DART Procurement MAX Program Adam Nicholas Assistant Vice President, Procurement June 20, 2017
American Revolution and Civil War Commissary general (.5%) and Commissioned Purchasing Agents (2%) Sellers Market – Competition between Feds, States and British (Brits had the gold) Excessive Profits and Fraud Spoiled food, shoddy uniforms, defective weapons 6/20/2017
American Civil War Patronage and cronyism Chaos and corruption Lame horses and leaky boats “Shoddy” uniforms Dangerous weapons Union Army – 17,000 to 500,000 6/20/2017
General Montgomery Meigs Lincoln - Quartermaster General Tirelessly fought fraud and corruption Efficient logistical system Innovative solutions Beginning of modern business management in government Built hospitals and buried the dead 6/20/2017
Procurement Laws and Regulations DART Procurement Regulations (DPR) 345 Pages Texas Transportation Code Policies and Resolutions Board FTA Circ. 4220.1F 155 Pages 7 PROs 38 CAPs Internal Procedures & Directives . . ABA Model Procurement Code Best Practices FAR 6/20/2017
Public Procurement Objectives Ensure public confidence Ensure fair and equitable treatment Foster effective full and open competition Provide increased savings Maximize purchasing power Satisfy agency requirements Courtesy, impartiality, and integrity Strive for efficiency and effectiveness 6/20/2017
Annual Spend (FY2016) 143 contracts awarded - $503 million 258 blanket purchase orders - $7.5 million 3,945 purchase orders - $14.6 million Credit card transactions - $6.2 million 417 credit card users 423 active contracts - $1.25 Billion 32% of DART spend to MWBE’s 44% of Contracts awarded to MWBE’s 6/20/2017
What We Buy Buses, locomotives, LRV’s and streetcars Employee Benefits and Services (insurance, uniforms) Building & property services (maintenance, cleaning, lawn services) Maintenance parts and supplies Support Services (marketing, planning) Construction and design services Information technology Utilities and fuel 6/20/2017
Procurement Methods Corporate Card and Small Purchases Competitive Bids and Proposals Cooperative Buys Professional Services Emergency and Sole Source DB, PPP, CMGC Pilot and Demonstration Projects 6/20/2017
DART Procurement Goals Ahead of schedule and under budget Implement SCM processes Move spend to contracts & reduce transactions Spend analytics Continuous improvement/reduce processing time 5 Star Customer Service Supplier performance measurement system Enhance dashboard and measures Employee development 6/20/2017
Questions