Risk Management in FY24

woman next to a sculpture of an upside down head, whispering it its ear

Effective risk management is crucial for navigating uncertainties that can impact the University. It involves ensuring supply chain resilience, controlling costs, adhering to compliance and regulatory requirements, managing supplier relationships, fostering innovation, maintaining financial stability, and promoting long-term sustainability.

wooden letter blocks stacked to spell the word RISK

UC Procurement's focus on managing and mitigating risk

In an increasingly complex and interconnected global economy, the risks associated with procurement—from supplier disruptions to regulatory changes to groundbreaking technology—can have far-reaching consequences. Learn how UC Procurement is addressing risk in everything we do.

SWP - Impact, Policy & Compliance

UC Policy & Legal Updates Drive Efficiency and Modernization

Several key UC Delegation Policies have been updated over the past year to enhance operational clarity, efficiency, and compliance across the system. These include:

DA 1058: Streamlining Contract Execution
DA 0777: Enhancing Procurement Flexibility
DA 2100: Modernizing Procurement Approvals

Additionally, we updated the UC Terms & Conditions (T&Cs), which serves as the governing document for all UC supplier agreements, ensuring legal protection and compliance across procurement activities. Read on for details on these important policy and legal document refinements.

Important Policy & Legal Refinements

UC Berkeley

Protection Powerhouse: BCBP Team Safeguards Berkeley Contracts

The UC Berkeley Business Contracts and Brand Protection (BCBP) team is the unsung hero behind the scenes, ensuring that the university’s business dealings run smoothly and securely. This dynamic group of legal experts, lodged within Supply Chain Management, plays a pivotal role in safeguarding Berkeley’s interests by reviewing, consulting, and finalizing an impressive 750-1,000 contracts each year. From complex research agreements to essential service contracts, the BCBP team provides critical guidance on trademarks and intellectual property, reinforcing Berkeley’s position as a leader in academia and innovation. With their expert oversight, the university’s contractual landscape is in safe and skillful hands.

SWP - Life Sciences

Life Sciences Wins with Gene Sequencing & Synthesis Contracts

With $20M per year in spend, the 12 new Gene Sequencing & Synthesis contracts bring significant savings and value-added purchasing to UC.  These contracts bring a sizable amount of spend under contract which improves compliance, create a safer and more controlled purchasing environment, and ensure these suppliers are responsible partners. Previously, UC had pricing agreements but lacked formal contracts, leading to inefficiencies and challenges in leveraging supplier relationships. An excellent example of systemwide collaboration, the SWP Life Sciences Strategic Sourcing team, with UC San Diego Commodity Manager, Makena Loop, secured impressive discounts that have already documented more than $4M in annual savings in a risk-prone category. These contracts not only reduce risk and enhance savings and efficiency, they also support research and medical advancements at UC.

Increasing Spend Under Contract

SWP - Information Technology

IT Strategic Sourcing: Safely Riding the AI Wave

The Systemwide Procurement IT strategic sourcing team has consistently proven its value as a key partner in securing AI technology for the UC system, ensuring that the UC remains at the forefront of innovation while adhering to legal, risk, and strategic considerations. Our efforts include a thorough review of Zoom's AI features with UC Legal and Risk, advising on Microsoft's Copilot integration, and successfully executing the systemwide agreement for ChatGPT Enterprise and ChatGPT EDU. Currently, we are assessing Google's terms for Gemini AI to ensure alignment with our strategic objectives. Through these initiatives, the IT strategic sourcing team ensures UC's access to cutting-edge AI tools while maintaining compliance, mitigating risks, and maximizing value systemwide.

Safely Harnessing AI

UC Santa Cruz

UCSC Explores AI-Driven "Purchase Copilot"

UC Santa Cruz is breaking new ground in procurement by testing an innovative “Purchase Copilot” program. This AI-driven tool will transform how procurement requisitions are reviewed, ensuring compliance with all policies and regulations. The Purchase Copilot will analyze every requisition and provide tailored recommendations to UCSC buyers, streamlining the approval process and enhancing decision-making. By leveraging artificial intelligence, UCSC aims to increase efficiency, reduce errors, and support strategic purchasing across campus. Stay tuned as UCSC continues to redefine the future of procurement!

SWP - Information Technology

IT Strategic Sourcing Protects UC

The Systemwide Procurement IT strategic sourcing team acts as a vital "partner in defense," embedding risk mitigation throughout the sourcing process. By collaborating with Information Security (InfoSec) subject matter experts from the start of sourcing projects, we ensure thorough reviews of suppliers' security plans and controls. We've also established an interim process with the systemwide InfoSec team for collaborative Vendor Risk Assessments on new agreements, proactively informing contract decisions and technology implementations. Our strong partnerships with UC Legal, Risk, and Insurance provide robust contractual protections, reinforcing UC's commitment to secure and compliant IT procurement.

Strategic Priorities

UC Procurement is committed to the five strategic priorities below. Through dedication to these priorities, we strive to empower our campuses, foster innovation, and shape a more sustainable and equitable future. This Annual Report is organized by these five priorities – click any card to delve into our progress in these areas: