For State Operated Campuses Optometry – April 18, 2018 System Administration – May 8, 2018

1. ALL TEXT SHOULD BE ARIAL FONT IN BOLD. DO NOT LEAVE THE DEFAULT CALIBRI. An Introduction to Campus Let Contracts For State Operated Campuses Optometry – April 18, 2018 System Administration – May 8, 2018 Binghamton – May 17, 2018

2. Objective • Increase knowledge and understanding of: • Financial Management of Capital Funds • Procurement Requirements • Consultant Selection Training SUNY Office for Capital Facilities

3. Office for Capital Facilities • Guidance Documents • Listservs • Newsletter • OCF Website Visit our Website • Campus Let Contracts Program • Community College Capital Program • Energy Management , EO88 and Sustainability • Environmental Health and Safety • Energy Procurement and Utility Regulatory Affairs • Residence Hall Capital Program SUNY Office for Capital Facilities

4. SUNY Capital Organization & Primary Capital Programs ORGANIZATIONAL STRUCTURE PROGRAMS AND CONTRACT RESPONSIBILITY • Educational Facilities (State-operated) • Projects managed by the Fund or campuses • Supported by the State (appropriations and debt service) • Subject to the State’s bond cap • Hospital Facilities (State-operated) • Projects managed by the Fund or campuses • Supported by the State and Hospital revenues (appropriations provided by the State, debt service reimbursed with hospital revenues) • Subject to the State’s bond cap • Residence Halls (State-operated) • Projects managed by DASNY or campuses • Supported by Room Rents (bonds issued by DASNY, debt service paid with room rents) • No longer subject to State capital appropriations • Revenue bonds issued by DASNY are no longer subject to the State’s bond cap • Community Colleges • Projects managed by local community college sponsors or the campus with limited state oversight. • Supported by local sponsor (50%) and State (50%) • Appropriations for new projects must be appropriated in the State Budget with a supporting resolution from sponsor committing the local share Robert M. Haelen SUNY Vice Chancellor for Capital Facilities Fund General Manager Office for Capital Facilities State University Construction Fund • State-operated Campus Capital • Statutory Colleges Capital • Hospital Capital • Capital Budgeting & Planning • Execution of Design and Construction Contracts • Environmental Health & Safety • Emergency Planning Support • Campus Let Contracts • Community College Capital • Residence Hall Capital • Energy Management • Energy Procurement & Utility Regulatory Affairs SUNY Office for Capital Facilities

5. Campus Let Contracts Guidance Documents • CLC-1 Construction Bonds • CLC-2 Temporary Services • CLC-3 Construction Authority • CLC-4 Contract Threshold Chart • CLC-5 Division of Budget Approval B-1184 • CLC-6 Debriefing • CLC-7 Single/Sole Source, Specific Allowances • CLC-8 Field Orders • CLC-9 Furniture, Fixtures and Equipment • CLC-10 Insurance Limits • CLC-11 Approval of Real Property Transactions • ENG-01 Solar PV Projects SUNY Office for Capital Facilities

6. SUNY Office for Capital Facilities

7. Financial Management of Capital Funds SUNY Office for Capital Facilities

8. The SUNY Footprint Notes:(1) To accommodate enrollment growth, the SUNY footprint of 29 State-operated campuses, 5 statutory colleges, and 30 community colleges also grew and now includes almost 2,900 buildings and over 100M square feet of space. The State-operated campus buildings represent more than 40% of all New York State-owned assets. This is second to only the NYS Department of Transportation, which is predominantly infrastructure. (2) Average age (in years) represents the straight average, with no consideration given to the size of buildings or subsequent renovations. Data reflects campus reporting through July 2017. SUNY Office for Capital Facilities

9. Budget Cycle The State’s Fiscal Year is April 1st through March 31st June – September/October January - March November - January September/October-December SUNY Office for Capital Facilities

10. Capital Appropriations SUNY Office for Capital Facilities

11. Types of Appropriation Advanced = Bonded = 30 year loan SUNY Office for Capital Facilities

12. Campus Administered Projects See Handout #2 • Campus Let Projects • Campus managed construction projects funded by SUCF appropriations. • Campus Administered Procedures apply • Campus Funded Projects • Campus managed construction projects funded by SUNY appropriations or other funds such including those from the Foundation, Research Foundation, Auxiliary Service Corporation, Alumni Association, Income Fund Reimbursable (IFR) accounts or Grants. SUNY Office for Capital Facilities

13. Authority • Appropriation: Statutory authorization to make expenditures during a specific State fiscal year. The amount of actual expenditures against an appropriation is limited by the disbursement target. • Disbursement target: A spending cap placed on appropriations by the Division of Budget limiting the total amount of expenditures that may be made in a specific State fiscal year. • Reappropraition: A prior or current year appropriation which will not be fully spent by the end of the year and is recommended for extension. SUNY Office for Capital Facilities

