- Report Published -
|2011 Commercial Activities Inventory Report|
|Secretary of Administration|
|Chapter 566 (Regular Session, 2005)|
|The Governor and his administration remain committed to serving the needs of Virginia's citizens through a state government that provides services in the most efficient and effective manner possible. The administration has conducted many initiatives and implemented several enterprise-wide business function reengineering projects that are achieving increased efficiencies and cost reductions. Many have included public-private partnerships and outsourcing to private entities in accordance with the Virginia Public Procurement Act.|
The Commonwealth of Virginia delivers its services in a variety of ways, including state employees, outsourcing, public-private partnerships, or a combination of these. The Competitive Government Act defines state employees as all persons employed by the Commonwealth to provide services, including both salaried and wage employees, and all persons engaged to perform work for or to provide services to the Commonwealth. This report reflects the delivery of services by the executive branch of state government for fiscal year 2011.
In implementing the provisions of this legislation, the Governor directed the Secretaries of Administration, Finance, and Technology to (i) develop a methodology for updating the inventory of commercial activities previously developed by the Commonwealth Competition Council; (ii) provide guidance in determining functions that should be performed by state employees because they are inherently governmental in nature, and those that may be suitable for cost comparison analyses; (iii) determine which commercial activities are suitable for consideration for outsourcing at the agency level and which should be the subject of enterprise-wide approaches; (iv) provide guidance to agencies and institutions in making realistic and fair cost comparisons for contracting with the private sector; and (v) recommend such other actions as may be necessary and appropriate to procure the services, and develop the required reports.
In addition, in keeping with the requirements of the legislation, the Governor supports efforts by the Virginia Department of General Services (DGS) to contract out for real estate brokerage services. Contractor employees assist with surplus property sales, lease property acquisition, land purchases and other real estate activity. This outsourced activity has been in place for approximately five years, and has been a part of the DGS, Division of Real Estate Services' success in implementing the Commonwealth's real estate portfolio management model.
DGS has also contracted out for vehicle maintenance services. This outsourced service operates a vehicle maintenance management call center tracking approximately 4,000 state-owned vehicles that are operated throughout the Commonwealth. The outsourced service collects maintenance and operational data on the 4,000 state-owned vehicles. In addition, this outsourced activity provides for roadside assistance, schedules maintenance and repair work with private sector vehicle maintenance facilities across the state, and schedules, vehicle preventive maintenance services.
In addition, housekeeping services provided to DGS owned and operated facilities located at Capitol Square have been outsourced. Laboratory specimen transportation services required to transport laboratory specimens from DGS, Division of Consolidated Laboratory Services (DCLS) customers to DCLS has been contracted out. This outsourced service picks up laboratory specimens at customer locations around the Commonwealth, then delivers specimens to DCLS for testing. At this time, DGS is still monitoring the savings realized for these privatization efforts.
The information presented expands upon the 205 commercial activities identified in the 1999 inventory compiled by the Commonwealth Competition Council and includes all activities of the executive branch of state government. The former commercial activity topics will now be identified as service areas. This conforms to the naming structure for the state budget.
During the 2011 fiscal year, there were 684 services being provided for Virginia's citizens by the executive branch. Removing the 173 services that are considered pass-through grants and/or inherently governmental services, there are 511 services that contain some form of commercial activities. Efforts are underway to determine which of these services, or portions of these services, are considered inherently governmental, meaning that only the state workforce should deliver the service. The General Assembly and Governor have authorized over 106,000 classified employees in the executive branch to provide its services. Recognizing that in many cases there is a need to supplement the executive branch workforce, over 10,700 individuals have been employed by the state agencies and institutions as wage employees during the 2011 fiscal year. In addition, the Commonwealth spent $10.5 billion in contractual services which reflects an increase of almost 16 percent over fiscal year 2009 totals.
Details on the analyses done to develop the list of services and the delivery mechanisms for the executive branch are reflected on the attached five reports:
Report 1: delineates the services of the executive branch of state government that contain some form of commercial activities. This is a more comprehensive listing of services provided than in the 1999 inventory. Once the decision is made to study the service in depth and the outcome is known and implemented, it is intended that the activity will be moved to a completed list of services. As services are studied, the inherently governmental aspects of each will be identified and moved to a list of inherently governmental services. These two additional lists will be included in the information available on the Web.
Report 2: lists the pass-through grant funding services which have been removed from the activities of state government identified in Report 1.
Report 3: arrays expenditures in salaried and wage information for the 2011 fiscal year.
Report 4: arrays salaried and wage employment statistics and contractual services for the 2011 fiscal year.
Report 5: reflects expenditures in contractual services for the 2011 fiscal year.
This information will be available on the Web sites of the Commonwealth Competition Council at http://www.egovcompetition.com.