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ALC-Review

January 13, 2026 ·10:00 AM ·Room A, MAC ·1:03:52
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Speaker 8 1:41
right members take your seats we're gonna get started vi e w subcommittee come to
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Speaker 11 2:02
order cochair you got anything without objection we're gonna take up the supplemental agenda
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Speaker 12 2:12
go ahead our suspend the rules take up supplemental agenda motion motion second by Senator Painter or All all in favor say aye all opposed like sign thank you members we'll take up the supplemental agenda
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Speaker 20 2:46
thank you Mr Chair. good morning members
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Speaker 22 2:48
Katie Walden, Bureau of Legislative Research Fiscal Division, your supplemental agenda can be found on the very back of your packet behind the blue sheet of paper Staff received an additional contract for review by request of the department of finance and Administration on Monday of last week. This is one out of state contract for Tyler Technologies. This contract is originally valued at $2.6 million it was procured through RfP process and it is for the development of a mobile app for citizens to be able to access state services initially it's going to be used by DFfa to for their vehicle services and licensing but the hope is that to expand this out to further services across state government this is the supplemental agenda item Mr Chair. any questions Senator Rice
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Senator Terry Rice Unverified 4:10
Thank you Mr chair you got me on now my'm sorry my light was on before the supplemental my question was and I thought it'd be helpful for the committee can the committee expect going forward we're gonna continue to flip and have review mornings and peer and afternoon or is this one time I I would hope not that was
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Chair Unverified 4:33
a request from peer chair so you don't expect that to
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Senator Terry Rice Unverified 4:38
continue? I don't expect it to continue. OK, I just thought that would help
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Speaker 29 4:45
the committee thank you any questions on the
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Senator Joshua Bryant Unverified 4:55
supplemental agenda Senator Brantt Thank you, Mr Chair. It maybe some of DFNA can answer this but I'm just curious when we let this contract and then the current pro progress of the development of the software is that part of can that be part of this discussion
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Representative John P. Carr Unverified 5:20
tro du ce yourself and you're recognized Jimhutson's secretary DFA good morning committee. Senator Bryant honestly the the underlying software if you want to use that that term for all the systems that they're already developed they're already there this is a way to kind of bring in through a single sign-on process all those systems so so citizens don't have to go to 15 different websites to be able to access services we're looking at having one app that consolidates all those services so making it easier for the taxpayers to be able to access their information and the
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Senator Joshua Bryant Unverified 5:56
services they depend on. so the original contract is that that portion been completed we're just gonna add more to the contract so they can add more of those services
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Representative John P. Carr Unverified 6:06
onto that single appx access. So this is this is a new contract and the contract is strictly for developing the app to be able to access the the services that again the services are all they're already existent in the existing systems around the the state
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Speaker 43 6:21
government OK do you know when the completion of the hopeful hopeful completion of the app
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Representative John P. Carr Unverified 6:27
would be we're targeting the fall uhoctober firsttish. so this year
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Speaker 29 6:35
this year this calendar year yes thank you any other questions seeing none motion to review the supplemental agenda motion and a second by senator Mcee all in favor sayy aye all opposed like sign thank you let's go on to the methodthodist
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Speaker 22 6:56
finance thank you Mrir. Under item B you have5 methods of finance for your review today. first you'll see the letter from the department of finance and administration stating the five projects and then behind that you'll see a table summarizing each of those projects so I'll quickly outline them for you now the first two methods of finance are with AU Jonesboro number one is for the collegelege of Business roofplacement. it's an original MOF valued at477,000. they hope to use sustainable building energy revolving loan funds for this project and number two is for the admin cooling tower replacement for their administration building. This is revising an existing MOF up to $269,000 they hope to use university reserves for this project. Number3, and you'll see this project mentioned a few times throughout the agenda this first time is with you of a Fayetteville. this is for an academic classroom building. The Uuve hopes to build a 100,000 gross square foot facility in the Mcellroy district it will include a classrooms and innovation hub and it will increase the by 2300 student seats the original total projected cost is $100 million and it will be paid for with 95% university reserves and5% gifts. Number4 with Ua Fort Smith. this is a new original MOF for the university police department renovation valued at522,000 dollars originally using university reserves and number5 with U of a Hopetexarkana. This is an original MOF for the studentcentre boiler chiller replacement. They will use plant funds for this project. These are the methods of finance this
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Clayton Hamilton Unverified 8:44
month Mr Chair. representative ladyman I've got a couple questions actually on number3 there it talks about the new classroom building is going to be located in the McIlroy district where where is the McIlroy district
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Speaker 12 9:02
I asked Representative McIlroy he said it wasn't in his district did
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Representative Jack Ladyman Unverified 9:20
you you know university come down yeah yeah please Yeah, I was just curious is this on the main campus
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Speaker 35 9:25
or satellite campus? Introduce yourself and you're recognized you've heard the question. Good morning and
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Clayton Hamilton Unverified 9:28
thank you and happy new year to you my name is Clayton Hamilton senior associate vice chancellor for campus services so for us that is our facilities real estate police parking and transit this new classroom building will be located on the main campus adjacent
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Speaker 61 9:43
to the Walton College of Business in that footprint of
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Clayton Hamilton Unverified 9:46
campus all right thank you very much I had a second question in the last column if that's ok Mr Jim we talks it has the estimated start date for these5 projects and the completion date all of the estimated start dates have passed some well not a long time ago one of the completion dates has passed so why why why does it show a completion date in 2025 when we're just reviewing it now that's that may not be yours that may
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Speaker 64 10:26
not be our projects our ametic completion that's University of Arkansas Texasarana. OK.
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Speaker 67 10:36
ex ar k ana that's what so are they here is there
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Chair Unverified 10:41
anybody here from University of Arkansas Texasiran. come on down Same thing just introduce yourself and you've heard the question
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Speaker 71 11:12
