Results Oriented Contract

Document Sample
Results Oriented Contract Powered By Docstoc
					                        2004 INNOVATIONS AWARDS PROGRAM
                                         Application Form
  (INSTRUCTIONS: Please complete and submit this document electronically if possible, e.g. a Word
document. The application form is available online at our web site, www.csg.org, in the Programs section.
    Please determine the appropriate Program Category from the enclosed Program Categories sheet,
                  and list the category under the Category section below on the right.)

                                                                     ID #: 04-S-33MD
                                                               Category: _Government Operations
                                                               State: ___MD__________

1. Program Name: Contract Management and Procurement Improvement Plan

2. Administering Agency: Maryland Department of Health and Mental Hygiene
   (DHMH)

3. Contact Person (Name and Title): Robert W. Rucker, Jr., Director, OCPMP

4. Address: 201 W. Preston Street, Room 416A, Baltimore, Maryland 21201

5. Telephone Number: 310-767-0974

6. FAX Number: 410-333-5958

7. E-mail Address: rrucker@dhmh.state.md.us

8. Web site Address: http://www.dhmh.state.md.us/ocpmp/

9. Please provide a two-sentence description of the program.

   Re-engineered Departmental contracting and procurement processes establishing team-based
   management as the foundation construct. Re-configured the Departmental procurement structure to
   support decentralized governance and oversight, providing increased customer self-sufficiency and
   end-to-end process ownership.

10. How long has this program been operational (month and year)? Note: the program
    must be between 9 months and 5 years old on May 1, 2004 to be considered.

   The program became operational on October 17, 2001.

11. Why was the program created? (What problem[s] or issue[s] was it designed to
    address?)

   In October 2000, under the direction of the Governor’s Council on Management and Productivity, the
   Department completed an organizational assessment of the Department’s capability and capacity to get
   the best results out of the Department’s $3 Billion + agreements. The assessment recommended, and
   the Secretary approved, the development of a full-service contracting unit to support all contracting
   efforts throughout the Department including the decentralization and delegation of contract authority
   and Department-wide policies for contract management, and contract evaluation.



                                                                                                    - - 1
   The assessment report noted a general absence of any truly defined contracting process, which is
   reflected in the lack of a comprehensive set of established policies and procedures. The report further
   cited ―compartmentalized‖ functions performing contracting tasks with no integrating interests. The
   central contracting unit — the Division of Contracts — controlled the ―process‖ by virtue of having the
   only contracting authority and resident knowledge and understanding of contracting requirements.
   Programs issuing requests for proposals often viewed the Division of Contracts as the unit responsible
   for ―managing‖ the contract. Current contracting processes severely hamper the Department’s ability
   to attain acceptable levels of performance.

   The prior organization of the central contracting unit (Division of Contracts) was the traditional top-
   down model of management, with compartmentalized contracting processes and employees acting in
   isolation with only sporadic contact with procuring unit employees (i.e., customers). The prior
   contracting process retained multiple layers of bureaucratic approvals. This approval hierarchy
   hindered efficient involvement in the process of the procuring units for whom the contracts are
   intended. The prior contracting process also inhibited individual ingenuity and responsibility, was
   slow, and did not always produce quality contracts.

12. Describe the specific activities and operations of the program in chronological order.

   PURPOSE: To develop recommendations for the implementation of team-based approaches to
   contract management for more results-oriented:

           Contract Development;
           Contract Award; and
           Contract Monitoring.

   OBJECTIVE: To plan and recommend implementation strategies for procurement and a contracting
   process that is efficient and timely, and meets the needs of DHMH and its customers while ensuring
   the delivery of high quality services.

   CHARGE: Review and examine the organization of the DHMH procurement processes;
           Formulate recommendations regarding the procurement and contracting processes;
           Implement recommendations regarding procurement and contracting processes;
           Recommend the establishment of a mechanism for developing and implementing new
            strategies;
           Receive and evaluate recommendations from stakeholders and other key individuals
             regarding critical issues affecting the procurement and contracting processes;
           Provide information to stakeholders and other key individuals to ensure that maximum
             input is received prior to decision-making;
           Seek changes to existing statues and regulations, if necessary; and
           Re-write polices and procedures, as necessary.

   TIME FRAME:            March through August, 2001

   The plan specified six planned actions that changed the current contracting processes. These changes
   incorporated all of the assessment report recommendations and achieved desired results by the end of
   the plan period. The six planned actions consisted of four primary actions and two supporting actions.
   The four primary actions were:

   Reconstituting the functions and accountabilities of the Central Contracting Unit and the procuring
   unit; Making teams a required central element of all key contract development and award activities,
   capitalizing on the focused attention and combined knowledge of each stakeholder group;
   Rebuilding a policy and procedure foundation for governing standardized contracting processes; and
   Decentralizing contracting authority, vesting total responsibility and accountability in procuring units.


                                                                                                        - - 2
     The two supporting actions were:

1.   Implementing a comprehensive training program that will establish and maintain high-level
     contracting skills; and
2.    Obtaining a significantly higher Department-level delegation of contracting authority that will
     complement the resulting improved contracting process

     Communicating the Plan
     A concerted effort was be made to communicate the plan throughout the Department. The intent
     of the communications program was to ensure that all employees with contracting responsibilities,
     and whose jobs are impacted by delivery of services from contracts, were made aware of the
     coming changes and are kept apprised of how the implementation is progressing. The new central
     contracting unit had be responsibility for administering the communications program.

              Agency and Executive Briefings
              Briefings were conducted for all key stakeholders. Internally, briefings were held to
              orient senior Departmental managers to the new system and to expand the initial basis of
              support needed for successful implementation. Outside the Department, the following
              entities received executive briefings: Office of the Governor; Office of the Lieutenant
              Governor; General Assembly legislative committees; Department of Budget and
              Management; and Legislative staff.

              Plan Distribution
              The plan was made available to all personnel. Strong consideration was given to
              providing this information electronically. A two-month ―feedback period‖ subsequent to
              the executive briefings and distribution of the plan gave everyone an opportunity to ask
              questions and seek clarification of the plan components.

     Establish the Office of Contract Policy, Management and Procurement
     The Department must first change its management structure before it can improve its contracting
     process and practices. Establishing the Office of Contract Policy, Management and Procurement
     (OCPMP) was the first critical step in reforming the Department’s contracting process into an
     efficient and effective system that will ensure that quality services are both procured and
     delivered.

     The prior organizational structure for contracting at the Department did not support efficient and
     timely contracting efforts. There was a lack of clarity regarding the contracting unit’s role and
     each individual’s role in that unit. Instead of a broad-based organizational perspective, staff
     engaged in activities that were guided by a very limited and narrow view of the organization and
     its purpose. The result was that much time and energy was spent on activities and processes that
     were not meeting the needs of customers.

