for the State of Arizona Background Several states have embarked upon procurement reform over the past 10 years Arizona has conducted similar initiatives at the agencyadministrative level but without a comprehensive legislative and organizational focus ID: 1037151
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1. Procurement ReformEnsured value for the State of Arizona
2. BackgroundSeveral states have embarked upon procurement reform over the past 10 yearsArizona has conducted similar initiatives at the agency/administrative level, but without a comprehensive legislative and organizational focusArizona is ready for a reform initiative to gain greater value, efficiency, quality, consistency, and cost savings for our taxpayers
3. Procurement ReformArizona Procurement Code (APC)Current LawLobbying Regulations and Registration limited to legislative actions with no provisions for procurement lobbying activitiesReformExpand definition for lobbying to include attempting to influence the procurement of materials, services, and constructionProhibit vendors from soliciting state employees for employment during defined procurement periodProhibit specific actions for state employees, even if employing agency is exempt from APC
4. Procurement ReformArizona Procurement Code (APC)Current Law29 whole or partial APC exemptions for 24 different agencies ReformExpand exemptions to include products/services where competition is not available or feasible:Textbooks (School for Deaf and Blind)Entertainment (State Fair)Utilities (all agencies)Certifications, professional memberships, conference registrations (all agencies)
5. Procurement ReformArizona Procurement Code (APC)Current LawLimited authority at ADOA for procurement managementNewspaper advertising required for service procurements ReformExpand authority to:Establish compliance programEstablish mandatory procurement training/ certification programTransfer agency Chief Procurement Officer (CPO) positions to ADOA for administrative control; CPOs physically remain at agencies (similar to Personnel Reform)Establish centralized Procurement Attorney unitNewspaper advertisement requirement removed; continue posting solicitations on ProcureAZ and notifying registered vendors (27,758 active vendors)
6. Procurement ReformArizona Procurement Code (APC)Current LawExcessive written determinations* requiredLow bid procurements required for all purchases unless otherwise justified (written determination)ReformEstablish flexible approach regarding determinations including: Change to Pre-Offer Conference ScheduleAdapt contract clauses to solicitationsRefine use of cost-reimbursable contractsRemove need for written determinations to use other procurement methods, i.e. Request for Proposals and Alternative Delivery Methods* A determination is a written justification stating the basis for a particular action.
7. Procurement ReformArizona Procurement Code (APC)Current LawInformal bid limit* of $50,000 for all procurementsSmall Business set-aside requirement for all procurements less than $50,000ReformIncrease informal bid limit* to $100,000 for all procurementsIncrease Small Business set-aside requirement for all procurements up to $100,000 *A small dollar procurement that is solicited electronically or by phone to three vendors.
8. Procurement ReformArizona Procurement Code (APC)Current LawExtensive information systems and telecommunications procurement evaluation requirementsLack of clear authority to consider vendor performance Cooperative PurchasesLack authority to “piggyback” – purchase off other contractsParticipation in cooperative purchases limited to political subdivisions, educational and health institutionsReformEliminate actions duplicated by other processes, i.e. Project Investment Justification (PIJ)Establish vendor performance standards to use in procurement evaluationsExpand cooperative program: Allow limited “piggyback” purchases from other political entities and cooperativesAllow all 501(c)(3) companies to utilize statewide contracts