Performance Details

Department of Administration - Purchasing

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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.
• Accept, warehouse, distribute, and/or sell incoming Federal and State surplus property to eligible program recipients.

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: Process all Requests for Alternate Procurements (RAPs) within three days of receipt of proper documentation. 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 2.75 out of 4. A3: 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 5% over the previous year. TARGET #2: Total State Surplus auction revenue will increase by 5% over the previous year. TARGET #3: Over 70% of the auctions listed on the GovDeals website are sold through the site on an annual basis. TARGET #4: Track the number and value of items that have been reutilized through a transfer to another state agency.

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 Total 2018 91% Analysis of results and challenges: In FY2018, 91% of the eleven statewide contracts entered into by SSoA achieved more than 5% savings over a current benchmark rate, achieving on average 39% savings.The single contract that does not meet the 5% savings benchmark is the Juneau-area paper shredding contract, which does less than $50,000 per year in sales. Benchmarks 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 MSRP, the benchmark is reduced since list/MSRP pricing is typically higher than what would be charged by a retailer

Target #2: Process all Requests for Alternate Procurements (RAPs) within three days of receipt of proper documentation. Process Time for RAPs Fiscal Year # of RAPs Avg. Days w/ SSoA Avg. Agency Contacts Avg. Days Once Final FY 2018-Qtr4 50 0 .62 .32 FY 2018-Qtr3 26 0 .92 .35 FY 2018-Qtr2 26 .08 .42 .35 FY 2018-Qtr1 47 .02 .65 .19 Analysis of results and challenges: The overall volume of RAPs in FY2018 is up slightly from the previous year, while the number of days spent processing them decreased by 82% due to continued efforts in process improvement, internal communication improvements, and external training aids. One average, we made contact with agencies for more information .65 times per RAP, down 64% from FY2017, but still higher than our target of .25. Part of this is due to newer staff coming on in Q3 who were asking questions as part of the learning process. We expect to get closer to our target as these staff become more accustomed to RAPs and know when/why to ask for more information.

Target #1: The average course rating for course content and instruction as effective and applicable shall exceed 2.75 out of 4. Course Ratings Fiscal Year Courses Taught Number of Students Average Score FY 2018-Qtr4 15 127 3.75 FY 2018-Qtr3 9 108 3.78 FY 2018-Qtr2 11 175 3.76 FY 2018-Qtr1 12 204 3.85 Analysis of results and challenges: Shared Services of Alaska courses received an average score of 3.79 out of 4.00, exceeding our benchmark. Class sizes were down slightly from FY2017, as anticipated given the three-year re-certification cycle. Class sizes will peak again in FY2020.

Target #1: Total revenue for Federal Surplus Property sales will increase by 5% over the previous year. Federal Surplus Property Sales Revenue Fiscal Year Federal Surplus Sales FY 2018 $167,716 FY 2017 $143,977 FY 2016 $174,916 FY 2015 $278,262 FY 2014 $269,704 Analysis of results and challenges: Sales revenue from Federal Surplus Property increased by 14% in FY2018 from prior year review. It is critical to note that in FY2014, FY2015, and FY2016 the Shared Services of Alaska (SSoA) had access to multiple high value pieces of Federal Property to include items such as a Coast Guard vessel, prefabricated buildings, tractors, and several aircraft. Due to the high value of these items, FY2014, FY2015, and FY2016 sales total are outliers with the other fiscal year’s being more in line with historical sales volumes on an annual basis. SSoA expects the availability of Federal Property to remain level with FY2018 and projects a 5% increase over the historical sales average in Federal Surplus sales revenue in FY2019.

Target #2: Total State Surplus auction revenue will increase by 5% over the previous year. State Surplus Auction Revenue Fiscal Year Sales Revenue Percent Increase FY 2018 $282,629 -37% FY 2017 $449,820 38% FY 2016 $326,973 100% FY 2015 $163,121 54% FY 2014 $105,833 Analysis of results and challenges: While there was a 37% reduction in sales for FY2018, it is important to note that the FY2016 and FY2017 revenues included large lot sales of weapons excessed by the Department of Public Safety. The high volume of weapons has been liquidated and revenue is anticipated to stabilize. Also, for FY2018, SSoA anticipates sales volume will remain level as we experience an increase in property re-utilization due to budget restrictions.

Target #3: Over 70% of the auctions listed on the GovDeals website are sold through the site on an annual basis. Items sold through the GovDeals Website Fiscal Year # of items placed # of items sold % of items sold on Web FY 2018-Qtr4 427 412 96% FY 2018-Qtr3 357 331 92% FY 2018-Qtr2 720 643 89% FY 2018-Qtr1 863 773 90% Analysis of results and challenges: In continuing efforts to streamline the surplus property disposal process, SSoA began utilizing the GovDeals Surplus auction website several years ago. In FY2018, over 91% of the lots placed on the GovDeals site were sold. The usage of online auction tools has increased competition and sales revenue. Items initially not sold via the auction process are re-evaluated and reposted on the auction site, reutilized by other state entities, or donated to qualified non-profit entities.

Target #4: Track the number and value of items that have been reutilized through a transfer to another state agency. FY16 Summary Value of Reutilized Items Fiscal Year # of items Reutilized Value of items Reutilize FY 2018-Qtr4 147 $40,398 FY 2018-Qtr3 275 $45,126 FY 2018-Qtr2 281 $142,144 FY 2018-Qtr1 209 $31,571 Analysis of results and challenges: As a result of the State Property Office’s continuing efforts to offer high quality products to agencies seeking property items in FY2018, the property program reissued over 912 property items valued at $259,239 by transferring used items from one agency to another.

Current as of October 8, 2018