An Inter-Agency AuditOffice of the Chief Inspector General

ROAD MAP TO EXCELLENCE IN CONTRACTING

Background

Contract Accountability, Who does it? Contract Manager Contract Monitor Quality Assurance Auditors

Auditor GeneralOPPAGACPA (A-133 Single Audit) Internal Audit (Inspector General)

Background

Contract Accountability, Who does it? Contract Manager Contract Monitor Contractor/Provider

Background

Contract Accountability, Who does it? Quality Assurance

Medical or clinical Internal or external

Background

Contract Accountability, Who does it?Auditors

Auditor GeneralOPPAGA

Background

Contract Accountability, Who does it?Auditors

CPA (A-133 Single Audit) Internal Audit (Inspector General)

Department of Management ServicesDepartment of TransportationDepartment of CorrectionsDepartment of EducationExecutive Office of the GovernorDepartment of Juvenile JusticeDepartment of Children and Families

Working TogetherSeven Governor’s Agencies

A Different ApproachWhat Do We Already Know?

Do not duplicate prior work. Add valueIdentify source of problems.

A Collective AnalysisBased on Each Agencies knowledge of the contracting Problems.

Approximately 100 reports examinedSeven Governor’s AgenciesIncluded Auditor General and

OPPAGAThree year period493 Findings analyzed and classified

The Contracting ProcessWhere are the Problems?

Needs AssessmentProcurement MethodologyContract WritingPerformance MonitoringPaymentContract Closure

What it Means and What Do We Do.In-put from procurement staff at seven agencies.

Met with each agency contracting staffValidated findingsRoot causes Identified by agency staff

and Auditors.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: Procurement Rules, Statutes, Policy, Procedure developed piece meal over time in response to specific abuses or problems.

WE RECOMMEND: The replacement of the myriad overlapping and conflicting statutes and guidelines

with one unified, effective system of controls. MANAGEMENT RESPONDED: We agree and work has

already begun. “MyFloridaMarketPlace” is in place and we have a goal to overhaul Chapter 287 which will result in a consistent and unified system of procurement controls.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: The lack of centralized statewide direction in the procurement area has led to inconsistent and deficient contracting practices both among and within agencies

WE RECOMMEND: Department of Management Services accept the leadership bestowed by Florida Statute.

MANAGEMENT RESPONDED: We agree and we are in the process of filling the Directors position and have a renewed focus on our leadership and service role.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: There is no statewide system to train or certify agency contracting personnel, nor are there incentives to encourage professional development

WE RECOMMEND: A statewide training initiative led by DMS be developed. In addition, we recommend incentives to encourage professionalism and certification for administrators, negotiators, monitors and managers.

MANAGEMENT RESPONDED: We agree, we will use our Office of Organizational Development in coordination with other state agencies to assess training needs and

develop appropriate programs and incentives.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: The state's corporate culture does not foster the sharing of best contracting practices among agencies.

WE RECOMMEND: DMS create and foster user groups of professional procurement staff that meet on a regular basis to share best practices and common problems.

MANAGEMENT RESPONDED: We agree, in conjunction with MyMarketPlace we have a created a “super-user” group to focus on and address common issues.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: Agencies’ use of different processes and procedures in awarding and managing contracts causes the contract documents to vary

considerably in format and content. WE RECOMMEND: DMS, with the assistance of

other agencies, develop standard contract formats for use by all state agencies.

MANAGEMENT RESPONDED: We agree and will revise many currently required forms and develop new ones as part of the formal rulemaking planned for the second half of 2003.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: Inadequate systems exist for monitoring

and rating vendor performance. WE RECOMMEND: A uniform vendor monitoring and

rating system be created which incorporates links to contract monitoring reports, vendor websites, closeout evaluations, and a method for other agencies to

access performance evaluations. MANAGEMENT RESPONDED: We agree and with

assistance from other state agencies we will consider ways to develop and implement a uniform vendor monitoring system.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: A formal procedure for agencies to perform and document needs assessments has

not been developed by DMS. WE RECOMMEND: DMS fulfill the statutory

mandate to develop formal procedures for agencies to perform and document needs assessment.

MANAGEMENT RESPONDED: We agree, with input from state agency experts we will develop needs

assessment procedures.

Report Recommendations.Based on agency staff and auditors analysis

WE FOUND: Lack of Expertise in Negotiating Contracts. WE RECOMMEND: that legislation be proposed similar

to the Truth in Negotiations Act to assist contract negotiators in determining whether the contractor’s proposal is reasonable.

WE ALSO RECOMMEND: that DMS offer a negotiating

training program for state employees. MANAGEMENT RESPONDED: Agreement with a

discussion of issues but no commitment to action. However will develop a training program for employees.

Conclusion.What we want to happen.

Appoint a point person to review this report and its supporting documentation

Draft the directives needed to implement those recommendations authorized under existing legislation

Draft legislation, as needed, to enable implementation of those recommendations requiring statutory changes

Track the implementation process and report its progress to the Governor

An Inter-Agency AuditOffice of the Chief Inspector General

ROAD MAP TO EXCELLENCE IN CONTRACTING