Purchasing Directors’ Meeting August 19, 2004. 2 Purchasing Directors’ Meeting August 19, 2004 Agenda Welcome / Meeting Overview RESPECT Update Hurricane

Purchasing Directors’ MeetingAugust 19, 2004

2

Purchasing Directors’ MeetingAugust 19, 2004 Agenda

• Welcome / Meeting Overview

• RESPECT Update

• Hurricane Charley Volunteers

• Training and Certification Program – Pilot Class Recognition

• Operations / State Term Contract Update

• Ethics in Florida Government

• Center for Efficient Government

• Next Meeting Location / Time

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• RESPECT Update







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RESPECT Update

• New three-year contract to act as Central Nonprofit Agency (CNA) pursuant to section 413.031 et seq.

• Contract includes new performance measures

• RESPECT has circulated request to inventory past and projected business

• Contact: Randy Borges ([email protected])David Mikowski ([email protected])

(850) 877-4816

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• RESPECT Update







6

Hurricane CharleyThanks to Those Who’ve Been Helping….

David Callaway – DOT

Diane Harper – DEP

Nancy Harrison – FDLE

Bob Haskins - DCF

Sandy Holm - DCF

John Kineer – DOR

Tammie Kuhn – DOH

Carolyn Love - DCF

Mark Lovell – DMS

Bruce Lynn – HSMV

Tammie Mercier – FWC

Bob Notman - DOR

Gwen Parker – DOE

Janice Pursley - DEP

Cyndee Sams – DMS

David Shufflebotham – HSMV

Beth Sparkman – DOR

Bill Spencer - DACS

Dick Stafford – HSMV

Diana Trahan - DOC

Stacy Wofford – HSMV

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• RESPECT Update







8

EOG IG Audit Report June 03Roadmap to Excellence in Contracting

• “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 that DMS accept the mantle of leadership bestowed by Florida Statute.”

• “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 undertaken using the foundation developed in some agencies. In addition, we recommend incentives to encourage professionalism and certification for contract administrators, negotiators, monitors, and managers.”

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State Purchasing’s Response Training and Certification Program

• DMS polled agencies and national resources for best practices in training of procurement professionals

• DMS developed and conducted first series of eight seminars

• General Public Procurement Jan 7-9• Intermediate Public Procurement Feb 16-18• Advanced/Management Public Procurement Mar 15-19• Public Purchasing in Florida (FL specific) Mar 29-30• Negotiation Strategies Apr 21-22• Negotiation in Florida (FL specific) Apr 23• Contract Management May 19-20• Contract Management in Florida (FL specific) May 21

• Offering four certifications: Purchasing Agent, Purchasing Manager, Negotiator, Contract Manager

10

Pilot Training ClassesAgency Participation

• 117 total attendees at one or more seminars

• 94 state agency attendees (80%)

• 22 state agencies represented (65%)

• Next round of seminars begins September 2004

• See http://dms.myflorida.com/purchasing, or call Cyndee Sams at 921-0266

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Pilot Class CertificationsPurchasing Agent

• CPPB or CPPO certification

• Completion of the Public Purchasing in Florida seminar

• Minimum twelve months experience in a full time purchasing position for the State or a political subdivision, i.e., spend the majority of work time:

– making final decisions on procurement methods, contract and purchase order terms and conditions, source and price (may be subject to approval by a purchasing manager), and

– conducting source selection processes

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Pilot Class CertificationsPurchasing Agent

• Thomas F. Blaine Jr. – Miami-Dade County• Staten W. Corbett – Bay County Dist. School Board• Joseph A. Espinosa – DOH• Mark D. Lovell – DMS• Douglas S. Melvin II – DJJ• Tammie R. Mercier – FWC• Jessie C. Moseley – DOC• Vince J. Windham – Okaloosa County School District

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Pilot Class CertificationsPurchasing Manager

• CPPB or CPPO certification

• Completion of the Public Purchasing in Florida seminar

• Minimum three years experience in a full time purchasing position for the State or a political subdivision, at least of which must be in a purchasing management position, i.e., spend the majority of work time

