Report 2016-104 Recommendation 9 Responses
Report 2016-104: California Public Utilities Commission: It Should Reform Its Rules to Increase Transparency and Accountability, and Its Contracting Practices Do Not Align With Requirements or Best Practices (Release Date: September 2016)
Recommendation #9 To: Public Utilities Commission
To ensure that its contracting practices align with state requirements and best practices, the CPUC should implement a supervisory review by the contracts office manager of proposed contracts and contract amendments to occur before contracts and amendments go to vendors for signature.
1-Year Agency Response
The contracts office has implemented the contract request form for completeness upon receipt. This covers the following: dates, term, description of work, justification, proposed method of acquisition and works with the Project Manager to complete packaged before contract is assigned. Contract Manager reviews the package prior to contractor signature, submittal to Executive Directors and Deputy Executive Director as outlined on the compliance form.
- Completion Date: July 2017
- Response Date: September 2017
California State Auditor's Assessment of 1-Year Status: Fully Implemented
6-Month Agency Response
The contracts office has implemented the contract request form for completeness upon receipt. This covers the following: dates, term, description of work, justification, proposed method of acquisition and works with the Project Manager to complete packaged before contract is assigned.
Contract Manager reviews the package prior to contractor signature
Contract Manager review the package prior to submittal to Executive Director and Deputy Executive Director.
These steps are outlined on the Non-IT Personal and Consultant Service Contract Review and Compliance Form.
- Completion Date: February 2017
- Response Date: March 2017
California State Auditor's Assessment of 6-Month Status: Pending
The CPUC has not demonstrated that it is completing supervisory review of contracts before sending them to vendors for signatures. It did not provide sufficient documentation to support its claims that the contracts office manager is performing these reviews.
- Auditee did not substantiate its claim of full implementation
60-Day Agency Response
The contracts manager and prior branch supervisors have been reviewing contracts prior to submission for approval by Deputy Executive Director review.
- Completion Date: May 2016
- Response Date: November 2016
California State Auditor's Assessment of 60-Day Status: Pending
The CPUC states that its contracts manager is reviewing contracts prior to executive approval. However, this process is not the same as our recommendation, which states that the CPUC should implement a supervisory review of contracts and contract amendments before they go to a vendor for signature. We reviewed examples of recent CPUC contracts and contract amendments and found that the supervisory review the CPUC conducts is not occurring before the vendor signs the contract or contract amendment agreement. Therefore, this recommendation is still pending implementation.
- Auditee did not substantiate its claim of full implementation
- Auditee did not address all aspects of the recommendation
All Recommendations in 2016-104
Agency responses received are posted verbatim.