Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

Principles of Public Procurement Course Project

Business Administration 235
Fall 2016
Matt Monaghan
Chemeketa Community College

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

Introduction
In the fall of 2016 I interviewed three officials responsible for procurement for
three different agencies of the state of Oregon. The interview subjects were Sharon
Domaschofsky, Administration Services Division Manager and Designated Procurement
Officer for the Oregon Liquor Control Commission; Dick Hawks, Procurement/Contracts
Manager for the Oregon Department of Corrections; and Lori LeVeaux, Administration
Services Division Administrator for the Oregon Department of Fish and Wildlife.
The purpose of these interviews was to learn about their jobs in both general and
specific ways. For example, I wanted to learn about their day-to-day responsibilities and
overall impressions of the job. Additionally, I was interested to learn about the unique
procurement processes, issues and challenges that each DPO faces in their individual
agency. These included topics such as how they write solicitations, evaluate bids,
strategize for the future, utilize risk management and combat anti-competitive practices.
What I discovered was that while all the DPOs broadly do the same thing, each agency is
so different and unique in its mission that making an apples-to-apples comparison of their
jobs is difficult. That said, each displayed a high level of professionalism and
transparency that made the interviews highly rewarding.
Sharon Domaschofsky
As the Administration Services Division Manager (ASDM) and Designated
Procurement Officer (DPO) for the Oregon Liquor Control Commission (OLCC), Ms.
Domaschofsky has a great deal of responsibility for an agency that is undergoing
significant change. The OLCCs mission, according to its website is to support
businesses, public safety, and community livability through education and the

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

enforcement of liquor and marijuana laws (About the OLCC). More specifically, the
OLCC regulates the sale and service of alcoholic beverages and marijuana through a pair
of Acts passed by the states legislature. As its name might imply, the OLCC has long
been tasked with managing alcohol, but marijuana is a new responsibility the agency has
been charged with undertaking. As a result, Ms. Domaschofsky, who has 20-plus years of
experience in the field, including three with the OLCC, is in the position of being
something of a trailblazer as she and her staff create and implement new systems to
manage the addition of legalized marijuana sales in the state.
Prior to delving into the specifics of that topic, however, Id like to first discuss
Ms. Domaschofskys broader job responsibilities. As it relates to procurement, Ms.
Domaschofsky heads a team of four, including herself. She oversees two purchasers and
one contract analyst. Additionally, she also heads a team of service technicians that work
at the Portland headquarters and maintain the facilitys operations. Recently, the facilitys
distribution warehouse, which imports and exports all liquor spirits sold in the state,
underwent a multi-million dollar expansion replete with a new conveyance system that
can process up to 1,400 cases of product per hour. It was Domaschofskys team that was
responsible for the solicitation and bid-evaluation of this project. Shes now currently
working on a $6 million procurement for a new roof on the aging building. Another major
procurement includes regularly updating the agencys fleet of 65 vehicles that agents use
to travel to the thousands of points of sale, i.e. bars, restaurants, and liquor stores,
throughout the state. However, its the procurement of a new software program that can
manage the regulation of marijuana that presents Ms. Domaschofsky with her greatest
challenge.

