Office of the City Administrator

Contracts and Compliance

A GENERAL OVERVIEW

CONTRACTS
Professional Services
Contracting Process

COMPLIANCE

Social Justice/
Contract Equity

Overview
2

This training course is designed to guide and assist

Supervisors and Managers when non-construction

and non-commodity services are needed and you
must purchase on behalf of the city.
Every valid contract gives rise to legal rights and
obligations, it is important to understand how
contracts are (and are not) formed and enforced.

LEARNING OBJECTIVES
3

Getting started
The overall contracting process and your internal

contracting process team

Request for Proposal (RFP) and Request for
Qualifications (RFQ).
The informal competitive process
City Council Policies and associated contract
schedules

What to do when you need to buy

professional/non-professional services

Identify what you need, funding and most appropriate competitive process. You
MUST conduct either a competitive process or seek councils authority to waive
the competitive process. FIRST DECIDE:
What exactly do I need to purchase ?

(1) Construction Services ? (any change to new or existing infrastructures)

Seek assistance from the Public Works Agency staff.
(2) Commodities, suppliers, materials, equipment and associated services ?
Seek the assistance of Buyers in Purchasing Services. Jimmie Jackson
OR

I need to purchase Professional/Non-professional Services

i.e. Consulting, Counseling, Training, Research and Development,

Testing, Evaluations, Goat Grazing, Assessment Centers. Seek the
assistance from your contracting process support team.

CONTRACTING PROCESS
TIMELINE/BASELINE ESTIMATES

Phase
I

COMPETITIVE PROCESS OR
WAIVING THE COMPETITIVE
PROCESS BY (COUNCILS AUTHORITY)

Phase
II

EVALUATIONS AND SELECTION

Phase
III

CONTRACT EXECUTION

The Contracting Process requires collaboration with key (internal

and external) subject matter experts who make up your
contracting process support team
Contracts &
Compliance and
Risk Management

Comptroller,
Accounts Payable,
Purchasing
Services

External
Consultants, Service
Providers, Grantees

PROJECT
MANAGER
You are not alone !

Internal
Customers/ City
Departments

City Council,
and City Clerk

Legal Guidance and

Support

Timeline: PROFESSIONAL SERVICES CONTRACTS

Estimated time-lines. These are subject to change depending upon complexity.

Prepare
RFP
2-weeks

Negotiations
1-3 Weeks

Advertise/
Pre-Proposal
Meeting
1-week

Council
Authority
4-6 Weeks

Receive
Proposals
Determine responsive
and responsible
2-weeks

Contract
Execution
2-3 Weeks

Evaluation
/Interviews
1-week

Managing
Deliverables
Life of Contract

Selection/
Notification
1-week

Evaluation
/Close out
1-week

CONTRACTING PROCESS- Phase I

8

Waive the
competitive
process

or

Also referred to as
sole source.
REQUIRES City
Councils
approval.

INFORMAL
COMPETITIVE
PROCESS

or

Sole Source = Only one entity must provide the

service. The competitive process must be waived by
council. Resolution must clearly reference a waiver.

A minimum of 3
solicitations
from L/SLBEs
(first) required.

RFP/RFQ
FORMAL
COMPETITIVE
PROCESS

If only one response is

received and it is responsive &
responsible, you may award.

Contract capped amount will equal at

least $25,000 including authorized
amendments.

At minimum, requires advertisement in

the citys paper of record and local papers
reflecting Oaklands diverse market.

Compliance and the contracting process move forward hand in

hand from the COMPETITIVE PROCESS TO FULL CONTRACT
EXECUTION

Preparation
Phase

-Service
Need
-Funding
-Market
Availability

-Define service need and identify funding. -Choose

appropriate method (formal/ informal and RFP/ RFQ)
Secure most recent boilerplates.
Is an Availability Analysis needed ? Contract
Compliance will conduct an Availability Analysis.
Work with most recent boilerplates only.

Competitive
Process

Waive
Competitive
Process/
sole source
Formal
Informal

Oakland City Council is the only authority for

waiving the competitive process.
The informal limit for services is $25,000
including amendments.

Contact Contracts and Compliance for most recent RFP/RFQ boilerplates. The assigned compliance
officer will attend pre-proposal meetings, provide lists of Oakland certified firms and place
advertisements in iSupplier, the Citys paper of record and papers representing Oaklands diversity.