– supervising one or more purchasing positions (defined above), which may include developing purchasing policies and procedures, and making final decisions on procurement methods, contract and purchase order terms and conditions, source and price, and

– conducting source selection processes

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Pilot Class CertificationsPurchasing Manager

• James A. Brewer Jr. – DOH• David A. Callaway – DOT• Staten W. Corbett – Bay County District School Board• Joseph A. Espinosa – DOH• Kathleen M. Hutchins – DOS• Sandra E. King – Santa Rosa County School Board• Douglas S. Melvin II – DJJ• Tammie R. Mercier – FWC• Shirley Molnari – Santa Rosa County School Board• Jessie C. Moseley – DOC• Paul R. Nobles – Escambia County Board of Commissioners• Russ Rothman – DMS

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Pilot Class CertificationsNegotiator

• Completion of these NIGP seminars: General Public Procurement or Sourcing in the Public Sector; and Negotiation Strategies

• Completion of the Negotiation in Florida seminar

• Minimum of twelve months experience in a full time purchasing position (defined above) for the State or a political subdivision

• Leading a team through at least one procurement

through negotiation

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Pilot Class CertificationsNegotiator

• Vonnie R. Allen – AWI• Sonya R. Avant – FDLE• David A. Bennett – DMS• Mary L. Bishop-White – FDLE• Kathleen M. Hutchins – DOS• Mark D. Lovell – DMS• Carol A. McCallum – FDLE• Edward G. McEachron – DOH• Douglas S. Melvin II – DJJ• Paul R. Nobles – Escambia County Bd. of Commissioners• Bo Scearce – DOR

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Pilot Class CertificationsContract Manager

• Completion of the NIGP Contract Management or Contract Administration seminar

• Completion of the Contract Management in Florida seminar

• Minimum of either with the State or a political subdivision:

– twelve months experience in a full time purchasing position (defined above), or

– twelve months cumulative experience managing contracts, i.e., having the responsibility to assure that a contractor performs satisfactorily its obligations, on time, and within budget, as a condition to contract continuation and invoice payment

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Pilot Class CertificationsContract Manager (1 of 2)

• Susan K. Barr – DMS• David A. Bennett – DMS• Mary L. Bishop-White – FDLE• David A. Callaway – DOT• Joseph P. Camit – DMA• Jacklyn Colson – DJJ• John D. Connor – Florida School for Deaf & Blind• Staten W. Corbett – Bay County District School Board• Charles E. Day – DMS • James A. Den Bleyker – DMS• Nancy J. Harrison – FDLE• Mark D. Lovell – DMS• Ommet Mbiza – DMS

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Pilot Class CertificationsContract Manager (2 of 2)

• Douglas S. Melvin II – DJJ• Jessie C. Moseley – DOC• Barbie Phillips – DOR• Stuart P. Potlock – DMS• Ellen R. Potts – DMS• Lynne S. Roberts – Florida School for Deaf & Blind• Bo Scearce – DOR• Beth S. Sparkman – DOR• Robert W. Threewitts – DOE• Edwin E. Valla – HSMV• Marvin L. Williams – DMS

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• RESPECT Update







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Operations UpdateRule Change Review

• We are near the end of the rulemaking proceeding to overhaul Chapter 60A-1. Everyone needs to get familiar with what has changed.

• Overview session:

DMS, Room 101

Tuesday, August 24, 11 a.m. to noon

Call in: 414-6477 (SC 994-6477)

Presentation will be on web (PD meeting materials page)

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FY 03-04 Survey ResultsTotal Avg. 6.32 out of 10

• Responsiveness = 6.21 Is State Purchasing available and accessible? Do you know whom to contact with questions? Is it easy for you to contact the right person? If you leave a message, how long do you wait before a return phone call? If you request a personal meeting, do you get one?

• Timeliness = 6.22 Once a State Purchasing employee takes over an issue, how quickly do you receive an answer?

