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

Presentation Goals:

Provide A Background

Provide Ideas

Cause you to THINK

What is the business of your organization?

City, County or StatePublic Services

Public Safety

Public School, College or UniversityEducation

Student/Faculty Safety

What is your organization doing to insure that it will be around to

provide these services?

Planning

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.”

Critical Elements of Continuity Planning

Top management commitment

Ongoing Preparedness

Risk Assessment

Speed and Responsiveness

Other Considerations

Top Management Commitment

Directives communicated to employees

Commitment of Resources

Assigned Accountability and Authority

Established Measurement Metrics

Dissemination of Information

Adopting Policies and Procedures

Ongoing Preparedness

Mandatory TrainingBriefings

Drills

Reviews and Update of plansSituations change

People come and go

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

Risk Matrix

Probability

Lik

elih

ood

1 2 3 4 5

2

3

4

5

4

6

8

10

5

6

7

5 6 7

7

8

7 8

9

9

Speed and Responsiveness

Separate PlansEmergency Response

Disaster Recovery

Flexible ResponsesAgile Contracting

Simplified Procedures

Mutual Agreements of Understanding

FAR

Other Considerations

Employee treatment

Manual Operations vs. Automated

Financial and Legal Impacts

Political Impacts

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

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

Continuity Planning Process Review

Step 1 – Analyze RiskIdentify

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

Any Questions ?

Freeway Crash & Fire 5/07

What is our role in continuity planning?

That Depends!

On What Step?Planning(Mitigation & Preparedness)

Response

Recovery

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.

Items To Be Addressed In Planning

Workers/Employees and Their Families

Facilities and DataStatus and Backup

Continuity of Business

Inventory of Building ContentsDamage

Replacement

Customers and Suppliers

Disaster - Public Information

Disaster Manual1. Procedures2. Emergency Employee Information3. Agreements with Other Purchasing Agencies:

MOU & (PREP)4. Procurement Card Information, Generic Vouchers5. Warehouse Listing6. Vendor Listing7. Vendor Emergency Information8. Contracts and Price Agreements9. FEMA Documents10. State Resources11. Purchase Order Log12. Maps by City & County

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

Other ContractsOptional 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

Other Tools

Special set of purchase ordersP805600E800001

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 phonesYour StaffKey Agency Staff

Key contracts, notify (time permitting)Debris, call and place on alertMonitoring, generators, equipment rental, etc.

More Things to ConsiderMOU – with other agencies local & distantRent refrigerated trucks

Have 2 days before storm and fill to capacity with bagged ice and food, time permitting

Final warehouse/stock inventoryCounts and Dollar Amount

Listing of other Purchasing AgenciesNIGP - Utah Chapter Directory EdPAC Directory

Contracts and Price AgreementsCopies in Binder

Pre-printed Vouchers to give to displaced personsInventories of what is in your building

Copies in Binder For Insurance and replacement purposesPersonal items too!

Communication PlanRadios

COWsCell sites On Wheels

Three mile radius

Place strategically

Single most important item that will fail

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

Training Exercises

You must practice

Training Exercises will bring out your shortcomings and help you gain confidence.

The Process Outline

The Exercise Development Process

ORIENTATION: Key players review plans & procedures, ask what if.DRILL – Test equipment & personnelTABLETOP: Key players react to a scenario – group problem solvingFUNCTIONAL – Evaluate a function & Measure resource adequacyFULL-SCALE – large scale, top to bottom use of equipment & personnel, multiple agencies involved.

EVALUATION

Review what worked and what did not.

Make corrections.

Prepare for the next exercise.

Plan

Exercise

Evaluate

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

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

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!

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

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.

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

DOCUMENT

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Before, During and After

Review

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