Contracts and Compliance offers a continuum of services to you - the using

agency
10

Receipt of
Submittals,
Interview
and
Evaluations

Compliance
receives
submittals
Prepare
evaluation
form
Schedule
Interviews

Evaluation, Interviews and/or Selection of most

responsive and responsible. Negotiations may occur
before or after councils authority depending on contract
amount and complexity of service.
Contracts and Compliance retains one submittal copy and
conducts a compliance analysis. If all is in order, a memo
will be sent identifying earned preference points, will be
sent to the using agency within 3-5 working days.
Preference points must be applied at the final evaluation
stage so that local participation has n impact.

Council
Agenda
Report

$100,000 or
more or at
request

If contract value is $100,000 or more, prepare report to

council requesting authority to negotiate or award to
most responsive and responsible.

Respond to compliance questions from council and/or attend council meetings with project
manager if L/SLBE, LEP, LWO, Minimum Wage, EBO etc. issues are raised.

Nearing the end of the Process

11
Secure most recent contract boilerplate from Contracts and Compliance.
Package your contract documents to include contract schedules, insurance (Accord
Form) Contracts/ Agreement/Grants Tracking Form; City Administrators Contract
Authority check list and Schedule T.
Signatures: (1) Contractor/consultant signs off first; (2) legal signs off second; (3)
agency/ department head signs off third and (4) City Administrator signs off last.
Forward Schedule T and an original contract to City Clerk and Finance, 1 original to the
vendor, 1 copy of the contract to be held for the project file.
Issue Notice to Proceed or Notice of award. A simple memo or letter format will suffice.
Work begins.
Contracts and Compliance will monitor compliance with policies, arrange substitution
hearings , conduct investigations of non-compliance complaints and render findings.

PACKAGING YOUR CONTRACT

DOCUMENTS .Putting the pieces together !
SCHEDULES/FORMS
Combined
Contract
Schedules

Stand Alone
Contract
Schedules

Combined
Contract
Schedules for
AMENDMENTS
12

PACKAGING DOCUMENTS

- Agreements, Loans,

Grants, and Subsidized Projects (where applicable)

Stand Alone Schedules

Schedule A Scope of Work/Outline of Services to be Performed

Schedule B-2 Conditional Waiver to the Arizona Resolution
Schedule E Project Consultant Team Listing
Schedule M Part B Independent Contractor Questionnaire (Requesting
Department Only)
Schedule O Disclosure of Campaign Contributions Form
Schedule Q-2 Professional & Specialized Services Insurance
Schedule Z, Certification A & B Debarment and Suspension Form (For certain
grant funded services)
Contract /Grant / Agreement Tracking Form
City Administrators Contract Authority Checklist

13

PACKAGING YOUR CONTRACT DOCUMENTS

To include Agreements, Loans, Grants, and Subsidized Projects (where applicable)

Reduced by 75% : No More repetitive questions: Shorter: Reduced

Redundancy:

COMBINED SCHEDULES

Schedule C-1 Compliance with the Americans with Disabilities Act

Schedule B-1 Declaration of Compliance with the Arizona Resolution
Schedule D Ownership, Ethnicity and Gender Questionnaire
Schedule K Pending Dispute Disclosure Form
Schedule M Part A Independent Contractor Questionnaire
Schedule N- Declaration of Compliance with Living Wage Ordinance
Schedule N-1 Equal Benefits Declaration of Nondiscrimination
Schedule P Nuclear Weapons Proliferation Ordinance
Schedule U Compliance Commitment Agreement
Schedule V Affidavit of Non-Disciplinary or Investigatory Action

All schedules are available at

http://www2.oaklandnet.com/Government/o/CityAdministration/d/CP/s/FormsSchedules/index.htm

14

A Competitive Process allows you to

(in a transparent way) compare and select the most
RESPONSIVE & RESPONSIBLE service provider.
THE COMPETITIVE PROCESS IS EITHER INFORMAL OR FORMAL.

$24,999 = informal
Solicit at least 3 responses from local firms first.
Three solicitations are required BUT three responses are not. If one
response satisfies responsive and responsible minimum requirements , you
may award.
Keep records of this informal competitive process.

