Purchasing and Procurement Training Project Overview and Update October 2, 2014 Melanie Buechel, DES Senior Contracts Consultant HE Comments by Patty Sikora October 16, 2014 BAR Meeting Pick a logo for the main page of your presentation. Delete the other logo.

Project Purpose and Vision The purpose of the Procurement Training Project is to develop and implement the curriculum, policy, registration and reporting mechanisms; and necessary supporting technology; if any, to meet the legislative mandates as described in RCWs 39.26.110. The project is broken out into smaller projects: Initial Training Phase, Training Program Development Phase, Foundation Phase, and to be determined Future Phase(s). The vision of the current Foundation Phase is to meet the legislative mandate by enabling state agency employees who are responsible for developing, executing, or managing procurements or contracts, or both, to complete Department approved training by July 1, 2015.

Legislation – RCW 39.26.110 RCW 39.26.110, Training, states: The department must provide expertise and training on best practices for state procurement. The department must establish either training or certification programs, or both, to ensure consistency in procurement practices for employees authorized to perform procurement functions under the provisions of this chapter. When establishing training or certification programs, the department may approve existing training or certification programs at state agencies. When establishing programs or approving existing programs, the department shall work with agencies with existing training programs to ensure coordination and minimize additional costs associated with training requirements. Beginning July 1, 2013, state agencies must require agency employees responsible for developing, executing, or managing procurements or contracts, or both, to complete department-approved training or certification programs, or both. Beginning July 1, 2015, no agency employee may execute or manage contracts unless the employee has met the training or certification requirements or both as set by the department. Any request for exception to this requirement must be submitted to the director for approval before the employee or group of employees executes or manages contracts.

Project Timeline Explain steps for developing PP101 Start 12/13/12 Finish 7/1/15 1st Quarter 3rd Quarter Initial Training Phase (Immediate Needs) 12/13/12 - 4/23/14 Training Program Development Phase 11/18/13 - 6/30/14 Foundation Phase 5/1/14 - 5/13/15 Phase 1 Class Content Development 5/1/14 – 10/14 Phase 2 Class Content Development (Approx) 7/31/14 – 2/15 Procurement Reform Legislation Effective 1/1/13 Training Advisory Group Established 3/23/13 Public Knowledge Engaged 11/18/13 Procurement 101 (Alpha/Interim) 4/30/14 Purchasing & Procurement 101 (Beta) 7/15-17/14 Class Rollout Phase 1 - Go Live (Tentative) 10/14 Class Rollout Phase 2 - Go Live 11/14 through 2/15 Future Phase(s) TBD 7/1/15 Today Explain steps for developing PP101 Initial draft was reviewed by internal DES – ACCO and MCC volunteers Project was restructured to include to a much greater extent, the TAG – review, revise, comment and approve “go-live” Then reviewed with TAG and rolled out a BETA with the Procurement Customer Advisory Group (PCAG) and TAG Extensive lessons learned and doing a revision for content flow and readability. PP101 should go live, after TAG approval in October. CM 101 should go live in November.

Project Organization Structure

Project Phases at a Glance 2012-2013 1 - Preliminary Planning and Visioning 06/2013 – 07/2014 2- Initial Training Phase (Meet Immediate Need) 11/2014 – 6/2014 3- Training Program Development Phase 06/2014 – 02/2015 4- Foundation Phase Post 07/2015 5- Future Phase(s) – Expansion on Core Training

Preliminary Planning and Visioning Procurement Reform Training Workgroup One of 18 Different Work Groups Established to Address Procurement Reform Legislation Group formed May 2012 Recommendations Submitted by Group September 2012 TAG Formation Representatives from over 20 Washington agencies and Institutions of Higher Ed March 2013 RFP for Training Development Vendor Two RFPs released August 2013 October 2013 Public Knowledge Engaged November 2013

