3/31/03

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" rowspan="2" width=210 BGCOLOR="#99CC99" TEXT="#080000" bgproperties="fixed" background="0968dfc3.jpg"> <div> <A HREF="id115.htm" TARGET="_top" TITLE="Procurement Commission Meeting Notes"><U><B>Procurement Commission Meeting Notes</B></U></A></div> </td> <td valign="top" colspan=2 height=130 BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="0978dfe1esnpes.jpg"> <div> <FONT SIZE="5" COLOR="#336666" FACE="Arial" ><B>Welcome to the Web Site of Clare Whitbeck</B></FONT><B>     </B><B>|</B><B>     </B><A HREF="index.htm" TARGET="_top" TITLE="Welcome to the Web Site of Clare Whitbec"><U><B>home</B></U></A></div> <div> <A HREF="id88.htm" TARGET="_top" TITLE="BOCC 12/3/02"><U>BOCC 12/3/02</U></A>   |   <A HREF="id92.htm" TARGET="_top" TITLE="Legislative Agenda 12/10/02"><U>Legislative Agenda 12/10/02</U></A>   |   <A HREF="id91.htm" TARGET="_top" TITLE="BOCC 12/10/02"><U>BOCC 12/10/02</U></A>   |   <A HREF="id95.htm" TARGET="_top" TITLE="BOCC12/17/02"><U>BOCC12/17/02</U></A>   |   <A HREF="id96.htm" TARGET="_top" TITLE="BOCC 1/7/03"><U>BOCC 1/7/03</U></A>   |   <A HREF="id98.htm" TARGET="_top" TITLE="BOCC 1/14/03"><U>BOCC  1/14/03</U></A>   |   <A HREF="id99.htm" TARGET="_top" TITLE="BOCC 1/21/03"><U>BOCC 1/21/03</U></A>   |   <A HREF="id101.htm" TARGET="_top" TITLE="BOCC Budget 1/27/03"><U>BOCC Budget 1/27/03</U></A>   |   <A HREF="id102.htm" TARGET="_top" TITLE="BOCC 1/28/03"><U>BOCC 1/28/03</U></A>   |   <A HREF="id103.htm" TARGET="_top" TITLE="BOCC Budget 2/3/03"><U>BOCC Budget 2/3/03</U></A>   |   <A HREF="id104.htm" TARGET="_top" TITLE="BOCC 2/4/03"><U>BOCC 2/4/03</U></A>   |   <A HREF="id105.htm" TARGET="_top" TITLE="BOCC 2/11/03"><U>BOCC 2/11/03</U></A>   |   <A HREF="id106.htm" TARGET="_top" TITLE="BOCC 2/18/03"><U>BOCC 2/18/03</U></A>   |   <A HREF="id107.htm" TARGET="_top" TITLE="BOCC 2/25/03"><U>BOCC 2/25/03</U></A>   |   <A HREF="id108.htm" TARGET="_top" TITLE="BOCC 3/4/03"><U>BOCC 3/4/03</U></A>   |   <A HREF="id110.htm" TARGET="_top" TITLE="BOCC Budget 3/10/03"><U>BOCC Budget 3/10/03</U></A>   |   <A HREF="id111.htm" TARGET="_top" TITLE="BOCC 3/11/03"><U>BOCC 3/11/03</U></A>   |   <A HREF="id112.htm" TARGET="_top" TITLE="BOCC Budget 3/17/03"><U>BOCC Budget 3/17/03</U></A>   |   <A HREF="id113.htm" TARGET="_top" TITLE="BOCC 3/18/03"><U>BOCC 3/18/03</U></A>   |   <B>3/31/03</B>   |   <A HREF="id117.htm" TARGET="_top" TITLE="BOCC 4/1/03"><U>BOCC 4/1/03</U></A>   |   <A HREF="id120.htm" TARGET="_top" TITLE="BOCC 4/15/03"><U>BOCC 4/15/03</U></A>   |   <A HREF="id119.htm" TARGET="_top" TITLE="BOCC 4/8/03"><U>BOCC 4/8/03</U></A>   |   <A HREF="id122.htm" TARGET="_top" TITLE="BOCC 5/6/03"><U>BOCC 5/6/03</U></A>   |   <A HREF="id121.htm" TARGET="_top" TITLE="BOCC 4/29/03"><U>BOCC 4/29/03</U></A>   |   <A HREF="id123.htm" TARGET="_top" TITLE="BOCC Budget 5/12/03"><U>BOCC Budget 5/12/03</U></A>   |   <A HREF="id125.htm" TARGET="_top" TITLE="BOCC 5/13/03"><U>BOCC 5/13/03</U></A>   |   <A HREF="id124.htm" TARGET="_top" TITLE="BOCC 5/20/03"><U>BOCC 5/20/03</U></A>   |   <A HREF="id126.htm" TARGET="_top" TITLE="BOCC Budget 5/26/03"><U>BOCC Budget 5/26/03</U></A>   |   <A HREF="id127.htm" TARGET="_top" TITLE="BOCC 6/3/02"><U>BOCC 6/3/02</U></A>   |   <A HREF="id128.htm" TARGET="_top" TITLE="BOCC 6/10/03"><U>BOCC 6/10/03</U></A>   |   <A HREF="id129.htm" TARGET="_top" TITLE="BOCC 6/24/02"><U>BOCC 6/24/02</U></A></div> <div> </div> </td> </tr><tr> <td valign="top" height=350 colspan=2 BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="0978dfc3.jpg"> <div> <I>3/31/03</I></div> <div> The meeting began at 2:05.  At the table were Elaine Kramer (Director of Finance), Bill Scarafia (Chamber of Commerce), Pappy Wade (Former Director of Finance), Charles Newkirk (interested citizen) , Sean Powell, Carol Gallagher, Lois Cooksey (was procuring contracting officer),  Bob Fenwick (Minority Business Alliance), and Marv Franzen (President of the Chamber of Commerce).  </div> <div> The agenda was adopted.  People gave their reasons for being on the Committee. Kramer noted the resolution establishing the Procurement Commission said they would do a number of chores, including a revision to the procurement manual.  She said that in April there are two work sessions getting information from vendors and then procurement people to get two points of view.  In May and June they will develop a list of issues.  July - September they will redraft the manual to provide balance and make the document for accessible.  There will be more opportunities for input in October and the document will be presented in November for a vote in December.  She said the document should be refreshed and reorganized.  Each member was given a Procurement Policy Manual.  She said the meetings would all be open.  Today’s meeting is being presented live on cable tv.  She said they needed to set the dates for April through July.  Scarafia said he would like to have insight on the Government side of the problem.  He wants to know what the obstacles are that will keep people from participating.  He doesn’t think they can accomplish the goals unless everyone feels they have been heard and understood.  If we can’t do what people want we need to explain why.  Mr. Fenwick said he wants to be sure that bidders at all levels are better informed about what they can do.  He went on to say he wants to be sire the entire community can participate.  Newkirk said he thinks we need to make statement.  What role does government play in acting as a catalyst for economic development?  How do we do that, how can we utilize kiosks.  We should use this program to nurture small businesses.  He would like to see most of the money in procurement stay in the County.  We should set guidelines.   Is it worth saving $500 on a $50,000 contract if the money goes out of the County.   Cooksey asked if we have small business set asides, St. Mary’s set asides, how much extra can we pay to award a contract to a County business?  Kramer talked about an effective and efficient process.  The low bidder may not always be the best choice.  The opportunity to create a policy manual and an accompanying handbook should help vendors understand.  Whatever we do must be susceptible to being integrated in the process. Gallagher said she have one senior buyer.  She cannot do contract administration.  She hopes to get involved at the beginning of the problem, not at the end.  She wants to be fair, but needs consideration for the available staff.  Pappy Wade said the manual ought to be appropriately indexed so people can get to the information.  If he got a contract, he would be baffled by the pages.  He asked if the Federal rules are available, and Cooksey said they are on the internet.  Kramer said they might want to bring Bob Kelly to the table to discuss what could be done.  There is some information on the web now.  Kramer said we should ask how we can use technology.  Wade said he would hope that could happen before the next meeting.  Kramer replied we could put the manual on the web.  Wade replied, properly indexed.  Kramer said some things may sound like a good organizational approach, but the user may not find it so.  Fenwick said he would like to see the dollars go around the County before they leave.  We could use technology to maximize the return on what we spend.  Kramer said we are on the verge of being able to take things to the web.  Scarafia said he didn’t know how much time they spend with people who would like to vendors for St. Mary’s County.  </div> <div> Gallagher said they have a handout.  If you fill that out you will be on the vendor’s list.  She said they were typing purchase orders until 5 years ago.</div> <div> Requirements may go through IT or other technical organizations.  We used to do it by hand.  Now there is integrated software, HTE.  