A performance audit of the Arizona Purchasing Review Board

              STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
A PERFORMANCE AUDIT
OF THE
ARIZONA PURCHASING REVIEW BOARD
OCTOBER 1982
A REPORT TQTHE
ARIZONA STATE LEGISLATURE
REPORT 82- 5
DOUGLAS R. NORTON. CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
October 25, 1982
Members of the Arizona L e g i s l a t u r e
The Honorable Bruce Babbitt, Governor
Ms. Sharon Seekins, Chairman
Arizona Purchasing Review Board
Transmitted herewith is a report of the Auditor General, A
Performance Audit of the Arizona Purchasing Review Board. This
report is i n response t o a January 18, 1982, r e s o l u t i o n of t h e J o i n t
L e g i s l a t i v e Oversight Committee. The performance a u d i t was conducted
as a part of the Sunset Review s e t f o r t h i n A. R. S. § § 41- 2351 through
41- 2379.
The blue pages present a summary of the r e p o r t ; a response from the
the Board is found on the yellow pages preceding the appendices.
My s t a f f and I w i l l be pleased t o discuss or c l a r i f y items i n the
report.
Respectfully submitted,
D O U ~ I U S R. Norton
Auditor General
S t a f f : William Thomson
Peter N. Francis
Sue Ann Freitag
DRN/ l b
Enclosure
1 1 1 WEST MONROE SUITE 600 PHOENIX. ARIZONA 85003 ( 602) 255- 4385
OFFICE OF THE AUDITOR GENERAL
A PERFORMANCE AUDIT OF THE
ARIZONA PURCHASING REVIEW BOARD
A KEPORT TO THE
ARIZONA STATE LEGISLATUPZ
REPORT 82- 6
TABLE OF CONTENTS
SUMMAKY
INTRODUCTION AND BACKGROUND
SUNSET FACTORS
FINDING
The Arizona Purchasing Review Board is no longer
necessary and could be terminated.
CONCLUSION
Page
i
1
LIST OF TABLES
Page
TABLE 1 - Purchasing Review Board Contract Compensation
and Expenditures f o r F i s c a l Years 1979- 80 through
1981- 82 2
TABLE 2 - Percent of S t a t e P o l i t i c a l Subdivisions Aware of
the Purchasing Review Board and Using Its Standards 15
SUMMARY
The Office of the Auditor General conducted a performance a u d i t of the
Arizona Purchasing Review Board i n response t o a January 18, 1982,
r e s o l u t i o n of the J o i n t L e g i s l a t i v e Oversight Committee. This performance
a u d i t was conducted as a part of the Sunset Review process s e t f o r t h i n
A. R. S. SS41- 2351 through 41- 2379.
The Purchasing Review Board was e s t a b l i s h e d by the l e g i s l a t u r e i n 1978 t o
develop energy e f f i c i e n t purchasing standards f o r the S t a t e and its
p o l i t i c a l subdivisions. Its membership c o n s i s t s of 1 5 p u b l i c and p r i v a t e
s e c t o r r e p r e s e n t a t i v e s appointed f o r one- year terms by the Governor.
Since 1979, the Board has adopted an average of 11 standards a year f o r
the procurement of energy e f f i c i e n t items t o comply with Federal and S t a t e
guidelines. Aproximately 130 Purchasing Review Board handbooks containing
energy e f f i c i e n t purchasing standards have been d i s t r i b u t e d t o major S t a t e
agencies and p o l i t i c a l subdivisions. In a d d i t i o n t o the development and
p u b l i c a t i o n of the handbook, the Board conducted s e v e r a l workshops i n the
past t h r e e years t o inform l o c a l governments of the usefulness of the
standards.
