1. Governor’s Center for Efficient Government

2. Mission The mission of the Governor's Center for Efficient Government is to promote fair and transparent best business practices in government in order to foster accountability, competition, efficiency and innovation in the way state agencies deliver services to Florida's citizens.

3. “Outsourcing” When a function or service that was previously performed by state employees is outsourced, the state remains fully responsible for the provision of affected services and maintains control over management and policy decisions, while a third party entity operates the function or performs the service.

4. Outsourcing in Florida Total number of outsourced projects since January, 1999: 138 Total number of outsourced projects since January, 1999: 138 91 percent of the outsourced projects are/were conducted in the State of Florida (126 of 138) 91 percent of the outsourced projects are/were conducted in the State of Florida (126 of 138) 5 percent of the outsourced projects are/were conducted both in Florida and in other states (7 of 138) 5 percent of the outsourced projects are/were conducted both in Florida and in other states (7 of 138) 5 of the 138 of the outsourced projects are/were conducted outside of Florida, but in the U.S. 5 of the 138 of the outsourced projects are/were conducted outside of Florida, but in the U.S. None of the outsourced projects are/were conducted outside of the United States None of the outsourced projects are/were conducted outside of the United States

5. Challenges  Lack of understanding that the emphasis is not on outsourcing in and of itself, but in introducing competition into government services  No training or specially skilled workforce to negotiate or manage contracts  Experienced project managers not usually brought in to manage large projects on the state side  No mechanism in place for setting acceptable performance metrics and measuring the success of a contract post implementation  Not enough focus on changing antiquated business processes  No centralized enterprise-wide approach to outsourcing  No consistency in how the state contracts for services  Not enough transparency for stakeholders

6. Initial Goals Develop statewide outsourcing standards applicable to any proposed outsourcing project. Develop statewide outsourcing standards applicable to any proposed outsourcing project. Review existing outsourcing plans within the state agencies to ensure compliance with Center standards. Review existing outsourcing plans within the state agencies to ensure compliance with Center standards. Propose for the Governor’s consideration by July 1 initiative(s) that can be developed over the next 3 years. Propose for the Governor’s consideration by July 1 initiative(s) that can be developed over the next 3 years. Develop a program to transition affected employees. Develop a program to transition affected employees.

7. Guiding Principles Consider all non policy making or inherently governmental functions opportunities to outsource if the service or function is proven to be done with: Consider all non policy making or inherently governmental functions opportunities to outsource if the service or function is proven to be done with: Less tax dollars Less tax dollars Less time Less time A better quality of service A better quality of service More flexibility More flexibility Less capital investment risk to the state…if done in the private sector. Less capital investment risk to the state…if done in the private sector. State employees should have the opportunity to compete. State employees should have the opportunity to compete. A certain level of savings sharing should be achieved by the outsourcing agency; dollars should be redirected to core mission programs. A certain level of savings sharing should be achieved by the outsourcing agency; dollars should be redirected to core mission programs.

8. Guiding Principles Any service or function that can be consolidated across agencies should be done so before contracting to outsource – enterprise wide approach. Any service or function that can be consolidated across agencies should be done so before contracting to outsource – enterprise wide approach. Vendors shall assume risk for up front capital investment. Vendors shall assume risk for up front capital investment. The success of any outsourcing initiative shall be measured by outcomes and specific performance measures, not by process. The success of any outsourcing initiative shall be measured by outcomes and specific performance measures, not by process. The Governor’s Center for Efficient Government shall be the gateway for all outsourcing initiatives from commencement of a sound business case through the first set of successful performance metrics of a project post implementation. The Governor’s Center for Efficient Government shall be the gateway for all outsourcing initiatives from commencement of a sound business case through the first set of successful performance metrics of a project post implementation.

