Procurement Transformation State of North Carolina Jocelyn Thornton, C.P.M. Transformation Project Manager April 24-25, 2012
Dec 31, 2015
Procurement TransformationState of North Carolina
Jocelyn Thornton, C.P.M. Transformation Project Manager
April 24-25, 2012
Background
On January 12, 2009, Governor Perdue issued Executive Order No. 5, which created the Budget Reform and Accountability Commission (BRAC).
At approximately the same time, the Office of State Budget and Management (OSBM) initiated a review of statewide procurement as a result of Executive Order No. 4, NC Open Book
The State has a complex set of procurement processes and systems
Decentralized structures exist, with little collaboration among the agencies to identify what improvements are needed
Lack of Central Compliance Resources, Stringent Training Standards
Project Vision
“Create a customer-focused enterprise to achieve increased procurement effectiveness, efficiency, and compliance resulting in significant financial benefit for taxpayers by reducing the costs of acquiring goods and services.”
Expected Benefits
Streamline procurement functions across state government by increasing efficiencies, leveraging buying power and reducing overlap of key functions.
Better value and more effective use of tax dollars
More consistency across the enterprise to leverage buying power
More efficient processes and systems to provide customers with what they need—when they need it
Employees working together to better serve their customers and the taxpayers
Guiding Principles
Best Value - Procure at the lowest total cost of ownership
Customer Focus - Address all stakeholders’ business needs
Delivery Excellence - Develop, maintain, and execute standardized, repeatable procurement processes and procedures
Compliance and Accountability - Enforce compliance with statutes, administrative codes, executive orders, and policies
Operational Efficiency - Align people, processes, and technology
Workforce Excellence – Build and maintain the right knowledge and skills
Strategic Planning - Strategically plan procurement activities
Six Cross-functional Teams
Change Management and Communications eight members representing six agencies
Contract Management and Compliance nine Members representing seven agencies
Policies and Procedures nine members representing seven agencies
Staff Organization and Training sixteen members representing ten agencies
Strategic Sourcing eleven Members representing six agencies
Governance eight Members representing five agencies
Contract Management and Compliance
Establish a standard contract management process
Create standard contract templates such as:• Contract close-out checklist• Contract file checklist• Contractor performance checklist
Develop and deploy a revised contract administration/monitoring guide
Finalize contract monitoring requirements, per SB 1213
Change Management and Communications
Consider communications best practices
Create standard communications vehicles
Ensure timely information sharing
Conduct readiness survey to gauge the effectiveness of initiatives, and identify issues
Closely align the change management effort with program leadership
Leverage Change Agents as a way of formalizing peer-to-peer information sharing
Leverage various forums to share successes and leading practices
Policies and Procedures
Responsible for recommending improvements to North Carolina procurement related statues and administrative codes to improve
consistency, streamline processes, and encourage best value procurement
Consolidate and streamline relevant statutes and administrative codes
Clarify rules and exemptions to statutes
Review and modify IFB/RFP/RFQ templates where appropriate
Staff Organization and Training
Charged with assessing current procurement training, organizational structure, job profiles, titles and existing career paths
Establish a Strategic Sourcing Group within State Procurement
Establish an Open Market Group within State Procurement
Establish an Operations group within State Procurement
Deploy standardized job titles and job profiles
Create a single purchasing manual for use by all state procurement organizations
Deploy a comprehensive procurement training program
Strategic Sourcing
Responsible for implementing a statewide strategic sourcing methodology
Focus on the initial commodity and service groups which will be sourced
Assess opportunities and prioritize Wave I, II and III categories
Solicit input from end users
Develop category strategy
Negotiate and develop sourcing recommendations
Implement agreements
Monitor and manage agreements proactively
Governance
Charged with recommending a structure, processes, and measurements to govern the procurement function after transformation
Recommend a Procurement Governance Team with representatives from State agencies, community colleges, universities, LEAs, and local governments
Develop a set of key procurement performance metrics
Continue oversight and guidance through use of a diversified steering committee
Technology Upgrade
Online catalog Improvement
Initiative began in October 2011 and had three primary objectives
Improve catalog content
Refine the processes utilized to develop new catalogs
Establish a continuous improvement program
Summary: Current Priorities:
Develop standard contract administration/monitoring guide
Develop standard procurement manual
Develop standard templates and memo’s
Deploy training and update websites for refresher training and reference
Establish tools for continual communication among agencies
Identify and recommend procurement related changes to General Statues,
Administrative Code and Operating Procedures
Develop key performance indicators
Prioritize categories for sourcing; statewide contracts (goods & services)
Methodology to save dollars and improve processed for tax payer
Develop modernized job classifications for purchasing positions
Outline purchasing professional career path
Conclusion
Long term process 2 – 3 years to implement numerous initiatives
No longer a project – Just how we conduct procurement
QUESTIONS
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