Process Improvements

PROCUREMENT IMPROVEMENTS UNDER MAYOR RAHM EMANUEL

Transparency

eProcurement/Modernization. This project consists of four phases:

A) Posting of Subcontractors: Since April 2013, provides online list of all subs bidding with primes on low-bid contracts.

B) Posting of Bids Online: In June 2013, DPS began posting all competitive low bids submitted by vendors.  RFP/RFQ submittal posting is still in development. The City must address the critical issues of protection of respondent privacy and trade secret information and storage capacity of the large volume of files.

C) DPS Bid Tracker: This Phase will provide a graphic display on the DPS Website that shows the point at which each bid is at in the contracting process, from advertisement to award. (In Development)

D) Process and System Upgrade: This phase will provide for the start-to-finish purchasing modernization via the implementation of eProcurement; this phase is in progress and will occur in 3 stages: 1.Future Procurement Strategy & Business Process Reengineering: Development of the “Future Model” of the procurement business model, including Business Process Reengineering (BPR); 2. Process and System Implementation: Implementation of eProcurement software (including fit gap analysis and procedural modifications); 3. Training: This stage will include DPS, City-wide User Department and vendor training on eProcurement software and procedures

Non-Competitive Review Board (NCRB) Procurement Process. April of 2012, DPS revised procedures to be more stringent and transparent, included posting of all applications for public viewing prior to NCRB meetings. Have realized a 50% decrease in approvals since tightening the policy restrictions and increasing transparency related to this process.

Reverse Auctions. July 2011, City launched process which allows for more open and competitive bidding online. Vendors compete in a dynamic, real time environment to drive price downward and save taxpayer dollars. 9 reverse auctions have been conducted.

RFQ/RFP Procurement Process Improvements. Vendor selection/declination notification letters sent at the time of short listing to all respondents prior to the evaluation process being completed. Additionally, options to enter into concurrent negotiations with multiple qualified Respondents single Respondent negotiations. If 2 or more proposals are close in scores and ranking, the Evaluation Committee is required to short list for oral presentations which is also mandatory for all contracts over $1 million.

Communication Improvements

DPS Buying Plan. June 2013, 15 month forecast of over 300 upcoming opportunities for 33 departments.  Updated 7 times, with increased information each edition.

Contract Award Notification Letters. Contract award notification letters to the subcontractors to alert them that the prime vendor committing to their utilization was the winner of the contract.

Feedback Email Address. dps.feedback@cityofchicago.org email address to allow the vendor community to send improvement suggestions.

M/WBE Forum. September 2012, online forum for use by prime contractors and Certified Firms.

DPS Alerts.  Over 8,000 subscribers learn about bid opportunities, and new programs weekly.

Vendor Communication - Program, policy or process change, information through an alert to nearly 10,000 vendors in the C2 system. 

Training and Outreach

2013 Vendor Fair. June 24, 2013, in collaboration with Cook County will host a Vendor Expo, featuring over 50 exhibitors including government and assist agencies.

1st Annual Construction Summit.  200 vendors and staffed by 30 government agencies, representing construction opportunities totaling $500 million to $1 billion.

DPS Public Workshops. 13 different classes on procurement and certification related issues free to the public. Participated in 115 events in 2012, and 55 events in the first two quarters of 2013.

DPS Internal Training. 21 trainings, over 1,100 City-wide staff trained.

New Procurement Programs

Diversity Credit Program.  October 2011, private sector firms obtain up to 5% utilization credit on a City contract for work performed by a certified firm on a prime’s private sector contracts.

Small Business Initiative. October 2011, designed to encourage small businesses to participate in City-funded construction projects, under $3 million in total cost.

Local Manufacturing Ordinance. February 2012, bid incentive to bidders providing goods made or assembled in the City of Chicago.

Local Business Preference Ordinance. February 2012, expanded local business preference to all City funded contracts over $100,000. 

Phased Graduation Ordinance. March 2012, allow firms that have exceeded the program’s size standards to continue to participate for a period of 3 years to gradually exit the program

M/WBE Mentorship Program.  November 2012, an established contractors willing to enter into a mentor/protégé relationship will be awarded  up to 5% additional utilization credit. 

Alternatively Powered Vehicle Ordinance.  February 2013, 1/2% bid incentive for companies located in 6 county region when 50% or more of the company's fleet is regularly located within the 6 county area and no less than 50% of these vehicles are alternative fuel vehicles

Project Area Resident Ordinance. March 2013, require contractors on contracts valued at $100,000 or more to utilize at least (7.5%) of all labor hours by residents in construction area