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

In 2015, Oregon voters approved Measure 91 making recreational marijuana legal

in the state. This meant that citizens could now legally grow, produce and sell limited
amounts of marijuana for recreational consumption. As part of Measure 91, the state was
charged with regulating and tracking the various production stages and sale of marijuana,
which fell to the responsibility of the OLCC. While the OLCC does not import and
export all marijuana the way it does with liquor, it has implemented what it calls a seedto-sale tracking process. How this process is managed is through a complex software
program that Ms. Domaschofsky and her team spent many months working to procure
and develop to meet the specific needs of the state. Even before the passing of Measure
91, Ms. Domaschofsky began researching the way the states of Washington and Colorado
(earlier adopters of legalized marijuana) developed their tracking systems so she would
be prepared to move quickly if and when Oregon legalization was approved. Ms.
Domaschofsky characterized the whole experience as starting from scratch to
becoming subject experts in the end. Upon the passing of the measure, Ms.
Domaschofsky and her team moved quickly to solicit Oregons own tracking system and
eventually a company that had experience with Colorados system was chosen. While this
was the most notable procurement relating to marijuana, there were several other smaller
ones. For example, Ms. Domaschofsky had to write procurement solicitations for
consultants, scanning equipment, safety gear, and venue rentals for meetings.
My overall impression of Ms. Domaschofsky and her job was one of great respect
and admiration. I find it fascinating that she is on the ground floor of implementing the
marijuana tracking system for the state. Its an enormous undertaking with a multitude of
challenges that she and her team can take great pride in accomplishing. I left thinking that

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

while very few government workers have the opportunity to make such a noticeable
impact on their agency, Ms. Domaschofsky is someone who will be responsible for a
piece of Oregon governmental history. I also came away impressed by the way she has to
strategize and plan ahead. For example, for the marijuana tracking system, Ms.
Domaschofsky knew she wouldnt have enough time to research, solicit bids, award a
contract and implement a tracking system between the time the measure was passed and
when it would take effect, so she began researching and preparing well in advance, even
when she couldnt be certain that there would be any legalization at all.
Dick Hawks
As the Procurement/Contracts Manager for the Oregon Department of
Corrections, Dick Hawks is responsible for buying many of the basic commodities
required by a large population of people who dont have the freedom to otherwise get
them. The DOCs mission statement is is to promote public safety by holding offenders
accountable for their actions and reducing the risk of future criminal behavior (About us
mission, vision, core values). Whats not included in that statement, however, is also
the responsibility to care for those offenders, which is where Mr. Hawks comes in.
Stationed at the DOCs Central Distribution Center in Salem, Mr. Hawks leads a team of
13 staffers who are charged with the procurement of food, clothing, medical supplies,
uniforms, televisions, toothbrushes and virtually anything else you can think of that a
prisoner needs for the states 14 corrections institutions that house nearly 15,000 men and
women. Its a job that Mr. Hawks has had for the past five years as part of a 27-year
career in procurement services.

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

Because of the unique population that Mr. Hawks and his team are responsible
for, there are several challenges he must face that another government procurement may
not. Perhaps the biggest of these challenges is the fact that many of the products and
services that prisoners receive are mandated by the state. For that reason, its absolutely
imperative that Mr. Hawks meet those requirements because if he doesnt his agency
could face legal liabilities. For example, prisoners are entitled to medical care, including
doctor consultations and medications. Since prisoners obviously dont have the
capabilities of receiving either of these on their own, they are completely dependent on
Mr. Hawks to maintain the service contracts for the medical professionals as well as the
prescription drugs that they take. But while this challenge is an example of one that must
adhere to the rights of the prisoners, another challenge comes in meeting the limitations
set forth by the states Department of Justice. Not just any product can be provided to the
prisoners. Those products, be they food or clothing or toilet paper, have to be reviewed
and approved by the DOJ before they can be solicited and later distributed to the inmates.
As Mr. Hawks said, this can seriously slow down the process.
Despite these challenges, Mr. Hawks utilizes a number of different safeguards to
maintain compliance. The most important of these safeguards is planning. Unlike with
most other agencies, Mr. Hawks bases all of his solicitations on the needs of each of the
14 correctional institutions. For that reason, he encourages staff at each facility to work
with him in communicating those needs well in advance of the date when they will be
needed. He also uses a software system that automatically alerts him to every contract
that is up to expire in six months. By this he can continuously focus on the most pressing
contracts that can either be renewed or re-solicited.

