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Procurement Reform ProjectJanuary 14, 2009

Presented by: Christine Warnock, CPPO, CPPB

State Purchasing Agent

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Procurement Reform is a Roadmap Positioning Activity

What is Roadmap? What are Positioning Activities? Procurement reform is a roadmap

positioning activity

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Why Procurement Reform?

The complexity of over 20 procurement regulations from more than 10 state agencies makes efficient and effective public procurement management difficult to achieve.

www.ofm.wa.gov/contracts/resources/quick_reference_guide.pdf

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Purchase of a modern copy machine - pick a purchase authority

RCW 43.19 applies to office equipment (Is a copier just an office machine?)

RCW 43.105 applies to information technology (It is connected to the network so is it a computer printer?)

RCW 43.78 applies to public printing (It prints more than 70 pages a minute so is it public printing?)

RCW 39.29 applies to personal services contracting (The purchase contract charges the state by the printed page so technically we are not buying equipment. Is this a personal services contract or a purchased services contract?)

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Procurement Reform is one of the 12 Roadmap Project Positioning Activities

POLICIES Further Define Enterprise &

Strategic Direction Procurement Reform

PROCESSES Roadmap Governance Common Infrastructure Change Management Program Lessons Learned Program Office

DATA Enterprise Data

Definitions/Chart of Accounts Review (EDD/COA)

Detailed Requirements

SYSTEMS Human Resource

Management System (HRMS) Upgrade

Central Accounting System Interface Inventory (CASII)

Project Oversight

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Procurement Reform Scope

In Scope:Policies for Vendor ManagementPolicies for Procurement Management

Out of Scope:Contract Management Systems (Grants

Contracts Loan Management Project)Accounts Payable Systems (Core

Financials Project)

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Strategies for Procurement Reform Policy Change

8 Strategies have been developed that could be authorized by agency directors and governing boards.

Strategies that could be authorized by Washington State Administrative Code (WAC) have not been developed yet.

Strategies that could be authorized by the Revised Code of Washington (RCW) have not been developed yet.

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8 Procurement Reform Strategies

Vendor Management 1. Standardized vendor

registration Implemented 11/1/08

2. Standardized notification of bidding opportunities – Implemented 11/1/08

3. Standardized vendor performance management

Standardized Coding4. Standardized codes to better

understand statewide spend data

Procurement Management5. Common methodology to

business analysis and process

6. Enterprise alignment of procurement standards and practices

7. Management accountability for enterprise procurement practices

8. Education and training requirements aligned with duties and policy requirements

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Implementation Takes Governance

Procurement Reform Executive Sponsors

Linda Bremer, GA DirectorHoward Cox, Assistant Director

Procurement Reform

Steering Committee

Policy ManagerServando Patlan

State Procurement Agent

Christine Warnock

Implementation Team

Procurement Reform

Work Team

Central Service Customer Advisory

Group

Project DirectorServando Patlan

Roadmap Project Executive Sponsors

Gary Robinson, DIS DirectorWolfgang Opitz, OFM, AD

Roadmap Project Director

Sadie Hawkins

Roadmap Project Coordinator

Kathy Rosmond

Roadmap Advisory Group Servando Patlan, Member

Procurement Reform Status Reports

Roadmap Project Steering Committee

Linda Bremer, Member

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Enterprise means you

The heart of procurement reform is the Central Services Customer Advisory Group (CSCAG).

A membership representing 28 state agencies provides policy and implementation guidance to the Procurement Reform Work Team.

The CSCAG retains the right to provide the Procurement Reform Steering Committee with alternative policy and implementation proposals.

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Subject Matter Experts

The Procurement Reform Work Team are the hands of the Procurement Reform Project.

Servando Patlan for GABecci Riley for OFMMarie Kirk for DISMomi Friedlander for the State Printer

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Procurement Reform Steering Committee

The Steering Committee are the feet of the Procurement Reform Project.

They are responsible for carrying the procurement reform work to agency leadership and for providing policy and implementation guidance to the Procurement Reform Work Team.

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Executive Sponsors

The Executive Sponsors are the head of the Procurement Reform Project.

They are responsible for decisions to authorize policy and implementation proposals; they are also responsible for directing resources for the project and for coordinating the Procurement Reform Project with the Roadmap Project. The Procurement Reform Executive Sponsors are GA Director Linda Bremer and Assistant Director Howard Cox.

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Policy Change Pre-requisites

Opportunity AssessmentImpact AssessmentStakeholders help validate the

assessmentsImplementation PlanStakeholders help validate the

implementation plan

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Anything happen yet?

First Procurement Reform Policy Change effective November 1, 2008

Policy: “All state agencies must at a minimum use a common approach to register and notify vendors of business opportunities with the state of Washington.”

Implementation: For Vendor Notification, this policy shall apply when Washington State rules require advertising (e.g. notice in a newspaper, DIS Listserv, WEBS, etc.) of procurements for goods and or services for GA >$46,200, for DIS >$249,999, for OFM >$19,999, and Printer purchasing authorities (TBD). For procurements that do not require advertising, application of this policy is encouraged but not required. For Vendor Registration, all Vendors are encouraged to register in the common registration system. That common approach has been identified as the Washington State Business Solution System known as WEBS and available at http://www.ga.wa.gov/Purchase/index.html.

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Anything else happen?

April 8, 2008 The Roadmap Executive Sponsors approved the National Institute of Government Purchasing (NIGP) Commodity Code System as the state standard for commodity/service codes

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Commodity Code Implementation Plan for FY 2009

Early adopters OFM grants contracts loan management system Printer management information system UW asset management system Administrator for the Courts asset management system DOC MRO tracking system Seattle Schools asset tracking system DIS

Early adopters lessons learnedPilot Project Design & FundingPilot Project lessons learnedStatewide implementation guide

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References

Roadmap Project Website:

http://www.ofm.wa.gov/roadmap/

Procurement Reform Project Website:

http://www.ga.wa.gov/Purchase/procurementreform.htm

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Procurement Reform Questions

Servando Patlan, Project Director

Department of General Administration

E-mail: Spatlan@ga.wa.gov

Phone: 360-902-7449