OMWBE Adhoc Advisory Committee
Committee Member List:
|
Name
|
Organization
|
Email
|
|
Antolin, Peter
|
Office of Financial Management
|
Peter.Antolin@ofm.wa.gov
|
|
Cabildo, Ben
|
AHANA
|
bcabildo@ahana.org
|
|
Chacon, Victor
|
Department of Social & Health Services
|
victor.chacon@dshs.wa.gov
|
|
Garrett, Ollie
|
Tabor 100/PMT Solutions
|
ollie@pmt-solutions.com
|
|
Glenn, Regina
|
Pacific Communications Consultants, Inc.
|
rglenn@pccus.com
|
|
Goldsby, Tom
|
|
tomyg@fairpoint.net
|
|
Hall Barta, Colleen
|
CH Sustainable Design and Support Services
|
chgocougs@gmail.com
|
|
Johnson, Grover
|
A. Philip Randolph Institute, Tacoma Chapter
|
gjlabororg@aol.com
|
|
Jones, Leslie
|
Sound Transit
|
leslie.jones@soundtransit.org
|
|
Lemos, Frank
|
LDC, Inc.
|
FLEMOS@LDCCORP.COM
|
|
Navarro, Luis
|
Port of Seattle
|
Navarro.L@portseattle.org
|
|
Nnambi, Brenda
|
Department of Transportation
|
nnambiB@wsdot.wa.gov
|
|
Reyes, Irene
|
Excel Supply Company, Inc.
|
glovelady@excelgloves.com
|
|
Schiantarelli, Vicky
|
Seattle Public Utilities
|
vicky.schiantarelli@seattle.gov
|
|
Smith, Cheryl
|
Department of Commerce
|
cheryl.smith@commerce.wa.gov
|
|
Ward, Chesca
|
University of Washington
|
qsw@uw.edu
|
|
Yamaguchi, Kendee
|
Commission on Asian Pacific American Affairs
|
kendee.yamaguchi@capaa.wa.gov
|
December 15, 2011 - OMWBE Ad Hoc Advisory Committee
discusses its Procurement Reform Recommendations with Department of Enterprise
Services (Kathleen Drew, Policy Advisor; and Ro Marcus, Asst. Director)
(Row 1: Tom
Goldsby, Committee-Co-Chair; Cathy Canorro, OMWBE Director; Regina Glenn,
Committee Co-Chair
Row 2: Grover
Johnson, Kathleen Drew, Olie Garrett, Ro Marcus, Brenda Nnambi, Colleen, Chesca
Ward, Frank Lemos, Vicky Schiantarelli, Victor Chacon, Irene Reyes, Luis
Navarro - Not Shown: Peter Antolin, Kendee Yamaguichi, Ben Cabildo,
Cheryl Smith)
In October of 2008, OMWBE
established the Ad Hoc Advisory Committee. The committee’s mission is to
exchange best practices on supplier diversity and inclusion and provide advice
to OMWBE’s director regarding the state’s supplier diversity practices. Some
of the issues we have been looking at are:
Ø
The need for a collaborative approach to address the real and/or
perceived tensions between strategic sourcing and supplier diversity.
Ø
Identify and examine barriers to inclusion.
Ø
Examine what tools, resources and authority the state has to
administer supplier diversity.
Ø
Make recommendations to create transparency, accountability,
efficiency and integrity within the state of Washington's procurement
processes.
The membership of the Ad Hoc
Advisory Committee is broadly based and reflects stakeholders in the minority,
women and disadvantaged business communities, as well as, supplier diversity
practitioners and advocates, local jurisdictions, state agencies and
universities.
While the committee continues to work
on new recommendations and refine others (See 2010 report to Governor), the following
procurement reform recommendations from our members are provided for immediate
consideration.
Please Note: If there is an
asterisk (*) after a paragraph title,
that indicates the recommendation could be implemented by executive order or by
a coordinated change in policy. Some may require more stakeholder work than
others.
