ARIZONA STATE SENATE
Phoenix, Arizona
procurement; printing
services
Purpose
Requires specified agencies to identify all costs associated with printing operations and to implement procedures to account for and collect data on the costs for each agency, establishes continuing education requirements for procurement officers and allows a procurement officer to select qualified vendors to receive an invitation for bids or a request for proposals for procurement of printing services.
On June 16, 1999, the Ad Hoc Committee on State Printing Needs (Committee) was established to conduct hearings and inquire into the degree of competition and cost-effectiveness of printing work conducted for the state, including identifying state print shops (including Arizona Correctional Industries (ACI) and state agencies) and taking inventory of printing and printing-related equipment, number of printing facilities, hours of operation and volume; categories of customers including intra-agency, interagency and other public and private customers; state contracts awarded to out-of-state and foreign country vendors and the volume of printing conducted pursuant to those contracts; and assessing the annual cost of print shop operations.
The Committee recommended the enactment of statutory and/or session law changes that would establish purchasing guidelines for state buyers of printing that provide maximum flexibility for procurement administrators to purchase the most appropriate type of printing from the most qualified vendors; require agency procurement administrators (state buyers) of printing to complete a training program to be developed in conjunction with private industry; require that vendors be prequalified for their category of work; study the feasibility of implementing a “credentialed” training program at ACI, overseen by a Board of Directors composed of public and private sector members; and conduct a study of in-plant facilities to determine the efficacy of the facilities.
Last year, H.B. 2388, a duplicate of S.B. 1015, was vetoed by Governor Hull on April 17, 2000.
The fiscal impact of this legislation is undetermined.
Provisions
1. Requires each procurement officer in each calendar year to complete at least 16 hours of continuing education specifically related to the officer’s procurement responsibilities.
2. Allows a procurement officer to select qualified vendors to receive an invitation for bids or a request for proposals for procurement of printing services.
3. Requires the Arizona Department of Administration (ADOA), State Compensation Fund, State Department of Corrections, Department of Economic Security, Department of Education, Arizona Game and Fish Department, Department of Public Safety, Registrar of Contractors and Department of Transportation, beginning July 1, 2001, to identify all costs associated with printing operations and to implement procedures to account for and collect data on the costs for each agency.
4. Requires the Auditor General to approve the costs identified by the agencies and the procedures for accounting for the costs, and the General Accounting Office (GAO) of ADOA to assist the specified agencies in designing and implementing the procedures necessary to identify costs and collect data.
5. Requires the Auditor General to prepare and submit a report, no later than June 30, 2003, on the printing operations of the agencies for the period July 1, 2001 through June 30, 2002, to the Governor, the Speaker of the House of Representatives, the President of the Senate, the Secretary of State, the Director of the Governor’s Office of Excellence in Government (OEG) and the Director of the State Library, Archives and Public Records.
6. Requires the report to include an analysis of the costs associated with each agency’s printing operations and of the benefits that the state derives from each agency’s printing operations.
7. Allows the OEG to conduct an analysis of the relative merits of possible consolidation, outsourcing or combination of consolidation and outsourcing of any or all of the state’s printing operations, consistent with the guidelines for the competitive government program.
8. Requires the Auditor General to review the effectiveness of the current training program in the next performance audit of the ACI, and analyze the potential costs and benefits of transforming the ACI printing operation into a credentialed training program for the benefit of inmates and the printing industry while still remaining a profit-making corporation.
9. Repeals elements of this legislation related to cost identification requirements, Auditor General approval, GAO assistance, Auditor General reporting requirements, OEG’s analysis and the Auditor General review on January 1, 2003.
10. Provides for a general effective date.
Prepared by Senate Staff
January 4, 2001