     The customer focused orientation of the office staff is even more critical than the technical skills
     required for the various positions. Staff must realize that the contracting function is in direct
     support of the department’s programs, not an end unto itself. The Office is intended to work under
     a team-based management construct, working with, and advising programs on how best to procure
     and manage contracts, rather than directing the activity. The focus of the office must become one
     of facilitation, not control. Staff will be a combination of new positions, existing positions, and
     re-tooled positions. To the greatest extent possible, all positions must be cross-functional to
     provide maximum coverage for the customer, and a team-based orientation for the Office staff.




                                                                                                    - - 3
The Department established the OCPMP to meet the needs of all stakeholders and to ensure the
delivery of high quality services. This Office sets Department-wide standards, policies and
procedures for all activities involved in the contracting process. These activities include: (1) using
and institutionalizing team-based approaches to contracting and procurement, (2) establishing a
training program for Departmental personnel, (3) developing a quality assurance system to
monitor the effectiveness of contracting efforts and resulting services, (4) establishing a
contracting resource center with a library and data bank, and (5) providing a full range of technical
assistance that includes providing legal counseling support, technical support and direct
contracting services to departmental units.

The Office will function in a much-expanded advisory and support capacity, responding to
program needs and requirements.

         Functions and Responsibilities of the OCPMP
         The OCPMP has broad responsibilities for establishing policies, procedures and
         standards that govern how the Department procures and manages contracts, and for
         ensuring that those policies and procedures are disseminated and adhered to throughout
         the Department. The OCPMP serves in an advisory capacity to programs upon request,
         and will directly deliver procurement services for programs not certified to process or
         approve their own procurements. The Office is also responsible for providing legal
         advice on procurement issues and serving as the repository and clearinghouse for
         procurement and contract management information within the Department.

         The primary functions and responsibilities of the OCPMP are:

            Contracting policies and procedures –Developing departmental policies and
             procedures to provide a coherent framework for all procurement and contracting
             activities and ensure that clear, uniform processes are in place for these activities. In
             addition, this will include implementing and maintaining mechanisms to monitor the
             productivity of teams and ensure the successful implementation of team-based
             management.
            Delegation of authority - Developing a process for, and providing training and
             support to DHMH programs that choose to obtain their own procurement delegation
             and authority.
            Training – Developing, scheduling, and providing training in team-based
             procurement and contract management, procurement officer certification, and other
             cross-functional and specialized training for personnel involved in procurement and
             training. The DHMH Training Services Division will support these training
             activities in conjunction with the OCPMP.
            Resource Center – Developing, maintaining, and making easily available all
             regulations, policies, procedures, and standards applicable to procurement and
             contracting; providing forms and templates used in the process; establishing data and
             reporting systems; communicating to appropriate staff and other interested parties
             information regarding best practices and national trends in procurement/contracting,
             training opportunities, relevant legislation, and changes or updates in policies and
             procedures; and maintaining a DHMH procurement and contracting database for
             tracking and evaluation/analysis purposes. The Resource Center will provide
             technical staff and electronic capabilities to meet the varying needs of the programs.
            Technical assistance and consultation – Providing assistance as needed to programs
             at their request on matters dealing with the complete contracting process (from scope
             of work to evaluating the results of the contract).
            Procurement and contracting services – Providing services within the team-based
             framework to programs at their request.




                                                                                                 - - 4
   Quality Assurance System – Establishing contracting performance quality standards
    and a performance tracking system for monitoring and evaluating procuring units’
    compliance with standards and performance, and maintaining a continuous quality
    improvement program.
   Managing for Results – Developing, measuring and evaluating Departmental
    Managing for Results (MFR) goals and objectives.

OCPMP Staffing
The Office of Contract Policy, Management and Procurement will be staffed by several
new positions, working with the personnel already in the Division of Contracts and with
other procurement positions.

The key new staff and their major responsibilities follow:

Key positions are:
              Director, Office of Contract Policy, Management and Procurement
               This position is responsible for leadership and strategic direction for
               contract related efforts that span the Department’s service delivery
               process—within Department divisions and programs and from the
               Department to the community and governmental entities—to maximize
               the quality of service delivery. The position functions as a Senior Level
               Management position with cross-functional areas and indirect
               responsibility for programs and administration not directly managed in
               regard to the complete contracting process.

              Chief of Direct Service Delivery, Chief of Policy, Information and
               Training
               These two positions work as a team to deliver the full array of services
               for the Office. The positions handle two discreet areas that encompass:
                      1. All direct procurement activities and technical assistance
                           requests regarding specific procurements under the Chief of
                           Direct Service Delivery;
                      2. All functions of developing and running the resource center,
                           including maintaining and accessing the data banks,
                           cataloging pertinent information, and offering options to
                           customers;
                      3. Maintaining and updating static information such as
                           procedures and policies, and new information provided by
                           Department units under the Chief of Policy, Information and
                           Training; and
                      4. Training and development;
                      5. Quality assurance; and
                      6. The monitoring of results under the Chief of Policy,
                           Information and Training.

               The responsibilities and duties of the Chiefs is divided 60%/40% over
               two functional operations of the Office. Although the positions’ primary
               skills and training may be different, their secondary skills will be
               complimentary in order to ensure the sharing of knowledge and expertise
               and a team-based approach to decision making.




                                                                                     - - 5
               Contract Information Officer
                This position is a high-level administration position, key to the success of
                the Office. All information regarding Departmental policies, procedures
                and standards governing the complete contracting process are
                disseminated by this position. The position is responsible for both inter-
                departmental communications and intra-departmental communications
                including external events that affect the Office operations (legislations,
                Board of Public Works actions, etc.)

               Contract Policy, Management, and Procurement Specialists
                These positions are cross-functionally trained to: (1) provide both direct
                procurement services and technical assistance, (2) deliver training on
                policy and procedures, and (3) monitor and evaluate adherence to the
                Department’s standard by the procuring units.

               Assistant Attorney General
                This position provides legal advice and guidance to programs on
                procurement and contracting issues and will advise the Director and other
                personnel within the OCPMP.

Implementation
Implementation of the new team-based procurement and contracting system took place in
phases over the course of one to two years. Upon full implementation, the OCPMP was
be fully staffed, all necessary policies and procedures were adopted and disseminated, the
resource center was available to all personnel involved in procurement and contracting,
initial essential training was completed, and programs wishing to process their own
procurement actions met standards for certification.

