Last update: 04/16/2012
Procurement Reform
Changes in state purchasing practices take effect January 2013
State government spends more than $1 billion annually to buy a variety of goods and services, ranging from paper and pencils to computers, fuel and food. Historically, three agencies and three separate chapters of laws have governed the procurement of goods and services.
For more than a decade, internal groups have worked to bring together the disparate and sometimes contradictory statutes into a common framework that would enable potential contractors and purchasers to easily understand contracting laws.
The Legislature recently passed
Legislation - 2012 ESSHB 2452
to consolidate procurement laws under Enterprise Services. The legislation is designed to make the procurement process more transparent, competitive and efficient. The changes take effect Jan. 1, 2013.
The bill requires procurements to be based on a competitive solicitation process, with exceptions for emergency, sole source, direct buy, client services and market conditions.
The procurement reform bill had broad support from state agencies, business and labor. Among those testifying in support were the Office of Minority- and Women-Owned Business Enterprises, Health Care Authority, Washington Federation of State Employees and the Independent Business Association.
What will be different?
- The procurement process for goods and services will be outlined in a single chapter of law. A common approach will be used for goods and services.
- Agency employees who develop, manage or execute contracts will receive training and/or certification to ensure consistent practices are followed for all types of procurement.
- Agencies will have to submit sole-source contracts to Enterprise Services for review and approval, but will no longer submit personal-service contracts that are competitively solicited for review.
- Contractors and agencies will be allowed to submit bid documents and signatures electronically for ease of transaction.
- Agencies will notify bidders and identify awarded contractors in a central system.
- Agencies will post information about awarded contracts with Enterprise Services so the public can see basic information about all awarded contracts on a single site.
- Enterprise Services will be able to debar contractors for cause.
What will be the same?
- The bill keeps the same exemptions for the Legislature, higher education, public hospitals, client services and the data center as in current law.
- Enterprise Services will establish rules and guidelines for procurement of goods and services.
- Agencies can continue to make emergency purchases, direct buy purchases and negotiate contracts when appropriate.
Next Steps
Enterprise Services will invite customer agencies, vendors and other interested parties to provide input during the development of new procurement guidelines, policies and rules. Enterprise Services will issue the new policies and rules in fall 2012, so that agencies have time to adopt their own corresponding policies before the new law takes effect.
Background
The bill creating Enterprise Services (ESSB 5931) directed the new agency to “review current state procurement practices, not including public works, and provide a report to the governor with procurement reform recommendations.” In response, Enterprise Services convened an interagency procurement workgroup that developed draft recommendations.
The recommendations were developed into a survey and sent to thousands of businesses and purchasing professionals to determine what changes in procurement practices would offer the greatest benefits. The agency received more than 1,200 responses and more than 3,000 individual comments.
The interagency workgroup and Enterprise Services used the stakeholder input to refine the recommendations and develop the procurement reform legislation.
Contact
Servando Patlan, Procurement Reform manager
(360) 407-9390
servando.patlan@des.wa.gov