Sponsored by the Office of Economic Planning and Development ( OEPAD),
Arizona Energy Office ( AEO), w i t h a d m i n i s t r a t i v e support provided by the
Department of Administration - S t a t e Purchasing Office, board operations
a r e 100 percent Federally supported by a grant administered through the
U. S. Department of Energy. The Board does not have a full- time s t a f f ,
however, it was provided with a part- time i n t e r n from Arizona S t a t e
University by OEPAD/ AEO.
Our review found t h a t the Arizona Purchasing Review Board has f u l f i l l e d
its purpose and is no longer needed. Although i t has f a i l e d t o formally
adopt t h e standards it has developed as r u l e s ( see page 9 ) , the Board has
f u l f i l l e d S t a t e and Federal requirements and continuation is not required
t o receive Federal funds. In a d d i t i o n , implementation of c e n t r a l i z e d
purchasing has eliminated the need f o r the Board at t h e S t a t e
l e v e l ( see page 13). F i n a l l y , although p o l i t i c a l s u b d i v i s i o n s of t h e S t a t e
need t o be made more aware of Board- developed standards, t h i s f u n c t i o n can
be f u l f i l l e d by the Arizona Energy Office, which conducts e d u c a t i o n a l
programs throughout the S t a t e ( see page 14).
INTRODUCTION AND BACKGROUND
The Office of the Auditor General conducted a performance a u d i t of the
Arizona Purchasing Review Board i n response t o a January 18, 1982,
r e s o l u t i o n of the J o i n t L e g i s l a t i v e Oversight Committee. This performance
a u d i t was conducted a s a part of the Sunset Review process s e t f o r t h i n
A. B. S. § § 41- 2351 through 41- 2379.
The Purchasing Review Board was e s t a b l i s h e d by the l e g i s l a t u r e i n 1978 t o
develop energy e f f i c i e n t purchasing standards f o r the S t a t e and its
p o l i t i c a l subdivisions. Its membership c o n s i s t s of 15 public and p r i v a t e
s e c t o r r e p r e s e n t a t i v e s appointed f o r one- year terms by the Governor.
The Board was created as a r e s u l t of Federal l e g i s l a t i o n which was
designed i n p a r t t o encourage s t a t e s t o develop energy e f f i c i e n t
procurement standards. In 1975, the U. S. Congress enacted the Energy
Policy and Conservation Act ( EPCA) i n response t o the nationwide energy
c r i s i s . Under T i t l e 111, Part C of the Act, funds a r e provided t o s t a t e s
which e s t a b l i s h energy conservation plans which meet s p e c i f i c Federal
requirements. One of these requirements is the development of energy
e f f i c i e n t procurement standards.
Since 1979, the Board has adopted an average of 11 standards a year f o r
the procurement of energy e f f i c i e n t items t o comply with Federal and S t a t e
guidelines. Approximately 130 Purchasing Review Board handbooks
containing energy e f f i c i e n t purchasing standards have been d i s t r i b u t e d t o
major S t a t e agencies and p o l i t i c a l subdivisions. In a d d i t i o n t o the
development and p u b l i c a t i o n of the handbook, the Board conducted s e v e r a l
workshops i n t h e p a s t t h r e e years t o inform l o c a l governments of the
usefulness of the standards.
The Board is sponsored by the Office of Economic Planning and Development
( OEPAD), Arizona Energy Office ( AEO), and a d m i n i s t r a t i v e support is
provided by the Department of Administration - S t a t e Purchasing Office
through an interagency agreement with OEPAD. Board operations a r e 100
percent Federally supported by EPCA funds administered through the U. S.
Department of Energy. The Board does not have a full- time s t a f f , however,
it was provided with a part- time i n t e r n from Arizona S t a t e University by
OEPAD/ AEO. Table 1 i n d i c a t e s t h a t Board expenditures have declined from
$ 19,383 i n f i s c a l year 1980- 81 t o an estimated $ 10,976 i n f i s c a l year
1981- 82.
The following t a b l e shows the contract compensation and expenditures of
the Purchasing Review Board f o r a three- year period.
