COUNCIL ON EFFICIENT GOVERNMENT
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Transcript of COUNCIL ON EFFICIENT GOVERNMENT
2
Workshop Agenda2
Section 1 - Overview - Who and Why CEG was Created
Section 2 – Definition of Outsourcing and a Business Case
Section 3 - Business Case Thresholds and Submission Process
Section 4 - Conclusion
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How the Council on Efficient Government was Created5
The Florida Efficient Government Act of 2006 created the Council on Efficient Government (CEG) in response to a growing trend to outsource government services and jobs.
CEG is responsible for evaluating business cases for feasibility, cost-effectiveness, and efficiency before an agency proceeds with any significant outsourcing of services and possible reduction of government staff.
Legislative Authority: 287.0573 F.S. and 287.0574 F.S.
6
Who is the Council on Efficient Government?
The council is made up of seven members appointed by the Governor and they are:
Linda South Secretary, Department of Management Services (Chairman)
Alex Sink Florida’s Chief Financial Officer
Lisa Echeverri Executive Director, Department of Revenue
Steve Evans Chief Operating Officer, Florida TaxWatch
Akhil Agrawal President, American Medical Depot
Tim Yandell President, inetUSA
Vacancy Head of Executive Branch agency
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Office of Efficient Government Team7
The council is supported by the Office of Efficient
Government which consists of:
Henry Garrigo, Executive Director
Evelyn Gonzalez, Analyst
Noah McKinnon, Analyst
Suzanne Keele, Administrator
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CEG’s Statutory Roles and Responsibilities
Establish Processes Employ a standard process for reviewing business cases Develop standards, best-practices, and templates Assist in the creation of guidelines for assisting state
employees whose jobs are eliminated as a result of outsourcing
Reviewing of Business Cases Review and evaluate business cases to outsource Provide an advisory report on projects $10 million and
over
Promote excellence in contracting and outsourcing Incorporate lessons learned into Council standards Report on innovative methods and current outsourcing
efforts
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Florida Statute Definition of Outsourcing
287.05721(2) F.S. defines outsourcing as:
The process of contracting with a vendor to provide a service or activity while the state agency retains responsibility and accountability for the service or activity and there is a transfer of management responsibility for the delivery of resources and the performance of those resources
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Outsourcing Exemptions
Florida Statute lists 18 exemptions from business case requirements. Examples include, but are not limited to:
Artistic Services Legal Services
DOT Construction Auditing Services
Some Health Services Training & Education
Architectural & Engineering Lectures
Other Governmental Agencies
A complete list of exemptions can be found on the outsourcing flowchart found on the CEG web site or in Florida Statutes 287.057(5)(22), 287.0571, 287.055, 337.11 and 440.491(6).
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Flowchart - Is My Project an Outsource?
IS THE ACTION FOR A COMMODITY?
YES
NOIS THE ACTION FOR A
SERVICE OR ACTIVITY?
NOT AN OUTSOURCE
NO
IS THERE A TRANSFER OF MANAGEMENT
RESPONSIBILITY FOR THE ACTIVITY TO THE
VENDOR?
YES
NO
DOES THE AGENCY RETAIN RESPONSIBILITY OR
ACCOUNTABILITY FOR THE ACTIVITY?
YES
NOYES
IS THE SERVICE OR ACTIVITY EXEMPT FROM BUSINESS CASE REQUIREMENTS
(SEE PAGE TWO)
IS MY PROJECT AN OUTSOURCE?
PLEASE PROVIDE OFFICE OF EFFICIENT GOVERNMENT WITH A BUSINESS CASE
OR JUSTIFICATION LETTER IDENTIFYING THAT THE OUTSOURCED SERVICE IS
EXEMPT
REQUIRED ACTION
SUBMIT A BUSINESS CASE TO THE OFFICE OF EFFICIENT GOVERNMENT
(REFER TO STATUTORY TIMELINE)
REQUIRED ACTION
EXEMPT FROM BUSINESS CASE REQUIREMENTS BUT
BUSINESS CASE IS RECOMMENDED BY OFFICE
OUTSOURCED ACTIVITY NEEDS A BUSINESS CASE
NOT EXEMPTEXEMPT
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What is a Business Case?
A business case defines the expectations of the project in terms of the key benefits to be achieved by contracting out or outsourcing of services.
The business case provides a detailed analysis of the financial costs, benefits, and risks of the project.