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

However, even new solicitations can bring their own set of challenges, and these
affect the would-be bidder most of all. Mr. Hawks said that because of the required
language pertaining to risk (especially for service providers) and insurance, each
solicitation can run over 30 pages long which has the unintended effect of intimidating or
scaring away potential bidders. There are several reasons for these feelings, according to
Mr. Hawks, but the biggest might be that the solicitation is not understandable or requires
such careful examination that a smaller firm without a person competent in solicitation
procedures simply wont have the time to put together a bid. As a result, Mr. Hawks said
that he makes sure to offer a period during the procurement for questions and answers, or
clarifications to items that may not be understood. As a public official after all, Mr.
Hawks has a responsibility to be available and transparent as possible to potential
bidders.
My impression of Mr. Hawks was of someone who relishes the challenges he
faces and maintains a high level of organization and management. Someone entrusted
with the material care of nearly 15,000 people without any other access to their necessary
resources cant afford to be otherwise. Someone who wasnt as organized as Mr. Hawks
would have been harried and stressed, but I found him to be very calm, which spoke to
his level of professionalism and preparation. Clearly, he has surrounded himself with the
tools and staff to manage the agencys procurement issues well. What I found most
interesting about Mr. Hawkss job, and the agency as is relates to procurement, is the
incredible distribution process in place to service each of the 14 correctional institutions.
Mr. Hawks said that approximately 95% of all the products that go into the prisons first
pass through the Central Distribution Center. On my visit, I saw a very large warehouse

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

with eight docking bays for long-haul trucks and discovered that this warehouse receives
and ships dozens of full trucks each week, mostly of food. When I thought about the
sheer size of the amount of food required to feed close to 15,000 people, the scale of
distribution required to accommodate that much amazed me.

Lori LeVeaux
As the Administrative Services Division Administrator for the Oregon
Department of Fish and Wildlife, Lori LeVeaux has a lengthy list of job responsibilities.
At the top of that list might be Problem Solver. After 27 years of working in
contracting and purchasing with the state, including close to seven with Fish & Wildlife,
Ms. LeVeaux doesnt come across much that she hasnt seen before, and for that reason
shes an invaluable resource to the staff that works under. While her supervisory role
allows her contract administrators to manage much of the day-to-day responsibilities of
Fish and Wildlife procurement, Ms. LeVeaux oversees the administration of a multitude
of other areas within the agency, such as facility and realty services for the local field
offices, accounts payable and receivable, payroll, and licensing. When I visited her she
mentioned that her latest challenge was figuring out how to correct a purchasing mistake
that an employee at one of the field offices made that should have gone through the
solicitation process, but didnt. The product had already been delivered and the vendor
was demanding payment. What to do now?
Located in a beautiful new building in southeast Salem, the Oregon Department
of Fish & Wildlife states its mission as to protect and enhance Oregons fish and wildlife
and their habitats for use and enjoyment by present and future generations (Agency

Running head: PRINCIPLES OF PUBLIC PROCUREMENT COURSE PROJECT

mission). Much of what goes in to protecting and enhancing the states wildlife and
habitats goes through the desk of Ms. LeVeaux. For example, if something washes up on
one of the states beaches, which happened with some regularity after the tsunami that
devastated Japan, its up to Ms. LeVeaux to not only figure out how to remove it, but also
consider other factors, such as the presence of invasive species. Or if a rogue bear needs
capturing, Ms. LeVeaux must consider not only what tool to use for the job, but also the
insurance necessary to cover any potential injuries sustained by the worker. Because of
these challenges and the nature of the people who typically do such work, Ms. LeVeaux
said that one of her biggest roles is to demonstrate the value of contracting and help
others to see it in a positive light. Its up to her to see all the possibilities, including all the
things that could go wrong in sensitive or dangerous operations.
Thus, many of the solicitations that Ms. LeVeaux and her staff puts out are
complex and can take months, if not years, to see through from start to finish. She gave
the example of a new point-of-sale system that the agency was working to get. In that
particular procurement, Ms. LeVeaux said that she awarded the contract two years ahead
of when she hoped to see the new system installed. That means she spent an additional
year-plus prior to that researching and writing a solicitation. For big projects such as
these, Ms. LeVeaux offered a few key contracting recommendations that shes learned
through past experiences. The first was to have products that are deliverable broken down
into chunks. The value of this is to be able to manage the performance of the contract
over a period of time and tie payment to when milestones are met. This also echoes wellestablished standards (State & Local Government Procurement, 65). Another
recommendation she had was to do background checks for the providers of major

