Purchasing: Hot Topics Rod Ramer Community colleges of spokane BAR MaY 29, 2014 Columbia Basin College

Purchasing: Hot Topics Three strategic initiatives from DES: Mandatory training “Risk Assessment” in purchasing functions Reporting of contracts to DES

Purchasing: Hot Topics 1) Mandatory Training RCW 39.26.110 – Training: (3) Beginning July 1, 2013, state agencies must require agency employees responsible for developing, executing, or managing procurements or contracts, or both, to complete department-approved training or certification programs, or both. Be-ginning July 1, 2015, no agency employee may execute or manage contracts unless the employee has met the training or certification requirements or both as set by the department...

Purchasing: Hot Topics 1) Mandatory Training DES contracted with a consultant named “Public Knowledge LLC” to develop a training plan, curriculum and certification process on Nov 18, 2013. There are 20 members on a Training Advisory Committee (Green River, Evergreen, EWU et al.)

Purchasing: Hot Topics 1) Mandatory Training Nothing published or released yet. “Interim” DES project manager: Keith Kawamura 360-407-9257 keith.kawamura@des.wa.gov

Purchasing: Hot Topics 1) Mandatory Training Rumors: 1. May be patterned after Oregon model (but not the Oregon exemption for its higher education  ): A). Foundation training for dedicated purchasing personnel B). Executive or oversight training for those who “manage” C). Commodity training/specializations such as major IT

Purchasing: Hot Topics 1) Mandatory Training Rumors continued: Topics in Procurement 101 (167 PowerPoint slides 4/30/14) Procurement Reform Exceptions, Exemptions & Options Delegated Authority Direct Buy Competitive Procurement Competitive process RFQ, RFQQ, RFP Sole Source Emergency Procurement Risk Management Scope of Work Ethics in Public Contracting

Purchasing: Hot Topics 1) Mandatory Training Rumors continued: Evolve into certification program in the future Delivered thru Dept of Personnel “Learning Management System” to “…minimize additional costs associated with training requirements.” (RCW 39.26.110)

Purchasing: Hot Topics 1) Mandatory Training DES Training Project website: http://www.des.wa.gov/about/pi/ProcurementReform/Pages/PRTraining.aspx

Purchasing: Hot Topics 2) Risk Assessment RCW 39.26.090 (5) requires that DES develops a risk assessment for each agency before delegating any procurement authority. Higher Ed is specifically defined as an “agency” in RCW 39.26 A pilot program began in November 2012 (UW, Evergreen, Olympic): developed assessment tool.

Purchasing: Hot Topics 2) Risk Assessment How does your agency manage its procurement function(s)? Responses should include: A description of how your agency delegates signature authority internally. Whether your agency centrally manages its procurement functions, or if decentralized, a description of how the authority is distributed. How your agency engages and manages relationships with stakeholders, and (d) the number of procurement staff who conduct procurements on behalf of your agency

Purchasing: Hot Topics 2) Risk Assessment What procedures does your agency use to manage requests for procurements of goods or services? Your response should include a description of the process used, including review, follow-up, etc.

Purchasing: Hot Topics 2) Risk Assessment What outreach, inclusion or other activities does your agency do to ensure its procurement strategies engage and support small, veteran-owned and diverse businesses? Describe the process used, outreach events or activities, solicitation language, supplier diversity plan, inclusion plan, diversity goals, etc.

Purchasing: Hot Topics 2) Risk Assessment How does your agency forecast its future procurement needs? Your response should include: A description of how spend data is captured, reviewed, monitored and used in the procurement forecasting process. How your agency confirms that its procurements obtain best value for the State. How the agency anticipates client needs and identifies repetitive procurements.

Purchasing: Hot Topics 2) Risk Assessment Change in Procurement Reform project leadership (Ro Marcus departure, Servando Patlan position) Higher Ed already has its procurement authority in RCW 28B.10.029; what can we benefit from the review? It appears DES relents and has no further intent for Higher Ed participation

Purchasing: Hot Topics 2) Risk Assessment DES Risk Assessment website: http://www.des.wa.gov/about/pi/ProcurementReform/Pages/PR_RiskAssessment.aspx

Purchasing: Hot Topics 3) Contract Reporting RCW 39.26.210 (1) “Agencies must annually submit to the department a list of all contracts that the agency has entered into or renewed. ‘Contracts,’ for the purposes of this section, does not include purchase orders. The department must maintain a publicly available list of all contracts entered into by agencies during each fiscal year…”

Purchasing: Hot Topics 3) Contract Reporting DES Policy 210-01 requires reporting of any “contract…that has a statement of work or exceeds the Direct Buy limit” Exemptions: purchase orders, direct buy contracts unless they include a statement of work, public works, non-fiscal agreements, interagency agreements, grant agreements and loan agreements.

Purchasing: Hot Topics 3) Contract Reporting NOTE: DES is including revenue contracts in addition to expenditure contracts.

Purchasing: Hot Topics 3) Contract Reporting In training classes, DES states it wants reported POs used in lieu of contracts, such as a $50 guest speaker in a class. For them, the issue is a whether there is a “statement of work.”

Purchasing: Hot Topics 3) Contract Reporting E-mail with Grays Harbor (shared with PAC 4/14/14): “Statement of work: Used for longer term agreements where performance is determined via review and approval using criteria that can only be assessed using knowledge, skills and abilities and professional judgment gained over time. Provides clear direction to projects and project managers if they are to succeed. Statement of work (SOW) sets the rules for the project once the key stakeholders formally agree to its content. SOW lists the goals, constraints, success criteria, and management guidelines. It clarifies responsibilities and actions of project stakeholders in a relationship.”

Purchasing: Hot Topics 3) Contract Reporting What is Spokane going to report (until further word)? A) Anything that is signed by two parties that has financial terms, either revenue or expense; B) All POs for object codes that include services: ER, Cx, NB

Purchasing: Hot Topics 3) Contract Reporting DES Contract Reporting website: http://www.des.wa.gov/services/ContractingPurchasing/PoliciesTraining/Pages/ContractsTransparency.aspx

Purchasing: Hot Topics Questions? Comments? Criticisms? Corrections?

Purchasing: Hot Topics Rod Ramer CCS Purchasing Manager (509) 434-5325 rod.ramer@ccs.spokane.edu