ALC-Review

Alright members of the realistic receiver and go ahead and get this meeting started. I think my co chair just stepped away for a second so will forego the you know any comments you might have capp if you want to get us started please ma'am. Well I guess we got the dispatcher and Jimmy answers all in addition both introduce yourselves for the committee. My name's Ryan push the push your buttons green but yeah there's a button right there Mr Lee. By Natalie C. E. O. periscope holdings thank you Amy fetch your secretary of transformation shared services great and walking the review subcommittee members so mistrial in this that you're going to go over contracts at the spare school passes is not for review or approval this is just more for the benefit of numbers to make sure vice brought to speed on what's going on here and so with that dispatcher maternity overview thank you Mr chairman I appreciate the opportunity to be here and to tell the committee about our new E. procurement system that we are calling are by a R. B. Y. so we are we have just started with the S. and we had a press release last week we had some interest and senator Bledsoe asked me if I would do a presentation so um we're happy to. So when I became the chief transfer a patient officer in twenty seventeen I talked to some of my peers around the nation and one of the things that I was told was one of the quickest wins in transformation efforts is a electronic procurement system and going digital eight and having an a larger by and being at being able to save the state money right off the bat so we started working on with it at the time the department of state or the office of state procurement was within DFA and so twenty eighteen they issued a competitive RFP. Four at a procurement system and when the bids came back they were in the thirty five to seventy five million dollar range so we never awarded the bid because we didn't want to have to spend that type of money on the system to save money. We also worked during that time and through my research we had found a different model that periscope has and Brian's going to tell you more about that in his presentation they have a system that is a self pay model. And so they come into the state and put together the system integrate it with a sense put together the catalogs work with our vendors train the staff on how to use it at no cost to the state. There is a one percent convenience fees that the vendors will pay going forward which is very similar to what D. F. and A is doing with their tag renewals or if you pay your property tax online you pay a convenience fee with that as well. So not only is the system free to the state but the one percent that is collected we'll come revenue generating because twenty percent of that will come back to the state so to us it was a no brainer with going from seventy five or thirty five million two zero for the state and we entered into a contract it is a cooperative by agreement three the state of Texas it's the D. I. R. A. green mint which focuses on technology software and hardware and periscope is part of the cooperative so we entered into it I was told at first that there was no need for a contract because this is the real cost to the state however we wanted to go ahead and go through that process so everything was in writing and transparent so the system just went live in the last couple weeks and our vendors registering right now it's not live to use and to buy on and purchase but vendors are getting registered in that and our aim is to go live in August for being able to for the department's around the state to purchase money purchase products so I will turn it over to Brian and he can give you more specifics on the periscope model and what we're doing in the state. Thank you first I would appreciate you having me here today I always love talking about procurement transformation and and save and seven dollars so I appreciate your time and have a me here I'll just run over some cool. So there you go the they're not here. Only for the. So just really quick I want to commend the staff for the state we've launched the first phase of this and less than sixty days and a time period it's really rough to launch technology projects I really want to commend the state and in its team of the hard work they've already put into this project so the program is an E. procurement system but it done just service the state agencies that services cities counties university's K. through twelve there actually offered the system for free of charge. It's fully automated workflows and it expands the uses state contracts across the entire state our solution is called by speed it's implemented a thousand agencies in eight states across the US so we have a lot of experience in in states in implementing states the funny model is zero cost the state budget zero because the general revenue it's a one percent convenience speed of vendors that is optional the vendor can choose not to participate on that and the only thing that would happen is they're not in the market place but they're still fully shop will you can still use our state contracts so it is an optional fee. Four point one million of the revenue estimate is going back to the state so it is a revenue generator. Really quickly I know a lot of people think that Hey that fees just gonna be tacked on to the price will we have done eight states and all of you some fee in some form or fashion and as you look up here you can see there's reduction and cycle times contract purchasing but if you really look it spent on expenditures we see a thirty percent reduction on expenditures when you when we've lost with our state in a lot of different services in commodity classes so there is a massive savings because what you're getting is more by and as vendors get more by you get more reduction so it is it is been you know a huge savings for our state's and then vendor participation goes up so the more vendors you get participating the better contract you can get. So just what is our vice. It's procurement it's for like I said the state the locals the cities counties K. through twelve special districts I all have access to this universities they all have access to the system we train them on the system we roll out to the locals which is free which is really great for locals and it also get you more spending get you more visibility and what you're spending on your contracts. It has you know all the requisition to sourcing to contracts to payments so it's the full life cycle and it's not just state contracts you're using the system for it's all your purchasing and there's no fee on the rest of the person see so if you think about health services doing health services contract that's not a statewide contract there's no feet but they manage that through the system. Vendors vendors now get to get rid get their purchase orders they get their bids on line they responded bids they get their contracts they can see where they're payments are they get it all online so for a vendor this portals great and they understand the one percent fee because over thirty three states you some kind of fee but because it's all online it's all