yes I amerrry ford the CFfo or vice chancellor of finance anddministration with Hopeexiranana. the reason why it was originally under budget or under the $250,000 floor but we ended up finding some other problems that we ended up going over that $250,000 threshold and it was more of an emergency type of situation where we ended up having to go ahead and do the repairs because there was nothing else that we could heat the building with cool the building with and it was in our student center and it was the only method of heating and cooling that we could do there. so the project is complete yes sir we're reviewing it now yes sir it was originally supposed to be under that $250,000 but it was we as we got into the project the we found more problems that were with it it is a 60 year old campus so with piping and and compressors and things like that it just
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Clayton Hamilton Unverified 12:23
it got larger well this is not just for you but 1,2 and5 all show that they started before this meeting and we're reviewing them all now I mean these I think these dates should be adjusted I mean why are we reviewing things after they're done? I mean what res recourse do we have to have any input into a project that's already complete Maybe I'm asking the wrong maybe it's staff I mean I mean why shouldn't these things be brought to us before they start I mean if it takes an emergency then there should be an emergency addendum and it should be brought before us I don't know whether that's a question Mister Chairman but I'd like to have some kind of an answer why we're not reviewing things before
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Representative Jack Ladyman Unverified 13:14
they start and in some cases before they're done
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Speaker 29 13:20
I think I think DFA reviews these and that's why they were you want DFNA to come down I don't don't look too excited to but you may well I mean why can't
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Representative Jack Ladyman Unverified 13:34
we review them before they start that's my question just come
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Chair Unverified 13:39
on up if they were originally below the threshold that's probably don't go
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Speaker 29 13:43
too far there I got some more in the queue.
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Representative John P. Carr Unverified 13:54
mis Chairman this this not exciting work is is my natural disposition. Jim Hudson secretary DFfa by rule methods of fence don't get reviewed over here if they're under $250,000 so the the university did exactly what they're supposed to do oncece they trip that 250 they provide the method of finance we reviewed it promptly and put it on your agenda for to look at so really it's it's impossible for situations like this for the to know in advance if they're gonna have a surprise but when they found the surprise they promptly notified us and now it's now it's before you
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Representative Jack Ladyman Unverified 14:25
I understand thank you for that answer yes sir Senator Bryant Thank you
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Senator Joshua Bryant Unverified 14:34
Mr Chair. this will go back into item three for University Arkansas Fayetteville. I don't think you
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Speaker 29 14:44
have to introduce yourself again was about to tell you not to leave like you just right over to your
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Senator Joshua Bryant Unverified 14:56
left. just it'll follow into also item C since it's reviewed over contracts of5 million. I'm just it just kept flagging in my mind that we're going to pay000 dollars a square foot for this structure I'm just curious can you you may not be familiar with the build but can you kind of help me understand what's going into this structure for,000 dollars a foot yes sir
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Clayton Hamilton Unverified 15:19
and thank you for that question so there was an extensive amount of work done prior to this project moving forward to look at options for a new classroom building we had completed a space study on campus we completed a study specific to ourwalton College of Business and and certainly knew we had the need for additional classroom space the $1000 a square foot is estimated on the high end we've unfortunately had some projects recently that have come in over budget where we've had to come back and request approval after the fact so that carries a healthy amount of contingency and that estimated cost and we're working through a full design phase we've got a contractor on we will have a contractor on board to help us with the estimating as we work through the design costs have gone up significantly certainly across the country we've seen that in northwest Arkansas so a big part of that is just trying to have a budget that you know we can stay within OK so
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Senator Joshua Bryant Unverified 16:16
we haven't we haven't finalized the contract yet we're just sir ok I just looked at the next page we'd reviewed 9 and interviewed4 but we have not you've not made a decision. no
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Clayton Hamilton Unverified 16:26
let me back up actually that we have presented the contractor and the architect to our board of trustees for approval so we have received approval to move forward with those two firms that we've not completed the contract yet I mean that that's the reason we're presenting that
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Senator Joshua Bryant Unverified 16:41
today are are they coming in closer to the 100 million? or they and
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Clayton Hamilton Unverified 16:45
we've not started the design process yet so we'll get into the design process and and come up with the design and have a contractor estimate for the project
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Speaker 61 16:52
for us as we work through that design process all right thank you
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Chair Unverified 17:00
any other questions motion to review 1
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Speaker 29 17:07
through5 motion I heard second bypresentative painter all in favor sayy aye all opposed like sign Mr. Hamilton just stay seated there you're the next on the list too it's general
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Speaker 12 17:26
contractors construction projects exceeding5 million go ahead
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Speaker 93 17:33
thank you Mr Chair. Item C is an alternative delivery method project these are special
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Speaker 94 17:37
projects that are over5 million dollars that agencies or institutions can request where they don't necessarily have to accept the lowest bidder if a project is very special and they need to do this type of procurement. So as as
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Speaker 22 17:49
we've already discussed this item is presented from you of afayetteville. it is also for the academic classroom building and this gives you a little more detail on the selection of the contractor. They state here this project will be a new academic building to be located in the Mcelroy district. It will include classrooms totalling seats for 2300 students it will also create a hub for study, collaboration and innovation envisioned to enhance the educational experience. it will be 100,000 gross square feet they received 9 contractor proposals they interviewed for contractors and as a result of that and through negotiations they have chosen CDI contractors for this project they've also chosenhuffed as the design professional they estimate the completion will be June of 2029 and the total cost to be at $100 million. so this is the alternative delivery method
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Chair Unverified 18:43
project, Mr Chair. any questions on the alternative delivery Senator Brantt thank you misste.
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Senator Joshua Bryant Unverified 18:49
I guess the question will be is is there a guaranteed maximum on these contracts or is it open ended up to 100 million. We will we will
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Clayton Hamilton Unverified 18:58
reach a guaranteed maximum price with the contractor before we move forward with the project so we'll we'll start into design we've got the architect we've got the contractor part of the design process once we're comfortable with the design within that established budget they'll put it out to bid come back with the
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Speaker 29 19:18
guaranteed maximum price for the project so yes sir is there any other questions alternative method seeing none motion to review motion bypresentative Second by senator Bryant all in favor sayy aye all
