Agenda Item 8C
February 3, 2015
Introduction
MEMORANDUM
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Attorney
G\
f11ij
SUBJECT:
Introduction:
Expedited Bill 7-15, Reorganization - Executive Branch -
Procurement
Expedited Bill 7-15, Reorganization Executive Branch - Procurement, sponsored by the
Council President at the request of the County Executive, is scheduled to be introduced on
February 3, 2015. A public hearing is tentatively scheduled for February 24,2015 at 1:30 p.m.
Background
Bill 7-15 would establish the Office of Procurement as a principal Office of the Executive
Branch and transfer procurement related functions to the Office of Procurement. Prior to July 1,
2008, the Office of Procurement was a principal Office of the Executive Branch. At the request
ofthe Executive, the Council enacted Bill 4-08, Reorganization - Executive Branch, on April 15,
2008, effective July 1, 2008. Part of the reorganization accomplished in Bill 4-08 was to create a
new Department of General Services (DGS) and transfer certain functions to the new Department,
including Procurement. The Executive is now requesting to pull the Office of Procurement out of
DGS and re-establish it as a principal Office of the Executive Branch. The Office would include
the procurement function as well as the duties that have been handled by the Office of Business
Relations and Compliance, which ensures that contractors meet the wage and minority-owned
business provisions of the procurement law. The Executive explained why he requested this
reorganization in his transmittal memorandum at ©7.
County Charter §217 provides that the Council "may prescribe by law the organization of
the Executive Branch of County government." Charter §217 also authorizes the Executive to
submit a reorganization plan to the Council for approval. If the Council does not disapprove the
plan within 90 days after it is presented to the Council, it becomes law.
In
addition to requesting
Bill 7-15, the Executive submitted Reorganization Plan No.1-IS establishing the Office of
Procurement as a principal office of the Executive Branch under Charter §217 on January 22. See
©8-11. The Council does not have the authority to amend the reorganization plan. The Council
must approve it, disapprove it, or let it become law without taking action. However, the Council
can amend Bill 7-15 and disapprove the reorganization plan.
This packet contains:
Expedited Bill 7-15
Legislative Request Report
Executive's Transmittal Memorandum
Reorganization Plan No.1-IS
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Expedited Bill No .
...!.7_-1~5:..--
_ _ _ __
Concerning: Reorganization - Executive
Branch - Procurement
Revised: January
23, 2015
Draft No.
_1
Introduced:
February
3,2015
Expires:
August
3, 2016
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ __
Sunset Date: .:..:,N=on=e'--_-:::--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President at the Request ofthe County Executive
AN EXPEDITED ACT
to:
(1)
establish the Office of Procurement as a principal Office ofthe Executive Branch;
(2)
Transfer procurement related functions to the Office of Procurement; and
(3)
generally amend the law regarding procurement and related functions.
By amending
Montgomery County Code
Chapter lA, Structure ofCounty Government
Section lA-201
Chapter 2, Administration
Sections 2-30 and 2-64N
Chapter lIB, Contracts and Procurement
Section 11
B-1
Chapter 19, Erosion, Sediment Control and Stormwater Management
Section 19-29A
Boldface
Underlining
[Single boldface brackets]
Double undedining
[[Double boldface bracketsD
* * *
Heading or defined term
Added to existing law
by
original
bill.
Deletedfrom existing law
by
original
bill.
Added
by
amendment.
Deletedfrom existing law or the
bill by
amendment.
Existing law unqffocted by bill.
The County Council for Montgomery County, Maryland approves the following Act;
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ExPEDITED Bill
No. 7-15
1
Sec. t. Sections IA-201, 2-30, 2-64N, lIB-I, and 19-29A are amended as
follows:
IA-20t. Establishitig departments and principal offices.
(a)
Executive Branch.
2
3
4
5
6
7
8
(1)
These are the departments and principal offices ofthe Executive
Branch.
*
*
*
*
*
*
Procurement [Section 2-64NJ
9
10
11
12
13
14
Division 5. DEPARTMENT OF GENERAL SERVICES.
2-30. Department of General Services - Functions.
The Department of General Services must:
[(a)
administer, through the Office ofProcurement, the procurement system
under Chapter lIB;]
[(b)]
ill
acquire and dispose of real property, except real property used
15
16
17
18
19
(or intended to be used) for right-of-way governed under Chapter 49,
including roads, streets, highways, bridges, culverts, storm drainage
systems, pedestrian and bicycle pathways and walkway systems;
[(e)]
ill
design and build County buildings, including public parking
20
21
facilities under Chapter 60;
[(d)]
(£)
maintain County vehicles, including heavy and light equipment
22
23
24
and transit equipment;
[(e)]
@
remodel and renovate County buildings, except public parking
facilities under Chapter 60, which remain open during the remodeling
or renovation;
[(f)]
ill
repair and maintain County buildings, except public parking
25
26
27
facilities under Chapter 60;
1.docx
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reorganization-executive branch-procurementlbill
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ExPEDITED BILL
No.