reported online they get their sells records they really get a lot of value in because we market those contracts we bring a marketing team we market the system we market the contracts. Lot of times for the vendors the cost to sell goes down fifteen percent and really automating a vendor help Senate ten percent so there they see a big say easy it's also automated to the asus system I mean it's integrated asus system so will be fully integrated to the state financial system. Just really quick I've touched on this. Again it is free of charge to all the locals this is a big deal for them it really given them a system. So here's some quick benefits to the buyers in the suppliers. In its key for the suppliers mean the buyers you can tell the buyers get more vendor participation they get automation they can see we're all their stuff it is they can see all the spent but the suppliers actually so the state of Arkansas supplier because they're part of our network they also get access to. It's across the country so they get extra opportunities they also get the house they're their their contracts international market place so you know you could have a vendor in Arkansas that could be selling to to an agency in Massachusetts so it's huge opportunity across the network for those suppliers. So just a little bit about us I won't bore you with the slide this is all the stuff we supply you know there's one little. Circle up there that we had talked much about it seal limits contract lifecycle management in it's really managing contracts in their life cycle and that's it been a huge problem all across the country and that is going to be a tremendous benefits so think about a services contract now that you can watch that contract you can manage that contract you can manage you know the vendor's responsibility to you know basically executing on the contract. So little bit about us we've been around since two thousand one I'm one the original founders were in eight states were in a thousand different local entities and we service over five hundred thousand suppliers across country. Here's a relevant state this is actually my state a Massachusetts some of their numbers they've allowed me to share some of their numbers today You know they've had over one billion orders placed another key number is that five hundred and fifty seven million. Orders by locals yearly to the locals are really utilizing these contracts in another number I really like to see up there is the five hundred eighty percent up tick in veteran owned businesses so when I went live with this they had a real focus on helping veteran veterinarian businesses get. Purchases from the state and they had it that that kind of up tick is huge so it really helps the small businesses play and it helps those better businesses play you know just another number that I like is the increase in statewide contracts up fifteen percent and then there housing over twenty five hundred different contracts so. That is big because you can see those contracts you can get access to those contracts. Then cost on returned in return of investment self funded. True public private partnership we are successful unless the state successful it's not like you're gonna pay as a big sass sass the big software fee and a big services fee and we cannot do that work in the outcome is may be good we are tied together at the up and we got to both be successful together it reduce rested the state we're gonna do the heavy lifting and then if you look below that. A lot of the people a lot of the states that are doing this have to hire people to execute on the contractor execute on these value added services. Then your support continuous us out agency training marking a statewide contracts strategic sourcing and contract rationalization and the convenience fee collecting and the training of those locals we actually bring the team here to do that we live here we do it we are continuously here performing that program. So again projected revenue. Four point one million to the state To five year you know revenues about twenty point six that's an estimate based on other states that we worked with that that size what we think the spend is going to be. So the value added services I talked a little bit about I I just want to bring attention of that it would typically cost the state about fourteen point eight million for those value added services you know then it it details those costs to mean one thing that that that's a big cost is the marketing costs to rolling out the agencies and locals that's nine point two million from a staffing structure the other thing is you get upgrades for free so a lot of times you'll have. The system upgrade is presented to the legislature they say oh will it's free what we have services to roll it out so if you do if other a procurement systems on the market if it's not self funded thank you because you two and a half million for an upgrade that's delivered for free. So those are just some some numbers a little bit about the project again I'm here answer any questions I and I really just appreciate your time and and and so enjoyed working with the state. All right thank you Mr rightly we do have a couple questions for you on. Skews me I'm sorry dispatcher I was just going to close by saying entering into this that contract with periscope for an E. procurement system is truly transformational for the operations of state government it also is making contracts more transparent in that contract management system even the ones that are not getting the one percent user Faye it's also making process that right now is paper it's in making it all digital so it's going to increase the process time as well or decrease session say the process time and it's it's a huge selling point to us is that it's available to cities and counties to school districts and two universities if they so choose to use it because I think in some of our minds more rural areas of the state that may not have access to these type of pricing that we can get in in bulk quantity I think it's going to make a huge difference for their budgets as well and thank you very much for letting us talk to you and we're glad to take any questions great and you do have a couple questions and we'll start with senator rice you're recognized senator. Thank you Mr chair of the state and I do like savings under like transparency appreciate your contact then get back with me but we have today to find out that one of my question was is roughly what kind of state volume of purchasing is there another let me just throw some out and you can make a lot more together my concern was eight you. Stated that any current. Purchasing contractor Nolan board. My concern is we can have something this big without any. Legislative oversight. Not do you. Legislature given up. Hires the agencies. that that to me is something we need to consider and in a address this is just a courtesy that you're doing today to report. On the bottom of purchasing I would wonder. I run a company I run it I work because I wanna profit. I expect you mac prop is or any ideas or any is it. we have any idea what kind of. But dollars this is going to generate who it's