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TOR-2013-9 CHIEF PROCUREMENT OFFICER p3-q Agawam Massachusetts Office of the Mayor 36 Main Street, Agawam, MA 01001 mayor@agawam.ma.us Richard A Cohen T: 413.786.4520 Mayor F: 413.786.9927 C-) CD 15 January 2014 C__ Christopher Johnson Council President Agawam City Council 36 Main Street Agawam, MA 0100i Dear Council President Johnson: Below are the answers to the questions you provided me with following Monday night's City Council Workshop: 1. Do you anticipate that the successful candidate have prior procurement experience and if so, how much experience? Yes, I would like the successful candidate to have at least 2 to 5 years of prior procurement experience. While said prior experience is preferred, I would also be willing to examine candidates that may compliment their lack of experience with a graduate education in administration, finance or operations management. 2. Do you anticipate that the successful candidate be previously certified as a CPO or will he/she have to attend certification classes? Yes, I would expect the successful candidate to be presently certified by the Office of the Inspector General or be able to be certified within the first few months of service. It is important to also keep in mind that certification through the Massachusetts Certified Public Purchasing Official Program requires renewal, and thus more classes, every three years. The certification is not a one- time deal as the laws, as noted, are in perpetual flux and recertification is required by the Commonwealth. In order for the town to legally go out for RFPs under Chapter 30B, Section 6 the town shall have a certified Chief Procurement Officer. 3. Would the CPO be responsible for both the school department and the town procurement? Yes, the CPO will be responsible and accountable for all purchasing for both the town and school department. The CPO will work with the school's Business Manager to prevent duplication of procurement where possible and required by law (some school purchases, through grants and other means, allow for the purchased supplies or services only in educational settings). The CPO will also determine when the town would benefit more by going out to bid than merely purchasing off the state bid list or ignoring the bidding laws because a certain transaction may be exempt and we may still get a better deal by bidding. 4. Will the CPO be dealing with invitation for bids and requests for proposals only or for all town/school purchasing? The CPO would be dealing with all town procurement and all IFBs/RFPs. regardless of which department or segment of the town is benefiting from the transaction. In addition the CPO would be responsible for the disposal of surplus municipal property. The CPO will ensure that contractors for the town are preparing documents correctly, all bidding laws are followed and all other requirements are met (i.e. prevailing wage and reporting laws) to prevent any liability from a resulting state audit. 5. What has the town done since the state enacted Chapter 30(b)? Who has been handling procurement issues? First enacted in 1989 Chapter 30B is one of four chapters that collectively make up the "Bidding Laws" (Chapter 7C is the newest law enacted in 2012). Since the enactment of 30B procurement issues have been handled individually by each separate department. They were not preparing bids or providing the same type of necessary oversight and procurement duties that would be encompassed by the CPO. There has not been an individual solely responsible for procurement and purchasing oversight since the enactment of Chapter 30B. The CPO would be focused on procurement rather than have procurement issues as a tangential duty in addition to regular tasks. The Mayor will continue, as required by Charter, to be the awarding authority. 6. Will the CPO position be a full time or part time position? The CPO position will be full-time. 7. Would the CPO oversee purchasing for all departments? Yes, the CPO would oversee all procurement for all departments. The CPO would also ensure procurement is not duplicated or misappropriated and also to make sure all procurement complies with all Massachusetts General Laws: o G. L. c. 7C — Capital Asset Management o G. L. c. 30, §39M — Public Works Construction o G. L. c. 30B — Uniform Procurement Act o G. L. c. 149 — Public Building Construction Page 2 of 5 8. Your communications detail where part of the salary is coming from, but not all — what is the full amount of the projected CPO salary and from what line items will it be funded? The salary would be at Tier 3 Step 1 of the Administrative Union Contract currently amounting to $57,278.09. Half of that salary would come from the Water & Sewer enterprise funds, totaling $28,639.05. The remaining $28,639.4 would be funded through a salary line item in the General Fund. Additionally, the Regular Temporary line item of the Law Department's budget would be decreased by$11 ,000 to $0. 