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Speaker 12 19:40
opposed like sign thank you members let's go on to the discretionary
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Speaker 94 19:45
grants. Thank you Mr. Chair. Itemd are the discretionary grants for your review today. There are two discretionary grants from DHS. the first one
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Speaker 22 19:55
is with DHS DYS this is an amended grant federal grant for targeted youth advocacy initiatives for the southwest Arkansas region with specific focused on justice involved youth in Columbia County.umber 2 is with DHS division of agging Adults and Behavioral Health with the familyenteredreatment Foundation. this adds582,000 dollars to an existing grant and it is for licensure monitoring, training and implementing the family
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Speaker 48 20:23
centered treatment model for treatment facilities. These are the discretionary grants Mr. Cha.
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Speaker 29 20:30
any questions on one any questions on 2 seeing none motion to review motion by Representative painter Second bypresentativeladyman all in favor sayy aye all opposed like sign thank
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Speaker 12 20:49
you members let's go on to services contract thank you Mrir. Item E or the
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Speaker 22 20:56
contracts presented for your review today at the front part of that section you'll see a letter from the OSP director Miss Jessica Patterson stating that her staff she and her staff have reviewed all the contracts presented for review this month and deem them lawful and allowable they also as a request of the September 2020 4 AlC meeting a list of all the contracts on the agenda today that were selected using the most advantageous proposal method or the traditional RfP method. there's the list for you there and finally they state that as an update they have submitted their revised procurement rules to the governor's office and the governor's office is still reviewing them? moving on to the contracts item E1 we have the construction related contracts theres7 free review today. Number 1 is with the Arkansas Commission on Law nforcementandards. This is amendment two to an existing contract with Cromwell Architects and this is for design services for their Eastcamden and northwest Arkansas sppringdale facilities.umber 2uuA assMSA with Bell struction. This is amendment one to an existing contract and this is to revise a contract to increase the electrical scope to provide for three phase power systems on their maintenance building and woodshop. ber 3 UAASMSA with domain architecture this is for architectural engineering design services for the construction of the ASmSA alumni hall and new charter field and on Whittington Avenue in Hot Springs. Number4 UA Fayetteville with huffed Projects. This is the architect firm that was chosen to design the academic building on the UFA campus, the original amount is for6.2 million dollars with huff projects. Number5 Uva Fayetteville withhittenberg Deloney and Davidson. This is amendment se to an existing contract and this is for ongoing services for the silicon carbide fabrication lab project. ber 6 UAMS with Bernard TME and number7 with UaMs withhitzel EvansRascoe. These are both for oncall design services. these are the construction contracts Mr Chair
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Speaker 48 23:08
any questions on the construction contracts
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Representative Jack Ladyman Unverified 23:15
Representativeladyman which one number 2 University of Arkansas right University of Arkansas
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Speaker 105 23:45
Introduce yourselves good morning Melissa ice to University of
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Speaker 106 23:54
Arkansasystem good morning Steve Malick director of finance at AMSpresentativederman
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Speaker 107 23:57
if you would ask a question yes
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Clayton Hamilton Unverified 24:04
just to clarification here but the electrical contract originally was budget at 10,000 and it was raised by 91,000 due to requiring three phase I guess but was that just an oversight or was there new equipment bought that required three phase
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Speaker 106 24:21
electricity it was actually the three phase was a requirement as part of the the specifications needed for the woodshop and that determination was made on the front end by entergy's design team and then when they actually got into construction entergy then advised that those plans that were put forth by their design team were not suitable for the project and they had to route a different route for
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Representative Jack Ladyman Unverified 24:47
electrical services and that's what created the variants so the three phase power and the amount you needed was not available you had
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Speaker 106 24:56
to add poles and lines and is that what you're saying? Yeah I've gotten more details here from what I've I've received for information from the architect but yeah it was it was that they were needing to add additional utility support poles widening of the original planned cleared path and extending the clearing limits to safely accommodate the three phase power infrastructure and they had to include an additional point of connection for three phase power as well and the distance was greater than what was originally planned
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Clayton Hamilton Unverified 25:30
for by was that our mistake or entergy's mistake in the pricing of that it
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Speaker 106 25:35
was just a difference from what the design team with entergy determined initially versus what was required during the actual construction well you
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Clayton Hamilton Unverified 25:45
know I think this raises a question that we ought to look a little closer when we're designing I mean that's a pretty easy thing to know how much power you need and what type of power you need and the availability of that I think we need to sharpen our pencil
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Chair Unverified 26:03
a little bit on that but thank you thank you for the answer. thank you Representative Ferguson you any other questions on on those struction related contracts
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Speaker 29 26:20
seeing none take a motion to review motion to review second uhpresentative Ferguson all in favor say aye all opposed like sign y'all don't sound so excited wake up I know we're we're early this morning let's go on to the out of state contracts there's a quite a few of these thank you chair. Item E2 in your
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Speaker 20 26:44
packet or the out of state contracts presented
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Speaker 22 26:46
for your review today. Number one is with Arkansas Public Employees retirement systemstem with Wellington Management Company. This is amendment one to an existing contract and this amends the scope and increases funds for this contract for funds management and this they state this is to comply with actct937 which is the China Divestment initiative ber 2 Department of Commerce division of Workforce Services with Carassoftology. This is am Amendment one to an existing contract to add additional funding in support of the Ui unemployment insurance modernization project and go live support programme. ber 3 Department of Education with ACTducation Corp. this is amendment 10 to an existing contract to increases the contract by $17 million as a result of the last session AdE is now required to offer preHCT testing to Arkansas students in grade 9 and grade 10 beginning in this school year and so this amendment is to comply with that legislation so that will be offered free to all 9th and 10th grade students in the state. Number4 Department of Education with echler and associates. This is an original contract for due process hearings for investigations of violations of the individuals with disabilitiesducation Actumber6 or5 Department of Education with cartwheel this was pulled by the agency prior to the meeting ber 6 Department of finance and Administration with BdO Government Services. This is a new contract valued at $12.5 million for RHTp grant manage and compliance services. this is part of the new federal program for the rural healthal transformation and this company, this BdO company will manage these grants they will establish the process they will oversee the administration of them from beginning to end and mon's made available to state agencies 7 Department of finance and Administration Child Support nforcement with laboratory Corporation of America. this is an original contract for paternity testing for custodial and noncustodial parents of children by OCE. ber 8 Department of Health with ICF macro. This is an original special procurement contract for interviews for thehaal risk factor surveillance system and this is since this
