State of Arizona Project S.L.I.M. report on the Department of Administration

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STATE OF ARIZONA
PROJECT S. LI. M. REPORT ON THE
DEPARTMENT OF ADMINISTRATION
July 2. 1992
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./' GV' 60,;). ; AJ~
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DEPARTMENT OF ADMINISTRATION
PROJECrSUM
TABLE OF CONTENTS
EXEaI11YE~ • • • • • . • • • • • . • • • • • • • • • • • • • • • • • • • • • . • • • ..• • • • • • • • • • • • • 1
REOOMMENDAllONS
8Iete frm.... 0IIce
Increase In Bid C8IIlng ...••.......•..............•...........•..•.•..• 35
Statewide Delivery of Commodities 37
Taxation of Contract Purchases .....•..••......•......•..........•.••..•• 39
Enforcement of Procurement Policies and ReglRtlons . . • . . . . . . • . . . • • • . . . . . . . .. 41
Off- Contract Purchase Authorization ( Form 150) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 45
Procurement Training ......•.......................................... 48
Public Notice for Procurement of Services 51
Usage Report . . . . . . . . . . . . . . . . . . . . . . . . • • . . . . . . . . . . . . . . . . . . . . . . • . . . . .. 55
Delegate DOA Purchasing Authority ............................•......... , 57
RIsk .......... DMsIgn
Change Loss Threshold to $ 5,000 59
PIng.... QMeIoo
Recruitment and HIring - Personnel DMslon ......................•......... 63
Clerical Pool/ Temporary Employment Service ..........•.................... 69
Open Continuous Announcements ......•.....•......•...•............... 72
Establishment of Hiring Ust ................•............................. 74
Job Application Evaluation TIming ......••..............•.....•..•..•.... , 77
Hire Ust Compliance and Clearing . . . • • . • • . • • . . . • . . . . . • . . • . • . • . . . • . . • . • . .• 79
Supervisor Signature of Hiring Ust ..................................•..... 81
AwnceQWm
Eliminate Requirement to Forward Te- 50 Forms to GAO ....••..•..•.•....••.•• 82
DesIgn AFIS II to Prepare 1099 Forms . . . • . . . . . • . . . . . . . . . . . . . . . . . . . • . . . . • .• 84
Discounts and Penalties ..•............................................ 86
ARIZONA DEPT. OFUBRARY
ARCHIVES & PUBLIC RECORDS
JUL 241998
STATE DOCUMENTS
DEPARTIENT OF ADMINlSTRAnON
PROJECT SUM
TABLE OF CONIENTS
GInMI 81M- QMeIgn
State Vehicle Use . • • • . • • • • . . • . . . . . • . • . . . • • . • . . • . • . . . . . . . . . . . • • . • . • . . . • . . . 89
DOA Fleet MaIntenance Control. ....................................•....... 104
Motor Vehicle Fuel Costs 109
Procurement and Motor Vehicles ....•.•.........•........•...•........•..... 112
Print Shops ......•...•.•...•.......•..••........•...............•...•. 115
.............. PIuWnn
Centralization of Statewide leasing 127
Buldlng Inspections .•.......................•........................... 133
DIIa ' bwamn DMsIon
Telecommunications Charges 135
DMD Support Center ..........................•......................... 142
Computer Project Development Model 147
Equipment/ Software Acquisition System , •.. 149
Data Management Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . .. 151
DOA Mission ..........................•................•.............. 153
Transfer CapItol Police to DPS .........••.................................. 156
CapItol Police Staff - Special AssIstant 164
Director's OffIce - ProgramjProject Specialist ..•.•.••...•.••.•....•............ 166
Special AssIstant to the DIr8ctor ...............••........•..•••..•.......... 169
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DEPARlUENT OF ADMNSmATlON
PROJECT SUM
TABLE OF CONTENTS
EXHBfTS
1. Project SUM Interview list 12
2. SUnvnary of TIlles & SavIngs •.•..•...••••••.•.••.. ~ . . . • • • . • • . . . • . • . • . . • • • . • . 16
3. Implementation Schedule ..•.•...•.•..•••••••..•.•••..........•••..•.•.•••. 19
4. Department of Administration ( DCA)
- Present Organizational Structure . . • • . . . . . . . . . . • . . . . . . . . . . . . • . . . . . • • . . 21
5. Department of Administration ( DCA)
- Proposed Organizational Structure ...........•....••........•.....•.. 22
6. State Procurement OffIce - Present Organizati0nai Structure .....................•.. 23
7. State Procurement OffIce - Proposed Organizational Structure • . . . . . . . . . . . . . . . . . . . . • . 24
8. Risk Management DMsion - Present Organizational Structure .................•...•• 25
9. Personnel DMsion - Present Organizational Structure ............•.........•...... 26
10. DOA Finance DMslon - Present Organizational Structure . . . . . . . . . . . . . . . . . . . . . . . . . • • 27
11. DOA Finance DMslon - Proposed Organizational Structure 28
12. General Services DMslon - Present Organizational Structure . . . . . . . . . . . . . . . . 29
13. FacUlties Management DMslon - Present Organizational Structure 30
14. FacUlties Management DMsIon - Proposed Organizational Structure. . . . . . . . . . . . . . . . . . . 31
15. Information Systems and Planning - Present Organizational Structure ............•.... 32
16. Data Management DMslon - Present Organizati0nai Structure ...•.•.................• 33
17. Data Management DMslon - Proposed Organizational Structure 34
18. Risk Management DMslon. Loss Claims History . • . . . • . • . . . . . • . . . . . . . . • . . . . . . . . . . • 62
19. ProposedReauItmentP~ .•.••.••.•.••.•..•••........•.••..•...••.•..•• 67
20. Calculation of Discount Lost ..•••••.•••...•.•....•...•...•.•..••....•..•..•. 88
21. Sample Survey of State Agency Vehicle Fleet 108
22. StatewIde Printing - Current Annual Production • • • • . . • . • . . • . • . . . • . . • • • . • • • . . . • •• 121
23. Survey of Expenditures for · Outside · Printing Services .••....•..•••.•.•........•.. 122
24. Printing Resources •..•.......•••....•.•..••..•.•......•..•.......•.•.•.. 123
25. Flat Une Printing Cost & Delivery Study 124
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DEPARnENT OF ADIINSTRA110N
PROJECI'SUM
TABlE OF CONTENTS
26. Job Breakdown ( ApproxImate) ••••••••••••••••••••••••••••••••••••••••••••• 125
27. DCA ConeoIIdated Print Shop - Prapoeed 0rganIzatJ0nII Strucbn 126
28. DMD Support Center - Pr8Ient 0rgInIzatianII Structure 145
29. DMD Training Center - Prapoeed 0rganIzatJ0nII Struct& n .......•................. 146
30. CapItol Police - Pr88ent Organizational Struct& n ........•....•.................. 161
31. CapItol Police - Proposed 0rganIzatI0rW Structure ••••••••••••••..•......•..•••• 162
32. CapItol Police - Summary d SavIngs - Personnel Reductions 163
APPENDIX
Cornrnodltles Flow Chart Appendix A
SPO Professional ServIces Flow Chart Appendix B
DOA Requisition Process Flow O1art Appendix C
DOA Personnel Application Process Flow Chart .....................•.......... Appendix 0
DOA Reel Management OffIce Work Order/ Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . .• Appendix E
DEQ Purchase Orders ................•...•.........•...............•.... Appendix F
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July 2,1992
Mr. J. Elliott Hibbs
Director
Depertment of Administration
1700 W. Wuhlngton
Phoenix, ArIzona
Dear Mr. Hibbs:
The Governor's Project SUM review of your agency has been completed, and the project team Is
pleased to present you with this summary of our findings and recommendations. The study was Initiated
November 1, 1991 and the field work was completed approximately May 21, 1992.
This summary restates the objectives of the review, the approach which was used, and highlights the
major changes recommended as a result of the study. It quantifies the potential benefits for your agency
and summarizes the key Implementation actions and legislative support needed to convert the potential Into
actual benefits. The summary Is followed by the detaUed findings and recommendations.
In total, the recommendations identify approximately $ 15 mIllen In benefits to the citizens of ArIzona.
OMCT1VES & GOALS
The overall objective of this study was to find ways to Improve the delivery of services by the ArIzona
Department of Administration ( DOA). Thepswere to Improve the process of delivering services and
reduce the cost of government whenever and wherever possible. Impediments to prompt and effective
services were to be identified and removed, and structures established which support the long term goal
of continuous Improvement throughout the agency.
DOA Is unique among the agencies reviewed by Project SUM for three Important reasons. First, Its
· customers · are only other state agencies. Second, DOA has several major unrelated functional missions,
ranging from Personnel, Purchasing, FacUlties Management, and General Services, through Finance, Data
Mr. J. Slott Hibbs. Director
Department of Administration
Page 2
Man8gement and Risk Management. third. It was created bythe Leglllllbn to have a dual role of providing
IINIce to agencies and providing control in each of ita functions to 8I1IUre policy compliance. This dual
role reUts in stI'OI' 9Y differing perceptions of quality performance.
DCA 1888 . opportunIties where benefits to the State can be achieved by Incr8Bsing control through
CIIltrellzJtlnn of functions to reduce costs and Improve policy compliance.
Agencies 888 opportunities for benefits through dlClDtrlllzation of functions to reduce cycle time.
1mprtW8 quality and reduce costs.
Ultimately. the nexus of this paradox Is that, the legislature holds the Governor accountable when any
lack of control by DOA or an agency causes embanassment or financlai loss to the State. whle there Is no
recognition or reward for Improved seryIce. In fact. It Is likely In todays culture that even If DOA reduced
the cost of a service such as pUrchasing on a per- Item basis. agencies would buy more Items rather than
revert funds at the end of a fiscal year. Thus. there Is IlltIellkeilhood that an actual savings wli be achieved.
Therefore. when DOA must choose between control or service there Is a strong tendency to d* uIt to
control.
Against this background. the team's objective was to develop practical and Implementable
reconvnendatlons which balance these conftlcting priorities In a way that Improves service or reduces cost
without reducing control, or Improves contro! or reduces cost without reducing service.
We nMewed the shelf data from the Department to understand the mls8ion. responsiblltles, and
worId_ s. Over 150 interviews were conducted with selected managerial, supervisory. and dericaJ staff.
We ob8erved work activities. computer system use. and obtained either actual or 8ItImated work
measurement standards for the processes which were nMewed. We discussed procedural findings with
work center managers and supervisors.
exhibit 1 lists the Individuals we contacted during the review. Many of these Individuals were
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Mr. J. elliott HIbbs, Director
Department of Administration
Page 3
contacted more than once to confirm our understanding of their .... of reeponsIbIlty and to dl8cu88 the
feaIbIlty of proposed process changes and ItrUetUreB.
The PI' 888f1t Organizational Structure of each division 88 It was presentid to us at the time of the
review Is presentid In ExhIbIts 4- 17. Numerous 0rganlzatlonai changes may have 0CCUIT8d In DOA since
the Inception of our review.
SUmmary of Findings and Benefits
The following sections summarize our recommendations In each of the major DOA functional areas
reviewed by Project SUM:
• State Procurement Office
• Risk ManagementDMslon
• P~ nn_ DMslon
• Finance Division
• General Service DMslon
• Data Management DMslon
• FacUlties Management Division
Many of the recommendations were developed from examples provided by DOA or an agency.
Considerable care was taken to understand both the DOA and agency perception of the Issue, but It was
not practical to review all recommendations with all agencies. Further, extrapolating data from limited
samples, and the unavaIabIIlty or unreIlabllty of state- wlde data resUts In an approximate quantlftcatlon of
total benefits.
In addition to the specific actions recommended In the functional .... of DOA, we recommend a
new paradigm for the DOA/ Agency relationship which seeks to resolve the service/ control paradox using
a total quality partnering approach. ThIs approach recommends developing written one year service
contracts belween DOAand each agency. Where DOAagrees to d_ egate authority to an agency to provide
Its own services, the agency would agree to provide monthly performance measure reporting and
demonstrate quality compliance with policy. Where DOA agrees to provide service to an agency, service
performance measures would be agreed upon.
Mr. J. Slott Hibbs, Director
0epIuIment of Administration
Page 4
ConaI8tent with this concept, DCA woUd tranIItIon to an organI2atIon structure which separat88 the
eervice component from PlannIng, Policy & Training and Compliance activities. The detaled DOA Mission
recommendation deacrlbes this concept.
We believe It wi be necessary for DCA to begin with the implementation of the BpecIIc
recommendatIona first to demonstrate It8 ablity to provide quality 88NIces. Then the contract concept can
be plot tested and expanded. ThIs process can evolve ItaI'tIng about 8Ix months after implementation
begins and be In place In one year.
StatePr0curem8ntOff! ce
In the State Procurement OffIce we have made recommendations to reduce the cost of both
establishing state contraet8 and the cost of the commodities and I8I'Vices purchased, enforcement of
purchaalng polley, and training of state agencies In procurement procedures.
Reductions In the cost of establishing state contraet8 wli be achieved by:
• Revising the State Procurement Code to Increase the dollar amount for which a formal RFP
process must be used from $ 10,000 to $ 25,000
• Revising the statutel pertaining to the public notice of an Invitation to bid.
Reductlon8 In the cost of obtaining goods and 88t'YIce8 wli be achieved by:
• Revising the delivery terms on the 8b1t8W1de contraet8 for commodities to provide for cost based
delivery charges on orders outside of the Phoenix and Tucson metropolitan 8I' 8IS
• SegregatIng the costs of commodities, delivery, installation, training, maintenance, and other
services on state contraet8 In order to eliminate the payment of county and local 88188 taxes on
non- taxable components of the contract
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Mr. J. Elliott HIbbs, Director
Department of Administration
PageS
• Developing an Internally generated Vendor Usage reporting system In conjunction with AFlS II In
order to provide the SPO with the tools to negotiate with vendors and eliminate the reliance on
the vendors to provide usage reports to SPO.
Risk Management PMsIon
Establishing a loss threshold of $ 5,000 for selected property 108888 currently covered by Risk
Management, wII result In an 85% reduction of Internally processed property claims. This wli allow for the
claims currently processed by outside processing services to be handled In house at a savings of
approximately $ 238,000.
Personnel DMsion
In the Personnel Division we made a number of recommendations that wli Improve service by
reducing the time It takes to hire a state employee. In some cases, the reduction may be as much as three
weeks. Specific recommendations Include:
• expanding the use of open continuous announcements with the potential of savings 7,500 weeks
of waiting time per year
• Allowing APMS offices ( personnel Division managed offices located at larger agencies) to
generate - HIring Usts- when avaBabIe
• Eliminating the delay period between the time applications close and they are scored. This delay
can be as long as one to one and one half weeks.
In addition, we recommend utllzIng outside temporary agencies to provide temporary secretarial and
clerical help to agencies rather than the Internally managed clerical pool. ThIs recommendation could result
In a savings of approximately $ 1,000,000. Personnel Division Management has expressed a desire to begin
Implementing our recommendations Immediately.
Mr. J. elliott Hibbs, Director
Department of Administration
Page 6
The Personnel Division has begun a program to decentralilf recruitment of agency specific positions
to the larger agencies with - APMS" ofIIces. WelUPPOrt this program and encourage the expansion of this
program.
