Project Management Framework by i9GHcN

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									Department of General Administration




                   Project Charter
                               for
              Procurement Reform


                              Revision # 12
                                 Document Revision History

 Revision        Date                Author                       Description of change

 1               20080825            Vanessa Simpson              Initial Draft

 2               20080903            Servando Patlan              Second Draft

 3               20080905            Howard Cox                   Third Draft

 4               20080908            Servando Patlan              Incorporate input from GA
                                                                  Director Linda Bremer
 5               20080910            Servando Patlan              Added a Table of
                                                                  Contents
 6               20080915            Servando Patlan              Incorporate input from
                                                                  Procurement Reform
                                                                  Work Team member Becci
                                                                  Riley.
 7               20080916            Linda Bremer                 Readability for outside
                                                                  understanding
 8               20080917            Servando Patlan              Finalize Input

 9               20080926            Servando Patlan              Align Procurement Reform
                                                                  Project to Eclipse study
                                                                  recommendations,
                                                                  performance measures,
                                                                  and Roadmap Core
                                                                  Financials Project.
 10              20081008            Servando Patlan and          Clarification for flow and
                                     Vanessa Simpson              format.
 11              20081015            Servando Patlan              Finalize Input & Reconcile
                                                                  to Excel Project Workbook
 12              20081020            Servando Patlan              Revise Risks


Note: A glossary of terms can be found in Appendix A.




C:\Docstoc\Working\pdf\0e36aa57-edf5-4ad7-8f1c-d973ba91756c.doc
Table of Contents


Background ..................................................................................................................... 1
Procurement Reform Begins ...................................................................................... 1
Vision................................................................................................................................. 2
Goals ................................................................................................................................. 2
Surveying the Environment......................................................................................... 2
Lessons Learned – Pilot Project ................................................................................ 3
Next Steps ........................................................................................................................ 4
Scope................................................................................................................................. 5
Governance ..................................................................................................................... 6
Project Organization ..................................................................................................... 7
Assumptions ................................................................................................................. 10
Constraints .................................................................................................................... 11
Performance Measures/Outcomes .......................................................................... 12
Risk Analysis................................................................................................................. 12
Critical Success Factors ............................................................................................ 13
Acceptance .................................................................................................................... 14
Appendix A: Glossary ................................................................................................ 15
Appendix B: Major Washington State Purchase Authorities .......................... 17
Appendix C: Procurement Reform Project Source Materials ......................... 20




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                                      ii
Background

      Washington state procurement authority is dispersed by type of acquisition
      among multiple statutes, across many state agencies and various federal
      authorities. The complexity of procurement regulation impedes agencies’
      abilities to efficiently and effectively manage acquisitions for state
      government operations. See Appendix B for The Major Washington State
      Purchase Authorities.

      Reform efforts over the years, include
        The Statewide Procurement Design Team in 1995-1996,
        The Statewide Procurement system project (TUPS) in 2000-2002, and
        Roadmap Procure-to-Pay in 2006.

      Results for these have been difficult to achieve due to the complexity of the
      procurement policies and practices within Washington State government.
      Each of the regulatory agencies, which include GA, OFM, DIS, and PRT,
      independently develop, administer and enforce policies governing how state
      agencies acquire goods and services. The difficulty is compounded by
      individual agency authority for various procurement areas. The Roadmap
      Project1 has identified the need to address these problems as a prerequisite
      for further investment in enterprise business technology for the state.

Procurement Reform Begins

      In late 2006, the Governor’s Central Services Subcabinet directed the
      formation of the Procurement Reform Team consisting of assistant director-
      level representatives from the regulatory agencies, to address the findings of
      the Roadmap “Enterprise Business Process Modeling and Scoping” Report
      submitted by Eclipse Solutions on June 21, 2006. The Department of
      General Administration was given the lead role to coordinate the
      Procurement Reform Project.