1. Recommendation No. 1 - Centralized Contracting and Procurement Policy
OFM’s Roadmap Project
determined that with over 18 regulatory agencies and over 200 different ways
for agencies to purchase goods/services, procurement reform is required. OFM
found a need for coordination of contracting and procurement policy for the
efficient management and economic prosperity of the state. Washington State
agency purchasing rules are too complex for small business to participate on a
level plane with large businesses, who have the resources to invest in the
study of the highly complex government purchasing policies. The state’s
policies must be fair and effective while maintaining a balance between agency
needs and socio economic values. Thus a coordinated approach to the
development, administration and enforcement of contracting and procurement
policies between state agencies with contracting and procurement rule-making
authority must be considered. It is time for a serious look at adopting the
American Bar Association’s Model
Procurement Code and to discuss
the creation of a central leadership structure. Attachment No. 1 illustrates an adaptation of best
practices for Washington State.
1.1.
Uniform Policy
for all Contracting and Procurement (*)
Recent changes to statutes consolidating agency
contract/purchasing policy should be amended to encompass public works and IT acquisitions,
as well. Efficient management requires that all contracting and
procurement policy activities of state government complement each other and be
integrated. It should apply to all
agencies/educational institutions encompass all types (i.e., personal,
purchased, IT, public works, etc.) of acquisitions at all dollar levels (i.e.,
direct buys, informal, formal, etc.).
1.2.
Stakeholder
Participation (*)
Solicit and document input from the Washington business and user
agencies for all to see at least 60 days prior to any significant changes proposed
to the procurement and contracting process.
1.3.
Purchase Card
(credit card) Savings - a Win-Win (*)
If a vendor is able to provide a payment discount to offset
purchasing their card fees charged by the bank then the agency payment should
be made through OFM’s EFT within 7 days.
1.4.
Supplier
Diversity Performance & Accountability Emphasis (*)
State agencies are already required to implement supplier
diversity performance measurements, for MWBE certified firms for the state funded
projects. Expand that requirement to all local small businesses and empower
OMWBE to hold agencies accountable to their own realistic goals, as well as audit
the agencies’ spend on federally funded projects that require DBE and MWBE goals.
All purchases (purchase orders, contracts, etc.) by
government should be recorded in an accessible central location (e.g., WEBS,
iECMS, etc.) so all can see what government is purchasing and from who so each
agency can identify who is making the purchase and can begin to answer why, or
why not from a local business.
2.
Recommendation
No. 2 - Community Benefit Statement (*)
Adopt a community benefits
statement that lays the foundation for public/private sector partnerships that
create successful relationship between government and small business
communities.
To assist with the implementation of
Substitute Senate Bill 5723 agencies should meet with Community Organizations
and Washington small businesses in a good faith, reasonable effort to develop
strategies for implementation of the policies and programs. A working group of
representatives should meet quarterly. At such meetings agencies Community
Organizations and Washington small business my raise issues related to
implementation, in an effort to facilitate open dialogue, resolve
implementation challenges, and advanced the goals of both the Community
Organizations and Washington small businesses, and agencies
2.1.
Locally-Owned
Businesses (*)
Where applicable bids should
require contractors to facilitate a meeting(s) with Community Organizations to
discuss ways to establish a list of Washington small businesses and types that
may be needed, and develop a plan for identifying and recruiting additional
Washington small businesses.
2.2.
Local Hiring (*)
State contracts should require contractors
to work in good faith with local communities to provide affirmative
opportunities for the hiring of local-residents and create a conduit for hiring
qualified minority and women apprentices.
2.3.
Master Contracts
(*)
Master contracts eligible for renewal after SSB5723 was enacted should
be rebid, affording Washington small business an opportunity to contribute.
3.
Recommendation
No. 3 - Register Washington and small business.
Legislate authority, funding and
resources (FTEs) to provide for a fee- based registration of small businesses.
3.1. Use One Definition
A single state of Washington definition of a small business is
needed. Enough data should be collected which will give us a baseline for
expanding the definition of small business. For example: We may
want to implement a uniform standard for all industries or, provide for authority
to adopt size standards based upon specific industries similar to that used by
OMWBE for the state MWBE program.
3.2.
Use Washington
Small Business First for Direct Buys (*)
In GA’s response to the Q&A portion of the 8/7/09General
Administration biweekly broadcast they said to “restrict competition to
Washington state small businesses so as to fulfill the intent of SSB5723”.
Agency staff should have ready access to a list by commodity of small business
as defined by SSB5723, as well as Washington Businesses in general as has been
previously defined by Washington Department of General Administration. We can then begin direct buys from local
businesses for established best/fair pricing.
4.