Aapart of our nMew of the Personnel DIvIsIon we dI8CII888d the division'. plana for automation. We
support these plans and feel that there are many beneftts that Y « Ud be .... Ized through the use of a
modem data proc88IIng technology. Included In th8a8 plana are use of imaging technology for the
processing, storage, and distribution ( to agencies) of employment appIlcatIona which wi provide the
following benefits:
• Eliminate the handling of the estimated 125,000 applications that are received annLBIly
• Eliminate the photocopying of applications by utllzlng the imaging system to distribute
applications to the hiring supervisors through the system
• Allow for on screen scoring of applications thus eliminating the need for data entry performed by
support personnel
• Eliminate the fling of applications by personnel.
The following Issues should be considered for further study:
• Use of an on- lIne requisitioning system, whereby employment requisitions are forwarded
electronically to the Personnel Division - system- from agencies
• Changing employment applications to allow an applicant to apply for nUtIpIe positions on an
application
FInance Plvlslon
WIth the Implementation of the AFIS II system on July 1, 1992 there wUl be significant changes In the
work performed by the Anance Division. We identified two areas where the workload wUl be eliminated
through the use ofa modem on line system, and made recommendations to eliminate the affected positions.
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Mr. J. elliott Hibbs, Director
Department of Administration
Page 7
We believe that the new on- line financial system w111ncreae the productivity and efficiencymthe finance
Division. Awork measurement system shoUd Implemented to determine the effectsmthe new system on
productivity and determine stafftng requirements.
State agencies are not taking advantage ~ discounts aff8r8d by vendors for paymentminvoices
within specific discount terms. An estimate m approximately $ 381,000 could be saved by expediting
processing of invoices from vendors that offer discounts.
General Services pMslon
We recommend consolidating nine of the State print shops Into two. ACt would remain at the ASP
PerryvUle complex, and DOA would be consolidated Into one location. This wli result In anticipated annual
savings of $ 474,000.
As the State moves forward In upgrading fueling stations for environmental reasons, we recommend
Installing card- lock systems at major locations throughout the State. We have conservatively estimated
annual savings at approximately $ 190,000.
Our analysis has confirmed that much of the State fleet Is not controlled. We are recommending a
centralized control of the entire State fleet, with analysis of fleet needs, a tightening of policies and
procedures, and reduction of the old fleet vehicles, saving an estimated $ 3,462,000.
We recommend the following areas be considered for further study:
• Privatization of landscaping for the capitol Mall
• Increasing the amount of " Zero- Scape. ( Desert landscaping) In the capitol Mall
• Utllzatlon of Inmates for certain landscaping tasks
Mr. J. eliott Hibbs, DIrector
DepertmentmAdrnlnl8tratlon
Page 8
We I' 8COI1' VMf1d a reetructuremthe DMD Support c. aer to became a more focu8ed and eIfecIIve
trBir* Ig cner whIe reducing labor COII8 by $ 112,000 per ,. r and avoiding fling vacancies Vllued at
$ 114.000 per ,. r.
We 8180 I' 8COI1' VMf1d creating two tep8I'IIte eectIons from the editing Data Management DIvIsIon.
ThIs reetrueturing wi provide a more functIonIIIy approprtate and reeponeIve organization whIe eliminating
duplication between the currn Data Management DIvIsIon and Information Systems and Planning.
We have identified the need for addltlonll · controlmthe teIecommunIcatI network. M.... mthe
syatem, coupled with a variety mather IIsues ouIIlned In this report are costing an 8Xb'a $ 2.8 milan
annuBly.
EacH"'" Management DMslon
We recommend centr8llzIng alileuing aet1v1tie8 for prtvate oIfIce space In the Faclltles Management
Division. this woUd be accomplished through the establishment ma core mcurrently existing state
employees with the necessary fill estate background, supported by a group m cornmerclll fill estate
brokers that have been leIected by RFP. SavIngs are estimated to be In 8XC888m$ 2 milan ann&. 8Ily.
Wel' 8COl1' VMf1d tranIferrIng rnanagernentmCapItol Police to DPS. WIth Improved rnanagernent and
schedUlng, along with shared adrn1n1strat1v8 dutlee. anticipated benefits approximate $ 780,000 annually.
GIDMII 0beenmtlone
As the t88m commenced Its study the DepIrtment mAdrnlnl8tratlon was under the direction m
anott. individual. We undntand that at this time you have any been at the helm for a few months.
During the COUI'I8 mour nwI8w your pr8CIecllSOf hid made continuous organIzatIonBI chInges to the
depertment.
The team's recommendations, and the accompanying exhibits which describe them, are baled on
the 8Ib. BtIon as It existed at the timemthe interviews and anaIyIes. Some of the recommendations which
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Summary of SayIngs
ExhIbit 2, DOA Summary of TItles and SavIngs, 8howB the Impact of each of the recommendations,
reduction of present costs and the avoidance of future costs. The magnitude of each Is:
$ 1,248,778
13,850,047
' 15' 359' 725
$ 750,000 of this total are one- tIme savings
DOA Colt Reduction
Other AgencIes Colt Reduction
Colt Avoidance
Total
Implementation leadership wi d8tMnlne the achI8v8ment of maximum 88VIngs by putting In place
the concept8 proposed In this document
Mr. J. Elliott Hibbs, DIrector
DepartnW1t of Admlnl8tration
Pages
are being 8UbmItled by the Project TIIJn are II..- dy In the prDceu of being 1mpIerneruc: t. 0Ihera may be
8Iter8d In the final 8I1IIyIIs becau8e the CQI' 1t8) ct of the recommendIIIIan have been changed 8Ince they
were prepared.
The proposed Organizati0nai Structure, which 8howB the structure of DOA following the
implementation of these recommendations, Is Included In the exhibits. This structure Is consistent with the
recommendations, but Is not the only possible structure which csn achieve the Improved service and
benefits. Actual structures wli be finalized 88 the recomrnendatIon are Implemented.
Implementation Is the critical Itep In the process of achieving 88VIngs. PatentIII 88VIngs are often
identified but not achieved when the implementation process Is distracted by day to day activities. and
managers shy away from the necessary reduction In Itaff. Successfullmplementatlon8 are marked by two
things; a strong commitment from a .. llor management to achieve 88 much of the 88VIngs 88 proves
possible; and designation of implementation team le8ders with the requisite mental toughness to He the
task through to completion.
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Mr. J. Elliott Hibbs, Director
Depertment of Administration
Page 10
The Implementation process Is best carried on soon after the review process. ThIs maintains
momentum whle topics are fresh In people's minds. We estimate that most of the recommendations
conIaIned In the report can be Implemented within a period of 12 months.
Some recommendations however may require up to 8 months. and a few requiring statutory
amendments may take longer.
Our recommended Implementation Plan In exhibit 3 shows an implementation sequence and
approximate duration for each recommendation. Adetaled plan wli can be established at the outset of
ImpBnentatlon.
There are three major components of cost associated with implementation. These are typically
one- time costs and represent a reduction In first year beneIIts. They Include the costs of current employee
time during Implementation, outside assistance, and employee nHteployrnenl Outside Implementation
assistance can significantly Improve the total value of beneftts achieved, the probabIlty that beneftts wli be
achilMld, and can reduce the total time necessary to achieve implementation through the use of focused,
dedicated resources. These costs depend on the total scope of the assistance requested, and are not
Included In this Individual agency report.
* * * * *
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Mr. J. elliott Hibbs, Director
Department of Administration
Page 11
We wish to thank you as the DIrector c: A DOAand your entire staff for their complete cooperation,
partIcJpatIon, suggestions and comments and support c: A our eIforta during this study.
We appreciate the opportunity to be c: A BVIceto the Governor and the SUM SteerIng Committee
In this endeavor. ShcUd you have any questions regarding this report please feel free to contact the Project
ExecutIve or any member of your Project Slim Team.
Julie Bahavar, Department of Transportation
Joe Dean, Department of Commerce
BUI Hernandez, Department of Economic Security
Beverly Francy, State Land Department
Phyllis Knox, Department of Health Services
Paul Donovan, Department of Environmental Quality
Carl Jager, Department of Transportation
Mel Utzenberger, Coopers & Lybrand
Ray Kurkjy, Coopers & Lybrand
David St. John
ExecutIve Director
Project SUM
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PROJECT SLIM INTERVIEW LIST
Department of Administration
Name Title Actual
Tony West State Treasurer 11/ 1191
Tim Boncoskey Budgetmalyst: OSPB 11/ 1191
Tobin 8t Mgt Team Dir 8t Mgt 11/ 6/ 91
David Borg Group Admin: Mgt Services lln/ 91
Lee Baron Deputy Director 11/ 8/ 91
Brian Donnelly Special Assistant 11/ 12191
Rob Rocha A. D: FiDanc: e Division 11/ 12191
Ben Froelich A. D: Data Mauagement 11/ 13/ 91
Gene Vitetta A. D: General Services 11/ 13/ 91
Margaret McConnell Mgr: State Purchasing Office 11/ 14/ 91
Steve Conner A. D: Facilities Mauagement 11/ 14/ 91
Alicia Sterna A. D: Risk Mauagement 11/ 15/ 91
Kathleen Peckardt Mgr: Mgt Svcs - Procurement 11/ 18/ 91
Pitcairn Analyst: JLCB . 11/ 18/ 91
Louise Battaglia Dir Off: ProgramlProj Specialist 11/ 18/ 91
Alberto Gautier Dir Off: Special Assignments 11/ 19/ 91
Edward Gulli Mgr: Mgt Svcs - AFIS IT Project 11/ 19/ 91
Jack Jones Mgr: Mgt Svcs - Finance 11/ 19/ 91
Bill Bell A. D: Personnel 11/ 20/ 91
Mike Norman Mgr: Mgt Svcs - Info sys/ plan 11/ 20/ 91
Linda Turner Asst Mgr: MgtSvcs - Purchasing 11/ 21/ 91
Ruth Holeman Adm Sec: Mgt Svcs Purchasing 11/ 21/ 91
Ruth Johnston Clerk Typist ill: Mgt Svcs Purch 11/ 21/ 91
Lorinda Goodman Secretary: Mgt Svcs Purchasing 11/ 21/ 91
Ruth Holeman Adm Sec: Mgt Svcs Purchasing 11/ 21/ 91
Jeff Hesenius Mgr: Mgt Svcs - DOA Budget 11/ 21/ 91
Earl Painter Buyer ill: Mgt Svcs - Purchasing 11/ 21/ 91
Missy Oates Buyer U: Mgt Svcs - Purchasing 11/ 21/ 91
William Taylor Chief: Capitol Police 11/ 22/ 91
Heishman DOA Mgt Svcs: Human Resources 11125/ 91
Allen Bogan SPO: Assitant Administrator 11125/ 91
Bob Stephenson SPO: Administrator - Pro Svcs 11/ 26/ 91
Robert Descheemaker SPO: Administrator - Commodities 11/ 26/ 91
Frank Dukarm DOA Mgt Svcs: IS8tP Mgr 11/ 26/ 91
Alice Clarkson SPO: Adm Sup Supv - Sup Svcs 11/ 27191
Paula Davidson SPO: IPS Supv - Support Svcs 11/ 27/ 91
Linda Donaldson SPO: Contract Off, Prof Svcs 11/ 27/ 91
William Bell A. D: Personnel 12/ 02/ 91
Judy Henkelman AZ State Personnel Board: Exec Dir 12/ 03/ 91
Wendy Winkelman SPO: Contract Off, Commodities 12/ 03/ 91
Richard Valdivia Purchasing Mgr Dept of Ed 12/ 03/ 91
Maggie McConnell Mgr: State Purchasing Office 12/ 04/ 91
Beau Grant ADOT: Procurment Mgr 12/ 04/ 91
DOA - 12
EXHIBIT 1
1 OF 4 PAGES
PROJECT SLIM INTERVIEW LIST
Department of Administration
Name Title Actual
MibMetko DOR: Admin Svcs Officer 12105/ 91
Robert Descheemaker SPO: AdmiJiistrator - Commodities 12105/ 91
JohaBogert ADOT: Procurement Mgr 121OS191
J. McCoDnell SPO: Contract Off, Commodities 12105191
BeD Goodman DES: Procurement Mgr 12105191
Bob Pierson SPO: Ad. DUns Comp Info Sys 12105/ 91
C. Egleston SPO: Contract Off, Commodities 12105191
Bob Pierson. SPO: Ad. DUns Comp Info Sys 12106191
BoauGrant ADOT: Procurment Mgr 12106/ 91
June Vance SPO: Contract Officer 12110/ 91
Carmen Eggleston SPO: Contract Officer 12/ 12/ 91
Carl Kohler DOA: Accounting 12/ 13/ 91
Bill Munch SPO: Contract Officer 12/ 13/ 91
Magie McConnell Mgr: State Purchasing Office 12/ 16/ 91
Bob Stephenson SPO: Administrator - Pro Svcs 12/ 17/ 91
Loretta Cassidy SPO: Contract Officer 12/ 17/ 91
Robert Descheemaker SPO: Administrator - Commodities 12/ 18/ 91
Bob Stephenson SPO: Administrator - Pro Svcs 12/ 18/ 91
AIlea Bogan SPO: Assitant Administrator 12/ 18/ 91
LiDda Turner Asst Mgr: Mgt Svcs - Purchasing 12/ 19/ 91
Robert Descheemaker SPO: Administrator - Commodities 12/ 19/ 91
Bob Stephenson SPO: Administrator - Pro Svcs 12/ 20/ 91
US West Procurement division 12120/ 91
Debra Van Alstine DOA Fin: Acct Tech ill 12123/ 91
Marietta Montoya DOA Fin: Acct Sup 12/ 24/ 91
Wendy Hammond GAO: Asst State Comptroller 12/ 24/ 91
Peter Vazquez DOA Fin: Fis Ser Sup ill 12/ 27/ 91
KJiDl Tegland DOA Fin: Fis Svs Mgr ill 12/ 27/ 91
Sam Pignato Risk Mgt: Admin Mgr 12130/ 91
Steve Fotinos Risk Mgt: Manager - Claims 12130/ 91
Joan Jackson Risk Mgt: Supervisor - Claims 12131191
Julia Lewis Risk Mgt: Mgr - Loss Control 12131191
Sam Pignato Risk Mgt: Admin Mgr 1/ 2/ 92
M. Thompson Risk Mgt: Mgr - Acctg 112192
Viqil Bell U. S. West Purchasing 1/ 2192
BartGubrud Risk Mgt: Proj Leader - EDP 112192
Julian Lewis Risk Mgt: Mgr - Loss Control 112192
B. Nyggard Risk Mgt: Mgr - Insurance 1/ 10/ 92
DiaaaShaw American Express Credit Card Group 1110/ 92
Al1alBogen SPO: Assistant Administrator 1115/ 92
Jim Martin Diners Club Travel Card 1/ 16/ 92
TOllY Gonzalez Lieuteilant- Capitol Police 1/ 21/ 92
Carol Defanzio GOA: Unit Super 1122192
DOA - 13
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PROJECT SLIM INTERVIEW LIST
Department of Administration
Name Tide Actual
David Lofgren LieutoDant< apitol Police 1124/ 92
Thomas Whetten Ueutenant< apitol Police 1/ 27/ 92
Cecilia Dahl Pen: Program Mgr 1/ 27/ 92
Paullette Hausler Risk Mgt: Fscl Srvc Specialist 1/ 28/ 92
Jayne Brown Risk Mgt: Act Tech n 1/ 28/ 92
Louis Casterio Risk Mgt: Act Tech n 1128/ 92
Dan Wheeler Risk Mgt: Acct Tech I 1128/ 92
FrankUu Pen: Mgr IV 1/ 28/ 92
Karen Keller Risk Mgt: Claim Adjusterm 1129/ 92
Tonie Griffin Pen: Mgr I 1/ 29/ 92
Dolores DeBaca Gen Sves: State Boards Admin 1/ 29/ 92
Ed Neary Pers: Mgr I 1/ 29/ 92
Allan Boone Gen Sves: Fleet Administrator 1130/ 92
Faye Miles Pen: Prgrms Spc Asst 1130/ 92
Lisa Oster Pen: Analyst 1131/ 92
Diane Whedey Gen Svcs: Admin 1131/ 92
Martha Chambers Pers Prog & Proj Spec n/ e 1131/ 92
Margaret Guerra Pen: Admin Asst n 213/ 92
AI Quintanilla Pers: Analyst 213/ 92
Rosie Martinez Pen: Info Proc Spc m, ss 2/ 4/ 92
LulaSharp Pen: Info Proc Spc m, SS 2/ 4/ 92
Irene Fernandez Pen: Clerk Type n, SS 2/ 5/ 92
keith Orr GAO: Fiscal Svs Cent Ops 2/ 4/ 92
Paul Ong Pen: Admin Serv. Officer n 2/ 4/ 92
Tammie Ecckloff GAO: Fiscal Svs Spec n 2/ 5/ 92
Ken Sullivan Data Center: Buisness Manager 2/ 5/ 92
Charlie Voss GAO: Admin Service Officer n 2/ 6/ 92
Doug Yeskey GAO: Fiscal Svc Sp V 2/ 6/ 92
Deannie Leader Facil: Buisness Manager 2/ 6/ 92
Sean Kendell GAO: Fiscal Svc Spm 2n/ 92
K. ris Rowan RMD: Insurance Aaalystm 2n/ 92
Margaret McConnell Mgr: State Purchasing Office 2n/ 92
Vicki Thomas RMD: Admin Assist n 2/ 12/ 92
Dick Collamer RMD: Special Assistant 2/ 12/ 92
Joni Mazon
.
