Department of Administration Division of Purchasing June 2014

1. Strengthening Contract Management in Idaho Department of Administration Division of Purchasing June 2014

2. About the Division of Purchasing (DOP)

3. What does the State Buy

4. What does the State Buy $2,724,529,750 (46 contracts)

5. OPE Focus – January, 2013 • Strengthening Contract Management in Idaho • Failed partnerships between state agencies and vendors

6. OPE – Recommendations Training is key to good contract management: • Develop and incorporate best practice checklists into training materials • Require all agency staff involved in all aspects of the contracting process be adequately prepared before making contracting decisions. • Create a full-time training position

7. OPE – Recommendations High dollar/high risk contracts and other recommendations: • DOP should consider creating positions to perform statewide monitoring for high dollar or high risk contracts (DOP rejected this idea) • Formalize contract monitoring role in Administrative Code • Work with the AG’s Office to identify opportunities to make Idaho Code and Administrative Code more accessible and user-friendly for agencies

8. OPE – Recommendations For legislative consideration: • Mandate all state agencies incorporate contract management best practice checklists • Require all state agencies be subject to monitoring high risk or high dollar contracts according to DOP requirements

9. DOP Administrative Rule Changes • General clean up: definitions, requirements of submissions (.011) • Agency contact for each requisition- must have procurement training (042.01) • All solicitation to flow thru e-procurement system unless exempted (.042.04) • Vendor communication prohibited from solicitation thru award (.040.04) • Negotiations – if all responsive offers exceed available funds, modify property requirements (.084.01d) • All awarded contracts assigned to an individual (125.04) • Contract renewals – not prior to 6 months before expiration without Administrator approval (125.02)

10. High Dollar Service Contract Life Cycle Yellow = rule change

11. DOP Administrative Rule Changes High Dollar Services Contracts > $5 million– New Section Contract solicitation and award: • 3rd party validation – project planning according to best practices (.041.01) • Oversight board – review 3rd party report – approval of solicitation document (041.02) • Procurement professional - solicitation release, pre-award agreements (041.05/.06) • Project understanding and clarification – Vendor/state after intent to award but prior to final award (.041.04) • Vendor project reporting over contract life (.041.03)

12. DOP Administrative Rule Changes High Dollar Services Contracts > $5 million – New Section Contract Administration: • Project manager - PMI certified or approved by administrator – can be 3rd party – training established by the administrator- keep DOP buyer informed of reports/progress (125.03a) • Project oversight board –established by the agency, subject to the approval of the administrator – supervise project manager, review of project reports of 3rd party project monitor 125.03b) • 3rd party project validation reports to oversight board (125.03c) • Contract administration agreement – roles/responsibilities between the agency and the Division over contract administration and management (041.06)