County of Santa Clara

Transcription

1 County of Santa Clara Office of the County Executive 2310 N. First Street, Suite 201 San Jose, CA Telephone Fax DATE: April 11, 2019 TO: THROUGH: FROM: SUBJECT: Finance and Government Operations Committee Miriam Singer, CPPO, FCCN, Chief Procurement Officer Alice C. Bailey, C.P.M., CPPO, Director of Procurement Fiscal Year Procurement Budget Proposal The is requesting additional funding in the amount of $1,247,204 for ongoing expenses for Fiscal Year The following Executive Summary provides detail of this request by functional area. Training: The is recommending a standardized and enhanced professional development curriculum to build and strengthen the skills of procurement professionals to enable to move the County s procurement function from tactical to strategic. Title FY 2020 Ongoing Total GF Impact Training $14,000 $14,000 Travel $10,500 $10,500 TOTAL $24,500 $24,500 Professional Procurement Team: An increase in the staffing levels is needed to support the objectives of the procurement transformation and ensure that client departments needs are meet on a timely basis. Procurement has secured approval for the implementation of a new strategic level position classification series that is essential to the development of required procurement skill sets. In FY2020, the proposed staff are required to sustain the success and build upon the current and new procurement initiatives including the assumption of core contracting functions to support O Connor Hospital, Saint Louise Regional Hospital and the DePaul Health Center. Procurement will implement mapping of existing technology tools to determine the best business solutions for the new Countywide ERP solution. Board of Supervisors: Mike Wasserman, Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitian, County Executive: Jeffrey V. Smith

2 Title FY2020 Ongoing Total GF Impact Add 2.0 FTE Strategic Sourcing Managers in Central Procurement $473,126 $473,126 Add 4.0 FTE Buyer I/II/III in Central Procurement $544,004 $544,004 Add 1.0 FTE Procurement Business Solutions $205,574 Director in eprocurement $205,574 TOTAL $1,222,704 $1,222,704 2 of 2

3 County of Santa Clara Office of the County Executive 2310 N. First Street, Suite 201 San Jose, CA Telephone L-7400 o Fax February 15,2019 TO THROUGH: FROM: Jeffrey V. Smith County Executive Miriam Singer, CPPO, FCCN, Chief Procurement Offi cer Alice C. Bailey, C.P.M., Director of Procurement SUBJECT: FY 2020 Budget Submittal - Budget Unit 118 Procurement has made significant strides towards improving procurement operations and supporting the success of 45 County agencies/departments in providing services to our community. The Department's efforts emphasize consistent communication with our client departments, improved open and competitive solicitation processes, and expanded use of technology, market research, and professional development resources to implement procurement methods that lead to best value contracts. The past fiscal year's efforts have resulted in the implementation of recognized procurement best practices including aggregation of spend and strategic utilization of market research throughout the entire contracting process cycle. Procurement, together with Office of Countywide Contracting Management, embarked on several initiatives this year including standardized professional development offerings, assertive vendor outreach, business process reviews, development of standard solicitation and contract documents and advance notice of non-competitive solicitation to promote competition in order to reduce reliance on non-competitive contracts. The County has also benefited from Procurement's expanded negotiations and savings strategy. To date, Procurement's negotiation activities have resulted in a tangible cost savings of over $19 million through dynamic negotiation techniques and best practices. Staff will continue to work collaboratively with client departments to improve the level of proficiency of purchasing professionals along with the quality of contracts to support countywide business operations. This includes a partnership with Office of Budget & Analysis to forecast purchases business needs through Advance Acquisition Planning. In FY 2020, Procurement plans to assume the core contracting functions to support O'Connor Hospital, Board of Supervisors: Mike Wassermary Cindy Chavez, Dave Cortese, Susan Ellenberg, S. Joseph Simitiaru County Executive: Jeffrey V. Smith

4 Saint Louise Regional Hospital and the DePaul Health Center with over 490 new contracts being assumed and actual participation in the Transitional Services Agreement with Verity, Valley Medical Center staff, as well as, County Counsel. In addition, several hundred new contracts have been identified which need to be established, also, amendments to existing County contracts. The Department's responsibility will continue for the oversight and management of the expanded County hospital system. To support continuation of these initiatives, Procurement is implementing a new strategic level position classification series which is essential to the development of robust, effective and relevant procurement skill sets needed. A thoughtful, careful add/delete process recently approved by Employment Services Agency is currently being implemented through recruitment. The recommends the following additional staffing and funds to serve our clients: l. Strategic Sourcing Managers - 2 positions The County will benefit from the positions requested in we have needs to address to move to strategic model as an introduction in conformance with the transformation process, as well as, full and open competition and by doing so, increase quality and quantity of services provided. The hiring of the Strategic Sourcing Managers is the next stage in the implementation of the business improvement initiative for the County's procurement and contracting function. Strategic sourcing and the associated positions utilize a long-term approach to procurement decisions, not just basing decisions on availability and price, but considers the impact on the larger organization, total cost of ownership, supplier relationship management, and forecasts foreseeable changes in price levels, availability, and markets. 2. Buyers llilllll - 4 positions The addition of the four alternately staffed Buyer llllllllprovide necessary resources and support for the increasing workload in the Centralized Section. The buyers are requested in support of the centralizedteam in gathering costs savings, ensuring compliance and cycle time analytics for reporting to management. Continued countywide Procurement guidance, support and actions require unique skillsets, training, and time resources. 3. Procurement Business Solutions Director - I position The Procurement Business Solutions Director will benefit the County by developing the County's strategic plan, through analysis and recommendation of improvements in current business processes, consistent with the County's mission and ongoing changes in a variety of policies and procedures. This position will lead the countywide procurement workflow analysis streamlining and requirements development of the Enterprise Resource Planning (ERP) system that supports countywide procurement staff and activities using various procurement modules and other tools to reduce procurement cycle times, as well as ensure that ERP implementation best suits the County's operational needs in the area of supply-chain management. 2

