Ashby Procurement Process Reccommendations

Ashby Procurement
Process
Recommendations
Prepared by:
Ashby Citizens’ Advisory Committee
on Procurement


Citizens’ Advisory Committee




From a letter to selectmen from Alan Pease, James Hargraves, Rebecca
Walsh dated March 19, 2008:
“We request the Selectmen appoint a committee of citizens to review the process and
procedures involved with the purchase of the fire truck. That the committee report back to the
Selectmen identifying weaknesses in the purchase process and recommending changes in the
purchase process to make it less subject to failure.
We request the committee be allowed to discuss the process and procedures with relevant
personnel. That the committee be allowed to consult with Town Counsel at the discretion of
the Town Administrator. That the report be distributed to the public.”
The Committee was appointed and convened for its first meeting on 4/9/08 and consists of the
following:








John Vogt, Co-chairman
Ken Brown, Co-chairman
Amy Redder, Recording Secretary
Nancy Chew
Dick Catalini
Matt Peeler
Alan Ewald


Committee Mission




“To review current procurement process, identify
deficiencies, and recommend changes to make it less subject
to failure.”
The Committee was NOT convened to determine or assign
blame for the Fire Truck procurement and has sought to avoid
doing so throughout the process.


Committee Process
Discovery

1.
•

The Committee has met with the Selectmen, the Town Administrator, the Town Accountant, the

Fire Chief and other members of the Fire Department, and other past and present town employees
and officers to review the history of the Fire Truck Procurement, as well as other procurements
and the processes surrounding procurements

Assessment

2.
•

The Committee has assessed information received during the Discovery process and defined key
findings.

Solution Generation

3.
•

•

•

The Committee has discussed and organized general recommendations to address perceived
deficiencies, gaps, errors and omissions in current process while attempting to retain positive
elements and provide enhancements.
The Committee has broken down steps to the procurement process and defined recommendations
within those steps.
As “Advisors” to the town on procurement process, we recognize that we are not experts in
numerous aspects of state law, specific types of procurements, and department specific needs and
requirements. As a result, we leave deeper definition of certain process elements to the pertinent
town officers and administrators.

Review

4.
•

The Committee has reviewed elements of our recommendations with certain process owners to
ensure the accuracy of our understandings and to test the viability of certain ideas.


Committee Process


Public meetings were held on:


4/9, 4/16, 4/30, 5/14, 5/21, 6/4, 6/18, 7/23, 8/21, 9/10, 10/1, and 10/8



All meeting minutes have been published on the Ashby town website


Key Findings and Defined Needs
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•

•
•

•
•
•
•
•
•

Lack of clear understanding of existing state and town specific procurement
process:
Lack of clarity around 30B and 41

Confusion around prepayment requirements
No formal training in an environment of changing players
No clearly defined process owner(s)
No current certified procurement expert
Lack of clarity around certification requirements and process
Lack of written, specific procurement policy
Lack of sequential steps to process procurements
Lack of clear decision making authority
Need for clarity around any engagement of Legal

Cost carrying more weight than legal protection


Key Findings and Defined Needs
Need for centralization of the process, associated documents, and audit trail
 Lack of internal Audit process
•
Need for clarity of roles:
 Procurement Selectman

 CPO
 Backup CPO
 Department Head
 Town Accountant
•
Need for clarity around specification development process
•
Lack of a standard bid form
•
Need for Supplier qualifications
 Technical, business, service
•
Need for clear Bond acceptance standards
•
Need for irrefutable acceptance criteria
Need for better control of Terms and Conditions
Erratic means of confirming we’ve received what we bought
The entire process lacks clear accountability
•

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General Recommendations
Recommendations of education for those who are involved in
procurement (town admin., dept. heads, selectmen, as elected, and
Accountant/Treasurer)

1.

•
•
•
•

Educate
Implement
Review
Procurement Process Audit

Should be a written policy (tiered by size, and integrated w/30B)

2.
•

Should be a Schedule of Authorizations (*including swearing in/code of
conduct/statement of accountability)

Need to determine when Town Counsel is engaged to review purchase
activity
Centralization of procurement process and the administration of
procurements (the person with the bottom line of accountability)

3.
4.
•

“Chief Procurement Officer” - CPO

General Recommendations
(continued)
•

Chief Procurement Office (continued)
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Determine required certifications
Determine certification frequencies
COMMITTEE RECOMMENDATIONS:
•
•

5.
•

CPO should be the Town Administrator
Town Accountant should be comparably certified to act as assistant or
backup CPO

Procurement that triggers regulations of 30B requires admin.
oversight and an appropriately formed committee to manage
all aspects of the procurement
Procurement Committee


