Purchasing, Contracts & Risk Management Department
Administrative Program Plan and Review
June 2013
Section One: Program Overview
The Purchasing, Contracts, and Risk Management Department (PCRMD) serves the entire
Cabrillo academic, administrative, and student community with procurement, fiscal control of
purchases, contracting and insurance services. The Department was created to provide the proper
procedures, oversight, staffing assistance, and record keeping, to ensure that that these functions
comply with District Policy, Public Contract Code, Education Code, Government Code, Labor
Code, and Civil Code. An overarching goal of the department is to provide uniform, standardized
practices on purchasing and receipt of purchases, entering into contracts and other agreements,
and risk management.
For a few years prior to 2011 some functions of the current “Facilities Planning and Plant
Operations” were carried out under the then “Director of Facilities, Planning, and Purchasing.”
Following a re-organization, purchasing and facilities development were separated, but
construction/Public Contract Code bidding responsibilities remained within the Purchasing
Department; this provides a useful separation between the bidding requirements of Public
Contract Code and the District construction oversight officials.
As of July 2014, the department will incorporate the Auxiliary Services Department, which is
made up of Duplications, the Bookstore, Food Services, and Campus Vending. It is noteworthy
that the latter three parts of Auxiliary Services are services provided under management
contracts with outside vendors, and are intended to be revenue producing cost-centers of the
Auxiliary Services Department.
The department’s core value is:
to serve the Cabrillo community with efficient processes that ensure compliance with
regulations and provide vital oversight/checks and balance functions; these processes
will provide proper stewardship of public education expenditures for construction,
equipment, supplies, and contracting for services and insurance, and comply with
recommended risk management standards.
The PCRMD interfaces directly with faculty, staff and students throughout the college who are
engaged in purchasing and contracting. The department collaborates most closely with the
Business Services Office in that the proper account coding of purchase orders, and the approval
of BSO accounting specialists of purchase requisitions exceeding particular dollar thresh-holds
or involving restricted funding sources, is fundamental to District fiscal controls. The
department also works particularly closely with the Facilities Planning and Plant Operations
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Department and the Information Technology Department, in that contracting and procuring are
key elements of those service departments.
The Department is staff by a Director of Purchasing, Contracts and Risk Management, a District
Buyer, and a Purchasing Specialist.
Section Two: Planning and Outcomes
The PCRMD has one Administrative Unit Outcome:
Cabrillo staff, faculty and students will monitor budgets, track purchases and
develop contracts by utilizing the processes of the Purchasing/Contracts
department.
The following table indicates the key specific services and functions of the PCRMD, the
staff who perform these services and functions, and the legal and/or District mandates
that guide departmental practices and procedures:
Key PCRMD Functions/Responsibilities
Purchasing Dept. : Request for quotes and all
informal bids; quote analysis and award of POs'; PO
follow ups; PO corrections/amendments; vendor
sourcing, including meeting with vendors; responsible
for creation and maintenance of vendor records;
reconciliation of Auction receipts & invoices;
maintenance of purchasing website; maintenance of
supplier catalog library; and all the activities associated
with the close of the fiscal year and reassignment of
orders being carried over to the new fiscal year. Buyer
for bond projects is responsible for working with the
FPPO Director and Information Technology for
coordinating and obtaining quotes for Group II.
Informal Bids. Annually prepares the advertisement
soliciting new contractors for the informal bidding
process. Track and approve all applications, prepares
database of qualified contractors, throughout year.
PCRMD, in conjunction with FPPO for construction
projects, and IT for technology projects, issues requests
for informal bids. Issues contracts for signature after
the review of bids by the Director. Issues contract
amendments/change orders on all informal bids.
Obtains all bonds and insurance.
Who Performs
This
Legal
Mandate
Purchasing
Specialist and
Buyer with
direct oversight
by the Director
Public
Contract Code,
Ed Code, Gov
Code, Labor
Code, Civil
Code; District
Policy
Buyer, with
direct oversight
by the Director
Public
Contract
Code, Ed
Code
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Key PCRMD Functions/Responsibilities
Requests for Proposals and Contract
Administrator: With college stakeholders, develops
RFP, publishes, and guides evaluation and selection
process. Director is responsible for management of
District contracts such as Bookstore, Cafeteria,
Vending, insurance and subleases. Analyze bids,
prepare bid summary, makes recommendations for
award of bid/RFP to the Governing Board. Prepare
contracts for signature.
Contract Services: Drafts and reviews contract
documents for formal bids, informal bids, services,
independent contractor and professional services
agreements, facilities use agreements, including for
on-site clinical studies for students, student study
abroad agreements, etc. Review for compliance to
avoid liability exposure and for compliance with
mandated legal codes. Negotiates modifications as
needed. Deactivates expired contracts and prepares
them for storage in the Records Retention area.
Public records requests: fulfills conforming
requests for public information such as request for
certified payroll records to confirm prevailing wage
payments; information to confirm the informal and
formal bid process was followed, records on RFP’s,
and other routine disclosable records.
General Liability, Property and Worker's
Compensation Insurance: participate in Insurance
Pool JPA’s boards and committees; review and
purchase lines of coverage at appropriate coverage
levels; managing property and liability claims; update
asset and activity statements to insure proper coverage
levels; work with insurance adjusters and claim
attorneys to resolve claims.
