CDOT's Mission Statement: Streamlining Professional Services Voucher Payment Process

1. Agenda CDOT’s Mission Statement Overview (Professional Services Voucher Payment Process) History Audit CDOT changes Objectives Benefits CDOT’s New Invoice Process Requirements How you can help Team effort (CDOT and Vendor) Vendor input Questions

2. MISSION STATEMENT It is the goal of the Department of Transportation to effectively manage, through project programming and project design, the maintenance and capital rehabilitation of the City of Chicago’s transportation infrastructure, enabling the safe and efficientmovement of vehicles, cyclists and pedestrians on modernized and beautified streets, bridges and viaducts by utilizing a combination of city labor trades and contracted construction companies, equipment and materials tailored to each specific task or project and by expediting completion in a cost-effective andtimelymanner of which the finished product meets or exceedsthe industry standards of practice and workmanship. Rebekah Scheinfeld Commissioner

3. Professional Services Voucher Payment Process

4. History Payments to consultants within 30-120 days Incomplete packages Resulted in “phone tag” between CDOT staff and consultants. Incorrect reference numbers on documents within packages Incorrect contract, project and release numbers resulted in additional CDOT research time to reconcile invoices, which resulted in overall protracted processing times Packages delivered to incorrect personnel for processing . Packages delivered to familiar personnel, e.g., the project manager or undefined personnel (rather than the designated processing personnel) resulted in delayed processing. Separate bills Prime Consultant submitted separate invoices for work performed by subcontractors caused delays on processing invoices. Cumulative bills submitted Consultants submitted invoices detailing several months services in one package instead of one month increments delayed processing. Errors on bills Math errors resulted in reconciliation efforts by CDOT staff including, but not limited to, telephone calls and mailings to obtain verification of corrections. These additional measures added to processing time. Sub-standard cohesion and communication between Consultant and CDOT Independent networks were established resultant of convenience of communication. This disrupted the standard protocol of processing.

5. Audit CDOT retained an Independent Auditor to assess the entire CDOT Professional Services Voucher Payment Process to determine how CDOT could improve the existing system to achieve greater efficiency.The Audit disclosed several areas where CDOT had room for vast improvement within the voucher payment process. The generic recommendation provided by the Audit was that CDOT modify its existing protocol to incorporate more thorough, industry- standard accountability practices. The more specific findings have been incorporated into this presentation and will be discussed in greater detail herein.

6. CDOT changes CDOT evaluated and accepted many of the recommendations provided by the Auditor. Accordingly, CDOT has begun implementing those process changes. Many of those changes will directly impact the way you do business with CDOT. Therefore it is important that:- We familiarize you with these changes and requirements for processing invoices.- We get your input and feedback regarding these proposed changes so that we can implement these changes to the process in the most productive way possible.

7. Objectives To present an overview of the current procedure for processing Professional Voucher Payments. To highlight some of the issues with the past processing system. To inform the consultants about the proposed process changes. To discuss and develop additional methods of improving the Division’s performance to serve the needs of the consultants through consultant’s input and feedback. To address concerns and answer questions.

8. Compliments CDOT Mission Statement: When CDOT actions are consistent with the CDOT Mission Statement the Department is assured that it is providing the best possible service to the City taxpayers. Gets the Vendor paid timely: These procedures will also help to insure a predictable and reliable payment schedule for consultants. This will allow you to operate your business more efficiently and continue to assist CDOT achieve its objectives. Benefit to CDOT and Consultant

9. CDOT Changes in Invoice Processing Procedures • Unified Repository/Tracking • Time and date stamped • Cumulative invoices • Separate agreements • Invoices under $500.00 • - Payment Voucher Requirements

10. Unified Delivery/Tracking Consultants must submit all monthly invoices for labor and costs to: Deputy Commissioner, Cheiko High Chicago Department of Transportation Records and Estimates Section 30 N. LaSalle, Suite 600 Chicago, IL 60602 All invoices shall be delivered via a commercial form of delivery which provides a tracking service.

11. Acknowledgment of receipt of invoice All invoices received for processing will be time and date stamped upon receipt by Department personnel. Invoices returned to the Consultant for deficiencies shall be date stamped with a return date.

12. Cumulative invoices Cumulative, multiple-year invoices will be rejected, stamped with a return date, and returned to the consultant.

13. Separate agreements Where the consultant has more than one agreement with CDOT, a separate invoice must be submitted for each agreement. Combine multiple projects in one invoice will be rejected

14. Invoice minimum Invoices for less than $500 will not be accepted unless the invoice is for the last payment prior to closeout of the contract.

15. Each Payment Voucher must include the following: One original plus three copies of the entire billing package. The billing package must include the five-part payment voucher form, supplied by CDOT. (A copy of the form can be found on the next page.) Do not remove the Vendor copy. It will be returned to you after the bill has been processed. Payment Voucher Requirements

17. The voucher must have the following information: • Company’s name • Vendor code (Assigned by Procurement) • Address • Invoice number • Payment number • Contract number • Service performed (Date) • Project number • CDOT project manager • Release number • Amount of basic contract service • Amount of reimbursable • Contract ceiling amount including reimbursable • Amount of current invoice • Amount invoiced to date including current invoice • Invoice date • Name of consultant • Authorized signature of the vendor

20. Second item in the billing package Summary Page of the bill which includes the following information: • Summary should be written on the company letterhead and must contain the following information: • Total labor charge • Overhead burden and fringe • Fixed fee • Percent complete • Direct costs • Total amount due on the invoice • Previous, current and total amounts charged. • Sub-contractor: Contract Amount, Invoiced to Date, Paid to date. The consultant must support each invoice with reasonable detail as outlined in the Schedule of Compensation in Exhibit 2 or Project Notice.

21. Sample of Invoice Summary

22. Sample of Invoice Detail

23. Labor Sheet

24. Please do not forget: • Payroll Data (in time sheet) • Direct Costs (copy of receipts) • Work by Subcontractors-Consultants • (Verified by Prime) • .

25. Travel Expenditures Policy • Refer to Travel Guidelines as indicated in your agreement or as indicated on the City of Chicago web site. • http://webapps.cityofchicago.org/publish/etc/medialib/intranet_media_library/misc/policies/travel.Par.68855.File.tmp/TravelPolicy08.pdf

26. Common Causes of Payment Delays • Insufficient documentation • Incorrect calculations • Incorrect contract number • Incorrect project number or multiple project #’s • Incorrect release number • Incorrect address

27. Vendor Complete invoice Accurate invoice Monthly submission Correct address CDOT Expedite the payment to Vendor Better communication Correctly charge invoice to the task order CDOT Project Manger Setup the funds before assigned task Order Track processing from receipt of invoice to payment CDOT Commissioner’s Office Approve invoice and return in timely manner TEAM EFFORT

29. Reminder Consultants must submit all monthly invoices to: Deputy Commissioner, Cheiko High Chicago Department of Transportation Records and Estimates Section 30 N. LaSalle, Suite 600 Chicago, IL 60602

30. Key Contact Personnel Cheiko High, Deputy Commissioner of Administration 312.744.3133 E-mail: Director of Administration : Cheryl Scott-Donegan 312.744.3910 E-mail:CScott@cityofchicago.org Mohammed Pakshir 312.744.3561 E-Mail: mpakshir@cityofchicago.org

31. Any Questions?