Office of Procurement. Cherri Branson Director

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1 Office f Prcurement Cherri Bransn Directr

2 Office f Prcurement Prcurement Operatins The Office f Prcurement btains gds, services and cnstructin fr the Cunty Gvernment using a wide variety f purchasing methds and prcedures. The Office f Prcurement strives t maximize value and cmpetitin fr Mntgmery Cunty residents, while maintaining integrity, transparency and legal requirements. Prcurement Operatins Divisin Business Relatins and Cmpliance Participants Businesses Prcurement Prcess Using Departments Office f Management and Budget The prcurement prcess includes checks and balances and is cmprised f multiple participants. Office f the Cunty Attrney Department f Finance, Divisin f Risk Management 2

3 Office f Prcurement Prcurement Operatins Accmplishments Develped, updated and cnducted cre training mdules fr cntract administratrs Technical assistance and cnsultatin t department cntract administratrs Launched cntract administratr frums Trained departments n envirnmentally friendly purchasing practices Publish prcurement cntract, slicitatin and reprting data by electrnic means Increase vendr accessibility thrugh cnferences, utreach and ne-n-ne meetings Integrate cmpliance and ther regulatry requirements int prcurement peratins 2010, 2011 and 2012 Award Recipient Cllabratin/Best Practices: Lcally, Reginally, Statewide and Natinally The Natinal Prcurement Institute, Inc Award Recipient 3

4 Office f Prcurement Prcurement Operatins Prcurement Grwth Mntgmery Cunty Gvernment awarded cntracts fr gds, services, and cnstructin ttaling mre than $1.06 billin dllars in fiscal year Natinally recgnized as a leader in Prcurement, emplying best practices Exceeding Expectatins 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 FY11 FY12 FY13 FY14 FY15 FY16 Dllars Implement new legislatin Streamline the prcess Maximize cmpetitin Best Value fr taxpayer dllars Require impartiality and fairness Cllabrate and cperate with internal and external stakehlders Actins $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 4

5 Office f Prcurement Prcurement Operatins Laws and Dcuments Charter Centralized System f Purchasing Cde Chapter 11B f the Cunty Cde Prcurement f gds, services, r cnstructin Every expenditure f public funds Mntg. C. Cde Sec. 11B-51 thru 11B-54 & Chapter 19A, Ethics Prcurement Regulatins Prvides details fr prcurement prcess and activities 5

6 Office f Prcurement Prcurement Operatins Prcurement Methds Direct Purchases $10,000 r under ttal requirement Infrmal Purchase (Small Purchase) Threshld between $10,000 and $100,000 Advertised n Internet fr minimum f 5 business days frm pst date t due date Based n lwest price (respnsive and respnsible) Infrmal Slicitatin (Mini-Cntract) Threshld between $10,000 and $100,000 Advertised n Internet fr minimum f 5 business days frm pst date t due date Awarded t mst advantageus, cnsidering price and ther pertinent factrs 6

7 Office f Prcurement Prcurement Operatins Prcurement Methds (cnt d) Invitatin fr Bid (IFBs) Cmpetitive sealed bid Threshld $100,000 r mre Based n lw bid, t respnsive, respnsible firm(s) Request fr Prpsals (RFP s) Cmpetitive sealed prpsals/best value Threshld $100,000 r mre Scpe Evaluatin Criteria/pints QSC Evaluatin 7

8 Office f Prcurement Prcurement Operatins Key Types f Cntract Cmpensatin Fixed Price Time and Materials (with nt-t-exceed amunt) Cst Reimbursement Requirements Definite Quantity Cst Plus Percentage f Cst NOT permitted by Cde and Regulatins 8

9 Office f Prcurement Cntract Cmpliance Cntract Cmpliance Prgrams: Minrity, Female and Disabled Owned Business Prgram(MFD) Gives Primes up t 10% f the ttal evaluatin pints fr their MFD participatin FY17 Gal: Prfessinal Services: 15%, Gds: 15%, Cnstructin: 21%, Other: 22% Lcal Small Business Reserve Prgram (LSBRP) Reserve 20% f eligible cntracts t be awarded t lcal, small businesses Wage Requirements (Living Wage) Law Applies t Services cntracts (>400 cntracts) FY17 WRL wage rate: $14.40/hur Health Benefits and Pay Equity requirements Prevailing Wage Law Applies t Cnstructin Services cntracts ($500K) Use wage schedule published by the MD State Female Owned Vendrs Cunty s Cntracting Opprtunities Minrity Owned Vendrs 9

10 Office f Prcurement Cntract Cmpliance Accmplishments and Enfrcement MFD Cntracting: FY16 MFD businesses received $175.5 millin LSBRP Cntracting: FY16 LSBRP businesses received $87.3 millin Enfrcement n Wage Requirements Law (WRL): FY16 WRL returned $300K t 318 wrkers as results f 5 audits. Enfrcement n Prevailing Wage Law (PWL): Mnitred 74 Cnstructin Prjects fr Prevailing Wage Cmpliance in FY16, ttaling 782K wrk hurs n cnstructin jb sites. FY16 reprted $574K t 410 wrkers due t misclassificatins, pending final findings t return wages. Use f Technlgy and Scial Media Weekly e-newsletters infrm vendrs n upcming cntracting pprtunities and utreach events. The Central Vendr Registratin System (CVRS) is ne stp shp fr vendrs t register and search. MFD perfrmance and Prime/Sub payments is tracked by PRISM. Use scial media (Facebk/Twitter/LinkedIn) t cnnect with vendrs. 10

11 Office f Prcurement Business Relatins Outreach and Training Newly designed Cntract Administratrs (CAs) training helps departmental CAs t better understand OBRC cmpliance requirements. CA training mdules are a jb requirement fr Cntractr Administratrs. Mre than 800 cunty staff were trained n cmpliance prgrams in FY16. Cmpliance requirements is ne f the tpics in the CA Frums hsted by Prcurement. FAQs, checklists fr CAs t assist in enfrcing cmpliance laws. MFD and LSBRP vendrs gain mre access t the Cunty s cntracting pprtunities thrugh OBRC s utreach effrts: OBRC staff met with thusands f vendrs thrugh 20 business events in FY16 Hundreds f vendrs met with Cunty CAs and made cnnectins thrugh targeted utreach events n specific prjects, industries and departments. (i.e. Silver Spring Library, ESCO, IT Open Huse, Public Safety Open Huse, etc.). OBRC wrks with chambers f cmmerce and vendr cuncils t prvide technical assistance n cntract cmpliance requirements. Lcal, small r minrity businesses benefit frm OBRC s 1:1 cnsulting (15 vendrs/mnth) and series f themed wrkshps n capacity building, cntract cmpliance requirements, prcurement prcesses, prpsal writing, etc. 11