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HOUSE BILL 2867 Sections 2 through 4

Oregon Laws 2009, Chapter 880. HOUSE BILL 2867 Sections 2 through 4. Key Features For: Deciding When To Contract For Services. State Procurement Office December 17, 2009. HB 2867 -- Policy Thrust. The major policy thrust of HB 2867 regulates procurements of contracts for services.

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HOUSE BILL 2867 Sections 2 through 4

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  1. Oregon Laws 2009, Chapter 880 HOUSE BILL 2867Sections 2 through 4 Key Features For: Deciding When To Contract For Services State Procurement Office December 17, 2009

  2. HB 2867 -- Policy Thrust The major policy thrust of HB 2867 regulates procurements of contracts for services. A contracting agency may conduct a procurement for services estimated to exceed $250,000 when the contracting agency: • Conducts a written cost analysis; or • Determines, in writing, using the contracting agency’s personnel to perform the services is “not feasible”. • Cost Comparison Analysis is not required

  3. Code Defines ServicesORS 279 A.010 (1)(kk) “Services” mean services other than personal services designated under ORS 279A.055, except that for state contracting agencies with procurement authority  *  *  *  , “services” includes personal services as designated by the state contracting agencies. 

  4. “Not Feasible” Determinations Special circumstances require the contracting agency to procure the services by contract. Special circumstances may include, but are not limited to, circumstances in which [one of the eight listed justifications exists] (A)Grant Requires an Independent Contractor. (B) “Law” Requires an Independent Contractor. (C) Service and Maintenance Contracts Incidental to Real and Personal Property Purchases and Leases. (D) Emergency Contracts.

  5. “Not Feasible” Determinations (E)Contracts That Will Be Completed in Six Months. (F) Agency Personnel Lack Expertise, Training or Experience. (G) Policy Goals, Avoiding Conflicts of Interest, or Ensuring Unbiased Findings. (H) Urgent or Temporary Need for Services. The Contracting Agency Must Make Written Findings to support the “Not Feasible” Determination

  6. Cost Analysis – step 1 Compensation, benefits & other costs Estimate the contracting agency’s cost of performing the services The cost a potential contractor would incur in performing the services Agency may not procure if the sole reason the Contractors costs are lower due to lower compensation and/or benefits.

  7. Cost Analysis – step 2 Cost to Agency – compare: • Agency costs • Contractor costs An agency may proceed with the procurement -- Only if the contracting agency would incur more cost in performing the services with the contracting agency’s own personnel and resources than the contracting agency would incur in procuring the services from a contractor. EXCEPTION: May procure if Contractor cost is higher if it is determined Agency lacks resources to do it in-house timely

  8. HB 2867-- Sections 2 through4 Do NOT Apply to: (1)Estimated contract price does not exceed • 250,000. (2) Client services as defined by OAR125-246- 0110. (3) Exempted from the Public Contracting Code Under ORS 279A.025; or a statute outside the Public Contracting Code, (4) Personal services designated by local contract review boards under ORS 279A.055(2).

  9. HB 2867-- Sections 2 through4 Do NOT Apply to: (5) Cities with populations that do not exceed 15,000 and for Counties with populations not greater than 30,000 (6) Community colleges with no more than 1,000 full-time equivalent students. (7) Special districts (8) Diking districts (9) Soil and water conservation districts (10) The Port of Portland

  10. Implementation& Reporting Supporting Rulemaking Activities: DAS Draft Rule (Applicable to state agencies subject to DAS procurement authority) OAR 125-247-0110(primary rule for cost analysis, feasibility determination & department report.) DOJ Rules (Potentially applicable to non-DAS state agencies) OAR 137-047-0250 • HB 2867 is operative January 1, 2010 • Applies to procurements for services 1st advertised or otherwise solicited and contracts entered into on or after January 1, 2010 DAS reports consultative results to Legislative Assembly January 10, 2011

  11. DAS Rule Schedule & Communications & Tools Schedule: • January 1, 2010 – Anticipated effective Date of DAS Rules • Click “Rules/Statutes” at http://procurement.oregon.gov for full copy of draft rules • January 26, 2010 – General DAS Rules briefing session • February 3, 2010 – 2nd General DAS Rules briefing session Communication Plan: • December 8, 2009 – Briefing the CIO Council • December 17, 2009 – 2nd HB 2867 Briefing • January – February DAS Rules Briefings Tools/Helps: • Model forms/templates • Flow chart guide • DAS Rules commentary • Agency Legal Counsel

  12. Contacts Thank You • DAS Rules • Karen Hartley at karen.hartley@state.or.us • Brenda Brown at brenda.j.brown@state.or.us • Dianne Lancaster, Chief Procurement Officer • Dianne.l.lancaster@state.or.us • Marscy Stone, External Operations Manager • Marscy.d.stone@state.or.us • Agency DOJ Legal Counsel • Agency Designated Procurement Officer (DPO)

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