9. The initial salary appears to come from the Water & Sewer Departments, will that continue or is that just for the first fiscal year? The Water& Sewer Departments will continue to contribute half of the salary in each fiscal year following the implementation of the position as many bids will continue to come from both departments. 10. During the last fiscal year, please provide a list of all town invitation for bids and requests for proposals? Compiling a list of all bids and proposals over the past year is more difficult than one might think. There is no centralized repository of all bid/proposals documents; they remain under the care of whichever department head instituted the action. On the other hand there have been 30 executive orders in the past year but this dods not take into account the work done under $25,000 because those payments are handled by purchase orders. Here are some bids/proposal highlights and a few upcoming projects (please also note that many Capital Improvement Program appropriations would also benefit from the appointment of a CPO as most well exceed $25,000): o Route 187 Intersection Design o High School Track & Field Facility Design o Golf Course Restaurant Vendor o Headstart Building Lease o School Street Park Phase 11 a Fire Station 11 Generator Replacement o Golf Course Motorized Golf Cart Replacement o Agawam Dog Park o Town Hall Emergency Generator Project o Iron Ductile Pipe o Tree Services o Blacktop/Paving Asphalt and Road Reconstruction o Street Sweeping Bids o Tuckahoe Turf Lease o Public Access Cable TV Studio o Meter Transmitter Units o Sand & Salt Materials o Water Meters Page 3 of 5 o Third-Party Vendor Plowing o Junior High School Roof Replacement o Line Stripping and Pavement Markings o Solicitation of Monthly Water Materials o Solicitation of Quarterly Sewer Materials o Granger Asbestos Bid o Jr. High Asbestos Bid o Seal Coating o Insurance Consultant Services for Liability Insurance o DPW GPS Black Box MRM Installation and Service o Police Station HVAC o Game & Lanes Brownfield's Study o Building Maintenance Uniform Bid o Pump Station Maintenance Agreements • Additionally there are pending projects including the bidding of a town wide vehicle repair policy/RFP have not been implemented because we do not have a dedicated individual to prepare and oversee our procurement related issues. The DPW also has a list of pending projects including new Street Signs, Pavement Crack Sealing, a Pavement Maintenance Program and the possibly of an on-call engineering firm for assistance on various road and signal improvement projects. • There are also contracts that are extended on identical terms because department heads do not always have the ability to go out for bid before the contract itself expires. Finally solid waste removal contracting is currently taking place and the town is entertaining the idea of going out to bid during the next round of negotiations to secure a better deal. • This list also does not take into account all the work done by the DPW and their enterprise funds or other projects because there is no master list or master tracking because procurement is currently decentralized in our town. Conversely projects are sidelined, delayed or inefficient because we do not have an individual that can coordinate with all the parties involved with these projects and keep everything on track, on-time and within (or under) budget. 11. What would the procurement department be compromised of — solely the CPO or will additional staff be added, for instance, clerical assistance? * The Procurement Department would be compromised solely by the CPO. 12. Where would the CPO office be physically located? Would the CPO have his/her own office? The CPO would share space in the Mayors Suite, at this time I do not foresee the CPO having their own office but storage space would be set aside within the Law Department for the compilation of all records relating to compliance matters. 13. Would the CPO be a non-union employee or a member of the Administrative Union? The CPO would be a member of the Administrative Union as this is not a confidential position. Page 4 of 5 After discussions following the City Council's Workshop I would like to clarify a point regarding the proposed ordinance. It is not my intention to create an entire new department but to create a CPO position. The Council may feel that amending the ordinance, to remove the creation of a department, would better suit the needs of the town. Suggested language would be as follows: §49-9 Chief Procurement Officer There is hereby established in the town the position of Chief Procurement Officer. The duties and responsibilities of the Chief Procurement Officer shall be set forth in a job description for the position. Please accept these answers to your questions and if you