Key steps in the implementation, the responsible personnel or units, and target dates for
completion follow:

(a) Establish the OCPMP. The Deputy Secretary for Operations will established the
    OCPMP by October 31, 2001
(b) Recruit and hire key personnel identified above. The Director of OCPMP was hired
    by October 31, 2001. All other key positions were hired by December 30, 2001. All
    Office positions were filled by May 2002, with appropriate job descriptions and
    needs assessments put in place.
(c) New procurement and contracting policies and procedures were developed by
    January 2002.
(d) Training in the new system, team-based contracting, and procurement certifications
    began December 2001. Training was the responsibility of the OCPMP in
    collaboration with the DHMH Training Services Division and was provided as
    needed for personnel involved in procurement and contracting.
(e) The set up and design of the resource center began by October 31, 2001 with scope
    of work and base line operations developed by March 2002.
(f) Team-based management of procurement and contracting actions were implemented
    by January 31, 2002. The new policies and procedures define when and how this
    approach is used. Training was necessary to ensure that personnel understand the
    relevant principles and processes.
(g) The quality assurance system was implemented. Standards and a system for
    measuring and evaluating performance was established and made the responsibility
    of the OCPMP. Standards will be related in part to departmental MFR goals and
    objectives.




                                                                                       - - 6
(h) All procurement and contracting services began with the establishment of the
    OCPMP and will be upgraded and refined as new policies and procedures are
    implemented, and training takes place.
(i) The procurement process was decentralized by certifying programs that meet
    established standards when processing and approving, within authorized limits, their
    own procurements. The Contract Policy and Management unit developed
    certification standards and procedures. Procurement authority is delegated to
    DHMH programs that meet the Office’s standards and procedures. The OCPMP
    developed the standards for full departmental delegation of procurement authority by
    June 30, 2002.

Resources
Current staff and personnel in several new positions undertook the job of establishing the
OCPMP and implementing the new contracting procurement and management system,
with the assistance of other units and personnel as appropriate and necessary. In addition
to new personnel, resources were required for training and information and data systems.
Existing resources were be used as much as possible and resources were reallocated when
practical. In some cases, it was necessary to request some additional funding to fully
implement the OCPMP.

New and Revised Policies and Procedures
Current policies and procedures were cumbersome, incomplete, or misunderstood, or are
not used by many involved in the contracting process. The efficient use of resources,
process timeliness and contract management accountability suffered as a result. The plan
proposed that new and revised policies and procedures be instituted as a first action. The
new policies and procedures incorporated the needs of those that actually perform the
contracting process and must have Department-wide applicability.

The actions, which the Department took in developing a formal policy and procedure
system, were:

(a) Reviewed and revised/rewrote existing policy and procedures in conjunction with the
    recommended changes in structure and organization;
(b) Formalized policy and specific procedures for contracting operations;
(c) Established timelines for the contracting process;
(d) Clarified contracting responsibility;
(e) Incorporated team-based management in the contracting process;
(f) Provided a major new focus on the monitoring of contracts
(g) Distributed new and revised policies Department-wide, and communicating to all
    stakeholders, through training, the Department’s expectations.

Contracting Policy
Proposed changes in the contract management organizational structure required that a
policy for standardized contracting processes be developed. Development of the new
policy was the primary responsibility of the OCPMP, working in collaboration with other
appropriate personnel within the Department and other agencies. The Department’s
approving authority for the contracting policy is the Deputy Secretary for Operations.

The new contracting policy addresses, but is not limited to, the following areas:

         (a)      Team-Based Contract Management;
         (b)      Decentralized Contracting Authority;
         (c)      Delegation Approval Levels;
         (d)      Standardized Contracting Procedures;
         (e)      Personnel Certification & Other Training Requirements;
         (f)      Performance Standards With Link To Job Descriptions;



                                                                                     - - 7
                  (g)      Contract Management/Monitoring; and
                  (h)      Documentation & Data Management.

         This policy was written and distributed by January 2002, ensuring that all elements of the
         proposed plan were implemented in a timely manner. This policy became an integral part
         of the DHMH Contracting Resource Guide (formerly the DHMH Procurement Manual).

         Standardized Contract Procedures
         Proposed changes in the organizational structure required that standardized contract
         procedures be revised or developed. Revision and development of the new procedures
         was the primary responsibility of the OCPMP, working in collaboration with other
         appropriate personnel within the Department and other agencies. The Department’s
         approving authority for the contracting procedures is the Deputy Secretary for
         Operations.

         New and revised procedures will be in the form of detailed instructions regarding all
          aspects of key contracting activities outlined in the proposed DHMH Contracting
          Processes. These standardized contract procedures will address all of the following
          areas and will become an integral part of the DHMH Contracting Resource Guide
          (formerly the DHMH Procurement Manual).

                 Small Procurements;
                 Competitive Sealed Bidding;
                 Multiple Step Sealed Bidding;
                 Emergency Procurements;
                 Sole Source Procurements;
                 MOU’s;
                 Requests for Proposal;
                 Unified Grant Awards (HSAM);
                 Team Formation and Procurement Process Management; and
                 Contract Management/Monitoring.

          These procedures were and distributed by January 2002, ensuring that all elements of
          the plan were implemented in a timely manner. Training covering the policies and
          procedures for the new standardized contracting processes was administered to all
          Departmental personnel involved in procurement contracting, MOUs, and unified grant
          awards.

Team-based Management in the Contracting Process
The prior organization of the central contracting unit (Division of Contracts) was the traditional
top-down model of management, with compartmentalized contracting processes and employees
acting in isolation with only sporadic contact with procuring unit employees (i.e., customers). The
prior contracting process retained multiple layers of bureaucratic approvals. This approval
hierarchy hindered efficient involvement in the process of the procuring units for whom the
contracts are intended. The prior contracting process also inhibited individual ingenuity and
responsibility, was slow, and did not always produce quality contracts.

The plan proposed to correct the dysfunctional aspects of the current contracting process, in part
by implementing and maintaining team-based management in the contracting process. The use of
serial reviews of contracts was be replaced by a team-based process built on concurrent reviews.
Implementing and maintaining team-based management concepts provides an important tool to
bring about the changes in workplace culture. The focus of the new organization and the team-
based process is on providing excellent customer service. Routinely employing contract
development teams results in more efficiently developed and approved solicitations and more



                                                                                                 - - 8
effective and timely awarded contracts. The use of teams during the contracting process will be as
outlined in the DHMH Contracting Resource Guide.

