Purchasing: Hot Topics - Washington State Board for Community

Report
Purchasing: Hot Topics
ROD RAMER
COMMUNITY COLLEGES OF SPOKANE
BAR
MAY 29, 2014
COLUMBIA BASIN COLLEGE
Purchasing: Hot Topics
 Three strategic initiatives from DES:
1)
Mandatory training
2) “Risk Assessment” in purchasing functions
3)
Reporting of contracts to DES
Purchasing: Hot Topics
 1) Mandatory Training

RCW 39.26.110 – Training:

(3) Beginning July 1, 2013, state agencies must require agency
employees responsible for developing, executing, or managing
procurements or contracts, or both, to complete departmentapproved training or certification programs, or both. Beginning July 1, 2015, no agency employee may execute or
manage contracts unless the employee has met the training or
certification requirements or both as set by the department...
Purchasing: Hot Topics
 1) Mandatory Training

DES contracted with a consultant named “Public Knowledge
LLC” to develop a training plan, curriculum and certification
process on Nov 18, 2013.

There are 20 members on a Training Advisory Committee
(Green River, Evergreen, EWU et al.)
Purchasing: Hot Topics
 1) Mandatory Training

Nothing published or released yet.

“Interim” DES project manager: Keith Kawamura
360-407-9257 [email protected]
Purchasing: Hot Topics
 1) Mandatory Training

Rumors:

1. May be patterned after Oregon model (but not the Oregon
exemption for its higher education  ):
A). Foundation training for dedicated purchasing personnel
 B). Executive or oversight training for those who “manage”
 C). Commodity training/specializations such as major IT

Purchasing: Hot Topics
 1) Mandatory Training

Rumors continued:

Topics in Procurement 101 (167 PowerPoint slides 4/30/14)

Procurement Reform
Delegated Authority
Competitive Procurement
RFQ, RFQQ, RFP
Emergency Procurement
Scope of Work





Exceptions, Exemptions & Options
Direct Buy
Competitive process
Sole Source
Risk Management
Ethics in Public Contracting
Purchasing: Hot Topics
 1) Mandatory Training

Rumors continued:

Evolve into certification program in the future

Delivered thru Dept of Personnel “Learning Management
System” to “…minimize additional costs associated with
training requirements.” (RCW 39.26.110)
Purchasing: Hot Topics
 1) Mandatory Training

DES Training Project website:

http://www.des.wa.gov/about/pi/ProcurementReform/Pages/
PRTraining.aspx
Purchasing: Hot Topics
 2) Risk Assessment

RCW 39.26.090 (5) requires that DES develops a risk
assessment for each agency before delegating any procurement
authority.

Higher Ed is specifically defined as an “agency” in RCW 39.26

A pilot program began in November 2012 (UW, Evergreen,
Olympic): developed assessment tool.
Purchasing: Hot Topics
 2) Risk Assessment
 How does your agency manage its procurement
function(s)? Responses should include:
a) A description of how your agency delegates signature
authority internally.
b) Whether your agency centrally manages its procurement
functions, or if decentralized, a description of how the
authority is distributed.
c) How your agency engages and manages relationships
with stakeholders, and (d) the number of procurement
staff who conduct procurements on behalf of your agency
Purchasing: Hot Topics
 2) Risk Assessment

What procedures does your agency use to manage requests for
procurements of goods or services? Your response should
include a description of the process used, including review,
follow-up, etc.
Purchasing: Hot Topics
 2) Risk Assessment
 What outreach, inclusion or other activities does
your agency do to ensure its procurement strategies
engage and support small, veteran-owned and
diverse businesses?
 Describe the process used, outreach events or
activities, solicitation language, supplier diversity
plan, inclusion plan, diversity goals, etc.
Purchasing: Hot Topics
 2) Risk Assessment
 How does your agency forecast its future procurement
needs? Your response should include:
a) A description of how spend data is captured, reviewed,
monitored and used in the procurement forecasting
process.
b) How your agency confirms that its procurements
obtain best value for the State.
c) How the agency anticipates client needs and identifies
repetitive procurements.
Purchasing: Hot Topics
 2) Risk Assessment
Change in Procurement Reform project leadership
(Ro Marcus departure, Servando Patlan position)
Higher Ed already has its procurement authority in RCW
28B.10.029; what can we benefit from the review?
It appears DES relents and has no further intent for
Higher Ed participation
Purchasing: Hot Topics
 2) Risk Assessment
DES Risk Assessment website:
http://www.des.wa.gov/about/pi/ProcurementRefor
m/Pages/PR_RiskAssessment.aspx
Purchasing: Hot Topics
 3) Contract Reporting
RCW 39.26.210 (1)
“Agencies must annually submit to the department a list of all
contracts that the agency has entered into or renewed.
‘Contracts,’ for the purposes of this section, does not include
purchase orders. The department must maintain a publicly
available list of all contracts entered into by agencies during each
fiscal year…”
Purchasing: Hot Topics
 3) Contract Reporting
DES Policy 210-01 requires reporting of any
“contract…that has a statement of work or exceeds the
Direct Buy limit”
Exemptions: purchase orders, direct buy contracts
unless they include a statement of work, public works,
non-fiscal agreements, interagency agreements, grant
agreements and loan agreements.
Purchasing: Hot Topics
 3) Contract Reporting
NOTE: DES is including revenue
contracts in addition to expenditure
contracts.
Purchasing: Hot Topics
 3) Contract Reporting
In training classes, DES states it wants reported
POs used in lieu of contracts, such as a $50 guest
speaker in a class. For them, the issue is a whether
there is a “statement of work.”
Purchasing: Hot Topics
 3) Contract Reporting
E-mail with Grays Harbor (shared with PAC 4/14/14):
“Statement of work:


Used for longer term agreements where performance is determined
via review and approval using criteria that can only be assessed using
knowledge, skills and abilities and professional judgment gained
over time.
Provides clear direction to projects and project managers if they are
to succeed. Statement of work (SOW) sets the rules for the project
once the key stakeholders formally agree to its content. SOW lists the
goals, constraints, success criteria, and management guidelines. It
clarifies responsibilities and actions of project stakeholders in a
relationship.”
Purchasing: Hot Topics
 3) Contract Reporting
What is Spokane going to report (until further
word)?
A) Anything that is signed by two parties that has
financial terms, either revenue or expense;
B) All POs for object codes that include services:
ER, Cx, NB
Purchasing: Hot Topics
 3) Contract Reporting
DES Contract Reporting website:
http://www.des.wa.gov/services/ContractingPurc
hasing/PoliciesTraining/Pages/ContractsTranspar
ency.aspx
Purchasing: Hot Topics
Questions?
Comments?
Criticisms?
Corrections?
Purchasing: Hot Topics
Rod Ramer
CCS Purchasing Manager
(509) 434-5325
[email protected]

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