• Competence = 6.62 Do you receive accurate, error-free information from State Purchasing? Do you feel confident relying on information provided by State Purchasing? Do you view State Purchasing employees as purchasing professionals?

• Courtesy = 6.80 After interacting with State Purchasing, do you generally feel better or worse? Are State Purchasing employees polite and “customer-centric”? Do you experience State Purchasing as interested in understanding and resolving your needs?

• Value = 5.76 Is State Purchasing helping you reduce cost and/or improve service?

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DMS Re-tooling Buyer Teams

Transportation, Facilities & Supplies – Charles Covington

Transportation and EnergyDavid BennettJim Den BleykerRob Butler

Institutional Furnishings & SuppliesEllen PottsBrenda Wells

MRO & Law EnforcementMark LovellCharles BeallJeff Rackley

Technology, Office Equipment & Services – Steve Hall

Information TechnologyStu PotlockDavid ComerOmmet Mbiza

Office Equip./Support Servs.Charles DaySusan BarrRenee Gregory

Special ProgramsTheresa DollarTom ButlerDonna Smith

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State PurchasingContact Information

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Recycled Content Product Purchases Reporting

• Chapter 287.045 (11), Florida Statutes, requires that each agency report to the DMS its purchases of recycled content products.

• For assistance regarding these reports, please contact:

Charles Day, (850) 488-4946 ([email protected]), or

David Bennett, (850) 921-4072 ([email protected])

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STC UpdateRecycling Electronics

• Recycling Services, End of Life Electronics Equipment, STC No. 991-705-05-1 (July ’04 – July ’06)

• For assistance regarding this contract, please contact:

Rob Butler, 488-7540 ([email protected]), or

David Bennett, 921-4072 ([email protected])

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• RESPECT Update







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Ethics in Florida GovernmentOlympian Interlude

SceneParis Olympics in 1924

AthletesEric Liddell – 100 meter dashAndrew Lindsay – already won medal

British Olympic CommitteeLord Birkenhead – previous discussions with LiddellPrince of WalesLord CadoganDuke of Sutherland

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Ethical IssuesExamples of Pressure

• Arrogant• Inflexible (“room to maneuver”) • Same side• Comparison to others (Lindsay ran and won)• Praising (mocking?) principled behavior• Patriot• Half-way there anyway (“why didn’t you say so?”)• “Explore ways to help this young man reach that decision”• Impertinence• Principle shell-game (“Appealing to your beliefs in your country and

your king”)• Direct request to compromise (“common heritage, bond, loyalty –

asked to make a sacrifice”)• Never, “I want you to do something wrong for me”

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Ethical IssuesConclusion About Liddell

“A true man of principle, and a true athlete. His speed is a mere extension of his life, its force. We sought to sever his running from his self. … No sake is worth that.”

There are written ethical rules. Beyond them, your principles are more intimately bound up with who you are as a person – be clear about them and guard them closely!

31

Recent EOG IG ReportWhistle-blower Allegation Topics

• Officials accepted gifts/gratuities/honoraria from vendors and associations doing business with agency (5/6)

• Prohibited communications regarding RFP with vendors and associations doing business with agency (1/2)

• Officials failed to safeguard their ability to make objective, fair and impartial decisions in conjunction with agency contracting actions, leading to the appearance of ethical impropriety (1/1)

• Officials inappropriately influenced/attempted to influence agency contracting actions (3/3)

• Officials requested agency staff to complete personal assignments while on agency paid time and using agency resources (email, telephones, etc.) (1/1)

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Recent EOG IG ReportChief IG’s Comments

• During period of unprecedented “partnering,” agency partner has duty to know state ethical policies and to act accordingly

• State officials ultimately responsible for adhering to ethical laws, policies and procedures

• Private sector vendors should be held accountable for intentionally or recklessly creating ethical dilemmas for state employees

• More challenging are interactions with those who in some situations are vendors and in others partners (e.g., universities). When roles are unclear, apply most restrictive interpretation of ethical policies

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Recent EOG IG ReportChief IG’s Comments

Investigations can be disruptive and tend to create anxiety, but process should result in appropriate and effective changes

– Improved communications

– Assurances that key decisions impacting multiple program areas include input from all appropriate officials before they are made [DMS note – follow CFEG gate process!]

