UC Regents Policy 5402 on In-Sourcing Covered Services

In-Sourcing Covered Services UC Regents Policy 5402 and Article 5 UC ANR Employee and Labor Relations (Mary Vlandis) Business Operations Center (Emily LaRue and Sally Harmsworth) October 29, 2020

Anticipated Outcomes Better understanding of UC Policy 5402 and Article 5 Learn what services are Hear how HR and the BOC are working together to standardize and process your service request needs Learn the 3 steps for processing not to complicate but to simplify! Interactive discussion between sections! Respond to common-themed questions received by BOC Leave this session with a greater understanding of the policy to ensure compliance!

In-Sourcing Covered Services University of California is committed to bringing in- house Covered Services to the fullest extent possible November 2019, the UC Board of Regents approved Regents Policy 5402: Generally Prohibiting contracting for Services January 31, 2020 UC and American Federation of State, County and Municipal Employees (AFSCME) ratified their Collective Bargaining Agreement, including Article 5 Contracting Out which incorporates and strengthens the commitments of Policy 5402

Goals of the Policy To bring services in-house whenever possible To ensure that workers receive wages and benefits equivalent to what the University provides to its employees, in the rare instances when contracting out is necessary To provide contractors who have performed services to the University on a long-term and continuous basis the opportunity to become University employees

More Policy - What is a Covered Service? The University will utilize its employees to perform Covered Services to the greatest extent possible before resorting to the use of contractors to provide such services (Article 5) Work customarily performed by bargaining unit employees (SX) units at the University UC ANR s HR Unit reviews policy and makes this determination on our behalf!!! MORE LATER

Questions about the policy?

By definition.. Service: Labor performed for another; useful labor that may or may not produce a tangible commodity. Service includes, but is not limited to: bookstore operation; use of security guards; transportation; computer programming; clothing rental and cleaning; laundry; tests and analysis; film processing; janitorial work; window washing; rubbish and waste removal; and service and repairs to office equipment, transportation equipment, laboratory and medical equipment, and musical instruments. (See also Personal and Professional Services.)

What is BOCs (more detailed) definition?* When a vendor creates, redesigns or produces an item for UC ANR When a vendor requires access to a UC location in order to complete the work that is required When a vendor is required to handle or work on something that is owned by UC Often, the services the vendor provides could be completed by a UC represented position (SX) *Disclaimer: some exceptions apply Some exceptions apply

A Service: Vendor Works On or Creates Something for UC ANR Audio visual, recording, editing (program instructional video) ANR/program logo wear embroidery (t-shirt) Art and graphic design (flyer) Consultants (technical advice) Farming and fishing (harvest crews) Forestry (log removal) Landscaping repairs (sprinkler repair) Legal Services (contract review)

A Service: Vendor Works On or Creates Something for UC ANR, continued Security / fire monitoring (building alarm service) Signage Sign language interpreting (program delivery) Soil and other sample analysis (research) Translation services (program delivery) Transcribing services (program delivery) Website design

A Service: When Vendor requires access to a UC location in order to complete service Building maintenance, plumbing, electrical, HVAC, painters) Catering hired to serve food/drinks during an event Custodial Copier repair / maintenance DJ or performer Farm hands Farriers

A Service: When Vendor is required to handle or work on something that is owned by UC Vehicle maintenance / repairs Computer / phone repairs Farm equipment repairs Laundry services Transportation (e.g., charter bus) Lawnmower/ misc. equipment repair On or off UC ANR premises

A Covered Service: When Vendor function is carried out by a UC represented position Building maintenance (plumbing, HVAC, painters, etc.) Catering / food services Cleaning, custodial, janitorial, housekeeping services Landscaping Reprographics (large and small volume printing, copying, collating, book binding)

Questions about services?

Contracting for an outside service? Step 1 - Complete UC ANR Contracting Out Services Form Submit to Mary Vlandis, UC ANR Employee and Labor Relations (E & LR) E & LR will work to determine that wage and benefit parity is agreed to by supplier/vendor Allow 4-5 days minimum to process Any new agreements need to be routed to E & LR All agreements expiring before 1/31/21 need to be reviewed, with intent to bring in-house

Fiscal Transaction Processing Step 2 Initiator/Requestor submits a Blanket Purchase Order/Agreement with approved form from E & LR Project through 6/30/21 Submit request to the BOC/REC Include form and supporting documents to E & LR Allow 2-3 weeks for processing (routes through UCD Purchasing)

Fiscal Transaction Processing Step 3 PAYMENT - Use p-card or invoice to pay If payment made with p-card, reference original Purchase Agreement # and receipts with p-card detail Or submit invoice to BOC/REC office Continue to use p-card or invoices for payment of service Once PO/Agreement created for the year, no need to submit another Next May, plan to extend Purchasing PO/Agreements for another 12 months if you will still require service

Business Processing Changes for most of us! Services haven t changed, the distinction now becomes what we consider covered service Under 5402 and Article 5, E & LR determines if covered service policy applies P-cards may have been used for payment of services in the past now require add l PO/PA to be set up

Dont wait Project your service needs through next June with routine services/vendors Submit ANR Contracting Out forms to E & LR Submit Purchase Order/Agreement Request to the BOC with approved forms & documentation Conduct your program activities using preferred method of payment as frequently as you need to without worry Done for the year!

