Procurement’s Role in Business Continuity Planning

1. Procurement’s Role in Business Continuity Planning By Gregory Maynard - SLCSD Contributors: Nora Laudermilk – West Palm Beach, FL George Zsidisin – Michigan State University Robert Combs – Chandler, Arizona & Others

2. Presentation Goals: • Provide A Background • Provide Ideas • Cause you to THINK

3. What is the business of your organization? • City, County or State • Public Services • Public Safety • Public School, College or University • Education • Student/Faculty Safety

4. What is your organization doing to insure that it will be around to provide these services? • Planning

5. Business Continuity Planning • What is it? • “It is having the processes, procedures, escalation paths and backup support plans in place to ensure that the organization continues to operate should an interruption and/or crisis occur.”

6. Critical Elements of Continuity Planning • Top management commitment • Ongoing Preparedness • Risk Assessment • Speed and Responsiveness • Other Considerations

7. Top Management Commitment • Directives communicated to employees • Commitment of Resources • Assigned Accountability and Authority • Established Measurement Metrics • Dissemination of Information • Adopting Policies and Procedures

8. Ongoing Preparedness • Mandatory Training • Briefings • Drills • Reviews and Update of plans • Situations change • People come and go

9. Risk Management • Examine Likelihood & Potential • Manmade: Terrorism, Power Outages, Chemical Hazards • Natural: Floods, Tornadoes, Draughts, Earthquakes, Winter Blizzards • Health: Avian Flu, Anthrax, SARS • Infrastructures: Buildings and Locations • Suppliers: Their ability to survive and perform • Create a matrix

10. Risk Matrix 8 9 5 10 7 7 9 4 6 8 5 3 6 7 8 2 4 7 5 6 Likelihood 3 4 1 2 5 Probability

11. Speed and Responsiveness • Separate Plans • Emergency Response • Disaster Recovery • Flexible Responses • Agile Contracting • Simplified Procedures • Mutual Agreements of Understanding • FAR

12. Other Considerations • Employee treatment • Manual Operations vs. Automated • Financial and Legal Impacts • Political Impacts

13. What should be in it? • Chain of Succession • Pre-delegation of Emergency Authorities • Emergency Action Steps • Designation of Emergency Operating Centers (EOCs) • Designation of Alternate Work Sites and EOCs • Safeguarding Essential Records

14. Contents Continued • Alert and Warning Procedures • Emergency Public Information • Protection of Resources, Facilities and Personnel • Training and Exercises • Recovery Priorities • Web Site: www.fema.gov/plan/ehp/response.shtm

15. Continuity Planning Process Review • Step 1 – Analyze Risk • Identify • Do Impact Studies • Develop Mitigation Strategies • Step 2 – Prepare Plans and Train • Step 3 – Test the Plans • Step 4 – Evaluate and Modify • Step 5 – Repeat the Process

16. Any Questions ? Freeway Crash & Fire 5/07

17. What is our role in continuity planning? • That Depends! • On What Step? • Planning(Mitigation & Preparedness) • Response • Recovery

18. PLANNING - HAVE YOUR OWN PLAN –. • Everyone should be involved • Talk about it – • Practice it – • Remember, there is a reason we should have earthquake & fire drills. • When the water is rising, is not the time to look for a sandbag vendor.

19. Items To Be Addressed In Planning • Workers/Employees and Their Families • Facilities and Data • Status and Backup • Continuity of Business • Inventory of Building Contents • Damage • Replacement • Customers and Suppliers • Disaster - Public Information

20. Disaster Manual • Procedures • Emergency Employee Information • Agreements with Other Purchasing Agencies: MOU & (PREP) • Procurement Card Information, Generic Vouchers • Warehouse Listing • Vendor Listing • Vendor Emergency Information • Contracts and Price Agreements • FEMA Documents • State Resources • Purchase Order Log • Maps by City & County

21. Other Tools • Contracts • Disaster Debris Removal & Disposal Services • Heavy Equipment Rental • Mold Remediation (Industrial Hygiene Services) • Generator & Other Equipment Rentals • Roof Repair and Replacement • General Construction Building Repair • Ice (in Summer); Blankets (in Winter) • Rental of Portable Toilets • Repair and Replacement of Fencing

