Last update: 04/06/2012

Electronic Procurement Software as a Service

Current challenge:

The state lacks any method for capturing point-of-sale spending data to determine how much the state spends on any category of goods or services. This same lack of information also hinders the state from the ability to measure socio-economic goals, initiatives and legislation.

Solution:

Electronic Procurement Systems capture data with enough detail to categorize state spending on goods and services that permits enhanced oversight and management.

Opportunity:

The Western States Contract Alliance (WSCA) is sponsoring a procurement effort for the state of Colorado to use software as a electronic procurement solution. As a member of WSCA, Washington, Oregon and Nevada are assisting with the request for information and proposal process to have the option to participate in the resulting contract. Our participation allows us to include Washington state standards for security, data and state financial systems interfaces, work flow and business requirements.

Impacts:

A software as a service contract would minimize the up-front investment costs for Washington to access modern tools to advance procurement reform. A modern procurement system could help leverage procurement reform changes while also delivering an efficiency benefit. Currently, most Washington procurement operations remain paper based. An electronic procurement solution will significantly change the way the state authorizes procurements and pays for its purchases. It will also enhance the way vendors present their goods and services for selection. The change would also improve state program operations for selecting goods and services, especially in the field. As a Procurement Reform Project Initiative, this RFP process has engaged our major customers from the departments of Transportation, Social and Health Services, Corrections and Labor and Industries. The actual decision to participate in a software as a service electronic procurement contract will be driven by the business model flexibility offered to best accommodate the state’s current economic position with respect to the feasibility of a state of Washington implementation.

Business Performance Outcome and Measures:

The business performance outcome and measures will be more fully developed. However minimum expectations are:

• Identify the state purchasing agreement that could leverage the greatest benefit to the state. If improvements are made regarding contract usage data quality, the state can enhance management of spending in a target area of great benefit. This could include such areas as transparency, environmental procurement goals and diversity of business opportunities. This component will include an assessment of electronic catalog enablement for select contract vendors.
  • Evaluate the degree to which electronic procurement solutions can support legacy financial systems to meet minimum business requirements.
  • Evaluate the implementation cost to determine if it can be initiated, remain sustainable and align to state agency program operating budgets.