Recommendation
No. 4 - Quick Pay.
4.1.
Subcontractor (*)
A
contractor should pay all owed to any subcontractor for satisfactory completion
of the accepted work within 20 days of receipt of payment by an agency.
·
Reference the Small Business
Administration’s (SBA) proposed rule to increase oversight and enforcement of
small business subcontracting plans.
4.2.
Prompt payment
discounts (*)
Prompt
payment discounts should be less than 15 days and not 30 days.
·
Reference the Presidents executive
order, September 14, 2011.
4.3.
Online Portal (*)
Provide
for faster payment through the use of online portal
5.
Recommendation
No. 5 - Promote Local Purchasing (*)
It is time we learn that Washington small businesses are our most
vibrant partners in economic development. With this knowledge we can build a
foundation for economic success that we will all enjoy. Attachment No. 2 comes from a study that illustrates how
purchasing locally strengthens our economy and builds a better, more sustainable
nation. Here is link that will provide more information on the study:
http://www.localfirstaz.com/studies/local-works/index.php
5.1.
Promote Recirculation
of Tax Dollars (*)
Every day state and local governments purchase goods and services
offered by Washington small business from somebody else. Every time they do,
the existence of the very programs they are charged with managing are
threatened. Businesses contribute most of the revenue state and local
governments collect each year; nearly half of our jobs are in companies with
less than 100 employees.
Attachment No. 3 illustrates a change to one statute. At a minimum RCW 39.30.040
should be amended to allow
all state and local governments to consider all corresponding tax revenue gains
on purchases from qualified Washington small business. Current purchasing statures allow us to
consider best value in our evaluations and it can be argued a change in the statute
is not required, but it would be clearer, if it were changed. Here is a link to the current statute:
5.2.
Inclusion
Planning (*)
Require all respondents to formal bids to submit a
measurable “Inclusion Plan” which documents
their good-faith efforts to include local small, minority and woman owned businesses when
subcontracting.
Write commodity specific bid language that encourages and provides
incentives to large corporations to include Washington small business in
distribution, manufacturing, etc.
5.3.
Unbundle (*)
Require and
document the due consideration given to breaking a project into its component
elements to determine which of those components may be subcontractable. For
example: You may want to unbundle contracts in some commodities that exceed
$2,000,000 annual spend.
5.3.1. Fee Schedule (*)
Convenience contracting should include a cluster of qualified
local and minority owned companies that can sell goods and services for a not to exceed price listed on a
fee schedule. The Department of Social & Health
Services, the Department of Labor & Industries and others use an application
process where any qualified business can participate.
5.3.2. Multi-State Contracts (*)
When looking at economies of scale through multi-state
contracting we should measure the value of local purchasing first and post a report (i.e., jobs lost, taxes lost,
local revenue lost, etc.) on the impact to our local economy prior to use of a large
(multi-state) contracts with out of state/country firms. An open ongoing
discussion with local businesses is imperative.
5.3.3. Shopping Mall (*)
Host an online shopping mall for small and OMWBE- certified
firms that could facilitate quick pay, Direct Buy acquisitions.
5.4.
Reform BEST BUY
(*)
Reform the BEST BUY procedure to encourage local and certified companies
to demonstrate community value (cost) and performance benefits to state
agencies for their consideration.
6.
Recommendation
No. 6 - Best Practices
Nearly every agency’s process for purchasing is different.
Currently a uniform way to access all agency requests for purchases is not
possible. In some cases the state has implemented enterprise procurement
processes. Best practices such as these described below should be expanded, while hundreds of
other methods should be discouraged.
6.1.
WEBS (*)
SSB5723 requires every agency to use WEBS, if only for high dollar
purchases. WEBS is a step in the right direction but a large portion of the
purchasing is still done off WEBS (i.e., direct buy, fee schedules, etc.).
If we want to quickly establish real attainable goals and
increase the inclusion of Washington small businesses in purchases, the
single most important thing we can do is encourage Procurement Reform
executive sponsors to expedite a five step expansion of the states Internet
vendor registration and notification system, Washington's Electronic Business
Solution (WEBS).
Step 1
Require full utilization of WEBS features (i.e., posting bid
documents, dollar amounts, posting awards, goal setting, etc.)
Step 2
Notify
vendors of all bid opportunities, regardless of the amount.
