Procedure and Business Rule Publication

Date:          July 31, 2024
Subject:     Procedure and Business Rule Publication
Attention:  SSC Management Council Members; VPs of Finance; Business Managers; All eVA End Users; CHROs
Dear Colleges,
We are pleased to share newly published Shared Services Center (SSC) Procurement procedures, business rules, and a Service Line Agreement (SLA) update:
Of particular interest in this round of publications are the Ethics Business Rules for Conflict-of-Interest changes. 
  • Change of threshold for employees acting as a contractor from $0 to $5,000, annually
  • Added a waiting period of 26 weeks from separation for former employees that would like to act as a contractor without a threshold
Detailed Background and Rules:
To provide some background, the Department of General Services (DGS) requires agencies to maintain “internal policies” related to the Procurement of Goods and Services. Since the inception of the Shared Services Center (SSC), the VCCS “internal policies” have been captured in our Business Rules. During this time, the SSC has received numerous inquiries related to employees or former employees who desire to sell goods and/or services to the VCCS.  
In our efforts to maintain our "internal policies" and clarify Virginia's rules and regulations related to Conflicts of Interest, three business rules have been adopted.  Please note, these business rules impact the Procurement teams, Business Officers, and Human Resources teams.  These three new business rules are documented in the table below and were approved by the SSC Management Council (consisting of representatives from every College and the System Office) on July 10, 2024.
Regarding the business rules below, please note:
  • If a VCCS employee (currently employed by any VCCS sub-agency), acting as a contractor, chooses to 'sell' goods or services to any of our VCCS sub-agencies, the employee has the responsibility and accountability for tracking the spending and staying within the threshold limits detailed below.
  • If a former VCCS employee (person who has recently separated from any VCCS sub-agency), acting as a contractor, chooses to 'sell' goods or services to any of our VCCS sub-agencies, the employee has the responsibility and accountability for tracking the duration of separation threshold (as indicated below) before selling to the VCCS may commence.
  • While our practice has always been for employees to recuse themselves from participation in a procurement where they have a conflict of interest, the business rule below reiterates this internal policy.
Please also note that the existing VPPA § 2.2-4370. Disclosure of subsequent employment (in the table below) states that it is the employee's responsibility to disclose other employment or pecuniary interest.
     Procure to Pay - Ethics: Conflicts of Interest
     1
While there are various situations that give rise to a Conflict of Interest, generally the Conflict-of-Interest threshold begins at $5,000 total per calendar year (Ethics Council)*.  The management and disclosures of Conflicts of Interest are the responsibility of the VCCS employee.  

Within the Commonwealth of Virginia, Procurement law stipulates in the Conflicts of Interest Act (VPPA § 2.2-3106):

Definitions: 

Immediate Family: Spouse and anyone who both lives in your home and is a dependent on you 

Personal Interest: A financial benefit or liability accruing to an employee or a member of the employee's immediate family 

"No officer or employee of any governmental agency of state government or Eastern Virginia Medical School shall have a personal interest in a contract with the governmental agency of which he is an officer or employee, other than his own contract of employment." 

No VCCS Employee shall provide goods or services as vendor to any other VCCS agency, including their own agency of employ above the Conflict-of-Interest threshold. The responsibility for monitoring this threshold and disclosing the vendor employment or ownership is that of the employee. 

§ 2.2-4370. Disclosure of subsequent employment.

"No public employee or former public employee having official responsibility for procurement transactions shall accept employment with any bidder, offeror or contractor with whom the employee or former employee dealt in an official capacity concerning procurement transactions for a period of one year from the cessation of employment by the public body unless the employee or former employee provides written notification to the public body, or a public official if designated by the public body, or both, prior to commencement of employment by that bidder, offeror or contractor. "

*Any given VCCS sub-agency may maintain a lower threshold and as such that threshold shall be in effect for that sub-agency
     2
Consideration for former employees to provide goods or services as a vendor / "contractor" shall be in accordance with the Affordable Care Act definitions as guided by DHRM as these transactions are viewed by the IRS as such. Therefore, former employees (resigned or retired) shall have 26 weeks of separation before acting in the capacity of a Contractor for any VCCS agency, including their former agency. 