RMD: Admin Serv. Officerm 2/ 13/ 92
Sam Pignato RMD: Admin manager 2/ 13/ 92
Gene Cirzan RMD: Insurance Aaalystm 2/ 14/ 92
Ben Nygard RMD: lDsurance Manager 2/ 14/ 92
Carl Kohler GAO: Fiscal Svs Cent Ops 2125/ 92
Geneva Arthin GAO: Admin Asst n 2/ 26/ 92
Carol Defazio GAO: Fiscal Service Unit Sup 2/ 26/ 92
Wendy Hammon GAO: Adm Svc Offm 2/ 26/ 92
Sam Pignato RMD: Admin manager 3/ 13/ 92
DOA- 14
EXHIBIT 1
3 OF 4 PAGES
PROJECT SLIM INTERVIEW LIST
Department of Administration
Name Title Actual
RaIl Rusch GAO: Fin CODS n 3/ 18/ 92
Tom Young GAO: EDP Sys Pro Mgr n 3/ 19/ 92
Mohammad Kbaskari GAO: Adm Svc Offm 3rJ: J/ 92
Dorthy Ashley GAO: Fiscal Service Mauger 3rJ: J/ 92
Alex Delacruz DMD: Operatioaal Supervisor 3/ 12192
Tom Hinds DMD: Operatioaal Supervisor 3/ 12192
M. Lopez DMD: Tech Support Magr 3/ 12192
Karl Heckart DMD: Data Base Mauger 3/ 13192
T_ ja Schmitt DMD: Data Base Admin Super 3/ 13/ 92
LoeLane DMD: Security Spcl 3113192
George Schoen DMD: Quality Assurance Spcl 3/ 13/ 92
KeaSmith DMD: Data Adminitrator 3/ 13/ 92
Ken Caroli DMD: Support Center Mge 3/ 13/ 92
Cynthia Meyers DMD: EDP Sys proj Ldr 3/ 13/ 92
Bob Brewer DMD: Training Officer 3/ 13/ 92
Herb Fust DMD: EDP Planner 3/ 13/ 92
Jerry Sigman DMD: Tech Support Supv 3/ 16/ 92
Maggie Lopez DMD: Tech Support Magr 3/ 16/ 92
Ken Sullivan DMD: Business and Finance Manager 3/ 16192
DiaDa Sandy DMD: Administrative Support Super 3/ 17192
Jay Nash DMD: System & Programing Mgr 3/ 19/ 92
Larry Beauchat DMD: Telecomm Mgr 3120/ 92
John Allemana DMD: Admin Svcs Officer 3120/ 92
Vernadean Chartrand DMD: Exec. Assistant 3120/ 92
Randy Frost DOA: Surplus Property Mgr 5/ 08/ 92
Diann Whitley DOA: Business Mgr, Business Office 5/ 08/ 92
Allan Boone DOA: Fleet Admin 5/ 11192
Jerry West ADOT: Equip Admin 5/ 11192
Ann Jones DES: Office of Equip & Material, Mgr 5/ 12/ 92
Eugene Vittela DOA: Director, Gen Svc 5/ 12/ 92
Mite Prathers Enterprise Leasing eft Rental 5113192
Allan Boone DOA: Fleet Admin 5/ 15/ 92
John H. Eager ADC: Fleet Mgr 5/ 10192
Diane Whitley DOA: Business Mgr 5/ 10/ 92
Allan L. Boone DOA: State Fleet Admin 5/ 11/ 92
Jerry West ADOT: Equip Admin 5/ 11192
Eugene Vitetta DOA: Asst Director 5/ 12192
Alberta Reed DEQ: Fleet Mgr 5115/ 92
Michael C. Prather AcctMgr 5120/ 92
Pat Curtis Admin Serv Officer 5120/ 92
ADnlones DES: Manager 5/ 14/ 92
Allan L. Boone DOA: State Fleet Admin 5/ 15/ 92
John Adler Game & Fish: Fleet Mgr 5/ 20/ 92
DOA - 15
EXHIBIT 1
40F4PAGES
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---~~~-~-----------
DEPARTMENT OF ADMINISTRATION SUMMARY OF TITLES & SAVINGS
EXHIBIT 2
1 OF3 PAGES
.,. CIt
DOA Other Agency FTE FTE Vacant
Title savings Savings Avoidance Total OOA Other FTE
State Procurement Office
Increase in Bid Ceiling 58,000 348,000 406,000 2 12
Statewide Delivery of Commodities 3,060,000 3,060,000
Taxation of Contract Purchases 60,000 60,000
Enforcement of Procurement and Regulations 0
Off- Contract Purchase Authorization 0
Procurement Training 0
Public Notice of Procurement services 4,000 4,000
Usage Report 0
Delegate DOA Purchasing Authority 0
0
Risk Management Division 0
0
Change Loss Threshold to $ 5,000 237,953 237,953
0
Personnel Division 0
0
Recruitment and Hiring 0
Clerical Pool/ Temporary Employment Services 1,044,000 1,044,000
Open Continuous Announcements 0
Establishment of Hiring List 0
Job Application Evaluation Timing 0
Hire List Compliance and Clearing 0
Supervisor Signature of Hiring List 0
DEPARTMENT OF ADMINISTRATION SUMMARY OF TITLES & SAVINGS
EXHIIT2
2OF3 PAGES
, ­...
DOA Other Agency FTE FTE Vacant
Title Savings Savings Avoidance Total DOA Other FTE
0
Finance Division 0
0
Eliminate Requirement To Forward TC- 50 Form to GAO 58,200 58,200 3
Design AFIS " to Prepare 1099 Forms 49,000 27,900 76,900 2
Discounts and Penalties 381,000 381,000
0
Gen~ ual Services Division 0
0
State Vehicle Use 2,632,500 2,632,500
DOA Fleet Maintenance Control 641,187 641,187
Motor Vehicle Fuel Costs 189,360 189,360
Procurement and Motor Vehicles 0
Print Shops 474,000 474,000 12
0
Facilities Management Division 0
0
Centralization of Statewide Leasing 2,108,000 2,108,000
Building Inspections 31,550 31,550 1
0
0
Data Management Division 0
0
Telecommunications Charges 2,800,000 2,800,000
DMD Support Center 112,000 114,000 226,000 5 3
----~--------------
----~--~-----------
DEPARTMENT OF ADMINISTRATION SUMMARY OF TITLES & SAVINGS
EXHIBIT 2
3OF3 PAGES
DOA Other Agency FrE FTE Vacant
Title Savings Savings Avoidance Total DOA Other FTE
Computer Project Development Model 0
Equipment/ Software Acquisition System 0
Data Management Organization 0
0
General Recommendations 0
0
DOA Mission 0
Transfer Capital Police to DPS 661,300 119,000 780,300 30 8
Capital Police Special Assistant 52,275 52,275 1
Directors Office Program Project Specialist 35,000 35,000 1
Special Assistant To The Director 61,500 61,500 1
~ One Time Savings
• .. Total Rrst Year Savings
CD
Total Annual Savings
$ 1,248,778 $ 13,850,047
$ 750,000
$ 260,900 $ 15,359,725
$ 14,609,725
46 24 11
EXHIBIT 3
DOA IMPL( PERMEELNITMAITNIAONRYS) CHEDULE 1OF2 PAGES
MONTHS
TITLE 1 I 2 I 3 1 4 I 5 I 6 I 7 I 8 I 9 I II III I 12 113 1 14 I 15 I 16 I 17 I 18 I 19 I 2. I 21 I 22 I 23 I 24
STATE PROCUREMENT OFfiCE
INCREASE IN 81D CEILING J
I I I I I I I I I I I STATE- WIDE DELIVERY OF COMMODITIES :-
TAXATION OF CONTRACT PURCHASES
I I I I I I I I I I I ENfORCEMENT OF PROCUREMENT RULES & REGS
I I I I I
OFf- CONTRACT PURCHASE AUTIIDRIZATION
I I
PROCUREMENT TRAINING
I I
PUBLIC NOTICE Of PROCUREMENT SERVICES
I I
"'*- REPORT
I I I I I
DELEGATI DOA PURCHASING AUTIIDRITY
, I I I I
RISK MANAGEMENT DIVISION
CHANII LOSS THRESHOLD TO $ 5 ....
PERSONNIL DIVISION
RECRUITMENT AND HIRI.. PERSONNEL DIVI510N I I
CLERICAL rooL/ TEMPORARY EMPLOYMENT SERVIC
I I I I I I I I OPEN CONTINUOUS ANNOUNCEMENTS
I I
I I
ESTABLISHMENT OF HIRING LIST
I
JOB APPLICATION EVALUATION TIMING
I
HIRE LIST COMPLIANCE AND CLEARING
I
SUPERVISOR SIGNATURE Of HIRING LIST
fiNANCE DIVISION
ELIMINATE REQUIREMENT TO fORWARD TO GAO
J
I I I OESlllM MIS II TO PREPARE 1'" fORMS
I I I I I
OISCOUNTS AND PENALTIES
I I I I I I I I I I I
. I.. ( D
- .. - - - - - - - - - - '. - - - - - -
- - - - - .. - .. - - - - - - - - - - -
EXHIBIT 3
DOA IMPL( PERMEELNITMAITNIAONRYS) CHEDULE 2OF2 PAGES
IIONTHS
TITLE 1 I 2 I 3 I 4 I 5 I 6 I 7 I 8 I 9 I 1. I 11 I 12 I 13 I 14 I 15 1 16 117 118 1 19 12' I 21 122 I 23 I 24
GENERAL SERVICES DIVISION
STATE VEHICLE USE
I I I I I I I I I I I
DOA FLEET MANAGEMENT CONTROl
I I I I I I I I I I I
MOTOR VEHICLE FUEL COSTS
I I I I I I I I I I I
PROCUREMENT AND MOTOR VEHICLES
I I I I I I I I I I I
PRINTSHOPS
FACILTIES MANAGEMENT DIVISION
ClWTRALIZATION OF STATEWIDE LEASING I
I I I I I I I I
~ ILDI" INSPECTIONS
DATA MANAGEMENT DIVISION
TELECOMMUNICATIONS CHARGES
I
OND SUPPORT CENTER
I
COMPUTER PROJECT DEVELOPMENT MODEL
I
EQUIPMENT/ SOFTWARE ACQUISITION SYSTEM
I I I I I
DATA MANAGEMENT ORGANIZATION
GENERAL RECONIlENDATIONS
I
TRANSFER CAPITOL POLICE TO DPS
I
CAPITOL POLICE SPECIAL ASSISTANT
I
DIRECTORS OFFICE PROGRAM PROJECT SPECIALIST
SPECIAL ASSISTANT TO THE DIRECTOR ~
DEPARTMENT OF ADMINISTRATION
EXHIBIT 4
PRESENT ORGANIZATIONAL STRUCTURE
~
I
N....
D1IlEC1lIl
9J2.5 mAl m'•
•
I
I I I I I
oil'&. ~ IImI'lII& MT& lQI ....... ~ fmL
I 34.5 39 1ll. 5 J7 It
- 1 - IP. rr I
- 1 ~ I 79
H sliP I
- 1 ... z. r I 55
_ r--_~_ Io- o- I_ I-.. oI_:..-.. I_--- I-'--- II-'-------- II------------- - - - - _ Mt: ll
----~--------------
DEPARTMENT OF ADMINISTRATION
PROPOSED ORGANIZATIONAL STRUCTURE
DDlECllIR
". 5 lVrAi. m'• •
I
I I I
Dm ~ I'I! Il! lllIIB. ...... I 34.5 111.5 35
19 II II tw23& 7.5. r I
l..; p. r I I ~ I I 76 I
EXHIBIT 5
DEPARTMENT OF ADWINISTRATION
STATE PROCUREMENT OFFICE
PRESENT ORGANIZATIONAL STRUCTURE
~ 371UfAl. I'l&
3
II I I I
ID - PIRItISu. ~ CXlIIDJTlB sBm IIIIP
I 6 II 6 I
- I M~ S I
H,... l
y .... I 3
EXHIBIT 8
_____ t-- l_....._......-.-------------.--- - - - - - - - -_.
-------------------
~•
DEPARTMENT OF ADMINISTRATION
STATE PROCUREMENT OFFICE
PROPOSED ORGANIZATIONAL STRUCTURE
~ 35 1UTAL FT&
3
... II I I I -~ PIIllI'l! SSICII CDIIlDIlIES sKa lIP
! iEIl¥ JCES
I 6 9 6 I
- i M~ SI
r1~ 1
4 SII'I'lIlI' I 3
EXHIBIT 7
----~--------------
DEPARTMENT OF ADMINISTRATION
PROPOSED ORGANIZATIONAL STRUCTURE
DDlECllIR
". 5 lVrAi. m'• •
I
I I I
Dm ~ I'I! Il! lllIIB. ...... I 34.5 11I. 5 35
19 II II tw23& 7.5. r I
l..; p. r I I ~ I I 76 I
EXHIBIT 5
-------------------
~•
DEPARTMENT OF ADMINISTRATION
STATE PROCUREMENT OFFICE
PROPOSED ORGANIZATIONAL STRUCTURE
~ 35 1UTAL FT&
3
... II I I I -~ PIIllI'l! SSICII CDIIlDIlIES sKa lIP
! iEIl¥ JCES
I 6 9 6 I
- i M~ SI
r1~ 1
4 SII'I'lIlI' I 3
EXHIBIT 7
DEPARTMENT OF ADMINISTRATION
RISK MANAGNENT DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
aIR' 55 1UrM. I" I! a
4 I
I I I I I I
CUJIIS DBIWlCI! UlSS c: ama. .- MXlllIfJM ....,
lXlII'ENSAT1aI
23 • II 4 5 J
EXHIBIT 8
........_ 1-.. 1-... .- 1-._ 1-...................---...- ...-------------- _ - _ lIlll2
-------------------
DEPARTMENT OF ADMINISTRATION
PERSONNEL DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
=: r 111.5 lUTAl. /' lEo
3 I
". 5 15 I, 1
~ MIlJSIElIllS¥ I1CIElASTM lIlI! YMICES ' E&
2 5 , 4
~
-- i~ 6
a; Iir
-- i~ •
".",
~ 1MlSI'llIlTAQIlII
IS
4
I- Q1Ic
5 .', 3 ' ... 4
EXHIBIT 9
DEPARTMENT OF ADMINISTRATiON
DOA FINANCE DIVISION
PRESENT ORGANIZATIONAL STURCTURE
II 14 II t
~ ! iI'! tUI. PlDlIlt1S ,... ~ = ... Me.