PURCHASING REVIEW BOARD CONTRACT COMPENSATION AND EXPENDITURES
FOR FISCAL YEARS 1979- 80 THROUGH 1981- 82
Estimated
1979- 80 1950- 81 1981- 82
Contract compensation $ 8,500 $ 20,000 $ 4,618"
Expenditures 5,519 19,383 4,618
Balance of contract
* The contract compensation between OEPAD/ AEO and SPO did not include
i n t e r n s a l a r y and employee- related expenses i n the amount of $ 6,358,
which were paid f o r d i r e c t l y by OEPAD/ AEO i n 1981- 82.
-
Audit Scope and Objective
Our a u d i t of the Purchasing Review Board addressed i s s u e s s e t f o r t h i n the
11 Sunset f a c t o r s contained i n A. R. S. s41- 2354.
The Auditor General and staff express gratitude to the Arizona Purchasing
Review Board and the staffs of the Department of Administration - State
Purchasing Office and OEPAD/ AEO for their cooperation and assistance
during the course of this audit.
SUNSET FACTORS
In accordance with A. R. S. Ss41- 2351 through 41- 2379, 11 f a c t o r s a r e
considered to determine, i n p a r t , whether the Arizona Purchasing Review
Board should be continued or terminated.
1. Objective and purpose i n e s t a b l i s h i n g t h e Agency
The i n t e n t of t h e L e g i s l a t u r e i n e s t a b l i s h i n g the Arizona Purchasing
Review Board is s e t f o r t h i n A. R. S. $ 41- 568 which s t a t e s :
" A. The Arizona purchasing review board s h a l l adopt
r u l e s and r e g u l a t i o n s e s t a b l i s h i n g t h e minimum
standards f o r the procurement of energy consumptive
products by t h i s s t a t e and p o l i t i c a l subdivisions of
t h i s s t a t e .
" B. Standards adopted pursuant t o subsection A s h a l l
be based upon c o n s i d e r a t i o n s of energy conservation and
of l i f e cycle cost t o i n s u r e adequate and f a i r p r i c e
competition."
2. The e f f e c t i v e n e s s with which the Agencv has m e t its obiective and
purpose and the e f f i c i e n c y with which the agency has operated
In t h e p a s t t h r e e years, the Board developed 32 standards f o r the
procurement of energy consumptive products by S t a t e agencies and
p o l i t i c a l subdivisions of the S t a t e . The standards have been
d i s t r i b u t e d to 130 S t a t e agencies and p o l i t i c a l subdivisions, and
workshops were held t o a s s i s t l o c a l purchasers i n the use of the
standards. The standards a r e c u r r e n t l y being used by t h e S t a t e
Purchasing Office and some p o l i t i c a l subdivisions which have received
the standards.
The extent t o which the Agency has operated w i t h i n t h e public i n t e r e s t
The Board developed standards f o r procuring products used by the S t a t e
and p o l i t i c a l subdivisions which a r e more energy e f f i c i e n t . This
e f f o r t is i n the public i n t e r e s t since it is intended t o save taxpayer
d o l l a r s and reduce energy consumption.
4. The extent t o which r u l e s and r e g u l a t i o n s promulgated by the Agency
a r e c o n s i s t e n t with the l e g i s l a t i v e mandate
Our a u d i t revealed t h a t the Board had not f u l f i l l e d its l e g i s l a t i v e
mandate t o adopt r u l e s and regulations. The Board had not promulgated
r u l e s and r e g u l a t i o n s a s required i n accordance w i t h a d m i n i s t r a t i v e
procedures ( see page 9).
The extent t o which the Agency has encouraged input from the public
before promulgating its r u l e s and r e g u l a t i o n s and t h e e x t e n t t o which
it has informed t h e p u b l i c a s t o its a c t i o n s and t h e i r expected impact
on the public
The Board encouraged p u b l i c i n p u t through the use of questionnaires
and holding workshops i n various p a r t s of t h e S t a t e . These workshops
a l s o were used t o inform the public of Board a c t i o n s and the impact of
those a c t i o n s .
