Request for Proposal process, from the time the RFB is prepared and advertised
to the selection of the vendor, takes about 4 - 5 weeks to complete.
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University Services – Purchasing
Service Level Agreement – July 2011
Construction Contract Management
Function or
Process
Construction
Contract
Management
USP becomes
involved at the
very beginning
for this delivery
method:
• Lump Sum
USP becomes
involved after
“Guaranteed
Maximum Price”
contract amount
for these delivery
methods:
• Construction
Manager At
Risk(CMAR)
• Design
Build(DB)
Service
Expected Service Level
(For use in planning)
Collect / Validate Vendor Documentation in
accordance with U Wide Policy: Managing
University Records and Information
• For LUMP SUM contracts ONLY Prepare Construction Agreement and
collect signatures
•
Prepare, collect, review and approve
Payment and Performance Bonds (for
all projects greater than $75,000)
•
Prepare, collect, review and approve
Certificate of Insurances (for all
projects)
Varies depending on contract
Maintain complete file for
requestor
Communicate issues to
requestors in timely manner
Issue final Purchase Order to Vendor
• Upon receipt of completed and
approved Payment and Performance
Bonds, Certificate of Insurances and, for
lump sum contracts only, Construction
Agreement
Communicate issues to
requestor in timely manner
Collect certified payroll documents of
Prevailing Wage, when requested by Unions
Within 2 days of request
Upon receipt of complete and approved
changes
• If amended agreement exceeds 10
percent of original contract value,
collect additional Bonding
requirements
Process and communicate
changes within 3 days
Provide response and document for internal
and external auditors
Maintain complete file for
requestor
Within 30 days after issuance
of Notice to Proceed (Lump
Sum)/Bond and Insurance
collection letter (CMAR/DB)
Communicate issues to
requestor in timely manner
The typical Construction Contract Management process, from the time the vendor is notified to
the collection and approval of their documents, takes about 30 days to complete.
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University Services – Purchasing
Service Level Agreement – July 2011
Communications and Document Management
Function or
Process
Document and
Website
Management
Service
Maintain all RFP documents processed by USP
Maintain Bidding documents
Expected Service Level
Maintain complete file for
requestor
Communicate issues to
customer in timely manner
Maintain complete file for
requestor
Maintain Purchasing forms on USP website
Communicate issues to
customer in timely manner
Update forms to maintain
compliance with internal
and external requirements
Maintain Vendor Registration Forms
Communicate issues to
customer in timely manner
Update forms to maintain
compliance with internal
and external requirements
Maintain electronic files of project documents
pertaining to procurement
Communicate issues to
customer in timely manner
Update forms to maintain
compliance with internal
and external requirements
Website maintenance
Communicate issues to
customer in timely manner
Timely updates
Time Tracking
Enter/load all time spent on the procurement
process into Unifier.
Communicate changes to
customers
Accurate and prompt
processing of time tracking
Training
Staff training on evaluation process and on
application of this Service Level Agreement
Debrief Vendors on the RFP/RFB selection
process
Ongoing, as needed by
customer
Ongoing, as needed or as
requested by vendors
Vendor
Debriefings
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University Services – Purchasing
Service Level Agreement – July 2011
IV. Performance metrics
Reports will be created on the accomplishment of the Expected Service Levels for all processes
involved. These reports will be used internal to USP to inform on capacity and analyze business
needs.
USP will meet with the University Services customers (FM, CPPM and U of M-Morris Plant
Services) at least quarterly to obtain feedback on service quality and performance.
Annually a summary report of accomplishments to Expected Service Levels will be provided to
leadership in the requestor areas and to University Services Finance.
V. Problem management
Issues that arise which cannot be resolved by USP and/or the customers will be escalated to the
Director of Finance for the customer’s department.
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University Services – Purchasing
Service Level Agreement – July 2010
Appendix A: Purchasing Thresholds and Requirements
Total
Purchase
Goods and Standard Services
Value
$0Nothing Required
$1,999.99
Construction
Professional Services (Non A&E)
See U-wide Policy & Procedures
Architects, Engineers and Construction
related Consultants (A&E)
Nothing Required
Nothing Required
$2,000- A. Obtain a Price Quote, or
$2,999.99 B. Setup a Time Period (Annual) Blanket
Contract
$3,000$9,999.99
A. Obtain a Price Quote
A. Obtain a Price Quote
$10,000- A. Complete Price Comparison Form, or
$24,999.99 B. Utilize a Preapproved Source
A. Complete Price Comparison
Form, or
B. Utilize a Preapproved Source
A. Invoice Required
A. University Signed CPS Required
$25,000$49,999.99
A. University & Vendor Signed CPS
Required
$50,000- A. USP Issued Competitive RFP / RFB, or
$99,999.99 B. Utilize a Preapproved Source
A. Purchasing Issued Competitive
RFP / RFB
B. Utilize a Preapproved Source
$100,000$199,999.99
A. USP Issued Competitive RFP / RFB, or
B. Utilize a Preapproved Source
$200,000$249,999.99
A. USP Issued Competitive RFP / RFB, or
B. SDSB Issued RFP (State Funded
Projects), or
A. USP Issued Competitive RFP / C. Utilize a Preapproved Source
RFB, or
B. Utilize a Preapproved Source
$250,000
$∞
1.