going to take business from I've abuses simplistic. Item that came out of my business number years ago or some I tell me I needed to move I've been this the. To out of town could make more money owned known some. And I said yeah but there's more help. The bhajan police. Have less business that I've been with them every day. So those are some of my concerns is were you say an Arkansas business concealed a mass of tissue to match to should business concealed Arkansas correct. No Sir that's actually totally configurable out of state among I'm we're out there all that out and I just need more education. But I'm hi again I'm not against the US I've discussed questions and and it's after the five so while you're doing to educate me because I have no say in thank you senator rice since we we spoke this week earlier I did find out of ash a little bit more information on some numbers for you and so because FY twenty books are still being close my numbers are from FY nineteen but if you're looking just at commodities this is just a snapshot of the commodities the spent in the state was seventy four point four million I in twenty nineteen so one percent of that would be. Seventy seven million now. My number's her problem here it's typed in. Yes basically seven hundred thousand and so eighty percent of that to periscope would be almost sixty thousand and the state would bring in around a hundred and fifty thousand if you're just talking in round numbers and that that's for the spend of FY nineteen so that's just one example you can look at. All right senator rice in the fall A just one other thing you might could help me within this is with the savings can you tell us about how much you're going to cut your budget is we prepare for that this fall with the savings and in our other agencies around we will be able to trim budgets a little bit. I didn't have a budget until July first of this year with that transformation of the department of transformation shared services is being brand new so I feel like we're pretty lane but we can definitely take a look at that and the don't know how much it'll generate in that time span a lot alike savings in when you get saving G. we've got room to cut a little bit thank you Mr. Thank you senator. All rights and we got seats thirty two that Senator hammer you're recognized for a question Sir thank you in misled to read for disclaimer we did have a conversation earlier on this the one thing I thought about if the conversation was use said that it be somewhere I think between fifty and a hundred million if you were to do if we were to do this as a state and just curious and I think I just heard throughout a number so from from periscopes perspective that that seems like your return on investment is pretty minimal that will be going back to periscope given the magnitude what the contract would have been for us as a state if we would have done it on our own without periscopes of just how how does periscope. Get the benefit both in the short run but off also the long run and should we expect that one percent to go up at some point in the future to where you get paid on the backside of the investment. So the one percent contract is eight four five years so there will be no going up during that time frame there's there's no cost up front to the system out when I spoke with you I did say arrange a fifty to a hundred million I have that now had access to the actual bids and was thirty five or seventy five million was where they landed the actual bids that we did not award either one but so we want the state would have been out that much up front. Or we can be out zero cost on the front so I don't know if that answers your question. The cat does I A just wondering you know thirty five said by which we have to figure out where to come up with that in order started I'm just I'm just wondering what the future holds so as far as how much will pay on the backside you know sometimes you savings on the front side but you pay for down the road I'm just wondering one kinda like to lottery system you know once we get past five years you have any idea based on other states how much they're increases been the state is not paying that feeds the vendors are so there should never be a cost to the state for the system is that correct Brian. That's correct and Senate so there there would be no cost even after the five years if we choose to renegotiate a contract okay and there is a term used while ago called revenue generator which in some ways could sound like a code word for fear tax how is that how is that not considered a fear attacks that is being passed on to the vendors that are gonna be paying one percent which probably in all probability is going to come back to to us anyway well it's a convenience fee like I was saying like if you choose to pay your property tax online then you pay a small convenience fee for that I was looking at that I think it's like three point two five percent on some of the things that are in the state system currently and then branded you have some something to add to that in it's optional so the the vendor can say adult I don't want to I don't want to pay the fee so they would be in the the market place but they would still have their contracts available you could still by on through the entire procure to pay process they just wouldn't be in this open marketplace. So it's it's it's very it's a it's a convenience fee and it's optional. Okay as far as what you all the vehicle you all used to initiate this is to cooperative yes Sir okay alright thank you thank you. I think Senator hammer. Thank us see sixty three is that your present Dotson yes thank you are recognized for a question Sir Just king in on. Senator hammer's discussion on whether this is a fear tax I mean. Some of us don't think there's really much of a difference in. The function of it just how you spell the word And that I hope you I mean this is four point six million dollars or of revenue generation over the course of five year contract is that correct or is that per year. That's an estimate and it's over the five years over the five years so I would hope and I understand that this is already. We've already awarded this contract were in a five year commitment and there's nothing we can do this is for informational purposes only but when you go to renegotiate this in the next five years rather than having revenue generated for the state that you know is is coming out of the fees of Arkansas businesses That you reduce the amount of the fee and just pay the vendor directly that cost of the fee rather than trying to read generate revenue for the state. The sun noted thank you thank you. Representantes in. Right CC twelve whose and see twelve. That you represent a Murdock Johnny that you. Representative rye you're recognized for a question. Thank you Mr chairman just Amy just to make this kind of sample if you cut this four point one or four point six percent. The people that were actually bind from are they gonna cut their cost us. Is that what we make it a. But what happens is is when you when you do the strategic sourcing part of this project and you go and you do contract rationalization and you really