State of Ohio - innovations.harvard.edu · - Co-led reductions of $2 Billion spend at DuPont increasing ROE from 4% to 27% - Implemented 3 e-Procurement systems. Most recent PeopleSoft

State of OhioTerry Tyler

Steve HunterJoe Secrest

• Engineering background –

process oriented

– 25 + years procurement / strategic sourcing

– DuPont– Ashland– Private Consulting– Nationwide

History of delivering significant results:- Co-led reductions of $2 Billion spend at DuPont increasing ROE from 4% to 27% - Implemented 3 e-Procurement systems

Most recent PeopleSoft Procure to Pay to 35,000 associates- Led savings efforts that delivered $126 Million to Nationwide last year.

Terry Tyler

Chief Procurement Officer, State of Ohio

How We Began

• Started Early– No idea on how Fed would distribute

• *Federal, State, Local Government and Community Organizations

– Knew interest would be tremendous• *Over 25,000 projects submitted

– Pile of money vs. 120 funding streams/180 programs– Dispersed through formula, competitive and

discretionary grants

How We Began

– Needed enterprise system to collect information– Assigned owners to every section of ARRA

• *What were guidelines, deadlines and requirements

– Recognized reporting/transparency/accountability would be extreme

*Audited by GAO (1 of 16 states)*Ohio IG*Auditor of State*Federal Accountability Board

– Procurement guidance to agencies due to decentralization

Stephen A. Hunter

State Purchasing Administrator,State of Ohio

Stephen A. Hunter (Steve) - CPPO [Certified Public Purchasing Officer]. Steve began working for the Department of Administrative Services, General Services Division, Office of State Purchasing in 1979, as a Quality Control Specialist. He was promoted to State Purchasing Administrator in 1985. He holds an Associates Degree in Wholesale Mid-Management. He worked in private industry as a sales representative for a paper wholesale company and in printing sales prior to joining the state of Ohio. Steve is an active member in NASPO, NIGP and the Central Ohio Organization of Public Purchasers (CO-OPP).

Office of Procurement Services

Procurement of Supplies & Services Using ARRA Funds

State Resources

Ohio Penal; IndustriesCommunity Rehabilitation ProgramCentral Pharmacy/FoodRehabilitation Services CommissionDAS Term Contracts

Negotiated

Term Contracts

Request To

Purchase

Release And

Permit

Purchase<

$50,000

Issue Purchase

Order

Purchase>

$50,000

Competitive Selection

Request for

ProposalsContract

ITB by Reverse AuctionContract

Invitation to Bid

Contract

MasterMaintenanceAgreement

State Term

Schedules

MultipleAward

Contracts

Controlling Board

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Process for Supplies & Services

Agency NeedState

Resources

1 Day

Purchase Order

Request To

Purchase

1-3 DaysDetermine

ProcurementMethod

Invitation to Bid

(30 Days)

Reverse Auction

(45 Days)

Request for

Proposal(120 Days)

1-3 DaysPrepare

ITB

5-7 DaysAdvertise

ITB

1-3 DaysEvaluate & Award Contract

1-7 DaysPrepare RAQS

5-7 DaysAdvertise

1-10 DaysEvaluate & Award Contract

5-10 DaysPrepare RFP

Min 21 DaysAdvertise

10-15 DaysEvaluate

1-14 DaysBest Final Offer, Award Contract

17 Days

60 Days

24 Days

Release &

Permit

StateControlBoard

No

Yes

State Term

Schedule

Expedited Process for ARRA Funded Projects

Domestic & In-State PreferencesSupplies & Services

Competitive Selection

♦

North America –

Canada / Mexico♦

United States -

50 States & Territories50% Rule

♦

Produced in Ohio♦

10 / 75% of employees based in Ohio♦

Border States (KY, MI, IN, PA, NY)

Minority Set Aside

Certified MBEs

15% Goal

Encouraging Diversity, Growth & Equity

Social and Economic Disadvantage

5% Goal

Small & Disadvantaged Business Programs

Community Rehabilitation Program

People with Work-Limiting Disabilities

Mandatory 1st Consideration

National Association ofState Procurement Officials

http://www.naspo.org/content.cfm/id/stimulus

Joe SecrestLegislative Director,Office of Management and Budget,State of Ohio

Joe Secrest is currently serving as the President of the Ohio Controlling Board and has management responsibilities for implementation of the ARRA in Ohio’s Office of Budget and Management. He previously served two terms as a county commissioner and five terms in the Ohio House of Representatives. He was also employed for ten years in the private sector with Ashland Inc. Joe received his Masters degree from West Virginia University and completed undergraduate work at Muskingum College in New Concord, Ohio.

American Recovery and Reinvestment ActOhio Office of Budget and Management

www.Recovery.Ohio.gov Ohio’s virtual headquarters for ARRA

• Clearinghouse for ARRA and Ohio information• Entry portal for expressing interest in funding• Central station for sorting all submissions to state

agencies

OBM’s Role for Implementation• 1512 Reporting• Risk Management through Office of Internal Audit• Providing support to agencies as they work to ensure

accountability, transparency, and timely reporting of ARRA funds

OBM Guidance to Date The following guidance to state agencies can be found at

www.OBM.state.oh.us

Guidance #1 –

Request for Program Deadlines

Guidance #2 –

Formation of Stimulus Teams

Guidance #3 -

Preliminary Reporting Guidance

Guidance #4 –

Assurance Statements and Certificates

Guidance #5 –

Risk Management & Accountability

Guidance #6 –

Awards and Cash Receipts

Guidance #7 –

ARRA Hub Reporting Guidelines

Guidance #8 –

Subcontracts and Subgrantees

Subrecipient 1512 Reports OBM Process Flow

1. Subrecipients receive a Sec. 1512 reporting form at the time the contract is signed or the award is granted

2. Subrecipients complete the form and submit to the recipient state agency in a timely fashion (likely five days after the close of the quarter)

3. State agencies enter both recipient and subrecipient reporting data into a centralized state reporting repository (likely within 7 days of the close of the quarter)

4. OBM aggregates the 1512 reports and submits to the Feds

Internal Control

• OBM’s Internal Audit division will utilize the• COSO internal controls framework used by• GAO when reviewing agency

administration• of ARRA funds

Internal Control

Inter-agency Information and Communication andRisk Assessment

• Has agency used a risk-based approach to identify strengths/vulnerabilities?• How are risks being mitigated?• Does ARRA funding present new or increased risks?• Sub-recipient risk assessment - appropriate use of ARRA funding?

ARRA Purpose

• Create and retain jobs• Invest in the economy

• Build a foundation for long-term economic growth

ARRA will support:

• Modernizing America’s Infrastructure• Enhancing Energy Independence• Expanding Educational Opportunities• Increasing Access to Medical Care• Providing Tax Relief• Protecting Those in Greatest Need

Stimulus Funding from ARRA• Approximately 120 funding streams• Funds dispersed through formula, competitive and discretionary

grants • Funds to be distributed by federal, state and local governments and

community organizations• ARRA provisions require rapid turnaround and implementation

www.Recovery.Ohio.gov

Ohio’s virtual headquarters for ARRA

Web Site Purpose

• Clearinghouse for ARRA and Ohio information• Entry portal for expressing interest in funding

• Central station for sorting all submissions to state agencies

AARA Accountability Provisions• The Act requires unprecedented provisions for transparency and

accountability in awarding and spending AARA funds • Ohio, like every other state, must implement provisions to identify

and prevent fraud, waste and mismanagement.• States will be required to post detailed information about ARRA

spending on the federal web site: www.recovery.gov