Potential 2.
Pre-Approved 3.
Sources 4.
5.
6.
U-Wide Contracts (Limit: $250k)
1.
State Contracts (Limit: $250k)
2.
E & I Contracts (Limit: $250k)
University ISOs (Limit: None)
Special Payment List (Limit: None)
Exceptions to Regents Policy (Limit: None)
Consortium for Construction
(Limit: $250K)
Exceptions to Regents Policy
(Limit: None)
1.
Exceptions to Regents Policy (Limit:
None)
1.
Exceptions to Regents Policy
(Limit: None)
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Appendix B - Definitions
University Services – Purchasing
Service Level Agreement – July 2011
Bid Threshold: The University of Minnesota’s formal purchasing bid thresholds for
goods and standard services is $50,000; for Architect, Engineering and Construction
related Consultants services is $100,000; and for Construction Services is $250,000. The
formal bid threshold is the dollar level at which Central Purchasing Services is required
by policy to publicly solicit competitive bids or proposals or approve an exception, and
issue the purchase order.
Buyer: Role within USP responsible for, and authorized to, manage and/or oversee
procurement for the University. Buyers are involved in all stages of purchasing from
planning through placement of orders and approval of final payment, regardless of
system or value.
COMPASS: A CMMS product used by Facilities Management, specifically designed to
manage customer requests, maintenance activities, inventory, purchasing and time
records. It has been used by the University of Minnesota since 1999.
Construction Delivery Methods:
Design/Bid/Build – (DBB) is a delivery method in which design and construction
phases of a construction project are bid and performed by two independent
contractors under two distinct contracts. The design is typically complete before
a contractor is brought on to construct the project. This may also be referred to
as a Lump Sum bid.
Design/Proposal/Build – (DPB) is a delivery method in which design and
construction phases of a construction project have two distinct RFPs and
performed by two independent contractors under two distinct contracts. The
design is typically complete before a contractor is brought on to construct the
project. This may also be referred to as a Lump Sum proposal.
Design/Build – (D/B) is a delivery method in which a contractor partners with
design professionals to complete both design and construction for a fixed price,
based on a program description and performance specification.
Construction Manager at Risk – (CMAR) is a delivery method which entails a
commitment by the construction manager to deliver the project within a
Guaranteed Maximum Price (GMP). The construction manager acts as
consultant to the University in the development and design phases (often
referred to as "Preconstruction Services"), but as the equivalent of a general
contractor during the construction phase.
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Appendix B - Definitions
University Services – Purchasing
Service Level Agreement – July 2011
Guaranteed Maximum Price –(GMP) is a figure, based on competitive
subcontract bids, that can be provided by a construction manager or design
builder in which the firm guarantees that the cost of the work will not exceed a
specified amount for an agreed upon scope.
Evaluation Team: Group that evaluates the proposals on the basis of evaluation criteria
stated in the RFP. Team members, which may comprise people inside the University
and outside the University, are selected on the basis of their interest in and/or expertise
in the services.
Lump Sum: A contract under which a principal (customer or owner) agrees to pay a
contractor a specified amount for completing work without requiring a cost breakdown.
PIPS: Performance Information Procurement System (PIPS) is an information based
procurement system for selecting high-performing contractors and for minimizing the
owner/contracting organization's risk. PIPS is a method used in Best Value Procurement.
The definition of "Best Value" is predetermined in a proposal solicitation to include a
combination of quality, price, past performance and other elements necessary for a
project.
Procurement: The process of obtaining goods and services from preparation and
processing of a requisition through to receipt and approval of the invoice for payment. It
commonly involves:
o purchase planning
o standards determination
o specifications development
o supplier research and selection
o value analysis
o financing
o price negotiation
o making the purchase
o supply contract administration
o inventory control and stores
o disposals and other related functions
Requestor: Individual responsible for initiating the purchasing process. This includes
properly scoping work, working with vendors to identify needed goods and/or services,
working with USP in drafting RFB/RFP, and obtaining appropriate approvals and/or
documents. In FM, the requestor is typically a Team Manager/Supervisor, Planner, or
Trade/Mechanic. In CPPM, the requestor is typically a Project Manager.
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Appendix B - Definitions
University Services – Purchasing
Service Level Agreement – July 2011
Request For Bid: (RFB) is an invitation to vendors to submit a written offer to supply
goods and/or services. The RFB will require the vendor to define their specific financial
commitments that comprise the offer. The RFB evaluates price only.
Request For Proposal: (RFP) is an invitation to vendors to submit a written offer to
supply services. The RFP will require the vendor to define the specific financial and/or
service commitments that comprise the offer, such as schedule, vendor experience,
safety, etc.
Targeted Group Business: Small businesses, at least 51% owned, operated and
controlled on a daily basis by minorities, women, or persons with a substantial physical
disability as designated by the Minnesota Commissioner of Administration. Must meet
the definition of a TGB as defined in Minn. Stat. Sect. 137.35 and have its principle place
of business in Minnesota.
Unifier: A purpose-built platform that manages and organizes project management
information. The platform encourages disciplined processes and better performance
management as well as saves time and effort of project manager organization. Unifier
improves collaboration, minimizes claims, establishes benchmarks, and reduces change
orders.
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