look at your contracts what they look like in you taken to re BID and you show the volumes in the dollar amounts you get reduction in the more you have by an off these contracts in electronic format the reduction you get back to to this is national the more spend goes up the more reduction you get cost. Thank you Mr chairman thank you. Thank you. Alright members. Any more questions Collins. Seeing none secretary Thatcher stradley we appreciate your being with us today thank thank you so much. And. All right miss Kathy if you're ready skip the agenda going thank you Mr chairman the first item on our agenda day under baby is a lease agreement disclosure and it's an approval item for the committee this is that they could disclosure of a lease with on Broadway with UAMS and the disclosure is Senate Representative Deborah Ferguson is fifty percent owner of the property and it requires a prior approval of this committee ILC and the governor and on the first page of this letter you'll see the governors approved signature on this of the next few pages have information about the actual lease it is to begin October first twenty twenty and expire September thirtieth twenty twenty one and and labor laws here if there any questions about the particulars on the lease this is something we've seen in this committee in the past again this is the approval item Mr chairman. We have a. Alright members any questions comments. Seeing none the sun will stand reviewed. Approved skews me. Of thank you then the the next item on our agenda are methods of finance and I on item C. page one you have the letter from DFA we have to that that the finance being submitted today. On page two of items that you have the two methods of finance the first one is U. A Phillips community college FOR pillow Thompson house restoration it is four window replacement and restoration of historical tram and molding as well as a painting the entire home and other miscellaneous repairs four hundred eighteen thousand three hundred forty nine dollars they also note that they've received a grant from the Arkansas natural culture resources can counsel in order to fund this project the second one is U. A MS this is for parking deck this is for the design fees to build a parking deck on the east side of the main campus it's located adjacent to the new pine cedar Boulevard and this will serve a thousand vehicles and will support the expansion of the east side of the campus UAMS has reserves and revenues to cover this which is one million five hundred eight thousand one hundred twenty five dollars those are all the methods of finance on today's agenda. Alright members the further report or any questions or comments. All right seeing none these items listed as approved. Reviewed. The next group of our distressed discretionary grants the first group in autumn day come from the health department the first one is for burn care education and associated costs without reach and educational materials. Use me. Numbers two through eight are all four of primary care clinics who are participating in the Arkansas clinical transformation program grant programs these are amendments to existing grants and the number nine on page three is an amendment for a for Arkansas hospital who is working with the private sector employee population in dealing with diabetes self management education and support services and both English and Spanish. The next group of grants. Are from the Arkansas arts council of these grants were funded through an annual state partnership of federal grant program from the national endowment of the arts. Arkansas conservation tax and general revenue appropriations and a generous amount of a hundred fifty four thousand dollars that they received this year from the Wingate foundation that eighty I use these funds to augment and support arts curriculum development and summer after school programs in artist residency programs they had a panel of that reviewed the applications and then on page five of the packet. We begin the actual report on the grant period July one twenty twenty through June thirtieth twenty twenty one it shows the provider the area that the state that'll be serve the services provided the amount that they requested and the amount of the ward and then we have those funding sources that they provided on the previous page of the percentage of each of those funding sources that our providing for these grants and on this one of the total amount of awards will be a little over million. Dollars they received over two million dollars in request so those are the grants today for the arts council. Those are all the grants on today's agenda all rights. Senator Johnson you're recognized for a question Sir. Thank you Mr chairman and thank you for allowing me to participate on this a. I have some concern about this I noticed in on quite a few the what Sir on item day to I am the to yes Sir so we have some I from the department of parks and here to cheer. One second center no problem thank you Sir. Welcome to please give us your name and position for the record. Thank you Mr chairman Patrick Ralston on the director of the Arkansas arts council. Red cross and happy happy happy with this afternoon senator Johnson you're recognized procedure question Sir thank you Mr chairman Mister Austin I will I ask these questions not to insult you I know you know these answers but I'm going to ask you for the record you're familiar of amendment seventy five. The conservation amendment yes Sir our and I'm reading it now straight off of Lexus so I like to think the language is correct. It says under section the of the number three use of proceeds forty part five percent of all moneys collected from the tax levied herein shall be deposited in the state treasury as special revenues and credited to the department of parks and tourism fund account to be used by the department of parks and tourism FOR state park purposes as appropriated by the General Assembly. Now. I read that literally you guys may have more creative reading of it but I look at some of these will start on page one of six Arkansas arts festival. Operating funds for administrative expenses that's a private nonprofit as I recall is it not it is not a problem are they located in a state park. No Sir okay let's go the next on our agenda community theater. Of provides general operating funds for administrative respecting Spence's seventy seven percent of the A well it's thirteen thousand fifty eight dollars of which seventy seven percent came from the conservation tax fund a. Are they located in state park no Sir they're not and do I need to continue or do you get my drift on this I think that Yeah I I believe the the number that you gave was forty five percent that goes parks and tourism is that correct no Sir it does kind of parks and tourism but here's what it actually says. To be used by the department of parks and tourism FOR state park purposes. I mean I'm not against the arts I'm very much for the arts and we fund of another manners and your agency I know does another manners but to take money from the conservation tax that was passed by the voters and was present to them for a specific purpose part