Current through Register Vol. 49, No. 9, September, 2024
I.
PURPOSE:
To provide the Department of Human Services (DHS) with uniform
departmental procedures for the acquisition of construction, renovation,
remodeling, and repair services, in accordance with Arkansas Building Authority
(ABA) Standards and Criteria, Arkansas Code Annotated (A.C.A.) §§
19-4-1401 et seq., and
22-9-101 through
22-9-702. Reference to and
adherence with the Standards and A.C.A. are CRITICAL.
II.
SCOPE:
A. The
procedures shall be applicable to all DHS divisions, offices, and
facilities.
B. The DHS, Office of
Finance and Administration (OFA), Central Support Unit (CSU) has the authority
for construction, renovation, remodeling, and repair projects, under Arkansas
Building Authority (ABA) Standards and Criteria, for:
1
. Central office
2.
Field offices, and
3. Facilities, IF
the project is over $20,000 OR IF the project is
related to a Method of Finance (MOF) regardless of the amount. All MOF funded
projects regardless of cost are to be coordinated through CSU.
C. The DHS facility purchasing
units have authority for their facility projects that do NOT exceed $20,000 IF
the project is NOT related to an MOF. The facility purchasing units MUST,
however, comply with the above indicated standards and A.C.A.
provisions.
III.
PROCEDURES: Construction, Renovation, Remodeling, and
Repair of Owned Facilities
A.
$5,000 and below1 .
For projects that are NOT related to an MOF, the requesting
division shall process the requests internally under normal purchasing
procedures, and issue a small order (SO) purchase order (PO) directly to the
vendor.
2. For projects that
ARE related to a MOF, the requesting division shall proceed as in
B.2. below.
B.
Over $5,000 but not exceeding $20,000
1. For projects that are
NOT
related to an MOF:
a. The requesting
division shall competitively bid the project, with the assistance of CSU, if
requested. A minimum of three bona fide bidders must be contacted.
b. The division shall complete the PO. The
request shall include:
(1) Total cost amount
inclusive of all taxes
(2) Quote
Bid sheet
(3) Contract and Grant
Disclosure and Certification form
(4) Proof of liability insurance (Bids, in
any amount, will not be accepted without the Certificate of Insurance for
contractor's general liability, Workers' Compensation, and auto insurance.
General liability coverage must be at least$100,000.)
2. For projects that
ARE
related to an MOF:
a. The requesting
division shall competitively bid the project, in coordination with CSU. A
minimum of three bona fide bidders must be contacted.
b. The division shall request CSU to complete
the PO. The request shall include:
(1) Total
cost amount inclusive of all taxes
(2) Quote Bid sheet
(3) Contract and Grant Disclosure and
Certification form
(4) Proof of
liability insurance (Bids, in any amount, will not be accepted without the
Certificate of Insurance for contractor's general liability, Workers'
Compensation, and auto insurance. General liability coverage must be at
least$100,000).
c.
(1) If an MOF has not already been completed
for the project,
the requesting division CFO shall complete an MOF (DFA-0015).
The requesting division Director or division Chief Fiscal Officer AND the DHS
Chief Fiscal Officer shall approve the MOF. The MOF shall identify sufficient
funds to cover the construction contract and related costs, such as postage,
advertising for bidders, copying of sepia and blue prints (reproductions), soil
boring (as needed), site surveys (as needed), Department of Health review ($500
maximum), etc. as applicable.
(2) On the MOF, the division shall identify
"IDE" (Construction) or other identified funding as the source of funding and
shall indicate the appropriate MOF encumbrance number, if available. The
division shall forward the completed DFA-0015 to CSU for processing and DFA
approval. Once the MOF has been approved by DFA, the division and CSU shall
prepare a budget sheet indicating the appropriate commitment item (i.e., 02,
10, or 11). CSU will process the budget sheet through OFA Managerial Accounting
to assure funds are available.
d. CSU will create the PO and send the
approved PO to the requestor and to the vendor.
e.
Under no circumstances shall a PO
be issued or a PO number
divulged to a vendor prior to CSU approval. MOF approval
does NOT constitute PO approval. Releasing a PO prior to approval will result
in Claims Commission action that could assess personal liability.
f. ALL invoicing/payment
processing
MUST be processed through
CSU.