should have further questions please feel free to contact me prior to Tuesday's meeting. Respectful.1y, Richard A Cohen Mayor cc: Full Council File Page 5 of 5 Agawam Massachusetts Office of the Mayor 36 Main Street, Agawam, MA 01001 mayor@agawam.ma.us Richard A Cohen T: 413.786.4520 Mayor F: 413.786.9927 13 January 2014 Agawam City Council 36 Main Street Agawam, MA 0 100 1 Dear Councilor: I wanted to address the logistics and financing for the implementation of the Chief Procurement Officer (uCPO") position in our town. First, I would like to place the CPO vOth the Law Department to act not only as the contracting officer but also to provide assistance to the attorneys as they currently work on a part-time basis. Moreover, an individual located, full-time, with the Law Department will be able to provide the Town with the guidance that is not readily available with a part-time staff. The CPO will be able to help complete other tasks and projects in addition to the procurement work that will be transferred to him/her. Similarly the CPO will be readily available to assist the School Department with their procurement needs but he/she will not usurp the processes that the Schools have implemented. Financially, I suggest funding the position using a number of different sources beginning with the Water and Sewer Enterprise Funds. A large portion of the Town's procurement work is conducted on behalf of these two funds and as such they will contribute to half of the CPO's salary. Second, the Law Clerk position within the Law Department would not be funded and the amount contributed to the CPO's salary. The reasoning here is that the CPO will be able to handle all, and more, of the work that a part-time clerk would manage while also taking on more challenging legal tasks. The smaller remaining portion would be funded by the Town for conducting procurement work, oversight, leading projects and acting as a liaison with all Town departments, committees and the City Council for all procurement related matters. Please feel free to contact my office with any questions. Respectfully, Richard A Cohen Mayor I TOWN OF AGAWAM Department of Public .Works 1000 Suffield Street 9 Agawam, MA 01001 Tel (413) 8210600 * Fax (413) 8210631 Christopher J.Golbs o Superintendent MEEMORANDUM To: Mayor Richard Cohen; City Council CC: File From: Michelle C.Chase, P.E.—Town Engineer Date: January 13,2014 Subject: Procurement Officer The Agawam Engineering Division strongly supports the decision to create a Chief Procurement Officer position for the Town. The Engineering Division is often asked to assist the DPW in putting items and/or work out to bid. This ranges from the purchasing of materials (such as signs, catch basins, manholes, concrete, etc.), to hiring a contractor(for road work,pavement marldngs,traffic signal work, crack scaling,milling,reclaiming, paving, etc.), to issuing Requests for Proposals for design and engineering services (like die Feeding Hills Intersection project). The procurement process is complex and the rules seem to be constantly changing. Ensuring dud all rules and regulations are followed is both tedious and time consuming. Rules and regulations vary based on the type, quantity, and cost of the procurement. Having a Chief Procurement OfEcer(CPO) to ensure the Town fbllows these rules and regulations will not only protect the Town, but will also streamline the procurement process resulting in fewer delays on important projects and maintenance. Currently, the Engineering Division spends a lot of time searching for guidance on various rules and regulations in the Massachusetts General Law or by calling the State or even surrounding communities. The State of Massachusetts provides a website called Comm-PASS (Commonwealth Procurement Access and Solicitation Site) for procurement valued over $10,000. This seems like a valuable resource which the Town should take advantage of for many of its procurement needs. In order to access the site, the Town's procurement staff must complete the required training. Having a Chief Procurement Officier that has completed this training and can access the site will help speed up the procurement process. Also, publishing our procurement needs on this statewide site will likely help save money on prcjcx�s and maintenance. If you have any questions,please do not hesitate to contact me. Sincerely, Michelle 4C. U. L.E Town Engineer uAprocur=wt-city council nvcft 0 1 2014.doci qeyfoo Az Cal Agawam Public Schools 30- .1306 Springfield Street Suite I Feeding Hills, MA 01030 -2198 ALLISON LECLAIR, M. Ed. WILLIAM P,SAPELLI,CA.G.S ROBERT CLICKSTEIN,M.B.A. Assistant Superintenderit for Curriculum, Superintcndent of Schools School Busincss Administrator Instruction&Human Resourcts (413)821-0548 (413)821-0550 (413)821-0568 Fax(413)789-1835 v^vw,agawamrub[1cschools.org December 11,2013 Dear Mayor Cohen: As you know, I am currently going through