April Forum April 11 2013 New Program at

April Forum April 11, 2013

New Program at ASU Beebe Starting this Fall

Options: Seeking an associates degree by taking the 60 recommended hours (see slide # 6) May obtain a Certificate of Proficiency by taking only the public procurement section of courses (nondegree seeking student) The curriculum is not finalized and currently not on the ASU Beebe website. However, you may now apply to be prepared to start in the fall semester.

Admission Status: Degree seeking student: Must make application, provide immunization records, have a placement score (ACT or Compass), high school or college transcript Non-Degree seeking student: Must make application Cost: $85/hour plus required fees (classes are 3 credit hours) Most of the 16 week classes will be conducted on-line.

ETHICS IN PROCUREMENT Conflict of Interest Laws By Ray S. Pierce, J. D.

ETHICS (plural noun) a system of moral principles the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture, etc. -- Dictionary. com, “Ethics” (last accessed April 9, 2013)

Purchasing Ethics Moral principles or code to be respected and followed by procurement personnel. Prohibits a breach of the public trust by any attempt to realize personal gain by a public employee through conduct inconsistent with the proper discharge of the employee’s duties. -- Flynn & Buffington, The Legal Aspects of Public Procurement (2 d Ed. ), 2010

Words To Live By Just because an action is legal does NOT mean the action is ethical. Clearly, the law cannot set out to define all ethical and unethical actions. Our own moral compasses have to guide us.

Arkansas Procurement Law The ethics portion of the Arkansas Procurement Law can be found in Ark. Code Ann. § 19 -11 -701 et seq.

Statement of Policy The Legislature set out the overriding policy for state employees AND nonemployees.

The general standard of conduct for employees is that working in government is a public trust. Thus, any attempt to realize personal gain through public employment by conduct inconsistent with the proper discharge of the employee’s duties is a breach of a public trust. -- Ark. Code Ann. § 19 -11 -704(a)

This ethical standard not only applies to state employees, but also to nonemployees. “Any effort to influence any public employee to breach the standards of ethical conduct set forth in this subchapter is also a breach of ethical standards. ” -- Ark. Code Ann. § 19 -11 -704(b)

Employee Conflict of Interest Under Arkansas law, it is a violation of law for any state employee to participate, either directly or indirectly, in any matter pertaining to any contract or subcontract, and any solicitation or proposal, in which to the employee’s knowledge: 1. The employee or any member of the employee’s immediate family has a financial interest;

Employee Conflict of Interest 2. A business or organization has a financial interest, in which business or organization the employee, or any member of the employee’s immediate family, has a financial interest; or

Employee Conflict of Interest 3. Any other person, business, or organization with whom the employee or any member of the employee’s immediate family is negotiating or has an arrangement concerning prospective employment is a party. --Ark. Code Ann. § 19 -11 -705(a)(1)

What is “direct or indirect participation”? The statute defines “direct or indirect participation” as including (but certainly not limited to) the “involvement through decision, approval, disapproval, recommendation, preparation of any part of a procurement request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity. ” -- Ark. Code Ann. § 19 -11 -705(a)(2)

But who is my “immediate family member”? The statute defines “immediate family member” as “a spouse, children, parents, brothers and sisters, and grandparents. ” -- Ark. Code Ann. § 19 -11 -701(11)

Oh, no! I think I may have found a possible conflict! What do I do? The statute sets out that procedure as well: 1. Upon discovery of a possible conflict of interest, an employee shall promptly file a written statement of disqualification with the director and shall withdraw from further participation in the transaction involved. 2. The employee may, at the same time, apply to the (DF&A) director … for an advisory opinion as to what further application, if any, the employee may have in the transaction, or for a waiver…. -- Ark. Code Ann. § 19 -11 -705(c)

What are these “advisory opinions” of which you speak? The ethics laws allows an employee or a contractor for the State (but NOT the State Agency, either for itself or on behalf of either) to ask the DF&A Director to issue a written advisory opinion regarding the appropriateness of the course of conduct to be followed in a proposed transaction. Following the course of action set out in the advisory opinion will be considered as having followed the ethics portion of the law. -- See Ark. Code Ann. § 19 -11 -715(b).

Waivers? Yep. Upon request, the director can, if a conflict of interest is found, choose to waive the conflict so as to allow the given transaction to continue if he finds that a) the ethical conflict is insubstantial or remote, or b) the best interests of the State are served by granting the waiver. -- See Ark. Code Ann. § 19 -11 -715(c).

Penalties The code sets out the penalties for violating the ethics laws. Criminal penalties include up to five years imprisonment and up to a $10, 000 fine (or both). -- Ark. Code Ann. § 19 -11 -702

Penalties In addition to criminal prosecution, the code permits civil and administrative remedies as well.

Penalties And yes, these penalties apply to non-employees as well.