It has all kinds of modules.  It takes time and effort to get the software up and going.  She doesn’t think they are as bad as they appear.  She knows we are more technologically advance than Charles County.  She provided a copy of the Charles and Calvert County Procurement Regulations.  Ours, said Kramer, is more technologically advanced.  Newkirk said he must say that his being here is a clear statement that most of the community doesn’t have a lot of confidence in the system.  Government is for the people and they have to trust government.  Kramer said she hopes they look at the manual perspectively.  If the policy isn’t what is good for the community, we need to change the policy.  Scarafia said a revised policy could make it easier for you to do your job and give everyone a clear understanding of what your role is.  Kramer said she  doesn’t know that a 19 page document is better.  Further, it’s a different world than it used to be.  There will be a lot of work.  Revising, repackaging, and retraining is what we think of.  Wade said to think you can simplify and think you won’t get in the fire, that’s being naive.  He added there were specifications being written to fit a specific vendor.  </div> <div> Gallagher said one department did a bid and did not award to the low bidder.  That resulted in a suit.  Everyone agreed they needed a procurement policy, she said.  There is a lot of overlap.  It needs to be revised.  We do requests for proposals a lot more than we did years and years ago.  You can’t define it in a sealed bid.  The construction section needs to be updated to indicate that we do design-build.  She said her book is 14 years old and she refers to it every day.  </div> <div> Wade said the initial complaint was “How many times do you say the same thing?”  He said you have to have that consistency.  </div> <div> Kramer moved on to the scheduling of meetings.  She would like to have people look at Wednesdays in April.  Scarafia asked how we would notify people.  Kramer said press release, announce it on the web.  Scarafia said he is concerned about getting the vendors to the meeting.  She suggested the 16<FONT SIZE="1" COLOR="#000000" FACE="Arial" >th</FONT> from 10 - 12 for internal users as well as the 23<FONT SIZE="1" COLOR="#000000" FACE="Arial" >rd</FONT> from 10 - 12. for outside users.  </div> <div> Gallagher gave them an overview of procurement.  There are 4 people who do procurement.  Kramer supervises them There are 24 departments which are customers.  We are the only County that does the Health Department’s procurement.  They did 75 contracts over $15,000. $2,500 - $15,000 is a small purchase with informal bids.  Under $2,500 the Departments do their own procurement but must report so $$ can be encumbered.  One contract may have several items.  Fenwick asked for average $$.  Our regulations do not limit the $$ amount on an open ended contract.  You can double the amount of a contract award by doing a modification. She pointed out that the charge per unit has been competed.  These large contracts also include capital contracts.  Some counties don’t do the Sheriff or capital contracts.  She has to do a breakdown of BPO’s, small purchases, they train departments on HTE for procurement.  They train Contracting Officer’s Technical Representatives.  Some didn’t know what they could and couldn’t do.  Now they provide training.  They belong to the Tri - County Co-op and do bids for fuel oil.   The County has had a fixed price for fuel oil for the last three years and has saved a lot of money.  Procurement is on the third floor of the Governmental Center.  They are busy. </div> <div> Kramer said she would like tell them that the room is available for the 16<FONT SIZE="1" COLOR="#000000" FACE="Arial" >th</FONT> and 23<FONT SIZE="1" COLOR="#000000" FACE="Arial" >rd</FONT> from 10 - 12.  