Initial Training Sole Source / Emergency Contracts / Direct Buy Class designed for personnel who develop, manage, execute and/or file Sole Source, Emergency or conduct Direct Buy Agency Contract Reporting Contract Reporting Training for the initial pilot group and two opt-in phases. Procurement 101 Interim training covering overview of procurement requirements under chapter 39.26 RCW – Procurement of Goods and Services Sole Source, Emergency, Direct Buy - This two hour class is designed for agency and higher education personnel, who develop, manage or execute sole source and/or emergency contracts for goods and/or services. The first hour will provide an introduction to statutory and regulatory requirements and how they apply to agencies' real life contracting needs. The second hour will provide a review of the contract filing process from the initial writing stages to the sign-off process at DES, including a demonstration of the Sole Source Contracts Database (SSCD). Began offering in December 2012 Contract Reporting – The training was designed for the initial pilot agencies with reports due in October 2013 and Opt-in 1 in February 2014, reports due March 30, 2014, and Opt-in 2, with reports due on June 30, 2014. Training offered again in July and August 2014 statewide for the first official report due on September 1, 2014. Classes will continue to be offered yearly prior to September 1. Overview of Procurement and Contract Management in the State of Washington - This 6-hour class is designed for agency and higher education personnel who develop, manage and execute contracts for goods and/or services. The class will provide an overview and introduction to statutory and regulatory requirements under chapter 39.26 RCW, as well as best business practices, for competitive, sole source, direct-buy and emergency contracts.  Additionally, the training will cover topics, including but not limited to, delegation of authority, the competitive process, conflict of interest, exceptions, exemptions and critical thinking to determine procurement options available, development of statement of work, contract management and monitoring, risk assessment and mitigation, and transparency. This class did not meet the training requirements under RCW 39.26.110

Training Program Development Phase Project Vision Washington’s Procurement Training and Certification Program ensures that state procurement professionals, contract managers and executive management have the knowledge, skills and abilities to procure goods and services to support the business of state government. The Program will: Be adequately funded Communicate training and certification requirements for specific jobs Emphasize critical thinking skills and innovation Provide cost-effective and accessible training Provide creative and innovative courses Address adult learning styles Provide course materials that are easy to access and update Implement clear and transparent evaluation and testing processes Be sustainable and maintained over time Enable agencies to receive appropriate delegation of authority Allow for a train-the-trainer model and delegation

Training Development Phase Needs Assessment Results Information Gathering Interviews with DES staff and stakeholders Visioning sessions with TAG Focus groups with representatives of various Washington state agencies Survey of procurement professionals statewide with over 200 responses Requirements gathering for courses and certification Gap Analysis: inventory of current training curricula and materials available through DES and other Washington agencies Survey Results 75% of survey respondents indicated that purchasing or procurement (or both) accounts for over half their job responsibilities Training topics rated with high priority include: Complex and Risky Procurements Basic Procurement Overview Contract Management IT Procurements Scope & Requirements Definition

Training Program Development Phase Deliverables Parameters Learning Objectives Scope of Training Template/Format DES Standard Look & Feel Addresses: Readability ADA Course Content & Materials Presentation (PPT) Workbook or Resource Guide Instructor Orientation Guide Test Evaluation Course Evaluation Form Lessons Learned Session ADA requirements are ongoing. We are looking for additional assistance to make sure that the training addresses all ADA needs for the learners Test or assessment

Foundation Phase Course Content Development Learning Management System Phase 1 May – October 2014 Phase 2 July – February 2015 Learning Management System Registration Employee Training Profile Information Testing Reporting Course Roll Out Phase 1 Phase 2 Registration – usually done through the LMS Coordinators or training coordinators for each agency/institution of higher ed but it depends on the individual processes Patrick is here to talk about getting Higher Ed onto LMS – No cost Testing 80% pass requirement Will be allowed to take 2 times – then will have to retake class – continue until pass Allowed to test-out without taking the class