Can potentially consist of Dept. Head, Town Admin./CPO, the Selectman
charged with Procurement, (ALL selectmen, over a certain amount), legal
counsel, and other citizens


General Recommendations
(continued)
5. (Continued)
•

•

Create a purchase binder/folder to contain applicable documentation
(“Core documents”) necessary to PROVE compliance to the language
of 30B in the event the town is audited, AND to prove compliance with
the town’s own procurement process.
Establish milestone review of Binder Core Documents before Precontract, Contract and Post-contract phases


Procurement Process Recommendations
Using Contract Phases
Procurement is needed

Pre-Contract Phase

Contract Phase

Post-Contract Phase

Procurement completed

Procurement Process Recommendations
Using Contract Phases
PRE-CONTRACT PHASE
Committee development

1.
•

CPO will recommend a committee member list for approval
by BOS

Start
Pre-Contract
Phase

Specification Development

2.
•

•
•

Determine if there are multiple sources that can meet
specifications
Determine minimum number of bids required
Determine if this procurement can be done off a statewide
bid list

Determine if it is appropriate to engage outside resources
for this procurement
Ashby should contemplate development of an approved
Standard Bid format to avoid the need to engage Legal
resources too frequently. Selected Bid Format should:

3.
4.

•

•

Define early terms and conditions which would be
incorporated into final contract
Define bid criteria weighting (reputation vs. value)

Create
Committee

Develop
Specification


PRE-CONTRACT PHASE
(Continued)
5.
6.

7.

8.
9.

Determine Business Criteria (not just for the health
of the contractor, but also Bond Holder)
Performance Bond requirements
•
Create Bond acceptance standards
•
Recommend that Ashby pre-establishes
Bond/Vendor relationships and recertification
process
Need for a minimum number of compliant bids, or
Procurement Committee needs to go back and
“tweak” specs
Determine if a custom contract is required
Determine Bid Acceptance Criteria and Process, and
the Procurement Committee members’ roles in that
process

Determine
Business
Criteria

Determine
Bond
Requirements

Determine
Acceptance
Criteria


PRE-CONTRACT PHASE
(Continued)
9.
•
•

(Continued)
Determine who has authority to bind contractually
Generate contract sign-off/approval sheet (a list of
signatures, similar to a building permit process)
including all applicable procurement committee
members (CPO, dept. head, procurement selectman,
all selectmen, town accountant)
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•

10.

•

•

Ensure Pre-contract/Contract Review prior to
authorization for payment by Accountant

Generate
Sign-off
Sheet

Determine
If Waivers
Allowed

Process continuation when above proof of applicable
sign offs/ approvals are delivered to accountant

Determine if a specific procurement qualifies for any
form of waivers to the written procurement criteria and
process
If so, justify why, by whom, and by what body of
order
If so, evaluate what the resultant implications are

Create
Procurement
Binder/Folder


PRE-CONTRACT PHASE
(Continued)
11.

No Prepayment…Need clear understanding
of Massachusetts General Laws 30B and

41, and reconciliation between law and
practice

Hold
Pre-Contract
Milestone
Review

Move
To Contract
Phase


CONTRACT PHASE
1.

Generate General Contract Terms and
Conditions
•
•

2.

Ashby controls terms and conditions
Ashby controls contract

Receive and
Review Bids
Return to
Develop

Specification

Contract Development/Negotiations*
•

•
•

Generic contract – no/minimal change (doesn’t require
legal review)
“Material” change (requires legal review)
Custom contract - legal involvement mandatory


Initial draft is written by “Best Qualified”

(*Ensure current Town Counsel is best equipped to
support this process)

Start
Contract
Phase

No

Acceptable
Bid?
Yes
Generate
Contract Terms

And Conditions

Negotiate
Contract

Legal Review
of Contract


CONTRACT PHASE, cont.
3. Bond (if applicable) should be received prior
to execution of contract, reviewed for
authenticity/ enforceability
4. Hold milestone review prior to executing
contract

Receive and
Review Bond,
if required

Hold
Contract Phase
Milestone Review

Execute
Contract

Move To
Post-Contract
Phase

POST-CONTRACT PHASE
“Delivery Acceptance Confirmation” (we’ve
actually received exactly what we ordered)

1.

•

2.

Appropriate form of Confirmation to be determined by
Committee

Finalize Procurement Binder and retain in an
appropriate centralized location

Start
Post-Contract
Phase

Confirm
Delivery

Hold
Post-Contract
Milestone Review

Issue

Payment

Finalize
Procurement
Binder
Archive
Procurement
Binder


Next Steps


Take Action


Create Team to review and implement recommendations as submitted


Suggested Team members
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Procurement Selectman
Town Administrator
Town Accountant
Others as determined by these three