Agenda

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

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• 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 Chicagos transportation infrastructure,
  enabling the safe and efficient movement 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 and timely manner of which the
  finished product meets or exceeds the industry
  standards of practice and workmanship.
• Rebekah Scheinfeld
• 
  
  Commissioner

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Professional Services Voucher Payment Process
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• 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

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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.

• Audit

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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.

• CDOT changes

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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
Divisions performance to serve the needs of
the consultants through consultants input and
feedback. To address concerns and answer
questions.
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Benefit to CDOT and Consultant

• 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.

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CDOT Changes in Invoice Processing Procedures

• Unified Repository/Tracking
• Time and date stamped
• Cumulative invoices
• Separate agreements
• Invoices under 500.00
• - Payment Voucher Requirements

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• 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.

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• 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.

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

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• 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

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• 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.

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Payment Voucher Requirements

• 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.

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The voucher must have the following information

• Companys 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

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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.
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Sample of Invoice Summary
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Sample of Invoice Detail


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Labor Sheet
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Please do not forget

• Payroll Data (in time sheet)
• Direct Costs (copy of receipts)
• Work by Subcontractors-Consultants
• (Verified by Prime)
• .

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• 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/media
  lib/intranet_media_library/misc/policies/travel.Pa
  r.68855.File.tmp/TravelPolicy08.pdf

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Common Causes of Payment Delays

• Insufficient documentation
• Incorrect calculations
• Incorrect contract number
• Incorrect project number or multiple project s
• Incorrect release number
• Incorrect address

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TEAM EFFORT

• 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 Commissioners Office
• Approve invoice and return in timely manner

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Reminder
Consultants must submit all monthly
invoices to Deputy Commissioner, Cheiko
High Chicago Department of Transportation Record
s and Estimates Section 30 N. LaSalle, Suite
600 Chicago, IL 60602
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Key Contact Personnel
Cheiko High, Deputy Commissioner of
Administration 312.744.3133 E-mail Director of
Administration Cheryl Scott-Donegan 312.744.3910
E-mailCScott_at_cityofchicago.org Mohammed
Pakshir 312.744.3561 E-Mail mpakshir_at_cityofchic
ago.org
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Any Questions?