7-15
28
29
30
31
32
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34
[(g)]
ill
manage County property and identify and acquire real property
needed for the operation of County government;
[(h)]
(g)
[(i)]
(hl
plan and implement the use of space in County buildings; and
operate mail, printing, duplication, and archiving services.
Division 20. OFFICE OF PROCUREMENT.
2-64N. Functions.
[The Office of Procurement is part of the Department of General Services.]
The Office of Procurement must:
35
36
37
38
39
*
liB-I.
Definitions
*
*
*
*
*
Director
means the Director of the Office of Procurement [Department of
General Services] or the Director's designee.
40
41
*
*
(b)
*
*
*
*
42
43
44
45
46
47
19-29A. Watershed restoration grants program.
To identify non-profit organizations to perform water quality protection
or improvement activities, the Director of the [Department of General
Services] Office of Procurement may issue a competitive solicitation
under Chapter
lIB
that is limited to non-profit organizations.
48
49
*
*
*
Sec. 2. Transition. Any regulation in effect when this Act takes effect that
implements a function transferred to the Office ofProcurement by this Act continues
in effect, but any reference in any regulation to the Department of General Services,
from which the function was transferred, must be treated as referring to the Office
ofProcurement, to which the function is transferred. The transfer ofa function under
50
51
52
53
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1507 reorganization-executive branch-procurement\bill
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ExPEDITED BILL No.
7-15
54
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56
this Act does not affect any right ofa party to any legal proceeding begun before this
Act took effect.
Any responsibility or right granted by law, ordinance, regulation, delegation
of authority, contract, or other document to the Department General Services in
connection with the Procurement Law and Regulations is transferred to the Office
of Procurement.
57
58
59
60
61
62
Sec. 3. Expedited Effective Date.
The Council declares that this legislation
is necessary for the immediate protection ofthe public interest. This Act takes effect
on the date
it
becomes law.
Approved:
63
64
George Leventhal, President, County Council
Date
65
66
Approved:
Isiah Leggett, County Executive
Date
67
This is a correct copy o/Council action.
68
Linda Lauer, CMC, Clerk of the Council
Date
Gf:lJaw\bills\1507 reorganization-executive branch-procurement\bill
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LEGISLATIVE REQUEST REPORT
Expedited Bill 7-15
Reorganization
-
Executive Branch
-
Procurement
DESCRIPTION:
Bill 7-15 would create the Office of Procurement as a principal office
within the Executive Branch of the County, rather than as a division
within the Department of General Services (DGS).
The inclusion of the procurement function within a department that itself
procures major goods, services, and construction has raised perceived
issues regarding the independence of the procurement function. For
example, in FY20l4, DGS spent $855 million on procurement matters of
the County's total $3.66 billion, which amounts to 25% of the County's
procurement expenditures. Moreover, DGS engages in some of the
County's most complex and sophisticated procurements that involve
construction of buildings and fleet management.
In
addition, several
obligations have been placed on DOS since 2007 that increase the
complexity ofkeeping the procurement function within DGS, namely, the
expansion of the small business reserve program in 2009, the expansion
of the prevailing wage law in 2009, and the whistleblowers statute in
2010. During the same period, DGS acquired responsibility for a more
complex real property disposition process in 2012.
PROBLEM:
GOALS AND
OBJECTIVES:
As an independent principal office, the Office of Procurement will be less
susceptible to pressures to defer to other priorities within the department,
and can focus on the best interests of the County from an overall
procurement perspective. By having the status of a cabinet level
department, the separation of duties would remain intact without the
blurred lines of authority that have occurred during the tenure of
procurement as a division within DOS. The Office would include the
procurement function as well as the duties that have been handled by the
Office of Business Relations and Compliance, which ensures that
contractors meet the wage and minority-owned business provisions ofthe
procurement law.
Department of General Services
Office of the County Attorney
To be provided
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
To be provided
®
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EVALUATION:
EXPERIENCE
ELSEWHERE:
nla
Other large municipalities house their procurement functions
independent office of procurement.
In
an
SOURCE OF
INFORMATION:
David E. Dise, Director, DGS
Marc P. Hansen, County Attorney
APPLICATION
WITHIN
MUNICIPALITIES:
nla
PENALTIES:
nla
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE, MARYLAND 208SO
Isiab Leggett
County Executive
MEMORANDUM
January 22,2015
TO:
FROM:
George Leventhal, President
County Council
lsiah Leggett, County Executive
SUBJECT: Reorganization Plan and Expedited Bill Creating an Office ofProcurement within
County Government
I am atlaching for Council consideration Reorganization Plan No. 1-15 in
accordance with Section 217 ofthe Montgomery County Charter. This Plan will create an Office
of Procurement within County government, separate and apart from the Department ofGeneral
Services (DGS). Because Section 217 contemplates an
up
or down vote on the Plan as submitted,
I am also attaching an Expedited Bill to do the same in the event that Council wishes
to
make
. .
changes to the Plan.