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Speaker 93 29:13
is the first time this committee is seeing this we have attached the justification form for the special procurement in your packet it is the I call it Tiffanielew sheet of paper and this is also new this time several months ago the office of state procurement formerally they would offer a letter in response to these special procurement requests but through the permission of the chairs and through discussions they now provide their approval on the back side of that form you'll see a section where they can select approved as submitted or approved with revisions and there is still a section for the OSP director's signature so that's a little bit different than what you normally see.
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Speaker 48 30:10
Contract number 9 is withddHS division of agging
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Speaker 22 30:14
Adults and Behavioral Health Services with SHcervices this is for a contract providing highly qualified skilled nurse nursing at the Arkansas Health Centertracts number 10 and 11 are both with DHSdCFs for intensive in-home services for division of Children and Family Services clients and also I'll mention that number 11 is 9 million and it also includes transitional support for young adults services for DCfS clients. Number 12 DhSdivision of county operations with Fidelity National Information Services. This is $16.5 million original contract and this is to provide statewide electronic benefit transfer services system and this is for the delivery of tea and snap benefits to Arkansas citizens through atm machines and point of sale devices. Number 13 DhS division of county operations with Oren Burnett. This is for janitorial services at the Miller County DCO office.umber 14 Department of theilitary with the nette at work this is an original contract for the implementation of financial software it will provide greater auto autoization for the agency. Number 15 DTSs Division of Information Systems was with Karasoft Technology this is an original contract for the migration of the OCE systems to cloudbased systems.umber 16 Department of Veterans affairs with Quality Staffing. This is for medical staffing services.umber 17 also with DBA with highergy also for RnLPnc andA medical staffing services ber 18 department of Social Security Administration. This is with David Tessler. This is an original contract for medical consultants examinations, reviews and evaluations.umber 19 is with the Uva system with Brailsford and Dunleby Incorporated. This is an original4.1 million dollars contract and this is to assist theuA system on planning and strategy development initiatives and this is for evaluation and optimization of their existing and future property and assets. Number 20 is with youuvefayetteville with integrity 9 Llc. This is an original contract for a universitywide sponsorship strategy and collaboration with stakeholders to increase revenue and increase recruitment and retention and engagement of alumni. Number 21 with UA Fayetteetteville with Pfm financial advisors a new $2 million contract for financial planning, budget and strategic advice just overall financial advising Contracts number 22 and23 are both withualittlerock and
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Speaker 94 32:58
these are both for temporary staffing services for the university. that gives us over to page 15 under item E it's
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Speaker 22 33:09
the last out of state contract and this is with UCA with Couraa incorporated. This is a new original contract for campuswide career academy licensing career
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Speaker 48 33:20
academy campus alumni match and integration services and annual maintenance. these are the out of state contracts senator rice Number 12dhS I've got a question
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Chair Unverified 34:00
introduce yourselves and send a rash your Good morning I'm
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Senator Terry Rice Unverified 34:05
Mary Franklin, director of the division of county operations for Department of Human Services. and
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Speaker 123 34:12
Sarahcunningham with the office of procurement DHS Hey
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Senator Terry Rice Unverified 34:15
good morning. could you give us a little bit of what the changes
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Speaker 124 34:24
are on this yes sir this this contract is for EBTervices our previous
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Speaker 125 34:30
contract had come to end of life and is actually on a special procurement at this point. and we are transitioning to a new vendor with this contract with updated functionality and EBT is how we deliversnap benefits summer MBT benefits as well as the benefits for the tNorkpayce programme and in this contract we will also be transitioning from the traditional EBT mag stripe cards to chip cards which are much less susceptible to fraud and stolen benefits and we have some you know now we have summer EBT included in this contract because it's not a new program and we know we're going to continue it so and some additional fraud capabilities fraud prevention capabilities detection and prevention so those are the things that are new in this contract that we did not have in
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Senator Terry Rice Unverified 35:31
the previous contract. we are we still getting reports of fraud people having their benefits stolen we are but not nearly to the level that we were
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Speaker 125 35:43
back during the summer but there there are still benefits that are stolen and we do still hear from clients but it is not nearly at the level that it was but these changes that we'll be implementing with this contract will should help further protect our clients here in Arkansas
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Senator Terry Rice Unverified 36:04
from that type of theft it had been a while since I'd had contacts on that but it atchur Sunday somebody mentioned the family member that's recently hadang cancer patient right now and he'd had what little benefits he had stolen and just this is much needed I appreciate the update I thought they'd be good for people to hear and that's what I wanted to hear thank you thank you Mr Cha. any other questions on that item
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Speaker 29 36:37
saying none senator Bryant thank you Mr Chair. item number 8 Department of Health. I
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Senator Joshua Bryant Unverified 36:42
thought you I thought you were saying 9 whatever it is
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Speaker 35 37:10
du ce yourselves and you're recognized for
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Speaker 131 37:16
your questions Kasey Cochan, deputy director for programs Arkansas Department of Health Matt Gilmore department
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Senator Joshua Bryant Unverified 37:22
of healthalth thank you all for being here I'm over to your left just so we're we're losing some federal funding for this I guess the first question will be do we anticipate future budgets federal budgets having funding for this type of system?
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Matt Gilmore Unverified 37:41
I think it remains to be seen I think the direction the federal government's going is you know still in development and I think a lot of our you know the majority of our budget is federally funded but I think we're just taking it step by step and adjusting as we need to. OK so
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Senator Joshua Bryant Unverified 37:58
this is the last year of a seven year contract. Can you can you explain what's data the state has received from this contract to be able to to give us guidance on how to handle issues
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Matt Gilmore Unverified 38:12
I can speak to it generally but Miss Cochran beside