of it was to for game and fish as you well know and part of it was for parks and tourism FOR state park purposes as well as the hi here at heritage fund account in the keep Arkansas beautiful commission those are the things that the the taxpayers were told when they were asked to vote for this they didn't say arts festivals that I do know purpose personally because I I follow the same so it's a great program but the Arkansas arts festival has been canceled for twenty twenty completely cancel and I'm I'm not a this is the kind of thing that I really am concerned about an hour oversight role that that we walk in here and say a seventy seven percent out of something that was specifically set aside at least your agencies portion of it for state parks purposes I know we're trying to get onsen that the fire project is like is there a question that you're getting here Sir get an answer okay well what's in rationalize that maybe I'm missing something Mr chairman they may have a a rationalization okay I haven't heard it yet well. Get a chance to respond. Thank you thank you Mr chairman senator of. The of we the the arts council portion of the conservation taxes not derived from the parks and tourism portion that we are all part of the same department now but historically the arts council of Senate since nineteen seventy five has been part of the department heritage and has received since the the conservation tax the amendment was passed what has received a portion of that through heritage so it's not there was never been any implication that it would be part of parks at a July this comes from heritage department well it's now the heritage division but it's it's that's correct that's correct yes end of just give another example of this is the the heritage the heritage allocation of that money and I can't remember what the percentage is nine percent okay yes it's a smaller part but that they're part of it is divided up among the it's very their various divisions or agencies historic preservation I know gets and yes but you that that's that's how we're we're not coming out of the parks portion which is quite a bit larger forty five percent yes Sir yes Sir so this is strictly money from that's appropriated through what used to be the heritage department I guess now is the heritage division is that correct that is correct okay now is this the the total annual for FY twenty one is best of your understanding that's not the total annual these are these are those that the grants these are the larger grants that are ten thousand dollars or more more of that are required to be reported to the review committee the of. The total amount is about one point five six million okay so this is like two thirds of it yes Sir okay well that answers my question have I didn't mean to be testing but I I wanna know where this money is going and where it's coming from a specially so thank you very much and thank you for allowing me to ask questions thank you center Johnson thank you John but one second that we have one more question here. Yes senator Irvin you're recognized for a question thank you I'm right here there you go thanks how are these selected is this an application process to say that this is a these are actually of three different application processes of the collaborative project well actually arts and education which is all federally funded and then our general operating support grants and now you're each reviewed by a panel of three outside of panelists usually the staff from other state arts agencies around the country in our colleagues of and a couple of our counselor state arts Advisory Council members and so they are their school board reviewed it's a pretty. It's it's a pretty intensive process and it was done this back in the spring okay and and I know that you've been to my area before and and always welcome me there but I I did you know it kind of stuck out to me that there's really nothing for north central Arkansas not much for south east Arkansas so I'm I just wanted to see how outreach was done and how these grants FOR awarded and if we can make it more of an efforts to do more of a comprehensive statewide approach because there's lots of music festivals and arts festivals and things like that all across the state of Arkansas so I would like for there to be if if this is gonna be a program figure out a way that we can because there's there's some on entities in here that are have. Double grants and grants that are coming from federal revenue and when gate and then some that are coming from St revenue and that conservation tax combination I would just like there to be more statewide coverage. Thank you senator I and I agree and it's been a push for me since I've been with the arts council to put is a southeast Arkansas is is one of the areas that is is very under resource and so trying to build leadership in the arts and try to you know try to try to get people where they are are ready to apply and bring them into the program and north central Arkansas is again the you know in so in many ways there are you know the of do population the where the population centers are located of it becomes you know it's it's a challenge as you know as it is in northwest Arkansas in the in the Ozarks but of but it's not an insurmountable challenge and we continue to try to generate to to new partnerships up there and so I'd I take that to heart yeah and I appreciate that I I want that to continue but you have folks like that the a foundation and perhaps still can work with them to help out reach in those areas where they may not have those large groups of stakeholders that are involved in that but there are festivals there are blues festivals as you well on where are we arrived and there's all kinds of things that are happening but north central Arkansas tends to be left out a lot and there's a lot of things happening in that area and Newton county Jasper and you you've got all kinds of things that there but I just I would ask that you make more of a concerted effort to really reach into lots more areas thank you thank you thank you senator. The gentleman. Alright members see no further questions and without objection these items will stand is reviewed and we've got to items for a supplemental agenda and so I'm gonna need a motion to suspend the rules. All right. Kathy. Thank you Mr chairman you should have a packet of their this labeled H. for a supplemental agenda there are two contracts for review that have been submitted that we want to go over the first one is Henderson state university with collegiate solutions on page two of the packet is the actual contract with Henderson four three hundred seventeen thousand nine hundred dollars this was done as a special procurement on the next page is the letter that we receive the request from Henderson asking that this be up system rules suspended to be taken up today date talk about the request is. Of four and a contract to that's needed due to a delay in returning a policy agreement with part of the contract made it miss the contractor that submission but this is a contract for Henderson to hire someone to fill the role of the president chancellor of the university Mister