      The Procurement Reform Team assumed a decision making and steering
      committee role and directed the formation of a Procurement Reform Work
      Team to be led by GA in doing the procurement reform project work. It was
      also determined that the Central Services Customer Advisory Group
      (CSCAG) would act as the advisory group for the Procurement Reform
      Project. Later the Procurement Reform Project would become one of the
      Roadmap Project Positioning Activities and would report project status to the

  1
      The Roadmap is a blueprint for statewide financial systems. Its scope was defined through
      a series of focus group sessions and includes the following end-to-end business cycles:
      Procure-to-Pay; Revenue; Human Resources; Performance Measurement and Budget;
      Cost Accounting; Asset Management; and Reporting and General Ledger.


                                                                                              1
   Roadmap Executive Sponsors and respond as a resource to other
   Roadmap Positioning Activities.

   The Procurement Reform Team recommended approaching the significant
   procurement reform changes outlined in the report in two ways:

        Identify and address any policy or process changes that could be
         adopted in the short term by the regulatory agencies, under existing
         authorities.
        Concurrently, work to identify the long-term organizational and
         legislative changes that are needed.

   This approach yields short-term results and ultimately leads to the future
   vision of Washington State government procurement.

Vision

   General Administration leads and facilitates Washington State Government
   toward accountable, consistent, fair, and transparent public procurement
   practices.

Goals

   General Administration will lead the State of Washington toward consistent
   procurement laws, standards, policies and practices that promote open and
   effective competition, public trust, social responsibility, and leveraged
   buying.
     1. Provide convenient access and enterprise coordination to promote
         constructive, transparent relationships with vendors.
     2. Provide procurement tools that insure accountability, inform decision-
         making and manage risk.
     3. Collaboratively develop statewide policies that ensure a commitment to
         sustainable and social procurement objectives.
     4. Implement best practices that streamline and strengthen government
         procurement.

Surveying the Environment

   Initially, the Procurement Reform Work Team started with a thorough review
   of the issues identified in the “Enterprise Business Process and Data
   Modeling for the Roadmap for Financial and Administrative Policies,
   Processes, Systems and Data Procure-to-Pay Value Proposition
   Version1.0” Report (Roadmap Procure-to-Pay Value Proposition) submitted
   June 21, 2006. The detail behind this review and analysis can be found in
   Appendix C.


                                                                                2
   The Team reviewed and analyzed the Roadmap Procure-to-Pay Value
   Proposition to:

     1. Organize the 49 issues and concerns stated in the Enterprise Business
        Process and Data Modeling for Roadmap Procure-to-Pay Value
        Proposition into categories.
     2. Prioritize the importance of change for each of the 49.
     3. Identify the level of decision authority and decision processes needed
        to change, e.g. Agency Director Policy Level, WAC change, RCW
        change, etc.

   From this analysis, a pilot project was authorized April 20, 2007 to plan and
   implement a policy change to address the procurement reform issue of no
   common approach for registering vendors and for notifying vendors of
   business opportunities where formal procurement processes require
   advertising. This pilot effort was designed to test the decision making
   process for the Procurement Reform Project.

Lessons Learned – Pilot Project

   Major milestones were identified as necessary to each procurement reform
   project as discovered during the pilot project. These milestones will be key
   components for all future projects:

    Milestone                           Date Reached
    1. Obtain approval to develop      April 20, 2007
       and implement a policy to
       standardize vendor registration
       and vendor notification.
       (Appendix C Project ID # 26)

    2. Obtain policy approval to       Final authorization obtained from the
       standardize vendor registration Information Services Board on July
       and vendor notification.        10, 2008
       (Appendix C Project ID # 28)

    3. Implement policy to             Effective date: November 1, 2008 with
       standardize vendor registration implementation scheduled through
       and vendor notification.        June 29, 2009
       (Appendix C Project ID # 33)


   The pilot also demonstrated both a willingness to support procurement
   reform and, as expected, revealed the complexities of procurement reform
   and the exponentially increasing awareness of the time necessary to respect
   multiple standards when attempting to change polices with statewide impact.



                                                                                   3
   These experiences dramatically changed and altered the anticipated
   schedule and will inform with the governance structure, future schedules for
   the Procurement Reform Project.