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Senator Breanne Davis Unverified 38:16
me can speak more to the details of it go ahead. Sure I'll be happy to. So historically there's about400,000 calls made annually to participants that voluntarily agreed to complete the survey it takes about 15 to20 minutes and that's with all 50 states and territories locally in Arkansas we do about5,200 calls per year to collect this information and it's utilized not only within the health department for program initiatives or tweaks to our current programs but also by partner agencies I think a
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Matt Gilmore Unverified 38:51
lot of it is used just for general surveys and data that we collect and to see where we are on different topics and issues as far as health primarily with with you know obesity or you know different habits and that sort of thing so it's it's helpful information to have just as a state to know where we stand on different rankings so
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Senator Joshua Bryant Unverified 39:14
what is the state so I think I received one of these calls probably about a month ago and it perpetually asked me if I'm eating my vegetables and how much household members smoke and how much alcohol do I consume. So once you get a a report that has that information like what is the department of healthal do with it? like you can't I mean do you do you increase public awareness of alcohol is bad for you or like think we use it for several different things
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Matt Gilmore Unverified 39:39
I think when we're putting out or we get federal funding or even state dollars for different grants and different types of health education activities or I mean it covers a as you if you went through the whole call you asked lots of different questions. So I think of all of those that data we get is used across the department for different programs but it does help guide us and and and point us in the right direction on hey this is becoming a bigger issue than we we thought it was in the past or maybe that work we've done there has helped here and we need to move and do something different but I'll let
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Senator Breanne Davis Unverified 40:15
Miss Cochran add to that if she wants. No I agree it's helps develop program initiatives or change program initiatives also if we see an increase in an area of issues in our state we can look for funding opportunities or ways to utilize or braid funding to address those issues OK and I'll finish my
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Senator Joshua Bryant Unverified 40:36
line of question I guess 11 request would be could you send to the chair what what one of these reports look like just pick any year that that the services provide dataset to the state and just send that report for this committee to look at Sure
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Speaker 29 40:55
be happy to don't be calling me on what I eat. I'm just glad y'all flipped the food pyramid so I don't know why you'd call Josh over
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Senator Matt McKee Unverified 41:07
me anyway so Senator Mcee thank you both for being here. Does the state of Arkansas fund any quality leering centers any daycares I didn't know if I didn't know if the quality leering centers had any branches in Arkansas. I'm not familiar with that not
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Chair Unverified 41:37
familiar with that thank you you guys are dismissed Representative Kavanaugh University of Arkansas yes sir contracts 1920 and21.
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Speaker 29 42:10
let's go ahead and introduce yourselves again
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Speaker 105 42:15
and you melissaicest University of Arkansas
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Clayton Hamilton Unverified 42:18
systems in Clayton Hamilton senior associate vice chancellor
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Representative Frances Cavenaugh Unverified 42:23
for campuservices UAfayetteville thank you on contracts 1920 and21, their consultants that we looks like we're using to do advisory on planning strategy development, financial planning, one that's going to implement and manage university swide sponsorship strategy and then you got another financial planning for budget and strategic advice. can you explain to me why we need consultants to do these things for us when you have a whole university full of people and I'll
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Speaker 61 42:58
speak to number 20 this is was completed through an RfP for a firm to to
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Clayton Hamilton Unverified 43:04
lead a sponsorship sales strategy for our campus so it's something very similar to what you might have heard with the razorback athletic program and they sell sponsorships to third parties to sponsor the program way to generate revenue to support the program the the the campus completed a study about a year ago just to look for similar opportunities on on campus and and we use the example of like a welcome back event to campus where we might have 8000 new students and show up to a welcome back event accompany might offer free pizzas to to those new students where there is a value to that opportunity to be in front of of that number of students on campus so we completed a study just to look at what those opportunities might look like across campus we don't have a sales team on campus to be able to get out and sell sponsorships of field sponsorships in the way our athletic program has so we look to an outside party completed this RfP and it is part set fee and part commissionba as far as the contract that is being proposed but we see this as a real revenue opportunity to
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Representative Frances Cavenaugh Unverified 44:15
support campus what is the projected revenue for this 996,000 well
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Clayton Hamilton Unverified 44:20
and that is a multiyear contract so year one we're projecting500,000 in sponsorship sales we think there's an opportunity to get up to5 million a year we'll never get to the point the athletic program is that's just a different market a lot of folks like to tap into but there is real revenue opportunity for this campuswide sponsorship program and
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Representative Frances Cavenaugh Unverified 44:40
there's no department in the atuA that can handle the sale of
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Clayton Hamilton Unverified 44:46
sponsorships not with the expertise that we need to get out and sell the sponsorships
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Representative Frances Cavenaugh Unverified 44:52
and fulfill in this manner OK thank you and what about 19 and2
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Speaker 155 44:59
I mean 21 uhson Cavanaugh on 19 and21. those are contracts that we did at the system office level we did our an RfQ for a potential vendors to assist us with financial consulting and financial advis ory services. these two contracts are akin to what I think you probably have become accustomed to here when when you hear about contracts that are considered on call contracts these contracts should be considered an on call now they're not like consulting s construction contracts like you would normally normally encounter with an oncall but they are for when we do need potential financial advising or specialty services as an example on excuse me as an example on number 19 the Brailsford and Dunlevy contract. this particular firm has a particular expertise with p3 projects and and as we look to determine how we can upgrade and renovate and maintain a number of buildings on our campuses throughout the system having someone with specialty p3 services we felt like was clearly advantageous and helpful to us we don't have anyone inhouse for instance and and to be able to do this and as an example, our financial wing that's at the system office that helps administer the financial services for our entire system consists of two people at the system office level our board in particular has asked us to look at alternatives for financing of projects they have also asked us to look at long term financial modeling for all of our campuses to make sure that we are maximizing the revenue that we have and to do things in a way that is most financially advantageous and frankly we need that expertise and that experience so this these costs will not be incurred unless we choose or we decide that we have a project that we would like to access. one of these particular vendors the second one can is right if I go down to 21 on number 21 this is pfm financial advisors we have utilized pFmm in the past as well. they are have quite significant expertise in the financial market. They also have a p3 expertise but Dunley andrrailsford and Dunlevy are really specialized in the p3 area but with respect to pFm we look to them for instance for assistance with bond issues when our board elects to issue bonds on beh al f of our campuses we are also in the process that the system office frankly early on in the process of looking at significant use of shared services across all of our campuses to see how we can be the most efficient we possibly can be and pia filmm has some expertise in assisting entities with shared services and so those are just two examples but it's part of the overall financial modeling in the long term financial long term financial services and I think outlook that our board of trustees has indicated that they would like us to engage in so both of these contracts are on calls in the sense that we may or may not spend this money unless we have a project for which the funds are needed or we feel like the expertise is