6. The extent t o which the Agency has been able t o i n v e s t i g a t e and
resolve complaints which a r e within its j u r i s d i c t i o n
The Board does not receive, i n v e s t i g a t e or resolve complaints from the
public.
7. The extent t o which the Attorney General or any other applicable
agency of S t a t e government has t h e a u t h o r i t y t o prosecute a c t i o n s
under enabling l e g i s l a t i o n
Board- enabling l e g i s l a t i o n does not define v i o l a t i o n s nor prescribe
p e n a l t i e s . Therefore, no prosecutable a c t i o n s a r e s p e c i f i e d i n the
enabling l e g i s l a t i o n .
8. The extent t o which the Agency has addressed d e f i c i e n c i e s i n the
enabling s t a t u t e s which prevent it from f u l f i l l i n g its s t a t u t o r y
mandate
According t o the Board, no d e f i c i e n c i e s i n the enabling l e g i s l a t i o n
have been addressed.
9. The extent to which changes a r e necessary i n the laws of the Agency t o
adequately comply with t h e f a c t o r s l i s t e d i n the Sunset law
Our a u d i t revealed t h a t no changes a r e necessary t o comply with sunset
f a c t o r s addressed.
10. The extent t o which the termination of the agency would s i g n i f i c a n t l y
harm the ~ u b l i ch e a l t h . s a f e t v or welfare
Termination of the Board would not harm t h e p u b l i c h e a l t h , s a f e t y or
welfare.
11. The extent to which the l e v e l of r e g u l a t i o n exercised by the agency is
appropriate and whether l e s s or more s t r i n g e n t l e v e l s of r e g u l a t i o n
would be a ~ ~ r o ~ r i a t e
This sunset f a c t o r is not applicable t o the Arizona Purchasing Review
Board. -
FINDING
THE ARIZONA PURCHASING REVIEW BOARD IS NO LONGER NECESSARY AND COULD EE
TERMINATED.
The Arizona Purchasing Review Board has f u l f i l l e d i t s purpose and is no
longer needed. The Board completed development of energy e f f i c i e n t
procurement standards as required by S t a t e law, although it f a i l e d t o
formally adopt t h e s t a n d a r d s a s r u l e s . The i n t e n t of Federal l e g i s l a t i o n
supporting t h e Board has a l s o been s u b s t a n t i a l l y f u l f i l l e d and
continuation of the Board is not required to receive Federal funds. In
a d d i t i o n , implementation of c e n t r a l i z e d purchasing has eliminated the need
f o r the Board at t h e S t a t e l e v e l . Although p o l i t i c a l subdivisions of the
S t a t e need t o be made more aware of Board- developed standards, t h i s
function can be f u l f i l l e d by the Arizona Energy Office which conducts
educational programs throughout t h e S t a t e .
Standards Had Been Developed
But Were Not Formallv Ado~ ted
The Board had f u l f i l l e d i t s s t a t u t o r y purpose by developing energy
e f f i c i e n t procurement standards f o r use by the S t a t e and its p o l i t i c a l
subdivisions. However, it has f a i l e d t o f u l l y comply with law s i n c e t h e
standards have not been formally adopted a s r u l e s and regulations.
Enabling l e g i s l a t i o n r e q u i r e s t h e Board to adopt r u l e s e s t a b l i s h i n g
standards f o r the procurement of energy consumptive products. Arizona
Revised S t a t u t e s ( A. R. S.) s41- 568, paragraph A s t a t e s :
" The Arizona purchasing review board s h a l l adopt r u l e s
and r e g u l a t i o n s e s t a b l i s h i n g minimum standards f o r the
procurement of energy consumptive products by t h i s
s t a t e and p o l i t i c a l subdivisions of t h i s s t a t e . "
During the past t h r e e years, the Board developed 32 standards covering
frequently purchased products such as a i r compressors, commercial
r e s t a u r a n t equipment, lamps and v e h i c l e s . According t o Board o f f i c i a l s ,
the 32 standards apply t o those products o f f e r i n g t h e g r e a t e s t p o t e n t i a l
f o r s i g n i f i c a n t energy savings.