Armstrong with Ellis P. has reviewed the documentation and has given of approval of the the contract of for submission today the second contract is begins on page eight and that one is from the department of finance administration this is with the center for toxicology of and. A it is an original contract for four million dollars it also the special procurement this is the contract they were talking about this morning and peer at dealing with co that money under the cares act the funding that was been made available and this particular contract will be used to look at. A software and consulting expenses for auditing and keeping track of the money that's going out from the cares act funding so both of these are on today's agenda for legislative review. Alright members are there any questions or comments. Right seeing none these items will stand is reviewed. Mister chairman the next group of our contract they begin an item AT page one this is a letter from Mister Armstrong that comes over with the contracts he pointed out a particular contract and I do want to note that this contract was pulled up it will be on our August agenda it had to be moved two of accommodate a scheduling conflict with the agency so we won't see that today I otherwise the other contracts is drawn from points out our own face value lawfully procured contracts the construction related contracts begin on page two. The first one is the college of the Ouachitas this is also known now as a issue three rivers it's an architectural contract it is four amendment adding additional money for phase one restoration of the Ritz the interim Malvern they have receive some funding and they've also received a grant now from the Arkansas natural and cultural resources council for this for renovation and revitalization of this old theater in downtown Malvern number two is a national natural resources commission this is contract amendment are contracted they have four of those supporting the fame the risk mass that program in late flood risk assessment activities. Number three and FOR these are both for southeast Arkansas college they have two buildings general studies north and south on their campus that need to be torn down of one the first contract is for the demolition the second contract is FOR the asbestos removal of of the buildings I do want to note that we receive the the request for emergency legislative review July second for this it but it did not receive unanimous legislative review by the A chair persons who were involved and so it was placed on today's agenda so those of the construction related contracts on today's agenda. Alright members any questions or comments. Seeing none these edible stand is reviewed. The next group of contracts are inter governmental contracts beginning on page for the first one economic development commission this is an amendment with you a of Arkansas World Trade Center it's the for trade activities to benefit the state number two is the health department and this is with the university of Alabama at Birmingham for telemarketing services number three on the next page is DHS with a issue Jones were or this is an amendment to a contract to promote technical assistance for childcare and after school providers to improve program quality and number four is the state police with university of tall at of Tulsa the me test Colusa Alabama sorry it's for a contract to develop and maintain the move Arkansas mobile officer virtual environment of Arkansas assistant and those are the inter governmental contracts on today's agenda. Alright members are there any questions. Not seeing none so without objection the subtle stand as reviewed. Next grade contracts of begin on page six these are the out of state contracts the first one there is for a issue Jonesborough this is an amendment to an existing contract for consulting advice and representation for the system and its board of trustees number two is the crime lab and this is an amendment adding an additional ten thousand dollars to an ongoing contract that they have for outsourcing lab services due to the backlog in DNA testing number three is department of public safety this one is the original contract for public public safety communications consultant services. Numbers four through six these are all going to be for the education department and they're to administer assessment testing to students in K. three eight. Number seven is also the education department and this is for administering the star math and reading assessments and they're amending this to add up to go from K. two two K. eight the number eight is the health department this is an amendment to an existing contract that they have for cancer registry certified tumor registrar services those are the out of state contracts on today's agenda. Alright members or any questions. All right seeing none without objection the subtle stand is reviewed. The next group are in state contracts on page nine the first one is a issue baby this is an original contract with a title three grant writer for the university A issue Jonesboro has to contracts one for number two is for consulting advice and representation to the A issue system and board of trustees and the other one number three is to provide consulting advising representation again for the university system and board of trustees number four is disability determination this is add on the original contract for a with the medical consultant to to examine and do reviews and evaluations number five is education school for the deaf this is an amendment to their existing caught a contract for audiology services number six of is a contract for DHS for comprehensive substance abuse treatment services number seven is also for comprehensive substance abuse treatment amendment number eight is intensive family services another DHS amendment number ninety eight yes and this is for specialized private placement agency. Numbers TM three twelve for DHS are for intensive family services amendments to those contract contract number thirteen this is the insurance department and this is an amendment to the existing contract they have to help Arkansas Medicare beneficiaries in their care givers apply for extra help and Medicare savings program and educate them about of prevention services and Medicare prescription drug plans. Number fourteen this is a contract with the medical board and hope tries o'dwyer and Wilson this is a special precarious letter packet that is of the letter from the department of health requesting special procurement and then the letter from I wish P. Mister Armstrong in this the on the page three of the packet Mister Armstrong states that the office of Attorney General is will be taking over representation of the board but they need a year to get brought up to speed on and so they are asking for one more year contracting with an agency that the medical board has been contracting with for several years now so that is the request for number fourteen number fifteen through seventeen these are all for the military department and they're for nursing services date Had in the past had a of up people in those in a position as a nurse to work with their youth challenge