In response to issues with computer services contracts, Gov. Brad Little is working with Jeff Weak, administrator of information technology services, and the purchasing department to improve procurement.
As part of this, Little named Bryan Mooney — formerly vice president of operations for MWI Animal Health, a Boise-based supplier of animal health products for veterinarians — to head the Department of Administration, which includes purchasing. The previous director was former legislator Bob Geddes, who has retired.
Most recently, citizens have complained about outages at the Department of Motor Vehicles, but past years also saw contract issues with Molina Medicaid Solutions and the Idaho Education Network, intended to provide broadband internet to schools.
Vendors aren’t always happy either, with some reporting that Idaho is more difficult and less transparent to do business with than other states.
“Other states and federal agencies provide a formal debrief with every procurement that allows industry bidders to gain feedback on shortfalls of their proposals,” said Monte Brookshier, CEO of CRI Advantage Inc., headquartered in Boise, which has been responsible for 100 to 200 projects with Idaho, as well as with Nevada, California, and federal agencies. “Over time, this allows industry to be more competitive.”
With Idaho, vendors need to submit a Freedom of Information Act request.
Little said on Jan. 7 during his first State of the State message that he was frustrated with the DMV issues and that he had called for Mooney to review state purchasing and contract administration processes.
Part of the new process involves aggregating purchases statewide to save money, said Weak, whom Little retained from predecessor Gov. C.L. “Butch” Otter’s administration.
“Instead of doing siloed purchases 60 to 70 different ways, we will harness the state’s purchasing power and have statewide solutions for specific products,” such as Microsoft software, Weak said. “Software licenses are like buying bulk at Costco – the more you buy, the more the per unit cost goes down.”
In addition, they want to make it easier for agencies to use the cloud, or third-party storage and IT services — typically cheaper than an organization managing its own. “We are anticipating having a cloud solution for agencies this coming year,” he said.
The purchasing department is also working to make the bid process more collaborative, while at the same time ensuring vendors have a level playing field, said administrator Sarah Hilderbrand, who serves on the board of directors for the National Organization of State Procurement Officials.
“Not being able to openly negotiate terms and conditions after an [request for proposal] process is surprising to some vendors,” said Valerie Bollinger, state purchasing manager. “In the private sector, it’s very normal. In some states, they’re able to negotiate more.”
Vendors also have misperceptions about Idaho’s terms and conditions. “For example, there is the perception that Idaho does not allow vendors to limit liability,” she said. “We actually do that on a regular basis.”
Idaho could do more to engage vendors before procurements, Brookshier said. “The earlier industry can be aware of the requirement and provide feedback, generally the higher quality the proposal responses would be.”
The purchasing office is doing more Requests for Information, Hilderbrand said, which Brookshier acknowledged. In addition, the department is proposing a rule this legislative session for a new type of contract called “invitation to negotiate,” which would be more solution-driven and iterative, and would allow the state to negotiate with multiple bidders during the process. “It’s going to save money because we can fine-tune solutions during the process,” she said.
For its part, the purchasing office wishes vendors would ask more questions in advance and would like to see more agencies using independent validation for high-value contracts. This could add $300,000 to $400,000 to multimillion-dollar IT contracts but would help agencies better manage the development process. “That investment upfront is going to ensure the success of that contract,” Hilderbrand said.