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service- and construction-related projects. This includes learning about the financial
health of the bidder as well as any licensing that might be required. Ms. LeVeaux
mentioned that this had become a bigger problem during the slow down in home
construction when many home contractors attempted to branch out into other areas of
building that they did not have the necessary skills to do.
The lasting impression I have of Ms. LeVeaux is of someone who is dedicated to
her work, and specifically dedicated to helping others. With such a wealth of experience,
Ms. LeVeaux knows the ins-and-outs of procurement and contracting better than most. I
think she would make a terrific manager and mentor because even though I spent less
than an hour with her, I came away feeling that she has the disposition to teach others.
Working under her I would be confident that there would be no problem, big or small,
that she wouldnt be able to help me with, and as someone who is just entering the field,
that is invaluable. Ms. LeVeaux understands the value of procurement and can effectively
communicate that value to others inside her own organization who might see it as a
bureaucratic obstacle.
Comparison and Conclusion
There are a number of similarities and differences between each of the
procurement officers I interviewed. As I stated earlier, its difficult to do an apples-toapples comparison of the three because they each have unique responsibilities that apply
strictly to their agencies. For example, in addition to procurement and contracting, Ms.
LeVeaux is responsible for overseeing other areas such as payroll and accounting for Fish
& Wildlife. Thats not something that either Ms. Domaschofsky or Mr. Hawks are
charged with. Ms. Domaschofsky is responsible for implementing an entirely new

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tracking system to accommodate a newly regulated product, marijuana. In essence, shes
breaking new ground in ways that Ms. LeVeaux and Mr. Hawks are not. And Mr. Hawks
is responsible for navigating legal requirements and restrictions that not only pertain to
the inmates, but also those set forth by the Department of Justice. In this, neither Ms.
Domaschofskys nor Ms. LeVeauxs jobs compare.
But they also share many commonalities. Each relies on strategic planning to a
great degree. Ms. Domaschofsky had to research a tracking system for the marijuana
seed-to-sale management. Mr. Hawks has to ensure that vital and legally required
product and service contracts dont lapse. And Ms. LeVeaux began working years in
advance to bring about a new point-of-sale system. These arent jobs that one can simply
show up to and take one day at a time.
All three had two other observations in common regarding the way the world of
procurement operates. The first of these was the need for simpler language in contracts.
While none of them were sure it would be possible to make contracts shorter, each hopes
that in the future contracts can become more uniform and simpler to digest by the outside
parties. It would open up the bidding pool to a larger number of potential firms, and, in
theory, reduce the cost of goods and services brought by greater competition. Secondly,
none of the three had noticed or experienced much in the way of anti-competitive
practices such as bid-rigging or price-fixing. Only Ms. Domaschofsky stated that she had
ever come across something that appeared to be improper, but that nothing of blatant
illegality ever arose. For all, the sentiment they shared was that anti-competitive practices
are very hard to prove.

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The hours I spent with each of the three procurement officers were very
productive and worthwhile. I was able to see the kinds of environments they work in and
the issues and challenges they face. Each was very giving of their time and eager to help
me learn as much as I could. I wish to thank them all for their help. This experience has
only increased my desire to move my career in this direction.

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References
About the OLCC. (n.d.). Retrieved from
http://www.oregon.gov/olcc/Pages/about_us.aspx
About us mission, vision, core values. (n.d.). Retrieved from
http://www.oregon.gov/doc/pages/about_us.aspx
Agency mission. (n.d.). Retrieved from http://www.dfw.state.or.us/agency/
State & Local Government Procurement: A practical guide. (2015). Lexington, KY.
National Association of State Procurement Officials.