6/18/08 5:30pm -7:00pm
Citizen’s Committee on Procurement Procedure
Present: Dick Catalini, John Vogt, Amy Redder,
Nancy Chew, Ken Brown, Matt Peeler
Our Mission:
“To assure the town has a policy in place for procuring real property and/or services that protects the town’s best interests.”
Others present: Lillian Whitney, Nancy Haines
Minutes from 6/4/08 accepted as is.
John
Recognize and thank Nancy Haines for coming for a general discussion regarding the purchase process.
Ken
We do have questions about the specific Fire Truck procurement, but we’d like to get input on this general procurement process, and what we have come up with so far. Our point is not to put you “in the hot seat”. We are focusing on our mission (see statement above).
Nancy H.
The truck went out to bid twice, the result being only one appropriate bid.
It is her understanding that prepayment for discount is done frequently, for insurance, assessments…services.
First she saw of this (truck PO) was when the bill went through.
She was appointed by selectmen 2001.
Had previously been doing accounting software systems in the private sector.
Takes trainings through the state assn. (MMAAA) voluntarily.
Has two certificates, one a legal and one an accounting focus.
Town Accountant roles vary widely from town to town.
Ashby had 11 accts. in 10 years before she started.
John
Were past prepayments for big dollar, tangible assets?
Nancy H.
She believes so. She assumed bond would cover it. Selectmen reassured her that this was so. Was reassured this had been done in the past.
Ken
Despite 30B, prepayment seems quite common, not just here in town. However, at the state level, this doesn’t seem to be the case, even for services.
Nancy H
How is she to know if purchases are “prepaid”, if she doesn’t actually, physically see the item? She is in her office upstairs in town hall.
There are custom things that won’t be done without prepayment. Lettering on vehicles, for example.
Add to Precontract
No PrePay…need clarification on this law 30B
John
Do we want to focus our mission statement on tangible physical purchases, and steer away from services?
Ken
Except in this day and age, insurance companies require prepayment, and they are going under every day.
Add toPrecontract 9B.and a Delivery Acceptance Confirmation (we’ve actually received exactly what we ordered)
Matt
When were you aware of the performance bond?
Nancy H
She received the bill alone. She requested the bond and the contract to view before she would pay the bill. They were brought separately, later.
With the insurance bills, she often doesn’t receive the actual policies until after she has paid the bill.
John
What changes to the process would you like to see?
Nancy H.
We’ve seldom had any issues with procurements. The files have generally been audited without issue in the past. She’d like to see more structure. We have a 5million dollar company run by 3 volunteers and a handful of elected people.
Melanson & Heath audit the procurement records, treasurer, collector, and a single department. They audit finances and the process.
The records are kept in Town Admin.’s office.
John
From last meeting, the suggestion to build a Procurement Binder
Nancy H.
It’s more like a drawer for the fire truck purchase…
Ken
Something very organized, with specific documents regarding 30B,
Nancy H.
Include specifics as to where documents are stored…people shouldn’t have to hunt things down.
(Brief summary/review of the process we’ve brainstormed so far…)
Add toBrainstorming 5B. Create a purchase binder/folder to contain applicable documentation 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.
Nancy H.
She is not actually trained in procurement specifically as part of her association training. That would be through the state.
John
Would it make sense to have 2 people trained in procurement? For redundancy, back up…
Add toBrainstorming 4. Admin of Procurement
Chief Procurement Officer
Add a back up (trained by state) to this position
Nancy C.
This committee is mostly full of people who work for the selectmen, except for the procurement selectman. We ought to define WHO chooses the people for these committees.
Nancy H.
Perhaps a Finance Committee member?
Ken
Who chooses which Fin. Com. member?
Add to Precontract 1. CPO will recommend a committee member list for approval by BOS
Lillian
Clarify above addition…but who will choose CPO? Perhaps the Town Moderator?
