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Psa Report Competitive Versus Non-Competitive Contracts

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S t a t e o f C o n n e c t i c u t OFFICE OF POLICY AND MANAGEMENT REPORT TO THE GENERAL ASSEMBLY Personal Service Agreements Benjamin Barnes Secr et ar y Office of Policy and Management 450 Capitol Avenue Hartford, Connecticut 06106 Submitted September 25 , 2018 This page is intentionally left blank 1 TABLE OF CONTENTS Page Introduction . 3 A. Purpose . 3 B. Background . 3 C. Scope and Methodology . 4 D. Inquiries . 5 Part I. PSA Data . A. Total Number of PSA 1. Chart Competitive and Noncompetitive Payments All Contracts. 6 2. Chart Competitive and Noncompetitive All Contracts. 7 3. Chart Competitive and Noncompetitive Under 20K . 8 4. Chart Competitive and Noncompetitive 20K and Over . 9 B. Summary Data . 10 C. Detail Data. 11 Part II. Consultant Agreements . A. Summary of Consultant Agreements. B. Detail Data . 2 INTRODUCTION A. Purpose This document summarizes information regarding Personal Service Agreements for State fiscal year 2018. B. Background A Personal Service Agreement (PSA) is a duly executed and legally binding contract that defines the services or end products to be delivered by a Personal Service Contractor to a State agency. It is one of the primary mechanisms used by the State for procurement purposes. Typically, a PSA is used to purchase infrequent and non-routine services or end products, such as consulting services, technical assistance, and training. By law, no State agency may hire a Contractor to deliver such services or end products without first executing a PSA. C.G.S. § 4–212 defines who is included and who is not included in the term “Personal Service Contractor.” Included is “any person, firm or corporation not employed by the State, who is hired by a State agency for a fee to provide services to the agency.” Not included in the term “Personal Service Contractor” are the following: (a) a person, firm or corporation providing contractual services to the State, as defined in C.G.S. § 4a–50; (b) certain consultants hired by the Department of Administrative Services (DAS), Division of Construction Services, as defined in C.G.S. § 4b–55; (c) certain consultants hired by the Department of Transportation, as defined in C.G.S. § 13b–20b; (d) agencies of the federal government, State government, or political subdivisions of the State; and (e) certain consultants hired by the DAS, Bureau of Enterprise Systems & Technology, as defined in C.G.S. § 4d–2(c)(5). A State agency wishing to enter into a PSA must adhere to the requirements set forth in the Connecticut General Statutes, Title 4, Chapter 55a, Part II, Sections 212 - 219, inclusive. Section 4-217 requires the Secretary of the Office of Policy and Management (OPM) to establish standards for State agencies to follow when entering into a PSA. Pursuant to this statute, the standards must include, but are not limited to, (1) evaluating the need for a PSA, (2) developing a Request For Proposals, (3) advertising for Contractors, (4) evaluating submitted proposals, (5) selecting a Contractor, (6) monitoring and evaluating Contractor performance, (7) documenting the process for selecting and managing Contractors, and (8) carrying out any other aspect of such processes. Also pursuant to Section 4-217, each agency must establish written procedures for implementing the standards established by OPM’s Secretary. The written procedures must be submitted to the Secretary for approval. Upon receiving the Secretary’s approval, an agency may enter into a PSA based on the approved procedures. If the Secretary disapproves an agency’s procedures, OPM must return them to the agency with recommendations for revisions. No State agency may enter into a PSA unless the Secretary has approved the procedures established by an agency. 3 In addition, according to Sub-section (p) of Connecticut General Statutes (CGS) Section 4e-16, effective October 1, 2014, State agencies, prior to entering into or renewing any privatization contract, shall evaluate such contract to determine if entering into or renewing such contract is the most cost-effective method of delivering such service. A privatization contract is defined as an agreement with a person or entity to provide services that are substantially similar to and in lieu of services provided, in whole or part, by State employees, with the statutes exempting certain contracts with nonprofit agencies. State contracting agencies shall, according to Sub-section (p), perform such evaluation in accordance with a template prescribed by the Secretary of the Office of Policy and Management, which evaluation shall be subject to verification by the Secretary. The template and the related policies and procedures can be found on OPM’s website at http://www.ct.gov/opm/cwp. It