ALC-Review
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Senator Scott Flippo
Unverified
9:30
We've got a fairly lengthy agenda for December. All right. All right, Ms. Kathy, if
Speaker 8
9:59
you want to start us out here. yes Mr. Chairman the first item on today's agenda is item B Department of Transformation
Speaker 11
10:06
and Shared Services Office of State Procurement Procurement Rule Summary of Changes and the changes in relevant acts to the rules that they're providing today all
right I see representative Dotson thank you Mr. Chair on this B1 with these procurement rules this committee's considered and discussed procurement for the last couple of years and just to make sure that we have plenty of time to to look over these rules and get everything any questions answered and it's a
92 page agenda item on today's deal i'm going to move that the procurement rules submitted by osp on today's agenda be held in review subcommittee and placed on a january review meeting agenda just so everybody has a chance to look through them and ask any questions. And, of course, I mean, we could do that today as well. But as far as asking questions, just not move them forward.
Senator Scott Flippo
Unverified
11:05
All right. Committee members, you all have heard the motion.
Are there any questions? All right. So without objection, we are going to hold these over until
Speaker 11
11:19
next month's review committee meeting. Mr. Chairman, the next item on the agenda will be item C, which is the land purchase agreement disclosure. This is an approval item for this committee, and it begins on an item C, page one. You have several items here. I'll just briefly explain to you what they are. This is a letter, The first one from DHS to Amy Fetcher about DHS purchasing 40-acre tract of land in Lewisville.
It is the area where the Lewisville Juvenile Treatment Facility is housed. The buildings on the land are already owned and operated by DHS at this facility. The buildings and the land all are $350,000. The 40 acres of land only is valued at $105,000, and that's according to a recent appraisal. This letter is to clarify, originally when DHS submitted this information, they were
using the $350,000 amount instead of the $105,000 for just the land purchase. This agreement is with Farmers Bank and Trust. All proceeding justification that they've submitted should reflect that amount. We have a letter signed by Amy Fetcher. The next page, you have a letter signed with the new information by the governor. And then we have all of the information about the, and the disclosure that this is with Farmers Bank in Magnolia, which Senator Malik is a part of.
and so that information again this is an approval item on today's agenda for the committee for DHS to purchase this land that their youth facility currently resides on. All right representative Gene you are recognized sir. Thank you Mr. Chairman
Chair
Unverified
13:09
on this item I just want to disclose
Representative Lane Jean
Unverified
13:12
that I'm a stockholder of farmers banking trust so I'm going to recuse myself from any participation or vote on this. We will note that thank
Senator Scott Flippo
Unverified
13:21
you. All right members we're going to need a motion for approval here aren't we okay so
all right all right without objection this item will
Speaker 11
13:34
stand as approved mr. chair the next item on our agenda happen to be our mofs and they start in item d section page one is the letter from dfa office of accounting submitting the items on today's agenda then on page two you have the first item for north arkansas college this is for science building HVAC reconfiguration. When it was originally put in, it was kind of misdesigned, and so now they are reinstalling a second HVAC unit
in order to serve the laboratories with controlled moisture content and negative pressure and reconfiguring the existing system to service the classrooms and offices better. They're revising it to $770,000, and that's for the increased cost in construction and overall cost. They have student tuition and fees for 65% of the funding and proceeds from property sale for 35%. Next, you have some for UA Fayetteville. The first one, the Mullins Library Renovation, they're moving the physical collection of books
and instead creating a collaborative and an interdisciplinary learning space focused on student and faculty engagement and a collection. The physical collection is being moved to a remote storage facility. This is a revised amount of $25 million. They have 34% university reserves and 66% bond proceeds to pay for this. Number three, UA Fayetteville for the Wingate Art and Design District Buildings. The project will create classrooms.
This is revised at $55 million. They have university reserves to cover that. UA Fayetteville Central Lab Animal Facility proposes to expand the current animal housing located in the Engineer Research Center and into a state-of-the-art biomedical and small animal-based research facility. $1,814,143 is their initial estimated cost. They project it to be somewhere over $2.2 million, and they have university reserves for this project.
On page four is UA Fayetteville for the mechanical system replacement for the HVAC system for the Center for Health Professionals. $3,600,000. They estimate the total projected cost to be around $4 million. They have university reserves for this project. Finally, you have UA Fort Smith for a grant writing center project. This will result in a computer lab area, collaborative space for tutoring and classrooms, new flooring, lighting, et cetera, $375,800, and they note that they have a federal grant to fund that project.
Those are the methods of finance on today's
Speaker 32
16:30
agenda. All right, members, anybody have any questions on those? All right, seeing
Speaker 11
16:36
none, these items will stand as reviewed. Mr. Chairman, the next item, group of items, E, are our discretionary grants. And the first page, these grants come from the Department of Health. They have three on today's agenda. The first one is an amendment to an existing grant, 100% federally funded for Arkansas Partnership for Colorectal Cancer Screening Project. The second one there is an amendment, again, 100% federally funded to reduce HIV infections in Arkansas.
