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OCP advances procurement modernization (PAS) amid local budget cuts and vacancies
Summary
Nancy Hateman, Chief Procurement Officer, told the committee OCP will launch a phased procurement automation (PAS) project funded with $7.9M in FY27 capital to modernize vendor experience and contracting; she also described a net local reduction of seven FTEs, 37 current vacancies, and the need to maintain legacy systems during transition.
Nancy Hateman, Chief Procurement Officer for the District, opened OCP's testimony by describing the agency's FY27 operating and capital picture: a proposed operating budget of approximately $26.65 million (a 9.5% decrease from FY26) and a $7.9 million capital ask to modernize the legacy PAS procurement system.
Hateman said OCP manages roughly $5.2 billion in annual purchases for 79 district agencies and that PAS modernization is critical to reduce manual workarounds, consolidate vendor portals and improve vendor and agency experience. She said the project has onboarded a 10‑person contractor team to complete requirements and that phase 1 (vendor experience) is scheduled to go live on 10/01/2026, with sourcing and contracting modules targeted for 10/01/2027. As of the hearing she said roughly $3,013,393 of prior modernization funds had been obligated.
On staffing, Hateman explained a net reduction of seven FTEs in the local budget is partly offset by 11 SPR‑funded FTEs; OCP reported 37 local‑budget vacancies (7 used to meet the mark) and said it must hold most vacancies to meet a 20.1% vacancy‑savings target. She described nonpersonnel service reductions affecting contractor support for the purchase‑card program and training functions, and said the procurement training institute and quality‑management tools will continue to be developed despite constrained resources.
Committee members pressed on transparency portal integration, EPPS adoption and sole‑source contracting statistics; Hateman said portal improvements are being factored into PAS and provided FY22–25 sole‑source figures (5.1% for >$1M contracts; 3.7% for contracts with option years). The committee also discussed surplus property fund uses and OCP's emergency contracting role in snow events.