Franzen asked if statistics are kept on how much business goes outside the county and Gallagher said there are no set asides for County businesses.   Scarafia asked if there are contracts dollar ranges where they get 6 bidders while larger contracts have fewer bides.  Gallagher said it depends on what the item is.  She said some things are being bid every three years.  It’S hard to get bidders for St. Mary’s she said.  People see the locale and decide not to come.  You can’t do it in sequence and go south.                           </div> <div> Newkirk said in Charles County there is a small group of bidders.  They put in a change order which doubles the contract 30 days later.  He’d like to know about change orders.   Kramer said she cringes about this.  She said some orders are written too close to invoice time.  She is trying to keep that from happening.  Only Gallagher and Kramer can modify a contract.  </div> <div> Fenwick said there are open ended contract.  Kramer said she wants to be sure the money is in the Department’s budget to buy the item they are trying to get.  The challenge is to make sure the volume estimates are correct.  Gallagher said a modification can be done to equal or exceed the amount of the contract.  Kramer said often the modification is a next phase.  They try to rebid those.</div> <div> Gallagher said they do more contracting for services than contracting for items.  We supplement staff with outside contractors.  Kramer said she would like to see a project which could be open ended be bid if it is large enough.  Fenwick said he would like what background work has been done to determine what it needed to do the work.  Gallagher said departments are supposed to estimate how many hours are needed.  When the task order comes in the departments must provide a list of hours.  There was a discussion of how to involve small businesses in the process.  Wade noted that small businessmen can come at night.  Kramer said they could have an evening meeting.  Fenwick said he would like to understand the internal organization when he deals with vendors.  Kramer said they could have an evening meeting in early may.  Newkirk said he wants to start off right.  He wants to engage the community.  Small businesses cannot take off during the day.  Kramer noted there will be a budget hearing on the evening of the 23<FONT SIZE="1" COLOR="#000000" FACE="Arial" >rd</FONT> of April.  Fenwick said if we publish them both we are really giving them an opportunity.  Scarafia suggested not going into May.  He suggested the evening of the 24<FONT SIZE="1" COLOR="#000000" FACE="Arial" >th</FONT> for vendors at 5:30 PM - 7:30 PM.  They will publish all the dates.  Scarafia said if no one comes at 5:30 he doesn’t want to sit for two hours.  Kramer suggested they say they would extend the time and everyone agreed.  Powell said he thinks the outside meeting might better take place in the evening.  People could hear in person what’s going on.  Cooksey asked about overtime.  Kramer nodded. She went on to say they could take written suggestions. Fenwick asked what information will be put out to help people understand what we are doing.  Kramer said they can’t guard themselves from people who want to talk about things they can do nothing about.  She said people should have a sense of a solution and recommendation part rather than allegations.  Scarafia said he’s not sure we want to do it at the convenience of the general public.  He doesn’t want comments from the general public. Powell agreed.  Fenwick said if it’s in a controlled manner, and it goes out over the airways, maybe the public can learn what it’s about.  Scarafia asked if all the meetings are broadcast  live and was told as long as it’s in Room 14.  Kramer said so we’ll keep that combination.  She will draft an announcement.  Gallagher asked if there were any other changes to the contact sheet.  Kramer said they will carry the announcements on the web.  </div> </td> </tr></table></body>