And the third one is to provide administration and direct client services for low-income HIV-positive persons. Again, an Amendment 5 to that grant. It also is 100% federally funded. On page 2 of this packet are grants for the Department of Human Services. The first one, with their Division of Aging and Behavioral Health, is an amendment to an existing contract for peers achieving collaborative treatment, or the PACT project. numbers two through nine are all going to be amendments and these are all federally funded
to grants to provide programs and services that improve the quality of life for adults with disabilities grant number 10 on page five of this packet this one is for save the children foundation this one is an original grant three hundred thousand dollars for high quality program services to local children situated in rural communities with high rates of poverty this one the funding source is other it's noted that that is being funded with rainy day funds number 11
is DHS with Arkansas flight this is to reduce recidivism rates of juvenile city code offenders by academic assistance and life skill training for youth in Little Rock it's federally funded those are the DHS grants on today's agenda and finally we have on page six of this packet you have grants from Arkansas Energy Environment Environmental Quality these are their e-waste competitive grants the agency annually solicits applications from entities in Arkansas for grant
funds to be utilized in the collection transportation or processing of end-of-life electronic waste. This is per Act 1410 of 2001 and Act 970 of 2005. Funding from the program is generated from a percentage of the sale of surplus electronics assets from the state of Arkansas. Each year, Environmental Quality sends out grant applications, and this year they received from five businesses and solid waste districts. Yearly funding is based on the funds
that they received from previous years and any unspent remaining grant award funds. The available cash amount they had this year was a little over $208,000 to disperse. On the recommendation of the reviewing committee, they're requesting to award $192,000 in two categories, collection, transportation, or processing, or local or statewide recycling and demanufacturing. Then on page 8 is where you see the actual grants that they're awarding, the name of the applicant, the project description, the in-kind contribution that the project is being provided by the local entity, and the amount awarded.
It comes to a total of $192,000, and those are the grants on today's agenda. All right, members,
Speaker 36
20:10
are there any questions, comments? All right, seeing none, these items will stand
Speaker 11
20:17
as reviewed. Mr. Chairman, the next group of contracts that we have, or the next items, are our contracts that we have on today's agenda. They begin in item F, and you want me to go ahead and do... We have some contracts on today's agenda that are located in several locations.
So if it's all right with the committee, we're going to go ahead and address those first. These are the net contracts for DHS, and these are the non-emergency transportation contracts for their services for DD clients for day treatment and young kids for day treatment services. And what I want to explain to you is that there are three special procurements that are on today's agenda that are replacing existing contracts.
Currently, DHS has three contracts that were done through a critical emergency in December or at the end of the year last year. Two of those contracts are on today's agenda and are being amended to add additional funds to those contracts before they expire at the end of this year. One of those contracts is not being done at all. It's not on the agenda. And then those three contracts are being replaced with new contracts that we have a special procurement for.
So we're going to start with the first one, which is in Section F on page 8, and it's item number 8. So it's at the bottom of the page there with Southeast Trans. This is one of the special procurements that I mentioned. This is new beginning January 1 of this next year. It is currently utilizing, as I said, a one-year emergency contract to continue the NET-like program pursuant to a settlement agreement negotiated by both parties.
Those contracts expire at the end of the year, and DHS needs a new one-year contract to maintain status quo during completion of a rate study that they're doing, and an invitation for bid process. Current contracts were procured by the critical emergency. They end December of 2019, and this special procurement was authorized to prevent disruption in the services. So we have that one on number 8 on page 8.
And then if you'll skip over to page 19, these are that one was an out of state contract because the provider is the mailing address is out of state we have two that are in state that's contracts number 14 and 15 that's with area agency on aging of southeast arkansas and central arkansas development so those are the three replacement contracts beginning january 1 then we have contracts that were done as critical
emergency at the end of last year. Those contracts are not reviewed. A critical emergency contract are done and are reported to this committee. However, so those are going to be found over in the reports. In section G, on pages two and three, we have those two contracts that they're operating under now until the end of the year that were done as critical emergency contracts.
However, that first one on page one of item G, page 14, they're needing to add $3,754,694 to that contract for the services that have been done this year. And on the second one, they are amending that contract to add $7.4 million
to that contract, which ends the end of this year. One other thing I want to point out to you, and I apologize, is the first contract on page 14 in item G also needs to be ratified because they have overspent what was originally reviewed or reported to this committee, excuse me, reported to this committee, and that was $547,000.
So that was reported to the committee. These contracts are paid through a system in DHS, the MMIS system. It doesn't go through ACES. ACES would have caught that it had not been reported to this committee prior to them going over that amount. That didn't happen, so they have sent over a letter asking for ratification of the amount that they have already paid on this contract. So on pages 12 and 14, 12 through 14 in your green packet, which is your packet of letters, you have the ratification request for this particular contract.
The first page on page 12 is from Mr. Armstrong. He received information from DHS on Friday. So his letter, he typically provides this committee pointing out any issues with a contract is basically being amended to say that he learned of this on Friday and that they spent $2.4 million more than what they had reported of the 547. And then you also have the letters from DHS going into detail about what they had done and why.