• I t
~
EXHIBIT 10
_ .......- ..._ ...... - ---.... -------------- _ _ _ l'IIm
-------------------
DEPARTMENT OF ADMINISTRATION
2
II 14
DOA FINANCE DIVISION
PROPOSED ORGANIZATIONAL STURCTURE
16
•
•
EXHIBIT 11
DEPARTMENT OF ADMINISTRATION
GENERAL SERVICES DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
~
29J
7 I
I I I
"'- II' ' raFLlEIE" T" ~ STAlJ, r ~ 23 ] 7 3 II
~ ....•... 10- ••
( R ~ IlUI. IIDI
164
I--
5
~ lNIlIIMlI: E
QISlUIIAI. ..- - S1lICll IIDI
4
- rill
II
- PIlIImI8
MDl'I8lMllII! 21
. QI. Sl. UI. JAi. - ~
3
IlfAC
L..-
14
EXHIBIT 12
_ .....- 5-- 1_ 1-- 1_:..... 1_-- 1_----.--- 1_. --._ - - - - - - -
-------------------
DEPARTMENT OF ADMINISTRATION
FACILITIES MANAGEMENT DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
EXHIBIT 13
~
I
= w 34.5 1UI'AI. F1k
I
I
I I I I I I
~ SII'l'lIlT ~ STA1II1UIY I'UIIlIM aIfIIda.
2 7 5.5 • • 7
L.. ..... ... _
w-
DEPARTMENT OF ADMINISTRATION
EXHIBIT 14
FACILITIES MANAGEMENT DIVISION
PROPOSED ORGANIZATIONAL STRUCTURE
a= r 33.5 lUrAL F1&
I
I
I I I I I I
ea& lt.. tIRalf ,.,. STAMaIY I'UIIdIlI cxIIM..
2 7 5.5 5 6 7
.....-......- ...__....~....__._-- 4-~...--------------------------- . - __ 16
-------------------
DEPARTMENT OF ADMINISTRATION
INFORMATION SYSTEMS AND PLANNING
PRESENT ORGANIZATIONAL STRUCTURE
_ rr-
PUNNJIlIl 39 1Ol'Al I' 1! a
I
I I I I I I
~ m! IlJS IllS PUNNJIlIlI IRIS ..... 1WNI! II! IIl" ~~ ur
) ) 5 • II •
EXHIBIT 15
,.. tt
DEPARTMENT OF ADMINISTRATION
DATA MANAGEMENT DIVISION
PRESENT ORGANIZATIONAL STRUCTURE
EXHIBIT 18
147.5 16
DATPifcL
1
2
_ ...... ..__-- t_ I--.-__- ---- I- ._ - - - _......
-------------------
DEPARTMENT OF ADMINISTRATION
DATA MANAGEMENT DIVISION
PROPOSED ORGANIZATIONAL STRUCTURE
EXHIBIT 17
MTA
IWtAGEIlENT
ASSISTAIIT
DIRECTOIl 1
237.5 TOTAL PTE.
DCA FIIlAllCE
SERVlCE5
4
ADIUNI5TRATIVE
....---- 1---- 1 SUl'I'OIIT
I
ee- PVTD
OPERATlOllS
MTA
SEItVICIS
DIYlSIOll
76
' 3.5
I
TECllIlICAL
5"' I'OIIT
16.5
STATE
TELE­~
ICATIOllS
39
~ INISTRATIVE
SUI'f'OIT
3
I
USER
SEltVICES AIID
PLAIIIII..
DIVI510ll ..
I
TRAINING
CENTER
7
SYSTEIIS
DEVELOI'IIENT AIID
PR08RAIlNING IS 11
MENCY AIID
STATEWIDE
SUl'I'OIIT 28
I
IITS
5
IIIIIS
11
MIS II
12
INCREASE IN BID < aJNG
Under AR. S. 41- 2501, aU purchases m$ 10,000 and above .... required to be publicly bid In
accantance with the State Procurement Code and applicable rUes and regUations. ThIs means that SPO
rnu& t perform the formII bidding process for aU State agencies with delegated procurement authoritym
$ 10,000 or under. Allmthe agencies with unlimited procurement authority .... also required to follow the
Stale Procurement Code and applicable rUes and reguatlons. The current State Procurement Code was
enacted In 1984, to be effective January 1, 1985. When the $ 10,000 limit was established In the 1884 State
Procurement Code, that Code contained no provision for adJUItment mthe limit In response to 1nIIatIon.
During our review of SPO, we calculated that approximately 9% mall SPO's procurement activities were
directed to solicitations failing between $ 10,000 and $ 15,000, and that an additi0nai 17% of SPO's
procurement activities were directed to solicitations failing between $ 15,000 and $ 25,000.
,....,
SPO employs a staff of 29 people - 15 buyers and 14 support personnel. Fourteen percentmthe
time expended by the buyers and suppon personnel Is devoted to processing solicitations and awarding
contracts between $ 10,000 and $ 25,000. This equates to two full- time buyer positions; and about one full­time
support position. Currently, contracts of $ 10,000 or more can only be awarded through the RFP
process. Contracts of less than $ 10,000 can be awarded through the RFQ process. SPO estimates that
solicitations by RFQ are processed In 17% of the time It takes to process solicitations by RFP.
The Impact of the $ 10,000 bid ceiling extends beyond SPO Itself. State agencies with unlimited
or delegated procurement authority are also required to follow the State Procurement Code and applicable
rUes and regulations. There .... seven agencies with unlimited procurement authority to process and award
conInIcts between $ 10,000 and $ 25,000 through the RFP process. SPO estimates that there Is a greater
expenditure of time at these agencies than at SPO Itself because the agencies have more contracts at this
expenditure level.
DCA- 35
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Aeq..........,..••
We recommend that the State Procurement Code be revised to Increue the $ 10.000 bid celing
to $ 25,000, and to provide for an annual InftatIon- reIat adjustment to the bid cellng.
An IncreBse In the bid celing from $ 10,000 to $ 25,000 wi decreUe the workmSPO by 14.4%.
A reduction of this magnitude wi resWt In savingsm2 Grade 18 buyers with a 88Iary of $ 23.700 each per
year and 23% Employee- Related Expenses for a total of $ 68.000 for SPO. In addition, there wcUd be a
savings at each of the seven agencies with unlimited procurement authority, equal to that of SPO. The
DOC SUM project team has made a recommendation entitled - Procurement Code- that recommends
changes to the procurement code. The savings at the remaining six agencies would be approximately
$ 348,000 ($ 58,000 X6). Total savings resulting from Implementation of this recommendation would be
approximately $ 406.000.
Implementation of this recommendation would require amending ArIzona Revised Statute 41- 2535
to reflect the Increase of the ceDing from $ 10.000 to $ 25,000.
DOA - 36
STAlEWIDE DELJYE8Y OF QOMMODITJES
SPO's contracts with vendors UIUIIIy Include clauses celled · ShIppIng • F. O. B. StatewIde · that
prcMde, In part: " Prices shill be F. O. B. de8tInatIon to any deI'- Y location In the StatemArIzona, delivered
to the apecIfIed receiving point 88 reqlDd by the CUItOmer agency at the time morder. · Under IUCh a
statswlde contract, the delivered price for any Item Is the eamel' 8glldlessmthe receiving point. Our best
81t1... ate of total annual commodity purchases under this provision Is eppraxImateIy $ 306 mlion.
SPO administers the State's cooperative purchasing programs through which approximately 350
poIlIiclII subdivisions and non- profIt health and edueatlonallnatltutlons purchase from the State's statewide
conbacts. Those entities pay a fee of $ 120 per year to receive a monthly rnIcroflche which advises them
of the Items on statewide contracts. The SPO staff spends a substantial amount of time annually answering
questions from these entities about statewide contracts and cooperative purchasing.
' mret
We contacted major Statewide vendors to discuss the price Impact of this contract provision. The
consensus was that one to two percent of their current prices reflects statewide delivery requirements.
These vendors further advised that If such requirements were not a part of the statewide contracts, they
wcUd simply place an appropriate, cost- based delivery charge on each order outside of the Phoenix and
Tucson metropolitan areas.
Eighty percent of the State's purchases are for delivery to the Phoenix metropolitan area; an
addIIonaI ten to fifteen percent are for delivery to the Tucson metropolitan area. The majority of purchases
for delivery outside of the Phoenix and Tucson metropolitan areas are for the approximately 350 political
8UbdIvIsIons and non- profIt health and educational institutions which purchase from the State's statewide
COI'Ib'aetS.
Ae!' rrnrrwM..
We recommend that the · Shlpplng • F. O. B. Statewide · and · Prlclng- clauses of statewide contracts
be nMsed to provide for cost- based delivery charges on orders outside of the Phoenix and Tucson
metropolitan areas.
DOA · 37
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--
Revision of statewide contracts to provide for COIl- bued delivery charges on orders outside of
the Phoenix and Tucson metropolitan 81' 888 woUd reduce the COlt of ltatewlde contracts by 1%, which
equals a total savings of $ 3,080,000 ( the 1 percent Is net after 811 delivery charges).
InIqIImwM · "
Revise the IanglBg& of the contract to provide for COIl- bued delivery outside of the PhoenIx and
Tucson metropolitan 81' 888. Request vendors to estimate savings to the state from this change In the RFP
for a six month period to provide a basis for estimating realized savings
DOA- 38
TAXATION OF CONJBAC[ PlJROWES
The current State contraet8 U8U8IIy Include one price for the cost d each product. The purchase
prtceG the commodity may Include 88IVIce costs relating to delivery, installation. training and maintenance.
Thevendor U8L8IIy CIIIcl* Ites the cost dthe commodity1t8eIf. separately caI~ the cost d each service.
and then combI~ all such costs Into the bid price for that soIlcIIatIon. A commodity purchIIed by the
State Is 8Ub) ect to State. County and CIty .... taxes chIrged on the total bid price d the vendor, which.
• noI8d above. may Include the vendor's cost d pn: Md1ng delivery, 1nataIIatIon. training and maintenance
services. In ArIzona, however. 88Ies tax should not be IIII8lII8d on services.
ApproxImately $ 356 milan Is spent annually on commodities purchases. The major city and
county tax rates are 1.2% and .5%. respectively. for a total of 1.7%. 1.7% of $ 356 milion Is an approximate
tax payment of $ 6,052,000.
,....,
As a result of the faBure to separate the cost of commodities, delivery. installation. training,
maintenance and other services for tax purposes on State contracts. the State of ArIzona pays counties and
cities taxes on such services contained In State contracts.
Under the current contract process, there Is no way to accurately identify the value of the services
now Included In the contract price. If only 1% of the tax now paid to cities and counties Is based on service.
the cost Is approximately $ 60.000.
Reggmrrwrtnll!-.
We recommend that State contracts should separate the costs d commodities, delivery.
InstaIatJon. training, maintenance and other services for tax purposes.
DCA- 39
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III"
By requiring vendors to separate the cost c: A the commodities, delivery, InItIIIatIon. training,
maintenance and ather aervIces that make up their bid prices on St8te contraeta. the St8te c: A ArIzona wit
reduce Its cost c: A sales tax by $ 80,000 and therefore, wit reduce Ita cost c: A purchasing by $ 60,000.
Revise the format c: A the contract to segregate taxable and non- taxable purchases.
DOA- 40
An Important element of the DIrector c: i COA's reaponaIbIIltIea (& long with the Attorney Gener8I) Is
enforcement of State procurernei1t policies and I' 8gI8tIona. The ArIzona Reviled Statl8 specify the need
for enforcement If sound procurernei1t practices are to be 8llabl1ahed and maintained. ( Refer to Attachment
I for the ARC text that apecIIIea DCA's reaponaIbIIltIea regarding ..- wtde procurement).
WIthin the relevant legislation, there are two key pieces c: i text which, In 8888I1C8 mandate
enforcement of procurement poIlcIea and regWdiona; - rt1e director shill prepare, Iaaue, revIae, ........_
mOIl. orthe I. e c: i •.. ,- ( AR. C 41- 2562); and ' 11' e.".,., ............. enIan: e the prcMIIIona. •. , ­(
ARC 41- 26166, sec. C). Despite the statutory requirement. SPO doea not make any significant effort to
enforce procurement policies and regulatlona.
The need for enforcement and the effect of no such activity Is underscored by a few examples
uncovered during this study of purchases made outside established procedures.
The lack of any form of enforcement of state procurement policies and regulations undermines SPO's
abHIty to control state- wide procurement practices. WIthout the backing ofavisible enforcement policy there
Is less assurance that state agencies use the moat efficient and appropriate procurement practices. WIthout
an enforcement mechanism to support the state procurement environment, the door Is wide open to wasteful
expenditures, abuse and violations ( that could reBUt In Ilegal aetMtJes).
Reurnn..' W" ·
h Is recommended that enforcement c: i established procurement policy and regulations begin
Immediately. This enforcement program shoUd start with the up front education of all necessary parties of
the Intent to enforce and the repercussions for deviating from the approved practices.
DOA - 41
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In addition, we recommend that the Department of Administration be responsible for reviewing each
agencies' compliance with procurement policy. We envision that • the reorganization ci DOA Into ServIce.
Policy and Compliance Divisions Is accomplished, the resources for this compliance reviewwi be identified.
VIolatIons of the Procurement Code ahoUd be brought to the attention of SPO management and the
respective Agency Director In order to correct vIoIatIon8 through f8b' 8InIng or disciplinary action. Sources
of repeated violations wi be referred to the Attorney General.
