Report 2016-125.1 Recommendation 10 Responses

Report 2016-125.1: The University of California Office of the President: It Has Not Adequately Ensured Compliance With Its Employee Displacement and Services Contract Policies (Release Date: August 2017)

Recommendation #10 To: University of California

To ensure that the university achieves its goals of obtaining services at the lowest cost or best value and of providing vendors with fair access to contracting opportunities, the Office of the President should direct all university locations to implement controls in their online procurement systems to prevent staff from avoiding the requirement to competitively bid a contract when individual purchases of the same good or service accumulate to $100,000 or more within a fiscal year.

60-Day Agency Response

The Office of the President is planning a set of actions to address this recommendation. Because UC Procurement is in the midst of installing new technology the actions will include:

-A formal notification from the UC Chief Procurement Officer to all Campus and Office of the President procurement leaders to institute a quarterly review process by which each campus senior procurement officer shall ensure that a quarterly review of purchase transactions is conducted in order to identify opportunities to aggregate for competitive bidding (repetitive purchases of the same goods or services). Such review shall be documented, with one copy maintained at the campus and a second copy forwarded to the Director of Strategic Sourcing, UC Procurement Services at the Office of the President.

-Address these items in a webinar/training event for all procurement leaders and staff

-Update templates, job aids and FAQs on the Office of the President's website

-Address, in the new contracts database configuration, the functionality needed to support this solution.

  • Estimated Completion Date: December 2017
  • Response Date: October 2017

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2016-125.1

Agency responses received are posted verbatim.