Senate Committee on -- Select -- Government Accountability (03/29/2006)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON -- SELECT -- GOVERNMENT ACCOUNTABILITY

Date:	03/29/2006	ATTENDANCE

Time:	12:03 PM to 01:04 PM	Owen	X
		Teck	X
Place:	SCR 352	Grossman	X
		Groff	X
This Meeting was called to order by
	Senator Groff

This Report was prepared by
	Christie Lee
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Presentation by the Department of Personnel Presentation by the State Auditor		- -

12:03 PM

Senator Groff made opening remarks and stated that Senator Takis would likely be Senator Hanna's replacement on the committee. He indicated that the committee would likely meet two more times this session.

12:04 PM -- Presentation by the Department of Personnel and Administration

Jeff Wells, Director of the Department of Personnel and Administration (DPA), introduced himself and distributed a handout detailing the state procurement and contracting process (Attachment A). Mr. Wells discussed the handout and explained the model procurement code. He stated that there are projects that are exempt from the code including CDOT bridge and highway construction, some grants, and contracts established by elected officials. Higher education may also opt out. Mr. Wells stated that price is not the only component in choosing one contract over another. He indicated this is especially the case in personal services contracts. In many cases, DPA will try to establish the best value by looking at both price and quality of contractors.

12:09 PM

Mr. Wells explained the functions of the State Controller's Office and the Purchasing Office. Mr. Wells talked about price agreements that are generally used for inexpensive commodities used by multiple agencies. He was asked to explain the department's current program that purchases and tests bullet proof vests for law enforcement.

12:19 PM

Mr. Wells discussed the department's on-line solicitation distribution system. Senator Owen asked how the department manages damaged property claims for things like damage rental cars. Mr. Wells explained that Colorado is self-insured for those types of claims, but that the state is covered by an insurance company for other types of property damage. Mr. Wells talked about outsourcing, when commercial services are contracted to a private company (such as private prisons), and privatization of services, when a function of government is moved to the free market (such as garbage collection).

12:26 PM

Mr. Wells was asked to discuss the State Auditor's recommendations and Senator Groff's Senate Bill 06-064. Senate bill 06-064 concerns the monitoring of vendor performance on state contracts, requires the submission of information on the use of personal services and sole-source contracts by state agencies, requires the existing state database of prospective vendors to include information concerning vendor performance, requires the disclosure of state contract work to be performed outside the state, establishes procedures for monitoring vendor performance, and authorizes the state to pursue specified remedies for vendor nonperformance. Mr. Wells listed the state auditor's recommendations. He stated that the department supports Senate Bill 06-064. The committee discussed the communication between the state Chief Information Officer (CIO) and department CIOs.

12:43 PM -- Presentation by the State Auditor

Joanne Hill, State Auditor, and Cindi Stetson, Deputy State Auditor, came to the table to discuss the findings in various audits pertaining to procurement. Ms. Stetson listed some of the recommendations the Auditor's Office has made relating to the state procurement process.

12:56 PM

Ms. Stetson discussed some of the proposed improvements for state procurement, including:

a need for strong performance measures and enforcement provisions in contracts and a very thorough review;
a need for clear accountability for the project (which department and/or which individual is responsible for monitoring the project);
a need for top management involvement; and
when appropriate, incorporating user training into contracts.

12:58 PM

Ms. Hill stated that the State Auditor's Office is not allowed to take a position on legislation, but that her office believes something needs to be done with regard to the state procurement process. She stated that improvements to the state procurement process could save the state a lot of money.

01:00 PM

Mr. Wells responded to the State Auditor's testimony.

01:01 PM

Senator Groff stated that the committee would not meet the week of April 3 because the Senate would be working on the budget bill. The committee's next meeting will be April 12, 2006. The committee adjourned.