"'''''
Once an agency's procurement personnel are aware of the potentIIIllabllltIes for knowIrVY fating
to conform with established policy and regtatIons, they wi more wllJrVy comply. Only a fUI audit of
agencies' purchases would allow for quantification of the potential savings In hard and soft dollars.
• SPO, with the assistance of the Attorney General's office, should publish a statement ci
enforcement policy. This statement should cI_ rly communicate reqUired procurement practices
and the ramifications of deviating from them
• SPO should develop a formal program for notifying state agencies of the Intent to enforce
procurement policy and laws. It should be considered to have this program culminate In a IIgned
letter of understanding by the procurement managers of the state agencies
• Note that the foundation of a successful enforcement program Is dependent upon equally
successful:
Training on procurement policy and procedure
Audit/ revievi of agency procurement practices
Procurement information systems that provide both agency and SPO management with
necessary and sufficient data to establish and maintain control aJar state procurement.
Each of these Issues ( training, revIevi, and Information systems) Is addressed In separate
recommendations.
DOA- 42
AnACHMENTI
Arizona Revised Statues:
State Procurement Practices
• 41.2501. AppIlgebllty
A This chapter applies only to procurement initiated after January 1, 1985 unl88S the parties agree
to Its application to procurement initiated before IUCh date
B. ThIs chapter applies to fN8fY expenditurempublic monies. including federal 8881stance monies
except 88 otherwise specified in AR. S. 41- 2837, by this state, acting through a state governmental
unit 88 defined In this chapter, under any contract. except that this chapter does not apply to either
grants or contracts between this state and Its poIltIc8I subdivisions to other govemments, except 88
provided In ArtIcle 10 of this chapter. ThIs chapter llso applies to the dlspoa8l of state materials.
Nothing In this chapter or in regulations promwgated under this chapter shall prevent any state
govemmental unit or political subdivision from complying with the terms and conditions of any grant.
gift, bequest or cooperative agreement
• 41 · 2637. Compliance with federal Requirements If a procurement involves the expenditure of
federal assistance or contract monies, the director shall comply with federal law and authorized
regulations which are mandatorily applicable and which are not presently reflected in this chapter
• 41- 2562. puties of the pirector The director shall establish guidelines governing the preparation,
maintenance and content of specifications for materials, services and construction required by this
state. The director shall prepare, Issue, revise, maintain and monitor the use of spectfIcatIons for
materials, services and construction required by this state. Added by Laws 1984, Ch. 251, 2, err. Jan
1, 1985
• 41 · 2565. Maximum practkiable competition All specifications shall seekto promote overall economy
for the purposes Intended and encourage competition In I8tI8fyIng this state'. need. and shall not
be undwy reatrictlve. Added by Laws 1984,01.251,2, elf. Jan 1, 1985
• 41 · 26166. VIolation: cIassIf! cItIgn: I_ Iv: Rprced authority
A A person who contracts for or purchases any material, services or construction in a manner
contrary to the requirements of this chapter, the rWes adopted pursuant to this chapter, the rWes
adopted by the state board of education pursuant to 15- 213 or rWes adopted by the Arizona board
DOA · 43
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of regents, the ArIzona lottery commission or the Judlclll branch pursuant to 41- 2501 Is personally
liable for the recovery of ell public monies paid plus twenty per cent msuch amount and I"
Interest from the date of payment and ell costs and damages III'IU1g outmthe violation.
B. A person who IntentIondy or I< r1owIrVY contracts for or purchases any material, services or
construction pursuant to a scheme or artifice to avoid the requIr8rIwItBmthis chapter, Neaadopted
pursuant to this chapter, Nea adopted by the Itate boBrdmeducation pursuant to 15- 213 or Nea
adopted by the & tate boBrdmregents. the lottery comrnI88Ion or the Judlcl& l branch pursuant to 41­2501
Is gully of a class 4 felony.
C. The attorney general on behalf of this state shill enforce the provisions mthis chapter. Amended
by Laws 1990. Ch. 299. 3. Historical and Statutory Notes - The 1990 amendment rewrote the
section.
DOA · 44
DOA - 45
' PM"!
OFF- CONIBACTNQWEMIJ'HORI2ADON CFORM 150)
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9
92
• F150s received: 101
• Approved:
• Denied:
Upon receipt of the F150 by SPO. the request Is nwI8wed by the commodity buyer and a
determination Is made to approve or reject the request to purchase off- contract and the requesting
organization Is 80 notified. Buyers use these requests In part, to determine the appropriateness and
usefulness of the products on state contract.
Form 150 ( F150) Is a formal request to buy a commodity from a vendor that Is not specified In an
established state- wide contract. It shoUd be used when a buyer's needs ( operatIonII or financial) cannot
be met by the Items or prices Included In these contracts.
A. study of all the F150s received by SPO between JUy 1, 1990 and December 13, 1991 revealed the
following:
WhUe the F150 process Is simple and takes little time, very few requests are received In SPO relative
to the thousands of purchases made annually on a state- wlde basis. In contrast to the minimal use of the
F150. commodity users In agencies frequently complain about the products ava. able on state contracts.
WIth only 101 F150 requests being received during the uventeen month period studied, It appears
agencies are unaware of the process or are making purchues without following the waiver procedure. this
lack of awareness can result In user frustration, 1088 of purchasing control, under use of a good monitoring
tool and a potential 1088 of savings.
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It Is recommended that sPo educate and work with all Slate agencies to gain more effective lM d
the F150 waiver. We recommend that a buyer identification be added to the contraet8 and that the F1508
be delivered directly to the Buyer for nwIew. After the nwIew the Manager 8hoUd nwI8W the F150. All
F1508 that are approved and I' 8IIect a variance lela than $ 100 are en directly back to the agency.
Approved F1508 with a variance rNer $ 100 shoI.* t be nwIew8d by the SPO A8aIItant Director.
It Is 8Iso recommended that SPO Implement a tormaI traeIdng d the F1508 eubmItted to maximize
Ita potential 88 a tool for meuurlng the utlity of current Itate- WIde contraeta.
-
Agencies would have a better understanding and awareness of the rules and guidelines for off­contract
purchases. The Increased knowledge wli help to Improve control and eliminate the perception d
lMrs that the procurement system Is Inflexible and unresponsive. By changing the process fIaN, the
support. staff Is taken completely out of the process, the manger only sees the F150 once and the AD Is
reqUired only for the most significant cases. These changes to the current process for revI8wIng the F150s
wli speed up the process and Improve service to the state agencies.
Along with Improved processing of the F150a, SPO Buyers would 8Iso have more comprehensive
Information on the use of contracts. Because of this more thorough knOwledge of agency purchasing
habits, they wli be better equipped to determine the appropriateness and the effectiveness of state contraeta
In meeting users' needs. An additional benefit would be Improved relations among users, vendors and SPO.
It Is recommended that SPO publicize the F150 process to all agencies. The following two methods
are suggested:
• Utlize the state wide employee's newsletter on a regular buts to publicize helpful hints, rules and
other purchasing information
DOA- 46
• Publish a procurement training manual that covers all facets of purchasing and procurement. A
section of this manual wcUd cover the 1M of the F150 to purchase a commodity off- contraet
• Publish a procurement tdetln that highlight new and Important__ for procurement personnel
ltate- Wlde.
DOA · 47
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PROCUREMENT lMttNG
CUrIInt..."
The Director 01 Administration Is required by statute to:
• - Procure or supervise the procurement 01811 materIIIs. 181V1c88, and construction needed by this
state.- ( Sec. 41- 2511 AR. S.)
• - Establish guidelines governing the preparation, maintenance and content 01 epecIfIcatIons for
materials. services and construction required by this state.••- ( sec. 41- 2562 AR. S.)
• -..• prepare, Issue, revise, maintain and monitor the use 01 specifications ....- ( sec. 41- 2562
AR. S.)
Implicit In the statutory authority provided Is the need to train the procurement personnel 01 the
various state agencies on established policy and procedure.
The State Procurement OffIce ( SPO) conducts procurementand awards contracts for statewide needs
In addition to awarding other special contracts for agencies that have not been delegated procurement
authority from the Director. Eight state agencies have been granted procurement authority for an unlimited
dollar amount. Other agencies have been delegated up to $ 10,000 of procurement authority. Also, some
agencies are granted procurement authority on a one- t1me basis.
In short, every agency within the state performs some procurement. However, the only fonn of
training provided by SPO Is ad hoc. And It Is done only when Initiated at the request of a user agency.
The effects of essentIIIIy no procurement training program are:
• Agencies making Inappropriate purchuea outside of state contracts
- Agencies purchasing Items Independently that could have been purchased more economically
from state- wlde contracts
DOA- 48
• DIffIcUtIes In the development magency sponsored RFPs because of the agency's lack m
knowledge regarding the bid process
• AgencIes writing RFPs that do not adhere to state policy ( and In some cases axposIng the state
to potentiIIllBbllIIes).
"","., 4M..
We recommend that SPOdevelopa complete training and support program on state procurement
policy and procedure. The program 8hcUd Include:
• User oriented Instruction/ reference mantBIs
• Comprehensive classroom Instruction that provides the IndlvldtBI with a global perspective of
procurement ( as seen from both the agency and SPO perspectives). ConsIderation should be
given to making this class mandatory for the top two or three purchasing people In all agencies
• Aprocurement bulletin that highlights new and Important Issues. and provides class schedules
for new procurement personnel.
The recommendation wli provide the following benefits to the state procurement process:
• Increase agency adherence to state procurement code by Increasing consistency In agency
purchasing practices
• Ensure agencies properly use statewide contracts for purchases
• Inform agencies regarding the waiver process which allows agencies to obtain SPO approval for
purchasesmItems not on statewide contract
• Reduce the development dmemRFPs
• Improve the qtBIlty of RFPs Issued by state agencies. and of scopes of work submitted to SPO
DOA- 49
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• Reduce costs with the decrease In time to Issue RFPs
• Reduce mcposure to IIabIIty for faWty or Irregular procurement practices
• Establish a better r* tIonshlp/ communIcatIon b8lw8en SPO and the 0Iher Itat8 agencies.
1nmItnwM""
• DesIgn a training program
• Prepare training manuals
• DesIgn and hold training classes
DOA- 50
Pl&. IC NO'DCE FOR PfIOaJREMEN[ OF fERYKD
8ectIan 41- 2533. ArIzOna RevIled Statutes, IlIbeect10n CIIat8I that public noticeman invitation for
bids may Include publication mthe notice In a newsp8per one or more times before the bid opening.
How8ver. this law also requires that a noticema bid for the procuernentm88IVIcea. with the exceptionm
those 8VIces exempted by law. must be published In a fl8\¥ 8PIP8I' or newspapers In this state with a
cIrct'atIonmat least fifty thousand subscrIber8. Public notices must be printed not 1888 than 8bc nor more
than ten days apart. The second notice must not be prtnted .... than two weeks before the bid opening.
At least one of the newspapers must be circulated within the affected governmental JUrisdiction.
Potential vendors or offerors can obtain RFP8/ IFB8 as follows:
• The vendor submits an application for placement on a vendor list
• SPO staff or an affected agency may add vendors to the list of vendors to receive the RFP/ IFB
• The vendor may request the RFP/ IFB after becoming aware of the RFP/ IFB through the
publication of the notice or word of mouth. Such requests are " add- ons" to the vendor and
buyer/ agency lists.
''' PG'
A review · · of seven contracts recently awarded and four contracts about to be awarded for the
procwwnent of services was conducted to determine whether a significant number of vendors were
requesting RFP8/ IFB8 In response to the public notice requirement In section 41- 2533 ( C), AR. S. This
review showed that the vast majoritymvendors receiving documents were on the SPO vendor list or were
added on by the agency or SPO staff. Avery small number of \ Wldors were " add one" who reqU88ted the
RFPjlFB as a reUt of the required publication notice or who become aware of the RFP/ IFB by other
me& nS. The review provided the following information regarding the contracts:
DOA · 51
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Praf8IIIonaI SIMce Yendor/~ IJst Add- ons
Coat Allocation ConIuItant - 1
8pMch TherIpy 71 4
CoIMntIon Md CaIIring 13 2
PromoIIoMI ConIuIt8nt for AgrICluIIIn 15 0
EduoationIl AIform ConIuItant 12 0
AIrnovaI of HazMIoua WuI8 481 4
Land RI- uIe ConIuItant 138 I
BenefIta ConIuItant ServIces 13 0
Juvenile oet. ntion Allidentlal UvIng 103 3
HNrIng OffIcer • 4
UnderWrItIng ServIoee • 0
Total 1848 ZT
During fiscal y. r 1989- 1990, SPO Issued 102IFB's/ RFP'sfor services. In fiscal y. r 1990- 1991, SPO
Issued 97 IFB's/ RFP's for services. The average cost In the statewide contract for the publication of public
notice Is forty dollars which results In an annual cost of about $ 4,000.
We recommend that the statutory language In 41- 2533 ( C) which requires publication of notice
regarding bids for procurement of services be eliminated and that such publication be permissive In
conformance with the current law for Invitation for bids which Is also provided In section 41- 2533 ( C), AR. S.
The recommendation wli provide the following benefits:
DOA- 52
• eliminate the cost of advertising bids for procurement of 88Nices when the SPO ora state agency
determines that an existing list of vendors wi provide a 8UfftcIent number of I' 88PO" I88 to the bid
and that the advertising Is not In the best Interest of the state. An example of the potential savings
Is seen In the $ 4,000 SPO spent on advertising In the ' 80 to ' 91 fiscal year. ThIs money was spent
with COx Publications becaLM of the IIatUtory reqI. IRrnn to edvertIse RFPs for 88Nices
",'.......,-,,,
Implementation of the recommendation can be accompIlIhed by eliminating the requirement for
publlcnotlce of bids for procurement of services. ThIs would require passage of the following legislative
proposal:
Be it enacted by the legislature of the State of ArIzona:
SectIon 1. SectIon 41- 2533, ArIzona Revised Statutes. Is amended to read:
41- 2533. Competitive sealed bidding
A. ( no changes proposed)
B. ( no changes proposed)
C. Adequate public notlce of the Invitation for bids shall be given a reasonable time before the date
set forth In the Invitation for the opening of bids, In accordance with rules adopted by the director.
The notice may Include publication one or more times In a newspaper of general clrctMtIon a
reasonable time before bid opening. If the IlfJIatIeR fer 1111I1 Ie feF the ' .. I Me'" sf 18PII11.
_ eF"" e. III..... II. 1I III 41 a& 13 aM 41 1& 7oI, the RMI. ehIIllRelwlle , leaIIIR III. _ lie
R8\ TJ' 1IIBIIIF er IR M"'" I R8WII wMIIR.._. witt 8R__ LII•• II e" elreLII_ eR sf
811.. My.. e fer " 1M , I. lIIeM rM: lleh are Ret 1811 elM FIeF Mere .....
....-. 8( JIIft ' Ale . IIIFIII ,... leaIIlR eI18IIl1e Ret 1811 ..... I\ tM WII. IIB1ere"'" e'....... •..
I.. eRl sf the RIWI,., lrelRlillllle _ wi... wMIIR the llfeet................. Jurledl"' eR.
