wvoasis Procurement Part I State Purchasing Conference Camp Dawson October 4th and 5th, 2018

Transcription

1 wvoasis Procurement Part I State Purchasing Conference Camp Dawson October 4th and 5th, 2018

2 Objectives 1. To provide an overview of wvoasis procurement functionality 2. To explain the structure and role of commodity codes 3. To introduce the wvoasis Cycle Dashboard 4. To review commodity-based encumbrance and preencumbrance 5. To examine document and line references 6. To discuss the accounting adjustment procedure for centralized procurement documents 7. To review the process for modifying unit prices on contracts and purchase orders 2

3 Objective 1 To provide an overview of wvoasis procurement functionality 3

4 Procurement Functions Requisitions, Solicitations, Evaluations and Awards Master Agreements, E-catalogs Vendor Registration Vendor Self-Service Inventory Management Encumbrance Receiving 4

5 Procurement States Requisition Solicitation Solicitation Response Evaluation Award Post Award Request is created by a department to purchase commodities and services Agency requests bids or proposals from potential vendors Vendors respond to bids or proposals Vendor responses are evaluated and a vendor is selected The Contract or Purchase Order is awarded to a vendor Invoices, Receiving Documents and Change Orders processed against a Contract or Purchase Order 5

6 Agency vs Central To differentiate between centralized and decentralized transactions, wvoasis has two versions of most procurement documents Central documents are identified by the prefix C (such as CRQS) Decentralized (agency) documents are identified by the prefix A (such as ARQS) Workflow is determined based on this designation 6

7 Procurement Documents Procurement State Centralized Decentralized Requisition CRQS ARQS Solicitation CRFQ ARFQ Solicitation Response SR SR Evaluation EV EV Award Purchase Order CPO APO Award Contract CCT ACT Award Master Agreement CMA AMA Award Delivery Order CDO ADO 7

8 Procurement Types 1 Unclassified 2 Central Delivery Order 3 Central Cancel & Re-Award 4 Central Emergency Purchase 5 Central Lease 6 Central Lease Purchase 7 Central Master Agreement 8 Central Purchase Order 9 Central Sole Source 10 Central Contract - Fixed Amt 11 Agency Cancel & ReAward 12 Agency Delivery Order 13 Agency Emergency Purchase 14 Agency Lease 15 Agency Lease Purchase 16 Agency Master Agreement 17 Agency Sole Source 18 Agency Contract - Fixed Amt 19 Agency Purchase Order 20 Piggyback Delivery Order (Ext) 21 Piggyback Delivery Order (Int) 22 Statewide MA (Open End) 23 Request for Information 32 Grant Award 8

9 Copy Forward to Process Transactions 9

10 Procurement Folder The Procurement Folder provides a central location for buyers and procurement officers to manage a purchase through the life cycle Use page code PRCUID in the Jump-To Box, or Document Header Related Actions View Procurement Folder 10

11 PO vs CT How to determine if a requisition should result in a purchase order or a contract A purchase order is a one time purchase that will conclude upon receipt of goods or services and does not contain renewal options A contract sets a price for goods or services to be received over a period of time (or term) and usually includes renewal options 11

12 CT vs MA What is the difference between a contract and a master agreement? A contract is used to acquire a defined amount of goods or services over a defined period of time (or term) and encumbers funds A master agreement sets pricing for future purchases of goods or services over a defined period of time (or term) and does not encumber funds until a delivery order is processed 12

13 Line Type Use line type Item when there is a quantity (defined or estimated), unit and unit price Use line type Service when there is a contract amount Use line type Catalog when the contract will contain one or more e-catalogs Use line type Discount when using a list price or discounted unit price 13

14 Avoid Quantity of One Avoid using a quantity of one on a purchase order unless you know for sure your agency will receive only one invoice for the commodity line If you need to allow partial payments, then the quantity needs to be greater than one, or you need to include additional commodity lines Another alternative is to make the commodity line a Service instead of an Item type After all, 1 * n = n 14

15 Update: CPO & APO Effective Dates Effective dates now optional for service-type commodity lines This applies to CPO and APO Documents ONLY at this time Dates can be maintained at the Header level Dates can still be maintained at the Commodity level if desired 15

16 Update: CPO & APO Effective Dates Benefits: Should make it easier to process construction contracts and other purchase orders that require issuance of a notice to proceed Should eliminate the processing of commodity lines for services with a quantity of one Less data entry 16

