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Procurement Reform & Training Overview

2013 DES Training Conference & Trade Show

Presented by Roselyn Marcus,

Lori McCleary and Melanie Buechel

October 30, 2013

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Presenters:• Roselyn Marcus

– Assistant Director Legal &Legislative Affairs, OFM

• Lori McCleary– Procurement Reform Project Manager, DES

• Melanie Buechel– Senior Contracts Staff Consultant, DES

Panel Presentation

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• Procurement Reform Overview

• Initiatives under procurement reform

• Training/Certification Program

• Questions

Topics

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• 2SHB 2452 - Signed March 30, 2012• Created Chapter 39.26 RCW• Governs all state procurements for goods

and services.• Went into effect January 1, 2013

Procurement Reform

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• Promote open competition• Promote transparency• Centralize oversight • Centralize location of contract data in a

searchable manner• Encourage/facilitate participation by

Washington small businesses• Increase accountability

RCW 39.26.005

Intent of Procurement Reform

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• Department of Enterprise Services is required to develop policies for state contracting activities: RCW 39.26.080, 39.26.090, 39.26.180.

• Department of Enterprise Services is authorized to establish rules for state contracting activities: 39.26.090(11), 39.26.200.

Centralize Oversight

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• The procedures and requirements must:

Guiding Principles

Be FAIR Be COMPETITIVE

Be able to obtain FAIR and REASONABLE PRICES

Be ACCOUNTABLE & provide HIGH ETHICAL STANDARDS

Be TRANSPARENT Be COST EFFICIENT & EFFECTIVE

Be TIMELY Be FLEXIBLE

Be SIMPLIFIED Be INNOVATIVE

PROMOTE SMALL BUSINESSES SEEK BEST VALUE

NOT OVER REGULATE EMPLOY BEST PRACTICES

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• Delegation of Authority

– Risk Assessment Pilot

• Debarment Rules and Procedures

• Transparency requirements under RCW 39.36.210

• Small Business Initiatives, including development of a Model Plan and Technical Assistance Reporting

• Sole Source, Direct Buys and Emergency Procurement

Initiatives

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• Cooperative Purchasing

• eBid and eSignature

• Procurement Manual

• Procurement Credential Curriculum and Training

• Models, Policies and Best Practices addressing:

– Complaints & Protests, Bonding, Convenience Contracts and Ethics in Procurement

Initiatives

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• The director has the authority to delegate to agencies authority to purchase goods and services.

• The authority must specify restrictions as to dollar amount or to

specific types of goods and services.

• The authorization must be based on a risk assessment process developed by the department.

• The director may not delegate the authority if the agency is not in substantial compliance with overall procurement policies as established by the director.

RCW 39.26.090(5)

Delegation of Authority

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Agency Size Commodities Services Information Technology

*Micro (Less than 50 FTEs)

$50,000 $50,000 $50,000

*Small (50 – 200 FTEs)

$50,000 $250,000 $250,000

Medium (201 – 500 FTEs)

$50,000 $500,000 $500,000

Large (more than 500 FTEs)

$50,000 $1 million $1 million

Delegation of Authority Policy

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• November 2012 –           Scope the pilot, draft a project charter, and finalize the January 2013 risk matrix/risk factors and develop parameters for delegation and oversight as related to the assessed level of risk

• January 2013 -                Conduct the assessments and reach agreement on February 2013 agency risk level, delegation and oversight

• March 2013                     DES & pilot agencies start operating with their delegation and oversight authorities

• March 2013                     Monthly meetings between DES and pilot agencies to assess the pilot

• October 2013                  DES & pilot agencies review project success factors and challenges and make recommended changes.

• December 2013              Prepare and issue final report on pilot and the policy on the risk assessment, delegation and oversight.  Provide

a schedule for rolling this out to all state agencies. • January 2014                  Begin implementation to all state agencies in accordance

with the schedule.