More in the Ethics Section There are more restrictions and prohibitions in the Ethics Section, such as laws against: 1. Kickbacks 2. Gratuities (for securing state contracts) 3. Using contingent fees 4. Using confidential information for personal gain 5. Other restrictions and prohibitions on privatesector employment upon leaving state government. Read these at your leisure. Don’t read them at your peril.

Now That You Know All This Remember, government service is a public trust. But to those who may wish to breach that trust for their own personal gain, there’s one more slide.

2013 Legislative Changes SB 422/Act 453 – Exemptions from procurement law HB 2031/Act 1020 – Priority buying of surplus property by not-for-profits SB 440/Act 308 – Technology access for the blind or visually impaired SB 340/Act 554 – Guaranteed Energy Savings HB 1383/Act 494 – Making Bidding Requirements Uniform for Historic Sites Contracts

Office Supply Show Tuesday, May 7 th; 12: 30 UA Cooperative Extension Auditorium 2301 South University Avenue Little Rock, AR Join us for informational presentations and a small vendor exhibit.

Arkansas NIGP Recently held their annual conference in Hot Springs Had good delegate attendance and vendor exhibitors Chapter meets quarterly, join us!!! Next meeting, May 16 th at noon Clinton Airport, Little Rock for a behind the scenes tour of the renovated airport More details will be posted on the www. arnigp. org website. If not a member & on the listserv, contact Peggy Jackson, President at peggy. jackson@uaccb. edu

NIGP National Meeting www. nigp. org Orlando, Florida August 24 – 28 th If the ARNIGP Chapter has 10 or more to register, each person receives a 15% registration discount. Email Peggy Jackson quickly to let her know you’re interested in attending. Peggy. jackson@uaccb. edu

Purchasing Update AASIS updates Susan Rojas Sue. Rojas@dfa. arkansas. gov 501 -683 -2255

Status of Updates Issue identified – Inability to adopt an Outline Agreement (OA) into a Purchase Requisition (PR) Identified by OSP during Transparency updates Linking PR and Purchase Order (PO) with OA allows more accurate reporting Currently being tested at AASIS Communication pending Training material being developed Not yet in Production Limited Usage to large OA such as MRO 37

Proposed Solution Test OA 4600016588 OA has only material groups 38

Go to OSP website at www. dfa. arkansas. gov to find your commodity or service. Click on the Commodity name for further information. To contact OSP master data staff, call 501 -324 -9316 or email osp-vendor@dfa. arkansas. gov 39

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Go to ME 33 K, enter your OA number and look for the material groups. 41

Outline Agreement Recap Item Category M – Material Unknown Contains only required Material Groups Lump Sum (Uo. M = ZLS) Net Price = $1. 00 Used only on select OAs 42

Proposed Solution (cont. ) Create your PR at transaction ME 51 N. Enter your specific agency information such as delivery address, plant, pgroup etc By selecting the matchcode in the material field, we can search by material group on the “M: Material Number/Material Description” tab Enter the material group found on that line of your OA (61500) then hit the green check. Select the Material Number which most closely meets your needs then hit the green check. 43

Proposed Solution (cont. ) Enter the OA number and line item in the Source of Supply tab or the Agreement and Item fields to link your PR to the OA 44

Purchase Requisition Recap Source OA via OSP website Notate Material Groups on OA Must include Material Number on PR that is associated with OA’s Material Group Search in Material field Must use correct PR quantity and Unit of Measure Contact OSP if no alternate found Must include OA number and item number on “Source of Supply” tab 45

Proposed Solution (cont. ) Test PO 4501312922 PR and OA are referenced PO contains material numbers to make orders more specific 46

Alternate Unit of Measure is listed on the Quantities/Weights tab If not available in material master data, please contact OSP 47

Proposed Solution (cont. ) 48 Image of PO

Purchase Order Recap Can be follow on to PR Must include Material Number associated with OA’s Material Group Must use correct PO quantity and net price Must change OPU (Order Price Unit of Measure) Found on Quantities/Weights tab of PO Order Unit will remain ZLS Ord. Price Unit will reflect actual Unit of Measure EA, PAC, BAG, BOX, BT etc. Must reference OA in PO 49 Adopt required OA lines via “Document

Have AASIS Questions or Issues? Call ASC Help Desk: 501 -683 -2255 or Create Help Desk Ticket Select “Help” Select “Create Support Message” Complete message and Save/Send Susan Rojas, Operations Sue. Rojas@dfa. arkansas. gov 50

Property Officer & Asset Manager Training Tuesday, May 21 st; 9: 30 – 3: 00 UA Cooperative Extension Auditorium Detailed agenda coming soon! State employees who have responsibility and ultimate accountability for the physical assets of their agency should attend.

Upcoming Forums: May 9 th Reverse Auctions -Tim Walbert, Pulaski Technology College June 13 th Proposed Rules after the 2013 Legislative Session