program A mainly on checking in and checking out throughout the time that those students are on their campus and this would be three different. Nursing services that they could use if needed of two private provide pool services for them number. Eighteen of this is also for the military department this is the waste management and this is their collection and disposal of municipal solid waste of a that's a contract for that on page seventeen contract number nineteen is legal services for general obligation bond program this is for natural resources commission. Nursing board has three contracts for nurse investigator of those original new contract and contract number twenty three workforce services this is for summer programs due to loss of instruction in school due to code nineteen this is in order to promote learning for all ages during the summer months so those are the in state contracts on today's agenda. All right see here. Isn't six thirty two. Okay Senator hammer you're recognized for a question Sir thank you could get the board of I mean department of health or someone permit health. is. Mr Gilmour welcome Sir. Thank you Sir back on one part health. Senator hammer you're recognized perceive the question thank you regarding the item he fifteen regarding the retaining of attorney services did you get any explanation for the delay from January to may the child and get a response of the tourney general's office for Which seems to have created a delay in the medical board getting legal representation can you give me some background sure up I think the issue was that as the attorney general's office says Taking on more boards and commissions I think they were trying to see what their capacity was I don't speak for the attorney general's office they're here I think out in the in the foyer but We had some communication with them they were looking at it and trying to figure out I think what they're capacity was and also the board had questions so I think it was kind of a Trying to figure out what was going to work not work that sort of thing. And the legal office that you're retaining to provide those. Services is it for an interim. Enter basis tell the AG get set up and ready to represent shall so the plan is is that Mr o'dwyer he's been there tourney for awhile will continue the services he's providing now for at least six months up to a year and at that point to the attorney general's office will step in and and and work with under that time but at that point they may step in or move forty year I'm not sure what their long term or what their how that will work as far as timing but it'll be at least six months will be working with him to my understanding. Share no not remember committee which any chance you would mind getting the AG's office in here. All right to I guess my from the AG's office there step. Good afternoon Mr chair on Brighton I with the attorney general's office and I apologize there's a bit of a delay out in the lobby if you would mind repeating your question sure read thank you Mr chair there are yes Sir alright thank you just wanted some explanation is for the as far as the delay from January to may because it seems like maybe this is necessitated the delay so I'd like to just your goals explanation. Sure and and thank you Senator hammer up. As part of the. Rent. Yes can you hear me now yes okay as part of ACT nine ten the transformation that pastor in twenty nineteen our office begin looking internally at different boards and commissions that retained outside counsel and whether or not we could take on additional representation of we had the band with to do so and there were several other boards that were looking at and so it's just a matter of that conversation internally to make sure that the the medical board considering the the amount of work they have whether or not it's something that we could handle and after discussion internally we decided that it would be so yes there was a bit of a delay in getting that response back out and our office stands by ready and willing to offer those services. So you're gonna have to increase your staff to accommodate the load is going to come on and I guess it is it a domino effect that we're going to see the AG's office having to take on other responsibilities of the legal dealings of other boards and commissions is this just the beginning of several to come. Well there are a few so under the Attorney General statute for far duties and for some other language in the and legislation out there for particular boards and commissions. Annually they have to follow certification with our office and ask whether or not we have the capacity to handle additional work and in light of ACT nine ten Some of our boards and commissions for re aligned under different departments and so for example myself there were four boards that I represented that now different departments with their own in house counsel are able to take on representation of those boards which frees up me to do additional work and for example medical board being one myself another attorney in our office will be taking over representation of that board and we have the band with we have the time okay because it is like know ahead of time if if. Through act nineteen and it's created a shift that's going to result in cost shifted elsewhere would like to know that in as far as advance because I think that give up you know of a better view of things if you can pull that together so you have that. Would be happy to do that senator and and just just for your edification our state agencies department which I'm a part of we have eight attorneys on staff and and we are there to cover each other we we all know each other's caseload I don't anticipate that that's going to be an issue but will certainly look at that for you thank you Mr chair for the lead to thank you center thank you. Thank you alright members see no further. Or without any further questions or comments these items will stand as reviewed. Mister chairman the next items on our agenda are reports these are contracts that have already been executed in being reported to the committee on page one F. one these are the contracts that or have previously been reviewed by this subcommittee and that they are being extended for a year with no material change number F. two beginning in the packet of these are the contracts that fall under the threshold for review but there are reported to this committee and if they are amended at some point we may see them at that time and then F. three is a packet of three critical emergency at procurements that were done these all had to do with cove it nineteen the first one is Cranford Johnson Robinson what would this is the department of workforce services a contracted that entered into with them for covert nineteen unemployment education campaign the other two have to do without contact tracing which the governor's talked about the first one is General Dynamics with the department of health and that this is a twenty million dollar contract what they did was they did an RFP and they ended up interviewing six of the contractors and then talk to them about the price in the in this particular case