State of Ohio Terry Tyler Steve Hunter Joe Secrest Terry Tyler - - PowerPoint PPT Presentation

State of Ohio

Terry Tyler Steve Hunter Joe Secrest

• Engineering background –

process oriented – 25 + years procurement / strategic sourcing – DuPont – Ashland – Private Consulting – Nationwide History of delivering significant results:

• Co-led reductions of $2 Billion spend at DuPont increasing ROE from

4% to 27%

• Implemented 3 e-Procurement systems

Most recent PeopleSoft Procure to Pay to 35,000 associates

• Led savings efforts that delivered $126 Million to Nationwide last year.

Terry Tyler

Chief Procurement Officer, State of Ohio

How We Began

• Started Early

– No idea on how Fed would distribute

• *Federal, State, Local Government and

Community Organizations – Knew interest would be tremendous

• *Over 25,000 projects submitted

– Pile of money vs. 120 funding streams/180 programs – Dispersed through formula, competitive and discretionary grants

How We Began

– Needed enterprise system to collect information – Assigned owners to every section of ARRA

• *What were guidelines, deadlines and requirements

– Recognized reporting/transparency/accountability would be extreme

*Audited by GAO (1 of 16 states) *Ohio IG *Auditor of State *Federal Accountability Board

– Procurement guidance to agencies due to decentralization

Stephen A. Hunter

State Purchasing Administrator, State of Ohio

Stephen A. Hunter (Steve) - CPPO [Certified Public Purchasing Officer]. Steve began working for the Department of Administrative Services, General Services Division, Office of State Purchasing in 1979, as a Quality Control Specialist. He was promoted to State Purchasing Administrator in 1985. He holds an Associates Degree in Wholesale Mid-Management. He worked in private industry as a sales representative for a paper wholesale company and in printing sales prior to joining the state of

• Ohio. Steve is an active member in NASPO, NIGP and the Central Ohio Organization of Public

Purchasers (CO-OPP).

Office of Procurement Services Procurement of Supplies & Services Using ARRA Funds

State Resources Ohio Penal; Industries Community Rehabilitation Program Central Pharmacy/Food Rehabilitation Services Commission DAS Term Contracts Negotiated Term Contracts Request To Purchase Release And Permit Purchase < $50,000 Issue Purchase Order Purchase > $50,000 Competitive Selection Request for Proposals Contract ITB by Reverse Auction Contract Invitation to Bid Contract Master Maintenance Agreement State Term Schedules Multiple Award Contracts Controlling Board Yes No Yes No Yes No Yes No Yes No

Process for Supplies & Services

Agency Need State Resources 1 Day Purchase Order Request To Purchase 1-3 Days Determine Procurement Method Invitation to Bid (30 Days) Reverse Auction (45 Days) Request for Proposal (120 Days) 1-3 Days Prepare ITB 5-7 Days Advertise ITB 1-3 Days Evaluate & Award Contract 1-7 Days Prepare RAQS 5-7 Days Advertise 1-10 Days Evaluate & Award Contract 5-10 Days Prepare RFP Min 21 Days Advertise 10-15 Days Evaluate 1-14 Days Best Final Offer, Award Contract 17 Days 60 Days 24 Days Release & Permit State Control Board No Yes State Term Schedule Expedited Process for ARRA Funded Projects

Domestic & In-State Preferences

Supplies & Services Competitive Selection

♦ North America – Canada / Mexico ♦ United States - 50 States & Territories 50% Rule ♦ Produced in Ohio ♦ 10 / 75% of employees based in Ohio ♦ Border States (KY, MI, IN, PA, NY)

Minority Set Aside Certified MBEs 15% Goal Encouraging Diversity, Growth & Equity Social and Economic Disadvantage 5% Goal

Small & Disadvantaged Business Programs

Community Rehabilitation Program People with Work-Limiting Disabilities Mandatory 1st Consideration

National Association of State Procurement Officials

http://www.naspo.org/content.cfm/id/stimulus

Joe Secrest

Legislative Director, Office of Management and Budget, State of Ohio

Joe Secrest is currently serving as the President of the Ohio Controlling Board and has management responsibilities for implementation of the ARRA in Ohio’s Office of Budget and

• Management. He previously served two terms as a county commissioner and five terms in the

Ohio House of Representatives. He was also employed for ten years in the private sector with Ashland Inc. Joe received his Masters degree from West Virginia University and completed undergraduate work at Muskingum College in New Concord, Ohio.

American Recovery and Reinvestment Act

Ohio Office of Budget and Management

www.Recovery.Ohio.gov Ohio’s virtual headquarters for ARRA

• Clearinghouse for ARRA and Ohio information
• Entry portal for expressing interest in funding
• Central station for sorting all submissions to state

agencies

OBM’s Role for Implementation

• 1512 Reporting
• Risk Management through Office of Internal Audit
• Providing support to agencies as they work to ensure

accountability, transparency, and timely reporting of ARRA funds

OBM Guidance to Date

The following guidance to state agencies can be found at www.OBM.state.oh.us

Guidance #1 – Request for Program Deadlines Guidance #2 – Formation of Stimulus Teams Guidance #3 - Preliminary Reporting Guidance Guidance #4 – Assurance Statements and Certificates Guidance #5 – Risk Management & Accountability Guidance #6 – Awards and Cash Receipts Guidance #7 – ARRA Hub Reporting Guidelines Guidance #8 – Subcontracts and Subgrantees

Subrecipient 1512 Reports OBM Process Flow

• 1. Subrecipients receive a Sec. 1512 reporting form at the time the

contract is signed or the award is granted

• 2. Subrecipients complete the form and submit to the recipient state

agency in a timely fashion (likely five days after the close of the quarter)

• 3. State agencies enter both recipient and subrecipient reporting data

into a centralized state reporting repository (likely within 7 days of the close of the quarter)

• 4. OBM aggregates the 1512 reports and submits to the Feds

Internal Control

• OBM’s Internal Audit division will utilize the
• COSO internal controls framework used by
• GAO when reviewing agency

administration

• f ARRA funds

Internal Control

Inter-agency Information and Communication and Risk Assessment

• Has agency used a risk-based approach to identify strengths/vulnerabilities?
• How are risks being mitigated?
• Does ARRA funding present new or increased risks?
• Sub-recipient risk assessment - appropriate use of ARRA funding?

ARRA Purpose

• Create and retain jobs
• Invest in the economy
• Build a foundation for long-term economic growth

ARRA will support:

• Modernizing America’s Infrastructure
• Enhancing Energy Independence
• Expanding Educational Opportunities
• Increasing Access to Medical Care
• Providing Tax Relief
• Protecting Those in Greatest Need

Stimulus Funding from ARRA

• Approximately 120 funding streams
• Funds dispersed through formula, competitive and discretionary

grants

• Funds to be distributed by federal, state and local governments and

community organizations

• ARRA provisions require rapid turnaround and implementation

www.Recovery.Ohio.gov

Ohio’s virtual headquarters for ARRA

Web Site Purpose

• Clearinghouse for ARRA and Ohio information
• Entry portal for expressing interest in funding
• Central station for sorting all submissions to state agencies

AARA Accountability Provisions

• The Act requires unprecedented provisions for transparency and

accountability in awarding and spending AARA funds

• Ohio, like every other state, must implement provisions to identify

and prevent fraud, waste and mismanagement.

• States will be required to post detailed information about ARRA

spending on the federal web site: www.recovery.gov