Next Steps
    Activity                                          Expected Activity Period
    1. Develop an Overall Project Plan for            August 1, 2008 through
       Procurement Reform and obtain                  December 31, 2008
       Procurement Reform Executive Sponsor
       approval. (Appendix C Project ID # 4)

    2. Create a project work plan for the policy      April 25, 2008 through
       approval and implementation of the             December 31, 2010
       National Institute of Government
       Purchasing (NIGP) Commodity Code
       System via the implantation of Procurement
       Reform Project Requirement # 4. Appendix
       C (Project ID # 40)

    3. Create a project sub-charter and project       January 2, 2009 through
       plan for the foundational work for             December 31, 2009
       procurement reform at the legislative
       change level and obtain approval for
       implementation plans and criteria.
       (Appendix C Project ID # 54)

    4. Sequentially create a project sub-charter      TBD
       and project plan for each of the remaining 5
       Procurement Reform Policy Areas.
       (Appendix C Project ID # 42, 44, 46, 48, 50,
       52, & 57)




                                                                                 4
Scope

    The original Procure-to-Pay Value Proposition included four focus areas.
    The work done to date through the Procurement Reform Project supports
    the future scope of work.




In Scope:
    The Procurement Reform Project is an activity designed to position the State
    to address the Vendor Management and the Procurement Management
    issues recommendations of the Roadmap Procure-to-Pay Value Proposition.
    It should be noted that the current approach is to:
        Identify and address any policy or process changes that could be
          adopted in the short term by the regulatory agencies, under existing
          authorities.
        Concurrently, work to identify the long-term organizational and
          legislative changes that are needed.

Out of Scope:
    Out of scope activities include the Accounts Payable Management issues
    and Contract Management issues recommendations as they will be included
    in other Roadmap positioning activities; the Core Financials project and the
    Grants, Contracts and Loans Management (GCLM) project, respectively.


Note:
    As able, GA will respond with subject matter expertise to other Roadmap
    positioning activities.

                                                                               5
Governance

   Program governance will be structured in a manner that encourages input
   and advice through the Central Service Customer Advisory Group (CSCAG).
   Decisions will be made by the Executive Sponsors with advice and
   recommendations provided to them from the Procurement Reform Steering
   Committee and members of the Project Team representing many individuals
   and organizations that are impacted by the project. The governance
   structure provides the CSCAG with the opportunity to present to the
   Executive Sponsors an alternative proposal to the proposals submitted by
   the Project Team.

   Policy changes may affect all or some of the state’s various procurement
   authorities. The Executive Sponsors will be responsible to direct the activity
   to obtain agreement as needed from procurement authorities other than the
   Department of General Administration. These may involve the Director of
   the Department of Printing, the Director of the Office of Financial
   Management, the Director of the Department of Information Services, and
   the Information Services Board.




                                          Procurement Reform
                                                       (Procure-to-Pay)
                                                     Governance Structure
                                                       September 26, 2008



                      Roadmap Project
                     Executive Sponsors




                      Roadmap Project
                     Steering Committee
                        Linda Bremer,                                        Procurement Reform
                           Member                                            Executive Sponsors
                                                                              Linda Bremer, GA
                                                                                   Director

                      Roadmap Project
                          Director                                                                      Procurement
                       Sadie Hawkins                                                                       Reform
                                                                                                     Steering Committee

          Roadmap Advisory                                                       Project Director
                                   Roadmap Project
                Group                                   Procurement Reform       Servando Patlan
                                     Coordinator
           Servando Patlan,                                Status Reports
                                   Kathy Rosmond
               Member

                                                               State Procurement
                                                                                                    Policy Manager
                                                                      Agent
                                                                                                    Servando Patlan
                                                               Christine Warnock


                                                                Implementation          Procurement           Central Service
                                                                    Team                  Reform             Customer Advisory
                                                                                        Work Team                 Group




                                                                                                                                 6
Project Organization

Procurement Reform Executive Sponsors
    The Director of General Administration (GA) and GA’s Assistant Director for
    the Services Division will be the executive sponsors of the Procurement
    Reform project. The Assistant Director will be a member of the Procurement
    Reform Steering Committee.