17 Reporting Fields Requisition and award documents have seven reporting fields at the header level Reporting Field 1 is used to record the solicitation type and is a required field Reporting Field 2 is used for third-party approvals Reporting Field 4 may be used by agencies at their discretion Remaining fields will be assigned by wvoasis in the future 17

18 Third Party Approvals Instructions for Third Party Approvals are available on myapps / Enterprise Readiness / Outreach Sessions / Procurement / Updates Examples of Third Party Approvals include: Fleet Management for vehicles Office of Technology for computer related orders State Treasurer s Office for banking services 18

19 myapps Resources 19

20 Attachments Any attachments that are to be sent to the vendor must be attached to the document header Any attachment not sent to the vendor should be added to the Notes section of the procurement folder All attachments may be subject to FOIA requests 20

21 Objective 2 To explain the structure and role of commodity codes 21

22 Purpose Commodity codes are a tool for classifying information, similar to sorting things in alphabetical or chronological order Commodity codes can be used to manage procurement data 22

23 Commodity Codes Enable Two- and three-way matching Reporting and spend analysis Bid opportunity alerts and notifications Inventory control, materials management Catalog management Recording of potential Fixed Assets 23

24 UNSPSC We use United Nations Standard Products and Services Code (UNSPSC) in wvoasis UNSPSC is a hierarchical standard for classifying products and services UNSPSC was jointly developed by the United Nations Development Program and Dun & Bradstreet 24

25 UNSPSC Hierarchy UNSPSC codes are eight digits in length The codes have a four-level hierarchy Segment Family Class Commodity

26 UNSPSC Structure The segment number increases as value is added to the product or service. Segment 95 is currently the highest segment. It includes land, buildings, highways, and infrastructure. 26

27 Commodity Table 27

28 Wildcards Use wildcards to improve your search results wvoasis UNSPSC.org 28

29 Objective 3 To introduce the wvoasis Cycle Dashboard 29

30 Cycle Dashboard The wvoasis Cycle Operations Dashboard is an inquiry page on myapps to assist agency purchasers with delegated acquisitions When a vendor submits a solicitation response in Vendor Self Service (VSS), the document remains sealed in the VSS electronic lockbox until the solicitation closing date and time are reached Then, responses are copied from the lockbox to the procurement folder by a series of synchronizing interfaces known as the VSS Sync Cycle 30

31 wvoasis Cycle Operations Dashboard Use the dashboard to know exactly when the cycle is complete, and when it is appropriate to load the solicitation responses to the EV To refresh the dashboard, click the VSS Cycle Report link located on the left side of the page 31

32 wvoasis Cycle Operations Dashboard The VSS Sync Cycle runs every hour on the half hour throughout the day beginning around 07:30 The last sync cycle of the day runs around 17:30 Bid closing times are entered and displayed in 24-hour format Bid closings on the half hour are optimal; 11:30, 14:30, or 15:30, for example. The 12:30 cycle should be avoided because it is used occasionally to perform other technical tasks. 32

33 Objective 4 To review commodity-based encumbrance and pre-encumbrance 33

34 Encumbrance To encumber funds means to set aside or reserve money for a specific purpose An encumbrance references a vendor A pre-encumbrance may or may not reference a vendor 34

35 Encumbrance Methods There are two methods to encumber funds in wvoasis: 1. Accounting-based documents (GAE, GAP) 2. Commodity-based documents: (*RQS,*PO, *CT, *DO) 35

36 Accounting Event Types Event types control whether the dollar value on accounting lines are encumbered now, or in an out-year (future fiscal year) Document Type Non-Accounting (Out-Year) Accounting (Current Year) RQ PR01 PR02, PR05 PO PR07 PR05 36

37 Crossing Fiscal Years Accounting Line Fields Current Fiscal Year Encumbered Now Out-Year Encumbered After FY Roll Event Type PR05 (PO) or PR02 (RQ) PR07 (PO) or PR01 (RQ) Reserved Funding No Yes Budget Fiscal Year , 2021, 2022 Fiscal Year

38 Encumbrance Liquidation Do NOT cancel Purchase Orders and Delivery Orders to free up budget (common during the end of the fiscal year) This can result in confusion to your vendors This has an adverse effect on reporting Instead, agencies should use the appropriate procedure when a remaining encumbrance needs to be liquidated 38

39 Encumbrance Liquidation If the scope of work was over-estimated, process a Change Order to reduce the open amount If the item(s) will not be delivered until the new fiscal, an Accounting Adjustment should be processed to move the encumbrance to an out (future) fiscal year 39

