Procurement’s Role in Business Continuity Planning By Gregory Maynard - SLCSD Contributors: Nora Laudermilk – West Palm Beach, FL George Zsidisin – Michigan State University Robert Combs – Chandler, Arizona & Others

Presentation Goals: Provide A Background Provide Ideas Cause you to THINK

What is the business of your organization? City, County or State Public Services Public Safety Public School, College or University Education Student/Faculty Safety

What is your organization doing to insure that it will be around to provide these services? Planning

Business Continuity Planning What is it? “It is having the processes, procedures, escalation paths and backup support plans in place to ensure that the organization continues to operate should an interruption and/or crisis occur.”

Critical Elements of Continuity Planning Top management commitment Ongoing Preparedness Risk Assessment Speed and Responsiveness Other Considerations

Top Management Commitment Directives communicated to employees Commitment of Resources Assigned Accountability and Authority Established Measurement Metrics Dissemination of Information Adopting Policies and Procedures

Ongoing Preparedness Mandatory Training Briefings Drills Reviews and Update of plans Situations change People come and go

Risk Management Examine Likelihood & Potential Manmade: Terrorism, Power Outages, Chemical Hazards Natural: Floods, Tornadoes, Draughts, Earthquakes, Winter Blizzards Health: Avian Flu, Anthrax, SARS Infrastructures: Buildings and Locations Suppliers: Their ability to survive and perform Create a matrix

Risk Matrix Probability Likelihood

Speed and Responsiveness Separate Plans Emergency Response Disaster Recovery Flexible Responses Agile Contracting Simplified Procedures Mutual Agreements of Understanding FAR

Other Considerations Employee treatment Manual Operations vs. Automated Financial and Legal Impacts Political Impacts

What should be in it? Chain of Succession Pre-delegation of Emergency Authorities Emergency Action Steps Designation of Emergency Operating Centers (EOCs) Designation of Alternate Work Sites and EOCs Safeguarding Essential Records

Contents Continued Alert and Warning Procedures Emergency Public Information Protection of Resources, Facilities and Personnel Training and Exercises Recovery Priorities Web Site :

Continuity Planning Process Review Step 1 – Analyze Risk Identify Do Impact Studies Develop Mitigation Strategies Step 2 – Prepare Plans and Train Step 3 – Test the Plans Step 4 – Evaluate and Modify Step 5 – Repeat the Process

Any Questions ? Freeway Crash & Fire 5/07

What is our role in continuity planning? That Depends! On What Step? Planning (Mitigation & Preparedness) Response Recovery

PLANNING - HAVE YOUR OWN PLAN –. Everyone should be involved Talk about it – Practice it – Remember, there is a reason we should have earthquake & fire drills. When the water is rising, is not the time to look for a sandbag vendor.

Items To Be Addressed In Planning Workers/Employees and Their Families Facilities and Data Status and Backup Continuity of Business Inventory of Building Contents Damage Replacement Customers and Suppliers Disaster - Public Information

Disaster Manual 1.Procedures 2.Emergency Employee Information 3.Agreements with Other Purchasing Agencies: MOU & (PREP) 4.Procurement Card Information, Generic Vouchers 5.Warehouse Listing 6.Vendor Listing 7.Vendor Emergency Information 8.Contracts and Price Agreements 9.FEMA Documents 10.State Resources 11.Purchase Order Log 12.Maps by City & County

Other Tools  Contracts  Disaster Debris Removal & Disposal Services  Heavy Equipment Rental  Mold Remediation (Industrial Hygiene Services)  Generator & Other Equipment Rentals  Roof Repair and Replacement  General Construction Building Repair  Ice (in Summer); Blankets (in Winter)  Rental of Portable Toilets  Repair and Replacement of Fencing

Other Contracts Optional Contracts Canal Cleaning Food Catering Tent and Chair Rental Rental of Roll Off Trash Containers Warehouse stock of safety supplies Bottled Water Prescriptions Transportation – bus, taxi, & other Laundry supplies or services Mobile phones or phone cards Hygiene kits Plastic wrap

Other Tools Special set of purchase orders P E Listing and phones of key contractors and vendors Equipment rental, food, water, etc. Printout of all vendors by commodity List of essential personnel and cell phones Your Staff Key Agency Staff Key contracts, notify (time permitting) Debris, call and place on alert Monitoring, generators, equipment rental, etc.

More Things to Consider MOU – with other agencies local & distant Rent refrigerated trucks Have 2 days before storm and fill to capacity with bagged ice and food, time permitting Final warehouse/stock inventory Counts and Dollar Amount Listing of other Purchasing Agencies NIGP - Utah Chapter Directory EdPAC Directory Contracts and Price Agreements Copies in Binder Pre-printed Vouchers to give to displaced persons Inventories of what is in your building Copies in Binder For Insurance and replacement purposes Personal items too!

Communication Plan Radios COWs Cell sites On Wheels Three mile radius Place strategically Single most important item that will fail

PO’s, Procurement Cards & Vouchers  Manual P O system  Vouchers  Medical needs  Transportation needs  Procurement Cards (P-Cards)  Secured until disaster or used daily  Raise limits  Keep list at home or a secure place  Bank numbers

Training Exercises You must practice Training Exercises will bring out your shortcomings and help you gain confidence. The Process Outline

The Exercise Development Process ORIENTATION: Key players review plans & procedures, ask what if. DRILL – Test equipment & personnel TABLETOP: Key players react to a scenario – group problem solving FUNCTIONAL – Evaluate a function & Measure resource adequacy FULL-SCALE – large scale, top to bottom use of equipment & personnel, multiple agencies involved.

EVALUATION Review what worked and what did not. Make corrections. Prepare for the next exercise. Plan Exercise Evaluate

Response - Stay Calm Check to see that you and others are ok – help those needing assistance. If able, put your plan into effect. Check your phones Contact suppliers Respond to requests

FEMA GUIDELINES  Procurement must follow FEMA guidelines in order to ensure reimbursement from the federal government by:  Retaining original receipts and documentation  Making no contract or purchase contingent upon federal reimbursement  Making emergency p.o. or contracts “site specific”  Rent or lease equipment instead of buying  Document in detail all oral requests  Require that all bid, performance and payment bonds are issued

FEMA GUIDELINES Continued  Encouraging contractors to support local economy by including a provision that requires contractors to use materials and supplies and hire laborers to the extent possible within the disaster area.  Utilizing contracts for removal of debris or wreckage on fixed price or unit price Know the Rules!

FEMA CATEGORIES  Category A – Debris Removal  Category B – Emergency Protective Measures  Category C – Road Systems  Category D – Water Control Facilities  Category E – Building and Equipment  Category F – Utilities  Category G – Parks, Recreational, and Other

Disaster Related Charges  Was it damaged as a direct result of the disaster?  Is this needed as a direct result of the disaster?  Was the health, safety or welfare of people at risk?  What was damaged? Item, asset #, serial number, etc.  When was it damaged?  Why is this needed/ Power shortage, flooding, etc.  Example:  Incomplete: Floodwaters washed away a 20 foot section of road embankment.  Complete: Floodwaters washed away a 20’L x 5’W x 10’H section of earthen embankment along a secondary two-lane asphalt paved road, resulting in travel being restricted to one lane.

RECOVERY Any activity to return vital life-support systems to minimum operating standards and such activity designed to return life to normal or improved levels: Crisis Counseling Debris Removal Reconstruction Loans and Grants Rebuilding

DOCUMENT Before, During and After

Review

Decisions Remember that the most important decisions you will make with regard to an emergency are the decisions that you make before it happens. Thank You