C.
Over $20,000
For projects that exceed $20,000, ABA or the approved Architect
or Engineering firm under contract with the facility shall competitively bid
the project, in strict adherence with ACA §§
19-4-1405 and
22-9-203. All projects anticipated
to exceed $20,000 require the services of a design professional provided under
ABA Standards and Criteria or through a professional services contract. CSU
will determine the means by which professional services shall be
acquired.
1. The requesting division
shall describe the project in general, in letter form, and forward it to CSU
for processing.
a.
If the project is to
be paid from construction funds, and if the division has not already
done so, the requesting division shall also complete an MOF (DFA-0015). The
requesting division Director or division Chief Fiscal Officer AND the DHS Chief
Fiscal Officer shall approve the MOF. The MOF shall identify sufficient funds
to cover the construction contract and related costs, such as postage,
advertising for bidders, copying of sepia and blue prints (reproductions), soil
boring (as needed), site surveys (as needed), Department of Health review ($500
maximum), etc. as applicable. The division shall forward the MOF to CSU along
with the project letter.
b. If the
project is NOT to be paid from construction funds, the requesting division
shall indicate the source of funds to be utilized.
2. CSU will complete the requisition and
Request for Quote (RFQ) in the Arkansas Administrative Statewide Information
System (AASIS) and forward in AASIS to the appropriate division representative
for approval.
3. CSU will create
the RFQ for the professional services required and assist the division under
ABA Standards and Criteria in the selection of the Architectural or Engineering
firm to produce the required plans and specifications in Construction Institute
Language (CSI).
4. CSU will
maintain all construction project-related documentation and process all pay
requests from both the Architectural or Engineering and construction
contractors, in coordination with the ABA Construction and Architectural
Sections.
IV.
PROCEDURES: Professional Services -
Construction/Addition or Modification of Real Property
A. CSU shall coordinate with ABA to procure
and develop all new professional services contracts under ABA Standards and
Criteria and the Office of State Procurement Law and Regulations.
B. The selection committee shall be made up
of no fewer than three individuals, including the CSU Program Administrator and
two individuals appointed by the requesting division's Director or the CSU
Program Administrator.
C. CSU will
develop the professional services contract with the selected Architectural or
Engineering firm.
D. CSU will
complete the outline agreement and PO in AASIS upon approval of the
professional services contract by OSP.
V.
PROCEDURES:
Changes
A. The authority to approve a PO
Change Notice or Contract Change Order resides with the authority that approved
the original project, i.e., the CSU Program Administrator, General Services
Manager, Assistant Director, or division Director. All Change Order
documentation must be processed through CSU.
B. If a PO Change Notice or Contract Change
Order brings the project total to an amount greater than that covered by the
corresponding MOF, CSU and the division must revise the MOF
accordingly.
VI.
PROCEDURES: Related Charges
On the authority of a properly approved purchase request for
either construction or related professional services, CSU shall issue POs for
advertising, blue prints, and similar services on request from ABA or the
division, even when these services are not specifically spelled out in the
purchase request.
VII.
PROCEDURES: Emergency
A. If the time to accomplish normal paperwork
would endanger life, health, or state property, the emergency condition will be
registered with CSU. CSU shall notify ABA Construction Office at the earliest
possible time to request written approval from the Construction Administrator.
The paperwork may be done after the fact.
B. Approvals and other procedures will be
followed as closely as circumstances permit. Procedures as outlined in DHS
Policy 3002-1 concerning "Incident Reporting" are to be followed.
VIII.
PROCEDURES: Payment
Prior to payment for construction or construction related
services, completion or partial completion of work must be
substantiated.
A. Invoices, requests
for payment, and applications for certificate for payment must be approved for
release of payment (Voucher for State of Completion).
B. According to the provisions in A.C.A.
§
19-4-1411, DHS has a maximum of
five working days to process a payment request. Failure to comply
with processing times may result in a financial penalty being assessed against
the appropriation and allocation cited on the obligating document.
