Improving Procurement in Los Angeles

Transcription

1 Improving Procurement in Los Angeles MAYOR S OPERATIONS INNOVATION TEAM Mark Anthony Thomas, Director Shannon Hoppes, Project and Initiative Manager Juan Vasquez, Communications and Data Analyst

2 Our Team Initiative Goals Our Approach to Reform Key Findings Priority Initiatives Table of Contents Our Next Steps

3 i. Our Team Improving Procurement in Los Angeles

4 Mayor s Operations Innovation Team The Mayor s Operations Innovation Team ( 0-Team ) is a partnership between the Office of the Mayor and the L.A. Coalition for the Economy and Jobs to improve the City s business systems and efficiency. Our team s initiatives will deliver savings through better operations and maximize the City s assets to drive economic opportunity. Mark Anthony Thomas Director Shannon Hoppes Manager & Procurement Lead Juan Vasquez Analyst, Data & Communications Adam Bierman Manager & Wellness & Safety Lead Shmel Graham Manager & Real Estate Lead Cyrus Dorbayan Project Coordinator 4

5 ii. Initiative Goals Improving Procurement in Los Angeles

6 Previous Procurement Reform 1994 Resulted in $36 million, with an additional $3 to $4 million per year, in savings. The City consolidated commodity spending, inventory, warehousing and financial records. Yet, contracting for services, the largest component of Los Angeles procurement, remains decentralized among its departments.

7 Technology & Solutions Public-Private Partnerships

8 A Core Focus: Operational Challenges PROCUREMENT OPPORTUNITY: Need for holistic, structural leadership to drive integrated, City-wide metrics, performance, and leverage scale. Individual departmental contracting operations are not aligned to execute best practices. Prospective vendors have no central point of entry into the City s processes. Performance metrics and timeline goals are non-existent across the City s departments. Thus, this creates the environment for a 432-day services contracting process and builtin higher pricing to be the City s operational norm.

9 Operational Opportunity Streamline and improve procurement and contracting practices across City departments and proprietaries. $8.2 billion in total expenditures. Commodities and Bureau of Contract Administration are examples of improvements that positively impacted the city s procurement processes. A local-based emerging company s bid packet required to do business with the City.

10 Barcelona Chicago Helsinki London New York City Paris 4 San Francisco ; : Sio Paulo Singapore 10

11 ii. Our Approach Improving Procurement in Los Angeles

12 III. Provide Collaborative Leadership designing more effective management structure and achievement of procurement goals.

13 I. Quantified the City s Metrics and Operational Framework Process mapped the contracting process. Awarding Service Contracts As many as 7 City entities involved Driven by awarding department Collaborated with Departments Contract Coordinators and Mayor's Performance Management Unit

14 I. Quantified the City s Metrics and Operational Framework Studied individual department-roles in the procurement process. Awarding Service Contracts Awarding department is responsible for most of the tasks involved

15 I. Quantified the City s Metrics and Operational Framework Segmented open data by spend type, department, and item type Identified most frequent contract types, contract lengths, vendors with multiple contracts Segmented purchase orders (POs) and commodity spend with SmartProcure and Spikes Cavell Identified specific processes to optimize, and tools and practices to adopt Collaborated with Controller Office, General Services Division, and Data Firms. Our Team* Initiative Goals Our Approach Key Findings Priority Initiatives Next Steps

16 II. Understand existing operations and best practices. Learning From Peer Municipalities Los Angeles County Chicago Houston Boston Pittsburgh Philadelphia Engaged Industry Experts Accenture CityGrows Code for America Signature Creative SmartProcure CityMart Spikes Cavell Columbia University \VY Of 16 Our Team* Initiative Goats Our Ac iroach Key Findings Priority Initiatives Next Steps

17 Ml. Provide collaborative leadership Multi-Disciplinary Partnerships CODE AMERICA SmartProcure Our Team* Initiative Goals Our Approach Key Findings Priority Initiatives Next Steps

18 'll. Provide collaborative leadership Engaged City Leadership City Council Office of the City Administrative Officer Office of the City Attorney The Los Angeles City Controller Department of General Services Economic and Workforce Development Department of Water and Power Housing and Community Investment Information Technology Agency Public Works - Contract Administration Reports, Motions and Recommendations Council Motions Los Angeles City Controller Office of the City Administrative Officer Commission on Revenue Efficiency Inspector General s Reports Past Mayoral Efforts Our Team* Initiative Goals Key Findings Priority Initiatives Next Steps

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20 HOW CAN THE CITY BETTER CONNECT EVERYDAY SMALL BUSINESS OWNERS TO THE PROFESSIONAL SERVICES AND GROWTH OPPORTUNITIES THEY NEED TO THRIVE?

21 iii. Key Findings Improving Procurement in Los Angeles

22 Our Team* Initiative Goals Our Approach' 1 Priority Initiatives Next Steps

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25 iv. Priority Initiatives Improving Procurement in Los Angeles

26 A Roadmap to Reform Priority Areas & Initiatives Collaboration Engagement " Analysis ^ Best-Practices, Implementation Data Strategy Thought-Leadership Reform Implementation Our Team - Initiative Goals Our Approach Key Findings Priority Initiatives * Next Steps

27 Priority Areas & Initiatives I. Develop Vendor Intelligence and Procurement Performance Our Team Initiative Goals * Our Approach * Key Findings Priority Initiatives Next Steps

28 Our Team* Initiative Goals Our Approach Key Findings Priority Initiatives Next Steps

29 Our Team Initiative Goals Our Approach Key Findings Priority Initiatives Next Steps

30 Leverage Scale Leverage enterprise wide contracting and help the City operate cost effectively and efficiently. Define Supplier Diversity Success Define and operationalize success for supplier diversity and local preference programs. Our Team* Initiative Goals Our Approach Key Findings Priority Initiatives Next Steps

31 Our Team* Initiative Goals Our Approach * Key Findings Priority Initiatives * Next Steps

32 Priority Areas & Initiatives III. Establish Procurement Leadership in the City Risk Mitigation Ensure compliance and minimize risk across contracting practices. Procurement Leadership Designate or assign a Chief Procurement Officer to lead contracting excellence across the City s enterprise operations. Our Team* Initiative Goals Our Approach Key Findings Priority Initiatives Next Steps

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34 ill. Establish Procurement Leadership for the City