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The Public Procurement Predicament P1

The Public Procurement Predicament P1

11th Jun 2018

CPO

Taken from New York CPO Event in November 2017

8.5 Million Reasons to Transform

Mayor’s Office of Contract Services, NYC

 

Welcome to New York City
  • Over 8.5 Million People
  • 2 Million Under the Age of 18
  • Over 27k People per Square Mile
  • Over 200 Spoken Languages
  • Two-Thirds of Citizens Rent
  • 40 Minute Average Commute

Fiscal Year 2017 Procurement

$6.5 billion (31%)- Human Services

$4.2 billion (20%)- Professional Services

$4 billion (19%)- Standardized Services

$3.6 billion (17%)- Construction

$1.6 billion (8%)- Goods

$1.1 billion (5%)- Other

Total= $21 billion

 

The single biggest obstacle to many of our operational objectives is our flawed procurement process.

 

Welcome to the Mayor’s Office of Contract Services (MOCS)

  • 40 Mayoral Agencies
  • 175 Non-Mayoral Agencies
  • Over 27 Procurement Systems
  • Over 20 Procurement Methods
  • 238 Regulatory Requirements
  • Over 18,000 Vendors Paid in 2016
  • Over 450 Vendor Requirements
  • 21 Billion in Contracts in 2017

The Role of MOCS

  • Provide technical assistance and training to City agencies and vendors
  • Manage policy implementation and ensure transparency through public data sharing and reporting to legislators
  • Review and approve procurement actions and contract management actions for 40 mayoral agencies
  • Manage online portal where vendors submit required disclosure information and access performance evaluations.
  • Monitor Annual Human Services Plans to ensure contract timeliness
  • Review and administer loans through the Fund for the City of New York

Procurement Process Overview

  1. Solicitation, Planning, Notification, Release
  2. Evaluation (RFP or Competitive Solicitations)
  3. Public Hearing
  4. Oversight Approvals by MOCS, OMB, Law, DOI, DLS
  5. Comptroller Registration (30 days)
 The amount of time necessary to complete a procurement varies by method:
  • RFP- 13 months
  • Bids- 9 months
  • Competitive Negotiated Acquisition- 4-8 months
  • Negotiated Acquisition Extension- 4 months
  • Renewal- 4 months
  • Amendment- 2-4 months

Procurement Methods

Competitive

  • Small purchase- Competitive: over $20k, $35k for construction
  • Competitive Sealed bid- Lowest priced responsive & responsible Vendor
  • Competitive Sealed proposal- Agency balances price & other factors

Non-Competitive

  • Demonstration Projects- Pilot Exercises
  • Sole Source- Only single vendor available
  • Micro-purchase/P-Cards- Non-competitive: under $20k, $35k for construction
  • Required/Authorized Source- Outside group requires a specific vendor
  • Subscriptions- Training services
  • Innovative Procurement- New methods

How It Has Not Worked Until Now

  • Rigid Rules
  • Technology, not people
  • Prefer the As Is
  • Reliance on paper
  • Fixed old problems and created new ones
  • Limited User Involvement

The Vision

Objectives

  • Process Reform- Streamlining the Procurement Process
  • Technology- Single online portal for all Vendor Information
  • Team- A stronger procurement partnership between vendors and the city

Process Improvement

  • Eliminating paper-based procurement processes
  • Vendors create, own, and manage their accounts online
  • Easier data validation and task management

Transparency

  • Relevant vendor information is securely shared across Agencies
  • Reports for Agencies and vendors using use data from the same database

Technology

  • Integrating many procurement processes into one user-friendly portal
  • Shared online platform for vendors and City Agencies

Financial Impact

  • Reducing duplicative data entry, saving time and money for City Agencies, as well as vendors
  • Streamlined process to reduce barriers to competition

NYC Health and Human Services (HHS) Accelerator

Background: Launched in 2013, simplified the contract process for nonprofits.

Components: Account management; document vault; service catalog; financial module; help request; budget and invoice grids, agency review workflows, payment tracking and integration with city systems.

Current Status (as of September 2017): Utilized by 15 agencies, with over $1.1 billion in
procurements released for fiscal 2017 and $2.7 billion in financial transactions.

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