C. CSU has payment release responsibility for
all projects bid through ABA unless such responsibility and authority is
granted to a private design professional in an attendant professional services
contract.
D. If, after coordination
with the vendor and the ABA Construction Office, payment is to be denied or
partial payment withheld, the invoice or payment request is to be annotated,
and supporting documentation provided and forwarded to with copies to ABA and
the vendor.
IX.
PROCEDURES: Client Architectural Services
When projects from any of the divisions require architectural
or structural modifications to be made for the benefit of a client, to
properties that the State of Arkansas neither owns nor leases, the following
steps should be followed:
A. Payment
for the alteration or modification should be made to the party who owns or
leases the property to be altered or modified.
B. The owner must supply to DHS at least
three bids for the work to be done and, upon completion of the work, the owner
must supply DHS with invoices from the contractor for the work completed. If
these two items are not supplied, the owner must refund the money.
C. The owner must accept all liability for
the work, while in progress, and for the finished product when all work is
completed.
Note: ABA concurs with this procedure and should
not have to be consulted for any reason in this process.
X.
PROCEDURES: Request for Lease Action
A. When a leased facility needs
new construction or renovation, a Request for Lease
Action, ABA Form 5-1 00A, shall be completed. This process is required for any
renovation or alteration to currently leased space no matter how large or
small, e.g., a new electrical outlet installed or a major renovation. This form
can be obtained from DHS SharePoint under Out-of-Agency Forms.
1.
For Donaghey
Complex - The complete package consists of a justification letter
signed by the division Director or designee, a written estimate of costs, and
Form 5-100 signed by DHS Director or designee verifying the accuracy of
information and that funds are available.
2.
For County
Offices - The complete package consists of a justification letter
signed by the County Administrator, a written estimate of costs, and Form 5-100
signed by the County Administrator verifying the accuracy of information and
that funds are available, as well as by the Area Director and Assistant
Director of Division of County Operations.
3. The entire, completed package shall be
submitted to CSU, P.O. Box 1437, Slot W345, Little Rock, Arkansas 72203 for
further processing.
B.
When a division requires
additional lease
space:
1. The ABA
Form 5-100A must be completed and accompanied by a letter of justification from
the division Director. If the division needing additional space is located in
the Donaghey Plaza Complex and will require relocation within the complex, the
division shall find a division willing to fill the vacated space. CSU must be
able to fill the vacated area to avoid DHS paying rent on empty square
footage.
2. If more than one
division desires the same space within the Donaghey Plaza Complex, all ABA
5-100A forms, letters of justification, and evidence of ability to pay the
additional rent will be assembled by CSU and submitted to the OFA Chief Fiscal
Officer. The material will then be presented to either the DHS Executive Staff
or the DHS Director for consideration. The decision as to which division shall
occupy the space will be made by either of these entities.
Note: Only CSU may complete or coordinate these projects
with ABA Construction and Leasing Sections. Request for Lease Action
forms sent directly to ABA without the knowledge or approval from CSU will be
returned by ABA to CSU.
XI.
PROCEDURES: Disclosure to Comply With Executive
Order
A. Any non-exempt contract which
exceeds $25,000 total (compensation plus reimbursable expenses) shall require
the contractor to disclose information as required under the terms of Executive
Order 98-04, Act 34 of 1999, and regulations developed by Department of Finance
and Administration. CSS shall coordinate completion of the Contract and Grant
Disclosure and Certification form (Form PCS-D) with the division and the
provider for all new construction-related contracts and for all amendment
actions and change actions to such contracts.
B. ABA coordinates completion of the Form
PCS-D with the provider for all leases and lease amendments.
C. Questions concerning when or how to
complete the forms shall be directed to CSU, P.O. Box 1437, Slot W103, Little
Rock, AR 72203 or by calling (501) 682-6551.
XII.
PROCEDURES: Originating Section/Department
Contact
DHS/OFA/Central Support Unit
(501) 682-6551
Donaghey Plaza West, Slot W103
700 So. Main Street
Little Rock, AR 72203
XIII.
REPLACEMENT
NOTATION: This replaces APM, Chapter 605, previously issued
effective January 10, 2005.