the state MCPPO training in order to become designated as a Massachusetts Certified Public Purchasing Official for the school district. This designation is widely recognized by local jurisdictions in Massachusetts as an indication of familiarity with Massachusetts procurement practices. Although I have this knowledge, I am not as well-versed in Massachusetts procurement laws and practices as a dedicated Chief Procurement Officer would be. It is my opinion and recommendation that the Town of Agawam invest in a Chief Procurement Officer who would oversee the procurement process. .As the School Business Administrator, I would like to have access to a purchasing professional who could guide and support me with the IFB and RFP process for purchases over$25,000;proofing tuition contracts;vetting 3-year lease agreements; assisting in vendor issues; and ensuring CH30B compliance. It has been my experience working for other cities and towns that a CPO can save the district and the town money, as well as mitigate legal issues. My 18 years of purchasing experience gives me a unique perspective on what a purchasing professional can do. Theref6re, I would like to recommend and support the creation and subsequent hiring of a Chief Procurement Officer for the Town of Agawam. n r y, lio e C I stein School Business Administrator af c: W. Sapelli 4L-- INTEROFFICE MEMORANDUM TO: MAYOR RICHARD COHEN FROM: CHRISTOPHER C. JOHNSON, COUNCIL PRE,SIDENT SUBJECT: TOR-2013-9 DATE: JANUARY 14, 2014 During last night's City Council workshop, there were specific questions that arose during our discussion of TOR-2013-9 regarding your proposal to create the Position of Chief Procuren-lent Officer (CPO). Would you kindly supply the information to the fol-lowing? • Do you anticipate that the successful candidate have prior procurement experience and if so, how much experience? • Do you anticipate that the successful candidate be PrC�iOLISIY CC1766CCI as a CPO or will lie/she have to attend certification classes? • Would the CPO be responsible for both the school department and the town procurement? • Will the CPO be dealing with invitation for bids and requests for proposals only or for all town/school purchasing? • What has the town done since the state enacted Chapter 30(b)? Who has been handling procurement issues? • Will the CPO position be a full time or part tinie position? • Would the CP0 oversee purchasing for A deparLITICIILS? • Your communications (fetal] where part of the salary is coining from, but notall — what is the full arnount of the projected CPO salarvand from what line itell-is will it be funded? • The initial salary appears to come from the Water & Sewer Departments, will that contillLIC or is that just for the first Fiscal year? • During the last Fiscal ),car, please proVide a Est of all town inxlitation for bids and requests for proposals? • What would the procurement department be comprised of — solely the CP0 or will additional staff be added, for instance, clerical assistance? • Where would the CPO office be physically located? Would the CPO have his/her own office? • Would the CPO be a non-unlon employee ora member of the Adri-iinistrative Union? This inforniation is necessary for the Council to make all informed decision regarding this agenda itein. Thank You for VOLU 'ISSistance. cc: FUH C0111101 Solicitor TOR-2013-9 A RESOLUTION AMENDING THE CODE OF THE TOWN OF AGAWAM CREATING THE POSITION OF CHIEF PROCUREMENT OFFICER AS REQUIRED BY MASSACHUSETTS GENERAL LAWS Sponsored by Mayor Richard A Cohen Whereas, G. L. c. 3013, § 2 enables the creation of the position of Chief Procurement Officer by local by-law; and Whereas, G. L. c. 3013, § 6 requires the appointment of a Chief Procurement Officer before a municipality may use Requests for Proposals as a procurement tool; and Whereas, the Chief Procurement Officer would be trained and certified by the Commonwealth of Massachusetts' Public Purchasing Official Program; and Whereas, the Chief Procurement Officer will provide oversight, reporting and compliance with all applicable local ordinances, state laws, and related federal laws; and Whereas, the Chief Procurement Officer will be responsible for maintaining and improving upon the efficiency and effectiveness of all areas under his/her direction and control; and Whereas, Town Department Heads have overwhelmingly requested the appointment of a Chief Procurement Officer; and Whereas, the centralization of purchasing will allow the Town to reduce overhead and operational costs without compromising on service and support to residents; and Whereas, the institution of a Procurement Department headed by a Chief Procurement Officer would allow the Town more flexibility in obtaining the best price while also creating a more transparent and professional procurement process; and Whereas, the Attorney General and the Inspector General have stroay suggested the Town