Tipos de decisiones y sus principales características

3

The Department of Central Management Services and the Chief Procurement Officer for General Services should evaluate the different options available, determine the appropriate procurement method to use, and document the reasons the procurement method was selected.

CMS RESPONSE

CPO RESPONSE The CPO agrees its staff, in consultation with purchasing agencies, should evaluate and determine the appropriate procurement method to use for a particular solicitation, in compliance with the requirements of the Procurement Code.

The OAG found all provisions of the Code it tested were followed by the CPO except for Section 20-10(g), which requires IFBs to be awarded to the lowest responsible and responsive bidder. However, the OAG recognized in its discussion the Code provides direction on conducting procurements for concessions. Procurements for concessions are conducted in accordance with Article 20 of the Code, except the contract is awarded to the highest and best bidder or offeror. 30 ILCS 500/53- 10(a). The OAG also acknowledged the solicitation that was issued made clear the award would be to the vendor who was the highest and best bidder. The OAG found that the award was made to the vendor who was the highest and best bidder.

The CPO further agrees with the OAG that the procurement method should be determined on a timely basis, once an agency has determined its need. The CPO has instructed agencies once need is determined, Step 1 of the approval form (approval of procurement method) should be completed so as to not to unnecessarily delay procurements. The purchasing agency should have submitted the approval form much sooner than what was done in this instance.

NUMBER

4

Department of Central Management Services and the Chief Procurement Officer for General Services should ensure that the factors used to evaluate pricing are developed in a timely fashion and adequately tested to avoid flaws in the pricing table.

CMS RESPONSE

CPO RESPONSE The CPO agrees that for future solicitations involving inmate collect calling services it and the purchasing agency should ensure the factors used to evaluate pricing are developed in a timely fashion and are adequately tested to avoid flaws in the pricing table.

NUMBER

5

Procurement Officer for General Services should fully document the rationale for amending the contract rates as well as its effect on the original competitive procurement. Should CMS and the Chief Procurement Officer determine that the contract amendment significantly altered the terms of the competitive procurement, they should take the necessary actions to restore the contract to its original economic balance.

For future contract amendments, CMS and the Chief Procurement Officer should ensure that decisions to change contract terms and conditions are adequately supported and documented.

Finally, the Chief Procurement Officer should avoid situations where CPO employees make decisions on procurements in which they were previously involved on behalf of the procuring agency.

CMS RESPONSE

CPO RESPONSE The CPO agrees that the procurement file should be documented as required by law and rule. Each purchasing agency, under the direction of the SPO, is required to maintain in the procurement or associated contract file all substantive documents and records of communications that pertain to the procurement and any resulting contract. This also includes documentation of changes to or amendments to contracts. 44 Ill. Admin. Code 1.2080(c).

For contract amendments or change orders which increase or decrease the cost of a contract by a total of $10,000 or more or the time for completion by a total of 30 days or more, the procurement file is required to contain a written determination which affirms that (1) the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed, or (2) the change is germane to the original contract as signed, or (3) the change order is in the best interest of the unit of State and authorized by law. See 720 ILCS 5/33E-9.

The CPO is in agreement that the rationale for the contract amendment should be documented appropriately in the procurement file, but the CPO disagrees that CMS or the CPO should restore contracts to its original economic balance when contract amendments are necessary. The Criminal Code specifically recognizes that changes to contracts may not be reasonably foreseeable. In this instance, the CPO would assert the Illinois Commerce Commission’s ruling was not reasonably foreseeable. The emphasis of the OAG’s finding is on how much the contract amendment increased the amount of revenue to the vendor. It has not been the practice of the State in evaluating bids or offers to determine the profit or revenue to the vendor; rather, the emphasis has

whether a vendor’s revenue or profit on a contract is appropriate or just. Rather than focusing on how much the vendor’s revenue increased under this contract amendment, the CPO believes the importance of this finding should be on the effect the amendment had on the State’s revenue, i.e. how much did the State decrease its income from the contract.

Auditor Comment #2

We are not suggesting that the State determine whether the vendor’s revenue is “appropriate or just.” Rather, we note that the contract amendment significantly reduced the amount of commission revenue received by the State (the commission rate was the highest rated scoring criteria in the invitation for bids), and significantly increased the revenue received by the vendor. We further note that there was no documentation supporting the rationale for this change. As such, the auditors believe that CMS and the CPO should have more closely examined the amendment and documented the rationale for accepting a significant reduction in the amount of commission.

The CPO further believes it is the duty of CPO employees to act in a manner that maintains the integrity and public trust of State government. 30 ILCS 500/50-1.

Department of

Corrections

1301 Concordia Court • P.O. Box 19277 Telephone: (217) 558-2200

Springfield IL 62794-9277 TDD: (800) 526-0844

State's Procurement of Inmate Telephone Service Vendors

IDOC Monitoring of the Contract Responses

Monitoring Process

As of June 16, 2014 the IDOC manager position over Telecom was filled, which responsibilities will include the monitoring process of this contract such as payments, repairs, expansions and upgrades.

Interagency Agreement

CMS and IDOC recognize the benefits of formalizing their respective vendor commission payments under the contract. To that end, the two agencies have agreed to enter into a formal interagency agreement which stipulates the requirements and breakdown of the vendor payments for the commissions. The two agencies are in the process of drafting the agreement.

S. A. Godinez