1. 1 HOUSE BILL 2867 Sections 2 through 4 Oregon Laws 2009, Chapter 880 Key Features For: Deciding When To Contract For Services State Procurement Office December 17, 2009

2. 2 HB 2867 -- Policy Thrust Conducts a written cost analysis; or Determines, in writing, using the contracting agency’s personnel to perform the services is “not feasible”.  Cost Comparison Analysis is not required A contracting agency may conduct a procurement for services estimated to exceed $250,000 when the contracting agency: The major policy thrust of HB 2867 regulates procurements of contracts for services.

3. 3 Code Defines Services ORS 279 A.010 (1)(kk) “Services” mean services other than personal services designated under ORS 279A.055, except that for state contracting agencies with procurement authority * * *, “services” includes personal services as designated by the state contracting agencies.

4. 4 “Not Feasible” Determinations (A)Grant Requires an Independent Contractor. (B)“Law” Requires an Independent Contractor. (C)Service and Maintenance Contracts Incidental to Real and Personal Property Purchases and Leases. (D)Emergency Contracts. Special circumstances require the contracting agency to procure the services by contract. Special circumstances may include, but are not limited to, circumstances in which [one of the eight listed justifications exists]

5. 5 “Not Feasible” Determinations (E)Contracts That Will Be Completed in Six Months. (F)Agency Personnel Lack Expertise, Training or Experience. (G)Policy Goals, Avoiding Conflicts of Interest, or Ensuring Unbiased Findings. (H)Urgent or Temporary Need for Services. The Contracting Agency Must Make Written Findings to support the “Not Feasible” Determination

6. 6 Cost Analysis – step 1 Compensation, benefits & other costs Estimate the contracting agency’s cost of performing the services The cost a potential contractor would incur in performing the services Agency may not procure if the sole reason the Contractors costs are lower due to lower compensation and/or benefits.

7. 7 Cost Analysis – step 2 Cost to Agency – compare: Agency costs Contractor costs An agency may proceed with the procurement -- Only if the contracting agency would incur more cost in performing the services with the contracting agency’s own personnel and resources than the contracting agency would incur in procuring the services from a contractor. EXCEPTION: May procure if Contractor cost is higher if it is determined Agency lacks resources to do it in- house timely An agency may proceed with the procurement -- Only if the contracting agency would incur more cost in performing the services with the contracting agency’s own personnel and resources than the contracting agency would incur in procuring the services from a contractor. EXCEPTION: May procure if Contractor cost is higher if it is determined Agency lacks resources to do it in- house timely

8. 8 (1) Estimated contract price does not exceed 250,000. (2)Client services as defined by OAR125-246- 0110. (3)Exempted from the Public Contracting Code Under ORS 279A.025; or a statute outside the Public Contracting Code, (4)Personal services designated by local contract review boards under ORS 279A.055(2). Do NOT Apply to: HB 2867 -- Sections 2 through 4

9. 9 (5) Cities with populations that do not exceed 15,000 and for Counties with populations not greater than 30,000 (6) Community colleges with no more than 1,000 full- time equivalent students. (7) Special districts (8) Diking districts (9) Soil and water conservation districts (10) The Port of Portland HB 2867 -- Sections 2 through 4 Do NOT Apply to:

10. 10 Implementation & Reporting Supporting Rulemaking Activities: ■ DAS Draft Rule (Applicable to state agencies subject to DAS procurement authority) ■ OAR 125-247-0110 (primary rule for cost analysis, feasibility determination & department report.) ■ DOJ Rules (Potentially applicable to non-DAS state agencies) ■ OAR 137-047-0250 HB 2867 is operative January 1, 2010 Applies to procurements for services 1 st advertised or otherwise solicited and contracts entered into on or after January 1, 2010 HB 2867 is operative January 1, 2010 Applies to procurements for services 1 st advertised or otherwise solicited and contracts entered into on or after January 1, 2010 DAS reports consultative results to Legislative Assembly January 10, 2011

11. 11 DAS Rule Schedule & Communications & Tools Schedule: January 1, 2010 – Anticipated effective Date of DAS Rules  Click “Rules/Statutes” at http://procurement.oregon.gov for full copy of draft ruleshttp://procurement.oregon.gov January 26, 2010 – General DAS Rules briefing session February 3, 2010 – 2 nd General DAS Rules briefing session Communication Plan: December 8, 2009 – Briefing the CIO Council December 17, 2009 – 2 nd HB 2867 Briefing January – February DAS Rules Briefings Tools/Helps: Model forms/templates Flow chart guide DAS Rules commentary Agency Legal Counsel

12. 12 Contacts DAS Rules  Karen Hartley at karen.hartley@state.or.uskaren.hartley@state.or.us  Brenda Brown at brenda.j.brown@state.or.usbrenda.j.brown@state.or.us Dianne Lancaster, Chief Procurement Officer  Dianne.l.lancaster@state.or.us Dianne.l.lancaster@state.or.us Marscy Stone, External Operations Manager  Marscy.d.stone@state.or.us Marscy.d.stone@state.or.us Agency DOJ Legal Counsel Agency Designated Procurement Officer (DPO) Thank You