The business case should present a clear basis for the recommendation to contract out the services.
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Creating a Business Case
Although format and content of business cases may vary, your document must communicate the intent, beliefs and risks of the project. In your document: Be clear and concise Be persuasive Make it interesting Provide a clear vision of the end result/benefit Do your homework; prove that the agency is prepared and
capable of implementing the project Clearly demonstrate the need for the project Communicate why the timing is appropriate
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What Should Be Included in a Business Case?-by statute 287.0574
A detailed description of the service or activity for which the outsourcing is proposed.
A description and analysis of the agency’s current performance standards.
The goals desired to be achieved through the proposed outsourcing and the rationale for such goals.
A citation to the existing or proposed legal authority for outsourcing the service or activity.
A description of available options for achieving the goals. An analysis of the advantages and disadvantages of each
option, including, at a minimum, potential performance improvements and risks.
A description of the current market A cost-benefit analysis
16
What Should Be Included in a Business Case?-by statute 287.0574
A discussion of options for or a plan to standardize, consolidate, or revise current policies and processes, if any, to reduce the customization of any proposed solution that would otherwise be required.
A description of the specific performance standards for the outsourcing
The projected timeframe for key events, from the beginning of the procurement process through the expiration of a contract.
A plan to ensure compliance with public records law. A specific and feasible contingency plan addressing contractor
nonperformance. An agency’s transition plan A plan for ensuring access by persons with disabilities in compliance
with applicable state and federal law. A description of legislative and budgetary actions.
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Greenhouse Gas Emissions
On July 13, 2007, Governor Crist signed Executive Order 07-126 which requires all business cases submitted to the CEG to incorporate and report energy consumption and greenhouse gas emission performance criteria, as applicable to the proposed project.
Describe how energy consumption and greenhouse gas emission performance criteria will be incorporated into the proposed project
Reminder: If this requirement is not applicable to your project, state so in your business case.
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Confidential, Propriety, or Trade Secret Material Confidential, Propriety, or Trade Secret Material: If a business case submitter has been advised or considers that any
portion of the documents, data or record submitted to be confidential, trade secret or otherwise not subject to disclosure pursuant to chapter 119, Florida Statutes, the Florida Constitution or other authority, the submitter must also simultaneously provide the Council on Efficient Government with a separate Redacted Copy of its response.
This Redacted Copy shall contain the Agency’s business case name, number, and the name of the submitter on the cover, and shall be clearly titled “Redacted Copy.” The Redacted Copy shall be provided to the Council on Efficient Government at the same time submitter submits its business case and must only exclude or obliterate those exact portions which are claimed confidential, proprietary, or trade secret.
The submitter shall have the responsibility to protect, defend, and assist the Council on Efficient Government with any and all public records requests or claims made against the Council on Efficient Government regarding portions of its Redacted Copy being confidential, proprietary, trade secret or otherwise not subject to disclosure.
If submitter fails to submit a Redacted Copy with its business case submission, the Council on Efficient Government may be required to produce the entire documents, data or records submitted by submitter in answer to a public records request for these records.
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When and How to Submit A Business Case
Submission and Review ProcessRequired Submission of INITIAL Business Case
by Agency
CEG INITIAL Review Process
Required Submission of FINAL Business Case
by Agency
CEG FINAL
Review Process
Project Cost To Whom When Due Internal Review Process:
To Whom When Due Internal Review Process:
LEVEL 1Less than $1 Million (per fiscal
year)
N/A N/A N/A CEG After conclusion of negotiations and at least
30 days before
execution of contract.
Schedule XII
Checklist
LEVEL 2$1 Million to $10 Million(per fiscal
year)
CEG, Governor's
Office, Senate
President, House
Speaker
30 days before issuing
the solicitation
CEG Business Case
Review & Recommendation
Form
CEG, Governor's
Office, Senate
President, House
Speaker
After conclusion of negotiations and at least
30 days before
execution of contract.
Final business case will
be reviewed and an
advisory report may be issued, if deemed appropriate by staff.
LEVEL 3Greater than $10 Million(per fiscal
year)
CEG, Governor's
Office, Senate
President, House
Speaker
60 days before issuing
the solicitation
CEG will submit advisory report
to all parties within 30 days of receipt of
business case.
