Delegation of Authority

The Chief Procurement Officer (Director of Strategic Business Operations) as delegated by the Governing Board, through the Chancellor and the Vice Chancellor for Business Services, shall be responsible for timely review, action, and reporting on all privatization proposals. Personnel-related actions due to privatization efforts are separate from procurement activities.

A report shall be filed annually with the Audit and Finance Committee by the Chief Procurement Officer outlining progress in the areas of privatization. Numbers of formal inquiries as well as any records of any appeals and their outcomes shall also be reported.

This annual report shall be provided to other agencies such as the Private Enterprise Review Board, if so requested.

Opportunities for privatization can be identified by the public, private sector business, District employees, the Governing Board, and other organizations such as the Private Enterprise Review Board, (PERB).

Individuals or businesses wishing to make an initial privatization proposal (petition of interest), will not be supplied information that would later provide an unfair advantage over other proposers during a competitive process.

All privatization proposals from individuals or businesses shall be forwarded to the Chief Procurement Officer for initial review for clarity, completeness.

Proposals shall be forwarded to appropriate department/division/college representatives for initial joint review and recommendations in conjunction with the Chief Procurement Officer.

If the proposal is rejected, the Chief Procurement Officer shall notify the proposer of the decision and supporting rationale and shall provide an outline of the appeal process, if desired.

If it is determined that the proposal has merit, the concept will be further developed into a Bid or Request for Proposal document by the department/division/college representative in conjunction with the Chief Procurement Officer and others.

The bid or Request for Proposal will be designed to be competitively bid following all District Purchasing guidelines and allowing maximum competition.

Proposals for privatization will be evaluated on a number of factors including cost. Additional factors will depend upon the service or goods proposed, but may include:

1. Quality of Service - the effect privatization will have on the quality of service.

2. Cost Efficiency - expected cost of service, including District oversight of the contract, assuming no decrease in quality.

3. Market Strength - availability of private providers interested in providing the service.

4. Risk to the District - degree which privatization increases District exposure to hazards and risk.

5. Legal Barriers - the effect of laws on privatization decisions.

6. Control - ability of the District to oversee and monitor the service once it has been privatized.

7. Resources - efficient and effective use of existing District assets.

8. Impact on Employees - the effect privatization will have on both full time and student employees of the District.

9. Political Resistance - opposition from the public, the provider of the service, interest groups, or elected officials.

1. The outcome of a privatization review can be appealed by any proposer.

2. The request for appeal shall be first submitted to the Chief Procurement Officer. The Chief Procurement Officer shall weigh all merits of the appeal and, in consultation with the affected department/division/college representative, shall make a recommendation to re-open the review or to deny the request.

3. If the request is denied, the proposer may ask that the appeal be forwarded to the next step in the appeal process: the Vice Chancellor of Business Services or designee.

4. The Vice Chancellor for Business Services shall weigh all merits of the appeal and shall make a recommendation to re-open the review or to deny the request.

5. If the request is denied, the proposer may ask that the appeal be forwarded to the Governing Board.

6. The Governing Board shall weigh all merits of the proposal and shall make a recommendation to re-open the process or to deny the request.

• "Petition of Interest" means the document that is the form of information that is requested by the District, completed by the petitioner, expressing interest in providing the goods or services.
  
• "Privatization" means the provision of services or goods by a private sector business, another public sector body or non profit agency, that is normally provided by employees of the District.