At the March 2015 General Meeting the WA Dept of Enterprise Services gave this to attendees while talking about how they can increase the number of small and diverse business participation using State Master Contracts.

2. DES provides variety of support services to
state government, Washington residents.
Did You Know?
• Expertise in information
technology and printing
• Guidance for human
resources and employee
services
• Financial services
• Stewardship, oversight and
planning of state facilities
• Managing mail, vehicles and
surplus operations
• Public works and goods and
services contracts
Introduction

3. Public works contracting: Across the state, DES
manages nearly 800 design and construction projects
worth more than $500 million per biennium (two year
budget cycle).
Good and services contracting: DES oversees state
master contracts with more than 1,200 private
vendors who provide more than $2.6 billion worth of
goods and services per biennium.
Categories of Procurement at DES
Introduction

4. DES has identified innovative, multi‐faceted
approach to increase opportunities for small
and diverse businesses.
We want to share our efforts in three areas:
• Legislative work
• Public works contracts
• Goods and services contracts
Our Future
Introduction

5. Legislative Work

6. Senate Bill 5203 would increase total value of
work issued under Job Order Contracts from $16
million to $36 million.
Job Order Contracts:
• Are administratively efficient.
• Require 90 percent of work to be subcontracted
out.
• 36 percent of subcontract work planned to go to
diverse businesses.
• Individual work orders are less than $350,000.
2015 Legislation
Legislative Work

7. 2016 Legislative Work
• We are developing action plan for 2016
legislative session.
• We are working to educate legislators.
• Our goal: Remove barriers so small and diverse
businesses can more effectively compete for
state contracts.
• Your input is critical.
Legislative Work

8. DES is considering current small and
limited public works statutes:
• Increase the small public works
maximum from $300,000 to $500,000.
• Increase the limited public works
maximum from $35,000 to $150,000.
Ideas for 2016 Legislative Session
Legislative Work

9. We’re working on ideas now to meet
coming deadlines for submitting proposed
2016 legislation.
• Did you know? To successfully pass a
bill, it takes at least 18 months and
extensive stakeholder work.
We Need Your Feedback Now
Legislative Work

10. Public Works
Contracting

11. Public Works
• DES provides capital design and construction
management services for colleges and state agencies.
• In current two‐year fiscal period, there were nearly 800
design and construction projects worth more than
$500 million.
Goal: Remove barriers so that small and diverse
businesses can more effectively compete for DES
public works design and construction contracts.
Public Works Contracting
Public Works Contracting

12. Public Works Contracting
Barriers Identified:
• Lack of project information
• Lack of established business relationships
• Lack of familiarity with state processes
• Untimely payment
• Contract size
• Bonding limitations
• Retainage on payment
Strategies:
• Build awareness
• Policy
• Contract language
• Legislation
Public Works Contracting

13. Contract Values
Public Works Contracting
142
350
162
118
$2.5 M
$46 M
$86 M
$510 M
< $35,000 $35,000 <
$300,000
$300,000 <
$1 Million
> $1 Million
# of Projects
Value (In Millions)

14. Contract Values
Contract Amount Contract
Count
% Contract
Count
Dollar value % total
value
<$35,000 142 18% $2.46 million 0.38%
$35,000‐$300,000 350 45% $46.2 million 7.16%
$300,000‐$1
million
162 21% $85.5 million 13.26%
>$1 million 118 15% $511 million 79.20%
Totals 772 100% $645 million 100%
Public Works Contracting

15. Outreach:
• Quarterly events, project events and training.
Inclusion plans:
• Required on contracts worth $1 million or more.
• DES has 26 contracts valued at $172 million.
• Boosting small and diverse business participation
to 19 percent = $32 million in opportunities.
• 10 more projects valued at $80 million are
pending.
Public Works Contracting
Public Works Contracting

16. Possible Improvements
• Improved data collection and system for
measuring results
• More technical support and outreach
• Scored inclusion plans for contractor selection
• Past performance
• Timely payment requirements
• Retainage and bonding changes
Public Works Contracting
Public Works Contracting

17. Smaller Construction Contracts
• Contracts under $1,000,000
• Small Works ‐ $300,000 or less
• Limited Public Works – $35,000 or less
Professional Design Contracts
• Quick Select – $35,000 or less
• On‐call Professional Services ‐ $150,000
• Project Specific Selection – no limit
What’s Next?
Public Works Contracting

18. Goods and
Services
Contracting

19. Government procurement creates economic
opportunities for Washington business.
DES manages master contracts for wide range of needs:
• Information technology, communications and security.
• Professional consulting, counseling and training
services.
• Clothing and safety supplies.
• Food, medicine and health supplies.
• Fuel, transportation and facilities supplies.
• And much more.
Goods and Services Contracts
Goods and Services Contracting

20. Look for Upcoming Procurements
SAMPLE:
Current list is on DES web page:
http://bit.ly/UpcomingProcurementsDES
Goods and Services Contracting

21. Vendor Registration
Sign up on WEBS!
Washington’s Electronic Business Solution (WEBS) is the
state’s online vendor registration system.
Keep your information current!
Get certified!
• Department of Veterans Affairs
• Office of Minority & Women’s Business Enterprises
• Small business self‐certification in WEBS
Goods and Services Contracting

22. WEBS Registration Goals
Business Type
Registration as of
3/25/2015
Goal –
12/31/2015
Goal – Percent
Increase
Small 6,726 7,700 14%
Minority/Women 974 2,000 105%
Veteran 703 900 28%
All WEBS 33,968 37,000 9%
Goods and Services Contracting

23. During past two years, DES has been improving
master contracting opportunities and
assistance for small and diverse businesses.
• We are still listening and hope you will join us
by sharing your ideas and feedback.
Goods and Services Contracts
Goods and Services Contracting

24. Before we can measure improvement,
we need to accurately collect data.
We’ve got a good start – with more changes on the horizon.
We’ve made changes to Washington Electronic Business
Solution (WEBS), state’s online vendor registration system.
Other data solutions on our radar:
• Purchasing card data
• Subcontractor data
Data Collection
Goods and Services Contracting

25. Improves transparency
Emphasizes: Best value is not just about price!
Helps streamline contracting processes
Puts more rigor in analysis for delegating
contracting authority to agencies
– Includes a risk assessment.
Direct buy policy
Requires training
– To help ensure businesses have consistent experience when dealing with
any Washington state agency.
Procurement Reform
Goods and Services Contracting

26. A model plan to provide technical assistance
to vendors will be designed.
Goal: Help state agencies find ways to increase
their spending with small and diverse
businesses.
Guidance on how to:
• Simplify contracts
• Improve outreach and technical assistance
Moving Forward
Goods and Services Contracting

27. Working to answer questions
and explore new ideas.
• Would unbundling some bid packages be helpful?
• For small businesses, are regional contracts more
practical than statewide contracts?
• Could inclusion plans for large master contracts
covering an array of commodities be structured
so it opens up subcontracting opportunities?
Moving Forward
Goods and Services Contracting

28. As we work to boost support to the
small and diverse vendor community:
Your feedback and ideas are vital for
success.
Please contact us:
PublicInput@des.wa.gov
(360) 407-9390
Moving Forward