        Positive Changes in Workplace Culture
        The effective use of team-based management makes it easier to effect needed changes in
        workplace culture and values. Using team-based approaches empowers individuals and
        teams conducting contracting activities to frequently communicate and build positive
        working relationships beyond current process boundaries. Team-based contract
        development readily facilitates problem-solving at the lowest organizational level.
        Success becomes more dependent on effective group action and individuals become more
        cognizant and appreciative of the need to work cooperatively, productively, reliably, and
        competently.

        Customer Oriented Service
        Routine, team-based contacts between procuring unit programmatic experts and OCPMP
        employees provides opportunities for:
                         (a) More efficient and timely communications;
                         (b) Greater presentation and transfer of programmatic needs into
                             contract specifications;
                         (c) Broader contracting and programmatic knowledge for all team
                             members; and
                         (d) Improved understanding and acceptance of what each employee
                             must do to complete his or her contracting activities and satisfy
                             stakeholder needs.

        Improving Contracting Efficiency and Timeliness
        Requiring that solicitation packages be developed as a team process allows development
        to proceed with the continuing input and oversight of individuals who previously saw and
        approved only successive iterations of a solicitation package. This more timely access to
        input by all team members allows potential problems to be identified, and improvements
        and edits to be made much earlier than in the current process. This early review and
        input using a team approach also streamlines the process by making the prior multiple
        levels of review and approval unnecessary. In addition, the team-based approach greatly
        reduces both the amount of reworking that a solicitation undergoes and the time required
        for drafting and approving a solicitation.

        Supporting Individual Initiative and Effecting Group Responsibility
        Employing teams with authority makes decisions and give approvals will empower
        individual team members and provides them with on-going opportunities to identify
        improvements and recommend new ideas for both individual solicitation packages and
        the contracting process. In addition, team-based activities provide mechanisms that
        facilitate self-taught and peer-based training for individual team members.

        Essential Team Concepts
        Teams under this plan are designated as ―core‖ teams. Core teams are established in
        accordance with standardized contract procedures covering team formation. A core team
        consist of employees from both the procuring unit and the authorized procurer of services
        (either OCPMP or the delegated procurer of services) who are deemed essential to
        efficiently and effectively develop and approve a contract solicitation package, solicit a
        contract, evaluate and select a vendor, and/or approve and award a contract. Teams will
        be utilized during the contracting process as outlined in the DHMH Contracting Resource
        Guide.

                 Core Team: Primary Members
                 Primarily core team members are generally required for all teams. Primary core
                 team members may consist of the following members:



                                                                                             - - 9
             (a) The contract monitor/manager, who usually serves as the team
                 leader;
             (b) The procuring unit’s programmatic expert(s)
                 needing/supporting the desired service;
             (c) The procuring unit’s procurement officer or contract manager
                 accountable for all aspects of the contract;
             (d) The OCPMP’s service contract expert; and
             (e) Important internal/operational and/or Departmental
                 stakeholders.

A single team member may, depending on experience and expertise, fulfill more
than one of the listed roles.

Core Team: Secondary Members
Secondary core team members may consist of the following members:
                   (a) The procuring unit’s fiscal officer;
                   (b) The Department of Budget and Management
                        resource/reference person;
                   (c) An assistant attorney general, either from the procuring
                        unit or the OCPMP, as deemed necessary by the team
                        leader and in accordance with agreed upon guidelines for
                        participation; and
                   (d) Auditors and other key stakeholders.
A single team member may, depending on experience and expertise, fulfill more
than one of the listed roles.

Core Team Responsibilities and Oversight
The core team leader and team members have duties and responsibilities
pertinent to the planning, development, approval, solicitation, evaluation, and/or
award of a service contract.

Team Leader Responsibilities
The team leader of a core team is an employee of the procuring unit responsible
for carrying out, delegating, and/or overseeing team tasks that include:

(a) Scheduling the initial team meeting and site;
(b) Initiating brainstorming to identify and set team norms (e.g., team etiquette,
    starting and ending times of meetings, member substitution, confidentiality,
    etc.);
(c) Preparing and distributing agenda;
(c) Taking and preparing meeting minutes;
(d) Assigning or gaining consensus on work and deadlines;
(e) Collecting, compiling, analyzing, and reporting information; and
(f) Preparing solicitation packages.

Team Member Responsibilities
A primary member of a core team will generally be an employee of the OCPMP
or of the procuring unit appointed to the team and expected to carry out team
tasks that may include:

(a) Complying with agreed upon team norms;
(b) Taking and preparing any meeting minutes;
(c) Working to gain consensus on assigned work and deadlines;
(d) Collecting, compiling, analyzing, and reporting information; and
(e) Preparing solicitation packages.




                                                                             - -10
        Managerial and Supervisory Responsibilities
        All managers will be responsible for:

        (a) Implementing and maintaining formal mechanisms to monitor the
             cooperation and productivity of individual team members;
        (b) Implementing and maintaining formal mechanisms to monitor the progress
             of individual teams and the timeliness of solicitation packages and contract
             awards;
        (c) Soliciting and analyzing feedback from stakeholders on procuring unit and
             OCPMP contracting services and the quality of awarded contracts; and
        (d) Establishing mechanisms to identify and reward team success and solve
             team deficiencies.

Team-based Supporting Policies
The Department immediately took actions needed to initiate the implementation of team-
based management and the use of teams in the contracting process. These actions were
dependent on Department-wide policies covering operations, personnel, and training
pertinent to team-based contracting and a supportive managerial philosophy.

        Operational Policy
        A Departmental policy requiring team-based management and the use of teams
        was developed and implemented that identified or referenced when and how
        team-based management and teams will be used in developing and awarding
        service contracts.

        Personnel Policy
        A personnel policy requiring the updating of the job descriptions and
        performance goals of all employees and managers who will have team-related
        duties and/or oversight responsibilities was developed and implemented.

                 Performance Standards for Team Members
                 The policy required the development and incorporation of a basic set of
                 performance standards pertinent to team-related duties and
                 responsibilities.

                 Performance Standards for Managers Overseeing Team-based
                 Contracting
                 The policy required the development and incorporation of a basic set of
                 performance standards pertinent to contracting and team-related duties
                 and responsibilities.

        Training Policy
        A training policy requiring specialized training in team-based management and
        team-based contracting activities was developed and implemented for pertinent
        employees and managers.

        Managerial Philosophy and Support
        The Department developed and implemented a managerial philosophy that
        supports individual managers, frontline supervisors, and procurement staff
        responsible for implementing the workplace changes defined in this plan.
        Among the key changes to be included were changes in workplace values, the
        acceptance of new responsibilities, and learning and implementing team-based
        contracting activities. In addition, the Department developed a managerial
        philosophy in which contracting managers have access to additional expertise
        that can help to ensure an efficient initial implementation of the plan, full and



                                                                                      - -11
                   sustained support for the plan, and an effective monitoring of management’s use
                   of team-based management and contract development teams.