Foundation Courses Other Foundation Courses (Phase 2) Purchasing and Procurement 101 (Phase 1) General purchasing and procurement information Roles and responsibilities Procurement options and processes Purchasing processes Resources Scope vs. statement of work Agency roles and responsibilities and strategic alignment Components of contracts Contract Management 101 (Phase 2) Purchasing and Procurement 101 Lite Risk Assessment and Risk Management Approaches to Contract Monitoring Understanding Contract Terms and Conditions Corrective Action Communication with Contractors Employee vs. Contractor Principles of Public Contracting Other Foundation Courses (Phase 2) Small Acquisitions Executive Management Procurement Ethics WEBS Client Service Contracts

Anticipated Future Offerings IT Academy Rules, Regulations and Best Practices Competitive Procurement Negotiations Evaluation Strategies and Methodologies Small and Diverse Business Outreach Contract Termination Use of Master Contracts Performance Based Contracting More to be determined by DES, TAG and other Stakeholders Certification for Procurement Professionals Certification – will align with other certifying entities so that CE is not onerous

Required Attendees Broken Down by Typcial Work/Tasks Procurement Professionals Purchasing/Procurement Coordination Supply Chain Management Advises on procurement law\policy/procedures Develops procurement documents and contracts Develops specifications Vendor cures and terminations Negotiations Manages procurement risks Filing and Reporting Partners with and advises contract managers Contract Managers Initiate procurement need Develops deliverables and specifications Ensures budget resources Partner with Contract office to ensure compliance Manage risk and Monitor contracts Communicate with Contractor Provide technical assistance to Contractors Executive Management Ensures Agency compliance with procurement laws/policies and procedures Authorizes procurement Requests additional delegated authority and exemptions Executes contracts or delegates authority Sometimes manage contracts or participates in procurement activities Small Purchasers Conducts small procurement from Master Contacts P-Card purchases w/in limits of authority Conducts low risk direct buys Supplies inventory and stockrooms – office

Staff to Course Matrix Core Training Procurement Professional Contract Manager Executive Management Small Purchasers Ethics Purchasing and Procurement 101 Contract Management 101 Executive Management Purchasing and Procurement 101 Small Acquisitions

Purchasing and Procurement 101 3 Modules Module 1 – Purchasing & Procurement Introduction and Roles and Responsibilities Basics of purchasing and procurement in State of WA Introduces key purchasing and procurement steps Roles and responsibilities of stakeholders involved in procurement The importance of Contract Management Risk Management for procurements Briefly review basics on contract ethics Module 2 – Key Rules and Regulations and Purchasing & Procurement Decisions Brief history of Procurement Reform Procurement phases and key decision points Procurement options Exceptions and exemptions Direct buy Competition Sole Source and emergency procurements Amendments Module 3 – Purchasing and Procurement Processes Details of purchasing and procurements How to apply critical thinking to purchasing and procurement Understanding the importance of competitive procurement How to conduct competitive procurements Understanding the importance of transparency in procurement Purchasing and Procurement 101 – 3 days (no more than 4 hours each) – instructor led webinar CM101 – the same – facilitated instructor led webinar Executive management – 2 hours eLearning instructor led webinar, in person, eLearning Small Acquisitions – 1.5 instructor led webinar, eLearning Procurement Ethics – 1.5 – instructor led webinar, eLearning

Training Plan for Higher Ed General Discussion Jay Field, TESC Bill Santiago, EWU John Ginther, SBCTC Patty Sikora, GRCC

Learning Management System Patrick Seigler, DES Manager Learning Delivery System

Higher Education Sub-Committee HE submitted several training programs we as procurement professionals are involved in to include NIPG and NAEP. DES choose the Oregon Model which includes training and certification HE has reviewed the training and there are some changes we would make to include references to RCW 28B10.10.029 and modify it for our need