is important to note that certain proposed privatization contracts will be subject to Sub-section (a) of C.G.S. Section 4e-16, which indicates that prior to entering into any contract for the privatization of a state service that is not currently privatized, the state contracting agency shall develop a cost-benefit analysis (CBA) in accordance with the provisions of subsection (b) of this section. Such cost-benefit analysis requirement shall not apply to a privatization contract for a service currently provided, in whole or in part, by a non-state entity. C. Scope and Methodology This report describes the contracting activities of executive branch agencies with respect to Personal Service Agreements. Contracting activities of the legislative and judicial branches of state government are excluded from this report. PSA data for this report is gathered using Core-CT, the statewide financial system. State agencies are required to enter their PSAs into Core-CT as a contract. Required fields to be entered include, but are not limited to, contract ID, contract type, begin and end dates, contract maximum amount, description of services, contractor name and funding information. The data presented in this report is only as accurate as the contract data entered by State agencies into Core-CT. OPM summarizes the information and submits an annual report to the General Assembly. The data in this report represents PSAs that were in effect during SFY2018. PSAs can range from a few months to several years in duration. Accordingly, the total dollar amount of a PSA may represent several years of activity. Also, many PSAs overlap during a fiscal year. For example, if a PSA ends December 31st and a new PSA starts with the same provider on January 1st, then two contracts (and two contract amounts) would be included in this report. The payment amounts presented in this report are payments made by State agencies to Personal Service Agreement contractors during SFY2018. The 2018 payment column in the attached sheets reflects the General Fund payments under the contract, in addition to the amounts included in the Federal and Other Payments columns. Please note that annual payment amounts are often substantially less than the total contract amounts. This is due to the fact that the total contract amounts may represent more than one year of contracting activity while the payment amounts represent activity for one year. For this reason, the annual payment amounts are a better gauge of annual contracting activity. 4 D. Inquiries For further information concerning this report, contact: Executive Finance Officer Office of Finance Office of Policy and Management 450 Capitol Avenue Hartford, CT 06106 C/O Valerie Clark 860-418-6313 [email protected] 5 STATE OF CONNECTICUT 2018 PSA REPORT COMPETITIVE VERSUS NON-COMPETITIVE CONTRACTS PSA Competitive/Non-Competitive Payments FY 18 * Not Competitively Bid Competitively Bid $169,965,812 $131,880,850 44% 56% *Non-Competitive would shift to 41% by removing the Bus Service Contracts 6 STATE OF CONNECTICUT 2018 PSA REPORT COMPETITIVE VERSUS NON-COMPETITIVE CONTRACTS PSA Competitive/Non-Competitive All Contracts FY 18 Competitively Bid 338 31% Not Competitively Bid 736 69% 7 STATE OF CONNECTICUT 2018 PSA REPORT COMPETITIVE VERSUS NON-COMPETITIVE CONTRACTS PSA Competitive/Non-Competitive All Contracts Under $20K FY 18 Competitively Bid 38 17% Not Competitively Bid 180 83% 8 STATE OF CONNECTICUT 2018 PSA REPORT COMPETITIVE VERSUS NON-COMPETITIVE CONTRACTS PSA Competitive/Non-Competitive All Contracts Over $20K FY 18 Competitively Bid 300 35% Not Competitively Bid 556 65% 9 STATE OF CONNECTICUT 2018 PSA REPORT SUMMARY BY AGENCY Agency Total # of Total Contract 2018 General 2018 Federal 2018 All Other Contracts Amount Fund Payments Fund Payments Fund Payments Board of Regents 12 $ 1,096,328 $ - $ - $ 110,713 Chief Medical Examiner 1 $ 24,900 $ 11,850 $ - $ - State Library 27 $ 985,325 $ - $ 235,209 $ 64,523 Department of Agriculture 11 $ 196,435 $ - $ 59,275 $ 92,458 Department of Administrative Services 34 $ 378,285 $ 16,700 $ - $ 241,905 Department of Children and Families 81 $ 45,394,592 $ 6,556,573 $ 2,679,741 $ 152,279 Department of Developmental Services 29 $ 3,436,980 $ 585,693 $ - $ 9,000 Department of Energy & Environmental Protection 39 $ 18,332,120 $ 88,616 $ 2,262,803 $ 1,270,287 Department of Higher Education 39 $ 315,075 $ 19,880 $ 32,547 $ 125,411 Department of Corrections 23 $ 4,418,940 $ 452,127 $ 337,557 $ 43,010 Department of Housing 11 $ 19,921,061 $ 255,262 $ 1,962,417 $ 2,441,085 Department of Labor 5 $ 661,770 $ - $ - $ 78,765 Department of Transportation 11 $ 113,200,480 $ - $ - $ 13,504,160 Department of Public Health 154 $ 76,075,835 $ 365,351 $ 14,305,313 $ 2,559,835 Department of Emergency Services & Public Protection 41 $ 1,186,666 $
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