14. Declining Disbursement Caps Present Additional Challenges SUNY Office for Capital Facilities

15. Management of Capital Funds • Bond proceeds must be used only for capital costs • Useful life of Project • Tax exempt vs. taxable bonds • Annual Private Use Survey SUNY Office for Capital Facilities

16. Operating vs. Capital Expense Operations and Maintenance • Budgeted staff payroll • Utilities • Office supplies and janitorial supplies to support regular operations • Disposal of hazardous waste from academic or research activities Capital • Architecture and Engineering Studies • Design • Construction • Construction Material • Equipment - Fixed SUNY Office for Capital Facilities

17. Operating vs. Capital Expense Operations and Maintenance expense, unless done as part of a new construction or major renovation project • Landscaping • Painting • Carpet • Furniture • Moving expenses • Resealing, resurfacing or relining parking areas SUNY Office for Capital Facilities

18. Procurement Requirements and Thresholds SUNY Office for Capital Facilities

19. Construction Authority and Funding • New York State Education Law (§355 and §376) establishes the authority for design, construction and rehabilitation of SUNY facilities on SUNY property • Who has that authority? SUNY Office for Capital Facilities

20. Construction Authority and Funding • Who does NOT have the authority to procure design and construction work? • Research Foundation • Campus Foundation • Auxiliary Service Corporation • 3rd party occupants (Barnes & Noble, Starbucks, Sodexo, Marriott) • Campus-affiliated corporations Learn more, see Guidance Document CLC-3 SUNY Office for Capital Facilities

21. Procurement Requirements SUNY Office for Capital Facilities

22. Procurement Requirements See Handout #1 Polices and Procedures • 7553 – Purchasing • 7552 – Procurement Lobbying • 7554 – Construction • 7555 –Consultants • 7556 and 7557 – MWBE SUNY Office for Capital Facilities

23. Campus Let Design Project SUNY Office for Capital Facilities

24. Campus Let Construction Project SUNY Office for Capital Facilities

25. Most Qualified Selection (Consultant) • Contracts are negotiated with the most qualified consultant • Applicability: >$25,000 • SUNY Procedure #7555 NYS Finance Law §136-A SUNY Office for Capital Facilities

26. Competitive Bid (Construction) • Awards made by public letting to the lowest qualified bidder • Applicability: >$20,000 • SUNY Procedure #7554 NYS Education Law §376 SUNY Office for Capital Facilities

27. Pre Solicitation SUNY Office for Capital Facilities

28. Pre Solicitation • If capital, follow the Campus Administered Procedures • Capital Project Request Form Division of Budget B-1184 approval • Project Funding Request Funding Source Campus Let vs. Campus Funded Project Funding Requests must be approved by the Fund prior to placing an advertisement SUNY Office for Capital Facilities

29. Campus Let • (Campus Administered) • Campus Funded Campus Let vs. Campus Funded • Capital Appropriation, including 384 • Project Initiation: Campus Administered Procedures apply • Eligible for Wick’s Waiver • Advertisement in Albany paper and a paper of general circulation • Operating Appropriation and other campus funding • Project Initiation: Campus process applies • Subject to Wick’s • Advertisement in a paper of general circulation SUNY Office for Capital Facilities

30. B-1184 Learn more, see Guidance Document CLC-5 • Division of Budget’s authorization to spend capital funds • Done online through the Agency Spending Controls Application (ASCA) • Does NOT apply to professional staff and site reps • Applicability: Capital projects >$100,000 – MWBE, ESD Approval • >$1,000,000 – DOB and Governor’s Office Approval Division of Budget Bulletin 1184 SUNY Office for Capital Facilities

31. 384 Funds • Transfer funds from sources other than state-bonded appropriations (grants, donations, other revenue and funding sources) to a capital account • State University Capital Projects Fund (SFS: 325 / CAS: 384) • State Financial System: 325 • Central Accounting System: 384 SUNY Office for Capital Facilities

32. Wicks Law (Construction) • Contracts over the threshold require separate specifications and bids for; • General Contracting • Mechanical: steam heating, hot water heating, ventilating and air conditioning apparatus • Electrical: electric wiring and standard illuminating fixtures • Plumbing: plumbing and gas fitting SUNY Office for Capital Facilities

33. Wicks Law (Construction) • Wick’s Applicability thresholds by county • >$3M in Bronx, Kings, NY, Queens, and Richmond • >$1.5M in Nassau, Suffolk, and Westchester • >$0.5M in all other counties within the state SUNY Office for Capital Facilities

34. Campus Let • (Campus Administered) • Campus Funded Wicks Law (Construction) • Campuses may apply for a Wick’s Waiver with the Fund • Construction must be funded entirely with capital appropriations made to the Fund (includes 384) • Construction Contracts funded by operating or other funds are not eligible for a Wick’s Waiver • Contracts under the applicable thresholds must have bidders submit with their bid a separate sealed list that names each subcontractor. SUNY Office for Capital Facilities