appoint a Chief Procurement Officer. > ri-I C-1) :Ec y >r- NOW, THEREFORE, BE IT RESOLVED BY THE AGAWAM CR a rri X COUNCIL that Chapter 49 of the Code of the Town of Agawam shall be amende�jby a' ;rZ adding the following section: >CD 7r, §49-9 Procurement Department- Chief Procurement Officer. C-) There is hereby established in the town a Procurement Department which shall be headed by a Chief Procurement Officer appointed by the Mayor. The duties and responsibilities of the Chief Procurement Officer shall be set forth in a job description for the position. Page I of 2 Dated this day of 2013. PER ORDER OF THE AGAWAM CITY COUNCIL Christopher C. Johnson, President A PROVED TO FORM AND LEGALITY )�incen't—F. dibscia, City Solicitor Page 2 of 2 Agawam Massachusetts Office of the Mayor 36 Main Street, Agawam, MA 01001 mayor@agawam.ma.us Richard A Cohen Tel: 413-786-4520 Mayor Fax: 413-786-9927 December 12, 2013 TO: Agawam City Council FROM: Mayor Richard A Cohen RE: Chief Procurement Officer Enclosed please find supporting letters from the Commonwealth of Massachusetts as well as Agawam Department Heads regarding the creation of a Procurement Department with a single employee, a Chief Procurement Officer. For your convenience the following is a list of the enclosed documents: Commonwealth of Massachusetts: 1. Inspector General's Letter 2. Attorney General's Letter Town of Agawam: 1. Auditor's Letter 2. Trea su rer/C ol lector's Letter 3. Director of Planning and Community Development's Letter 4. Director of Parks and Recreation's Letter 6. Superintendent of Public Work's Letter 7. Law Department's Letter THE COMN40NWEALTH OF MASSACHUSETTS OFFICE OF THEATTORNEY GENERAL CENTRAL MASSACHUSETTS DIVISION SUITE301 10 MECHANIC STREET MARTHA COAKLEY WORCESTER, MASSACHUSETTS 01608 TEL: (508) 792-7600 AT70RNEY GENERAL FAX: (508) 795-1991 www.mass.gov/ago November 5, 2013 Mr. William Reichtel Town of Agawam Legal Department Agawam City Hall 36 Main Street Agawam, Ma. 0 100 1 RE: Chief Procurement Officer Dear Mr. Reichtel, You recently contacted the office of the Attorney General seeking support for your proposal for a fWl time procurement position within the City of Agawam. While I will leave the appropriate allocation of fiscal resources for the Town to the Mayor and the City Council, the Attorney General supports transparent and professional procurement processes. Thank you for your attention to this matter. Sincerely, Edward R. Bedrosian Jr. First Assistant Attorney General Ebe eommonwealtb of Iftioubuatt!6 Office of t�e Nqector general JOHN W. MCCORMACK KI, STATE OFFICE BUILDING ONE ASHBURTON PLACE ROOM 1311 BOSTON.MA 02108 GLENN A. CUNHA TEL:(617)727-9140 INSPECTOR GENERAL FAX:(617)723-2334 November 7, 2013 Mr. William Reichtel Town of Agawam Legal Department 36 Main Street Agawam, MA 01001 RE: Chief Procurement Officer; Request for Proposals Process Dear William: In response to your request for a letter clarifying the requirement of a Chief Procurement Officer ("CPO") in conducting a Request for Proposals process, please see the following: Per M.G.L. Chapter 3013, Section 6, which governs the Request for Proposals process, Section (a) states, "a chief procurement officer may enter into procurement contracts in the amount of $25,000 or more utilizing competitive sealed proposals, in accordance with the provisions of this section." Further, under this same section, the Chief Procurement Officer must first determine in writing that selection of the most advantageous offer requires comparative judgments of factors in addition to price, specifying the reasons forthe determination. Section (b) requires that the CPO solicit the proposals through a Request for Proposals. The law is clear that only a Chief Procurement Officer can conduct a Request for Proposal process under M.G.L. Chapter 3013, Section 6. If you have any further questions, please feel free to contact me. Thank you. V e�K truly yours, Natasha M. Bizanos Senior Counsel/3013 Coordinator All DEC - pl, 18 'OFFICE TOWNOFAGAWAM AUDITING DEPARTMENT,TOWN HALL,36 MAIN STREET,AGAWAM,MA 01001 (413)726-9707 INTEROFFICE MEMORANDUM TO: Mayor Richard Cohen FROM Cheryl St. John, Town Auditor RE: Procurement Officer Position DATE: December 5, 2013 Pursuant to our conversation regarding whether our current procurement set up is sufficient or to consider establishing a new position of Procurement Officer, I am following up as requested. Given the complexities of the regulations and requirements mandated by the Commonwealth, that the city must adhere to, I would concur that the most prudent step would be to actively explore the creation of such a position. In my role as Auditor, I see many instances where having a professional procurement officer would greatly benefit the city. With so many layers of requirements overlapping the many areas of purchasing, a single point person with this oversight responsibility would be