$25,000 + formal
You must advertise in Citys paper of record.
You must publish a formal RFP/RFP using most recent boilerplates

15

A Contract document is REQUIRED FOR service purchases at $500 or more.

Check with Contracts and Compliance for most recent boilerplates.
A valid contract document includes required schedules, evidence of current and
sufficient insurance coverage, business tax certificate and the following signatures: (1)
Vendor/Contractor/Consultant/Grantee; (2) City Attorney; (3) City Administrator
Agency Head/ Director/ CEO signature is an administrative requirement
indicating knowledge and support endorsing the action.
If contract is over $100,000 or otherwise directed, you must Obtain Councils authority .
See City Administrators Contracts Authority Check List as guide.
Negotiate terms and conditions of contract.
Manage deliverables including evaluating performance.
Anticipate potential problems and move to resolve issues quickly.
Close out the project and discuss contractor performance.
16

SOCIAL JUSTICE: Compliance Programs for

Professional Services
17

50% Local/Small Local Business Enterprise

Program
Bid Discounts and Preference Points
Equal Benefits
Living Wage
Minimum Wage
Nuclear Free Zone
Arizona Ordinance
Substitution Hearing

Living Wage
Applies to service contracts equal to or greater than $25,000.
Applies to city financial assistance recipients who receive $100,000 or greater.
Requires sick leave
Rates are updated annually.
For most recent rates, please see Living Wage Bulletin on the Contracts and

Compliance web site.

Minimum Wage
Effective March 2, 2015 the minimum wage in Oakland will be $12.25 per hour

and includes:
Paid Sick Leave accrue one hour of paid sick leave for every 30 hours worked
within a week.
Service Charges Hospitality employers (such as hotels, restaurants, and
banquet facilities) who collect service charges from customers must pay those
service charges to hospitality workers.

18

Equal Benefits
19

What does the law require?

Contractors on city contracts in the amount of $25,000 or

more or contractors receiving financial assistance in the
amount of $25,000 or more to provide employee benefits to
their employees with domestic partners equivalent to those
provided to their employees with spouses.
Subcontractors are not required to comply.
Each party to a joint venture must comply
Firms regardless of size must comply

Certification Program for PROFIT and

NOT-FOR PROFIT Local Oakland Businesses
20

LBE
SLBE
VSLBE
LPGBE

= Local Business Enterprise

= Small Local Business Enterprise
=Very Small Local Business Enterprise
=Locally Produced Goods Business Enterprise

Requirements:

Located within the geographic region of Oakland, Ca.

Fully operational (Substantial Presence) for at least twelve (12)
consecutive months.

Six months for VSLB)

A valid City of Oakland Business Tax Certificate

Average gross receipts fall within the City of Oakland business size
standards. Applies to LBE only.

Wrap Up
21

The Contracting Process

Continuum of Services
Contract Schedules
Compliance Programs
iSupplier

SUMMARY
22
DECIDE:

Estimate value or cost of service and secure funding

Do you need councils approval ?
Which City Agencies Support the needed service ?
Depending on the estimated cost use a Formal or Informal competitive
process.
Formal Process:

Development of Request for Proposal or Request for Qualifications document using

standard approved boilerplate.
Advertisement Period
Pre-Proposal Meeting
Receipt and Evaluation of Submittals
Determination of most responsive and responsible proposer
Report to Council (If council authority is required)
Contract Development and sign off
Deliverables
Payments through Finance/Purchasing Services
Close Out & Evaluation

Reducing Your Contracting Time- Can it really happen ?

YES !!!!
23

Helpful strategies for a formal competitive process:

Start with end date and work backwards with dedicated
timelines;
Keep in mind your advertising timeline;
Consider piggybacking on existing contracts with another
agency;
Amend existing contracts if work is similar;
Select the evaluation team before submittals are due;
If council authority is needed, prepare the basic boilerplate.

CONTRACT MANAGEMENT REQUIRES OVERSIGHT

The purpose of contract management is to ensure quality deliverables in a timely fashion.
24

.
Contract management requires a realistic degree of control over the
process and over the suppliers.
Contract managers, responsible for service contracts, should be especially
proactive and aggressive, paying special attention to the statement of work and
the selection of the contractor, especially where large sums of money are involved.
Contract Managers are decision makers with performance (deliverables) and
fiduciary responsibilities.
More complex contracts require extensive management, and
might include steps such as:
Problem-solving activity beyond the
routine
More direct control over deliverables
Compliance monitoring and investigations
of violations

More direct financial control

(5) Auditing
(6)Pro active problem solving

COMPLIANCE
25

Social Justice/
Contract Equity

City of Oaklands

SOCIAL JUSTICE POLICIES

Attached to the contracting of services

1.
2.
3.
4.
5.
6.