Who Performs
This
Legal Mandate
Director, with
assistance from
Buyer
Public
Contract Code,
Ed Code, Gov
Code, Labor
Code, Civil
Code; District
Policy
Director
Public Contract
Code, Ed Code,
Gov Code,
Labor Code,
Civil Code;
District Policy
Director
Federal and
State law;
District Policy
Director
In the fall of 2012 an AUO online survey of the PCRMD was carried out. Out of a166
respondents, 41% to 59% responded “Never Used/Don’t Know” to four questions about the
effectiveness of PCRMD services. 51.9% indicated the same on the AUO statement question. It
is possible that a significant number of respondents do not interface with this department, in that
they do not directly make purchases, order supplies, or enter into contracts for services. This
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would be in direct contrast to, for example, the fact that 100% of respondents use the campus
facilities and grounds and that explains why, in contrast therefore, only 1-2% of respondents to
questions about the cleanliness of facilities and grounds answered “Never Used/Don’t Know” in
the FPPO survey section. It is therefore worthwhile to analyze the data removing the
respondents who answered “Never Used/Don’t Know” to questions about the PCRMD.
When the response data is analyzed removing respondents who answered “Don’t Know” the
overall ratings of the department are reasonably positive.
46% of respondents are “satisfied” to “very satisfied” with the timeliness and helpfulness/attitude
of the department. 85% are “neutral” to “very satisfied” with the transparency of the department,
while 41% are “satisfied” to “very satisfied.” 52% of respondents are “satisfied” to “very
satisfied” with the department’s website, while 95% are “neutral” to “very satisfied.”
In terms of the survey of department’s AUO, after removing the “Don’t Know” respondents,
44% “agree” or “strongly agree” with the statement “I am able to monitor budgets, track
purchases and develop contracts by utilizing the processes of the Purchasing/Contracts
department.” When the “neutral,” “agree,” and “strongly agree” responses are combined, this
yields a composite response of 85% responding on the spectrum of from “neutral” to “in strong
agreement” with the AUO.
A better survey pool would be one that was limited to those campus stakeholders who use the
services of the department. Removing those surveyed who selected “Never Used/Don’t Know”
provides some indications for recommendations. For example, it appears—based on this survey
and comments or respondents—that, although a 52% positive response on the PCRMD’s website
is possibly quite favorable, given the complexity of purchasing and contracting rules and
regulations, nonetheless the website could be made more user friendly, better organized, easier to
use, with simpler instructions.
In that the department, organized as it is, is quite new, with two out of the three staff having been
in their positions for less than one year, it is likely that response times, transparency, and
helpfulness of the staff will naturally improve as staff become more familiar with the
department’s process and learn their jobs. It is also likely that departmental stability and
consistent departmental leadership will yield increased efficiencies and productivity, enabling
even more training of the campus community in how to effectively interface with the PCRMD.
Currently the department’s processes are fundamentally reviewed with formal input from “users”
in the form of meetings with other campus departments, and via email and verbal feedback. The
cross-departmental meetings (involving administrative staff, faculty, and students) cannot be
undervalued as a review mode. When the PCRMD meets with Business Services Office staff to
discuss a procedure or process, frank constructive criticism and suggestions for how to “make
things simpler,” “how to improve services,” and “how to do this more efficiently” is routine.
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Similarly, when the department meets weekly with FPPO staff to go over collaboration on
construction project contracting, constant attention to streamlining and improving systems is
present.
Examples of venues for the same exchange that involve not only administrative staff, but faculty
and students are the department’s stewardship of campus committees involved in the Request for
Proposal (RFP) Process, ad-hoc committees (such as the student led Cafeteria remodel project)
or standing committees such as the Facilities Planning Advisory Council or the College Planning
Council. Departmental staff discuss this feedback in formal and informal meetings, attempting to
integrate suggestions and where appropriate to improve procedures and processes. However, a
more formal departmental strategic planning process would be useful, but perhaps not until all
three members of the department have learned their jobs more fully, and experienced a couple of
annual cycles thoroughly. In other words, a deeper understanding of the “why” behind existing
departmental procedures, rules and processes would be a valuable ingredient to a forward
thinking planning thrust. Finally, it must be noted that many of the departmental procedures are
dictated, as noted in the table of functions above, by legal code and District policy, and as such
there are limits to the horizons of change and improvements in efficiency and service.
Section Three: Goals and Recommendations
Based on the assessment data related to the AUO and the department’s functions, as well as the
relative youth of the department, it is not anticipated that major transformations will be
envisioned and planned within the next five to seven years. However, as indicated above, two
goals and recommendations appear clear at this juncture.
Goal 1: to improve campus understanding of the proper use of PCRMD services and to make the
departments procedures more accessible/easier to use
Goal 2: to effectively integrate rapidly changing technological advances in the purchasing and
contracting processes to yield greater efficiency
Recommendations: The following table indicates the recommended strategies to accomplish
these two goals.
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Goal #
Strategy
#1—increase
understanding and ease of 1.a Improve, streamline, and
use
make more user friendly the
PCRMD website
#2—integrate technology
for efficiency
1.b Campus stakeholder inperson trainings (in such venue
as Flex Week, Brown Bag
Meetings, Manager’s Meetings,
etc.)
2.a Update the Program Review/
Program Plan in annual review
process
2.a.1 Gather, analyze , and
integrate stakeholder input
(using survey and other
assessment tools)
Timeline
Cost
FY14/15
0 (use existing staff)
FY14/15
and ongoing
0 (use existing staff)
FY14/15
and ongoing
0 (use existing staff)
FY14/15
and ongoing
0 (use existing staff)
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