      Roles and Responsibilities
         1. Champion the Procurement Reform Project
         2. Provide high-level direction for Procurement Reform
         3. Make final decisions and required judgments
         4. Assure the linkage of the Procurement Reform efforts to statewide
            and organizational strategies and priorities
         5. Participate in all meetings where project sponsorship is necessary
         6. Communicate program progress and results
         7. Manage Quality Assurance

Quality Assurance
    GA may add a Quality Assurance Consultant to provide an ongoing,
    independent review to ensure project success. The quality assurance
    findings, conclusions and recommendations will be clearly communicated
    via scheduled written quality assurance reports to the Executive Sponsors.

      Roles and Responsibilities
         1. Provide a documented level of confidence that the project is
            progressing according to the agreed upon plan and methods,
            especially as these relate to schedule and cost.
         2. Continuously monitor the project environment, to include project
            organizational structure and project plan, for changed conditions
            that might affect project success.
         3. Ensure that project risks/issues have been identified and are being
            resolved in a timely fashion.
         4. Ensure that the project satisfies all business objectives.
         5. Advise on issues that arise on the project as necessary.

Procurement Reform Project Steering Committee Members
    Membership in the Procurement Reform Steering Committee will include:
    The Assistant Director for Services from the Department of General
    Administration and members from the central service agencies including,
    Office of Financial Management, Office of Minority & Women Business
    Enterprises, the Department of Information Services, the Department of
    Personnel, and the Department of Printing.

    In concert with the Roadmap Project, the Procurement Reform Project is
    poised to expand the composition of the steering committee to increase


                                                                                  7
    stakeholder support. Criteria for selecting additional Procurement Reform
    Project Steering Committee members could align with Roadmap Steering
    Committee membership, and or address agencies that centralize their
    procurement authority, agencies that distribute their procurement authority,
    agencies that operate in rural areas of the state, agencies that operate in
    metropolitan settings, agencies with large spend, agencies with small spend,
    agencies with purchasing activity in different geographical areas of the state,
    etc.

    Higher Education participation will also be important for the steering
    committee membership. Representation from higher education has varied
    on the Central Services Customer Advisory Group (CSCAG). Effort should
    be undertaken to renew their representation.

      Roles and Responsibilities
         1. Prioritize, direct, and help secure the resources needed to support
            Procurement Reform
         2. Provide input to the decisions of the project
         3. Participate in all meetings where necessary
         4. Individual members will work to develop organizational and
            operational alignment as needed to support procurement reform

Procurement Reform Project Director
    The Procurement Reform Project Director role is organized and managed in
    a manner consistent with other Roadmap Positioning Activities.

      Roles and Responsibilities
         1. Develop a comprehensive strategic plan for procurement reform
            and present it to the Executive Sponsors.
         2. Develop a project plan that describes the tasks and activities
            needed to support the strategic plan, the schedule for completion,
            the assigned responsibilities, and the dependencies among
            different activities and present it to the executive sponsors for
            approval.
         3. Establish and follow a disciplined approach to presenting issues to
            and obtaining feedback from the Procurement Reform Steering
            Committee and the Central Services Customer Advisory Group
            (CSCAG).

Procurement Reform Project Team
    The Procurement Reform Project Team is organized and managed in a
    manner consistent with other Roadmap Positioning Activities.

      Roles and Responsibilities
         1. The Policy Manager’s role is to lead policy development, including
            leading the Procurement Reform Work Team. The Policy Manager


                                                                                  8
            collaborates on developing implementation plans with the
            Implementation Teams reporting to the State Procurement Agent.
         2. The State Procurement Agent’s role is to lead implementation of
            resulting policies at the statewide level.

The Procurement Reform Work Team
    The Procurement Reform Work Team is comprised of subject matter experts
    from each of the procurement authority agencies: GA, OFM, DIS, and PRT.