                           Support for Frontline Managers.
                           The Department developed and implemented policies that support
                           frontline managers who implement, support, and maintain team-based
                           contracting activities in the OCPMP and procuring units. This support
                           included briefings and seminars related to implementing the plan and
                           contracting activities.

                           Support for Senior Managers.
                           A steering committee was established to support senior Department
                           managers and guide the implementation and effectiveness of team-
                           based contracting.

Decentralize Contracting Responsibility and Authority
Decentralizing the contracting process and delegating contracting authority to the programs
improves accountability for contract results and supports a more efficient and timely contracting
process. Decentralization, though not a requirement, is strongly encouraged. Contracting and
managing the contracts by the same procuring unit greatly elevates the effectiveness of the overall
process. Programs, depending on their needs, apply for graduated levels of delegated contracting
authority up to full (i.e., Department-level) delegation. Decentralized contracting authority is
granted to procuring units by the OCPMP, based on criteria specified in Departmental policy.

Decentralized contracting authority is partial or full delegation. Programs delegated contracting
authority are required to demonstrate proficiency in processing MOUs, small procurements, and/or
contracts valued under $100,000. Training is provided by both DBM and DHMH, and
representatives of all programs are required to attend at least some of these sessions.

         Decentralized Contracting Authority Guidelines
         All programs with contract actions (i.e., original contracts, modifications, renewals, and
         options) that exceed the average number for DHMH for FY 2000 (base year) were
         encouraged to achieve full contracting authority within two years of implementation of
         this plan. All other units, at a minimum, are encouraged to seek delegation authority for
         small procurements and MOUs. This requires:

             (a)   Identifying staffing requirements for processing Program’s contracts;
             (b)   Identifying hardware and software needs;
             (c)   Completing of required training; and
             (d)   Demonstrating proficiency during the phase-in process;

         A program can apply for decentralization at any time.

         Small Procurement Delegation
         All programs are encouraged to apply for delegated authority for processing small
         procurements. The process will require that:

         (a) The program send a letter requesting delegation to the OCPMP;
         (b) The OCPMP assist the program in determining hardware and software needs; and
         (c) The program selects staff to attend training in the following areas:
                                   1. FMIS/ADPICS;
                                   2. AS400; and
                                   3. Small Procurement Regulations;
         (d) Training be provided as outlined;




                                                                                               - -12
        (e) After six months, the OCPMP review the work of each program delegated small
            procurement authority to determine if delegation will continue. Review is based on
            written standards listed in the DHMH Contracting Resource Guide;
        (f) Final delegation approval be granted after successful review; and
        (g) The programs’ procurement personnel attend future refresher/update training.

        Memorandum of Understanding (MOU) Delegation
        All Programs are encouraged to apply for delegated authority to process MOU’s. The
        process requires that the:

(a) Deputy Secretary for Operations invite Programs to seek MOU delegation
(b) Programs determine if they have sufficient staff for this delegation and respond to Deputy
    Secretary’s letter accordingly
(c) OCPMP assists Programs in determining their hardware and software needs
(d) Programs select staff to attend training in the following areas:
        FMIS/ADPICS; AS400; MOU Regulations and Procedures
(e) Training be provided as outlined in Section 4.6
(f) Conditional delegation approval is received and Programs begin processing MOU’s
(g) OCPMP provides oversight of the first three MOU’s completed by each Program
(h) OCPMP reviews the work of each Program for compliance with COMAR and Departmental
    procedures to determine if delegation will continue. Review will be based on written
    standards as listed in the DHMH Contracting Resource Guide.
(i) Final delegation approval is granted upon successful review
(j) OCPMP performs annual reviews to verify each Program’s compliance with COMAR and
    Departmental procedures and to determine if the delegation will continue, based on the
    written standards listed in the DHMH Contracting Resource Guide
(k) MOU’s $200,000 are signed by the appropriate delegated personnel within Programs;
    MOU’s >$200,000 will continue to be signed by each Program’s Deputy Secretary
(l) Programs’ procurement personnel attend all future refresher/update training.

        Full Contracting Authority
        Each Program with a total number of contract actions exceeding the DHMH average
        were encouraged to participate in obtaining full contracting authority. Other Programs
        are not precluded from applying for full contracting authority. A Program will be able to
        apply for decentralization at any time during. The process requires that the:

             (a) Deputy Secretary for Operations notify all Programs when delegation of full
                 contracting authority is available
             (b) Programs may apply for the delegation by sending a request to the Director of
                 the OCPMP
             (c) Programs not participating will continue to process their contracting work
                 through the OCPMP
             (d) Participating Programs identify that sufficient procurement staff are available or
                 determine that additional positions are needed in order to participate at a fully
                 functioning level
             (e) OCPMP assists Programs in determining their hardware and software needs
             (f) Program selects staff to attend training in the following areas:
                      FMIS/ADPICS
                      AS400
                      Procurement Regulations
                      DHMH Department Contracting Procedures
             (g) Training is provided as outlined
             (h) Program has at least one Certified Procurement Officer
             (i) First three procurements processed by each Program will be under the oversight
                 of the OCPMP




                                                                                              - -13
             (j) OCPMP reviews the work of each participating Program after six months for
                 compliance with COMAR and Department Procedures. Review is based on
                 written standards listed in the DHMH Contracting Resource Guide
             (k) OCPMP delegates in writing full contracting authority to a participating
                 Program when the Program receives a favorable six-month review
             (l) OCPMP performs annual reviews of participating Programs to verify each
                 Program’s compliance with COMAR and Departmental Procedures and to
                 determine if delegation will continue, based on the written standards listed in the
                 DHMH Contracting Resource Guide.
             (m) Programs’ procurement personnel attend all future refresher/update training.

Training to Support Planned Actions
A comprehensive training initiative was required to facilitate the various organizational, cultural,
procedural, and behavioral changes needed for the new Departmental contracting system to
function effectively. The key components of this new system – decentralization, team-based
management, personnel certification, and new policies and procedures – was enabled through the
following training programs:

         (a) Management Seminars
         (b) Contract Team Training
         (c) Certification of Unit Procurement Officers, Contract Monitors, and Other Unit
             Personnel
         (d) Continuous In-House Technical Training Development of training programs will
             begin at the earliest practicable time (see Section 5.0).

