DMS Office of Efficient Government Kick Off Meeting

DMS Office of Efficient Government Kick Off Meeting

E. O. 2004 -45 / Center for Efficient Governme Project Gate Management Proces (Historical Only) Current Projects Gate 1 Business Case Stage 1 Gate 2 Procurement Stage 2 Gate 3 Contract Management Change Management Stage 3 Stage 4 Gate 4 Post Monitor Implementation Stage 5 New Projects 2

Chapter 2005 -152, Laws of Florid Amended § 216. 023, F. S. LBRs) ( • Added subsection 4(a)11. , to require “supporting information … for any request to outsource or privatize agency functions” -- led to LBR Schedules XII and XIIA • Added subsection 4(a)12. , to require an “evaluation of any major outsourcing and privatization initiatives undertaken during the last 5 fiscal years having aggregate contract expenditures exceeding $10 million during the term of the contract” -- led to LBR Schedule XIIB 3

Chapter 2006 -224, Laws of Florida Efficient Government Act of 20 • Creates new sections 287. 0571 to 287. 0574 • Focuses on “outsource” of services – Vendor to provide a service, in whole or in part, or an activity, as defined in section 216. 011(1) – Agency retains the responsibility and accountability for the service or activity – Transfer of management responsibility for the delivery of resources and the performance of those resources 4

Law Creates New Council and Offic • Council on Efficient Government (by July 31) – – DMS Secretary (chair) Two other agency heads Cabinet member other than Governor Three private-sector members • Office of Efficient Government (building now) – Within DMS Secretary’s office – Mission: To support the Council on Efficient Government as an outsourcing center of excellence in order to deliver quality, innovative, resource-saving solutions 5

Council Duties • Develop best-practice standards and processes for creating and evaluating business cases to outsource • Review agency business cases to outsource more than $1 mm/FY and as requested by the Governor or any agency head • For business cases to outsource exceeding $10 mm/FY, provide advisory report to the agency, Governor, and Legislature before the agency proceeds with solicitation • Develop, in consultation with AWI, guidelines for assisting employees whose jobs are eliminated as a result of outsourcing • Report annually on innovative methods of delivering government services which would improve the efficiency, effectiveness, or competition in the delivery of government services • Report annually on each agency’s outsourcing efforts 6

Business Cases • The recently issued LBR instructions for FY 07 -08 aligns the new requirements with existing chapter 216 requirements – your Schedule XII will be your initial business case • New law hinges time periods around solicitation dates, but in practice we will take holistic approach (next slide) • Council may develop new forms and processes 7

Outsourcing Contracts > $10 mm/F Require Council Review and Repo (A) (B) (C) (D) (E) (F) Submit BC to OEG Council Meeting to review BC (Quarterly) Council Report to Agency, EOG, House, & Senate Start Solicitation [(C) + 30 days)] End Solicitation (assumed 60 days)/ Submit BC Sign Contract [(E) + 30 days) 10/15/06 (if in LBR; otherwise, 10/1) 12/1/06 12/15/06 1/15/07 3/15/07 4/15/07 1/1/07 3/15/07 4/15/07 6/15/07 7/15/07 4/1/07 6/15/07 7/15/07 9/15/07 10/15/07 7/1/07 9/15/07 10/15/07 12/15/07 1/15/08 10/1/2007 12/15/2007 1/15/2008 3/15/2008 4/15/2008 8

Outsourcing Contracts $1 mm to $10 mm/F Require Council Review (A) (B) Submit BC to OEG ((B) – 10 days)) Council Meeting to review BC (Quarterly) (C) Start Solicitation [(B) + 30 days)] (D) (E) End Solicitation (assumed 60 days)/ Submit Final BC Sign Contract [(D) + 30 days] 8/20/06 9/1/06 9/20/06 11/20/06 12/1/06 12/20/06 2/20/07 3/20/07 2/20/07 3/1/07 3/20/07 5/20/07 6/1/07 6/20/07 8/20/07 9/1/07 9/20/07 11/20/07 12/1/07 12/20/07 2/20/08 3/20/08 9

Outsourcing Contracts < $1 mm/F Council Will Track and Report Annuall BC submitted to OEG (30 days before execution of contract) Sign Contract (30 days after final BC submitted) 7/15/06 8/15/06 10/1/06 11/1/06 1/1/07 2/1/07 4/1/07 5/1/07 7/1/07 These are sample dates, presented quarterly for illustrative purposes only. Business cases may be submitted at any time T, and the agency may then execute the contract at T + 30 days. 8/1/07 10

OEG Process for Business Case Review All >$10 mm & Any >$1 mm Submitted 30 Days Ou Day 1 4 Action Agency submits initial BC OEG completes initial review and schedules meeting with agency 5 -12 OEG meets with agency 15 OEG sends agency written evaluation and guidance on BC 25 Agency submits revised BC (if any) 30 Agency presents BC to Council Note - The earlier an agency submits BC, the more actively OEG will help improve it before submittal to Council 11

Business Case Preparation Read Section 8 of the Law with 287. 057(1 “A contractor … or its employees, agents, or subcontractors, may not knowingly participate, through decision, approval, disapproval, or preparation of any part of a purchase request, investigation, or audit, in the procurement of commodities or contractual services by a state agency from an entity in which the contractor, or its employees, agents, or subcontractors, has a material interest. ” 12

Changes to 287. 057(17)(b Negotiation Team for ITNs • Not limited to outsourcing contracts • If the contract exceeds $1 mm/FY, at least one of the team members must be DMS-certified Contract Negotiator (rule development workshop July 25 at 1: 00 p. m. at DMS) • If the contract exceeds $10 mm/FY, at least one of the team members must be PMI-certified Project Management Professional 13

Spreading the Word Internall Stakeholders in the New Law • • • Program Areas that Outsource Budget Office General Counsel Director of Administration Purchasing Director Contract Managers/Contract Administrator Project Management Office Chief of Staff Legislative Affairs Director 14

Office of Efficient Governmen Contact Information • Ronald Baker, OEG Liaison (850) 414 -6755 ronald. baker@dms. myflorida. com • Fred Springer, Interim Executive Director (850) 410 -0978 fred. springer@dms. myflorida. com 15