State Procurement. Florida TaxWatch

Transcription

1 State Procurement Florida TaxWatch October 14, 2010

2 Procurement Success from GCSTF II Senate Bill 2386 Removed exemptions up to $125 million annually Increased use of EFT up to $24.5 million annually Enforce PPC $8 million annually Renegotiate contracts up to $215 million annually

3 Reduce Exemptions from Competitive Bidding SB 2386 removed certain types of services from the list of services exempted from competitive bidding requirements, including auditing services, academic program reviews, health h services, and Medicaid id services.

4 Increase use of electronic payment disbursements and receipts SB 2386 directs all agencies and the judicial branch to use electronic payment disbursement and receipts for all state t payments where possible.

5 Improve Enforcement of the Preferred Pricing Clause SB 2386 requires each state agency to review its contracts to determine if each contractor complies with the applicable preferred pricing i clause. Contracts, which h include a preferred-pricing clause and were executed, renewed, extended, d or modified d on or after July 1, 2010, must require an affidavit by the contractor attesting that the contract is in compliance with the preferred pricing clause.

6 Renegotiate Non-Client-Service Contracts SB 2386 requires each state agency to review and renegotiate existing contracts renewals to reduce contract payments by 3 percent.

7 Background on State Procurement

8 Procurement Statutes Statute Section Chapter 337 Chapter 255 Section Type of Goods and Services Professional Construction Services Transportation Construction Public Property Construction Non-Construction

9 Procurement Methods Single l source contracts Invitations to Bid Requests for Proposal Invitations to Negotiate

10 Procurement data

11 Over half of purchases are construction related Construction Purchases, 55% Total Non- Construction Purchases, 45%

12 Non-construction related purchasing system: A non-system system

13 Over half of non-construction purchases are made outside of MFMP

14 Over half of MFMP purchases were through State Term Contracts 15% STC 14% 4% 52% Competitive Exempt Sole Source Below threshold Competitive Non-STC 15%

15 Most competitive bid exemptions are for health care and services from Other Government Entities 5% 5% 33% 32% Other Professional Service Emergency Purchases Other Exempt Purchases 2% Health Care Services Governmental Entities

16 Recommendations

17 Increase Competition Remove (more) competitive bidding exemptions Require i justification i for sole source contracting

18 Improve State Term Contracts Reduce use of multiple vendors on state term contracts (to reduce price through negotiation) Require Local School Board utilization of state term contracts Remove (more) exemptions to competitive bidding

19 Increase Procurement Oversight Expand E d and enhance oversight of agency purchasing (conduct STC compliance auditing) Create/maintain Enterprise clearing house of all Agency Term Contracts Improve Internal Audit Oversight (through OIG)

20 FLAIR and MFMP Integration Integrate procurement information across the purchasing and accounting systems. Future data coordination improvements to the systems should include, at a minimum: Adding fields to FLAIR that capture the nature and method of each procurement, as well as the vendors providing these services; Assuring that the MFMP interface with FLAIR is accurate and updated; and Establishing a uniform product classification system for FLAIR and MFMP Establishing state term contracts for goods and services by product class.

21 Recommendations Summary Expand and enhance DFS oversight of agency contract management - conduct STC compliance monitoring Strengthen oversight of Agency Term Contracts require DMS approval of ATC and create/maintain a database of effective ATCs Strengthen Internal Audit Oversight through the Office of the Inspector General Remove (more) exemptions to competitive bidding Require single source justification i (to expand competitive i bidding) Reduce use of multiple vendors on state term contracts (to achieve best price through negotiation) Require Local School Boards to use state term contracts (to improve economies of scale and reduce costs/prices) FLAIR and MFMP integration

22 Additional Recommendations Reduce the number of goods and services exempted from competitive i bidding requirements Increase the use of state term contracts to achieve economies of scale Adjust annual budget appropriations to reduce fourth quarter dumping Dispose of unneeded state facilities and land holdings Restrict use of stay in place leasing Maximize use of leased space Consolidate management of small state vehicle fleets Utilize owner Controlled Insurance Programs (CIP) for construction projects Implement a temporary statewide moratorium on purchase of office supplies Expand use of Department t of Correction land for agriculture and other productive purposes