of great value to the city and its endeavor to be compliant and avoid any costs of procurement violations. A procurement officer is responsible for managing the purchasing and disposal activity for a city. There are two types of purchasing or procurement departments: centralized and decentralized. In a centralized model all requests for materials or goods are center to one department. In a decentralized model, which we currently use, individual departments can process their own purchases. I feel that a centralized model is more beneficial to the Town. With a procurement department all contracts and records would be maintained in a centralized location. And, all purchases could be reviewed to make sure they comply with Massachusetts procurement laws and town policies by a certified individual who is trained to comply with the procurement laws which are complex and constantly changing. The Procurement officer would manage the request for proposal process and bid tendering. The procurement officer would be responsible for strategic planning and providing procurement advice to all departments. Advanced planning, group buying, and negotiated pricing are all strategies used to reduce costs and increase profitability. In most organizations, the implementation of procurement strategies is used to reduce overhead and operational costs without compromising on service to customers. It would be helpful to the Accounting and other departments if the purchase orders were electronically entered into our Munis software by the Procurement Officer as well. In closing, I strongly feel the Town of Agawam should establish a Procurement Officer Position and should the city decide to initiate the new position, I strongly urge that consideration be given to budgeting for training and certification for this position as well. If you have any questions do not hesitate to call me at 726- 9707. OFA TOWN OF AGAWAM MEMORANDUM ED To: Mayor Richard A. Cohen CC: From- Laurel A. Placzek Date: December 10, 2013 Subject: Chief Procurement Officer Pursuant to your request,I am writing in support of the Town's appointment of a Chief Procurement Officer. A Chief Procurement Officer would be responsible for developing Requests for Proposals and Invitations to Bid as well as ensuring the Town's compliance with Massachusetts General Laws, Chapters 7, 30, 30B, 149 and 149A. Said individual should become certified by attending the Massachusetts Certified Public Purchasing Official Program sponsored by the Inspector General's Office. The following is from the Department of Revenue's Guide to Financial Management for Town Officials: "A considerable portion of municipal spending consists of the purchase of supplies and materials. As a result,the purchasing function is a key element in a conununity's financial management system. The goal of the purchasing function is to ensure that quality goods and services are procured at the lowest possible price. The key e�lements of purchasing include-. setting standards and specifications for the procurement of goods and services,- soliciting quotations and analyzing them;awarding bids;receiving goods and services; and paying for purchases." These are functions that should be performed by or under the supervision of the Chief Procurement Officer. Town of Agawam 4 36 Main Street Agawam, Massachusetts 01001-1837 Tel. 413-786-0400 Fax 413-786-9927 December 11, 2013 Mayor Richard A. Cohen 36-Main Street Agawam, MA 01001 Dear Mayor Cohen: The Planning Office wishes to express its strong support for the creation of a Procurement Office r position. Having been responsible for the preparation of many Requi;sts for Proposals (RFP's) and contracts, access to a professional' who is knowledgeable in procurement law would be tremendously helpful. Procurement law is very complex and changes regularly. Also, lack of conformance with Procurement requirements opens the Town to expensive legal actions. Most communities the size of Agawam have Procurement Officers. I feel that the creation of an Agawam Procurement Officer position is long overdue. Sincerely, Deborah S. Dachos, Director Office of Planning and Community Development Town of Agawam Parks & Recreation Department Jf 1000 Suffield Street T Agawam, MA 0 100 1 Tel (413) 821-0513 Fax (413) 821-0637 December 11, 2013 Richard A Cohen,Mayor 36 Main Street Agawam, MAO 100 1 Re: Procurement Officer Dear Mayor Cohen: On behalf of the Parks and Recreation Department I would like to express my support for the creation of a Procurement Officer to handle all bidding work for the Town. From my experience with public procurement and contracting I know the laws to be complex and ever- changing. Having an individual whose job it is to hand]e al I the bidding and contracting work for the Town would be a great asset. Moreover, a trained and knowledgeable Procurement Officer would be an asset to the Town by ensuring conformance