Ken
CPO will be one constant person who is specifically trained and certified by the state in procurement process and law. The dept. heads will continue to be involved in the purchases bringing their own expertise. In most towns this CPO is the Town Administrator. We think this is a logical choice.
Nancy H.
She is interested in the state procurement (30B) training.
Ken
Would you add anything to the Post-Contract process?
CHANGE Post-Contract 1. Pre-contract/Contract Review prior to authorization for payment-Accountant
(Another construction analogy to this…”Come first for the building permit, then come a second time for the OCCUPANCY permit.”)
Move the above Post-Contract 1. to 9B?
Add 9C. Process continuation when proof of step 9B is delivered to accountant.
Move 9B. Delivery Acceptance Confirmationto Post-Contract
In Summary…(today’s additions in bold italics)
Brainstorm Summary
1. Recommendations of education for those who are involved in procurement (town admin., dept. heads, selectmen, as elected, and Accountant/Treasurer)
1A. Educate, Implement, Review and Audit
2. Should be a written policy (tiered, and integrated w/30B)
2A. Should be a Schedule of Authorizations (*including swearing in/code of conduct/statement of accountability)
3. At what point does Ashby consult town council to review purchase activity?
4. Centralization of procurement process, administration of procurement (the person with the bottom line of accountability)
Chief Procurement Officer
What certifications required?
How often?
Recommendation…this should be the Town Administrator
Add a back up (trained by state) to this position
5. Procurement that triggers regulations of 30B requires admin. oversight and an appropriately formed committee to manage all aspects of the procurement
5A. Procurement Committee
-Dept. Head, Town Admin./CPO, the Selectman charged with Procurement, (ALL selectmen, over a certain amount),
-and legal counsel?
-Other citizens?
5B. Create a purchase binder/folder to contain applicable documentation 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.
PRE-CONTRACT TIME
1. Committee development
1A. CPO will recommend a committee member list for approval by BOS
2. Spec Development
Multiple sources? Minimum number?
2A. Can this be done off state bid list?
3. Engaging outside resources (plural)?
4. Develop standard Bid form? So as not to have to engage legal so frequently.
-early terms and conditions which would be incorporated into final contract
+Bid criteria weighting (reputation vs. value)
5. Business Criteria (not just for the health of the contractor, but also Bond Holder)
6. Performance Bond requirement
6A. Create Bond acceptance standards
6B. Recommend town to pre-establish Bond/Vendor relationship and recertification process
7. Need for minimum number of compliant bids, or else procurement committee needs to go back and “tweak” specs
8. Do we need a custom contract?
9. Bid Acceptance criteria and process and the Procurement Committee members’ roles in that criteria
9A. Including authority to bind contractually
9B. Generate contract sign-off/approval form of sorts, 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)
and a Pre-contract/Contract Review prior to authorization for payment by Accountant
9C. Process continuation when proof of step 9B is delivered to accountant.
10. Do we allow waivers to the written procurement criteria and process?
If so, by whom or by what body of order?
What implications result?
11. No PrePay…need clarification on this law 30B
CONTRACT TIME
1. Generate General Contract Terms and Conditions
-Ashby controls terms and conditions
-Ashby controls contract
2. Contract Development/Negotiations*
Generic contract - no change (doesn’t require legal review)
- “material” change (requires legal review)
Custom contract - legal review mandatory
- Initial draft is written by “Best Qualified”
(*IS TOWN COUNSEL BEST EQUIPPED TO SUPPORT THIS? Alan Pease says yes, the firm represents many communities state-wide, with a large staff with multiple specialties.)
3. Bond (if applicable) should be received prior to execution of contract, reviewed for authenticity/enforceability.
Post-Contract
1. “Delivery Acceptance Confirmation” (we’ve actually received exactly what we ordered)
For next week…clarify what the Delivery Acceptance Confirmation will be.
Next Meeting 5:30pm, Wed. 6/25/08 (Cancelled)
Minutes amended and accepted 7/16/08