1. Procurement Reform & Training Overview 2013 DES Training Conference & Trade Show Presented by Roselyn Marcus, Lori McCleary and Melanie Buechel October 30, 2013 1

2. Presenters: Roselyn Marcus –Assistant Director Legal &Legislative Affairs, OFM Lori McCleary –Procurement Reform Project Manager, DES Melanie Buechel –Senior Contracts Staff Consultant, DES Panel Presentation 2

3. Procurement Reform Overview Initiatives under procurement reform Training/Certification Program Questions Topics 3

4. 2SHB 2452 - Signed March 30, 2012 Created Chapter 39.26 RCW Governs all state procurements for goods and services. Went into effect January 1, 2013 Procurement Reform 4

5. Promote open competition Promote transparency Centralize oversight Centralize location of contract data in a searchable manner Encourage/facilitate participation by Washington small businesses Increase accountability RCW 39.26.005 Intent of Procurement Reform 5

6. Department of Enterprise Services is required to develop policies for state contracting activities: RCW 39.26.080, 39.26.090, 39.26.180. Department of Enterprise Services is authorized to establish rules for state contracting activities: 39.26.090(11), 39.26.200. Centralize Oversight 6

7. The procedures and requirements must: Guiding Principles 7 Be FAIRBe COMPETITIVE Be able to obtain FAIR and REASONABLE PRICES Be ACCOUNTABLE & provide HIGH ETHICAL STANDARDS Be TRANSPARENTBe COST EFFICIENT & EFFECTIVE Be TIMELYBe FLEXIBLE Be SIMPLIFIEDBe INNOVATIVE PROMOTE SMALL BUSINESSESSEEK BEST VALUE NOT OVER REGULATEEMPLOY BEST PRACTICES

8. Delegation of Authority –Risk Assessment Pilot Debarment Rules and Procedures Transparency requirements under RCW 39.36.210 Small Business Initiatives, including development of a Model Plan and Technical Assistance Reporting Sole Source, Direct Buys and Emergency Procurement Initiatives 8

9. Cooperative Purchasing eBid and eSignature Procurement Manual Procurement Credential Curriculum and Training Models, Policies and Best Practices addressing: –Complaints & Protests, Bonding, Convenience Contracts and Ethics in Procurement Initiatives 9

10. The director has the authority to delegate to agencies authority to purchase goods and services. The authority must specify restrictions as to dollar amount or to specific types of goods and services. The authorization must be based on a risk assessment process developed by the department. The director may not delegate the authority if the agency is not in substantial compliance with overall procurement policies as established by the director. RCW 39.26.090(5) Delegation of Authority 10

11. Agency SizeCommoditiesServicesInformation Technology *Micro (Less than 50 FTEs) $50,000 *Small (50 – 200 FTEs) $50,000$250,000 Medium (201 – 500 FTEs) $50,000$500,000 Large (more than 500 FTEs) $50,000$1 million Delegation of Authority Policy 11

12. November 2012 – Scope the pilot, draft a project charter, and finalize the January 2013 risk matrix/risk factors and develop parameters for delegation and oversight as related to the assessed level of risk January 2013 - Conduct the assessments and reach agreement on February 2013 agency risk level, delegation and oversight March 2013 DES & pilot agencies start operating with their delegation and oversight authorities March 2013 Monthly meetings between DES and pilot agencies to assess the pilot October 2013 DES & pilot agencies review project success factors and challenges and make recommended changes. December 2013 Prepare and issue final report on pilot and the policy on the risk assessment, delegation and oversight. Provide a schedule for rolling this out to all state agencies. January 2014 Begin implementation to all state agencies in accordance with the schedule. Pilot Timeline 12

13. Large AgenciesMedium AgenciesSmall AgenciesHigher Education Department of Social & Health Services Department of Health State Investment Board University of Washington Department of Transportation Department of Early Learning Parks and Recreation Evergreen State College Department of Enterprise Services Health Care Authority State Board for Community & Tech Colleges Olympic Community College Labor & IndustriesOMWBE Pilot Participants 13

14. Authority granted in RCW 39.26.200 Rules adopted in chapter 200-305 WAC Internal Administrative Procedure Training Completed Debarment 14

