1 DHHS Contract Process Reform Symposium Presentation to Symposium Attendees September 24, 2014

2 DHHS Contract Process – Present o DHHS contracting and procurement has improved significantly under Commissioner Mayhew’s leadership. o The current reform effort seeks to build upon the substantial reforms implemented since o Key areas to target: o Process: Ensure structure, uniformity and efficiency in the Department’s procurement and contracting process. o Language / Content: Bolster the content and language to make certain that contracts include clearly defined deliverables, performance expectations and payment terms.

3 DHHS Contract Process – Goals We initiated reforms in September—this process remains ongoing. Fundamental Goals o Ensure that all DHHS contracts contain measurable outcomes, meet clear performance targets and provide value to the people of Maine. o Simplify and standardize the Department’s contracting process, such that drafting contracts is as straightforward as possible for DHHS staff. o Ensure that key parties—with different areas of expertise—have the opportunity to review and sign off on all DHHS contracts. o Create a predictable process that operates with a defined structure on an established timeline.

4 DHHS Contract Process – Future o Reforms are designed to encourage upfront thinking; to boost communication in the process; and to add clarity around when steps should occur. o Pre-Approval Template: modeled on the Grant Pre-Approval Template. o Checklists: Contract initiation; Contract; RFP. o Pilot / Soft Rollout: Announced changes August 14 SMT; implemented today; continue to seek feedback throughout the fall. o Personnel Resources: Additions to DCM and Program. o Technology: Workflow Tool

5 Key Considerations o Not a radical change: The process should look similar—just more clear-cut, structured and organized. o Seeking feedback: In August; throughout the fall. Consider the implementation process as an extended feedback session. o One Department—fostering partnership, teamwork: Everyone is working hard, but functional contracting and procurement processes must be a true partnership and team effort. o DCM personnel realignment by program office. o Increased staff support for DCM / Program contract administrators.

6 Driving Improvement: Contracting and the Evolution of DHHS Service Delivery o Continuous Quality Improvement: DHHS contracting is a burning platform. We have made improvements, but we must continue to forge positive change. o Today, DHHS contractors deliver many of the services that the Department provides and about which we are passionate. o This makes the contracts we write critical to successful service delivery and fulfillment of the Department’s mission. o Oftentimes, we are the contracts that we execute. o We must constantly drive excellence—execute, manage, review, procure, select and repeat.

7 End Game o Better contracts. o Well thought out. o Tightly drafted. o Thoroughly reviewed. o More timely execution. o No mad dash in July. o No providers working at risk. o Better management and results. o Trust but verify. Certainty in getting what we paid for. o Ensuring first rate service delivery for the people of Maine.

8 Contacts Alec Porteous – Deputy Commissioner of Finance Karen Kalka – Director, Division of Contract Management Jim Lopatosky – Deputy Director, Division of Contract Management