COBI 2015 - Purchasing

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 spending 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, $653,700 from all sources for Purchasing. This is a 3.5 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $653,700 from the General/Education Funds, an increase of 3.5 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time

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 25% budget appropriation to the Purchasing Section.

Dedicated Credits are generated by contract management cost reimbursements. The division participates in and manages several multi-state contracts for the Western States Contracting Alliance (WSCA) -- a contracting alliance of fifteen western states. Utah has the lead on data communications, small package delivery, and other types of contracts.

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Expenditure Category

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Appropriation History by

Programs	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Purchasing and General Services	1,465,200	1,457,400	761,100	617,200	631,600	0	631,600	22,100	653,700
Total	$1,465,200	$1,457,400	$761,100	$617,200	$631,600	$0	$631,600	$22,100	$653,700

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	1,370,200	1,061,100	761,100	615,900	629,100	0	629,100	19,100	648,200
General Fund, One-time	0	0	0	1,300	2,500	0	2,500	3,000	5,500
Dedicated Credits Revenue	85,800	396,300	0	0	0	0	0	0	0
Beginning Nonlapsing	9,200	0	0	0	0	0	0	0	0
Total	$1,465,200	$1,457,400	$761,100	$617,200	$631,600	$0	$631,600	$22,100	$653,700

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	1,333,000	1,328,600	531,800	552,000	543,500	19,000	562,500	8,400	570,900
In-state Travel	3,900	1,300	400	800	400	400	800	0	800
Out-of-state Travel	1,600	400	0	0	0	0	0	0	0
Current Expense	63,800	79,100	171,100	45,800	67,200	(21,400)	45,800	10,500	56,300
DP Current Expense	51,600	48,000	57,800	18,600	20,500	2,000	22,500	3,200	25,700
Other Charges/Pass Thru	11,300	0	0	0	0	0	0	0	0
Total	$1,465,200	$1,457,400	$761,100	$617,200	$631,600	$0	$631,600	$22,100	$653,700

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	22	20	5.50	5.50	5.50	0.50	6	0	6
Actual FTE	16.90	15.86	10.90	7.30	0	0	0	0	0

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.