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Representative Frances Cavenaugh Unverified 48:32
needed so if these are basically on call. why are you doing them now if you don't have a need for them
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Speaker 155 48:39
I I don't know that we don't have a current need for them that would be something probably that our fin our CFfo would be better able to answer you know for you but we when we went out on an RfQ we went out looking for these types of services and just so you know so that there's no surprise we have a third contract it did not get complete before the time frame to bring this before you at this meeting and so we will have an additional contract at the
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Speaker 29 49:13
next meeting with Stteen all right thank you on 20 on 20 thewalton school of Business you could get 15 marketing students
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Speaker 114 49:25
and and give them a share and if you that's I mean you could buy a lot of ramen and
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Speaker 162 49:33
part of this senator Johnson would be hiring those students to complete internships to assist in this process but this
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Clayton Hamilton Unverified 49:38
company would lead it for us and and organize the strategy and and how we sell and fulfill but absolutely right opportunities to connect with students the dean can't do that and they I mean they're they're full time focus is teaching the students not necessarily getting out there and selling and
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Speaker 11 50:01
fulfilling the sponsorships that would be the student's job Anyway, I'm gonna stop p re s ent ative thought thank
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Representative DeAnn Vaught Unverified 50:11
you Mr Chair. M Melissa on number 19 it says 100% state usuallysu y'all say like it divides it down to where the money comes from. can you tell me what you mean there by 100% state
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Speaker 105 50:28
I I am, I am making an assumptionpresentativeaughtugt but when we usually when
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Speaker 155 50:33
we reference 1% state that would be a general revenue that that the institution
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Speaker 16 50:43
or the entity receives thank
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Speaker 29 50:48
you ma'am Any other questions seeing none take a motion to review out of state contracts motion by Representative Ladydyman second by Senator Hester all in favor sayy aye all
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Speaker 12 51:03
opposed like son thank you members let's go on to the
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Speaker 22 51:08
instate contracts thank you Mrir. Item E3, these are the last sections of contracts for your review. These are instate contracts ber one is with Department of Corrections division of Community Corrections. This is an original contract for supervision housing and evidencebased programs for transitional housing for eligible recipients.umber 2, Department of Health, Arkansas State Board of nursing with Richard Keith ibb. This is for investigation services for complaints and questions asked at the board of nursing on licensed nurses.umber3 DHSDCFS with Aissa Health. This is an original contract. This is providing enhanced board payment for children in foster care and in a community reintegration program.umber4 DHSdCFS with Arkansas Baptist Children's. This is a new original contract for inhome services fordCFS clients in specified service areas. Number5 DHSDCFS with Arkansas Children's Hospital. This is amendment two to an existing contract it adds4.3 million to this contract and it is for the Arkansas healthalth and well-beinggramme for intervention of child welfare involved families.umber6 DHSdCFS with immerse Arkansas. This is an original contract for500,000 dollars. This is for transition support services for youth who are aging out of the foster care system. ber 7 DHS DCfS with Piney Ridge Treatment Center. This is an original contract for enhanced board payment for children in foster care and in community reintegration programs number 8, DHSdCfS with Southern Christian Home incorporated. This is amendment one to an existing contract and this is for foster care services and family homes settings.umber 9 and number 10 are both with DHSdivision of county operations both with OJ'service to this is for janitorial services and theirependence County and Mississippi County local offices on item E page19 that takes us to number 11 with Department of Public Safety division of emergency Management with Motorola Solutions. This is an original contract for channel expansion services for the Ain system this is to provide adam with additional capacity and enhanced functionality at 10 sites. Number 12, Department of Veterans affairs with one of a kind in homeme care and medical. This is amendment3 to an existing contract for temporary nurse staffing in the Fayetteville and North LittleRocketerans' homes. Also contracts number 13 through 16. these are all with Department of Veterans affairs all with various vendors for the same reason as I just mentioned temporary nursing staffing at their sites in Fayetteville and North LittleRock Number 17 that takes us over to item p page21. This is withddSsA and Sttephen David Snyder. This is an original contract for medical consultant examinations reviews and evaluations for medical records of casesumber 18 with Yve Pulaski tech with Comfort Systems USA this is amendment one to an existing contract for Hvac services on call and as needed and number 19 with UAMs with theeststerroup. This is an original contract for $270,000 and this vendor will provide grants consulting services for UAMS. These would be instate
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Representative Frances Cavenaugh Unverified 54:39
contracts madam chairir. thank you Katie. Any questions uhpresentativelahdyman, who's your question for? Well, my question is for
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Representative Jack Ladyman Unverified 54:46
procurement it's a general question so for somebody else got a specific item that you can put me at the bottom of the there's nobody else in the queue all right, I'll
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Speaker 172 54:57
take it. Well wait just a second. Represented beatty do you have a question for hold on a secondpresentative ladyman Representative Beatty who's your question for?orrections. All right.
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Representative Frances Cavenaugh Unverified 55:10
Representativeladyman, I'm gonna take you out if you'll get back in the queue. I can have someone from corrections come down please. and if you'll please introduce yourself for the record and then you can continue representative beatty jim
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Speaker 177 55:30
Cheek director of divisionunity correction Chad Brown CFO Department oforre
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Representative Howard M. Beaty, Jr. Unverified 55:42
Thank you madam chairir. I I guess my question is that maybe give us a little more information on this renewed lifefeenter and exactly what that center services that that center provides they provide
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Speaker 176 55:55
reentry services I actually talked to our guy this morning because it says Bismarck but I think that's the renewedent which is hidden Creek and Littleroy. that's that's what
