EXECUTIVE DIRECTIVE No. 2007-10

TO:  Department Directors and Autonomous Agency Heads
FROM:  Governor Jennifer M. Granholm
DATE:  March 29, 2007
SUBJECT: Special Monitor for State Purchasing

A. DESIGNATION OF SPECIAL MONITOR FOR STATE PURCHASING

To help assure that state departments and agencies continue to identify and implement administrative efficiencies and economies relating to the purchase of goods and services, the Director of the Department of Management and Budget and I have designated Ed Dore, Deputy Director of the Department of Management and Budget, as the Special Monitor for State Purchasing.  Mr. Dore will be assisting Director Lisa Webb Sharpe, the State Administrative Board, and the Governor in assuring compliance with requirements relating to the purchase of goods and services under The Management and Budget Act, 1984 PA 431, MCL 18.1101 to 18.1594, and other applicable laws, directives, and requirements.  The Special Monitor is charged with identifying additional budgetary savings and administrative efficiencies and economies relating to the purchase of goods and services by departments and agencies.

B. DUTIES OF SPECIAL MONITOR FOR STATE PURCHASING

The Special Monitor for State Purchasing will do all of the following:

1. Advise and assist the Governor, the State Administrative Board, and the Director of the Department of Management and Budget on matters relating to the purchase of goods and services, the supervision of state purchasing expenditures, and related administrative efficiencies and budgetary savings.

2. Assist the Director of the Department of Management and Budget in assuring compliance with The Management and Budget Act, 1984 PA 431, MCL 18.1101 to 18.1594, other applicable laws, executive directives, rules, and administrative procedures relating to the purchase of goods and services.

3. Assist the State Administrative Board in exercising general supervisory control over the functions and activities of all administrative departments, boards, commissioners, and officers of the state, and of all state institutions, as required under Section 3 of 1921 PA 2, MCL 17.3, on matters relating to the purchase of goods and services.

4. Review all items authorizing the purchase of goods and services prior to submission to the State Administrative Board for approval and recommend further action.

5. Recommend to the Governor and the Director of the Department of Management and Budget measures to monitor and restrict purchasing by departments and agencies using delegated purchasing authority.

6. Recommend to the Governor and the Director of the Department of Management and Budget measures to monitor and restrict the purchase of goods and services using a procurement card issued pursuant to procedures established under Section 0510.03 of The Administrative Guide to State Government.

7. Recommend to the Governor and the Director of the Department of Management and Budget measures to monitor and restrict the purchase of goods and services using direct vouchers and employee reimbursements.

8. Recommend to the Governor and the Director of the Department of Management and Budget the imposition of limitations or restrictions on the use of a state contract for the purchase of goods or services.

9. Recommend to the Governor and the Director of the Department of Management and Budget the cancellation of a state contract for the purchase of goods or services or halting work under a contract.

10. Recommend to the Governor and the Director of the Department of Management and Budget the re-bidding of an existing state contract for the purchase of goods or services.

11. Recommend to the Governor and the Director of the Department of Management and Budget that work currently performed by a state contractor instead be performed by a state employee when cost savings and administrative efficiencies can be achieved.

12. Identify contracts set to expire with a significant potential fiscal impact to this state and provide recommendations related to those contracts to the Director of the Department of Management and Budget and the Governor..

13. Perform any other tasks related to the purchase of goods or services as requested by the Director of the Department and Management and Budget or the Chairperson of the State Administrative Board.

14. Do any and all other things necessary or convenient to achieve the objectives and purposes of this Directive.

C. ENFORCEMENT

1. Upon direction from the Governor, the State Administrative Board, or the Director of Management and Budget, the Special Monitor for State Purchasing may require a department or agency to first obtain approval from the Special Monitor for State Purchasing before proceeding with a purchase of goods or services or execution of a contract or contract amendment.

2. The Special Monitor for State Purchasing may recommend that the Director of the Department of Management and Budget issue, alter, or rescind administrative or procedural directives related to the purchase of goods and services as authorized under Section 131 of The Management and Budget Act, 1984 PA 431, MCL 18.1131.

3. The Special Monitor for State Purchasing may transact all necessary business with executive branch officials and employees and may require information in writing from all executive branch officials and employees.  Departments and agencies are directed to cooperate fully with the activities of the Special Monitor.

4. The Special Monitor for State Purchasing may recommend that the Director of the Department of Management and Budget rescind delegated purchasing authority, the authority to purchase using direct vouchers, or suspend the use of procurement cards.

5. Violations of the requirements of this Directive shall be reported to the Director of the Department of Management and Budget and to the Chairperson of the State Administrative Board.

D. MISCELLANEOUS

1. The Director of the Department of Management and Budget may delegate responsibilities and duties to the Special Monitor for State Purchasing consistent with The Management and Budget Act, 1984 PA 431, MCL 18.1101 to 18.1594, and other applicable law.

2. A copy of this Directive shall be transmitted to the members of the State Administrative Board.

3. This Directive is effective immediately and remains in effect through September 30, 2007.

I extend my sincere appreciation for your assistance and the continued hard work of state employees as we respond to the state's difficult fiscal condition.
______________________________
JENNIFER M. GRANHOLM
GOVERNOR