– Enhanced public trust

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Recent EOG IG ReportRecommendations (Excerpts)

• Management should ensure that decisions to contract with universities are not efforts to avoid competitive selection requirements

• Use only cost-plus contracts with other agencies or universities, to ensure compliance with 5% G&A cap [216.346, F.S.]

• Determine appropriateness and frequency of contracting with universities under 287.057(5)(f)13, F.S., and include contract language that puts agency and university employees on notice that they are not merely partners but vendors

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Recent EOG IG ReportRecommendations (Excerpts

• Provide and document ethics training to all 112.3145 F.S. “specified state employees,” including Governor’s Code of Ethics and agency policy

• Document and retain for file appropriate and required reimbursements to host when interactions with vendors or other external partners include social events, meals, refreshments, etc.

• Contract language should notice vendors of prohibitions against gifts and gratuities to state employees, and provide a remedy when partners provide prohibited items

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Ethical Issues

Resource MaterialsResource Materials

Governor Bush’s Code of Ethicshttp://www.myflorida.com/myflorida/government/policies/ethicscode.html

NIGP Code of Ethicshttp://www.nigp.org/genlinfo/2001CodeofEthics.pdf

NIGP October 2003 Pulse Poll Have ethics been compromised during professional career?– 67% say yes – 27% say yes within the past year

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Ethics IssuesNIGP Code Principles

• Is governed by the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the organization and the public being served.

• Believes that personal aggrandizement or personal profit obtained through misuse of public or personal relationships is dishonest and not tolerable.

• Identifies and eliminates participation of any individual in operational situations where a conflict of interest may be involved.

• Believes that members of the Institute and its staff should at no time, or under any circumstances, accept directly or indirectly, gifts, gratuities, or other things of value from suppliers, which might influence or appear to influence purchasing decisions.

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Ethics IssuesNIGP Guidelines

RESPONSIBILITY TO YOUR EMPLOYER

• Follow the lawful instructions or laws of the employer.

• Avoid activities, which would compromise or give the perception of compromising the best interest of the employer.

• Reduce the potential for any charges of preferential treatment by actively promoting the concept of competition.

RELATIONSHIP WITH THE EMPLOYER

• Remain free of any and all interests and activities, which are or could be detrimental or in conflict with the best interests of the employer.

RELATIONSHIPS WITH OTHER AGENCIES AND ORGANIZATIONS

• All involvement and transactions shall be handled in a professional manner with the interest of the buyer’s employer taking precedent.

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CONFLICT OF INTEREST

• Avoid any private or professional activity that would create a conflict between your personal interest and the interests of your employer

PERCEPTION

• Avoid the appearance of unethical or compromising practices in relationships, actions and communications.

• Avoid holding business meetings with suppliers outside the office. When such meetings do occur, the meeting location should be carefully chosen so as not to be perceived as inappropriate by other persons in the business community or your peers.

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GRATUITIES

• Never solicit or accept money, loans, credits or prejudicial discounts, gifts, entertainment, favors or services from your present or potential suppliers which might influence or appear to influence purchasing decisions.

• Never solicit gratuities in any form for yourself or your employer.

• Items of nominal value offered by suppliers for public relations purposes are acceptable when the value of such items has been established by your employer and would not be perceived by the offeror, receiver or others as posing an ethical breach.

• Gifts offered exceeding nominal value should be returned with an explanation or if perishable either returned or donated to a charity in the name of the supplier.

• In the case of any gift, care should be taken to evaluate the intent and perception of acceptance to ensure that it is legal, that it will not influence your buying decisions, and that it will not be perceived by your peers and others as unethical.

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BUSINESS MEALS

• There are times when during the course of business it may be appropriate to conduct business during meals. In such instances, the meal should be for a specific business purpose.

• Avoid frequent meals with the same supplier.

• The purchasing professional should be able to pay for meals as frequently as the supplier. Budgeted funds should be available for such purposes.