40 Encumbrance Liquidation If payments were made by GAX or P-Card without reference to the Purchase Order, use the liquidation instructions provided on myapps / Enterprise Readiness / Outreach Sessions / Financial / Year End Closeout 40

41 AETDC Table Type Page Code AETDC in the Jump-To box to view the entire list of event types 41

42 Master Agreements As mentioned earlier, Master Agreements are open-end contracts Therefore, CMA and AMA documents are not encumbered Only the CDO and ADO documents are encumbered 42

43 CRQM and ARQM The system requires accounting lines on requisitions for Master Agreements (CRQM, ARQM) However, there is no downstream benefit Therefore, use Event Type PR01, Reserved Funding Yes, allow the current BFY to be inferred Leave the Fund Accounting and Detailed Accounting tabs blank 43

44 CRQM Accounting Line General Information Tab 44

45 CRQM Accounting Line Fund Accounting Tab Again, leave the Fund Accounting and Detailed Accounting tabs blank 45

46 Maximum Budgeted Amount On requisitions in wvoasis, the Maximum Budgeted Amount field does not preencumber or reserve funds in any way It is only used to determine whether negotiations are allowed (when all bids exceed available funds) 46

47 Objective 5 To examine document and line references 47

48 Document References Document references are created when a document is copied forward to create the next document in a chain. An example would be copying an agency requisition (ARQS) forward to create a solicitation (ARFQ). 48

49 Line References Each commodity line has a Reference tab that identifies a specific commodity line from another document to which it is linked, if any. Likewise, each accounting line has a Reference tab that identifies a specific accounting line from another document to which it is linked, if any. 49

50 Reference Types The selection of a reference type determines the action taken against the referenced document line The default value for the reference type field varies between different document types and on some document types it is even protected. Certain document types give three choices and others give all four choices. 50

51 Reference Type Choices The Reference Type can have one of the following four options: 1. Memo When all that is required is a link between the referencing and referenced documents for reporting and research purposes, the memo type is used. It does not perform any common liquidation of the referenced document. 2. Partial When a referencing document should close only a part of the referenced document, then the partial type is used. This is the default reference type for most situations. 3. Final When a referencing document should close out the remainder of a referenced document, then the final type is used. Common logic determines this reference type in the certain situation where the referencing line amount is equal to or greater than the referenced. 4. Inverse When a referencing document should re-open a portion of the referenced document, the inverse reference type is used. This reference type is not available on all documents. 51

52 When, When Not Line references are needed when the lines on a previous document in the chain need to be fully liquidated or only partially liquidated. However, line references are not needed when there is no applicable line on which to take action. An example would be when a new commodity line is added to a purchase order by copying an existing line. The line reference is also copied even though the new line may not exist on the referenced requisition. 52

53 Delivery Order References Delivery order references are easy For CDO and ADO documents, the Reference Type is always Partial on commodity lines and accounting lines 53

54 Objective 6 To discuss the accounting adjustment procedure for centralized procurement documents 54

55 Purpose The purpose of accounting adjustments is to provide a means to expedite changes that are strictly accounting in nature All other changes to procurement documents must be submitted into central procurement workflow as formal change order requests Please note that the issuance of a Notice to Proceed is no longer considered to be an accounting adjustment because it impacts effective dates 55

56 Identifying Accounting Adjustments On the Document Header, Modification tab, the Track Changes box should be checked only when processing a change order Remove the checkmark when processing an Accounting Adjustment In the Reason for Modification field, the first two words must be Accounting Adjustment 56

57 Example 57

58 Validate & Make sure the document validates successfully, but do not submit Instead, the document ID to: The Finance Team will review the Accounting Adjustment; make sure no changes have been made to the actual total, the vendor, the effective dates, and the pricing; and then finalize the document 58

59 Accounting Adjustments Detailed instructions for processing accounting adjustments to procurement documents have been posted on myapps 59

60 Objective 7 To discuss the process for modifying unit prices on contracts and purchase orders 60

61 Objective 7 A change order should be processed if the unit price changes, even if the unit price is being reduced Do NOT modify the unit price on an existing Item Type commodity line if there has already been Invoices, Receipts or Payment Requests. Proper steps are: On the existing Commodity Line, lower the quantity to match the closed amount Copy the existing line and insert copied line On the new line, enter the remaining quantity to be paid and the new unit price Following these steps will help you avoid rounding issues 61

62 Questions 62 Website: wvoasis.gov 62