So that contract on page 14 needs to be both ratified for the additional amendment being reported and for the expenses that have already been paid. So I think that takes us through one part of net contracts. I do want to explain to the committee that we're also going to see other net contract amendments on today's agenda for the typical, normal, non-emergency transportation services that DHS provides.
But, Mr. Chairman, we wanted to go ahead and try to take care of
Speaker 42
26:52
those. And so, Mark, if you want to come up here, and I see Director Glepsey, if you would like to join him, we're happy to have you here today.
Senator Scott Flippo
Unverified
27:08
I've got a couple folks in the queue here and shall get
Speaker 43
27:13
seated. And then if you all go ahead and introduce yourselves for the record.
Speaker 47
27:21
Thank you Mr. Chairman, Mark White, Chief of Legislative and Intergovernmental Affairs for
Representative Denise Garner
Unverified
27:30
DHS. Cindy Gillespie, Secretary at DHS. Melissa
Speaker 50
27:34
Stone, Division Director for Developmental Disability Services. Okay, so just real briefly, let
Senator Scott Flippo
Unverified
27:41
me start off with this. So, just to make sure
members understand, so, and Director Gillespie, you can answer this, Mark, it doesn't matter. So, with the contract that's needing ratification is, as per my understanding,
was that y'all paid that out of your MMIS funds and did it not go through ACES.
However, these were transportation services that were provided to these day treatment facilities, and so the vendor was giving these rides. But there's the glitch in how you – so I might be leaving out some stuff
Speaker 54
28:11
here. So I just want to make sure for the committee's purposes that we're fully understanding
Speaker 47
28:17
of why we're needing ratification here. Yes, Mr. Chairman. I'll give just briefly, and then the Secretary may want to add some additional facts after that. Yes, these are essentially Medicaid claims, and that's why they're paid through the MMI system. not through ACES and what we discovered was that even those payments were being made through MMIS
we did not have internal controls in place to catch when we exceeded that contract value and so I do want to be very clear that there are not any over payments in terms of a vendor receiving more than they should have these are claims that from every indication we have were filed in good faith by the vendor for services that they actually provided it's simply that we should have come back to amend the contract to increase the contract value and we didn't do that and i because and you know the reason i start off with this is because
Senator Scott Flippo
Unverified
29:03
that was my initial you know thought when i heard about this and this came to my attention is that you know when you say
Speaker 54
29:09
over overpaid was we were paying you know a vendor for services they did not provide so that was not the case and i want to make sure that
Speaker 17
29:18
was clear for this committee all right so seeing that we're We're going to start off with Representative Wardlaw. I just wanted to, I didn't
Representative Jeff Wardlaw
Unverified
29:25
see this in the agenda and didn't have time to prepare a letter like I have in the past, but I'll be holding out on this vote for membership of the board of the area agency. Just letting you know, Mr. Chair. Okay. Thank you, Representative Wardlaw.
Senator Scott Flippo
Unverified
29:41
All right. Now we've got to go to Representative Dotson. Representative, you are recognized for a
question. Thank you, Mr. Chair. i guess i guess the the question comes down to is i mean i get if it was just a a little bit but i forget what the exact amount is over two million dollars though two and a half two and a half million dollars you must have a lot of excess funds in your account if you can have a half million dollar accounting error no
Speaker 61
30:11
we don't have a lot of excess money in the
account this is as he said a situation where we had a hybrid operation going on these contracts are hybrid it's the way we're referring to them internally is is hybrid contracts normally Medicaid is a claim payment made by a provider provider sends in the claim and it goes into the MMIS system and the system pays it there are as y'all know on Medicaid then no no limits we trend we
try we keep up but because it is the way Medicaid is structured as an entitlement we do not have a limit on those payments so it is a the MMIS is set up to receive claims pay claims and we keep up with them and we check for fraud and we do a lot of activity around it but there is no cap no contractual cap on what you pay in Medicaid then we have this type of a contract where we have
actually contracted for a Medicaid service so there is the legislative authority that sits there but the payment is made through MMIS and so in this case because it was this hybrid we this is what we should have we should have caught this we should have had controls in place for this hybrid okay so I do not want to in any way leave the impression that we did what we should
have done because there was legislative authority that should have been we should not have exceeded as we were going through this we did not have in place something that recognized the difference in this type of a contract and kept up with whether or not those Medicaid payments going out were actually exceeding the legislative authority so that's where this one that's where we had the mistake in this one as soon as we found out we stopped payments to around this
and we have gone back and our have put in place procedures to actually look at the legislative authority at several levels before a payment is made now around one of these and immediately moved to bring this forward for ratification and we have several internal controls we're putting in place to ensure that for this type of a contract this doesn't happen in the future as well as looking at some system changes that would allow us with MMIS to be able in this unique hybrid situation to be flagged when the legislative
authority has been reached so it's due to the that nature of this contract so
are you putting those controls in place across your entire department
Speaker 61
33:15
the The controls are only needed around these hybrid contracts because the controls exist, as she said, around ASIS. So with other contracts, they're through ASIS. And so ASIS stops the payment when you hit legislative authority. You cannot make them. It's this group of hybrid contracts. And so we have this one that we are seeking ratification today.
and also as she mentioned we're seeking amendments to the other DTT day treatment transportation contracts to get us through the rest of this year so they remain within legislative authority and we have a handful of others that are in this hybrid structure and we are doing an audit of those we put some temporary controls in place we're doing an audit of those and we have in fact asked the Inspector General to have her Office of Internal Audit come in as a
third set of eyes to actually review those controls and make sure that what we're putting in place works for those hybrid contracts. So
are these going forward you don't expect to have this type of a situation ever happen again?