Questions about the process?

Whats a Carve Out? E & LR may determine carve outs as applicable when services are: Needed to address an emergency Not available at the location in sufficient quantity or expertise level (despite efforts to hire) Incidental to a leased property Urgent, temporary or occasional Securing equipment, material or services UC ANR location can t feasibly provide (10-mile rule)

Guidance for using UC Campus when nearby to UC ANR Organizational Unit (UCCE, REC, etc.) Guidelines from Policy 5402 apply For outside services, try to use UC staff resources when practical Otherwise, send ANR Contracting Out Form to Employee and Labor Relations for approval Due to nature of UCCE work in remote locations, it could be considered an exception UC ANR E & LR makes this determination for us!

A FEW EXCEPTIONS APPLY! No need to work through Employee and Labor Relations / HR Select services do not require a Purchase Agreement Use of a p-card or Disbursement Voucher is allowable for payment

EXCEPTIONS APPLY Examples of services not requiring a Purchasing Agreement Utilities (landline/cell phone, PG&E, internet, water) Short term rentals < 30 days (e.g., one-day Home Depot equipment rental) Mail deliveries (FedEx, UPS, USPS) Curbside catering services / food pickup Bottled water delivery Self Service photocopying

Taxis (Uber, Lyft, cabs, rideshares) Not considered a service Use travel & entertainment card only Submit expense report in AggieTravel P-cards not allowed

Software/IT Services Not considered a service Follow instructions for purchasing IT-related software and services

Policy Compliance What constitutes UC Policy 5402 non-compliance? No E & LR review and approval prior to date of service Committing to supplier/vendor for their contracted labor prior to approval Using p-card without proper documentation/approvals Hiring casual labor to perform UC ANR work (rescinded in January 2020) Your BOC Business Partner is here to help you understand the policy and work within it!

Oops, I used my p-card before getting Agreement in place Complete ANR Contracting Out Form Complete and send with supporting documents to UC ANR E & LR (receipts, etc) Return approved form and backup documentation to your pcard reviewer Pcard reviewer attaches form and invoice with detail to pcard document in KFS No need to self-report to Robert Fischer or to contact Vartan Vartkessian at UCD Purchasing Unit

Questions about Exceptions and Compliance?

We heard you! (Responses to your FAQ) What services need to be reviewed? Excluding Exception list, all services Error on the safe side to prevent delays We weren t aware of the change - (new, existing contracts/services) Retroactively submit form to UC ANR E & LR Use form as backup for p-card or invoice Process correctly in the future We are allowing some period of time for information to be communicated

We heard you! Cost is unknown to create Purchase Order/ Agreement Annual Purchase Agreement (estimate high but within reason) Time-Sensitive Services (lab analysis, printing jobs, crop harvest, vehicle maintenance) Annual Purchase Agreement - P-card payment OK Plan ahead this first time future months of expenses will be covered by the blanket agreement Source of funds Policy applies, no matter what the funding (e.g. grants)

We heard you! Going to be more difficult to use p-cards Request Purchase Agreement first - p-card payment OK Compliance with policy critical We have to make this work together! 10-Mile Rule Uniqueness of ANRs locations and proximity to campus UC ANR E & LR still needs to review Lab Analysis Is considered a service Request Purchase Agreement first - p-card payment OK

We heard you! Emergency Services Appliance outage, sewage services Exceptions can apply! Safety and welfare a consideration Must be reasonable justification

We Need Your Help! Request that you communicate this message to all in your UC ANR location Slidedeck and recorded session will be posted on the BOC website Plan ahead submit Purchase Requests to the BOC/REC office as early as possible Watch for updates Working on additional information Developing lists for frequently used services or vendors

Resources UC Regents Policy 5402: https://regents.universityofcalifornia.edu/governance/policies/5402.html UC ANR Contracting Out Webpage: https://ucanr.edu/sites/ANRSPU/ELR/Contracting_Out/ Vendor Services Contracting Our Workflow: https://ucanr.edu/sites/ANRSPU/files/326927.pdf ANR Contracting Out Form: https://ucanr.edu/sites/ANRSPU/files/326931.pdf Request for Purchase Order (UCCE) https://ucanr.edu/sites/anrstaff/files/322414.pdf Purchase Request Form (RECS, Statewide and Admin Units): https://ucanr.edu/sites/anrstaff/files/314580.pdf

Resources https://ucdavisit.service- now.com/servicehub?catalog=95d9f84113366b403527bd122244b07d&id= catalog&spa=1 G-46 Employee Eligibility Form https://ucanr.edu/sites/anrstaff/files/334266.pdf G-46 Employee Agreement Form https://ucanr.edu/sites/anrstaff/files/282770.pdf IT Computer Purchase Request https://ucanr.zendesk.com/hc/en- us/requests/new?ticket_form_id=360000108287 UC Davis Software Catalog:

General Questions? Thank you for joining us today