RCW 28B10.029 (1)(a) An institution of higher education may, consistent with RCW 28B.10.925 and 28B.10.926, exercise independently those powers otherwise granted to the director of enterprise services in chapter 43.19 RCW in connection with the purchase and disposition of all material, supplies, services, and equipment needed for the support, maintenance, and use of the respective institution of higher education.      (b) Property disposition policies followed by institutions of higher education shall be consistent with policies followed by the department of enterprise services.      (c)(i) Except as provided in (c)(ii) and (iii) of this subsection, purchasing policies and procedures followed by institutions of higher education shall be in compliance with chapters 39.19, *39.29, and 43.03 RCW, and RCW 43.19.1917, 43.19.685, 39.26.260 through 39.26.271, and 43.19.560 through43.19.637 .      (ii) Institutions of higher education may use all appropriate means for making and paying for travel arrangements including, but not limited to, electronic booking and reservations, advance payment and deposits for tours, lodging, and other necessary expenses, and other travel transactions based on standard industry practices and federal accountable plan requirements. Such arrangements shall support student, faculty, staff, and other participants' travel, by groups and individuals, both domestic and international, in the most cost-effective and efficient manner possible, regardless of the source of funds.

RCW 28b.10.029 continued (iii) Formal sealed, electronic, or web-based competitive bidding is not necessary for purchases or personal services contracts by institutions of higher education for less than one hundred thousand dollars. However, for purchases and personal services contracts of ten thousand dollars or more and less than one hundred thousand dollars, quotations must be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone, electronic, or written quotations, or any combination thereof. As part of securing the three vendor quotations, institutions of higher education must invite at least one quotation each from a certified minority and a certified woman-owned vendor that otherwise qualifies to perform the work. A record of competition for all such purchases and personal services contracts of ten thousand dollars or more and less than one hundred thousand dollars must be documented for audit purposes.      (d) Purchases under chapter *39.29, 43.19, or 43.105 RCW by institutions of higher education may be made by using contracts for materials, supplies, services, or equipment negotiated or entered into by, for, or through group purchasing organizations.      (e) The community and technical colleges shall comply with RCW 43.19.450.      (f) Except for the University of Washington, institutions of higher education shall comply with RCW 43.19.769, 43.19.763, and 43.19.781.      (g) If an institution of higher education can satisfactorily demonstrate to the director of the office of financial management that the cost of compliance is greater than the value of benefits from any of the following statutes, then it shall be exempt from them: RCW 43.19.685 and 43.19.637.

RCW 28b.10.029 continued (h) Any institution of higher education that chooses to exercise independent purchasing authority for a commodity or group of commodities shall notify the director of enterprise services. Thereafter the director of enterprise services shall not be required to provide those services for that institution for the duration of the enterprise services contract term for that commodity or group of commodities.      (2) The council of presidents and the state board for community and technical colleges shall convene its correctional industries business development advisory committee, and work collaboratively with correctional industries, to:      (a) Reaffirm purchasing criteria and ensure that quality, service, and timely delivery result in the best value for expenditure of state dollars;      (b) Update the approved list of correctional industries products from which higher education shall purchase; and      (c) Develop recommendations on ways to continue to build correctional industries' business with institutions of higher education.      (3) Higher education and correctional industries shall develop a plan to build higher education business with correctional industries to increase higher education purchases of correctional industries products, based upon the criteria established in subsection (2) of this section. The plan shall include the correctional industries' production and sales goals for higher education and an approved list of products from which higher education institutions shall purchase, based on the criteria established in subsection (2) of this section. Higher education and correctional industries shall report to the legislature regarding the plan and its implementation no later than January 30, 2005.

RCW 28b.10.029 continued (4)(a) Institutions of higher education shall set as a target to contract, beginning not later than June 30, 2006, to purchase one percent of the total goods and services required by the institutions each year produced or provided in whole or in part from class II inmate work programs operated by the department of corrections. Institutions of higher education shall set as a target to contract, beginning not later than June 30, 2008, to purchase two percent of the total goods and services required by the institutions each year produced or provided in whole or in part from class II inmate work programs operated by the department of corrections.      (b) Institutions of higher education shall endeavor to assure the department of corrections has notifications of bid opportunities with the goal of meeting or exceeding the purchasing target in (a) of this subsection.

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