Speaker 61
34:30
I want to caveat that with we are conducting an audit of the others right now all right so I don't want to tell you I don't want to presuppose what that will find but yes I mean our goal is to have controls in place both manually and
then in the system so that we do not have a recurrence of this in the future and like as
Representative Denise Garner
Unverified
34:53
I said we're looking at it and we'll also take whatever so It sounds to me,
Senator Scott Flippo
Unverified
34:58
and you can correct me if I'm wrong on this, that y'all are working, currently working on putting some measures into place to prevent, you know, this from happening, but you're not all the way there. Is that a correct interpretation? We
Speaker 61
35:15
have put measures in place that keep it from happening right now, but they're manual.
So we hope to also be able to get in the system as well. and not just
Speaker 26
35:30
be relying on people when you when you when you do that if you would send you know send those
Senator Scott Flippo
Unverified
35:35
those steps that you've taken to staff so we can get that out to committee members
yes sir be happy to and to make sure that obviously it'll be noticeable to us if something comes up for ratification that there was a reason you know there's a reason I understand things like this is
going to happen so you know as you all develop these steps and these these these procedures um that are going to be more software related if you can take those and get those back to staff including the the personnel steps you've taken as well would be appreciated and then staff can get that out to members so make sure that we're all aware of the changes that have taken place to make sure that we're safeguarding against things like this happening moving forward are you good representative dodson or do you have
Speaker 73
36:24
another I got a few more questions just a final question if I may you're recognized for a final question
I'm assuming this two and a half million dollars is in your budget or where is the money coming
Chair
Unverified
36:44
from to pay for it yes sir it's in the budget okay
Senator Terry Rice
Unverified
36:49
thank you all right Senator Rice you were recognized for a question
sir thank you mr. chair i've complimented staff previously multiple times on how clear she
makes things but the volume of what i just heard is is not clear to me is everything
Speaker 47
37:11
we're talking about net contracts everything this is this is the net like contracts that we put in place at the end of last year to provide transportation specifically for clients who are in early intervention day treatment and adult development day treatment
Senator Terry Rice
Unverified
37:26
are these contracts bid on these
Speaker 47
37:29
were not bid on at the time there was a court case that was involved and in response to that court ruling we had to move very quickly to make other arrangements we talked about what we did in there last december
Senator Terry Rice
Unverified
37:45
yes sir okay if you had you waived bidding at the end previously they were bid on correct i'm not exactly
Speaker 82
37:54
sure what you mean we what we decided to do is that
Speaker 47
37:58
we we went with the net brokers and of course now that had been competitively bid for those net brokers there was
a procurement process last year and so those brokers were chosen through that procurement process and so essentially we we piggyback that with this which is very similar service but for these
Senator Terry Rice
Unverified
38:17
folks let me interrupt you here's my question
if if we're waiving the bid process but on contracts we do bid and we award those
at times and we come back and subsidize is the term I used a year ago. What have we done? And that's, to me, is that not what we're doing today? We're subsidizing what we missed previously? I don't
Speaker 47
38:59
know if I would say subsidizing. I mean, the intent at the beginning of the year was to provide these services through this vehicle for this year
until we are able to develop a more comprehensive solution. Were
Speaker 91
39:13
the services procured at a per-service rate open-ended? Can you
Senator Terry Rice
Unverified
39:17
clarify for me? Here's my deal. I said it a year ago. rant and rave a little bit about I want a fair process I want people that come into this state or that are in this state to know that state government's
going to give them a fair shot they get it fine they don't fine tell me how the amount of money extra money we're talking about here is fair in the process can you explain that to me if not any and if not we may just need to get together between now and the rest of the
week. I'm down here the rest of the week and it may take all
Speaker 92
40:11
week from what is muddled up right now. Sandra Rice, Melissa Stone. So historically this
Speaker 50
40:15
population has been housed within the net contract and as you probably remember we ran some policy to pull them out of the net contract at the end of last year and then I was sued over it and we entered into a settlement agreement. So these contracts are with the three net brokers in the exact same regions because we thought it would avoid a lot of confusion so you don't have
to call a different net provider for your doctor's visit or your insulin than you would to go to your day treatment center. So you still call Southeast Trans or AAA or CADC depending on your area. So you're always utilizing the same vendor. So it's with those three providers. The way the contracts are set up is on a per person and then an additional mileage rate. We committed to doing a full-blown rate study with Milliman, our contracted actuary. We've been working on that
this past year we have um we're very close to having draft rates and when we do get those rates we'll be bringing in the providers and we'll be putting out a competitive bid process when so yeah this year so i'm asking for for 2020 so i'm that's why i'm asking for one more year i'm very hopeful that we can do that it will not take us a year but um we are asking for one year on these contracts
Senator Terry Rice
Unverified
41:48
what you're what i'm confused about is when you tell me there was not competitive
bidding my understanding there was originally competitive bidding i'm not saying what you did in the end am i
Speaker 50
42:05
wrong there was competitive bidding on the net contracts and the three um i guess winners are the same people i'm using we
Senator Terry Rice
Unverified
42:11
need to get together because you're mushing all together and and there was competitive bidding at one time okay I need some
Speaker 96
42:23
understanding on that mr. chair so you know
Senator Terry Rice
Unverified
42:27
we can either do it here or probably it's gonna be best if
Speaker 104
42:49
if I dedicate some time and we get together on this before Friday hang on One second,
Speaker 54
43:00
breakdown for, you know, per rider and then mileage?