      Roles and Responsibilities
         1. Actively provide expertise to analyze procurement business
            practices, identify impacts to statewide procurement operations,
            and craft solutions to increase efficiency and transparency in
            government.
         2. Understand and communicate the impact, risks and benefits of
            procurement reform initiatives to their central service agency
            operations, their customer agencies, and to the vendor community.

The Procurement Reform Implementation Team
    The Procurement Implementation Team is comprised of policy
    implementation staff resources working for the State Procurement Agent at
    the Department of General Administration.

      Roles and Responsibilities
         1. Actively develop the expertise required to implement the
            Procurement Reform Work Plans, identify impacts to statewide
            procurement operations, and craft solutions to increase efficiency
            and transparency in government.
         2. Understand and communicate the impact, risks and benefits of
            procurement reform initiatives to central service agency operations,
            their customer agencies and to the vendor community.

Central Service Customer Advisory Group
    The Central Service Customer Advisory Group (CSCAG) is comprised of a
    large group of procurement and contracting personnel from general
    government, higher education, and central service agencies. The CSCAG
    will provide input about common procurement processes and systems.

      Roles and Responsibilities
         1. Provide the Procurement Reform Project Team and Executive
            Sponsors, through the Policy Manager, with business and technical
            perspectives and advice on issues and decisions facing them; and
         2. Identify and bring forward opportunities for more efficient, effective,
            and transparent procurement business practices.
         3. Understand and communicate the impact, risks and benefits of
            procurement reform initiatives on their agency.


                                                                                  9
         4. Actively provide expertise to analyze business practices, identify
            impacts to agency operations, and craft solutions to increase
            efficiency and transparency in government.


Assumptions

  1. Each subordinate project scope will be adjustable to accommodate
     resource availability.

  2. Allocated resources will be able to spend the projected time on this
     project.

  3. Where possible current business processes will be retained as part of
     procurement reform initiatives, unless Procurement Reform Team
     Members deem that process unnecessary or out of scope for the
     procurement reform initiative.

  4. The integration of new business processes for enabling procurement
     reform with existing business processes will be seamless.

  5. The integration of new systems for enabling procurement reform with
     existing systems will be seamless.

  6. Legacy systems linked to new systems for enabling procurement reform
     will continue to be used for a period of time until specific appropriation has
     been approved for their migration.

  7. The identified host agency for any statewide system will have primary data
     and data management responsibility for backup and recovery, archival,
     and destruction of stored data. Other participating agencies will have
     secondary responsibility for the data provided to, or used by, the statewide
     system.

  8. Each participating agency will have responsibility for security; however,
     the host agency will have the primary responsibility for maintaining
     adequate security and authentication processes.

  9. The enterprise reporting and AFRS support staff, and other groups at
     OFM and other Central Service Agencies affected by the implementation
     of Procurement Reform Initiatives will participate in implementation
     activities as appropriate.




                                                                                 10
Constraints

  1. There may be limited consolidation of procurement activities because of
     the diverse nature of many agencies and programs, and due to statutory
     and regulatory issues.

  2. The Department of Information Services has been developing an
     architecture that will facilitate enterprise solutions across the state. The
     Procurement Reform Project must:
         Enable the statewide enterprise architecture direction.
         Meet enterprise security standards.

  3. The Roadmap Project may otherwise identify common financial and
     administrative processes and potentially a new enterprise core financial
     system affecting the enterprise procurement activity. The Procurement
     reform project must:
          Support those processes and allow “unplugging” components as
           these services are provided by enterprise financial systems.
          Avoid tight integration of components in the enterprise resources
           band. If any of their functionality is included in new procurement
           reform processes that are automated, they should be loosely
           coupled.

  4. The Procurement Reform activity must recognize the use of AFRS coding
     elements as defined by the agencies.

  5. Budget for this project is limited to an allocation of spending authority for
     the Office of State Procurement. There is no assumed funding from any
     other source.

  6. The current schedule revision runs out to June 30, 2019. The numerous
     different computer systems encountered also complicate and extend this
     effort. The high demand for the limited number of subject matter experts
     necessary to do the procurement reform work reduces the capacity for the
     procurement reform effort to maintain or advance the desired schedule for
     the implementation of procurement reform initiatives. The Procurement
     Reform project will compete with the Grants Contract Loan Management
     Project and the Enterprise Data Definitions and Chart of Accounts Project
     for subject matter expert time.

