COBI 2015 - ISF - Cooperative Contracting

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Division of Purchasing provides a centralized purchasing function for all state agencies. Purchasing manages hundreds of Statewide "Best Value" Cooperative Contracts that are used by state agencies, education, and local governments. The value of these contracts to all public entities in the state is represented by more than $1.6B in spend for Fiscal Year 2014. Two-thirds of the reported spend is accounted for through purchases made by non-state public members of the cooperative. Furthermore, the division is the Issuing Procurement Unit for state agencies exceeding a combined 3,000 contracts and solicitations that value more than a billion dollars annually.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $2,882,400 from all sources for ISF - Cooperative Contracting. This is a 193.5 percent increase from Fiscal Year 2015 revised estimated amounts from all sources.

State Purchasing Cooperative Contracts

State Purchasing manages more than 700 Statewide "Best Value" Cooperative Contracts that are utilized by state agencies, institutions of higher education, school districts, and local governments. Usage of the contracts is mandatory by state agencies, but voluntary by political subdivisions. Thus political subdivision usage of the contracts is a barometer of whether the contracts provide best value.

Statute

The Utah Procurement Code 63G-6a-303 requires the chief procurement officer to

Adopt office policies governing the internal functions of the division;
Procure or supervise each procurement over which the chief procurement officer has authority;
Establish and maintain programs for the inspection, testing, and acceptance of each procurement item over which the chief procurement officer has authority;
Prepare statistical data concerning each procurement and procurement usage of a state procurement unit;
Ensure that, before approving a procurement not covered by an existing statewide contract for information technology or telecommunications supplies or services, the chief information officer and the agency have stated in writing to the division that the needs analysis required in Section 63F-1-205 was completed, unless the procurement is approved in accordance with Title 63M, Chapter 1, Part 26, Government Procurement Private Proposal Program; and the oversight authority required by Subsection (5)(a) is not delegated outside the division;
Provide training to procurement units and to persons who do business with procurement units;
If the chief procurement officer determines that a procurement over which the chief procurement officer has authority is out of compliance with this chapter or board rules, the chief procurement officer may correct or amend the procurement to bring it into compliance; or cancel the procurement, if: (A) it is not feasible to bring the procurement into compliance; or (B) the chief procurement officer determines that it is in the best interest of the state to cancel the procurement; and
If the chief procurement officer determines that a contract over which the chief procurement officer has authority is out of compliance with this chapter or board rules, correct or amend the contract to bring it into compliance or cancel the contract if the chief procurement officer determines that correcting, amending, or canceling the contract is in the best interest of the state; and after consultation with the attorney general's office the chief procurement officer may: (A) correct, amend, or cancel a procurement as provided in Subsection (1)(g) at any stage of the procurement process; and (B) correct, amend, or cancel a contract as provided in Subsection (1)(h) at any time during the term of the contract.

In 2011, the Utah Legislature authorized the Division of Purchasing and General Services' Purchasing Section to transition to an Internal Service Fund (ISF). Through the legislatively-authorized implementation of an administrative fee of up to 1% on the over 700 Statewide "Best Value" Cooperative Contracts procured and managed by the Section. The transition is complete with all personnel being approximately 75% ISF and 25% appropriated. This section represents the work performed under the 75% ISF Administrative Fee collected by the Purchasing Section.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Dedicated Credits - Intragvt Rev	1,651,800	2,220,600	3,193,000	2,882,000	2,304,200	577,800	2,882,000	400	2,882,400
Transfers	0	0	0	(100,000)	0	(1,900,000)	(1,900,000)	1,900,000	0
Total	$1,651,800	$2,220,600	$3,193,000	$2,782,000	$2,304,200	($1,322,200)	$982,000	$1,900,400	$2,882,400

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	369,300	603,900	1,617,800	1,757,400	1,853,500	101,400	1,954,900	0	1,954,900
In-state Travel	0	0	500	4,100	500	3,600	4,100	0	4,100
Out-of-state Travel	200	4,400	5,100	3,000	1,000	2,000	3,000	0	3,000
Current Expense	200,900	194,100	351,700	536,600	366,900	82,100	449,000	253,100	702,100
DP Current Expense	2,100	4,100	73,300	64,300	73,300	(15,900)	57,400	0	57,400
DP Capital Outlay	0	0	0	0	0	0	0	115,700	115,700
Other Charges/Pass Thru	104,500	4,900	266,100	100,000	9,000	0	9,000	(3,100)	5,900
Total	$677,000	$811,400	$2,314,500	$2,465,400	$2,304,200	$173,200	$2,477,400	$365,700	$2,843,100

Show Table | Show Additional Information

Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	3	3	17.50	17.50	17.50	0	17.50	0.50	18
Actual FTE	4.36	7.30	13.50	17.40	0	0	0	0	0
Retained Earnings	1,455,900	2,865,100	3,743,700	4,060,300	4,087,000	(1,522,100)	2,564,900	39,300	2,604,200

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.