Do you have that breakdown on what that
Speaker 50
43:10
is? Maybe he's giving the ballpark. center I want to pull that number for you but my recollection is it's seven dollars per person and then there's a ride okay and then there's a mileage fee that I believe is a dollar fifty per mile but I would I would like to check those
Speaker 42
43:26
numbers okay why is it a dollar that's pretty I mean I know we're
Senator Scott Flippo
Unverified
43:32
they might be transporting somebody in a wheelchair or special needs but a dollar
$1.50 so that $7 doesn't matter if you're going two miles or 28 miles round trip that $7 is set correct okay so it's that
$1.50 is that in comparison is that like kind of like an average of what the
Speaker 109
43:52
states that we're touching are doing and other states are doing with their net contracts and transportation
Speaker 61
43:58
if we could clarify just to make sure we all know where we what we're talking what she is discussing are not the net contracts okay I'm sorry all right these
are the day tree yeah the day tree that was net we actually do on a capitated my bad I should yeah but we are using the net brokers because of the court action last understand so for these day treatment writer for this temporary okay for day treatment which as she said we do pay on a mileage basis this types of services are not necessarily offered in other states so there aren't a lot
Chair
Unverified
44:39
of comparisons okay okay thank you senator rice your procedure there you got it
Senator Terry Rice
Unverified
44:50
I would say you go ahead with your questions I have a before okay we
Representative Lane Jean
Unverified
44:55
got a couple more questions in
Senator Scott Flippo
Unverified
44:58
here all right Representative Jean, you were recognized for a question
Representative Lane Jean
Unverified
45:02
sir. Thank you Mr. Chairman. I'm assuming, I didn't see it anywhere, this is Medicaid, is this the traditional 70-30 so the state's on for 30% of it? Yes
Speaker 118
45:13
sir. Fed 70%? Yes sir. Okay, thank you.
Chair
Unverified
45:29
get an answer, Representative Gene, I'm sorry. Okay, okay, great. I apologize for that awkward delay. All right, Senator Ballinger, you
Senator Bob Ballinger
Unverified
45:40
were recognized for a question, sir. Senator Stubblefield, my apologies. Is your microphone
Speaker 119
45:50
Hang on Hold on one second I don't know if
Senator Gary Stubblefield
Unverified
46:02
your microphone is Got to hit that green button sir Thank you Secretary Gillespie There's been a number of incidents that's happened in the last few years I know I sat in on one with Legislative Council or where DHS has either misplaced
or lost millions of dollars. Do you have a group of people at DHS whose sole responsibility is to make sure that these internal,
and by the way, those incidents were all blamed on internal controls, the lack of internal controls. Do you have a group of people within DHS that sole responsibility is to make sure that these internal controls are
Speaker 61
46:45
in place and that they're working properly? We did last year launch an office of internal controls because we did not have one. So we have put that office in place, and that office is working to, at this stage,
is working to address any issues and findings that come out. They work daily with legislative audit, as well as with any audits that are performed by any of our federal partners that come in or anywhere else. So they're working their way through all of those, making sure we have the proper controls in place. We've also brought in contract help to review our activities, and we have that underway with the idea of continuing to strengthen those controls. so it is for us a work in progress to go through this agency and get all of those
Speaker 127
47:37
controls in place and monitored discounting discounting the contract workers how many how
Senator Gary Stubblefield
Unverified
47:43
many employees at DHS work just on this one project of making sure these internal controls are working I will have to get
Speaker 61
47:55
you that number. I wouldn't want to guess, sir. Thank you,
Chair
Unverified
48:04
Mr. Chairman. All right, thank you. All right, members. Is there any more questions?
Senator Rice? All right, Senator, you are recognized. Thank you, and
Senator Terry Rice
Unverified
48:16
Mr. Chair, I I would just ask that we hold all of these net
contracts until Friday when full council meets. In the meantime, I would ask that DHS get with me and if any other legislators would like some clarity on this and the way the spending is, I would welcome that.