Step 3
Establish
more pools of prequalified vendors for specific commodities and require
notification of all prequalified vendors in that commodity of every bid
opportunity.
Step 4
Require
vendor notification (i.e., purchase orders, etc.) of all purchases via WEBS,
not just those that require bidding. All purchases (purchase orders, contracts, etc.) by government
should be recorded in an accessible central location (e.g., WEBS, iECMS, etc.)
so all can see what government is purchasing and from who so each agency can
identify who is making the purchase and can begin to answer why, or why not
from a small business
Step 5
Provide a list on WEBS of small M/WBE Washington
businesses by commodity that agencies can elect to do a “Direct Buy” or solicit
bids.
6.2.
Prequalify (*)
Qualifying once enables agencies to draw from a pool of firms when
goods and services are needed and does not require an extensive bid process, if
any, every time they are needed by every agency.
While they should accept ongoing applications from firms instead
of an annual refresh, DIS prequalified IT contracts simplify, greatly, the
complex Personal and Purchased services procurement process under a single
process for all to use. The state should establish more pools of commodity
specific pools of qualified firms and establish goals for inclusion of at least
proportionate participation by Washington small and certified firms within the
pools.
·
Require notification of all
prequalified vendors in that commodity of every bid opportunity.
·
2 tier contracts do not allow new
firms and opportunity to participate but every 1-6 years. This practice limits
competition. While prequalified contracts are an excellent tool (best
practice) and should continue, 2 tier prequalified contracts must allow
ongoing participation by new qualified vendors. Refreshing every six
years or even annually is not enough.
6.3.
Performance
Measurement (*)
DIS, L&I and other agencies have implemented an enterprise
contractor (not monitored or recorded) and buyer (iECMS) performance
measurement tools that can be easily expanded across all agencies.
6.4.
iECMS (*)
Over 16 agencies have begun using the same contract tracking
system, iECMS. This should be expanded and require all agencies to use the
online buyer performance measurement tool available in iECMS or its
predecessor.
1.1. Breaking a project into its component elements to
determine which of those components may be
subcontractable and
6.5.
Pre-Bid
Conferences (*)
Require holding pre-bid conferences when possible, especially
whenever there are subcontracting opportunities. For example;
·
Agencies should justify why they
are not holding pre-bid conferences or
·
Offer them on request by pre-qualified
bidders or...
7.
Proprietary
Information & Public Disclosure (*)
At a minimum, to enhance
partnerships and communication, we should adopt the following language in government bids:
In order to protect the integrity of the
contracting process, which is a vital state interest, responses will not be
disclosed until after award and signing of a contract. It is an agency’s duty
to conduct the state's business in such a way as to protect the public and
develop specific strategies to meaningfully involve small business on specific
projects. Many of our most innovative and promising projects include
partnerships that involve a small business(s).
·
In order to so protect, the Agency
will not disclose the content of any responses to the Request for Information
(RFI) and/or any Request for Proposal (RFP) before a contract is signed. This
will ensure fair competition without undue advantage to any bidder leading to
private gain and public loss.
·
In order to promote small business
involvement, enhance partnerships and communication, the name of respondents to
the Request for Information (RFI), any resulting Request for Proposal (RFP)
will be disclosed and/or name of the firms who submit a letter of intent.
8.
Vendor
Registration & Licensing
A central collection point for vendor registration, filing (i.e.,
taxes, reports, invoicing, etc.) and licensing would do much to eliminate
inefficiency in state government (i.e., L&I, DOR, ESD, WEBS, OFM, DOL, DFW,
DOH, etc) many agencies even require the same business to register multiple
times and provide the same information over and over again. You could paper
the walls of the legislature with the redundant paper work from
one Washington business from one year.
9.
Training (*)
Create a two-way relationship. Teach vendors how to be a good
contractor and agencies how to be a good customer.
Require measurable supplier diversity goals and mandatory supplier
diversity training. If goals are not attained, require an annual refresh.
Acknowledge publicly those state agencies or contract
administrators that have embraced Supplier Diversity and have significantly
demonstrated progress and achieved measurable results.
Identify benchmarks and best practices across the nation regarding
Supplier Diversity and Procurement.
Retrain Purchasing Agents and Credit Card Holders to solicit FIRST
from local and minority owned companies.
November 10,
2011