5 FY 2020 recommended funding for these position requests, inclusive of services and supplies without attrition savings, is 51,247,204, and requested proposed staff, considering attrition to date of the seven (7) positions is $94 I,528. The requested proposed staff are needed to sustain the success and build upon the current and new procurement initiatives. This request is being made after careful assessment of the current resources and forecasting of short and mid-term needs to support procurement activities essential to our important business initiatives. It is respectfully requested that you review and consider the recommendations for additional positions and professional development for Fiscal Year 2019-'20. Should you have any questions or suggestions, please do not hesitate to contact me. Thank you for your consideration. Cc: Miguel }r4ërquez, Chief Operating Officer Theresa Therilus, Deputy Director of Procurement Amy Sardella, Financial and Administrative Services Manager MaryAnn Barrous, Budget and Public Policy Analyst a J

6 Program Chart BU118 Chief Procurement Officer Miriam Singer Alice Bailey Director Theresa Therilus Deputy Director Fiscal and Administration Procurement of Goods, Related Services and Non- Professional Services eprocurement Property Disposal

7 Description of Major Services The provides central services to the County by purchasing and contracting for goods and services for County operations. The Department provides an open and competitive process for the vendor community to earn our business and establishes quality contracts for products and services with value-added services. In addition, the disposition of personal public property is managed and administered by Procurement. The vision of the is to achieve the highest standard of professional procurement through integrity, trust, and ethical practices. Procurement Services Strategically source, negotiate and procure goods and services for the County using best value. Provide training, consulting, and helpdesk support and tools and templates for countywide decentralized contracting for professional services. Review, approve, and execute service agreements-initiated by departments and support the Office of Countywide Contracting Management with the review and approval of exceptions and exemptions to bidding for Board contracts. Manage countywide implementation and training for the Procurement Card, Field Purchase Order, and eprocurement systems. Manage rebate programs and other discount programs for selected contracts as negotiated for goods and equipment. Properly dispose of personal public property no longer needed by departments by auction, re-use and recycle options. Aggressively pursue cost saving measures and risk management. Pursue vendor outreach opportunities to promote full and open competition. The Centralized Contracting Division strategically source, negotiate the purchase of, and procure goods and services for County operations. The Centralized Contracting Division promotes fair and open competition, procures quality products and services, and meets the needs of County while maintaining public trust. The Centralized Contracting Division ensures fairness and equal access to business opportunities in the County and promotes the most cost-effective use of public funds. The Centralized Contracting Division manages the procurement activities related to all commodities, such as information technology, telecommunications, office technology, facilities, institutional, and medical patient care supply chain contracting activities.

8 The Decentralized Contracting Unit providing countywide contracting needs for training, guidance, and review and approval processes for solicitation and contracting activities/functions for professional and specialized services. The Property Disposal Division disposes of County surplus personal property properly through reuse and redistribution, sales and auction to the public through contractors, donation to the local nonprofit organization or government entities, or recycle in an environmentally and fiscally responsible manner. The eprocurement Division manages and maintains enterprise applications for the County. In addition, the eprocurement Division provides internal IT operations support to the, manages and maintains the Procurement's intranet and Internet sites for the County. Measures of Success Increase Competitive Bid Process The will work to decrease the number of non-competitive contracts by 10% in the next fiscal and increase the number of the competitive contracts awarded by the County of Santa Clara. Data will be compiled and tracked to measure this performance target. Cost Savings and Improvements through Negotiated Contractual Agreements The will promote use of negotiations in non-competitive and competitive process in order to realize tangible cost savings and contractual enhancements to benefit the county. Cost savings and other improvements to the contract(s) will be tracked and reported. The second-year target for negotiated savings is 5 million. Professional Development of Countywide Staff and Vendor Community The department will track the number of trainings and professional development instances for countywide staff and the vendor community with an outcome goal focused on achieving a progressive competition business culture to secure high-quality services and commodities at the very best price countywide.