9. Standards Gateway Process for all outsourcing projects: Gateway Process for all outsourcing projects: Business Case Business Case Procurement Procurement Contract management Contract management Change management Change management Performance measurement Performance measurement

10. Gate Management Process Business Case Gate 1 Procurement Gate 2Gate 3Gate 4 Transition Management Contract Management Post Implementation Stage 1Stage 4Stage 5Stage 3Stage 2 Monitor Current Projects New Projects Change Management

11. Employee Transition Agencies shall address the transition of all affected employees in the business case and through the procurement process. Agencies shall address the transition of all affected employees in the business case and through the procurement process. Each agency shall develop job placement policies for employees affected by an outsourcing initiative. Policies shall include, but not be limited to, requiring that each impacted state employee be interviewed by the contractor and considered for job placement within the company. Each agency shall develop job placement policies for employees affected by an outsourcing initiative. Policies shall include, but not be limited to, requiring that each impacted state employee be interviewed by the contractor and considered for job placement within the company. Each agency shall develop a reemployment and retraining assistance plan for employees who are not retained by the agency or employed by the contractor. Each agency shall develop a reemployment and retraining assistance plan for employees who are not retained by the agency or employed by the contractor. Agencies shall, within their approved budgets, offer Critical Employee Retention salary increases in order to retain those individuals identified as critical to successful transition of the outsourced service to the contractor. Agencies shall, within their approved budgets, offer Critical Employee Retention salary increases in order to retain those individuals identified as critical to successful transition of the outsourced service to the contractor.

12. Employee Transition Agencies may use a percentage of the savings realized from an implemented outsourcing initiative as an Employee Recognition allocation to reward the employee or group of employees who proposed the initiative. Agencies may use a percentage of the savings realized from an implemented outsourcing initiative as an Employee Recognition allocation to reward the employee or group of employees who proposed the initiative. Agencies shall consider incorporating Severance Compensation provisions into outsourcing contracts. Agencies shall consider incorporating Severance Compensation provisions into outsourcing contracts. The Department of Management Services is to develop an Early Retirement incentive package to be offered to employees. The Department of Management Services is to develop an Early Retirement incentive package to be offered to employees. Employee Transition Guide created by the Center and the Agency for Workforce Innovation. Employee Transition Guide created by the Center and the Agency for Workforce Innovation.

13. Major Outsourcing Projects Lessons Learned State needs a more consistent approach to use of Business Cases; agencies need to spend more time on development and analyses and apply appropriate resources State needs a more consistent approach to use of Business Cases; agencies need to spend more time on development and analyses and apply appropriate resources Need to establish Change Management plans early in the process and align activities through transition and implementation Need to establish Change Management plans early in the process and align activities through transition and implementation State should develop staff expertise to assist in the Procurement process and negotiate non-traditional contacts that involve shared savings and shared risk approaches. State should develop staff expertise to assist in the Procurement process and negotiate non-traditional contacts that involve shared savings and shared risk approaches. Specialist expertise should be hired to ensure the state is on level setting with vendors during the Implementation of a project. Specialist expertise should be hired to ensure the state is on level setting with vendors during the Implementation of a project. Agencies need to develop detailed post-implementation contract and performance monitoring plans prior to transition. Agencies need to develop detailed post-implementation contract and performance monitoring plans prior to transition.

14. Mail Services The Center is proposing to consolidate and outsource executive agency mail services and in Tallahassee and Correctional facilities statewide. The Center is proposing to consolidate and outsource executive agency mail services and in Tallahassee and Correctional facilities statewide. Achieve Savings Achieve Savings Improve Mail Services Improve Mail Services Avoid additional capital investment to upgrade equipment to meet USPS standards. Avoid additional capital investment to upgrade equipment to meet USPS standards. Improve Security. Improve Security. Eliminate duplicative functions. Eliminate duplicative functions. The Center’s Oversight Board is reviewing the Business Case at Gate 1. This is the first project to go through the new Gate Process. The Center’s Oversight Board is reviewing the Business Case at Gate 1. This is the first project to go through the new Gate Process.

15. Next Steps The Center will continue to improve upon the newly created standards with feedback from the Legislature to achieve a maximum level of accountability and transparency for all projects. The Center will continue to improve upon the newly created standards with feedback from the Legislature to achieve a maximum level of accountability and transparency for all projects. The Center is working on other business cases to test the feasibility of other enterprise projects. The Center is working on other business cases to test the feasibility of other enterprise projects. The Center is working with agencies on various outsourcing initiatives to ensure the new standards are being met in various stages of the Gate Process. The Center is working with agencies on various outsourcing initiatives to ensure the new standards are being met in various stages of the Gate Process.

16. Contact Information Governor’s Center for Efficient Government Governor’s Center for Efficient Government 2105 The Capitol Tallahassee, FL 32399 http://dms.myflorida.com/850.414.9200 850.414.9179 FAX Pam Pfeifer, Director pam.pfeifer@myflorida.com