1. DMS Office of
Efficient Government
Kick Off Meeting

2. 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

3. 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

4. Chapter 2006-224, Laws of Florida Florida Efficient Government Act of 2006
Creates new sections to
Focuses on “outsource” of services
Vendor to provide a service, in whole or in part, or an activity, as defined in section (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

5. 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

6. 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

7. Business Cases
The recently issued LBR instructions for FY 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

8. 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

9. 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

10. 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.

11. 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

12. 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.”

13. 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

14. 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

15. Office of Efficient Government Contact Information
Ronald Baker, OEG Liaison
(850)
Fred Springer, Interim Executive Director
(850)