THE MISSISSIPPI LEGISLATURE

The Joint Committee on
Performance Evaluation and Expenditure Review

Report # 425

State Agencies’ Use of Cellular Telephones

Executive Summary

 Introduction

In response to a legislative request, PEER answered seven specific questions regarding agencies’ procurement and use of cellular telephones. These questions and answers are presented on pages vii through ix of this executive summary.

To answer these questions, PEER conducted a survey of state agencies. Following the collection of survey information necessary to answer the questions, PEER became concerned over possible problems related to state agencies’ management of cell phones and the report contains a section discussing these concerns.

For purposes of this project, PEER imposed a scope limitation with respect to the definition of a “state agency.” For purposes of this report, the term “state agency” includes the boards, commissions, departments, authorities of state government, and institutions of higher learning.

 Questions about Cell Phone Use and Procurement

How many cellular telephones are in the possession of state agencies?

State agency respondents identified a total of 3,646 cellular phones, with 3,441 having currently active calling plans.

How much expense did the agencies with cellular telephones incur in FY 2000 and FY 2001?

Agencies reported spending approximately $2 million per year during each of the last two fiscal years on cellular phone equipment and use.

How much in savings, if any, did agencies realize from the use of cellular telephones?

Of the eighty-one agencies responding that have cell phones, three identified a total of $2,804 in savings from the use of cell phones. Other agencies reported efforts to save money through purchase of cell phones, but did not report a dollar amount of savings.

How do agencies procure cellular telephones and service?

No centralized process controls the procurement of cellular telephones and calling plans or assesses agencies’ need for such. Individual agencies decide which equipment or calling plans will be appropriate and they have a broad range of choices when making these decisions.

Each state agency, following Department of Information Technology Services (ITS) procedures, procures its own cellular equipment and service. When purchasing cellular phone equipment and service, state agencies have two options:

How do agencies ensure that procurement of cellular telephone services is necessary and that the telephones procured are used for agency business only?

No state-level controls or policies specifically outline standards of need or appropriate use of state-owned cellular telephones. Policies addressing these matters are developed by the individual agencies.

Of eighty-one agencies with cellular phones, twenty-nine reported that they have formal use policies and internal controls in place to ensure that cellular phones are used only for appropriate state business. Few agencies described how they monitor compliance with their policies.

Pages 12 through 15 of the report detail the number of agencies reporting that they have policies relative to cell phones in the following areas: equipment and purchasing, financial controls, issuance, certification by employees, related employee training, proper use of state property, appropriate use, personal use, abuse, and use while driving or operating machinery.

How many calling plans are used by state agencies?

At least 459 calling plans are currently in use by the eighty-one responding agencies with cell phones. Two carriers dominate the state agency cell phone market: Cingular, with 49% of the market share, and Cellular South, with 31%.

Typical plans cost from $20 to $50 per month and range from having 100 to 450 minutes included in the plan. The cost of roaming and long distance on out-of-state calls ranges from zero to $.99 per minute

What is the potential liability for state agencies associated with state employees using cellular telephones while driving?

Although some states have passed restrictive legislation or made it illegal to drive while talking on a hand-held cellular telephone, Mississippi has not. Further, no common law decisions from Mississippi courts hold that the use of a cellular telephone while driving constitutes an act of negligence. The director of Mississippi’s Tort Claims Board notes no trend toward litigation against states because of employees’ use of cellular telephones related to alleged vehicular negligence and does not view potential liability as a major concern thus far.

It would be difficult to determine each state agency’s potential liability because it is the unknown actions of an individual or unforeseen events and circumstances that could result in a tort claim. Because Mississippi has no statewide policy addressing state employees’ use of a cell phone while driving, agencies must assess their own risks and develop policies accordingly.

 PEER Concerns Regarding Agencies’ Management of Cell Phone Resources

In collecting descriptive information on the procurement and use of cellular telephone services by state agencies, PEER noted several concerns. At present, individual agencies have authority over their procurement and use decisions. The implications for this are that the state’s interest in efficient and prudent use of cellular telephones is protected only insofar as each agency shows diligence and concern for protecting that interest.

Pages 20 through 26 of the report discuss several areas of concern regarding cellular telephone procurement and use: oversight of inventory, tracking usage expenses, reporting of management information, and the effects of decentralized procurement, agencies’ flexibility in procurement, and a lack of comprehensive policies.

 Recommendations
  1. The State Auditor should direct all agencies to list cellular telephones and other wireless communication devices on inventory regardless of whether they were provided free or are not currently in use.

  2. The Department of Finance and Administration should direct state agencies concerning the preferred code or codes to be used for charges for cellular telephones and for other forms of wireless communication.

  3. The Legislature should require that the Department of Information Technology Services establish general policies for agencies to assess a need for cellular phones or other forms of wireless communication service based upon establishment of the following:
    • whether a less expensive telecommunications alternative is suitable and/or available;

    • whether a cell phone issued to an employee would improve job performance and productivity through better communicative ability and/or mobility;

    • whether the agency’s needs can be met with present service levels;

    • whether the agency’s use patterns provide for a limited number of cell phones that can be checked out by employees on a daily basis;

    • whether quantifiable benefits are associated with the procurement of cellular service and whether cellular service provides more efficient or effective service delivery; and,

    • whether quantifiable savings associated with the use of cellular telephones result in a reduction in other costs.

    Each agency should establish specific guidelines and report the quantifiable benefits and savings that it realizes from the use of cell phones and other forms of wireless communication in its annual report to the Legislature.

  4. The Legislature should require the Department of Information Technology Services to develop a single or limited number of contracts with cellular service providers in an attempt to reduce service plan costs for state agencies. In developing these contracts, the department should take into consideration agencies’ need and use patterns.

    Further, ITS should consider whether it is appropriate to establish a state contract rate that any provider may meet or to procure plans on the basis of a lowest and best bid. The department should take steps to restrict state agencies from using any form of cellular or other wireless communication service except for those plans approved by ITS.

  5. The Legislature should amend MISS. CODE ANN. Section 25-53-107 to require the Department of Information Technology Services to develop a use policy for all state agencies for all forms of wireless communication that, at a minimum, establishes the following:

    • a policy restricting personal use to emergencies;

    • a requirement that any person assigned a cellular telephone prepare and maintain a telephone log documenting each telephone call made on a cellular telephone, the purpose of the call, the person to whom the call was directed, and the time of the call. The policy should include a provision that agencies involved in law enforcement or protection of public health and safety may receive a waiver for personnel directly involved in providing such services.

    ITS should require all agencies to adopt the recommended policy or to develop a policy no less stringent than the policy proposed by ITS.


      6. [1]     The EPL is a list of bids competitively solicited by ITS and compiled based on specifications and purchasing demand.  EPLs are multi-vendor awards that meet state purchasing requirements and are negotiated as one-year contracts. Agencies using the EPL automatically meet competitive bid requirements.

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