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AGENDA ITEM REPORT

Title: Report on the Contract Enhancement Project
REPORT PROFILE
MEETING DATE
6/21/2017
BUREAU SUBMITTING THIS REPORT
Administrative Services Bureau
RESEARCHED BY (PRINT NAME)
Chuck Young / Merrill Domondon
REVIEWED BY (PRINT NAME)
Dave G. Cornejo
REPORT DATE
04/25/2017
APPROVED BY
Manuel Alvarez, Jr.
DATE APPROVED
06/06/2017
PURPOSE
Information Only
FINANCIAL IMPACT
No

ISSUE, BACKGROUND, ANALYSIS, & RECOMMENDATION
ISSUE:
This is an informational report to inform the Finance Committee on staff's efforts to perform an analysis of contracts and identify opportunities to increase the pool of agencies and vendors POST contracts with, with the ultimate goal of improving the quality of the training provided. 

 

BACKGROUND:

At its February 2017 meeting, the Finance Committee was provided a listing of POST Recurring Contracts (Attachment 1).  During the meeting, the Committee discussed the importance of POST maximizing its use of contract funds to ensure training participants are provided the best training possible.  At the meeting, the Committee directed POST staff to:

1) perform an analysis of contracts; and

2) identify opportunities to increase the pool of training providers, with the ultimate goal of improving the quality of the training provided. 


ANALYSIS:

POST has historically received approximately $20 Million in annual funding for Training Contracts.  Approximately sixty to seventy percent of these funds have been expended to contract with other governmental agencies for "recurring" needs.  Since these contracts are with governmental agencies, they are not subject to the same State scrutiny as contracts with private vendors. As a result, POST has historically been more focused on enhancing its contracts with non-agencies; which represent only a small percentage of the expenditures.   

Agency contracts were originally established to ensure there was both mandated and non-mandated training available statewide for courses in Supervision, Management,  Leadership, Institute of Criminal Investigation, Emergency Vehicle Operations, Tools for Tolerance, and other POST certified training.  Many of these contracts have been in place for many years with the same training providers and little effort has been made to research other potential agencies who can offer these courses. 

In Budget Year 2017/18, POST anticipates only $16.2 Million in State Budget funding will be available for all Contracts.  As a result, POST is planning to further analyze these contracts to determine where opportunities for savings, without reductions to the quality of training, may exist.  

As noted in February's discussions, POST has identified approximately $3 to $5 Million of funding for competitive contracts.  To enhance POST's use of contract funding, POST is planning to bring in a small group of State Contract experts (non-POST staff) to help POST devise guidelines and standards for ensuring healthy competition and innovation.  These standards will be used for all competitive contracts.  Additionally, POST and this group will devise a plan and protocols for expanding the listo of potential agencies for non-competitive contracts.  Please note Attachment A is a copy of the "Recurring Contracts" listing shared at the February Finance Committee Meeting (edited to identify specific types of contracts we have already identified as those which could benefit from an enhanced POST Contract process). 

RECOMMENDATION:
This report is for information only.  No action is required. 
 
ATTACHMENT(S):
Name: Type:
FY_17-18_Proposed_Recurring_Contracts_June_6_17.xlsx Cover Memo