HOUSE BILL 2867 Sections 2 through 4

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HOUSE BILL 2867Sections 2 through 4
Oregon Laws 2009, Chapter 880
Key Features For Deciding When To Contract For
Services
State Procurement Office December 8, 2009
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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
  agencys personnel to perform the services is
  not feasible.
• Cost Comparison Analysis is not required

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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. 

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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.

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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
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Cost Analysis step 1

• Compensation, benefits other costs
• Estimate the contracting agencys 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.
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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 agencys own personnel and resources
than the contracting agency would incur in
procuring the services from a contractor. EXCEPTIO
N May procure if Contractor cost is higher if it
is determined Agency lacks resources to do it
in-house timely
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HB 2867-- Sections 2 through 4
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).

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HB 2867-- Sections 2 through 4
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

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Implementation Reporting
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

• 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

DAS reports consultative results to Legislative
Assembly January 10, 2011
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DAS Rule Schedule Communications Tools

• Schedule
• December 15, 2009 Public Hearing for DAS Rules
• Last day for public comment
• Click Rules/Statutes at http//procurement.oreg
  on.gov for full copy of draft rules
• January 1, 2010 Effective Date of DAS Rules
• Communication Plan
• December 8, 2009 Briefing the CIO Council
• January February DAS Rule Briefings
• Tools
• Model forms/templates
• Flow chart guide

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HB2867 Draft Process Overview
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Contacts

• DAS Rules
• Karen Hartley at karen.hartley_at_state.or.us
• Brenda Brown at brenda.j.brown_at_state.or.us
• Dianne Lancaster, Chief Procurement Officer
• Dianne.l.lancaster_at_state.or.us
• Marscy Stone, External Operations Manager
• Marscy.d.stone_at_state.or.us
• Agency DOJ Legal Counsel
• Agency Designated Procurement Officer (DPO)

Thank You