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Representative Howard M. Beaty, Jr. Unverified 56:03
I was that's that you you got to my point I would just seeing exactly what was going on there can you give us an update on on that system and what what what we're doing there
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Speaker 176 56:14
well we're still hou housing offenders actually we're down on numbers and we're we're trying to get our numbers up actually it's worse today and it's been all year but it's we've got39 vacant beds throughout the system of the 204 beds that were allotted based on the ones that we can screen that are available our numbers are getting smaller so we're trying to figure out how we're going to
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Speaker 186 56:35
retool this to actually utilize those beds I I guess
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Representative Howard M. Beaty, Jr. Unverified 56:39
my my problem is we've been talking about how we're going to reutilize and and utilize the space and keep these beds full but we seem to continue to have a problem there yes
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Speaker 186 56:49
sir absolutely I get a report every single morning from Mrel as to what we're doing I
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Speaker 176 56:54
think we had 14 that were eligible yesterday that went to the when they went to the border correction I mean the poster and transfer board 7 of them were denied one of them had warnts that's not eligible and one of them had a disciplinary so now we're down to what5 that's actually eligible and once we screen them we're not saying all those are gonna actually gonna be eligible to go so we had5 at hidden Creek that actually transitioned to stage four of the program which they moved out of hidden Creek into the community so it's kind of a catch up game back and forth so gaining
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Speaker 186 57:28
on the front end is is getting kind of
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Representative Howard M. Beaty, Jr. Unverified 57:30
difficult well I'll I'll just say I don't have a problem with vacant beds being for folks that are transitioning out and returning to be a member of productive member of society I do have a problem when we've got vacant beds and corrections can't get folks in there on this program that works and I understand Representative
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Speaker 176 57:47
Beatty but they had to meet a certain criteria I mean these are inmates from the department of correction that have to meet a certain criteria to go to these facilities because they have not actually met their TEP date to get out on probation or pro so the poster and transfer board does screen them to get to this point but then again we have to make sure that these people are going to comply with the rules of facility and not walk off because at that point then they become escapees and I don't want us not to do our due diligence on the front end to make sure that they don't go out and hurt a citizen of the state of Arkansas if we're not screening them properly on the
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Representative Howard M. Beaty, Jr. Unverified 58:22
front end well I I I guess I'll I'll leave this alone because we're gonna talk about this a lot more until you guys can take care of of vacant beds and get folks in this program but I I'm gonna tell you that it's an important program and it works and my phone rings all the time with with vacancies and folks not being in there and I know that we have a population that would qualify for this so every time I see a reentry program on here you're going to hear from me. I'm gonna ask about it I'm gonna ask what we've got in vacancy it's a priority we work too hard on recidivism in the state with the overcrowding we have now this program works and we need to utilize it so just know that that's what's going to happen and the heat's gonna be turned up on it so thank you yes sir I understand thank you sir questions
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Speaker 81 59:12
p re s ent ative la dy man thank you Mr Chairman.
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Representative Jack Ladyman Unverified 59:20
I guess this question would be for procurement if there's anybody here from
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Speaker 35 59:33
state procurement Introduce yourself and your recognized representative ladyman good
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Speaker 193 59:36
morningjessica Patterson state procurement director thank you for
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Representative Jack Ladyman Unverified 59:39
being here and I don't know maybedF and
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Clayton Hamilton Unverified 59:41
they may have to answer this but when I'm looking at the out of state contracts and the instate contracts and I know we'veaught brought this up before but I did some quick math here so it might be an estimate I would say so we had we reviewed 24 contracts out of state contracts worth roughly70793,000 dollars. we reviewed 19 instate contracts with a rough amount of $8,291,000 and my question is you know are are we giving instate companies or people that are buying for these jobs are we giving them an advantage because they're in state and the reason I ask that and I know some of these contracts would not be eligible for sales tax but if I just calculate the sales tax on70 million dollars it's about5.6 million dollars. our state sales tax so we're sending a lot of money across the state lines and I understand that these are high tech, high training companies but do we give I mean we need to get some of these people to move to Arkansas so we can get the tax dollars that tax or somebody else is getting so are we giving in state entities any advantages if we're looking at just the lowest cost we may be losing money here. do you understand my question? I do understand your question.
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Speaker 192 1:01:20
under procurement law currently there's no method to give preference to an instate vendor
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Speaker 193 1:01:26
over an out of state vendor. However, just because some of these vendors are listed as being out of state vendors or contractors doesn't rem doesn't mean that they don't have local presence so it could be a national company that has some local presence but they are not so they might have instate employees that are located in the state but they're they are a national company so they are an out of state company but their
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Representative Jack Ladyman Unverified 1:01:50
corporate headquarters are still out of state because that's the headquarters would be out of well I think that's something
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Clayton Hamilton Unverified 1:01:59
that we really need to look into to keep money in the state sending money across the state line doesn't help us that much
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Speaker 12 1:02:12
so thank you for your answer. Is
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Speaker 29 1:02:14
there any question any other questions on If not accept a motion to review all the instate contracts motion by Representativeladyman seconded by Senator Hester all in favor sayy aye
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Speaker 81 1:02:29
all opposed like sign thank you members let's go to the reports and other business handle all
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Speaker 22 1:02:46
that at one time thank you Mr Chair. The last couple of items for your information today are the reports and communications in one item under other business you'll see under item F reports and communications. there are two regular reports that you all see each month. One is the contract amendments without a material change. The second is executed minor contracts and finally I'll just mention for the committee's information yesterday an emergency action report was completed for the review subcommittee. This was submitted by the department of Commerce and DFfa and it just made two revisions to the discretionary grants that you all approved last month for the advocacy centers. these are the reports for the committee's information, Mr. Chair. any questions?th anything else
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Speaker 29 1:03:30
to come before the committee we will try to keep our schedule with after afternoon meeting and and not not do the morning meeting thank you members and we're adjourned
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Agenda