Within the Federal Affordable Care Act, the law stipulates the treatment of new and on-going employees (Outlined in DHRM ACA Guidelines)

Definitions:

New Employees: Persons who are reasonably expected to work "full-time" (30 hours or more per week on average). Those who have been employed at your agency previously and re-hired at your agency may be considered new or on-going depending upon the length of their separations.

On-Going Employees: An employee who has been employed for at least one complete "standard measurement period" and has not had the required separation as defined in ACA regulations. Employees, including retirees, for all classifications (classified, university, faculty) with a separation period less than 26 weeks in higher education are considered on-going employees.

Please note: Disclosure of employment status and separation period is the responsibility of the former employee.
     3
Per the Code of Virginia § 2.2-3112, § 2.2-4369 and § 2.2-4373, no employee, including the procurement lead, shall participate in a procurement transaction when they have a personal interest in that transaction. This includes, but is not limited to the following instances:

·                  Selection of a vendor through any non-competitive procurement method, where the employee has a personal interest in the selected vendor

·                  Serving on an evaluation committee, or a procurement lead, where the employee has a personal interest in a vendor that is likely to participate in the procurement

Disclosing information to a potential vendor through competitive bidding, competition negotiation process or a non-competitive method where the employee has a personal interest in the vendor.

Unsealed Bid

Formal competition is not generally practicable for small purchases, and is therefore not required below certain thresholds, which may instead proceed using informal competition. Small purchases are generally set-aside for micro businesses or for small businesses.

Unsealed bidding is the preferred sourcing tool to solicit bids and quotes for procurements that require informal competition and that can be awarded on the basis of price:

  • Non-technology goods and nonprofessional services over $10,000 - up to and including $100,000
  • Software over $30,000 - up to and including $100,000

Solicitation Intake

The Shared Services Center Procurement Intake Process serves as the strategic entry point for VCCS college procurements. It orchestrates the initiation of solicitations through Strategic Sourcing or Contract Management. 

 

The following business rules have been published:

Introduction (1) Objective

  • Sets out intent of document to clearly articulate the VCCS Business Rules that apply to the VCCS Procure-to-Pay function.

Introduction (2) Annex 1-B - Agency Head Policy Statement

  • Explanation of VCCS Shared Services Center's basic functions and authorities.

Procure -to-Pay  - Ethics: Conflict of Interest

  • Details noted in Conflicts of Interest section of this email

Surplus Firearms

  • VCCS will adopt and follow the procedures developed by DGS/OSPM and documented in the APSPM section 12.13 for disposing of state-owned surplus firearms.

Use of eVA 

  • Details agency responsibilities related to the use of eVA, the Department of General Services' central electronic procurement system.

1: Re-delegation of purchasing authority

2: Requisition Approval Flow

3: How to Incorporate Terms and Conditions

4: Interface with Finance and Accounting

5: Record Keeping

6: Encumbrance of Funds

7: Receiving (Central and/or decentralized)

8: Interface with internal automated systems

9: Conducting compliance audits/reviews of purchase transactions made by or on behalf of agency employees

10: A contingency plan in the event the eVA system is temporarily not available

11: Sourcing & Contracting (VPPA Language from 2021)

12: VBO for Posting Solicitations and Awards

Solicitation Intake

Unsealed Bid

Procedures and business rules are published on the SSC website after they are approved by the respective governance councils. After initial publication, procedures are reviewed annually to ensure they are current and correct. More frequent updates will also be made when changes are required. 

We appreciate your continued partnership and contributions toward reaching our L2 goals! Please reach out if you need assistance.

Contact SSC Customer Engagement at 877-340-5577 or help@ssc.vccs.edu if you have any questions.   

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