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2013 Spokane Vendor Training Vendor View of State Procurement Changes Presented by Roselyn Marcus June 19, 2013 1.

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Presentation on theme: "2013 Spokane Vendor Training Vendor View of State Procurement Changes Presented by Roselyn Marcus June 19, 2013 1."— Presentation transcript:

1 2013 Spokane Vendor Training Vendor View of State Procurement Changes Presented by Roselyn Marcus June 19, 2013 1

2 Fiscal Crisis = Government Reform ESSB 5931 – The reorganization of five agencies into three agencies and two new offices: What Happened in 2011? 2 Before ESSB 5931After ESSB 5931 Office of Financial Management Department of PersonnelDepartment of Enterprise Services General AdministrationConsolidated Technology Services Department of Information ServicesState HR Director Department of PrintingOffice of Chief Information Officer


4 “To maximize the benefits to the public, state government should be operated in an efficient and effective manner. The Department of Enterprise Services is created to provide centralized leadership in efficiently and cost-effectively managing resources necessary to support the delivery of state government services. The mission of the department is to implement a world-class, customer-focused organization that provides valued products and services to government and state residents.” Department of Enterprise Services 4


6 Contracts & Legal Services Division

7 L EGISLATIVE F OCUS ON WA S MALL B USINESS 2009 SSB 5723 Defines WA Small Business & requests new policies to increase purchases from WA Small Businesses for GA, DIS, PRT, and OFM purchase authorities: RCWs 43.19, 43.105, 43.19.736, and 39.29 respectively 2010 ESB 5041 Defines Certified Veteran Owned Businesses 2011 HB 1770 Redefines WA Small Business (removes owner domiciled requirement) requires a web based system by Dec 31, 2013 7

8 Prior Statutory Scheme: Chapter 39.29 RCW (OFM) Chapter 43.19 RCW (GA) Chapter 43.105 RCW (DIS/ISB) Chapter 43.78 RCW (Printer) State Contracting Agency 8

9 2SHB 2452 - Signed March 30, 2012 Combines 3 statutory chapters into one – Chapter 39.26 RCW Governs all state procurements for goods and services. Went into effect January 1, 2013 2012 – Procurement Reform is Born 9

10 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 10

11 G OVERNMENT C ONSOLIDATION S USTAINS C OMMITMENT T O S MALL B USINESS “In addition, the legislature intends that the state develop procurement policies, procedures, and materials that encourage and facilitate state agency purchase of goods and services from Washington small businesses.” RCW 39.26.005 11

12 Procurement Reform Implementation Organization

13 Procurement Reform Advisory Committee 13 Chair: Roselyn Marcus, DES Asst Director Contracts & Legal Services Lead Staff: Servando Patlan DES Procurement Reform & Outreach Manager Kathy Marshall – Chief Financial Officer DSHS Steve Reinmuth – Chief of Staff WSDOT Lisa Darnell – Fiscal Manager Ecology Wadell Brent – Contracts Veterans Affairs Denise Doty – Assistant Secretary DOC Gail Douglas – Assistant Director Legal & Admin Services HCA Richard Woodruff – Accounting Services Director SBCTC Ann Anderson – UW Ted Lucas, CPPO – Purchasing Manager Snohomish County Nora Huey – Port of Seattle Jeanine Livingston –WFSE Frank Lemos – Co-chair of OMWBE Ad Hoc Adv. Committee Small Business Rep


15 Procurement Reform Small Business Work Group 15 Co-Chair: Servando Patlan DES Procurement Reform & Outreach Manager Co-Chair: Fernando Martinez, NW Minority Supplier Development Council Dave Davis - WSDOT Tim Carroll - WSDOT Linda Cornwall - LNI Tiffany Scroggs - PTAC Jay Field - The Evergreen State College Mick Matsuzawa - OMWBE Irene Reyes - Excel Supply Company Chesca Ward - University of Washington Business Diversity Manager Jennifer Brown - Brown Pear Solutions Greg Mowat - GTM Transformations LLC Janet McNaughton - Lasting Impressions Merle Holden - Native PTAC Frank Lemos - Co-chair of OMWBE Ad Hoc Adv. Committee Small Business Rep

16 Agency Procurement Authority Impacts Chapter 39.26 RCW Addresses Many Vendor Concerns, including: Agency success purchasing from Washington Small Businesses Debarment for vendor non-performance Notice to vendors of contracts, contract awards, and inspection of sole source determinations prior to contract Paperless purchasing & contracting

17 Agency Procurement Authority Impacts An agency procurement and contracting risk assessment is being considered as a basis for the level of purchasing and contracting authority delegated to specific state agencies Given the strong legislative intent for procurement reform to facilitate business with Washington Small Businesses, agency success in contracting and purchasing with Washington Small Business may become an important component of the risk assessment

