DMS Office of Efficient Government Kick Off Meeting

E.O. 2004-45 / Center for Efficient Government Project Gate Management Process (Historical Only) Current Projects Gate 1 Gate 2 Gate 3 Gate 4 Business Case Procurement Contract Management Change Management Post Implementation Monitor Develop statewide outsourcing standards and a business case template applicable to any proposed outsourcing project. Review existing outsourcing plans within the state agencies to ensure compliance with Center standards and business case, execution of effective contract language with vendors and implementation of successful change management. Propose for the Governor’s consideration by July 1 an initial list of specific outsourcing projects and initiatives that can be developed over the next 3 years. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 New Projects

Chapter 2005-152, Laws of Florida Amended § 216.023, F.S. (LBRs) Added subsection 4(a)11., to require “supporting information … for any request to outsource or privatize agency functions” -- led to LBR Schedules XII and XIIA Added subsection 4(a)12., to require an “evaluation of any major outsourcing and privatization initiatives undertaken during the last 5 fiscal years having aggregate contract expenditures exceeding $10 million during the term of the contract” -- led to LBR Schedule XIIB

Chapter 2006-224, Laws of Florida Florida Efficient Government Act of 2006 Creates new sections 287.0571 to 287.0574 Focuses on “outsource” of services Vendor to provide a service, in whole or in part, or an activity, as defined in section 216.011(1) Agency retains the responsibility and accountability for the service or activity Transfer of management responsibility for the delivery of resources and the performance of those resources

Law Creates New Council and Office Council on Efficient Government (by July 31) DMS Secretary (chair) Two other agency heads Cabinet member other than Governor Three private-sector members Office of Efficient Government (building now) Within DMS Secretary’s office Mission: To support the Council on Efficient Government as an outsourcing center of excellence in order to deliver quality, innovative, resource-saving solutions

Council Duties Develop best-practice standards and processes for creating and evaluating business cases to outsource Review agency business cases to outsource more than $1mm/FY and as requested by the Governor or any agency head For business cases to outsource exceeding $10mm/FY, provide advisory report to the agency, Governor, and Legislature before the agency proceeds with solicitation Develop, in consultation with AWI, guidelines for assisting employees whose jobs are eliminated as a result of outsourcing Report annually on innovative methods of delivering government services which would improve the efficiency, effectiveness, or competition in the delivery of government services Report annually on each agency’s outsourcing efforts

Business Cases The recently issued LBR instructions for FY 07-08 aligns the new requirements with existing chapter 216 requirements – your Schedule XII will be your initial business case New law hinges time periods around solicitation dates, but in practice we will take holistic approach (next slide) Council may develop new forms and processes

Outsourcing Contracts > $10 mm/FY Require Council Review and Report Submit BC to OEG (B) Council Meeting to review BC (Quarterly) (C) Council Report to Agency, EOG, House, & Senate (D) Start Solicitation [(C) + 30 days)] (E) End (assumed 60 days)/ (F) Sign Contract [(E) + 30 days) 10/15/06 (if in LBR; otherwise, 10/1) 12/1/06 12/15/06 1/15/07 3/15/07 4/15/07 1/1/07 3/1/07 6/15/07 7/15/07 4/1/07 6/1/07 9/15/07 10/15/07 7/1/07 9/1/07 12/15/07 1/15/08 10/1/2007 12/1/2007 12/15/2007 1/15/2008 3/15/2008 4/15/2008

Outsourcing Contracts $1mm to $10mm/FY Require Council Review Submit BC to OEG ((B) – 10 days)) (B) Council Meeting to review BC (Quarterly) (C) Start Solicitation [(B) + 30 days)] (D) End Solicitation (assumed 60 days)/ Submit Final BC (E) Sign Contract [(D) + 30 days] 8/20/06 9/1/06 9/20/06 11/20/06 12/20/06 12/1/06 2/20/07 3/20/07 3/1/07 5/20/07 6/20/07 6/1/07 8/20/07 9/20/07 9/1/07 11/20/07 12/20/07 12/1/07 2/20/08 3/20/08

execution of contract) Outsourcing Contracts < $1mm/FY Council Will Track and Report Annually BC submitted to OEG (30 days before execution of contract) Sign Contract (30 days after final BC submitted) 7/15/06 8/15/06 10/1/06 11/1/06 1/1/07 2/1/07 4/1/07 5/1/07 7/1/07 8/1/07 These are sample dates, presented quarterly for illustrative purposes only. Business cases may be submitted at any time T, and the agency may then execute the contract at T + 30 days.

OEG Process for Business Case Review All >$10mm & Any >$1mm Submitted 30 Days Out Day Action 1 Agency submits initial BC OEG completes initial review and schedules meeting with agency 5-12 OEG meets with agency 15 OEG sends agency written evaluation and guidance on BC 25 Agency submits revised BC (if any) 30 Agency presents BC to Council Note - The earlier an agency submits BC, the more actively OEG will help improve it before submittal to Council

Business Case Preparation Read Section 8 of the Law with 287.057(18) “A contractor … or its employees, agents, or subcontractors, may not knowingly participate, through decision, approval, disapproval, or preparation of any part of a purchase request, investigation, or audit, in the procurement of commodities or contractual services by a state agency from an entity in which the contractor, or its employees, agents, or subcontractors, has a material interest.”

Changes to 287.057(17)(b) Negotiation Team for ITNs Not limited to outsourcing contracts If the contract exceeds $1mm/FY, at least one of the team members must be DMS-certified Contract Negotiator (rule development workshop July 25 at 1:00 p.m. at DMS) If the contract exceeds $10mm/FY, at least one of the team members must be PMI-certified Project Management Professional

Spreading the Word Internally Stakeholders in the New Law Program Areas that Outsource Budget Office General Counsel Director of Administration Purchasing Director Contract Managers/Contract Administrator Project Management Office Chief of Staff Legislative Affairs Director DMS seeks a single agency contact

Office of Efficient Government Contact Information Ronald Baker, OEG Liaison (850) 414-6755 ronald.baker@dms.myflorida.com Fred Springer, Interim Executive Director (850) 410-0978 fred.springer@dms.myflorida.com