Board members s t a t e d t h a t most standards were developed and t h a t the Board
should now begin t o do more t o educate p o t e n t i a l u s e r s . F u r t h e r ,
according to an OEPAD o f f i c i a l ,
" It appears the Board has made the l a r g e s t impact
possible now i n developing standards. Any more
standards developed w i l l probably not have as
s i g n i f i c a n t an impact on energy savings."
Moreover, any needed revision of e x i s t i n g standards can be done by the
S t a t e Purchasing Office ( see page 13).
The Board has f a i l e d t o f u l l y comply with its s t a t u t o r y duty because Board
standards have not been formally adopted a s r u l e s pursuant t o the
Administrative Procedures Act ( A. R. S. $ 41- 1001 e t . seq.). According t o
the L e g i s l a t i v e Council i n an opinion dated August 12, 1982,
"... the Board is subject to the Administrative
Procedure Act and must adopt r u l e s and r e g u l a t i o n s
e s t a b l i s h i n g minimum standards pursuant t o the
provisions of the Administrative Procedure Act.... the
Board has not conformed t o the requirements of the
Administrative Procedure Act i n its adoption of
standards."
- -
According to a member of the Board, the Board has not adopted its
standards a s r u l e s because t h e s t a n d a r d s have been viewed as i n t e r n a l
policy not a f f e c t i n g other e n t i t i e s . The Administrative Procedure Act
, .
does not apply i f r u l e s a r e of an i n t e r n a l p o l i c y n a t u r e not a f f e c t i n g any
a
other e n t i t y . However, standards developed by the Board a f f e c t several
--
e n t i t i e s such as S t a t e agencies - and p o l i t i c a l subdivisions of t h e S t a t e
and, therefore, a r e covered by the Act.
A t t h i s point, i t may not be necessary t o formally adopt the standards.
Federal i n t e n t regarding procurement standards is to educate p o t e n t i a l
users r a t h e r than enforce t h e i r use ( see page 1 2 ) . F u r t h e r ,
c e n t r a l i z a t i o n of purchasing functions by the S t a t e i n 1982 has eliminated
the need f o r the Board ( see page 13).
Federal Guidelines
Have Been llet
The i n t e n t of Federal l e g i s l a t i o n supporting the Board has a l s o been
s u b s t a n t i a l l y f u l f i l l e d and continuation of the Board is not required t o
receive f u t u r e Federal funds. Mandatory standards f o r energy e f f i c i e n t
procurement were developed as required by the Federal l e g i s l a t i o n .
Federal l e g i s l a t i o n does not require t h a t such standards be developed
through a s t a t e board and eiimination of the Board would not jeopardize
continued r e c e i p t of f u t u r e Federal energy funds.
In 1975, the U. S. Congress enacted the Federal Energy Policy and
Conservation Act ( EPCA) which made funds a v a i l a b l e t o those s t a t e s which
developed S t a t e Energy Conservation Plans ( SECP) meeting s p e c i f i c
guidelines. One of these guidelines is energy e f f i c i e n t procurement.
Public Law 94- 163, Part C, Section 362 s t a t e s :
"( c) Each proposed S t a t e energy conservation plan t o
be e l i g i b l e f o r Federal a s s i s t a n c e under t h i s p a r t
s h a l l include--
"( 3) mandatory standards and p o l i c i e s r e l a t i n g t o
energy e f f i c i e n c y t o govern the procurement
p r a c t i c e s of such S t a t e and its p o l i t i c a l
subdivisions...."
