Purchasing, Contracts, Risk Management, Warehouse, &
Mailroom Departments
Administrative Program Plan and Review
Annual Update June 2014
Purchasing, Contracts &Risk Management Department
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 2013, the department incorporated 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:
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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 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
Who
Performs
This
Legal
Mandate
Purchasing
Specialist
Public
Contract
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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.
and Buyer
with direct
oversight by
the Director
Code, Ed
Code, Gov
Code,
Labor
Code, Civil
Code;
District
Policy
Key PCRMD
Functions/Responsibilities
Who
Performs
This
Legal
Mandate
Buyer, with
direct
oversight by
the Director
Public
Contract
Code, Ed
Code
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.
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
Director, with
assistance
from Buyer
Public
Contract
Code, Ed
Code, Gov
Code,
Labor
Code, Civil
Code;
District
Policy
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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.
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
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interface with this department, in that they do not directly make purchases, order
supplies, or enter into contracts for services. This 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 timelineness 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.
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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. 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.
Cabrillo Warehouse
Section One: Program Overview
The Warehouse primary functions are to receive and ship materials, supplies,
equipment and merchandise; to maintain records and control its inventory; to stock and
maintain District stores; to inventory and tag District fixed assets; and to manage the
District records storage and destruction systems. The Warehouse is part of the
Purchasing Department of the Administrative Services Division, and is staffed on one
Storekeeper, supplemented by staffing support from the mailroom, College Driver, and
Purchasing staff. The Warehouse staff is supervised by the Director of Purchasing,
Contracts, and Risk Management.
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A fundamental check and balance feature of purchasing involves the formal receipt and
logging of goods purchased and/or returned. Without a formal receiving and tracking
system, the potential to misuse District funds for personal gain is unchecked; despite
following appropriate purchasing procedures, without a formal receiving function the
opportunity for employees to personally abscond with merchandise, equipment,
supplies, etc. would be significantly magnified.
The Purchasing 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.
In its receiving, inventory control, and records storage functions, the Warehouse plays a
key role fulfilling this core value. The Warehouse interfaces directly with faculty, staff
and students throughout the college who are engaged in purchasing and record
keeping.
Section Two: Planning and Outcomes
The Warehouse has one Administrative Unit Outcome:
Cabrillo staff, faculty and students will be able to receive purchases
delivered in a timely manner and effectively store records.
The following table indicates the key specific services and functions of the
Warehouse, the staff who perform these services and functions, and the legal
and/or District mandates that guide departmental practices and procedures:
Key Warehouse
Functions/Responsibilities
Central Receiving: incoming
packages are received daily.
Packages with PO designation,
are open and physically inspected.
Items are received in Datatel in
order to pay invoices.
Responsible for tracking all
Who
Performs
This
Legal
Mandate
Storekeeper
with direct
oversight by
the Director
Audit
Requirements
for
accountability
purposes and
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packages incoming to the District,
tagging and maintaining receiving
system database, and tracking
packages being delivered on
campus.
Shipping: packages are shipped
out weekly using various carriers.
Provides and prepares packages
for shipping to avoid damage;
coordinates pick up with respective
carrier.
District Stores: Maintains District
stores of supplies. Organizes,
shelves, delivers, and maintains
inventory of store’s supplies.
Records Retention and
Destructions: Records boxes are
received ongoing throughout the
year to be archived. They are
logged-in, numbered and shelved;
The retention form is sent to the
department for future reference on
the location of their records. The
Storekeeper maintains the
database of these records.
Records are destroyed every year,
after the retention period has
expired. A list is prepared for
Board approval to destroy and the
record's log is updated with the
destruction date.
Fixed Asset Tagging: Equipment
and furniture valued at $5,000 or
higher must be tagged for tracking
purposes. Normally items are
tagged in the receiving area prior
to delivery to the final destination,
however, sometimes the item is
dropped shipped to the final
destination or the item requires
installation/assembly prior to
District Policy
Storekeeper
with direct
oversight by
the Director
District Policy
and
Administrative
Regulations
Storekeeper
with direct
oversight by
the Director
District Policy
and
Administrative
Regulations
Storekeeper
with direct
oversight by
the Director
Ed Code and
Title 5; District
Policy and
Administrative
Regulations
Storekeeper
with direct
oversight by
the Director
GASB 34/35;
District Policy
and Audit
requirement
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tagging. In these circumstances,
the District Warehouse Services
Clerk must take the time to go out
to the various areas to tag these
items, as needed.
In the fall of 2012 an AUO online survey of the Warehouse was carried out. Out of a158
respondents, 35 % to 71% responded “Never Used/Don’t Know” to four questions about
the effectiveness of Warehouse services or its website. 37% indicated the same on the
AUO statement question. It is possible that a significant number of respondents do not
interface with the District Warehouse and its functions, in that they do not directly make
purchases, order supplies, or store records. This would be in direct contrast to, for
example, the fact that 100% of respondents use the campus facilities and grounds,
which 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 exceptionally positive. 73.5% of the
remaining respondents are “satisfied” to “very satisfied” with the prompt receipt of
purchases. 72.5 of the remaining respondents % are “satisfied” to “very satisfied” with
the helpfulness and attitude of the Warehouse staff.
In terms of the survey of department’s AUO, after removing the “Don’t Know”
respondents, 71% “agree” or “strongly agree” with the statement “I am able to receive
purchases delivered in a timely manner and effectively store records.” When the
“neutral,” “agree,” and “strongly agree” responses are combined, this yields a composite
response of 96% responding on the spectrum of from “neutral” to “in strong agreement”
with the AUO.
Cabrillo Mailroom
(This program review section will be forthcoming).
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Overall Goals and Recommendations: For All Three Departments
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.
Operational goals are as follows:
Goal 1: to ensure that all departments have sufficient operational funding to accomplish
compliance mandates and routine functions
Goal 2: to ensure effective Purchasing Dept. operations by increasing staff support of
routine operations
Goal 3: to effectively integrate rapidly changing technological advances in the receiving,
inventory tracking, and fixed asset tagging and tracking processes to yield greater
oversight, tracking and efficiency.
Goal 4: to increase department staffing to a level that will accommodate cross training
and adequately provide for management of public records requests, insurance
compliance and certificates, confidential documents destruction and support for Dept.
Director
Recommendations: The following table indicates the recommended strategies to
accomplish these goals.
Goal #
#1—secure sufficient
operational funding for
compliance mandates
and routine operations
#2—Increase
Purchasing Staff
Support
Strategy
Present carryover/onetime/ongoing funding
requests for purchasing
supplies, warehouse
repairs & equipment,
mailroom equip maint.
Services, and archive
records destruction
Timeline
FY14/15 and ongoing
2. Restore District Buyer to
100%FTE
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FY14/15 and ongoing
#3—Inventory Tracking
and Asset Tagging
#4—Increase Dept.
Staffing
3. Release time for learning
and implementing new
inventory software; resolve
potential integration with
FY14/15 and ongoing
Datatel; prepare for and
execute Districtwide
inventory
4. New 100% FTE
FY 15/16 and ongoing
purchasing staff for crosstraining, mgt. of public
records requests,
insurance compliance and
certificates, confidential
documents destruction and
support for Dept. Director
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