Chair
Unverified
48:45
Okay. All right, members. y'all have heard the motion any comments alright without objection we're going to hold this
Senator Scott Flippo
Unverified
48:50
off until Friday Mark Director Glepsey if y'all can get with Senator Rice and hopefully you know this might be a better conversation because there's going to be a lot of details and specifics here so if you can get with him between now and then you know walk through these things
Speaker 54
49:05
hopefully we'll be in a position to move forward on Friday certainly we will do so alright thank y'all very much thank you
Speaker 8
49:17
Mr. Chairman, we're ready to begin item F, page one. On the first
Speaker 11
49:26
page there is the letter from Office of State Procurement Director Armstrong, and in this he notes that there are three contracts that they submitted for review today that do not appear to have been properly solicited or being presented to ALC for review. The first one, and two of these are for Department of Community Corrections
or seeking ratification on contracts, and we'll deal with those when we get to those. The third one is one that was being sent over from the Arkansas Department of Environmental Quality. This particular contract was done as an emergency, and what was submitted was not complete. we've been talking with them about this and that one is being pulled documents were incomplete and when they are completed it will be presented on our next agenda so we just will be dealing with two of contracts that mr. Armstrong
has pointed out now and the others as he noted appear to be lawfully procured contracts so beginning with the construction related on page two of the packet the first one is for environmental quality department this is a contract that they have with environmental works to present provide design professional services related to underground storage tanks and petroleum tank storage tanks second one is the department of parks and tourism this is a new contract for design services for the production of plans for the new visitor center to
to be located at Pinnacle Mountain State Park. Then you have UA Fayetteville. This is an original contract for replacement of HVAC system in the Health Professions building. Number four, UA Fayetteville. This is an amendment to the architect contract for completion of Kimple Hall renovation. Number five on the next page, UA Fayetteville. This is an amendment for adjusting their architects fee
for the Wingate Arts and Design Center. And then number six is to adjust the architects fee on the Mullins Library renovation projects. We looked at those same projects as being revised MOFs on today's agenda. Number seven is with Wittenberg for UA Fayetteville and this is for completion of B-Wing renovation and other improvements for Pomfret Hall. And then on page four, you have UAMS. This is an amendment to an existing
architectural services contract for new interior occupational therapy space. Number nine, University of Central Arkansas. This is a design services amendment for their Carmichael and State Halls. So those are the construction related contracts on today's agenda. All right, members, are there any questions, comments? All
Speaker 33
52:20
right, seeing none of these up. Representative Jean in the nick of time. You are recognized, sir. Just a question
Representative Lane Jean
Unverified
52:28
on the ones on two, the parks and tourism.
It says. Is that page two? Yes, page two. And I may have missed this. It just says funding other 100%. What's the funding there?
Speaker 11
52:45
For some reason, our computer has stopped. It deletes part of it. It's Amendment 75. for Parks and Tourism, where they get part of their funding. Thank
Senator Scott Flippo
Unverified
52:59
you. All right, members, not seeing any further questions or comments,
Speaker 11
53:02
these items will stand as reviewed. Mr. Chairman, our next group of contracts are intergovernmental. These are contracts between agencies that are procured using intergovernmental procurement method. On page five, we start with the correction department. This is original contract for prison housing agreement between Department of Corrections and Drew and Bradley counties for a little over $8 million. You'll note that's $8 million a year. The total projected, a little over $163 million.
This particular project has been given statutory authority to contract this project to last 20 years, so that amount over the next 20 years. Number two, DHS Independence County. This is for the Arkansas Juvenile Detention Facility in Independence County for a program and coordination of that. Then you have UALR with ASU Jonesboro. You also have numbers three through six are all going to be UALR with ASU, with Arkansas Tech, Henderson, and SAU,
and these are all going to be for entrepreneurial and small business services to those different areas. Workforce services with UA Fayetteville for evaluation, sample workforce, innovation, and Opportunity Act Title I or Title III participants for their three local workforce development areas. Those are the intergovernmental contracts on today's agenda. All right, members, you all
Speaker 33
54:39
Are there any questions or comments? Seeing none, these items will stand as reviewed.
Speaker 8
54:46
Mr. Chairman, the next group are out-of-state contracts, beginning on
Speaker 11
54:50
page 7. The first one is community correction with prisoner transport services. This is one of the contracts that Mr. Armstrong pointed out in his letter. So in your green packet of letters, page 1, this contract is asking for ratification. This request is for out-of-state prisoner transport services. In April, prisoner transport services contract expired.
Bid and production procurement was delayed. A new contract with a new vendor will begin January 1, 2020. During the interim period, Arkansas Department of Corrections continued receiving services without an approved contract, community correction. So they are wanting to ratify this contract in relation to that letter. Number two, this will be the replacement contract to begin January 1, 2020 for this service.
