1. An Inter-Agency Audit Office of the Chief Inspector General ROAD MAP TO EXCELLENCE IN CONTRACTING

2. Background zContract Accountability, Who does it? yContract Manager yContract Monitor yQuality Assurance yAuditors xAuditor General xOPPAGA xCPA (A-133 Single Audit) xInternal Audit (Inspector General)

3. Background zContract Accountability, Who does it? yContract Manager yContract Monitor yContractor/Provider

4. Background zContract Accountability, Who does it? yQuality Assurance xMedical or clinical xInternal or external

5. Background zContract Accountability, Who does it? Auditors xAuditor General xOPPAGA

6. Background zContract Accountability, Who does it? Auditors xCPA (A-133 Single Audit) xInternal Audit (Inspector General)

8. zDepartment of Management Services zDepartment of Transportation zDepartment of Corrections zDepartment of Education zExecutive Office of the Governor zDepartment of Juvenile Justice zDepartment of Children and Families Working Together Seven Governor’s Agencies

9. A Different Approach What Do We Already Know? zDo not duplicate prior work. zAdd value zIdentify source of problems.

10. A Collective Analysis Based on Each Agencies knowledge of the contracting Problems. zApproximately 100 reports examined zSeven Governor’s Agencies zIncluded Auditor General and OPPAGA zThree year period z493 Findings analyzed and classified

11. The Contracting Process Where are the Problems? zNeeds Assessment zProcurement Methodology zContract Writing zPerformance Monitoring zPayment zContract Closure

12. What it Means and What Do We Do. In-put from procurement staff at seven agencies. zMet with each agency contracting staff zValidated findings zRoot causes Identified by agency staff and Auditors.

13. Report Recommendations. Based on agency staff and auditors analysis zWE FOUND: Procurement Rules, Statutes, Policy, Procedure developed piece meal over time in response to specific abuses or problems. zWE RECOMMEND: The replacement of the myriad overlapping and conflicting statutes and guidelines with one unified, effective system of controls. zMANAGEMENT RESPONDED: We agree and work has already begun. “MyFloridaMarketPlace” is in place and we have a goal to overhaul Chapter 287 which will result in a consistent and unified system of procurement controls.

14. Report Recommendations. Based on agency staff and auditors analysis zWE FOUND: The lack of centralized statewide direction in the procurement area has led to inconsistent and deficient contracting practices both among and within agencies zWE RECOMMEND: Department of Management Services accept the leadership bestowed by Florida Statute. zMANAGEMENT RESPONDED: We agree and we are in the process of filling the Directors position and have a renewed focus on our leadership and service role.

15. Report Recommendations. Based on agency staff and auditors analysis zWE FOUND: There is no statewide system to train or certify agency contracting personnel, nor are there incentives to encourage professional development zWE RECOMMEND: A statewide training initiative led by DMS be developed. In addition, we recommend incentives to encourage professionalism and certification for administrators, negotiators, monitors and managers. zMANAGEMENT RESPONDED: We agree, we will use our Office of Organizational Development in coordination with other state agencies to assess training needs and develop appropriate programs and incentives.

16. Report Recommendations. Based on agency staff and auditors analysis zWE FOUND: The state's corporate culture does not foster the sharing of best contracting practices among agencies. z WE RECOMMEND: DMS create and foster user groups of professional procurement staff that meet on a regular basis to share best practices and common problems. zMANAGEMENT RESPONDED: We agree, in conjunction with MyMarketPlace we have a created a “super-user” group to focus on and address common issues.

17. Report Recommendations. Based on agency staff and auditors analysis  WE FOUND: Agencies’ use of different processes and procedures in awarding and managing contracts causes the contract documents to vary considerably in format and content. zWE RECOMMEND: DMS, with the assistance of other agencies, develop standard contract formats for use by all state agencies. zMANAGEMENT RESPONDED: We agree and will revise many currently required forms and develop new ones as part of the formal rulemaking planned for the second half of 2003.

18. Report Recommendations. Based on agency staff and auditors analysis  WE FOUND: Inadequate systems exist for monitoring and rating vendor performance.  WE RECOMMEND: A uniform vendor monitoring and rating system be created which incorporates links to contract monitoring reports, vendor websites, closeout evaluations, and a method for other agencies to access performance evaluations. zMANAGEMENT RESPONDED: We agree and with assistance from other state agencies we will consider ways to develop and implement a uniform vendor monitoring system.

19. Report Recommendations. Based on agency staff and auditors analysis  WE FOUND: A formal procedure for agencies to perform and document needs assessments has not been developed by DMS. zWE RECOMMEND: DMS fulfill the statutory mandate to develop formal procedures for agencies to perform and document needs assessment. zMANAGEMENT RESPONDED: We agree, with input from state agency experts we will develop needs assessment procedures.

20. Report Recommendations. Based on agency staff and auditors analysis  WE FOUND: Lack of Expertise in Negotiating Contracts. zWE RECOMMEND: that legislation be proposed similar to the Truth in Negotiations Act to assist contract negotiators in determining whether the contractor’s proposal is reasonable.  WE ALSO RECOMMEND: that DMS offer a negotiating training program for state employees. zMANAGEMENT RESPONDED: Agreement with a discussion of issues but no commitment to action. However will develop a training program for employees.

21. Conclusion. What we want to happen. zAppoint a point person to review this report and its supporting documentation zDraft the directives needed to implement those recommendations authorized under existing legislation zDraft legislation, as needed, to enable implementation of those recommendations requiring statutory changes zTrack the implementation process and report its progress to the Governor

22. An Inter-Agency Audit Office of the Chief Inspector General ROAD MAP TO EXCELLENCE IN CONTRACTING