Performance Details

Department of Administration - Office of Procurement and Property Management

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Mission

To assist state agencies and political subdivisions to achieve their public mission and reduce costs by providing professional procurement and property management services.

Core Services

• Establish cost-effective multi-agency term contracts for high use supplies and services needed by all agencies.
• Provide training to client agencies on the application of the State Procurement Code (AS 36.30, 2 AAC 12) and the Alaska Administrative Manual.
• Provide operational training, oversight, and guidance to all State agencies for inventory, property disposition, and final approval authority of fixed assets.
• Accept, warehouse, distribute, and/or sell incoming Federal and State surplus property to eligible program recipients.
• Promote full and open competition in procurement.

Mission Results

Core Services

A: Improved cost effectiveness of state procurement and maximized efficiency and effectiveness of Federal and State property programs.  Details >

A1: Establish cost-effective multi-agency term contracts for high use supplies and services needed by all agencies.  Details > TARGET #1: 80% of new contracts executed produce a 5% savings over a current benchmark rate based on estimated volume in the respective solicitation. TARGET #2: Promote full and open competition by minimizing Limited Competition and Single Source Request for Alternative Procurements by 20%. A2: Provide training to client agencies on the application of the State Procurement Code (AS 36.30, 2 AAC 12) and the Alaska Administrative Manual.  Details > TARGET #1: The average course rating for course content and instruction as effective and applicable shall exceed 3.00 out of 4.00. A3: Provide operational training, oversight, and guidance to all State agencies for inventory, property disposition, and final approval authority of fixed assets.  Details > A4: Accept, warehouse, distribute, and/or sell incoming Federal and State surplus property to eligible program recipients.  Details > TARGET #1: Total revenue for Federal Surplus Property sales will increase by 7% over the previous year. TARGET #2: Total State Surplus auction revenue will increase by 7% over the previous year. TARGET #3: Track the number and value of items that have been reutilized through a transfer to another state agency. A5: Promote full and open competition in procurement.  Details >

Performance Detail

Target #1: 80% of new contracts executed produce a 5% savings over a current benchmark rate based on estimated volume in the respective solicitation. Percent of New Contracts With A 5% Savings Year YTD Total 2021 100% 2020 100% Analysis of results and challenges: n FY2021, 100% of the 18 statewide contracts entered into by the Office of Procurement and Property Management (OPPM) achieved more than 5% savings over a current benchmark rate, achieving on average 29% savings. Benchmark rates are set based on the best estimate of what the State would have paid without a statewide contract in place. In cases where the benchmark is a list price or manufacturer's suggested retail price (MSRP), the benchmark is reduced as list price or MSRP pricing is typically higher than what would be charged by a retailer. The number of new contracts awarded in 2021 is reduced due to the staff being reassigned to assist with COVID-19 related procurement.

Target #2: Promote full and open competition by minimizing Limited Competition and Single Source Request for Alternative Procurements by 20%. Number of Approved RAPs Fiscal Year # of Approved RAPs Total $ Value FY 2021 157 +93.83% 162,179,913 -15.37% FY 2020 81 -19.8% 191,634,288 -17.44% FY 2019 101 232,109,438 Analysis of results and challenges: The overall volume of RAPs in FY2021 is up from previous years but the overall value decreased. This is a direct result of challenges COVID-19 presented to procurement offices across the state. Many smaller dollar contracts that normally would have been resolicited were approved for unanticipated extension RAPs to allow services to continue during the pandemic.

Target #1: The average course rating for course content and instruction as effective and applicable shall exceed 3.00 out of 4.00. Course Ratings Fiscal Year Courses Taught Number of Students FY 2021-Qtr4 25 193 FY 2021-Qtr3 0 0 FY 2021-Qtr2 0 0 FY 2021-Qtr1 0 0 FY 2020 11 133 Analysis of results and challenges: OPPM courses received an average score of 3.77 out of 4.00 which exceeds the target goal. The increase in numbers of classes offered and students attending in FY 2021 is directly related to OPPM hiring and standing up their dedicated procurement training section. This allowed OPPM the ability to offer more classes including online training.

Target #1: Total revenue for Federal Surplus Property sales will increase by 7% over the previous year. Federal Surplus Property Sales Revenue Fiscal Year Federal Surplus Sales FY 2021 $422,749 FY 2020 $333,857 FY 2019 $199,808 FY 2018 $167,716 FY 2017 $143,977 FY 2016 $174,916 Analysis of results and challenges: Sales revenue from Federal Surplus Property Program increased by 21% in FY 2021 exceeding the target of 7%. This is due to an increase in operational efficiency and marketing efforts. OPPM expects the availability of federal property to remain consistent with FY 2021 and will continue to utilize aggressive marketing strategies to meet the 7% increased revenue target in future fiscal years.

Target #2: Total State Surplus auction revenue will increase by 7% over the previous year. State Surplus Auction Revenue Year Sales Revenue Percent Change 2021 $478,435 -21% 2020 $583,070 +14% 2019 $511,894 +81% 2018 $282,629 -37% 2017 $449,820 +38% 2016 $326,973 +100% Analysis of results and challenges: Sales revenue from State Surplus Property decreased by 21% in FY2021. The shift to telework in response to COVID-19 resulted in low amounts of property excessed by SOA agencies resulting in a reduction in revenue. It is anticipated that sales volume will increase in FY2022 as agencies return to work in their office locations and are able to identify property that is beyond its useful life. A consolidation of Department Property Officers under the Property Management Office has the potential to increase operational efficiency by standardizing and streamlining the surplus process. This would result in excess property being marketed at higher dollar values due to decreased depreciation and the overall State of Alaska property inventory being more accurate. .

Target #3: Track the number and value of items that have been reutilized through a transfer to another state agency. FY20 Summary Value of Reutilized Items Fiscal Year # of items Reutilized Value of items Reutilize FY 2021 816 $49,629 FY 2020 1,023 $122,966 FY 2019 937 $219,761 FY 2018 500 $98,328 FY 2017 1,027 $336,959 Analysis of results and challenges: The value of reutilized property decreased in FY21 due to budget constraints which led to agencies utilizing property beyond its useful life. Additionally, COVID-19 negatively impacted the first and second quarters of FY2021 due to the increase in telecommuting for eligible State of Alaska staff, thereby delaying identification of excess property. The Property Management Office introduced a tier system on the GovDeals platform which allows State employees to easily access surplus property for reutilization in their offices. It is anticipated that this platform will grow over FY2022 and lead to increased reutilization of property.

Current as of December 1, 2021