DOA- 53
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D. ( no changes proposed)
E. ( no changes proposed)
F. ( no changes proposed)
G. ( no changes proposed)
H. ( no changes proposed)
I. ( no changes proposed)
DOA - 54
In the body d each contract, SPO requires the vendor to furnish the State with Quarterty Usage
Report, adeilnEfng the acquiIItIon aetIvIly gcMI'I18d by the contract. The format d the report 8hd be
approved by the Sate and 8hd disclose the number and dollar wlue d each · contract by IndIvldLBI
purchasing unit. a The Usage Reports are not In a It8ndardIzed format, and their utllzatIon Is cumber8ome.
SPOrequires that the Quarterty Usage Report a8h811 be due at the end d each three month period
d the contract term. a The U. ge Reports are not provided by the vendors on a timely basis, and SPO
buyers are usLBIIy required to manLBIly generate and send a letter to the vendors requesting a UIage
Report. Additi0naily. there are no U. ge Reports for non term contract Items.
ArIzona Financial Information System ( AFIS) does not have the capablity d tracking State purchases
by contract number. by vendor. or by category of Item. and cannot provide any such statistical or
aCCCU1tlng Information to SPO.
SPO Is limited In Its ability to serve agencies, evaluate proposed changes to contracts. and determine
the proper time for renegotiation of existing contraet8 or negotiation of new contraet8. with any degree of
acaney.
• The currently available U. ge Reports are not providing an accurate picture of State purchases.
because the U. ge Reports are compIed by the vendors, and the Reports' accuraey Is
questioned
• AFlS lacks the capablity d tracking State purchases by contract number. by vendor. or by
category d Item. and cannot provide any such ItatIstIcaI or accounting information; therefore.
SPO cannot determine what Is being bought by the State on the state Contract
• Additi0naily. SPO has no accurate picture d what Is being bought by the State off the term
contract, and cannot effectively; negotiate for a term contract using aeconomy d aea as
reasoning for such negotiation.
DCA- 55
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We recommend that AFIS II be designed to track State purchases by contract number, by vendor,
and by category of Item, and to provide such atatIstIc8I and accounting JnformatJon to SPo.
We recommend elimination of the Usage Report requirement currently contained In the body of. ch
contract after the implementation of AFIS II.
Implementation of the above AFIS II recommendations wli provide SPO with statistical and
accounting Information allowing It to track State purchases by contract number, by vendor, and by category
of Item. This wli Increase sPa's abHlty to serve agencies, evaluate proposed changes to contract, and
determine the proper time for renegotiation of existing contracts or negotiation of new contracts.
Additionally, spa wli have a more accurate picture of what Is being bought by the State off the term
contract, and wli be able to effectively negotiate for a term contract using - economy of scale- as reasoning
for such negotiation.
Key implementation steps Include:
• Confirm AFIS II capabUlty to track purchases by contract number
• Develop new purchasing procedure to Include contract number in processing steps
• Develop output report formats, frequency and distribution.
DOA- 56
DB £ GAtE DOA PUROtASING Al1THOfVIY
The DOA Purchasing SectIon, a part mthe State Purchasing OffIce ( SPO) Is I' 88PO" 8ibIe for
proc& nm8I1t and purchasing for all DOA DIvIsIons. It his 10 budgeted positions, allmwhich are curenIIy
flied. DCA Purchulng Is divided Into the MaterIIIs ServIces. ConstructIon Contracting and Support Units.
The main functions mDOA Purchasing are to:
• Process the purchase requisitionsmeach DOA division, prepare purchase orders. and order the
goods and services from the vendor
• Prepare requests for bid ( RFB's) for the construction of buildings by the Faclltles Management
Division.
Purchases of $ 500 and less make up 50% of the requisitions, whle accounting for approximately 3%
of the dollars expended. The section Is currently planning to delegate procurement and purchasing authority
for Items up to $ 100 dollar to each DOA division.
Purchase orders are currently typed by clerical staff. There Is nonnally athree to four day backlog
of un- typed purchase orders. In addition there Is an unprocessed requisition backlog of approximate 20%
of all requisitions received on a monthly bBsls.
Purchasing and procurement activities relating to Items of $ 500 or less account for fifty percent ( 50%)
of the orders proposed by this section.
RecomnwfW,.
We recommend delegation of procurement and purchasing authority of up to $ 500 to each DOA
dMslon. Each Division would continue to prepare and approve all requisitions, then rather than forwarding
the requisition to purchasing for preparation of the purchase order the Division personnel woUd simply
phone the approved vendor with the order.
DOA- 57
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Delegation of procuremn and purchasing authority for Items up to $ 500 to 88ch DOAdlvl8lon would
reUt In a reduction ofwortcload for DOA purcMslng. ThII reduction In worIdo8d wII.- bIe DOA purchasing
to eliminate the current bacldogsthat exist In the unit. In addition, this wII8IIaN the buyers to.. their time
more effectively on the larger purchases, ! tn. providing a higher1M of 88NIce to the DOA DIvIsIons.
.......... h"
• Detennlne appropriate authority level for 8800 division
• Develop procedures for divisions to use
• Train division personnel In new procedures
DOA · 58
QWIjE LOSS] ltREStQ. D TO & 000
QmnI....
The Risk Management Code, A. R. S. SectIon 41- 621, et aeq., and ArtIcle 1 d R2- 1O- 105, Coverage
and UmItatlons, provide that the property 1081 coverage d the RIsk Management DIvIIIon ( RMO) for
8tattHJWned buldlngs Is on a replacement cost basis for ... adLBIIy replaced or repaired. AMO's
property loss coverage for atate- owned personal property Is on areplacement cost basis, ... depreciation.
A Self Insured Retention ( SIR) d $ 25,000 applies to each and rN8I'f 1018 other than:
- EarthqLake, which Is 5% of value per location or $ 100,000 ( whichever Is greater)
-$ 100,000 SIR for flood 10888S
- $ 300,000 SIR applicable to each and fNery loss at the Department of Corrections and Juvenle
Corrections.
Under the statutes and regulations, RMO's practice emphasizes the Immediate payment of State
agency claims for 108888. RMO Is currently required to pay State agency claims for 108888 of $ 100 or above,
regardleaa d the cause of the loss, and regardleaa of the number of claims submitted by the State agency.
Although there Is a multi page State Loss Control Policy, R2- 10- 205, there Is no entorcernent d that
policy. Furthennore, the State agencies do not have any accountabHlty standards regarding 1088 control In
general.
WhUe RMO's allocation to each State agency Is directly related to that State agency's history of
losses, the State agencies are not required to explain their 108888, regardless of the number or dollar amount
of those 108888, or their budget requests for RMO allocation.
The Qalm SectIon of RMO Is responsible for Inv8ItIgatIng and fNaluating all liablity claims fled
against the State, as well as adjusting all property cIaIma. The QaIm SectIon Is staffed by 12 claim adjustors,
two claim supervisors, the claim manager and support personnel. Offices are located bath In Phoenix and
Tucson.
0014.- 59
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ApproxImately five claim adjustors are uslgned to handle 8mIII1 claims ( claims under $ 5,000) and
RMD estimates that 2/ 3 of their time II spent In pt'OC888Ing property claims and the remaining 1/ 3 II spent
In pt'OC888Ing IIabIIty claims. Thus approximately three FTE proc888 2,887 claims per year.
In addition to the In house claims proceuIng, RMD utllze8 out8Ide claims proceuIng I8NIces. These
services charge approximately $ 30 per hour bated on Itat8 contract. RMD management Infonned us that
the total annuli charges for these 88NIces are approximately $ 800,000.
Some State agencies have used the current requirement ImpoIed upon RMD 88 a method to
purchase and replace Items that shoUd more appropriately be funded through the agencies' Operations
and MaIntenance ( 0 & M) budget. As a f8Sl. dt, the claims proc888 II overburdened with an 8X08881ve
number of claims, thus Increasing administrative COltS.
An analysis of State agency loss/ claims reports for real, peI' 8OI1III and automoble property losses
submitted to RMD reveals that approximately85% of aU the property claims processed are under $ 5,000 ( see
ExhIbit 18, Risk Management DMsion, Loss Claims History).
A lack of enforcement of the State Loss Control Policy means that there are no stateside
accountability standards and the agencies themselves apparently do not have any such standards. WIthout
such policy or standards, and as long 88 any loss over $ 100 can easily be recouped through the claims
process, there Is no Incentive to control losses.
We recommend that RMD Institute a $ 5,000 threshold for agencies over $ 3 milan In annuli budget
to submit property loss claims to RMD except In cases where a third party can be identified from whom
money can be recovered. Those agencies with annual budgets c: A $ 3 milan and less should be subject to
a threshold of $ 500.
We also recommend that State agencies be required to Include 88 0 & Mexpenses In their anrul
budget requests aU property losses of under $ 5,000, thus property reIIectIng many IBns now paid by RMD.
RMD should provide agencies with an analysis of their claims history under $ 5,000 and the budget amount
should be 5% less than this average to promote greater emphasis on loss prevention.
DCA- eo
III 7'
Institution d the $ 5,000 property loss threshold wi! reUt In an approximate 85% reduction In the
number of property 1018 claims processed by RMD. ThIs repre. enta the work performed by the following
staff:
• Three grade 18 QaIms AdJUlItors
• One grade 11 Clerk.
Once the work performed by the above staff II eliminated the higher grade claim adjusters In RMD
can pass the claims that they are CUI'I' 8r1tIy proceaIng to the three grade 18 claim adjusters and In tum
begin to process claims currently proc8I8ed by outside claims proceaIng 881V1ces. ThIs wli reUt In a
savings of approximately $ 172,800 based on the equivalent of 5,760 hours ( 2,080 hours IllS 160 hours
vacation and holiday tlmee 3) of proc888Ing time currently performed by the outside services being
performed In house.
The requirement that State agenc188 Include .. 0 & Mexpenses In their annual budget requests all
property 10I88S of under $ 5,000, thus property reIIectlng many Items now paid by RMD, means that State
agencies wli no longer be able to use RMD .. a method to purchase and replace Items that shcUd more
appropriately be funded through the agencl88' 0 & M budget. The 5% Incentive would result In additi0nai
savings of $ 65,153, and a powerful incentive to controllOl88S.
The Institution of a $ 5,000 deductible wli provide State agenc188 with a powerful Incentive to control
losses.
Amendment of R · 2 · 1O- 105 II required.
• RMD identification d agencies to be Included In new requirements
• RMD anaIysiI of 10I88S by agency
• Budget revision approved.
DOA · 61
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- - - .. - .. - - - .. - - .. ... - .. - - - Department of Administration
Risk Management DMslon
loss Claims History
EXHIBIT 18
lOSS 88- 89 88- 89 89- 90 89- 90 90- 91 90- 91
lYPE DESCRIPTION ' CLAIM $ ' CLAIM $ ' ClAIM $
001 AUTO lIAB- BODIlY INJ. 143 1,161,382 116 624,770 168 3,422,643
002 AUTO lIAB- PROPERlY 387 331,222 321 366,531 537 407,665
003 GEN lIAB- BODILY INJ. 448 8,570,398 470 6,533,458 443 11,802,073
004 GEN lIAB- PROPERTY 1,272 1,451,235 1,590 469,620 1,309 962,705
005 MEDICAL MALPRACTICE 78 3,898,070 56 1,751,931 58 4,601,329
007 PERSONAL INJURY 259 1,378,810 433 1,944,083 950 ~, 717,953
050 PERSONAL PROPERTY 329 702,068 475 804,196 504 703,582
051 PROPERlY- VEHICLE 1,765 948,517 2,081 923,480 2,370 1,061,616
• 052 REALPROPEATY 339 1,055,607 366 918,817 492 1,440,656
• 053 BOILER AND MACHINERY 1 94,317 6 143,861 4 61,324
054 AIRCRAFT HULL 12 109,410 9 120,040 9 74,352
055 FIDELIlY AND SURETY 0 205 2 27,863 0 38,247
056 ENVIRONMENTAL GUSI 0 171,740 2 472,607 17 177,969
057 ENVIRONMENTAL GLJPD 9 8,347 16 468,514 4 386,224
058 ENVIRONMENTAL- PERSONAL PROP 1 0 1 4,166 5 14,717
~ 059 ENVIRONMENTAL- REAL PROP 16 1,587,585 64 .1,043,529 36 838,460
,
19 TOTAL LOSS COMBINED 5,059 21,468,913 6,008 16,617,466 6,906 28,711,515
TOTAL RESERVED 53,655,715 58,437,089 79,611,568
TOTAL PROPERlY ClAIM 2,446 2,910,124 2,937 2,938,257 3,379 3,379,777
TOTAL ClAIMS $ 100-$ 500 1,308 154,524 1,756 242,001 2,190 347,969
TOTAL ClAIMS $ 500-$ 1,000 204 288,837 212 149,170 321 229,425
TOTAL ClAIMS $ 100-$ 1,000 1,512 443,361 1,968 391,171 2,511 577,394
TOTAL CLAIMS $ 1000-$ 5,000 320 517,587 298 535.216 356 725.682
TOTAL ClAIMS $ 100-$ 5,000 1,832 960,948 . 2,266 926,387 2,867 1,303,076
% PROP. $ 100-$ 1,000TO TOTAL. PROP. 62% 15% 67% 13% 74% 17...
... PROP. $ 1 ,000-$ 5,000TO TOTAL. PRO 13% 18% 10% 18% . lllk IDl
% PROP. $ 1,000-$ 5,000TO TOTAL. PRO 75% 33% 77°. 41 32% 85% 39%
% PROP. $ 100-$ 1,000TOTOTAL CLAIM 30% 2% 33... 2% 36% 2q6
% PROP. $ 1000-$ 5,000 TO TOTAL CLAIM 6'" 2% 5% 3% 5% 3%
;
SOURCE: AMI SYSTEM AMS 5003 RUN DATE 08107/ 91
SOURCE: AMI SYSTEM RMS 5001 RUN DATE 01124192
BEaUJMEtfi HI) tlfUNG - PERSONNEL DMSION
The Department of Administration ( DCA) PII'IOMII DIvIIIon', cenb'IIlzed recruitment system does
not" ysprovide timely and qUIIIfIed tW1ng regIetn for the State agencies utlizing pnor. nelaerv1ce8.
The DOA', Personnel Division Is responsible for proceaIng hiring I' 8qu. t8 from the lI1I. Ior State
agencies and preparing hiring registers through a system of open continuous recruitment and advertised
announcement8.
Except for Internal promotional announcements, C8ntnII Personnel Division handles all requests for
position registers. The Personnel Division also handles Internal prornotIonaI recruitment for those state
agencies which do not have Personnel employees out- statloned within the agency.
DOA Personnel have instituted a program to Incorporate a closer working relationship between
Central Personnel analysts, agency analysts, and hiring authorities In matters of recruitment and hiring
register development.
,....,
The DOA Personnel DMsJon employs 74 staff members In Its central office. Additi0naiiy, there are
42 staff members out · statloned In the major State agencies. The length of time required for a hiring authority
to secure a register currently averages 58 days. This time Includes both agency and central Personnel
processing time periods.
""!'-""'''
We recommend that Optical Disk imaging technology ( already a part of DOA plana and partially
funded) be Incorporated Into the 0V8r8II employee recruitment system. ThIs woUd allow both agency and
CenInII Personnel Offtces to scan applications and make them avaIabIe, via local optical disk or terminal,
for printing and subsequent transmittal to the hiring authority.
