State Agency with 3,000 Employees Selects Omnicom Enterprise
Contract Management Software to Manage Complex Contract Issues
Background
A number of major contract-related challenges prompted a state-wide Commission on Environmental Quality to look into obtaining new contract management software. The agency, which has 3,000 employees, investigated a number of software solutions, including a system used by the state’s health and human services agency. Although they could have obtained the health and human services system at no cost, after thoroughly reviewing their options, the Commission elected to go with Omniware’s Omnicom enterprise contract management software.
Once fully implemented, the State Commission on Environmental Quality will utilize Omnicom to manage several thousand contracts. Ultimately, 180 contracts specialists, plus approximately 50 management individuals who review contract requests, will utilize Omnicom software.
Challenges Faced/Solution Found
According to the Project Manager at the State Commission on Environmental Quality: “We faced a number of challenges that prompted us to look into obtaining a contract management system. One of our primary needs was a place to build and maintain contract information. We didn’t have anywhere to accumulate contract data before something was sent to a department. Another issue was work flow. We were hoping to utilize a system to help move information around the agency electronically.”
“Our biggest challenge was to make sure we passed our audits. We failed two state audits because we didn’t have financial control over what we were trying to purchase. Basically, we couldn’t prove that we actually received what we contracted for.Let me give you an example. Suppose I order ten computers. Then, before we receive the ten, we put in a separate requisition to purchase six additional computers. Some time later we receive eight computers. Did we receive eight computers out of the first order of ten, or two of the first ten and six from the second order? This is important to know because the two orders might have different pricing. That’s why we failed the audits. We couldn’t track this type of activity properly because we didn’t have enough internal controls over what we requested and what we received. The auditors didn’t find any misappropriation of funds. We just couldn’t prove we were getting what we asked for.”
“Another issue was that we have multiple data entry points.There was no tracking number associated with all the different systems that were used so a requisition one person had, and a req I had, might have been for the same thing, and it might not. No one really knew.”
“Prior to obtaining Omnicom, we didn’t have an enterprise contract management system and the agency wasn’t using the tracking tool we did have. Requests for commodities and services in our purchasing system were driven by paper forms that people would fill out and which would acompany those requests. A different person would receive the product than the person who ordered it. A third person would pay for it. There was no central place for groups and individuals to go and look at information. You’d get your pink copy. I’d get the yellow copy. The next person got the green copy. Everyone was running around with boxes of copies of forms. If you got the right color of your copy you they felt like that was enough control. Obviously it wasn’t.”
The State Commission on Environmental Quality is pleased with its selection of Omnicom software and confident Omnicom will help address their complex contract challenges and ensure they pass their audits. As the Commission’s Project Manager says: “We are already getting the benefits from Omnicom we were hoping for.”