The purpose ofthe Reorganization Plan is to establish as an independent principal
office the Office ofProcurement As such, the Office will be less susceptible
to
pressures
to
defer
to
other priorities within DGS and will be able to focus on the best interests ofthe County
from an overall procurement perspective. The Office will be able
to
focus on the various
contracting needs generated across County government, and ensure compliance of all
departments
with
best practices and laws, re8':llations and policies related to contracting.
Executive staff is available to assist the Council
iti
its consideration of this Plan.
Your assistance is appreciated.
Atlachments
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Reorganization Plan No. ..!-1-1=5_ _ __
.....
Concerning: Office of Procurement ­
Creation
Submitted to Council: January 22,2015
Council: _ _ _ _ _ _ _ _ __
Effective: _-:-_ _ _ _ _ __
Sunset Date: .:....:N=on=e:-:-:-_-::--_ _ __
Ch. _ _,
Laws
of Mont. Co. _ __
COUNTY EXECUTIVE
FOR MONTGOMERY COUNTY, MARYLAND
Charter Section 217 Plan of Reorganization
AN
ACT to:
(1)
(2)
(3)
establish the Office of Procurement as a principal Office ofthe Executive Branch;
transfer procurement related functions to the Office of Procurement; and
provide for the orderly transfer of procurement related functions to the Office of
Procurement.
By amending
Montgomery County Code
Chapter lA, Structure ofCounty Government
Section lA-201
Chapter 2, Administration
Sections 2-30
and
2-64N
Chapter lIB, Contracts and Procurement
Section l1B-l
Chapter 19, Erosion, Sediment Control and Stormwater Management
Section 19-29A
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unqffected by bill.
The County Executive for Montgomery County, Mary/and approves the following Act:
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REORGANIZATION PLAN
1-15
1
Sec. 1. Sections 1A-201, 2-30, 2-64N, 11B-1, and 19-29A are amended as
follows:
1A-201. Establishing departments and principal offices.
(
a)
2
3
4
Executive Branch.
(1) These are the departments and principal offices of the Executive
Branch.
5
6
7
8
*
*
*
*
*
*
Procurement [Section 2-64N]
9
10
Division 5. DEPARTMENT OF GENERAL SERVICES.
2-30. Department of General Services - Functions.
The Department of General Services must:
[(a)
administer, through the Office ofProcurement, the procurement system
under Chapter lIB;]
[(b)]
ill
acquire and dispose of real property, except real property used
11
12
13
14
15
16
17
(or intended to be used) for right-of-way governed under Chapter 49,
including roads, streets, highways, bridges, culverts, storm drainage
systems, pedestrian and bicycle pathways and walkway systems;
[(c)]
18
19
!hl
design and build County buildings, including public parking
20
21
facilities under Chapter 60;
[(d)]
l£)
maintain County vehicles, including heavy and light equipment
22
23
and transit equipment;
[(e)]
@
remodel and renovate County buildings, except public parking
24
25
facilities under Chapter
60,
which remain open during the remodeling
or renovation;
26
27
[(f)]
Uti
repair and maintain County buildings, except public parking
facilities under Chapter 60;
-2­
f:lJaw\bills\1507 reorganization-executive branch-procurementlcharter 217-reorg 1.docx
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REORGANIZATION PLAN
1·15
28
29
[(g)]
ill
manage County property and identify and acquire real property
needed for the operation of County government;
[(h)]
(g)
[(i)]
plan and implement the use of space in County buildings; and
operate mail, printing, duplication, and archiving services.
30
31
.au
32
33
34
35
Division 20. OFFICE OF PROCUREMENT.
2-64N. Functions.
[The Office of Procurement is part of the Department of General Services.]
The Office of Procurement must:
36
37
*
llB-t. Definitions
*
*
*
38
39
*
*
Director
means the Director of the Office of Procurement [Department of
40
41
General Services] or the Director's designee.
*
*
(b)
*
*
*
42
43
44
45
19-29A. Watershed restoration grants program.
*
To identify non-profit organizations to perform water quality protection
or improvement activities, the Director of the [Department of General
Services] Office of Procurement may issue a competitive solicitation
under Chapter lIB that is limited to non-profit organizations.
46
47
48
49
*
*
*
Sec. 2. Transition.
Any regulation in effect when this Act takes effect that
implements a function transferred to the Office ofProcurement by this Act continues
in effect, but any reference in any regulation to the Department of General Services,
from which the function was transferred, must be treated as referring to the Office
ofProcurement, to which the function is transferred. The transfer of a function under
50
51
52
53
M
f:\law\bills\1507 reorganization-executive branch-procurement\charter 217-reorg 1.docx
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REORGANIZATION PLAN
1-15
54
55
56
57
this Act does not affect any right of a party to any legal proceeding begun before this
Act took effect.
Any responsibility or right granted by law, ordinance, regulation, delegation
of authority, contract, or other document to the Department General Services in
connection with the Procurement Law and Regulations is transferred to the Office
of Procurement.
Approved:
58
59
60
61
62
Isiah Leggett, County Executive
Date
-4­
t\law\bills\1507 reorganization-executive branch-procurement\charter 217-reorg 1.docx