RELATIONSHIP WITH THE SUPPLIER

• Maintain and practice, to the highest degree possible, business ethics, professional courtesy, and competence in all transactions.

• Association with suppliers at lunches, dinners or business organization meetings is an acceptable professional practice enabling the buyer to establish better business relations provided that the buyer keeps free of obligation. Accordingly, it is strongly recommended that if a seller pays for an activity that the buyer reciprocate.

• Preclude from showing favoritism or be influenced by suppliers through the acceptance of gifts, gratuities, loans or favors. Gifts of a nominal value that display the name of a firm which is intended for advertisement may or may not be accepted in accordance with the recipient’s own conscience or jurisdictional rules.

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Article I, Section 24 Florida Constitution

Chapter 112, Part III, Florida Statutes

Governor Bush’s Executive Order 99-20

Ethics in Florida GovernmentSources

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• Prohibits Certain Actions or Conduct

• Requires Certain Disclosures be made to the Public

• Independent Commission on Ethics to Oversee Compliance

Ethics in Florida Government Code of Ethics

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• Applies to EOG, Agency Heads and Deputy Secretaries.

• More strict than Chapter 112

• DMS has adopted EO 99-20 as the agency’s ethics policy

• Do you and your employees know your agency’s policy?

Ethics in Florida Government Executive Order 99-20

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“Gift” – Anything accepted by a person or on that person’s behalf, whether directly or indirectly, for that person’s benefit and for which no payment is made.

Executive Order 99-20 Gifts

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• Real Property• Tangible Personal

Property • Intangible Personal

Property• Preferential Treatment• Debt forgiveness• Transportation

• Lodging• Food and Drinks• Dues and Fees• Tickets• Plants and Flowers• Personal Services • Any Thing or Service

having a Value

Executive Order 99-20 What is a Gift?

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• Salary and Benefits

• Campaign Contributions

• Honoraria and Expenses

• Honorary Memberships

• Public Service Awards

• Use of Public Property

• Transportation for Official Business

• Gifts from Professional Development or Governmental Organizations

Executive Order 99-20 A Gift Is Not:

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Can I solicit

a gift?

NO!

Executive Order 99-20 Solicitation of Gifts

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When can I

accept a gift?

Executive Order 99-20 Acceptance of Gifts

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• No gift valued at over $25.00 may be accepted!

• Four Limited Exceptions:- Gifts from Relatives- Most Gifts from Personal Friends- On-site Consumption of Food and Drink at

Functions in which Attendance is Part of Official Duties

- Gifts Accepted by the Department as having a Public Purpose

Executive Order 99-20 Gift Acceptance

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COE Forms 9 and 10 (www.ethics.state.fl.us)

Employees must report and disclose any gift that has a value over $25.00, unless the gift is received from a relative.

Disclosure includes providing a description of the gift, its approximate value, the donor’s name and address, the date of receipt, and a copy of any receipt for the gift provided by the donor

Executive Order 99-20 Reporting Requirements

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• You receive a Ming Dynasty antique vase from your Aunt Martha as a congratulatory gift on your new position.

• Can you accept?

Executive Order 99-20 Gifts from Relatives

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• It’s OK to accept

• Value unimportant

• No reporting required

Executive Order 99-20 Gift from Relatives

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You may accept gifts from a personal friend, regardless of value, provided he or she is not:

A. A lobbyist;

B. The partner, firm, employer or principal of a lobbyist;

C. A person with a pecuniary interest in a matter pending before the Department;

D. A person who provides goods or services to the Department under contract or agreement; or

E. A person seeking business with the Department

Executive Order 99-20 Gifts from Friends

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• Expensive gift from a “new friend” in Tallahassee.

• Can you accept?


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• Lobbyist, favors, or contracts – NO

• Non-lobbyist, seeking no favors or contracts – YES

• But: Must report if over $25.00


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Can you attend receptions by members of your industry groups?

Executive Order 99-20 Receptions

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• No restrictions on acceptance, even if valued at over $25.00, provided your attendance is a reasonable exercise of your official duties.