Once Imaging and retrieval capablity Is Installed at central and Belected agency personnel offices,
we recommend that some of the operations and decision making authority now practiced at DOA Personnel
DOA · 63
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Central Office be decentralized to individual state agency administration. In this regard, we recommend that
a portion of Central Personnel recruitment staffing ( both 8I1IIyst and cIertcaI Mlployeea) be reusIgned to
the larger agencies ( number and names of agencies to be determined) not naN utllzlng DCA Personnel
MlpIoyees. Although initially these MlpIoyees woUd continue to l81' Ve as DOA - Personnel Administration
Mlployees, plot projects 8houId be initiated whereby these employees ceU: J be 888ImIated Into the
individual agencies on a case by case baa
ConsIstent with the above changes, we recommend that the remaining Central PmonnII recruitment
staff maintain the following roles:
• For cross- agency hiring registers
- Announcement and advertisement of those position vacancies whose cIas8IfIcatIons are
found In more than one agency
Screening and scoring of those applications relating to positions found In more than one
agency. In this regard, the screening and scoring process may need to be strengthened to
better Insure equity and fairness In the qualification evaluation process
Preparation of hiring registers for those positions found In more than one agency
• As central repository of all agency and cross- agency registers ( housed In Imaging bank)
• Oversight, Including regular audits, of agency personnel analyst actions and decisions. In this
regard, statutes and/ or personnel rules may need to be modified In order to formally strengthen
this oversight function
• Personnel rules development, monitoring and interpretation
• AssIstance/ advice on Personnel recruitment practices and procedures
In addition, we recommend that" Ageney Pnonnel recruitment staff assume the following roles:
• For agency - specific hiring registers
DCA- 54
• Announcement and advertIIement ci thole vacancIea whole cIusIftcatIons are found only
In that agency
• ScreenIng and scoring ci those appIlcatIona relating to positions found only In that agency.
In this regard, further training ci agency peI'IOMII anaIYIt8 may be requRd to help Insure
equity and falme881n the qualification evaluation proc. l.
• Preparation ci hiring regIsIn for those positions~ only In that agency
• Coordination ci all agency peI'IOMII recruitment practices
• Coordination with DOA Central Personnel staff.
As Is detailed in another recommendation, expanding the open- continuous list of classifications wli
faclllate the implementation of thiB personnel authority decentralization.
We recommend that the recruitment process be modified ( see exhibit 19, Proposed Recruitment
Process) In order to correspond to the modified roles of DOA - C8ntraI Personnel and Agency Personnel
Offices respectively ( authority decentralization). The process can be summarized as follows:
In response to a vacancy, the agency hiring authority would forward a personnel requisition to the
agency personnel office. Staff there would access Its own storage media for avaIabie registers ( If agency
specific position vacancy or if crosEI- agency position, would access Central Personnel register fie via
terminal). In either case a register of names and accompanying applications can be printed and forwarded
to the hiring authority Immediately.
Hiring registers woUd be composed ci all applications which met minimum qualifications for the
posIdon classification. Screening would include a strengthened scoring process to accommodate - relative
excellence- In ranking names on register.
Registers would be built, as they are now, from special or routine advertIIement/ announcement.
DCA • central Office would announce those positions ( or maintain open- contInuous status) which cross
agencies; Agency Personnel Offices would announce ( or maintain open- contInuous status) for those
positions specific to the agency.
DOA · 65
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Once hires have taken place, agency personnel recorda and other employee data banks wcUd be
updated and the appIleationa m the hired employee V « Ud be purged from the fie.
We & lao recommend that the recruitment procesa as oudlned here. be Uy coordinated with the
automated Employment ManaqernMJt System ( currently underway). -
The nMaed roles and procedures for recruItnw1t, supported by a aystem mscanning and optical
storage media, wII shorten the tum- around time for the typIcII hiring cycle from vacancy notIIIcatIon to
candidate Interview for the following reaaona:
• Hiring registers for many more claaalflcatlona ( agency apecIfIc) can be prepared on site
• Due to an Increase In the number of open- contlnuous claaalflcatIona, the likelihoodma register
being Immediately avalable Is enhanced
• According to the DOA feaslbUlty study for Automated InfonnatIon Retrieval, when this ayatem Is
Implemented It wli result In the reduction of at least three FTEa and approximately $ 63,849 In
labor savings. Additional savings wli be realized when the ayatem Is fully Integrated with the
Employment Management and Automated ScorIng Systems.
• Continue the DOA plan to require an automated application fling and retrieval system
• Introduce leglalatlon or propose rule changes to strengthen the oversight policymDOA Central
Personnel
• Decentralize authority for recruitment declalon making conaIstent with this recommendation
• Out- atatlon Central Personnel anaIyata within selected agencies
• Select agency( a) for aaalmlatIonmpersonnel employees Into the agency employee structure.
DOA- 56
DEPARTMENT OF ADMINISTRATION ~ Brr19
PROPOSED RECRUITMENT PROCESS 1 OF 2 PAGES
~---~ I ---~ I---......, Mlal.. AUTIlOIlITY MIIlCY I'IIlSClNNIL CEIlTIlAL . PEaSOllllEL
VACAIlCY
IIOUnCATlOll
aQUEST MIIlCY • IlI'PLDIlIT NO
SUl'f'LEIlENTAL SPECIfiC aelSTEl IllD
LIST CL, ASS AVAI, LMLI
VIS
. VIS
..... LDIlIT NO
aelSTEI EIID
AVAI, LAILI
YES
1' llllT
INTElVIEW SUl'I'LENENTAL
LIST
L. r"
I'ItINT
SUPPLEMENTAL I LIST
NIlE IF SUITABLE L. r"
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NlllNG AUTHORITY
A
DEPARTMENT OF ADMINISTRATION
PROPOSED RECRUITMENT PROCESS
MlIlCY ........ L
UPDATE ~)
ALL
DATA
FILES
)
v
DOA- 88
EXHIBIT 19
20F2PAGES
CUTIlAL I'IltSOIIIIIL
.... 1-
The QerIcaI Pool operates a placement program for wnporBry clerical aervtces to state agencies
In the Phoenix and Tucson....... A permanent fuII. IIme coordinator operates the QerIcaI Pool In PhoenIx.
whIe the Tucson PaonneI Offtce operates a ...... program for Tucson. The QerIcaI Pool openIteB 88
a ...... I8If contained II1It within Team 1mthe Employment and Training SectIonmthe PMIOI'Inei
DivIIIonIn the DepartmentmAdrnlnl8batlon ( DOA).
The State Procurement Offtce ( SPO) within DCA has established temporary employment I8I'Vices
contracts for the Phoenbc .... with Asosa Personnel and Kelly Temporary ServIces. SPO has also
esbIbIished a contract for the Tucson .... with Asosa Personnel. The contracts Include a provision that
requhs state agencies to determine If the QerIcaI Pool can fila request for clerical services. If the QerIcaI
Pool cannot fli the request, the agency can request service from the appropriate contractor.
A comparison of the clerical position hourty rates Is listed below:
g, y § ASQSAHRLYRAIE ! Sf! ' YHBLY RAIE SIATE Hfl. Y RATE
Jr. Qerk se. 25 $ 5. eo
Jr. Typist 5.31 8.25
Sr. Typist 8.30 8.40
Jr. Secmary 5.70 8.40
Jr. Secmary 8.25 7.00
( PC expert)
Sr. Secmary 8.38 8.815
Sr. Secmary 7. eo 7.15
( PC expert)
EucSecmary 8.28 8.20
CIerIoIJ AIIIIIant •• 42
Qerk Typist I 8. a1
Qerk Typist II 7.11
Qerk Typist HI 8.02
Secmary 8.02
DOA- 69
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The coordinator Is responsible for evaluating applications. processing ~ ulsltlons. conducting
applicant orientation and administering tests, 1" 888II'ChIng. applicant and agency inquiries, preparing
correspondence and performing other cI.- tcaI duties. The QertcaI Pool has grown from about 600
partIcipanta In 1988 to appraxIn1ateIy 1,300 partIcIpanta In 1991. DurIng FY 1990- 91. monthly requisition
activity ranged from 36 to 245. In 1991. the clerical pool made 1,235 appoIntmenta for cI.- tcaI positions.
We recommend that the Clerical Pool coordinator In Phoenix and the Tucson Personnel OffIce fli
requests for temporary clerical services by using the SPO contracts for temporary employment services.
It Is also recommended that the coordinator determine which of the two temporary services contracts are
most cost effective for the state and make the placements accordingly.
In addition, we recommend the contract for temporary employment services be rebid based on the
entire demand for clerical pool services rather than the overflow alone.
Periodically, the clerical pool coordinator will manually count the number of clerical pool
participants working on a given day. On February 2, 1992, the clerical pool had placements for 890
participants. The 890 placements working an 8 hour day would result In 7.120 hours worked. The dlfferenC8
between the $ 8.02 hourly rate paid by the state for a clerk typist '" or secretary and the $ 7.15 hourly rate
paid by Kelly Temporary Services for a senior eecretary Is 87 cents. A . v1ngs of 87 cents per hour for
7.120 hours worked woUd be $ 6.194.40 per day. or $ 1,564.694 annually.
According to the clerical pool coordinator. pIacement8 range from one day to • months with a
possible extension to nine months. Most agencies initiaiiy request a clerk typist '" or 88CI' 8tary for a
placement of one month and later request an axtensJon. An average of 800 placements on any given day
would result In 1.200.000 hours worked annually. UsIng this example. a eavIngs of 87 cents per hour for
1,200,000 hours worked would result In a savings of $ 1.044.000 anm. BIly.
DOA · 70
AddItional cost aavlngs should be realized billed on a lower hourty rate due to the higher volume
of placements with the personnel agencies If the contracts are rebid.
In addition to the cost aavIngs. the recommendation wII 11IIO decrease the workIoBd for the
coordinator by ellmInatJng the need for fMlLBtIng applications, maintaining application tIe8, conducting
applicant orientation. 8drnlnlstnlg testa, maling applicant ICOI' 88 and ather related clerical duties. Thlswll
alto eliminate the need for the DCA Data Center to print applicant ICOI' 88 for maling.
........ hMl
Implementation of the recommendation can be accomplished by doing the following:
• Rebidding the SPO contracts for temporary employment servIcea to reflect the entire de'nand
for temporary clerical services. The contract should again be mt* l- awarded to provide different
hourty rates for the various clerical positions. The state should realize a decrease In the hourty
rates as a result of expanding the volume of placements
• The clerical pool coordinator should act as the coordinator tor the agency clerical pool requests.
The coordinator shol'd continue to receive the requests and determine which temporary servtces
contract wli provide the most cost effective placement for the agency. For example. under the
current contracts, the hourty rate for a Jr. Typist from Asosa Is $ 5.31 whle the hourty rate from
Kelly Is $ 6.25. By acting as a coordinator tor the agencies requesting clerical help the
coordinator can obtain clerical services at the most cost effective rates available on the contracts
and more than pay tor the coordinator's salary.
DOA · 71
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< eN CONDNUOUS ANNOUNCEMENTS
Omd.....
A personnel aIIIce ( APMS affIce or centnII affIce) which receives a requisition requesting that a
position be flied has two options for developing a t* Ing list. " a registermqusllIed candidates 8XIIt8 for
the class being recruited, a hiring list can be returned to the agency within five to I8V8I" I days. " an
acceptable register does not exist and It Is neclllll'Y to advertise ~ position and generate a new register,
the process wi take from three to five weeks to provide a hiring list to the agency. In order to maintain a
constant pool of avaIabIe candidates In a register for C8I1aIn cIaasea of jobs, the DOA personnel dIvIIIon
has 8ItabI1shed certain claues of positions that are open continuously for applications. AppIIcatIona
received for classes which are advertised open continuous are evalLBted on an ongoing basis. Requtsltlons
requesting a hiring register for such positions can therefore be provided within the five to seven day time
frame.
The state currently has approximately forty positions advertised on an open continuous basis out
of approximately 1500 classes. Open continuous applications are used for positions or classes which
experience high turnover and require continual recruitment or may be hard to fli. For example, In Fiscal
Year 1990- 1991, 1,253 of the 4,733 requisitions received by central office were for Oerk Typist I, II, III and
Secretary positions. These four positions have therefore been announced open continuous for applications.
Handling the four clerical positions which comprise .3% of the Job classes ( 4 of 1500) through the
open continuous system saves two to four weeks for approximately 25% of agency requests ( 1253 of 4733).
We recommend expanding the use of open continuous announcements In · order to Increase the
number of requests that can be filed In one week or 1888.
DOA- 72
We further recommend that a dstaled analysis be performed to determine which positions are
approprtate to be announced on an open continuous buIs. Baaed on this analysis we further recommend
that a goal be established. As an axample, announcing 20% mall job cIa8ae8 on an open continuous buIs,
could ftIILft In approximately 80% m agency requests being tiled In one week or less. .. ,
AgencIes wi aave an average of three weeks waiting time on III poeItions that are announced on
an 0I* l continuous basis. The savings In waiting time, bued on 80% m4,733, ,.. the 1,253 a1l' 18dy on
open continuous, leaves about 2,500 requisitions, each 88Ylng three weeks for atotaI88Ylngsm7500 weeks
or 140 years of waiting time each year.
Irq......
expansion of open continuous announcements should be phased In as positions are identified. A
phase In of new open continuous positions wUl allow for the continued orderly processing of applications.
DOA- 73
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ESTABLISHMENT OF tIRING usr
Omd......
Recruitment for most state agencies Is handled by the Employment and Training S8ctIon within the
Personnel Division of the Department of Adrnlnlltr8llon ( DOA). P.-. onneI offIce8 have 8180 been 8ItabI1shed
In the Departments of HIIIth ServIce8, Economic 8ecIdy, CorrectIons, TnnportatIon. Admlnlstndlon and
Youth Treatment and RehabiltatIon. A CapItol MIll PII1IOmII 0fIIce ( CAMP) hu 8180 been 8ltabl1Ihed to
provide a variety of personnel aervIces to thole agencies wIthcU their own personnel oIIIce. n. eoffIce8
are referred to as APMS offIce8. The APMS offIc8I conduct the same recruitment functions .. the central
personnel office for recruitment that Is conducted within the agency. The eentr8I personnel office conducts
a recruitment for the APMS agenctes when the recruitment wit be open to applicants outside the agency.
An APMS agency which desires to conduct a recruitment outside the agency submits a requisition
to the APMS office for review and submittal to the central office. Requisitions from state agencies are
received In support services.
Requisitions for outside recruitment are entered Into the Applicant Tracking System. The requisitions
are then submitted to ateam manager who checks the requisition, makes certain notations on the requisition
and distributes the requisition to an analyst. The analyst receMng the requisition checks the Information on
the requisition and then determines whether a register already exists from which a hiring list can be run.
When an acceptable register exists, the requisition and any analyst instructions are SUbmitted to support
services for a list to be run. Support services runs the hiring list, copies applications of persons on the list,
attaches hiring Instructions and submits the packet to the appropriate APMS office. A flow chart of this
process used to establish a hiring list from an existing register Is Included In appendix. Approximately 11
minutes of an analyst's time Is required to review each existing hiring list, this equates to approximately .45
FTE or an average of 16 hours per week.
