Report 2016-125.1 Recommendation 15 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 #15 To: University of California
To maximize benefits from the systemwide procurement initiative and to ensure that the university uses those benefits for its teaching, research, and public service missions, the Office of the President should study ways to measure actual procurement benefits—possibly focusing this effort on benefits from larger dollar amounts—and if such measurement is not possible, it should clearly disclose to the regents and the public that the amounts it reports are based on estimates.
6-Month Agency Response
The Office of the President oversees two systemwide procurement functions: UC Procurement Services and UC Health.
UC Procurement Services is striving to develop a reporting process to more clearly identify the reported benefits emanating from definite quantity contracts (contacts governing set quantity purchases) and those benefits emanating from requirement contracts (contracts governing large numbers of future transactions with benefit attainment dependent on forecasted purchases, volumes and contract adoption.
Work on this project is anticipated to begin by June, 2018 with a target completion of December, 2018. The initial activity (identifying resources from IT, Campuses, and Systemwide Procurement to define the changes, develop definitions and processes, and make the needed software change) will lead to a project plan and a firmer completion date.
Using analytic tools currently available, UC Health evaluates the procurement and cost benefit for each initiative. UC Health is evaluating new analytical tools that will perform a more in depth analysis of the financial and clinical value/impact and potential lost opportunities for failure to move forward or fully implement a procurement initiative. These tools will allow provide UC Health clinical teams the ability to evaluate the clinical impact, current and future saving opportunities, and potential lost opportunities. The tools will also benchmark our work against other non-UC Health medical centers and this information will hopefully drive more system wide standardization and savings. Data used for the analyses are collected from the UC Health medical centers' procurement and financial databases and therefore, UC Health can evaluate the benefits of any contracting and saving initiatives.
- Estimated Completion Date: December 2018
- Response Date: February 2018
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
The Office of the President will review its reporting process to more clearly identify the reported benefits emanating from definite quantity contracts (contacts governing set quantity purchases) and those benefits emanating from requirement contracts (contracts governing large numbers of future transactions with benefit attainment dependent on forecasted purchases, volumes and contract adoption).
- Estimated Completion Date: March 2018
- Response Date: October 2017
California State Auditor's Assessment of 60-Day Status: No Action Taken
Although the Office of the President indicates it will implement our recommendation, it has yet to take any actions to do so.
Agency responses received are posted verbatim.