MEETING DATE
2/28/2013 |
BUREAU SUBMITTING THIS REPORT
Executive Office |
RESEARCHED BY (PRINT NAME)
Richard Reed |
REVIEWED BY (PRINT NAME)
Richard Reed |
REPORT DATE
02/07/2013 |
APPROVED BY
Robert A. Stresak |
DATE APPROVED
02/13/13 |
PURPOSE
Decision Requested |
FINANCIAL IMPACT
No
|
| ISSUE: |
| Should the Commission revise Commission Policy A-3 – Contracts to allow an increase in the Executive Director's expenditure authority to enter into contracts and interagency agreements from $50,000 and to amend contracts from $12,500 to amounts to be determined by the Commission? |
| BACKGROUND: |
In 1981 the Commission adopted Policy A.3 – Contracts. It was revised in 1985, then, again in 2010.
Existing policy (see Attachment A) authorizes the Executive Director to enter into contracts or interagency agreements of $50,000 or less without prior approval of the Commission. It also authorizes the Executive Director to make modifications/amendments for (1) extension of time, (2) an increase in cost up to $12,500, and (3) changes in contractual services or solutions to other technical problems without prior commission approval. |
| ANALYSIS: |
When Commission Policy A.3 was adopted, in 1981, POST certified and supported 21 contract training courses totaling $1.4 million. In 2010, the last time A.3 was revised, there were 130 contracts, totaling $20.9 million. In Fiscal Year 2012-13, there were 103 training contracts, totaling $18.809 million. Presently, 40 of those contracts range from $92.00 to $49,997.25; 21 range from $50,285 to $100,000; and 41 range from $110,400 to $2,043,357.
Training contracts are becoming an increasingly significant portion of POST’s portfolio. For FY 2013/14 the average training contract is $182,611. The Commission meets every 4 months. Increasing the Executive Director’s authority to approve or modify contracts between Commission meetings would allow more flexibility and timely execution or modifications of contracts. Should the Commission approve an increase in the Executive Director’s authority to approve contracts to a higher amount, contracts above $50,000 will continue to be reviewed by the Legal Services Office of the Department of General Services. The Finance Committee and Commission will continue, to annually review and approve/disapprove these contracts at the February meeting when all recurring contracts are submitted for approval. Expired, one-time contracts will be included in the contract synopsis report provided to the Commission at its October meeting. Additionally, all POST financial records are subject to audit by the State Controller on a biannual basis.
Due to the increased reliance on training contracts to deliver specialized training, staff could expedite delivery of training to the field if the Executive Director were authorized to approve new contracts and contract amendments above $50,000 and $12,500, respectively. |
| RECOMMENDATION: |
| Staff recommends that the Commission assess whether to revise Commission Policy A.3 – Contracts, to allow the Executive Director to contract at an amount greater than $50,000 and to modify contracts at an amount greater than $12,500, without prior Commission Approval. |
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