with all state and local laws while preventing the likelihood of bid protests. It is my opinion that a community of our size and complexity should create a procurement position. Sincerely, Christopher Sparks, Director of Parks &Recreation FA TOWN OF AGAWAM Department of Public Works 1000 Suffield Street - Agawam MA 01001 Tel (413) 821-0600 - Fax (413) 821-0631 Christopher J. Golba — Superintendent MEMORANDUM To: Mayor Richard A Cohen From: Christopher J. Golba, Superintendent Date: December 11, 2013 Subject: Procurement Officer/Purchasing Agent As per our conversation regarding the establishment of a Procurement Officer/Purchasing Agent to manage all bidding and contractual issues, I believe it is imperative that the position be created to protect the Town from noncompliance with the Massachusetts procurement laws and to facilitate the bidding process for the Town. The current methodology the Town uses for procurement is decentralized and dysfunctional. Each department generates bid documents and contracts as needed. Without a centralized point of contact, the legal requirements of bidding and contract management could be overlooked and, as a result of the changing regulations, lack of training for each department the Town could be noncompliant with the Procurement Laws which could subject the Town to penalties and/or fines. The current procurement laws are complex, cumbersome and constantly changing. Although contract documents are filed in the Town Clerks office, there is essentially no oversight by a trained and certified Procurement Officer to monitor and administer the contacts and purchases to insure they meet the requirements of Town policy and most importantly Massachusetts Procurement regulations. Additionally, by creating this position and centralizing the procurement process in a single location, the procurement process for the Town would become streamlined, much more efficient, and the whole process could be monitored more effectively to protect the Town from potential violation of the procurement laws. Finally, I believe a Town of the size of Agawam with the inherent responsibility of managing a multimillion dollar organization absolutely needs a trained and certified individual to manage the millions of dollars of contracts that are awarded each year and strongly urge you to implement any measures which would create this position which will provide both benefit and value to our Town. MEMORANDUM Ad Agawam City Council To: Fr- Vincent Gioscia, Solicitor Date: 12 December 2013 Re: Chief Procurement Officer The creation of a Procurement Department with a Chief Procurement Officer would be a great asset to the Town. At this time procurement and bidding is decentralized with each Department heading their own program. While this system works in smaller settings, our Town has reached a point where all proizurement oversight, bidding and contracting work should be centralized under a Chief Procurement Officer. Under this approach the Chief Procurement Officer would oversee all current purchasing by departments, ensuring compliance with state and local rules as well as identifying cost savings and consolidation. Moreover the Chief Procurement Officer would be responsible for conducting all the Town's bidding and contracting work that is currently dispersed among the relevant Department Heads. Consolidating this important function would ensure that complex and evolving procurement laws are followed and bidding concerns addressed quickly and consistently across different bids and projects. Bid awards and contracts would become more insulated to contests and less likely to open the Town to liability for failing to address some of the more obscure, but still binding, procurement rules. Additionally using a Chief Procurement Officer would not only allow for more streamlined bidding using traditional methods but would also give the Town access to Requests for Proposals. These are a tool available only to municipalities that have appointed a Chief Procurement Officer to oversee their administration. Requests for Proposals allow the Town to seek the best bidder for specific and generally unique projects on their qualifications and negotiate an advantageous price, All bidding, contracting and oversight work would be better handled by a Chief Procurement Officer. In sum, the Law Department supports the creation of a Procurement Department with a Chief Procurement Officer. The individual would give the Town access to a trained and knowledgeable procurement professional and provide cost savings to residents. In addition the Town would be better insulated from bid protests and communicate efficiently with state and local offices during bidding and construction. Finally, putting all bid contracting under one umbrella would ensure the creation of consistent contracts administered through one department again providing costs savings and security for the Town.