General Dynamics was chosen they've also done work with the CDC and of then after this they went ahead and awarded another contract with Arkansas foundation for medical care based on that same solicitation so it the third contract is Arkansas department of health twenty million dollars for contact tracing for code nineteen those are all the reports on today's agenda. Senator hammer your question Sir Mr chair can I make a point personal privilege to make a comment case members work in a meeting this morning regarding the contact tracing contract. Sure make sure. I thank if members have not heard from their superintendents of their schools they need to contact them between now and Friday to determine the additional manpower it's gonna be required that the department has shifted on to the schools to be responsible with regard contact tracing we're given a twenty million dollar contract to a company that I would think would be their responsibility they should cover under that cost but we're about to put a burden on our schools after having already absorbed at least at this point twelve million dollars in food services have been reimbursed for yet of the be good if we all talked or superintendents yes some of from the trenches information before this is finalized Friday morning thank you Mr. Thank you senator. Part of the. Okay and so Kathy permit under standing that money has not been appropriate that money been appropriated yet I mean that's gonna cut that's gonna be ready vote on that nail see on Friday. Correct yes go ahead represent were all you in. Recognized Mister thank you that appropriation was held this morning for discussion on Friday I am sorry I was in here for the contract I would of also made a motion to hold it as well but with the preparation held a again as you had them out I mean the preparations been held so we're not. Yes Sir they will it was held in Pierre this morning. That. Because of contracts already been excused or would be nothing to be held in here but the big thing is the appropriation was not approved in here this morning so it's great and a motion I actually made a motion myself motion was made for the full LCD to take discussion and approval on Friday house understand that public health we meeting on Thursday is that correct Senator Irvin okay unit at one o'clock. Okay thank you. All right see here. And I was not Senator Hendren whose NCC fifty three okay Senator English so what is it we're talking about here what is this contract we're talking since I'm not a peer many of us are what what's the contract we're talking about owned item F. three in your packet is report of critical emergency contracts these are contracts that the state has entered into due to A critical emergency and they've already been executed and they're being reported to this committee and one of those contracts is with General Dynamics it's for contact tracing of in June June fifteenth the governor of announced in a press conference that they were gonna do contact tracing they then When I had indeed an RFP out of date procured it using a critical emergency procurement because of the imminent need concern the governor asked them to also can do a competitive bid process so they directed to solicitation request that day Senate out to vendors asking for expedited return and evaluation process twenty eight vendors responded a committee review does proposals and scored their submissions the top six were interviewed and at that time they talk with them about price general out dynamics was chosen and date not only rank the highest in the technical pros a but as well they had the best price and they don't work for the CDC and so that the one of the contracts for twenty million dollars then they went back to our they'd spoke again with it's P. about doing a multiple award so the department of health awarded another contract based on those are if peas that and evaluations they done with Arkansas foundation for medical care for an additional twenty million dollars for contact Tracy so they're actually to contract so what does this have to do with schools. Kim hammer the six schools is the balance of what with minority made available. The second he answer the question sixteen sixteen and. Here was the balance of law. So then Senator English as want to know is that with the connection to the schools one is I have to do the schools. Him. I'll hang on. Go ahead Senator hammer thank you. What a shared in committee this morning Senator English was and talking to a few superintendents they have been asked to be responsible help in the contact tracing with regards to working within the school if there are kids that are determined to be involved in that and in some of the superintendents I talked to this morning there talk about having to divert manpower nor take care of that and that that to me is something that we need to be aware of that have anything particular do this contract but we're asking we're giving a lot of money to a company but yet we're asking our schools to do a substantial amount of work when it comes to kids identified now maybe they're going to participate in the process thankfully Senator Irvin is called meeting to have this discussion because we haven't so appreciate that and they can be aired out Thursday but I think I'm just doing due diligence say we need to probably talked or schools to find out what the expectations are being placed on them before we give the company a lot of money and then expect people all right to do the work inside that's it thank you thank you that's all I needed to know thank you senator English thank you senator hammer. Senator Ballenger so you ninety seven. Recognized for a question Sir thank you Mr chair and I think that the if we're discussing this and I also use probably better place to do it and so I I have been questioned mental then correct thanks Sir. This center Johnson's eight on their. And. Thank you Mr chair On the other on F. three on page one of three a. The dates on the contract period for one twenty two six thirty twenty. A. This is for FY twenty money is that or just twenty one money what what what are we. Where did this come from and what to funds or it is it coming from I'm just I when it's a covert nineteen unemployment education campaign I can't help but think of some of the. Shall we say. Road blocks and bops we had in getting that employment situation cared for not just want to see where is this and all right yes it thank you. At the gym you. Up from what I understand Mister chairman it's part of the money from the Covin of funding that has. By that one point two five. So this contract was let when. It be again. April first yes ma'am I see the April first but I'm just warning once just now here these are contracts that are procured through the emergency critical emergency of they were deem to critical emergency and so they're just reported to this committee so so okay there's no way they're not approve there just simply reported that this was already done by the executive branch is that correct yes Sir okay well breath nothing new there thank you Mr X. are. Numbers that concludes today's agenda appreciate run by being here today we are adjourned.