Pilot Timeline

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Large Agencies Medium Agencies Small Agencies Higher Education

Department of Social & Health Services

Department of Health

State Investment Board

University of Washington

Department of Transportation

Department of Early Learning

Parks and Recreation

Evergreen State College

Department of Enterprise Services

Health Care Authority

State Board for Community & Tech Colleges

Olympic Community College

Labor & Industries OMWBE

Pilot Participants

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• Authority granted in RCW 39.26.200

• Rules adopted in chapter 200-305 WAC

• Internal Administrative Procedure Training Completed

Debarment

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• RCW 39.26.210 requires annual reporting to DES and annual posting by DES

• 23 Agencies participated in the Pilot which is being closed out

• 20 Agencies opted to report data for the October 1, 2013 deadline

• Top challenges noted by Pilot agencies so far

• Next reporting period is September 1, 2014. Training will be available prior to the deadline

• The opportunity to opt in remains open

Agency Contract Reporting

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• IT Project to modify WEBS

• Coordination for report collaboration gearing up

• Increased direct buy limit for small business purchases

• Protest bond relief

• Creating a business diversity outreach unit

• Development of inclusion plan strategy

Small Business Initiatives

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• E-signature authorized for contracts

• Use of information technology tools in the procurement

process

Electronic World

January 1, 2013

Chapter 39.26.110 RCW – Training

• DES must provide either training or certification programs, or both, to ensure consistency in procurement practices for employees authorized to perform procurement functions.

• This applies to the procurement of both goods and services.

Training Certification Program

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Implementation Timelines and Requirements

July 1, 2013 – Agencies must require employees responsible for developing, executing or managing procurements or contracts to complete DES-approved training.

July 1, 2015 – No agency employee may execute or manage contracts unless they have met DES training requirements.

Training Certification Program

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Proposed Training ProgramCertification Program including continuing

education requirements and recertificationWashington Basic Certification

• For all employees who procure goods or services

Washington Advanced Certification (possible future development)

Trainer Certification

Training Certification Program

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Certificate ProgramsSmall Acquisition Contract ManagementExecutive ManagementProcurement Evaluation Specialized/High-Risk Acquisitions (example-

IT)Training for Auditors, Financial Staff, others

Assessment and Grandfathering Process

Training Certification Program

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Program Development-Where are we now?

• Formed a Training Advisory Group (TAG)

• Met with representative from State of Oregon

• Developed a Charter

• Conducting a procurement for a Training Consultant

• First solicitation release August 21 – no bids

• Re-released on September 24

Training Certification Program

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Current Procurement Schedule

Bids Due: October 16 – 2 bids received

Evaluations: October 17 – 22

Oral Interviews and Reference Checks: October 23 – 24

Announce Apparent Successful Bidder: October 25

Debrief: October 31

Tentative Start Date: November 18

One year contract with renewal up to 12 months

Training Certification Program

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Maintain and Sustain Training Program

DES Personnel Services Division (PSD) – Learning Delivery and program management – schedule classes, instructors, track training credits and pre-requisites, track continuing education requirements and recertification

Learning Management System (LMS) – registration, tracking

TAG – Will serve as an advisory group to determine program needs, future curriculum, etc.

Training Certification Program

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Current and Planned Training

– Sole Source, Direct Buy and Emergency Procurements and Filing Requirements (offered at least every other month)

– Contract Reporting

– Procurement Training (coming in November)

Training Certification Program

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DES has issued the following policies:

• Delegation of Authority (# DES-090-00)

• Sole Source Contracts (# DES-140-00)

• Direct Buy (# DES-125-03)

• Emergency Procurements/Purchases (# DES-130-00)

• Complaints and Protests (# DES-170-00)

• Agency Contract Reporting (# DES-210-01)

Models, Policies & Best Practices

• Protest Bonds Policy (in Draft)• E-signature• Competitive Procurement Models and Best Practices• Complaint and Protest Model• Training Policy• Convenience Contracts Models and Best Practices• More to be identified…

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Models, Policies and Best PracticesIn Process

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• New project manager on board Sept 2013• Applying project methodology and structure• Developing an over-arching charter, project

plan, communication plan and *work breakdown structure

• Existing sub-projects will also be chartered• Reviewing reform legislation• *Reach out to re-establish and strengthen

partnerships

Current Project Status

Procurement Reform Questions:

desprocurementreform@des.wa.gov

Procurement Reform Website: http://des.wa.gov/about/pi/ProcurementReform/Pages/default.aspx

Roselyn Marcus (360) 902-0434 Lori McCleary (360) 407-8217roselyn.marcus@ofm.wa.gov lori.mccleary@des.wa.gov

Farrell Presnell (360) 407-8820 Melanie Buechel (360) 407-8156farrell.presnell@des.wa.gov melanie.buechel@des.wa.gov

Questions