wa dept of enterprise services presentation march 2015
TRANSCRIPT
DES provides variety of support services to state government, Washington residents.
Did You Know?
• Expertise in information technology and printing
• Guidance for human resources and employee services
• Financial services
• Stewardship, oversight and planning of state facilities
• Managing mail, vehicles and surplus operations
• Public works and goods and services contracts
Introduction
Public works contracting: Across the state, DES manages nearly 800 design and construction projects worth more than $500 million per biennium (two year budget cycle).
Good and services contracting: DES oversees state master contracts with more than 1,200 private vendors who provide more than $2.6 billion worth of goods and services per biennium.
Categories of Procurement at DES
Introduction
DES has identified innovative, multi‐faceted approach to increase opportunities for small and diverse businesses.
We want to share our efforts in three areas:
• Legislative work• Public works contracts• Goods and services contracts
Our Future
Introduction
Legislative Work
Senate Bill 5203 would increase total value of work issued under Job Order Contracts from $16 million to $36 million.
Job Order Contracts: • Are administratively efficient.• Require 90 percent of work to be subcontracted out.
• 36 percent of subcontract work planned to go to diverse businesses.
• Individual work orders are less than $350,000.
2015 Legislation
Legislative Work
2016 Legislative Work
• We are developing action plan for 2016 legislative session.
• We are working to educate legislators.
• Our goal: Remove barriers so small and diverse businesses can more effectively compete for state contracts.
• Your input is critical.
Legislative Work
DES is considering current small and limited public works statutes:
• Increase the small public works maximum from $300,000 to $500,000.
• Increase the limited public works maximum from $35,000 to $150,000.
Ideas for 2016 Legislative Session
Legislative Work
We’re working on ideas now to meet coming deadlines for submitting proposed 2016 legislation.
• Did you know? To successfully pass a bill, it takes at least 18 months and extensive stakeholder work.
We Need Your Feedback Now
Legislative Work
Public Works Contracting
Public Works • DES provides capital design and construction management services for colleges and state agencies.
• In current two‐year fiscal period, there were nearly 800 design and construction projects worth more than $500 million.
Goal: Remove barriers so that small and diverse businesses can more effectively compete for DES public works design and construction contracts.
Public Works Contracting
Public Works Contracting
Public Works Contracting
Barriers Identified:• Lack of project information• Lack of established business relationships• Lack of familiarity with state processes• Untimely payment• Contract size• Bonding limitations• Retainage on payment
Strategies:• Build awareness• Policy• Contract language• Legislation
Public Works Contracting
Contract Values
Public Works Contracting
142
350
162118
$2.5 M$46 M
$86 M
$510 M
< $35,000 $35,000 <$300,000
$300,000 <$1 Million
> $1 Million
# of ProjectsValue (In Millions)
Contract Values
Contract Amount Contract Count
% Contract Count
Dollar value % total value
<$35,000 142 18% $2.46 million 0.38%
$35,000‐$300,000 350 45% $46.2 million 7.16%
$300,000‐$1million
162 21% $85.5 million 13.26%
>$1 million 118 15% $511 million 79.20%
Totals 772 100% $645 million 100%
Public Works Contracting
Outreach:• Quarterly events, project events and training.
Inclusion plans: • Required on contracts worth $1 million or more.• DES has 26 contracts valued at $172 million.• Boosting small and diverse business participation to 19 percent = $32 million in opportunities.
• 10 more projects valued at $80 million are pending.
Public Works Contracting
Public Works Contracting
Possible Improvements • Improved data collection and system for measuring results
• More technical support and outreach• Scored inclusion plans for contractor selection• Past performance • Timely payment requirements• Retainage and bonding changes
Public Works Contracting
Public Works Contracting
Smaller Construction Contracts• Contracts under $1,000,000• Small Works ‐ $300,000 or less• Limited Public Works – $35,000 or lessProfessional Design Contracts• Quick Select – $35,000 or less• On‐call Professional Services ‐ $150,000• Project Specific Selection – no limit
What’s Next?
Public Works Contracting
Goods and Services
Contracting
Government procurement creates economic opportunities for Washington business.
DES manages master contracts for wide range of needs:
• Information technology, communications and security. • Professional consulting, counseling and training services.
• Clothing and safety supplies.• Food, medicine and health supplies.• Fuel, transportation and facilities supplies.• And much more.
Goods and Services Contracts
Goods and Services Contracting
Look for Upcoming ProcurementsSAMPLE:
Current list is on DES web page: http://bit.ly/UpcomingProcurementsDES
Goods and Services Contracting
Vendor Registration
Sign up on WEBS!Washington’s Electronic Business Solution (WEBS) is the state’s online vendor registration system.
Keep your information current!
Get certified!• Department of Veterans Affairs• Office of Minority & Women’s Business Enterprises • Small business self‐certification in WEBS
Goods and Services Contracting
WEBS Registration Goals
Business Type Registration as of 3/25/2015
Goal –12/31/2015
Goal – Percent Increase
Small 6,726 7,700 14%Minority/Women 974 2,000 105%
Veteran 703 900 28%
All WEBS 33,968 37,000 9%
Goods and Services Contracting
During past two years, DES has been improving master contracting opportunities and assistance for small and diverse businesses.
• We are still listening and hope you will join us by sharing your ideas and feedback.
Goods and Services Contracts
Goods and Services Contracting
Before we can measure improvement, we need to accurately collect data.
We’ve got a good start – with more changes on the horizon.
We’ve made changes to Washington Electronic Business Solution (WEBS), state’s online vendor registration system.
Other data solutions on our radar:• Purchasing card data• Subcontractor data
Data Collection
Goods and Services Contracting
Improves transparency Emphasizes: Best value is not just about price!Helps streamline contracting processesPuts more rigor in analysis for delegating contracting authority to agencies– Includes a risk assessment.
Direct buy policyRequires training
– To help ensure businesses have consistent experience when dealing with any Washington state agency.
Procurement Reform
Goods and Services Contracting
A model plan to provide technical assistance to vendors will be designed.
Goal: Help state agencies find ways to increase their spending with small and diverse businesses.
Guidance on how to: • Simplify contracts• Improve outreach and technical assistance
Moving Forward
Goods and Services Contracting
Working to answer questions and explore new ideas.• Would unbundling some bid packages be helpful?
• For small businesses, are regional contracts more practical than statewide contracts?
• Could inclusion plans for large master contracts covering an array of commodities be structured so it opens up subcontracting opportunities?
Moving Forward
Goods and Services Contracting
As we work to boost support to the small and diverse vendor community:
Your feedback and ideas are vital for success.Please contact us:[email protected](360) 407-9390
Moving Forward