  7. Current (FY09) state budget and freezes to hiring and personal service
     contracting have closed the idea of accelerating the process by adding
     more resources. The project response to these conditions along with the
     high profile positioning of procurement reform call for a more structured
     approach than what was started with.



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Performance Measures/Outcomes

The Procurement Reform outcome committed to in the referenced business
plans and strategic plans for the Office of State Procurement are, “One common
policy implemented statewide, each fiscal year.”

The Procurement Reform Project will ultimately consist of polices to streamline
and unify public procurement practices where possible and practicable. These
policies may have system and operational impacts. In order for Procurement
Reform Project to be considered a success both the vendor experience and the
experience of the public procurement practitioner must be improved.

Surveys of both the vendor and the Washington State Government public
purchasing community will be undertaken to determine if the greater proportion of
the state business experience is occurring within the standards prescribed by
procurement reform with fewer dollars spent outside of the standards prescribed
by procurement reform.

For each objective that is approved to proceed as a subordinate project to this
project plan specific performance measures will be developed and tracked
against available baseline data.

Progress to date

      Outcome                                                   Period
      1. Policy #1: One place to register and notify vendors FY09

      2. Policy #2: NIGP standard commodity code                FY10




Risk Analysis
   1. Unification of the purchase authorities of the State of Washington even at
      a policy level has not previously been undertaken.

   2. Current state systems may not be ready to support a statewide
      procurement reform implementation.

   3. There is a limited pool of subject matter experts available to support this
      project. They are highly sought after and may potentially leave the project
      without the leadership or resources to complete the effort.

   4. The level of policy change that can be commonly adopted by the state
      purchase authorities may not be significant in terms of the activity level for
      the variables under consideration, e.g. dollars of spend, numbers of
      opportunities posted in the common system, etc.

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   5. The procurement reform project will be susceptible to the risk of untimely
      decision making.

   6. Perfect data is not available. A willingness to use judgment with
      directionally correct information will be imperative.

   7. The Information Services Board as a policy making authority is scheduled
      to meet every other month whereby a missed opportunity could cause a 2
      month delay.

   8. The complexity of the procurement activity may impact the ability of the
      Procurement Reform Team to manage the scope/breadth of any particular
      issue to its component parts.

   9. The breadth of the procurement reform activity makes a strong risk case
      for constantly assessing whether or not adequate resources of both the
      central service agencies and the “customer” agencies who must
      participate if the changes are being applied for the procurement reform
      activity to be on course and successful.

   10. New legislation or a new interpretation of state law affecting public
       procurement could impact the Procurement Reform Project.

   11. State budget and personal services contracting freeze may prevent hiring
       external quality assurance.

   12. Enterprise and new systems strategies may impact procurement reform
       project scope and schedule.

Critical Success Factors

Given the breadth and complexity of the Procurement Reform Project, its
success will require strong project management and policy management to
regularly identify risks and direct their analysis, mitigation planning, tracking and
reporting to the Procurement Reform Executive Sponsors. Beyond project
management the Procurement Reform Project is about business change. The
application of the following change management principles will also be critical
factors for success:

   1.   Communications
   2.   Leadership and stakeholder alignment
   3.   Business readiness
   4.   Organization/work design
   5.   Training & support


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Acceptance

Unanimous approval by Key Stakeholders for the final charter document:

We, the undersigned project members, have reviewed this document and
approve its contents:

Name and Title                          Signature                Date
Linda Bremer
Director
Howard Cox
Interim Assistant Director
Christine Warnock
State Purchasing Agent
Servando Patlan
Procurement Reform Policy Manager