A. Call to Order - Comments from Chairs

1:57

B. Methods of Finance

6:51

C. General Contractors Construction Projects exceeding Five Million Dollars

17:33

D. Discretionary Grants

19:41

E. Services Contracts for Legislative Review/RFQ Approvals

20:56

F. Reports and Communications

1:02:45

G. Other Business

1:03:06

H. Adjournment

1:03:40

Speakers

Speaker 8
1 segment
Speaker 11
2 segments
Speaker 12
7 segments
Speaker 20
2 segments
Speaker 22
38 segments
Senator Terry Rice Unverified
8 segments
Chair Unverified
8 segments
Speaker 29
20 segments
Senator Joshua Bryant Unverified
17 segments
Representative John P. Carr Unverified
5 segments
Speaker 43
1 segment
Clayton Hamilton Unverified
33 segments
Representative Jack Ladyman Unverified
11 segments
Speaker 35
3 segments
Speaker 61
3 segments
Speaker 64
1 segment
Speaker 67
1 segment
Speaker 71
3 segments
Speaker 93
3 segments
Speaker 94
3 segments
Speaker 48
4 segments
Speaker 105
3 segments
Speaker 106
5 segments
Speaker 107
1 segment
Speaker 123
1 segment
Speaker 124
1 segment
Speaker 125
3 segments
Speaker 131
1 segment
Matt Gilmore Unverified
7 segments
Senator Breanne Davis Unverified
3 segments
Senator Matt McKee Unverified
2 segments
Representative Frances Cavenaugh Unverified
9 segments
Speaker 155
11 segments
Speaker 114
1 segment
Speaker 162
1 segment
Representative DeAnn Vaught Unverified
1 segment
Speaker 16
1 segment
Speaker 172
1 segment
Speaker 177
1 segment
Representative Howard M. Beaty, Jr. Unverified
7 segments
Speaker 176
6 segments
Speaker 186
3 segments
Speaker 81
2 segments
Speaker 193
2 segments
Speaker 192
1 segment