18 Small Business Barrier Consideration Number of years in business requirements biases against start-up firms Firm size requirements bias against sole proprietorships Number of years of state experience requirements bias against firms with federal experience sufficient to meet state needs Excess insurance & bond requirements for the project risk, e.g. a $3M umbrella policy will cost $6,000 a year, a $1M bond can cost $50,000

19 19 DES Procurement Reform Web Page

20 20 DES Procurement Reform Web Page

21 21 DES Procurement Reform Web Page

22 RCW 39.26.200 gives DES director the authority to debar vendor for cause. Debarment rules - chapter 200-305 WAC. Process in development. – Updating website – Referral form developed – Training being scheduled Debarment 22

23 1.A common approach for the procurement of all goods and services will be developed. 2.Requires training for all employees who develop, manage or execute contracts. 3.Oversight of all sole source contracts, except those otherwise exempt, in place of oversight of only personal services contracts. 4.Contractors and agencies will be allowed to submit bid documents and signatures electronically for ease of transaction. What Will Be Different? 23

24 5.Allows use of best value criteria to award contracts. 6.Agencies will notify bidders and identify awarded contractors in a central system. 7.Agencies will post information about awarded contracts with DES so the public can see basic information about all awarded contracts on a single site. 8.DES will be able to debar contractors for caus e. What Will Be Different? 24

25 1.The bill keeps the same exemptions for the Legislature, higher education, public hospitals, client services and the data center as in current law. 2.DES will establish rules and guidelines for procurement of goods and services. 3.Agencies can continue to make emergency purchases, direct buy purchases and negotiate contracts when appropriate. What Will Be The Same? 25

26 Small Business Definitions RCW 39.26.006 codifies the 2011 HB 1770 definition of a Washington Small Business and includes definitions for 2 additional types of small business classifications: – Mini-Business – Micro-Business 26

27 Washington Electronic Business Solution WEBS WEBS provides vendors the qualifying criteria and allows vendors to self identify as a small business sing/Business/Pages/default.aspx sing/Business/Pages/default.aspx WEBS will be updated with new qualifying criteria for mini and micro businesses and vendors will be notified to verify and adjust their status in WEBS as a self identified small, mini, or micro business 27

28 WEBS Statistics Nov 9, 2011  Oct 5, 2012  Mar 21, 2013 254  345  412 WA Certified Veteran Owned Businesses 2,075  3,085  3,727 WA in-state Small Businesses 632  616  648 WA Certified Woman Owned Businesses 460  436  456 WA Certified Minority Owned Businesses 242  230  243 WA Certified Woman & Minority Owned Businesses 23,210  23,215  25,715 WEBS Registered Vendors 1.1%  1.5%  1.6% Veteran, 8.9%  13.2%  14.5% in-state small business, 2.7%  2.7%  2.5% Woman, 2%  1.9%  1.8% Minority, 1%  0.99%  0.9% Woman & Minority 28

29 WEBS Statistics March 21, 2013 29

30 WEBS Statistics March 21, 2013 30

31 Transparency Focus 201 solicitations posted in WEBS as of March 20, 2013

32 Transparency Focus DES State Master Contracts

33 Transparency Focus All State Contracts A project is currently underway to provide the means and processes to fulfill the intent and mandates of SSHB 2452 legislation and supporting procurement reform policies being implemented to foster transparency by maintaining a list of all contracts and procurement efforts for each fiscal year and making them publicly available.

34 WEBS For Sole Source Transparency 9 Sole Source Postings on March 20, 2013

35 WEBS For Sole Source Transparency

36 WEBS For Sole Source

37 DES For Sole Source Transparency

38 Contact the agency that posted the sole source to understand why your solution doesn’t fit. If after the agency contact you feel your solution is a fit and this is not a sole source. Submit a capability statement to the agency that posted the sole source. A capability statement gives the details of your ability to meet the state’s requirements by – due date of proposals or capacity statements, i.e. within five (5) calendar days of this announcement. – The following information should be included in the capability statements: add a list of items that need to be included. 38 Sole Source What To Do?

39 Public disclosure (RCW 39.26.030) Bonds (RCW 39.26.190 Complaint and Protest Process Requirements (RCW 39.26.170) Electronic world (or welcome to the 21 st century) – Electronic submittal of bids under RCW 39.26.090(70) – Electronic signatures under RCW 39.26.180(1)(f) Training (RCW 39.26.110) Other Changes 39

40 Servando Patlan Department of Enterprise Services Email Phone 360-407-9390 Roselyn Marcus Department of Enterprise Services Email Phone 360-407-8569 Questions Visit the Procurement Reform Website at 40

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