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Appendix A: Glossary

Term                     Definition
DIS                      The Washington State Department of Information
                         Services
DOP                      The Washington State Department of Personnel
GA                       The Washington State Department of General
                         Administration
Implementation Team      The Procurement Reform Implementation Team
ISB                      The Information Services Board for the State of
                         Washington
NIGP                     National Institute of Government Purchasing
OFM                      The Washington State Office of Financial
                         Management
Procurement Reform       An employee of the Washington State Department of
Policy Manager           General Administration with policy and project
                         leadership responsibility for the Procurement Reform
                         Project and for leading the Procurement Reform
                         Work Team.
Project Team             The Procurement Reform Project Team consists of
                         the Procurement Reform Policy Manager responsible
                         for policy and project leadership and the State
                         procurement Agent responsible for the statewide
                         implementation of procurement reform policy
                         changes.
PRT                      The Washington State Department of Printing
Roadmap Project          The Roadmap is a program to look across agencies
                         for ways to modernize and improve the state’s
                         administrative, or “back office”, operations.
Roadmap Project          Washington State Agency representatives with policy
Advisory Group           authority for their agency’s financial and contracting
                         activity with a responsibility to communicate within
                         their agencies about their understanding of
                         Roadmap Project proposals, plans, and
                         implementations.
Roadmap Project          Comprised of the Director of the Washington State
Executive Sponsors       Department of Information Services and the Deputy
                         Director of the Washington State Office of Financial
                         Management. They are responsible for authorizing
                         Roadmap Project Activity.
Roadmap Project          Procurement Reform is an enterprise project
Positioning Activities   authorized by the Roadmap Executive Sponsors. It
                         is one of twelve such activities. More information
                         can be found at http://www.ofm.wa.gov/roadmap/.
Roadmap Project          Washington State Agency representatives with policy
Steering Committee       authority for their agency’s financial and contracting

                                                                            15
Term                      Definition
                          activity with a responsibility to provide input and
                          feedback to the Roadmap Executive Sponsors for
                          Roadmap proposals, plans, and implementations.
State Procurement Agent   An employee of the Washington State Department of
                          General Administration responsible for the
                          administration of procurement authority under RCW
                          43.19 and for the implementation of procurement
                          reform policy changes.
The Team                  The Procurement Reform Team directed by the
                          Washington State Governor’s Central Services
                          Subcabinet and consisting of assistant director level
                          representatives from the regulatory agencies.
Work Team                 The procurement reform Work Team is lead by the
                          procurement reform Policy manager and consists of
                          Washington State Government procurement and
                          contracting subject matter experts from GA, OFM,
                          DIS, and PRT.




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Appendix B: Major Washington State Purchase Authorities

  1. Chapter 43.19 RCW Department of General Administration for the
     purchase of goods and purchased services. Purchased services are
     routine and ongoing activities, typically maintenance contracts.
  2. Chapter 43.105 RCW Department of Information Services for the
     purchase of goods and purchased and personal services related to
     information technology.
  3. Chapter 39.29 RCW Office of Financial Management for the purchase of
     non-IT personal services contracting.
  4. Chapter 39.29.006(02) RCW Office of Financial Management for the
     purchase of client services.
  5. Public works, RCWs 28B.10.350, 39.04, 39.80 and 43.19.450. The
     Department of General Administration, Division of Engineering and
     Architectural Services (E&A) is responsible for the design and
     construction, major repairs and alterations of all state-owned facilities.
  6. Highway design and construction, chapters 39.80 and 47.28 RCW.
     Contracts for highway construction are subject to the statutory
     requirements of chapter 47.28 RCW and for architectural and engineering
     (A/E) services, chapter 39.80 RCW. Contracts for architectural and
     engineering services are processed through the Consultant Services
     Office in the Department of Transportation, Environmental and
     Engineering Division.
  7. Printing services, chapter 43.78 RCW. The Department of Printing in
     general, is the mandatory supplier for printing services.
  8. Insurance and bonds, RCW 43.41.300. Purchase of all insurance, fidelity
     and surety bonds and notary public commissions for state agencies is the
     responsibility of the Office of Financial Management, Risk Management
     Division.
  9. Higher education, RCW 28B.10.029. An institution of higher education
     may exercise independently those powers otherwise granted to the
     Director of General Administration in chapter 43.19 RCW in connection
     with the purchase and disposition of all material, supplies, services, and
     equipment needed for the support, maintenance, and use of the
     respective institution of higher education.
  10. Space/buildings, RCW 43.82.010. The purchase, lease or rental of
      privately owned space and/or buildings on private property and alteration
      or repair is the responsibility of the Department of General Administration,
      Division of State Services.