CEGBusiness Case
Review & Recommendation
Form
CEG, Governor's
Office, Senate
President, House
Speaker
After conclusion of negotiations and at least
30 days before
execution of contract.
* Outsourced as defined in Chapter 287.05721(2), F.S.
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General Instructions on How To Submit a Business Case to CEG
21
a. Submit your initial business case to the Council on Efficient Government based on criteria specified on previous slide.
b. Business cases may be submitted electronically or in hardcopy format. The email address for the office is [email protected].
c. Business cases may be prepared using the LBR Schedule XII form or may be submitted in a report format on agency letterhead.
Reminder: If using the Schedule XII Form for projects over $1 million dollars in value, more information will be required than is listed on form. See CEG document titled “Business Case Development and Submission Process” for details.
22
General Instructions on How To Submit a Business Case Cont.
22
d. Business cases will be reviewed by office staff using the criteria specified in “Business Case Development and Submission Process” document.
e. For business cases valued at less than $10 million dollars per fiscal year, office staff will review the business case and provide a response back within 30 calendar days. For business cases valued at greater than $10 million dollars per fiscal year the Council will meet and provide an advisory report within 30 calendar days of receipt.
f. Final business cases will be reviewed upon receipt and an advisory report may be issued if deemed appropriate by staff.
23
CEG Standard Review Process
The Council on Efficient Government employs a standard process for reviewing business cases that provides for a deliberative examination of the state agency’s proposal to outsource.
Each section of the review form includes key questions that are used to determine the level of detail and completeness of the business case submission.
Each section is scored based on a point system that is directly related to the level of detail provided in the business case submission.
24
Workflow for Business Cases Valued at $10 Million Dollars or Greater
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1. Agency identifies project
as an “outsourcing”
2. Agency submits INITIAL business
case to OEG
3. OEG receives and processes business case
4. OEG converts business case to
Schedule XII format (if appl.)
5. OEG begins internal review
process
7. OEG sends official response
8. Receipt of FINAL business
case
LEVEL 3Workflow for Business Cases Valued at
$10 Million Dollars or Greater
60 days prior to release of solicitation
1. Log in business case2. Assign analyst3. Send acknowledgement email to agency4. Schedule council meeting (if necessary)Note: Council has 30 days from receipt of business case to meet and issue advisory report
1. Evaluate for completeness a. is any data missing? b. is any data incomplete? c. is any data inaccurate? d. is any data invalid?
30 days prior to execution of contract
Send response to agency, Governor, Senate and House
1. Analyze business case using internal evaluation form2. Draft preliminary response letter3. Review findings with OEG Executive Director and obtain approval to proceed4. Mail council member packages, minimum 7 days prior to council meeting
As defined in Chap. 287.05721(2) F.S.(See OEG outsourcing flow chart)
6. Council meets and votes on
council recommendation
1. Council reviews business case and OEG evaluation form2. At meeting, OEG staff presents overview of project and staff recommendation3. Council discusses and votes on final recommendation
NOTE:If your project is exempt from this process, we recommend that the agency submit a letter of exemption to OEG for inclusion in
our outsourcing database. If resources and time allow, the office will review the final business case and issue a response back to
the agency about the project.
9. OEG reconciliation of
final business case
1. Compare initial business case to final2. Evaluate need for follow up report3. Issue final report, if necessary
Stage 1 – Steps 1-7
Stage 2 – Steps 8-9
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SECTION 4
The Council CEG is responsible for evaluating business cases for feasibility, cost-
effectiveness, and efficiency before an agency proceeds with any significant outsourcing of services and possible reduction of government staff.
Business Cases Business cases are required for any procured contractual service that
meet the definition of “outsource”, regardless of amount. A business case defines the expectations of the project in terms of the
key benefits to be achieved by contracting out or outsourcing of services.
The business case should provide a detailed analysis of the financial costs, benefits, and risks of the project.
The business case should present a clear basis for the recommendation to contract out the service.
CEG has reference documents to help agencies identify how to write and submit business cases.
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Office of Efficient Government27
Upon request, CEG staff can assist agencies during all stages of project development with:
Business Case Development Tools
Lessons Learned
Successful Outsourcing Characteristics
Third Party Review
Training of Staff
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Thank You!
How To Contact Us:Telephone: (850) 414-9200
Facsimile: (850) 414-6065
Email: [email protected]
http://dms.myflorida.com/other_programs/council_on_efficient_government