The language of the Act was i n t e n t i o n a l l y broad t o allow s t a t e s
f l e x i b i l i t y to implement the requirements of the Act. According to a
Federal energy o f f i c i a l ,
" The government intended t h a t some type of procurement
standard, using l i f e cycle c o s t and energy useage, was
t o be s e t up by each s t a t e . The language was t o be i n
some form of " must use", however, the method of
implementation was l e f t f o r each s t a t e t o decide."
To meet t h i s requirement, the Arizona L e g i s l a t u r e c r e a t e d the Arizona
Purchasing Review Board i n 1978 and granted it t h e a u t h o r i t y t o develop
standards for procurement.
The i n t e n t of the Federal l e g i s l a t i o n has been s u b s t a n t i a l l y f u l f i l l e d i n
Arizona. As noted e a r l i e r , 32 standards were developed f o r the S t a t e ' s
most frequently purchased energy consumptive products. The standards were
adopted a s policy by the S t a t e Purchasing Office and a r e c u r r e n t l y i n
use. Although a l l p o l i t i c a l subdivisions a r e not using the standards, the
Federal government did not intend t o force use of the standards i n the
s t a t e s . Instead, it intended t h a t affected j u r i s d i c t i o n s be shown how t o
use the standards t o demonstrate t h e i r usefulness. Educational workshops
on t h e s t a n d a r d s were held throughout the S t a t e by the Board and the
Arizona Energy Office. According t o a Federal EPCA o f f i c i a l , these
workshops s a t i s f y Federal standards f o r enforcement.
A s t a t u t o r y s t a t e board is not required t o implement the i n t e n t of the
Federal l e g i s l a t i o n nor t o assure continued r e c e i p t of Federal energy
funds. A survey of s t a t e s conducted by t h e O f f i c e of the Auditor General
revealed t h a t other s t a t e s have not e s t a b l i s h e d s t a t e boards t o meet the
Federal requirement. Ten western s t a t e s were surveyed t o determine the
method used t o implement energy e f f i c i e n t procurement standards." In
seven s t a t e s , the s t a t e energy o f f i c e s worked c l o s e l y with the s t a t e
purchasing o f f i c e s developing the required standards. None of the s t a t e s
e s t a b l i s h e d separate boards.
Use of Federal energy funds t o develop purchasing standards was intended 4
t o be a one- time expenditure. According t o a Federal energy o f f i c i a l , , E -
energy e f f i c i e n t standards f o r procurement a r e " self- perpetuating." Once
the standards a r e e s t a b l i s h e d , s t a t e s may use Federal energy funds f o r
other purposes. . - 4
4
* The ten s t a t e s surveyed include California, Colorado, Idaho, Montana,
Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.
Centralized Purchasing Eliminates
Need f o r the Board
Implementation of c e n t r a l i z e d purchasing i n Arizona has f u r t h e r eliminated
the need f o r the Purchasing Review Board. Under c e n t r a l i z e d purchasing,
S t a t e agencies must follow S t a t e Purchasing Office ( SPO) standards which
i n c l u d e t h e energy e f f i c i e n t procurement standards developed by the
Board. I n a d d i t i o n , SPO has proposed the establishment of a new advisory
council which could a s s i s t SPO i n assuming r e s p o n s i b i l i t y f o r reviewing
and revising board- developed standards a s needed.
When the Purchasing Review Board was e s t a b l i s h e d i n 1978, S t a t e agencies
were not required t o adhere s t r i c t l y t o Department of Administration,
S t a t e Purchasing Office procurement standards. Part of the Board's role
was t o develop energy e f f i c i e n t standards and persuade S t a t e agencies of
t h e i r usefulness.
In 1982, however, the L e g i s l a t u r e passed Senate B i l l 1337 e s t a b l i s h i n g
c e n t r a l i z e d purchasing i n Arizona. Standards f o r procurement a r e now
e s t a b l i s h e d by the S t a t e Purchasing Office and a l l S t a t e agency
procurements must conform t o those standards. The SPO's procurement
p o l i c i e s include the Arizona Purchasing Review Board's standards f o r
energy consumptive products and a r e incorporated i n t o a l l S t a t e
c o n t r a c t s . Because a l l S t a t e agencies w i l l be using t h e s e c o n t r a c t s , it
is no longer necessary f o r the Board t o promote use of its standards.