         Management Seminars
         The goal of these seminars was to ensure the necessary management and infrastructure
         support needed to initiate and sustain the new contracting system. Two-day management
         seminars targeted for those Departmental managers in units with significant procurement/
         contracting activity. These seminars also served as a catalyst for fostering and sustaining
         the necessary organizational and cultural/behavioral changes required for successful
         implementation at the unit level. Two primary elements of the management seminars
         were:

                  The Role of Management Seminars
                  These seminars were initiated in January 2002. They provided basic principles
                  that focus on the manager’s role in facilitating effective implementation of the
                  new Departmental contracting system. There were two-day events. At a
                  minimum, topics covered included:
                           (a) The DHMH Service Procurement System
                           (b) Organizational Change & Alignment for System Implementation
                           (c) Team-Based Management Practices
                           (d) The Manager’s Role in System Implementation & Maintenance

                  Procurement Manager’s Forum
                  The Procurement Manager’s Forum supports managers by providing an on-
                  going input channel for managers to address implementation issues and concerns
                  regarding the new service procurement/contracting system. The OCPMP is
                  responsible for coordinating this Forum. Meetings are be co-facilitated by
                  OCPMP and the technical training coordinator in DHMH’s Training Services
                  Division.




                                                                                                - -14
Contract Team Training
The goal of this training was to facilitate the effective development and functioning of
service procurement teams required under the new procurement system. This team
training included skill-based, application-oriented instruction for contract monitors, who,
in the new system, may serve as team leaders. It also included skill-based, application-
oriented instruction for other departmental employees who will serve as core team
members. Topics addressed at a minimum included:

         (a) DHMH Service Procurement System
         (b) Team-Based Management Practices
         (c) Procurement-Related Team Tasks (including management of time
             requirements)
         (d) Team Formation, Development & Roles
         (e) Team Dynamics and Communications
         (f) Team Leader Skills
         (g) Team-Based Decision-Making & Problem-Solving
         (h) Recognizing and Managing Team Conflict

This training began in the spring of 2002, shortly after completion of initial management
training. Team training encompassed two consecutive days and was targeted initially at
those units with the most significant volume of procurement/contracting activity.

Certification of Procurement Officers, Contract Monitors, and Other Unit
Personnel
This certification ensures the acquisition of core competencies necessary for key OCPMP
and procurement unit personnel to participate effectively in a decentralized Departmental
contracting system. It includes the following elements:

          Procurement Officer Certification
         Participation in and completion of the entire month-long program is mandatory
         for unit personnel identified as Unit Procurement Officers. This program began
         in January, 2002, and as many DHMH unit procurement officers as possible
         were enrolled in the first class. The respective units of those attending covered
         related costs. Programs cannot be delegated independent contracting authority
         as proposed in the decentralization component of the plan until their Unit
         Procurement Officers have successfully completed the DBM program.

         Continuing Education Program for Unit Procurement Officers
         This program provides further competency development and enhancement
         beyond the initial certification program. A Unit Procurement Officer
         Continuing Education Program was established by and is administered by the
         OCPMP. This program provides opportunities for Unit Procurement Officers to
         participate in external professional development courses, seminars, and
         programs.

         Other unit personnel
         Other procuring unit employees requiring competency development in specific
         areas (e.g., contract monitoring for Contract Monitors) also were urged or
         required to participate in and complete select portions of the DBM Procurement
         Officer Certification Program.




                                                                                      - -15
                 DHMH Contracting Resource Guide
                 This publication was newly published in conjunction with (New and Revised
                 Policies and Procedures) of this plan. It forms the basis for the majority of in-
                 house technical training programs, and incorporates detailed instructions on
                 contracting requirements and practices. Access to this guide is through both
                 electronic and printed ―desk copies.‖ Once completed, the guide was posted as
                 a downloadable .pdf file at the ―DHMH Service Procurement System‖ website.

Delegation of Authority
The previous contracting process suffered from a highly restrictive level of delegation. Inordinate
delays occurred while contracts awaited centralized or outside review and approval. The Team
identified two key issues. First, the level of delegation for the Department was inappropriate
considering the annual number of contracting actions exceeding $100,000. In addition, the
Department’s failure to delegate to a low enough level within the organization was a major
constraint to timeliness and efficiency. This planned action proposed to raise the Department’s
authorization to $100,000 and delegate that approval authority to procuring Programs when they
implemented qualifying provisions of this plan. The Department initiated immediate steps to
permanently increase its level of delegation to $100,000.

         Increase Department Delegation Level
         The Deputy Secretary for Operations announced that the Department intended to seek
         increased delegation authority to $100,000 in an introductory letter forwarded to DBM.
         The letter identified the basic qualifying actions contained in this plan and stated when
         the Department would complete the planned actions and be ready to support increased
         delegation authority.

         Following a sequence of briefings and plan reviews beginning in October 2001, we
         expected DBM to grant increased delegation approval pending successful implementation
         of primary elements of this plan.

         Small Procurements
         The OCPMP initiated a program to delegate current small procurement authority to
         Programs and other procuring units. Participation in the program was voluntary, but
         encouraged. There was required training for designated personnel in each procuring unit
         authorized to complete small procurements. The opportunity to become certified is
         offered periodically.

         Memorandum of Understanding
         The OCPMP initiated a program to delegate MOU approval to all Programs.
         Participation in the program is voluntary. Participants must have certain minimum
         computer systems available. System training and MOU processing training is mandatory
         for designated personnel authorized to process Moue’s. Delegated level of signature
         authority is established by Departmental policy and the OCPMP reviews annually each
         participating Program’s compliance to laws, regulations and policies.

         Fully Delegated Contracting Authority
         Fully delegated contracting authority is offered to Programs meeting certain
         qualifications. Standardized contract training and systems capabilities are required of
         participating Programs. Implementing fully delegated contracting authority is a major
         element contributing to the goals of contracting efficiency, effectiveness and timeliness.

Resource Considerations
Adopting this plan has had a significant impact on resources, both systems and personnel.
Creating common, integrated contracting systems that are conveniently accessed and maintained
was essential and involved additional cost or in some cases reallocation of budgeted funds. New



                                                                                               - -16
or expanded mandatory contract management processes (e.g., team-based contract development
and contract monitoring) imposed additional personnel requirements and the reassignment of
selected people both to position and organization. Also, at least initially, the plan required
significant amounts of training time and some financial support to meet minimum qualifications
and certification standards.

         Procuring Program Responsibilities

                 Decentralized Contracting Authority
                 Each Program seeking delegation authority must assess both system and
                 personnel resources necessary to conduct contracting activities. Certain
                 minimum requirements apply as stated in Departmental policies and procedures.
                 OCPMP assists with assessing system needs.

                 Standard Procurement Contracting Support
                 The OCPMP provides contracting support for those Programs and procuring units
                 that do not have contracting authority. However, accountability for contract
                 management and performance remains with the Programs and procuring units and
                 they must provide systems and qualified personnel to meet these obligations.