It is with a new vendor, but it is for inmate transport services. Number three, DFA Building Authority. This is for security guard services, and this is an amendment just to add additional funding to this contract for the increase in minimum wage. Number four, Building Authority for security guard services for six of their locations. number five building authority for janitorial services at the fort smith facility number six
is the department of education for administering assessment testing to students in k-2 number seven is education department this one is a sole source contract on pages two and through four in your green packet are the justification letters for this contract. This is sole source justification granted for two years by OSP for $61,500 each year. So what we're looking at is for a two-year
contract. The amount each for the vouchers to be distributed to participants in the Arkansas Professional Pathway to Educator Licensure Program in lieu of those individuals making personal payments only company who provides this service that was the justification for that sole source number eight is southeast trans of this one is the special procurement that we took care of senator rice is holding number nine this contract is being pulled and will be on the agenda in
January. DHS is pulling that contract. Number 10, DHS with 3M. This is to continue online fingerprint elements for criminal background checks for foster parents, adoptive parents, and volunteers. Number 11 is for a comprehensive dental managed care program for Arkansas Medicaid dental benefits. Number 12, this is a contract with Southeast Trans. This is an amendment to
an existing contract for NET services. This is not one of the ones that we talked about previously with DHS for their net light, for the DD services, and for those services. So this one is for the regular non-emergency transportation. Number 13, Rite of Passage. This is an amendment for operation and management of the Arkansas Juvenile Assessment and Treatment Center. Number
14, Youth Opportunity Investments. This is for online, on-site, excuse me, medical services for the Division of Youth Services for their residential treatment facilities. Number 15, Information Systems. This was with Computer Aid. This is for identity management and single sign-on access management. Those are computer services provided by Computer Aid. UA Fayetteville. This is a new contract for cybersecurity assessment with a report to be
issued on the cybersecurity framework. UA Fayetteville for investment advisory services. that's an amendment on that contract. Number 18, an amendment to an existing contract for Quest to perform testing of vitamin D for a study they're doing. UAPB, an original contract for ticketing system and access control solutions to help generate revenue, increase online sales and fan student engagement, improve operation efficiency and data. UCA on page 13 has a couple
of contracts. The first one is for an instructor for the programming language for the Arkansas Coding Academy, and then they also have one for library management system. Veterans Affairs has a contract, an original contract there for $800,000. This one is done as a special procurement. There's a letter on pages 9 and 10 in your green packet that explains that they're requesting a special procurement to provide LPNs to the North Little Rock Veterans Home.
Currently, they report that it is understaffed by nine LPNs, and the current contracts that they have in place have not been successful in finding local LPNs to fill those hours. This is a national medical services group that has agreed to provide travel LPNs. OSP has recommended a one-year contract authorized by them number 23 workforce services another contract with computer aid for augmentated staff
positions for their IT team lead and those are the out-of-state contracts on today's agenda all right Senator
Speaker 79
1:01:01
Rice you recognized for a question tell me is number 12 you're
Senator Terry Rice
Unverified
1:01:06
saying is not included in what we held through to Friday no sir I
would request number unless they don't come up and talk about that now we can do that or request it be held with the
other ones and we'll discuss that and my reason for that is is if this is an increase
I want to know some previous figures and what we're increasing so if they want to be thinking about that we can discuss that too whatever you want to do Mr. Chair. Okay so Mark we can either address this
Senator Scott Flippo
Unverified
1:01:45
now or if you want to hit this offline when we meet. Okay is that preferable? Okay then you're fine So what was that number again, Kathy?
12. Number 12. So we're just going to go ahead and hold that with the others. Mark, you'll come up. So we're just going to
Speaker 54
1:02:05
go ahead and hold that, Senator Rice, with the others, and then we will meet offline after we finish up here.
Speaker 11
1:02:20
All right. Senator Rice, while we're on it, you want me to mention to you that there are two more additional net contracts in state that we haven't gone over that are the same as this, providing amendments.
That's number 16 and number 18. Yes, I had
Senator Terry Rice
Unverified
1:02:35
seen those, and I mentioned it, Chair. My request is, again, this is just a Friday, that we just wouldn't hold those, and we have discussions. I've had other
legislators want to sit in so that I can give all those chances. So we will hold 16 and
Speaker 149
1:03:00
18 as, yeah, we're just going to hold them all. all right thank you
Senator Scott Flippo
Unverified
1:03:08
senator all right members are there any other questions
comments see none with the exceptions of item
number 12 and the upcoming number 16 and 18 these
Speaker 11
1:03:19
items will stand as reviewed Thank you, Mr. Chairman. We've made it to our in-state contracts on page 14 in our agenda. The first one is community correction. This is for transitional housing, comprehensive community-based treatment services. Number two is community correction with wings to recover. This is also a contract that Mr. Armstrong pointed out on his letter that needed to be ratified by this committee. The letter that goes along with it is on page 11.
This is for community correction for $103,275. In May, a procurement was issued on an aceless outlying agreement for residential reentry housing, and the contract was not sent to OSP or reported to ALC. It was an oversight discovered during transformation, so they are needing to report this. The one thing I talked with them about and I want to point out to the committee today
is in entering this into the portal, they entered the wrong amount. The original amount, the original contract was $50,000, which would be under the threshold for review by this committee, but it should have been reported to this committee. That was one of the problems, and then they're adding the amount that will, $222,000, which will cover the amount that they've already paid to date, which is $103,275, which is what we're ratifying, this payment and this contract that didn't get reported properly.
