Restructured Higher Education Act 2005

1. Restructured Higher Education Act 2005 The Restructured Higher Education Financial and Administrative Operations Act of 2005 (Restructuring Act) provided public colleges and universities with more operational and administrative autonomy in exchange for a renewed commitment to their public missions. Higher Ed committed to 12 state goals – “state asks” – by formal resolution in 2005: • Access • Affordability • Academic offerings • Academic standards • Student progress and success • Articulation and dual enrollment • Economic development • Research • Enhancing K12 • Six-year plans • Finance and administrative • Campus safety and security

2. Restructured Higher Ed Act • Institutions are classified into one of three levels of financial and administrative operational authority. All institutions enter Level I receive minimum operational authority. • Level II criteria were established by the 2008 General Assembly. Level II institutions receive additional authority in two of three areas – capital outlay, information technology, and procurement. Institutions enter Level II through a “memorandum of understanding” with the Governor and, respective cabinet Secretaries. • MOU’s signed with: GMU, JMU, ODU, RU and VMI in 2008, and in subsequent years with LU, CNU and VCCS (the later two form technology and capital outlay) • Level III- The highest level of financial and administrative operational authority is granted through a “management agreement” between the institution’s Board of Visitors, the Governor, and the General Assembly. Level III institutions have operational authority in the areas of capital outlay, information technology, procurement, human resources, and finance. • Master Agreements signed with: CWM, UVA, VT in 2006, and VCU in 2008.

3. UMW Timeline • April 2008 DPS Procurement Review. • February 2010 DPS Interim Review. “It is recommended that UMW evaluate the level of staffing for the procurement workload” • November 2011 Requested/Received $100 K delegated authority for goods • August 2012 DPS Review • October 2012 UMW received satisfactory rating • February 2013 Request full delegated authority from DPS • April 2013 UMW granted full delegated authority • July 2013 with BOV approval, initiated MOU’s • October 2013 received approval for Tier II status

4. UMW Journey to Tier II • Developed Contract Administration training and certification • Quality Assurance: surveys, web forms, enhanced contract renewal process • Launched Procurement Services-administered SPCC cardholder annual training in UMW Global • Monitor/ Track demonstrated savings • Recognized as a leader within state for liberal use of new “reverse auction” method of procurement • Practice opportunity seeking to identify new contracting opportunity • Utilized statewide cooperative contracts where practical • Department Buyers fully certified Virginia Contracting Officer, or higher • Achieved full delegated authority from DGS/DPS • Collaboration with IT for an efficient procurement path for IT purchases • Tracking departmental savings impact, over $660,000. in FY13 • Marketbasket comparisons for certain commodities • Realigned staff to assign specialitycommodities/major categories • Instituted “fresh eyes” contract review for internal control purposes • Electronic signature procedure • Established small purchase procedures for non-construction professional services • Revised protocol for subcontracting report submissions on contracts over $100K • Improved contract tracking to include sole source and cooperative contracts • Instituted “sweep” notification to assist users meet spcc sign-off timeline • Added online forms/reporting for buyer and vendor surveys • Edited certain standard forms w/ AG input for accuracy • Greater focus on Supplier Diversity efforts

5. August 2012 DPS Review of 527 Transactions

6. Governing Rules • Farewell : -Agency Procurement and Surplus Property Manual (for non construction procurement) -Commonwealth of VA Vendor’s Manual -Sections of VPPA (for non construction purchases) • Welcome: -Rules Governing Procurement of Goods, Services, Insurance and Construction by a Public Institution of Higher Education of the COV, Chpt. 4.10 of Title 23 Code of VA -Purchasing Manual for Institutions of Higher Education and their Vendors

7. Competition is the Priority To the end that the Institution shall obtain high quality goods and services at reasonable cost, that all procurement procedures be conducted in an open, fair and impartial manner with avoidance of any impropriety or appearance of impropriety, that all qualified vendors have access to the Institution's business and that no offeror be arbitrarily or capriciously excluded, it is the intent of the governing body of the Institution that competition be sought to the maximum feasible degree, that procurement procedures involve openness and administrative efficiency, that individual public bodies enjoy broad flexibility in fashioning details of such competition, that the rules governing contract awards be made clear in advance of the competition, that specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor, and that the purchaser and vendor freely exchange information concerning what is sought to be procured and what is offered. The Institution may consider best value concepts when procuring goods and nonprofessional services, but not construction or professional services. Professional services will be procured using a qualification-based selection process. The criteria, factors, and basis for consideration of best value and the process for the consideration of best value shall be as stated in the procurement solicitation.

8. Initial Impact • Non Technology Purchases of Goods/Services • UMW can exercise cooperative agreements without DPS approval loop • No longer required to use mandatory contracts (although encouraged where feasible) • Initial changes: VIB / spcc 5 day rule • Training for Procurement Staff, review/revise documentation • Technology – VITA approvals no longer required