Should the administration of the SPO change, t h e c u r r e n t p o l i c i e s could
a l s o change including use of the Board's standards. To address t h i s
p o t e n t i a l problem, a S t a t e Purchasing Office o f f i c i a l suggested changing
SPO s t a t u t e s t o require use of energy e f f i c i e n t standards. According t o
t h a t o f f i c i a l , however, any s t a t u t o r y enactment should be broad enough t o
allow f l e x i b i l i t y .
The S t a t e Purchasing Office has proposed establishment of a new advisory
council which could a s s i s t the SPO i n assuming r e s p o n s i b i l i t y f o r
p e r i o d i c a l l y reviewing and revising Board- developed standards. The
administrator of the S t a t e Purchasing Office s t a t e d :
" The Purchasing Office is intending to s e t up a
voluntary council of various S t a t e agencies,
u n i v e r s i t i e s and other p o l i t i c a l subdivisions. The
purpose of the council w i l l be t o go over various S t a t e
c o n t r a c t s , c r e a t e and maintain a good working
r e l a t i o n s h i p with a l l e n t i t i e s involved, and review
developed standards f o r energy e f f i c i e n t purchasing and
promote t h e i r use."
This council would f u r t h e r e l i m i n a t e t h e need f o r the Board by assuming
the r e s p o n s i b i l i t y of revising standards as necessary. According t o Board
members, standards need t o be revised as the marketplace changes the
q u a l i t y of products it is o f f e r i n g . There is no set time requirement,
however, f o r revision.
P o l i t i c a l Subdivision
Awareness Can Be Im~ roved
P o l i t i c a l subdivisions need t o be made more aware of the standards
developed by the Purchasing Review Board. This f u n c t i o n , however, could
be f u l f i l l e d by the Arizona Energy Office* which conducts energy- related
workshops throughout the S t a t e .
Awareness of Purchasing Review Board standards needs t o be improved among
p o l i t i c a l subdivisions of t h e S t a t e . The Office of the Auditor General
conducted a survey of counties, ' c i t i e s , and school d i s t r i c t s which could
benefit from energy e f f i c i e n t purchasing standards. Survey r e s u l t s , shown
i n Table 2, revealed t h a t approximately half ( 46 percent) of the
j u r i s d i c t i o n s surveyed were aware of the Board. Awareness of Board
standards was highest among school d i s t r i c t s ( 70 percent), and lowest
among c i t i e s surveyed ( 36 percent). •
. E -
Less than one- third of the j u r i s d i c t i o n s ( 28 p e r c e n t ) r e p o r t e d using t h e
standards. A l l users, however, found the standards h e l p f u l , i n d i c a t i n g
t h e value of t h e s t a n d a r d s and need f o r more awareness of them. . - a
-
* The Arizona Energy Office is a d i v i s i o n of the Office of Economic
Planning and Development and is charged with implementing Arizona's
energy p o l i c i e s . •
TABLE 2
PERCENT OF STATE POLITICAL SUBDIVISIONS AWARE OF
THE PURCHASING REVIEW BOARD AND USING ITS STANDARDS
Percent
Number Percent Using Board
Surveyed Aware of Board Standards
TOTALS
C i t i e s
Counties
School D i s t r i c t s
R e s p o n s i b i l i t y f o r educating p o l i t i c a l subdivisions about energy e f f i c i e n t
procurement standards could be assumed by the Arizona Energy Office which
conducts energy- related workshops throughout t h e S t a t e . Considerable
Energy Office a c t i v i t y is educational i n nature-- preparing and
d i s t r i b u t i n g panphlets, organizing and presenting workshops and providing
t e c h n i c a l a s s i s t a n c e to e n t i t i e s f o r various OEpAD/ AEO- sponsored programs.