35. Prevailing Wage Rates (Construction) • Applicability: All contracts and purchase orders • Provide a copy to the prime contractor and incorporate it into the contract • Primes provides schedules to subcontractors • Prime provides copies of certified payroll to the campus • Request a wage schedule from the Department of Labor website NYS Labor Law, Article 8 & 9 SUNY Office for Capital Facilities

36. New York State Contract Reporter • Advertisement for at least 15 business days prior to the bid due date • Individual ad for contracts in excess of $50,000 • Quarterly ad for anticipated contracts >$10,000 but <$50,000 • NYSCR Website NYS Economic Development Law (§142) SUNY Office for Capital Facilities

37. Emergency Procurements and Exemption from Advertising • Declaration of the emergency and waiver of competitive bidding, signed by a senior campus officer • Establish reasonableness of price by obtaining a minimum of three verbal or written quotes • Notify your Fund Program Manager or SUNY OCF • A waiver for publication in the NYSCR is required from OSC prior to contract award SUNY Office for Capital Facilities

38. Newspaper Advertisement (Construction) • Campus Let contracts require a one day ad in an Albany paper and in a local paper of general circulation • Campus Funded contracts require an ad in a local paper of general circulation • Contact a reasonable number of local contractors, a minimum of 5, if feasible • Applicability: >$50,000 NYS Education Law (§376) and Public Building Law (§8) Albany Paper = Times Union TULegals@TimesUnion.com SUNY Office for Capital Facilities

39. Procurement Lobbying Act • Limits communications during the Restricted Period – from Contract Reporter Ad to Contract Execution • All inquires must be directed to the Designated Contact • Requires vendor affirmation, certification and disclosure of compliance • Applicability: >$15,000 • SUNY Procedure #7552 NYS State Finance Law § 139-j SUNY Office for Capital Facilities

40. Procurement Lobbying Act • “Contact” means an oral, written or electronic communication to SUNY related to the procurement by or on behalf of the Offerer during the Restricted Period that could be inferred as intending to influence the procurement • "Restricted period" meansfrom the earliest written notice, advertisement or solicitation of a request for proposal, invitation for bids, or solicitation of proposals, or any other method for soliciting a response from offerers intending to result in a procurement contract    For more, read Procedure 7552 SUNY Office for Capital Facilities

41. Project Sunlight • SUNY is required to report 'appearances' by individuals/firms who 'appear' before State decision-makers or persons who advise decision-makers. • An ‘appearance’ is a substantive interaction, in person or over video conference, that is meant to have an impact on decision making process of the state entity. • The Project Sunlight database, hosted by the NYS Office of General Services, aggregates the inputted data and makes it available to the public for viewing. For more, see SUNY’s compliance website SUNY Office for Capital Facilities

42. Vendor Responsibility • For all contracts vendors and contractors must be deemed responsible • Contracts >$100,000 require • Vendor Responsibility Questionnaire using VendRep • Agency certification of Vendor Responsibility • OSC Guide to Financial Operations, Section XI.16 Vendor Responsibility NYS State Finance Law §163 SUNY Office for Capital Facilities

43. Certificate of Insurance • Required for ALL contracts and purchase orders • At a minimum, insurance limits must equivalent to the limits in the construction and consultant agreements • General Liability • Auto • Workers Comp and Disability • Owners and Contractors Protective Liability (const) • Builders Risk (const) • Professional Liability (design) SUNY Office for Capital Facilities

44. Required Forms • ACORD 25 - Certificate of Liability Insurance • NYS Workers’ Compensation Form • Generally form C-105.2 • NYS-required Disability Insurance Form • Generally form DB-120.1 • SUNY Insurance Checklist (internal) For more information see: CLC-10 Insurance and the Council of Contracting Agencies Insurance Guidelines SUNY Certificate of Insurance SUNY Office for Capital Facilities

45. Bonds • Construction Bonds • Applicability: >$50,000 • Performance Bonds • May be waived when only one (1) payment is made to the contractor upon successful completion of the work • Labor & Material Bonds cannot be waived • Multiple contracts for project - the entire project value must be fully bonded Learn more, see Guidance Document CLC-1 NYS State Finance Law § 139-f SUNY Office for Capital Facilities

46. Campus Procurement Certification • SUNY procedures require a Campus Procurement Certification for all contracts (not purchase orders) • >$250,000 – signed by a Campus Vice President and uploaded to the “SUNY Procurement Officers” space in Confluence SUNY Office for Capital Facilities

47. Field Orders • To address a field condition or barrier to accessing the construction site • To clarify the specification, address the technical execution of a problem or update contract documentation • To address an omission Learn more, see Guidance Document CLC-8 SUNY Office for Capital Facilities

48. Change Orders • A program change • A substitution • A bond premium and/or insurance adjustment • A time extension not resulting from a field order condition • An allowance adjustment • To address an error SUNY Office for Capital Facilities

49. Should this be a change order; or a new contract? • What was the scope, schedule and budget of the original contract? • At the end of the contract, did we buy what we bid out? • We must be able to support that change order work could have been reasonably contemplated as part of the original scope SUNY Office for Capital Facilities

50. SUNY Office for Capital Facilities