                 OCPMP Responsibilities
                 This new office has new responsibilities that demand important resource planning
                 efforts. In addition to providing traditional contracting support, OCPMP
                 extensively manages the contracting system, monitors system quality and
                 performance, provides technical consulting and establishes a full-service
                 contracting information center.

Expected Outcomes
There were few performance metrics from which to measure the baseline and future
improvements. Existing managing-for-results (MFR) objectives defined current goals but only
addressed a narrow range of contracting activities. Though the Team desired to assign measurable
outcomes, it was not possible to intelligently project levels of performance with so little historic
data. Anecdotal evidence suggested potential for dramatic performance improvement once the
contracting system was transformed. For aggressive monitoring of contracts and the delegation of
authority to program units should result in productivity increases. Overall, the Department
expected enormous benefits of quality, efficiency, timeliness, productivity and effectiveness.

         Decentralized Contracting
         This produced clear responsibility and accountability for the contract. Each Program was
         able to establish MFR goals and objectives that contribute to the Department’s standards
         supporting a results oriented system.

         Team-Based Contracting Practices
         These resulted in much greater productivity and reduced the tremendous competitive
         demands on the Department’s resources. Relying on teams resulted in much improved
         communication throughout the Department.

         Operations Based on Standardized Policies and Procedures
         These have had a major impact on contract uniformity, quality and the efficient use of the
         Department’s skilled resources.




                                                                                               - -17
                New OCPMP
                This office sets the tone for the change in attitudes and culture necessary for such a major
                Department-wide reform. OCPMP provides central management focus and serves as the
                anchor for the procurement and contracting structure and system. It does this by
                promulgating clear, coherent guidelines and standards, making the process cooperative
                rather than linear and hierarchical, making information and assistance easily available,
                ensuring that personnel are properly trained, and setting standards for continually
                monitoring and evaluating performance.

                Uniform training for all Department Personnel
                This supports a more efficient, timely and effective procurement system, provides higher
                quality of services received for the funds expended, and improves employee attitudes and
                performance.

                Contract Monitoring
                There is a major new focus on contract monitoring, ensuring that the monitoring process
                is practiced throughout the Department, that procedures and guidelines are communicated
                and implemented, and that the Department is receiving the services and deliverables
                intended from its contracts.

13. Why is the program a new and creative approach or method?

   The program breaks traditional administration and governance of public contracting and procurement
   processes by acknowledging the ―customer‖ as the central point within the entire life cycle and
   delivery system. Technology has been utilized to provide services consistent with customer
   expectations, at minimum costs. Responsibility and accountability for successful project execution is
   evenly spread-out among the principal stakeholders, driven by the customer; improving resource
   utilization (human, fiscal, intellectual, and technology), collaboration and knowledge sharing,
   information dissemination, monitoring, measurement, reporting, and quality assurance.

   Processes are facilitated along a horizontal, cross-functional, joint ownership landscape as opposed to
   standard vertical, linear, hierarchies. Cycle times have been reduced on average 45%, workforce
   competencies have improved, pre-award productivity savings of $819,000 have been realized,
   information sharing is now standard, and the quality of the final product has improved without
   degradation of risk management strategies.

14. What were the program’s start-up costs? (Provide details about specific purchases for
    this program, staffing needs and other financial expenditures, as well as existing
    materials, technology and staff already in place.)

   $25,000 was used for consultant services to conduct the Departmental needs assessment, analysis, and
   process improvement recommendation report.

   Human resources were identified and provided by means of Departmental consolidation of transaction
   specific procurement units, i.e., technology, commodities, and human services . Fully staffing the unit’s
   human resource compliment added five full-time-equivalent positions at an annual expense of
   $230,000. The initial training allocation was $50,000, although only $25,000 was used.

   There were no technology enhancements required. Internal resources were used to develop the core
   contracting database, at a savings of approximately $500,000.00 for an off-the-shelf system. Migration
   of service delivery to on-line, web based channels was accommodated via internal resources on staff.
   No specials projects were created or funded. Personnel on regular payroll accomplished all
   deliverables. No special PC hardware or software was required. All upgrades were facilitated via
   standard Departmental time lines.



                                                                                                       - -18
15. What are the program’s annual operational costs?

   Post-implementation costs of the process improvement plan are incorporated within the operating
   budget of the Department’s contracting and procurement unit, Office of Contract Policy, Management
   and Procurement. Pre-award costs for team-based contracting and procurement efforts are
   approximately $1,820,409.00, associated with processing approximately $1 billion in contracting and
   procurement transactions.

16. How is the program funded?

   Funding is provided through annual Departmental budget appropriations.

17. Did this program require the passage of legislation, executive order or regulations? If
    YES, please indicate the citation number.

   No new legislation, executive order(s), or regulation was required to institute the internal change
   management process.

18. What equipment, technology and software are used to operate and administer this
    program?

   The Department’s contracting and procurement unit operates off an existing statewide Financial
   Management Information Systems and internal, unit specific databases.

19. To the best of your knowledge, did this program originate in your state? If YES,
    please indicate the innovator’s name, present address, telephone number and e-mail
    address.

   The concept of team-based management has been universally available for some time; however,
   successful implementation in public procurement and acquisition had not been achieved prior to the
   Maryland Department of Health and Mental Hygiene (DHMH) rollout. The Maryland initiative
   resulted from recommendations made by the then Governor’s Council on Management and
   Productivity with sponsorship by the DHMH Deputy Secretary of Operations, Jon Seeman (no longer
   with the Department).

20. Are you aware of similar programs in other states? If YES, which ones and how does
    this program differ?
   Inquiry to the National Institutes of Governmental Purchasing, Inc. and other public procurement
   bodies has not identified any other public procurement unit successfully utilizing the team-based
   management construct similar to that applied by the Maryland Department of Health and Mental
   Hygiene.

21. Has the program been fully implemented? If NO, what actions remain to be taken?
   Yes, the program has been fully implemented as has expanded beyond its original design to encompass
   complete end-to-end service fulfillment. The DHMH Office of Contract Policy, Management and
   Procurement currents facilitates service delivery via sub-sections devoted to Integration Support,
   Project/Contract Management, Direct Service Delivery, Audit/Compliance, Technology and Training,
   Solutions Implementation, and Performance Excellence.



                                                                                                         - -19
22. Briefly evaluate (pro and con) the program’s effectiveness in addressing the defined
    problem[s] or issue[s]. Provide tangible examples.