So I want to bring your attention to that. Number three is DFA Building Authority. This is for wage increase, for minimum wage, just that increase beginning January 1 for janitorial services for the justice building number four is the same type of thing for dfna building authority for janitorial services for the multi-agency complex here in little rock number five is janitorial services for capital on east capital again we're just talking about
the wage increase beginning January 1 minimum wage. They also have contract number six for janitorial services. Number seven is for the wage increase for janitorial services for the crime lab and natural resources complex. And number eight minimum wage increase for their cleaning services. um number nine is for the education department uh this is a increase in minimum wage
affect january 1 janitorial services number 10 education school for the blind they are asking for an increase in their amendment to contract for security guard services to cover minimum wage increase. Number 11, education school for the deaf. This is for their increase for security guard services contracts. Number 12, environmental quality department for their cleaning services for their headquarters. Again, we're still talking about the increase in minimum
wage to cover those. Number 13 is DHS on page 19 in your packet. This is for pharmacy services for the division of youth services clients number 14 and 15 were part of our net contracts that we've held number 16 and number 18 will also be number 17 on page 20 is for DHS for service center
beneficiary relationship a relations contract with Arkansas Foundation for Medical Care Number 19 is with Delta Dental. This is for comprehensive dental managed care program. Number 20 is information systems with Windstream for continued transition from Centrex to a replacement service. Number 21 is insurance department for workers' compensation managed care.
Number 22, natural resources. resources. This is to project to develop and support risk map. Public Defender Commission has a couple for amendments for indigent parent council services. Number 25, UA Fayetteville pest control
Speaker 136
1:08:04
services. Number 26 is for UAPB for their solid
Speaker 11
1:08:09
waste disposal services. Number 27 is workforce services for their janitorial services and that completes the in-state contracts on
Chair
Unverified
1:08:19
today's agenda all right members you've
Speaker 33
1:08:23
heard an explanation of these contracts are there any questions or
Speaker 11
1:08:35
these items will stand as reviewed mr chairman the next thing that we have on our agenda is reports the first group of reports beginning G1 are what we would consider our previously reviewed services contracts that are being renewed with no material change. So that's G1. G2, beginning on page 14, are the critical
emergency procurements that are being reported to us by OSP. We've dealt with the first two, numbers three and four are actually amendments that are adding time only I believe and these were for the nursing homes facilities that were taken into receivership then the third group of reports have to do with executed contracts between the
threshold range of 25,000 to 50,000. There were no emergency purchases reported, but you also have DHS's non-emergency transportation contracts report. That is your G5 and G6 is the report from DHS on the Optum contract, the DHS assessments. And I believe that's all the items on today's agenda all right the
Chair
Unverified
1:10:03
comments all right so
these don't even get reviewed these are just reported right Kathy yeah okay all right all
Senator Scott Flippo
Unverified
1:10:14
right see no further items items on the agenda we are adjourned want to list everybody a Merry Christmas and a very healthy and happy prosperous new year You
Agenda
A. Call to Order - Comments from Chairs
B. Department of Transportation and Shared Services, Office of State Procurement
C. Land Purchase Agreement Disclosure - Approval
D. Methods of Finance
E. Discretionary Grants
F. Services Contracts for Legislative Review
G. Reports and Communications
H. Contract Amendment - Renewals/Extensions with No Material Change - Member Requested for Discussion **
I. Other Business
J. Adjournment
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — ALC - REVIEW, Dec 17, 2019 | Agenda | 2 | Official source ↗ |
| B Dept of Tranportation and Shared Services | Exhibit | 92 | Official source ↗ |
| C Land Purchase Agreement Disclosure | Exhibit | 15 needs OCR | Official source ↗ |
| D MOFs | Exhibit | 4 | Official source ↗ |
| E Grants | Exhibit | 8 | Official source ↗ |
| F Contracts | Exhibit | 22 | Official source ↗ |
| G Reports and Communications | Exhibit | 20 | Official source ↗ |
| G5 · Reports and Communications › DHS Non-Emergency Transportation (NET) Contracts | Exhibit | 14 | Official source ↗ |
| G6 · Reports and Communications › DHS Assessments - Optum Contract Update | Exhibit | 6 | Official source ↗ |
Speakers
Senator Scott Flippo
Unverified
Speaker 8
Speaker 11
Representative Andy Davis Chair
Unverified
Chair
Unverified
Representative Lane Jean
Unverified
Speaker 32
Speaker 36
Speaker 42
Speaker 43
Speaker 47
Representative Denise Garner
Unverified
Speaker 50
Speaker 54
Speaker 17
Representative Jeff Wardlaw
Unverified
Speaker 61
Speaker 26
Speaker 73
Senator Terry Rice
Unverified
Speaker 82
Speaker 91
Speaker 92
Speaker 96
Speaker 104
Speaker 5
Speaker 109
Speaker 118
Speaker 119
Senator Bob Ballinger
Unverified
Senator Gary Stubblefield
Unverified
Speaker 127
Speaker 33
Speaker 79
Speaker 149
Speaker 136