15. RCW 39.26.210 requires annual reporting to DES and annual posting by DES 23 Agencies participated in the Pilot which is being closed out 20 Agencies opted to report data for the October 1, 2013 deadline Top challenges noted by Pilot agencies so far Next reporting period is September 1, 2014. Training will be available prior to the deadline The opportunity to opt in remains open Agency Contract Reporting 15

16. IT Project to modify WEBS Coordination for report collaboration gearing up Increased direct buy limit for small business purchases Protest bond relief Creating a business diversity outreach unit Development of inclusion plan strategy Small Business Initiatives 16

17. E-signature authorized for contracts Use of information technology tools in the procurement process Electronic World 17

18. January 1, 2013 Chapter 39.26.110 RCW – Training DES must provide either training or certification programs, or both, to ensure consistency in procurement practices for employees authorized to perform procurement functions. This applies to the procurement of both goods and services. Training Certification Program 18

19. Implementation Timelines and Requirements July 1, 2013 – Agencies must require employees responsible for developing, executing or managing procurements or contracts to complete DES-approved training. July 1, 2015 – No agency employee may execute or manage contracts unless they have met DES training requirements. Training Certification Program 19

20. Proposed Training Program  Certification Program including continuing education requirements and recertification Washington Basic Certification For all employees who procure goods or services Washington Advanced Certification (possible future development) Trainer Certification Training Certification Program 20

21.  Certificate Programs Small Acquisition Contract Management Executive Management Procurement Evaluation Specialized/High-Risk Acquisitions (example- IT) Training for Auditors, Financial Staff, others  Assessment and Grandfathering Process Training Certification Program 21

22. Program Development-Where are we now? Formed a Training Advisory Group (TAG) Met with representative from State of Oregon Developed a Charter Conducting a procurement for a Training Consultant First solicitation release August 21 – no bids Re-released on September 24 Training Certification Program 22

23. Current Procurement Schedule Bids Due: October 16 – 2 bids received Evaluations: October 17 – 22 Oral Interviews and Reference Checks: October 23 – 24 Announce Apparent Successful Bidder: October 25 Debrief: October 31 Tentative Start Date: November 18 One year contract with renewal up to 12 months Training Certification Program 23

24. Maintain and Sustain Training Program  DES Personnel Services Division (PSD) – Learning Delivery and program management – schedule classes, instructors, track training credits and pre-requisites, track continuing education requirements and recertification  Learning Management System (LMS) – registration, tracking  TAG – Will serve as an advisory group to determine program needs, future curriculum, etc. Training Certification Program 24

25. Current and Planned Training –Sole Source, Direct Buy and Emergency Procurements and Filing Requirements (offered at least every other month) –Contract Reporting –Procurement Training (coming in November) Training Certification Program 25

26. DES has issued the following policies: Delegation of Authority (# DES-090-00) Sole Source Contracts (# DES-140-00) Direct Buy (# DES-125-03) Emergency Procurements/Purchases (# DES-130-00) Complaints and Protests (# DES-170-00) Agency Contract Reporting (# DES-210-01) Models, Policies & Best Practices 26

27. Protest Bonds Policy (in Draft) E-signature Competitive Procurement Models and Best Practices Complaint and Protest Model Training Policy Convenience Contracts Models and Best Practices More to be identified… 27 Models, Policies and Best Practices In Process

28. New project manager on board Sept 2013 Applying project methodology and structure Developing an over-arching charter, project plan, communication plan and *work breakdown structure Existing sub-projects will also be chartered Reviewing reform legislation *Reach out to re-establish and strengthen partnerships 28 Current Project Status

29. Procurement Reform Questions: desprocurementreform@des.wa.gov Procurement Reform Website: http://des.wa.gov/about/pi/ProcurementReform/Pages/default.aspx http://des.wa.gov/about/pi/ProcurementReform/Pages/default.aspx Roselyn Marcus (360) 902-0434Lori McCleary (360) 407-8217 roselyn.marcus@ofm.wa.govlori.mccleary@des.wa.gov Farrell Presnell (360) 407-8820Melanie Buechel (360) 407-8156 farrell.presnell@des.wa.govmelanie.buechel@des.wa.gov Questions