   Planned Benefits (11/01/01)

   Much benefit will be derived when the plan is fully implemented. Up-front investments in systems
   and training are required in order to reap savings in the longer run. Ultimately, the Department will
   realize a significantly accelerated contracting process throughput. The efficiency will reduce the
   current pressure to add more skilled resources to complete the development and awards cycles in a
   timely manner. Dramatically enhanced communications throughout the contracting process will
   increase productivity and reduce duplicative effort. Also, inherent in the plan is the potential for
   reducing the total outlay for services through attentive contract monitoring and the use of contracting
   performance standards.

   Properly implemented, the new contracting system will have a unifying effect on the Department,
   while the performance improvements that are achieved will be a source of departmental pride and
   future strength. Benefits will be derived from the following seven principal outcomes:

       1.       A central contract management organization responsible for ensuring a high level of
                quality in contracting system performance.
       2.       The standardization of contracting processes across the Department and a requirement for
                formal monitoring of contracts;
       3.       Universal contracting policies and procedures maintained at the departmental level;
       4.       Contracting processes reliant on team-based work practices;
       5.       A contracting system designed to vest full contract management and authority with the
                program authority;
       6.       Ongoing technical training for upgrading and maintaining procurement skills; and,
       7.       Evaluative measures to gauge performance of contracts and service delivery.


   Benefits Realized

   In 2004 the program was awarded Outstanding Agency Accreditation Achievement by the National
   Institutes of Governmental Purchasing, Inc., one of only 68 procurement units in the country and the
   only non municipal, county, agency, or statewide entity.

   The program has successfully transformed the Department’s previously disjointed processes into a
   uniform, effective, team-oriented mechanism fostering customer centric focus, process efficiency,
   collaboration, knowledge management, workforce competency, information dissemination, compliance
   adherence, web based delivery channels, performance based measurement and quality standards,
   quantitative workflow analysis for decision making support, and enhanced integrity in transaction
   processing (reductions in errors and less rework).

   The program has afforded the Department the mechanism to receive increased delegated authority
   four-fold its previous level, providing opportunities for increased self-sufficiency and self-
   determination in assuring the needs of its customer population are met in the most efficient, timely
   manner possible. (DHMH/OCPMP is the only unit in the state to receive its level of delegated
   authority).

   Quantified analysis confirmed (Department Budget Office and Chief Financial Officer) one-year
   program productivity savings for pre-award processing of 28,802 hours, equating to $819, 183.00. The
   average contract transaction cycle time has been reduced 45%, eliminating 17 steps from the prior
   process.




                                                                                                       - -20
   ―Customers‖ have been provided key stakeholder status in ensuring service fulfillment, improving
   collaboration and partnership, morale, and overall participation in the process. Workforce
   competencies have shown quantified improvement leading to a 65% reclassification (promotion) rate
   within the unit (an achievement under current statewide fiscal stress). External customers
   (vendors/contractors, etc.) have realized expedited payment processing, issue resolution, and improved
   quality in solicitation packages, bid evaluations, and the entire award process (vendor claims, protests,
   and appeals have shown quantified reductions in all categories).

   The program is currently viewed as the state standard and is being evaluated for further
   implementation in sister agencies. Documentation on the program has been requested for review by the
   Governor’s Office of Minority Affairs, the statewide Procurement Advisory Council (tie to the state
   General Assembly for regulatory, statutory, and policy changes), and national procurement governing
   entities for assessment and reuse of best practices and lessons learned.

   Customer satisfaction surveys, internal and external, reflect the program has met or exceeded the
   majority of challenges precipitating its initiation. Ongoing focus is concentrated in:

   Quality Assurance                  Audit/Compliance
   Integration Support                Project/Contract Administration
   Information Dissemination          Solutions Implementation/Administration
   Technology & Training              Workflow Analysis
   Direct Service Delivery            Performance Excellence

23. How has the program grown and/or changed since its inception?
   Success of the program has led to expansion on a statewide basis encompassing dedicated curriculum
   development and training for sister agencies (workforce competencies); assurance of audit and
   compliance governance; integration support for statewide delivery channels; project/contract
   administration for post-award oversight; development and dissemination of end-to-end process
   workflow analyses supporting staff and resource utilization; quality assurance and measurement
   reporting; database administration; and marketing.

      The unit has assumed leadership for contracting and procurement statewide information
       dissemination via its Road to Excellence newsletter.
      Training initiatives have expanded to include external business partners and outreach.
      Unit Audit/Compliance assurance standards are being adopted by the Governor’s Office of
       Minority Affairs for statewide application relative to Minority Business Enterprise participation.
      The unit’s Project Management office is undertaking statewide leadership for post-award contract
       administration processes, creating uniform expectations and resource availability.
      The unit’s Workflow Analyses component is being used as the statewide benchmark for
       cost/benefit analyses aided executive decision-making for acquisition strategies and life-cycle
       administration.
      The unit’s strategy for migrating service delivery to online, web based channels is being adopting
       by sister agencies striving to achieve similar results of the unit’s e-Gov goal of 100%.
      The program’s foundation of team-based management is being adopted statewide, phased into
       sister agencies as a mid-term strategy for implementing change, establishing the base for statewide
       application of technology, collaboration, and partnerships.

   In two-years the unit has expanded and grown from departmental ―procurement‖ transaction enabler to
   statewide leader of process improvement and change implementation, encompassing service
   fulfillment delivery.




                                                                                                       - -21
24. What limitations or obstacles might other states expect to encounter if they attempt to
    adopt this program?

    Contracting and procurement processing is an established discipline, deep rooted in traditional
    philosophy, methodology, and bureaucracy. Stakeholders may be reluctant to readily adopt change,
    particularly one supporting transferring elements of control to others in a dependent, and partnership
    environment. Commitment must be established at the executive level to ensure the time and resources
    are provided and that ample opportunity for success is also provided. This type of change can represent
    a long-term commitment that needs to withstand expected and unexpected tests of its charter.

    In the broader context of service fulfillment, effecting organization changes of this magnitude and
    importance are not without risk. A commitment by leadership and a resolve to ―stay the course‖
    against tough obstacles, predictable as well as unpredictable, are vital elements. A clear management
    plan must be in place, and there must be a firm belief in the expected outcomes.




Add space as appropriate to this form. When complete, return to:
CSG Innovations Awards 2004
The Council of State Governments
2760 Research Park Drive, P.O. Box 11910
Lexington, KY 40578-1910
innovations@csg.org

DEADLINE: All original applications must be received by April 20, 2004, to be
considered for an Innovations Award for 2004.
ApplicationForm04.doc




                                                                                                      - -22

				
DOCUMENT INFO
Description: Results Oriented Contract document sample