SENATE BILL REPORT
SHB 1787
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As of March 15, 2017
Title: An act relating to oversight of the state procurement and contracting for information technology goods and services.
Brief Description: Providing oversight of the state procurement and contracting for information technology goods and services.
Sponsors: House Committee on Appropriations (originally sponsored by Representatives Hudgins, Koster, Appleton, Doglio, Kraft and Ormsby; by request of Office of the Chief Information Officer).
Brief History: Passed House: 3/06/17, 98-0.
Committee Activity: State Government: 3/15/17.
Brief Summary of Bill |
|
SENATE COMMITTEE ON STATE GOVERNMENT |
Staff: Melissa Van Gorkom (786-7491)
Background: Office of the Chief Information Officer (OCIO). OCIO was created in 2011 within the Consolidated Technology Services (CTS) agency and is responsible for the preparation and implementation of a strategic IT plan and enterprise architecture for the state.
Department of Enterprise Services. DES is responsible for the development and oversight of policy for the procurement of goods and services by all state agencies, including procurement processes for IT goods and services; and implementation of an enterprise system for electronic procurement.
The DES Director (Director) must adopt rules, policies, and guidelines governing procurement. The Director has the sole authority to:
enter into master contracts on behalf of the state; and
delegate authorization to purchase goods and services to agencies. Such authorization must specify restrictions as to dollar amount or specific types of goods and services, based on a risk assessment process. Delegation does not exempt the agency from conformance to the policies established by the Director.
DES also adopts uniform policies and procedures for the effective and efficient management of contracts by all state agencies. All contracts for purchases of goods and services must be based on a competitive solicitation process. DES may grant exemptions from competitive solicitation, including emergency contracts, sole source contracts, and direct buy purchases.
DES must provide expertise and training on best practices for state procurement. State agency employees responsible for procurement must complete the training or certification programs. No agency employee may execute or manage contracts unless the training and certification requirements have been met. DES may exempt an employee or a group of employees from the training or certification requirement.
Performance Assessments. A 1987 act established a federal program to evaluate management quality of U.S. businesses. Both the Baldrige Performance Excellence Program and the Malcolm Baldrige National Quality Award are administered by the National Institute of Standards and Technology (NIST) within the U.S. Department of Commerce. The program currently publishes performance excellence frameworks used by trained examiners to evaluate management in both for-profit and nonprofit organizations, including government entities. Following an assessment, an examiner scores an organization's management quality.
Summary of Bill: The bill as referred to committee not considered.
Summary of Bill (Proposed Striking Amendment): DES. DES is required to consult with OCIO regarding IT goods and services to ensure consistency with standards and policies to govern IT.
DES must coordinate with OCIO on purchasing for IT goods and services and may delegate authority to CTS to enter into master contracts for IT goods and services. Delegation does not exempt the agency from conformance to the policies established by the Director.
Performance Assessments. DES is required to provide excellence assessments of its IT contract operations by a trained examiner using a framework published by the NIST every two years and provide the completed assessment and feedback report to the Legislature and the Governor. The agency's goal is to achieve a 60 percent excellence assessment score within seven years of its first assessment. If DES achieves the goal, the agency must apply for a NIST performance award, and may conduct less-frequent excellence assessments. If DES fails to achieve the goal, the agency must achieve certification under an internationally recognized quality management system, such as ISO 9001, or its equivalent, within seven years of the first excellence assessment.
OCIO. OCIO must: be notified within three business days of any emergency purchase of IT goods and services; review and provide recommendations for any submittal for a sole source contract for IT goods and services; and approve any designation of mandatory use master contracts or delegation of authority to an agency for purchase of IT goods and services.
Training and certification programs for procurement of IT goods and services must be developed and provided in partnership with OCIO.
Null and Void. If funding is not provided by June 30, 2017, this act is null and void.
Appropriation: None.
Fiscal Note: Available. New fiscal note requested on March 13, 2017.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony on Proposed Striking Amendment: OTHER: OCIO is responsible in the oversight of state IT projects and a key success factor of that is to ensure that there is quality procurement and oversight of IT projects. The striking amendment includes impacts that were not reflected in the Governor's budget for the excellence assessment and the agency would like to work on minimizing that impact.
Persons Testifying: OTHER: Rob St. John, Office of the Chief Information Officer.
Persons Signed In To Testify But Not Testifying: No one.