Procurement Reform Project January 14, 2009

1. Presented by: Christine Warnock, CPPO, CPPB State Purchasing Agent Procurement Reform ProjectJanuary 14, 2009

2. Procurement Reform is a Roadmap Positioning Activity • What is Roadmap? • What are Positioning Activities? • Procurement reform is a roadmap positioning activity

3. 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

4. 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?)

5. 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 Procurement Reform is one of the 12 Roadmap Project Positioning Activities

6. Procurement Reform Scope In Scope: • Policies for Vendor Management • Policies for Procurement Management Out of Scope: • Contract Management Systems (Grants Contracts Loan Management Project) • Accounts Payable Systems (Core Financials Project)

7. 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.

8. Vendor Management Standardized vendor registration Implemented 11/1/08 2. Standardized notification of bidding opportunities – Implemented 11/1/08 3. Standardized vendor performance management Standardized Coding 4. Standardized codes to better understand statewide spend data Procurement Management 5. 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 8 Procurement Reform Strategies

9. Implementation Takes Governance

10. 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.

11. Subject Matter Experts • The Procurement Reform Work Team are the hands of the Procurement Reform Project. • Servando Patlan for GA • Becci Riley for OFM • Marie Kirk for DIS • Momi Friedlander for the State Printer

12. 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.

13. 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.

14. Policy Change Pre-requisites • Opportunity Assessment • Impact Assessment • Stakeholders help validate the assessments • Implementation Plan • Stakeholders help validate the implementation plan

15. 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.

16. 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

17. 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 learned • Pilot Project Design & Funding • Pilot Project lessons learned • Statewide implementation guide

18. References • Roadmap Project Website: http://www.ofm.wa.gov/roadmap/ • Procurement Reform Project Website: http://www.ga.wa.gov/Purchase/procurementreform.htm

19. Procurement Reform Questions Servando Patlan, Project Director Department of General Administration E-mail: Spatlan@ga.wa.gov Phone: 360-902-7449