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11. Purchases for resale, RCW 43.19.190(2).           Agencies have primary
    statutory authority for the purchase of materials, supplies and equipment
    for resale to other than public agencies.
12. Interpreter services, RCW 43.19.190(2). The Department of Social and
    Health Services has the statutory responsibility to contract for interpreter
    services on behalf of public assistance recipients under RCW
    43.19.190(2).
13. Vending services, chapter 74.18 RCW. The Department of Services for
    the Blind maintains a business enterprises program for blind persons to
    operate vending facilities in public buildings.
14. Travel on state business & credit card services, RCW 43.03.065.
    Agencies are to conduct the acquisition of travel and travel-related
    services (lodging, meals, transportation, etc) in accordance with the OFM
    State Administrative and Accounting Manual (SAAM) Chapter 10 Travel
    and Chapter 45 Purchase Cards and RCW 43.03.065.
15. Original works of art, RCW 43.19.455, chapter 43.46 RCW. The
    designation of projects and sites, selection, contracting, purchase,
    commissioning, reviewing of design, execution and placement,
    acceptance, maintenance, and sale, exchange, or disposition of works of
    art shall be the responsibility of the Washington State Arts Commission in
    consultation with the Director of General Administration.
16. Recognition awards, RCW 41.60.150. Other than suggestion awards and
    incentive pay unit awards, agencies shall have the authority to recognize
    employees, either individually or as a class, for accomplishments including
    outstanding achievements, safety performance, longevity, outstanding
    public service, or service as employee suggestion evaluators and
    implementers. Recognition awards may not exceed two hundred dollars in
    value per award.
17. Janitorial services and carpet cleaning at state owned facilities, RCW
   43.19.125. Janitorial services and carpet cleaning at state owned facilities
   located on the Capitol Campus are to be purchased from the Department
   of General Administration, Division of Capitol Facilities.
18. Competitive contracting, RCW 41.06.142. The Civil Service Reform Act of
    2002 provides that any department, agency, or institution of higher
    education may purchase services, including services that have been
    customarily and historically provided by employees in the classified
    service under this chapter, by contracting with individuals, nonprofit
    organizations, businesses, employee business units, or other entities.
    Agencies are permitted to contract with GA to conduct their bidding
    process. In accordance with statute, GA has developed rules. See
    Chapter 236-51 WAC.
19. RCW 43.08.015 - grants the State Treasurer's Office the authority to
    represent the state in all contractual relationships with financial

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   institutions. It also authorizes the Treasurer's Office to take such actions
   as are necessary to ensure the effective cash management of public
   funds.
20. Financing Contracts: Pursuant to Chapter 3, Laws of 1981 (RCW
    43.33.030), the Office of the State Treasurer provides administrative
    support to the State Finance Committee, which is composed of the
    Governor, Lieutenant Governor and State Treasurer, the latter being
    designated by law as Chairman. By statutory provision, the Committee is
    delegated authority to supervise and control the issuance of all bonds and
    approve all financing contracts and certificate of participation issues.
21. RCW 39.94 - Authorizes the state to enter into financing contracts for the
    state and its agencies or on behalf of certain local agencies specified in
    the law to acquire real and personal property to be used by the state and
    its agencies or those local agencies, and to issue certificates of
    participation in those contracts. All financing contracts of the state must
    be approved by the State Finance Committee. State agencies are not
    authorized to enter into financing contracts.
22. Statewide Custody - RCW 43.08.280 - The state treasurer is authorized
    to negotiate a statewide custody contract for custody services for local
    governments and institutions of higher education.




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Appendix C: Procurement Reform Project Source Materials



 Matrix Source.xls




Procurement Reform
Issues Approach.doc




Procurement Reform
Project Charter.mpp




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