In the past t h r e e y e a r s , the Board has held workshops i n various l o c a t i o n s
i n Arizona. One of the most recent workshops i n 1982 was coordinated by
the Arizona Energy Office and incorporated Board procurement standards
along with other energy conservation programs, such a s s o l a r power. An
Auditor General survey of western s t a t e s revealed t h a t 70 percent of the
s t a t e s sponsor s i m i l a r workshops on procurement standards through t h e i r
energy o f f i c e s . A separate S t a t e Board is not needed f o r t h i s purpose.
CONCLUSION
The Arizona Purchasing Review Board has accomplished i t s purpose by
developing standards f o r the procurement of energy consumptive products
and i s no longer necessary. The remaining functions of the
Eoard-- revision of e x i s t i n g standards and education of p o l i t i c a l
subdivisions-- can be taken over by the S t a t e Purchasing Office and the
Arizona Energy Office.
1. The L e g i s l a t u r e should consider allowing the Arizona Purchasing Review
Board t o terminate on July 1, 1984.
2. If the Arizona Purchasing Review Board is allowed t o terminate, A. R. S.
$ 41- 729 should be amended t o r e q u i r e t h e S t a t e Purchasing Office t o
use energy e f f i c i e n t procurement standards.
3. The Arizona Energy Office should continue t o sponsor workshops t o
promote the use of the Arizona Purchasing Review Board standards by
p o l i t i c a l subdivisions.
S T A T E O F A R I Z O N A
ARIZONA ENERGY PURCHASING REVIEW BOARD
October 25, 1982
Mr. Douglas R. Norton
The Auditor General
State of Arizona
111 W. Monroe, Suite 600
Phoenix, Arizona
Dear Mr. Norton:
The Arizona Energy Purchasing Review Board has completed its
review of the Auditor's General's preliminary report and
performance audit. The Board is generally pleased with the words
of praise for " a job well done" but would like to offer a few
comments. There are some minor inaccuracies which will be addressed
by the Board at a later date.
Our Board members do not feel that all sources for new energy
efficient procurement standards have been exhausted. As the
State's purchasing practices and technology changes, many oppor-tunities
will arise to facilitate additions, revisions, or perhaps
deletions from the 32 existing standards. We feel that the best
way to insure the standards' continued validity is to formalize
their use at the State level as recommended. To this end, the
Board would like to propose legislation through its ex- officio
legislative members at the appropriate time. We also concur
that ongoing revision of our existing standards can be achieved
by the State Purchasing Office, aided in part by the Arizona
Energy Office and the proposed purchasing advisory council.
The Board also takes issue with the narrow interpretation of
its purpose as set forth in your preliminary report. The Board
is not by law limited solely to the development of procure-ment
standards and conducting of workshops. Our current contract
with OEPAD- AEO requires the Eoard to " prepare an alternative
fuel use plan for State vehicles and other projects ... that
are conducive to energy conservation." The Board feels this
project is of no less in~ portance than the development of procure-ment
standards and may indeed have a more far- reaching impact
than the procurernent standards themselves.
Mr. Douglas R. Norton
The Auditor General
October 25, 1982
In conclusion, the Arizona Energy Purchasing Review Board generally
concurs with the Auditor General's recommendation that the Board
be terminated in accordance with the Sunset Review process;
provided that use of its procurement standards are formalized
and that our tasks are assigned to other relevant agencies to
be carried on in future years. Please keep us informed of the
review process through our current chairman, Ms. Sharon Seekins,
whose address is:
Ms. Sharon E. Seekins, CPPO, C. P. M.
City of Mesa Purchasing Division
PO Box 1466
Mesa, Arizona 85201
Sincerely,
Sharon E. Seekins
Chairman,
Arizona Energy Purchasing Review Board