• Must report if over $25.00

Executive Order 99-20 Receptions

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Can you go to lunch with a vendor at the Governor’s Club once a month to “catch up” on things?

Executive Order 99-20 Lunch Buddies

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• Even if each meal is less than $25.00, frequency can give rise to the appearance that lunch is being paid for in circumvention of the rules.

• Pay for yourself!

Executive Order 99-20 Lunches

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The Department is awarded a Davis Productivity Award.

Can the Secretary accept?

Executive Order 99-20 Agency Awards

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An Agency Head may accept awards and other forms of recognition if a public purpose for doing so is shown.

Executive Order 99-20 Agency Awards

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What about my wife? Can she accept an expensive gift from a lobbyist or vendor?

Executive Order 99-20 Spouses

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No!

Any gift that cannot be received directly cannot be received indirectly

Executive Order 99-20 Spouses

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Executive Order 99-20 Before Accepting Any Gift

• NO GIFT, regardless of value, may be accepted until you answer each of these questions:

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1. Is this gift being given or accepted with the intent that my official action or judgment would be influenced by the gift?

• Yes – Even if valued at under $25.00 the gift may NOT be accepted.

• No – Go to next question.


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2. Do I know, or with the exercise of reasonable care, should I know that the gift is being given to influence my official actions or judgment?

• Yes – Even if valued at under $25.00 the gift may NOT be accepted.

• No – Go to next question.


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3. Is the value of this gift LESS than $25.00

• If valued under $25.00, have I accepted several gifts, even if nominal in value, from the same source, such that on the whole it looks like I am trying to get around the Code of Ethics?

Yes – Cannot accept.

No – Okay to accept.


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4. Is the value of this gift MORE than $25.00

• If valued over $25.00, is the gift from a relative, is it the on-site consumption of food and drink, or is it being accepted by the agency such that the value limit does not apply?

Yes – Okay to accept.

No – Cannot accept.


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Can you serve on the board of your hometown bank?

Executive Order 99-20 Outside Employment

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• No secretary or deputy secretary may have any on-going dual employment or dual compensation

• Other SMS/SES, perhaps, but must clear with Agency Head


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• Non-profits generally OK

• Anything that poses, or appears to pose, a conflict between private interests and public duties will not be approved!

• Always check first


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A partnership in which you hold a passive interest holds the rights to land that one of the Governor’s agencies needs to buy

Executive Order 99-20 Conflicts of Interest

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• Cannot participate in any official capacity in any matter that inures to your special gain or loss

• Ought to disclose even if not participating

• How will it look?


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You leave the Agency for the private sector. A vendor you worked closely with wants you to represent their interests before the Agency. Can you represent them?


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• NO! SMS/SES employees may not personally represent another for compensation before the Agency for a period of two years after leaving.


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• Ask General Counsel’s office at EOG

• Ask Agency Ethics Officer

• Always obtain prior approval

Executive Order 99-20 Exceptions

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• No Criminal Penalties

• Dismissal, suspension, reprimand, demotion, reduction in or forfeiture of salary, restitution

• $10,000 fine

Executive Order 99-20 Penalties

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• Ask yourself “how will it look?”

• Avoid the appearance of impropriety

• Save yourself the aggravation

Executive Order 99-20 When in Doubt

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• RESPECT Update







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Center for Efficient GovernmentUpdate

• New approval sign-off sheet required with submission of a business case or solicitation document for Oversight Board review

• When to follow gate process

• Questions?

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• RESPECT Update







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Purchasing Directors’ MeetingNext Meeting

Time: 3:00 pm to 5:00 pm

Date: Thursday, October 14, 2004

Location:FFWC Bryant Building620 South Meridian Street

In lieu of September meeting, please attend the Florida Government Conference, Sep 21-23 (www.floridagc.com)

Documents

Purchasing Directors’ Meeting August 19, 2004. 2 Purchasing Directors’ Meeting August 19, 2004 Agenda Welcome / Meeting Overview RESPECT Update Hurricane