26

50% Local /Small Local Business Enterprise Program

50% Local Employment (for Oakland residents)
15% Oakland Apprenticeship (as part of the state apprenticeship
requirements
Disadvantaged Business Enterprise Program (DBE) federally funded projects
Oakland Army Base Jobs Policy, PLA and Community Benefits
PWA Pre-qualification Contractors Rotation Program

****************************************************
* Contractor Debarment
*Living Wage
*Prevailing Wage
*L/SLBE Certifications

*Equal Benefits
*Local Construction Employment Referral
*Prompt Payment

27
In order to provide greater economic opportunity for Oakland residents and
businesses, to stimulate economic growth and development, and to strengthen the Oakland
economy, the City of Oakland has developed and implemented various leading edge
policies designed to directly impact how public funds are spent.
These policies are aimed at using the power of the public purse to stimulate economic
development through the support and empowerment of the local community, especially
those aspects of it that have been placed at a disadvantage in the past.
The City has demonstrated leadership through various cutting edge policies and remains a
national leader in terms of harnessing local resources to achieve local benefits. The major
programs that were created to serve these respective groups are the Local and Small Local
Business Enterprise (L/SLBE) Program and the Local Employment Program (LEP).
Supporting and/or complementing these programs are policies such as living wage, local
construction employment referral program, prevailing wage, disadvantaged business
enterprises, certifications, apprenticeship, and equal benefits for domestic partners.

Do Social Justice Policies Apply to the Purchase of

Services ? YES !
28
50% Local & Small Local (For Profit and Not for

Profit) Business Enterprise Program (50%

L/SLBE)
L/SLBE Certification of For Profit & Non Profit
Businesses
Living Wage Ordinance
Equal Benefits
Arizona Ordinance

How do we(Contracts and Compliance) help with the

contracting process ?
29

Provides support services to city agencies by

assisting with:
Request For Proposals (RFP)
Request For Qualifications (RFQ)
Advertisements of opportunities
Receipt of proposals
Assist in Preparing new and amended contract documents
Secure proper signatures
Assist in collecting required contract documents

L/SLBE Program Goals

30

50% requirement for construction &

professional services projects

25% LBE 25% SLBE split

50% of the trucking dollars to certified local

truckers

For informal contracts - departments must

perform outreach to a minimum of three local

certified firms first before going outside the
Oakland market.

Winning Compliance with Local Oakland

Business Participation
31

The 50% L/SLBE Program allows for:

Preference points are awarded to local certified

businesses

Preference points increase as the level of

participation increases up to a maximum of
additional preference points.

Mentor Protg relationships between non-local

firms and local certified firms may earn
5 preference points

7.5

up to

Certification
32

Only certified Local/Small Local Businesses will be counted

towards the 50% participation requirement.

To become a certified firm a firm must:
Be an established business operating in the City of
Oaklands geographic region
Fully operational for 12 consecutive months
Possess a valid City of Oakland business tax certificate for
12 consecutive months
Have a fixed office that reflects a substantial presence in
Oakland
Must meet established business-size standards for
certification as a Small Local Business
Last three most recent business tax returns

Living Wage Ordinance

33

Thresholds:

Employers under contract for the furnishing of services

to or for the City in the amount of $25,000 or greater
(Service Contractor).
Certain recipients of the City financial assistance that
involve receipt of financial assistance equal to or greater
than $100,000 (CFAR).

Employers are required to pay a minimum compensation:

Current rate of $12.27 with health benefits and $14.10

per hour without health benefits. These rates adjust up
each hear.

Equal Benefits Ordinance and Definition of a

Domestic Partnership 34
Under service contracts valued at $25,000 or more,

service contractors must provide benefits of same or

equal value to registered domestic partners as is
offered to spouses of employees.

A relationship that has been registered with a state

or local governmental entity, such as the State of

Californias domestic partnership registry or
Oaklands domestic partnership registry.