The current process for developing a hire list Involves an aneIyst at the APMS agency, and central
office support staff, ateam supervisor and an analyst. Central office estimates It wli receive approximately
4,750 requisitions during fiscal year 1992. According to a Peraonnel Division report tided Requisition
Summary By Team for the period July 1, 1990 through June 30, 1991, central office handled 4,733
requisitions. The review effort requires approximately .45 FTE.
DOA- 74
ApproxImately 4.5 days elapse once the requisition Is received at the centrII office untl the hiring list
and the copy of the application are submitted to the hiring supervisor. The 4.5 days Is made up of 4 days
to generate the hiring list and .5 days to photocopy the applications.
Be..........
We recommend the APMS oftIces be authorized to I' 8III8w existing registers for recruitment that wi
be open to applicants outside the agency to d8termIne Ifan accepIabIe register exists. When an acceptable
nJgIstar exists. the APMS office 8haII run the hiring lilt. A copy of the hIrtng list can be printed at the APMS
office and at the centrII. office. Support services wi! then euppIy the APMS Offtce with copies of the
applications for submittal to the hiring supervisor.
ThIs recommendation does not Include the CPU as hiring lists are currently being provided on an
expedited basis.
We also recommend that after a hire has been conducted, the APMS offtce certify the hire was In
compliance and clear the hire list on the Applicant Tracking System ( See point - Hire Ust Compliance And
QearIng).
-- The recommendation wli provide the following benefits:
• Reduce the workload for central office support staff relating to hiring lists which are
developed from existing registers, this workload reduction equates to approximately .45 FTE
of an analyst's time
• Reduce the number of times a requisition must be handled by DOA pereonnel by printing
a hiring list at the APMS office
• Reduce the time required to establish a hiring list from an existing register by eliminating the
need for all requisitions to be submitted to the central offtce and thus reducing the time It
takes to 61 a vacant position by approximately three to four days.
DOA- 75
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• Develop procedures for generating hiring lists at APMS offices
• Establish capablity of printing hiring lists at baIh APMS offices and central affIce
• Train APMS employee on system.
DOA- 76
JOB APPLICATION EVN IMDON DMNG
CIInIJI · ...
Applications for posted jobs are received by the DCA Perwonnel afftce and IUbmIlted to an .... yst
for an 8V8IuatIon to d8termIne training and experience ratings. Once the applications have been lMlluated.
quBIIied appIlcanIa are placed on a register which II then UI8d to provide the t* Ing agency with a hiring
list of candidates for a paeItIon.
The time frame for evaluating applications II as falowa. The closing date or fling d88dl1ne for an
8JIflCU1C8m8f1t ends on a Friday. DurIng the next week, the pet' 8OI'ii18I afftce wli hold the applications that
have been submitted and receive additional applications from DES offices or ather designated locstIons.
On Wednesday of the second week, the Personnel office feels that all the appIlcatlons would have been
receN8d and wi then begin evaluating the applications.
' nrect
When a register of qualified candidates exists for a class. the hiring agency can usually receive a
hiring list within five to seven days after a requisition Is received by the DOA Personnel central oIfIce. If a
register does not exist and It Is necessary to advertise the position and develop a new register. the process
wit take between three to five weeks to generate a hiring list for the agency. The time It takes to generate
a hiring list for positions that must be announced II a major Issue for state agencies.
We recommend that the process or tine frame for evaluating applications be changed. DOA
Personnel IhouId evaluate applications for poeItIona located In Phoenix or Tucson beginning on Monday
of the week following the closing date or fling de8dllne. DOA Per80MeI currently evaluates applications
approximatelya week and a half after the fling dBtIlne. ThIs II done to aIICM IUIIIcIent tine for applications
to arrtve from other locstIons where applications were 8UbmItted. AppIIcatIon8 submIlted for Jobs In Phoenix
or Tucson which close on a Friday IhouId have auffIcIent time to arrive In the personnel centrBI afIIce by
the middle of the following week for an evaluation.
DOA · 77
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ThIs recommendation wII eliminate one week from the current process for announcing a position
and generating a hiring list, for approximately two thirdsmthe positions ltat8Wlde. ThIs 888UI1188 that the
turnovermpositions In Phoenix and Tucson 18 the same 88 l18t8W1de turnover.
Implementationmthe recommendation can be accomplished by changing the current practicem
evaluating appIlcatIon8 during the second week after the Friday cIoIIng date of the announcement for Jobs
located In the Phoenix and Tucson areas. Applications for Jobs In those 81' 888 wcUd Instead be evaluated
beginning on the Monday Immediately following the Friday closing date.
DOA · 78
After an agency has compIII8d Ita IntervI8ws and hired an applicant, the agency returns the hiring
list to the Central Office. The Centr8I Office wit nMewthe hiring list to eneure the form has been completed
correctly and that the hire was conducted In compliance with pnonneI rules. Once the hire has been
deBmined to be In compliance, the hiring list Is returned to Support ServIces to be cteared from the
compLUr Applicant Tracking System. The process LB8d by the Central 0Iftce for certifying that the hiring
was In compliance and clearing the hiring list Is shown In Appendix .
Based on Interviews with three APMS managers and the CAMP office, It appeBl' 8 that APMS staff also
review hiring lists to ensure forms are completed correctly and the hiring was In compliance. After this
review. the hiring lists are submitted to the Central OffIce for their review.
The current process for certifying compliance and clearing the hiring list Involves three different
persons In central Office. Support staff date stamp the hiring list when It Is received and submits the list
to a team supervisor who conducts a review of the list and distributes the list to the appropriate analyst.
The analyst reviews the hiring list to determine compliance. If the analyst believes the hiring was not In
compliance the analyst wli contact the APMS office or hiring supervisor. If the hire was not conducted
legally, the hire may be nullified or additional Interviews may be required. If the hire was In compliance or
questions regarding the hire have been resolved, the analyst signs off on the hiring list and submits the list
to support staff for clearing of the list from the Applicant Tracking System. Related documents are pulled
from a file of certified requisitions, the list Is checked for signature, codes and analyst Initials and the list Is
cleared from the computer. The hiring list, requisition and attachments are then fled In the cleared hiring
list ....
intI"!
The compliance review check by an analyst wli take a minimum amount of time when a hire Is In
compliance. Assuming each analyst takes one minute to I' 8VI8w each hire this results In a total of 78 hours
of work per yesr or .03 FTE based on 4,733 hires per year.
DOA- 79
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Resa ..........."
We recommend changes to the process for certifying a hire was In compliance and for clearing the
hiring list.
first, we recommend that the APMS oIftce8 conduct the 08ItIfIcatI0n that the hirewas In compliance
and that the central office not duplicate this check.
Second, we recommend that the APMS oIftce8 clear the hiring lilts on the Applicant Tracking System
once the hire has been determined to be In compliance.
After the compliance review and clearing of the hiring list has been completed, the APMS hiring list
should be fled as follows:
• Hiring lists generated by the APMS office should be fled with the requisition at the APMS office
• Hiring lists generated at the central office should be returned to the central office for fling.
The proposed recommendations wit eliminate aduplication of functions that Is occurring In the hiring
compliance review and wli reduce the workload for analysts and support staff In the central office.
ItmIenwMi"
• ThIs recommendation should be Implemented In conjunction with the recommendation to
establish hiring lists at APMS offices.
DOA- SO
SlftIMSOR SIGNATURE OF tiRING UST
Employment Support Servlces fII1CtIona 88 support staff within the Employmentand Training SectIon
of the Personnel Division In the Dep8rtment of Adridsbatlon. Once a I* Ing list has been 8ltabl1lhed for
an agency, the support staff copy d88k provides the hIrtng agency with a copy of the hlrlnglill and copies
of the applications for persons on the list. Once the copy d88k has cornpIed the hIrtng list and applications,
the documents are submitted to a support aupervIaor for aIgnature and 11I' 8 returned to the copy d88k for
aubmIItaI to the agency. The purpose of the aupervIaor aIgnature II to provide the hiring agency with the
name of a contact person I they ahcdd have any questions regarding the hiring list.
Under the process described above, one of the support supervlaors Is required to sign each hiring
list. The supervisor does not review the hiring list or applications which are attached to the list.
RtM; g1l•• rWIow-
We recommend that the support supervisor not personally sign each hiring list and that support staff
at the copy desk be authorized to write the supervIsor's name on the hiring list and Include their initiais.
This recommendation wli eliminate a step In the current process which requires an exchange of the
hiring list and applications between support aervIces · staff.
'"'....•.. h « l
Implementation of the recommendation can be accomplished byauthorizing copy desk staff to write
the aupervIsor's name on the hiring list.
DCA - 81
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BJMNATEDC REQUREMENT TO FORWARD JC. § Q fORMS TO GAO
DOA finance DIvIsIon ( GAO) requires 11I1 state agencies to forward copiesmtheir TC060 claim forms
to GAO for processing. These forms are II8I1t to GAO In betche8, without any support documents. GAO
then combines them Into larger batches and sends them to the Data Center for Input Into the AFlS system.
Some large state agencies, with their own In- house computer syIItems, such as ADOT, DES, DOC, and
AHCCCS, transmit their Information via computer tape and the information Is directly loaded Into the AFlS
system. There are currently 17,358 TC060 forms Input each month by the data center.
On July 1, 1992, the AFlS II system Is sched~ ed to become operational, and wli be used by GAO
as Its state- wlde accounting system. The new system wli provide & tate agencies with the on- line capablity
to directly Input their claim Information. Therefore, this process wli eliminate the need to forward TC060
forms to GAO for 11I1 users except 20 to 25 small boards, subsequently the majority of the Input by data
center personnel wli be eliminated.
GAO has assigned 1.5 Grade 13 FTE's to review and batch fNery Te- 50 forwarded to GAO. The
Input of the 17,358 Te- 50 forms by the data center personnel requires 440 hours per month or 5,280 hours
annually which equates to approximately two FTE.
WIth the Implementation of theAFIS II system the majority of Te- 50 forms wli be Input on- line by
811 agencies with access to the system. In those Instances where agencies are not using the AFlS II system,
the TC060 form should be sent directly to the data center for Input, without a review by GAO.
elimination of the requirement to forward TC060 forms to GAO wlll'eIUt In a reduetlonm 1.5 Grade
13 FTEs, at salary of $ 16,618 per year, plus 23% ERE for a cost savings of 20,400. In addition, the on- line
entry of Te- 50 forms wUl eliminate the majority of the data Input performed by the data center. Thus
DOA · 82
eliminating the need tor two Data Entry Operator II positions at a 88Iary of $ 13,431 and $ 17,286 and ERE
of 2nI for a cost savings of $ 37,800.
......... h"
• Determine 8ffectIve date tor AFlS II
• D8termIne dates tor agencies to enter Te-& o'. directly
• Develop a ached"' e tor the workload reduction
• Eliminate the positions 88 the workload Is eliminated.
DOA- 83
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DESIGNAN " TO PREPARE 81.1. FORMS
QmnI....
The Int8l11ll Revenue ServIce ~ RS) requires that ell paynwIta to contraetor8 for pn: AslllonBI and
outside services with the State be reported to bath the IRS and the contractor through the &. e d a .' 099"
form ( or on magnetic tape to the IRS). The AFlS I ayIt8m does not maintain vendor Information and
therefore cannot produce the · , 099 forms.. GAO his 888Igned two FTEa. Grade 17and Grade 15. to collect
such information on an ongoing basis and Issue 1099 Forms at the end d each year.
Two FTEs. Grade 17 and Grade 15. are uslgned to collect such information on an on- goIng basis
and Issue 1099 Forms at the end of each year. In addition. the 1993 budget request contains a request for
an additi0nai FTE to be responsible for · cornplatJon. submission. and timely correction of information
submitted to the IRS. ·
Rei'""'. t¥ ons
We understand that the APIS II system wli have a - vendor master" fie and have the capablltIes to
produce ., ogg- fonns ( or magnetic tape) at year end.
Using APIS II to generate ., ogg- fonns wli reslJt In the elimination of two FTEa. Grade 17 and Grade
15. at annual salaries of $ 21.000 and $ 19.000. respectively. plus 23% ERE for a cost reduction of $ 49,000.
Not funding the additional requested position wi reUt In a cost avoidance d $ 27.900.
The following key steps are required In implementation:
• Determine APIS II implementation date
DOA- 84
• Determine which agencies wi participate rN8f which time periods In calendar year 1992
• Determine how pre- AFlS II amounts wi be compIed
• Establish new reporting procedures
• BImInate positions as workload Is completed.
DOA- 85
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DISOOUNrS Aft) PENALDES
DOA finance Operations Is responsible for the processing d & II DOA divisions bill. except thole
Incurred by the Risk Management DfvIsIon.
The DOA. Finance Division Is responsible for the payment d 811 claims genended by IIate agn: les.
ClaIms are forwarded to DOA FInance either by the Tc. ao claims form or on computer tape. DOA FInInce
DtvIsJon stated that the standard ttJm. around time for the generation d a warrant from a Tc. ao claim form
Is three days, and from claims submitted on magnetic tape Is only one day.
certain vendors offer discounts of one to two percent for payment of invoices within a certain
number of days of the Invoice date or the date or receipt of the invoice.
We were Informed that DOA divisions and state agencies do not process the vendors invoice and
forward the claim to . DOA Finance DMslon In time to take advantage of the discount offered by the vendor.
Additionally, some divisions do not pay their Invoices In a timely manner; therefore, penalties are
assessed by the vendor for delayed payment.
DOA Finance estimates that In the General Services Division, the Motor Pool and the Print Shop
could each save approximately $ 300 per month If their invoices were paid In a timely manner and the
discounts offered by the vendors were taken. Additi0naiiy, In the Telecommunication unit, we examined
Invoices from U S West for the months Of September. OCtober and December. 1991. During these three
months, the State had been assessed eNer $ 11.000 In penalties for late payment.
Under the current accounting process. there Is no way to aceuateIy identify the amount of
discounts not taken by the State. However, during 1990. the State spent approximately $ 773 milton on
equipment, food and other operating expenses and $ 74 milton In prof8I8IonII eervtcea. If only 5% d these
vendors offered discounts of 2% for earty payment, and If only 50% d such offers were utlized. the State
would reduce Its costs by approximately $ 423,500 ( see Exhibit 20. C81ccAatton of Discount Lost).
DOA · 86
Under the current accounting proc888, there Is no way to accurately identify the amount of penalty
or IrUrest that has been paid by the State. However, the late payment penalties .... sed on the State's
telephone bIIa alone, extrapolated on an annual basis, add up to at Ieut $ 40,000.
Ae! WllllWM..
All the invoices should be paid by the State In a timely manner. Each IlCJMCY or dMIIon shaUd..
a tIcIcIer system toftag Invoices that are due for payment. Priority should be given to invoices that oIfer
discounts, and no invoice should be paid any later than Ita due date. No Interest or penalty charge for
cWayed payment should be tolerated and accepted.
SPO claims that I the State paid Its bIIs on time SPO wcUd have a better negotiating tool with
vendors In reducing future contract amounts.
811_
We estimate that the net effect of requiring all Invoices to be paid early enou