22. Other Contracts • Optional Contracts • Canal Cleaning • Food Catering • Tent and Chair Rental • Rental of Roll Off Trash Containers • Warehouse stock of safety supplies • Bottled Water • Prescriptions • Transportation – bus, taxi, & other • Laundry supplies or services • Mobile phones or phone cards • Hygiene kits • Plastic wrap

23. Other Tools • Special set of purchase orders • P805600 • E800001 • Listing and phones of key contractors and vendors • Equipment rental, food, water, etc. • Printout of all vendors by commodity • List of essential personnel and cell phones • Your Staff • Key Agency Staff • Key contracts, notify (time permitting) • Debris, call and place on alert • Monitoring, generators, equipment rental, etc.

24. More Things to Consider • MOU – with other agencies local & distant • Rent refrigerated trucks • Have 2 days before storm and fill to capacity with bagged ice and food, time permitting • Final warehouse/stock inventory • Counts and Dollar Amount • Listing of other Purchasing Agencies • NIGP - Utah Chapter Directory • EdPAC Directory • Contracts and Price Agreements • Copies in Binder • Pre-printed Vouchers to give to displaced persons • Inventories of what is in your building • Copies in Binder • For Insurance and replacement purposes • Personal items too!

25. Communication Plan • Radios • COWs • Cell sites On Wheels • Three mile radius • Place strategically • Single most important item that will fail

26. PO’s, Procurement Cards & Vouchers • Manual P O system • Vouchers • Medical needs • Transportation needs • Procurement Cards (P-Cards) • Secured until disaster or used daily • Raise limits • Keep list at home or a secure place • Bank numbers

27. Training Exercises • You must practice • Training Exercises will bring out your shortcomings and help you gain confidence. • The Process Outline

28. The Exercise Development Process • ORIENTATION: Key players review plans & procedures, ask what if. • DRILL – Test equipment & personnel • TABLETOP: Key players react to a scenario – group problem solving • FUNCTIONAL – Evaluate a function & Measure resource adequacy • FULL-SCALE – large scale, top to bottom use of equipment & personnel, multiple agencies involved.

29. EVALUATION • Review what worked and what did not. • Make corrections. • Prepare for the next exercise.

30. Response - • Stay Calm • Check to see that you and others are ok – help those needing assistance. • If able, put your plan into effect. • Check your phones • Contact suppliers • Respond to requests

31. FEMA GUIDELINES • Procurement must follow FEMA guidelines in order to ensure reimbursement from the federal government by: • Retaining original receipts and documentation • Making no contract or purchase contingent upon federal reimbursement • Making emergency p.o. or contracts “site specific” • Rent or lease equipment instead of buying • Document in detail all oral requests • Require that all bid, performance and payment bonds are issued

32. FEMA GUIDELINES Continued • Encouraging contractors to support local economy by including a provision that requires contractors to use materials and supplies and hire laborers to the extent possible within the disaster area. • Utilizing contracts for removal of debris or wreckage on fixed price or unit price Know the Rules!

33. FEMA CATEGORIES • Category A – Debris Removal • Category B – Emergency Protective Measures • Category C – Road Systems • Category D – Water Control Facilities • Category E – Building and Equipment • Category F – Utilities • Category G – Parks, Recreational, and Other

34. Disaster Related Charges • Was it damaged as a direct result of the disaster? • Is this needed as a direct result of the disaster? • Was the health, safety or welfare of people at risk? • What was damaged? Item, asset #, serial number, etc. • When was it damaged? • Why is this needed/ Power shortage, flooding, etc. • Example: • Incomplete: Floodwaters washed away a 20 foot section of road embankment. • Complete: Floodwaters washed away a 20’L x 5’W x 10’H section of earthen embankment along a secondary two-lane asphalt paved road, resulting in travel being restricted to one lane.

35. RECOVERY • Any activity to return vital life-support systems to minimum operating standards and such activity designed to return life to normal or improved levels: • Crisis Counseling • Debris Removal • Reconstruction • Loans and Grants • Rebuilding

36. DOCUMENT DOCUMENT DOCUMENT Before, During and After

37. Review

38. Decisions Remember that the most important decisions you will make with regard to an emergency are the decisions that you make before it happens. Thank You