Proposal [Non-Constitutional]: Establish the ArbitrumDAO Procurement Committee

Abstract - The ArbitrumDAO Procurement Committee (ADPC) is tasked with facilitating & administering various procurement frameworks within the Arbitrum Ecosystem, creating new procurement frameworks for DAO Ratification & creating a proposal for security-service subsidies.

Motivation - Implementing the ArbitrumDAO Procurement Committee (ADPC) and its associated frameworks is essential for the Arbitrum community as it ensures a transparent, efficient, and accountable approach to procurement, benefiting the ecosystem by securing high-quality service providers via a preemptive quality assurance mechanism which is the procurement framework.

Rationale - the ADPC will play a pivotal role in achieving further organization within the ArbitrumDAO. The mandate of the ADPC aims to create an optimal organizational framework for service procurement while also creating a marketplace for service providers that would have gone through preemptive quality assurance.

Steps to Implement - The AIP passed Snapshot on the 9th of January 2024. Following the conclusion of the Snapshot vote, the AIP is now proceeding to the on-chain voting stage so as to ratify the funding & process for the ADPC. Once the forecited steps are concluded the election process will commence.

Specifications & Timeline - Specifications & timeline can be found in the following sections.

Overall Cost - For a 6-month term, $8,000 per month, per member (payable in ARB at the applicable conversion rate at the end of the respective month) & 1,000ARB per Multi-sig member [per month]

The Funding Request from the on-chain vote will be 200,000ARB (a buffer has been added so that, in the case of ARB depreciation, the ADPC Multi-sig is still able to satisfy payments to procurement committee members. Unutilized ARB will be returned to the ArbitrumDAO Treasury)

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Non-Constitutional

TL;DR

• The ADPC (ArbitrumDAO Procurement Committee) has the immediate mandate of overseeing the ‘Procurement Framework for Security Service Providers’ recently ratified by the ArbitrumDAO.
• The ADPC may add additional procurement frameworks that will be ratified through Snapshot.
• The committee will research and propose a subsidy fund for security-oriented services within the Arbitrum Ecosystem. A ‘Means Test’ will be implemented to determine project eligibility for security service-fee subsidies.
• The ADPC will establish procurement frameworks for various verticals and service types within the ArbitrumDAO.
• Three members will be elected to the ADPC through Snapshot’s weighted voting system.
• Eligibility criteria for members include experience, integrity, conflicts of interest disclosure, industry knowledge, analytical skills, financial acumen, communication skills, negotiation skills, project management abilities, ethical conduct, teamwork, technology proficiency, and decision-making skills.
• The election process involves application submission, KYC/KYB review, and member election via Snapshot.
• The ADPC’s term is 6 months, with a monthly stipend of $8,000 per month, per member (payable in ARB at the applicable conversion rate at the end of the respective month)
• Operational parameters include meeting minutes, monthly reports, bi-weekly calls, and a public dashboard.
• The ADPC’s Multi-Sig will be a 3/5 with signers receiving 1,000 ARB per month for their services. Signers cannot be Procurement Committee members.
• Streaming of funds and clawback capabilities are implemented for multisig accountability.
• The ADPC will be regulated via an Agreement with the Arbitrum Foundation.
• The Agreement will cover appointment, conflict of interest, mandate, record-keeping, duty of impartiality, recusal, self-dealing prohibition, and ethical trading standards for ADPC members.

Executive Summary

This proposal intends to formalize a structured group within the ArbitrumDAO (the ‘ArbitrumDAO Procurement Committee’ or ‘ADPC’) responsible for overseeing and managing Procurement Frameworks that are ratified by the ArbitrumDAO from time to time depending on the needs of the organization. The ADPC’s primary purpose is to ensure that procurement activities are conducted efficiently, transparently, and in compliance with the applicable framework/s.

Overview

The ADPC’s immediate mandate will be that of facilitating & administering the recently ratified ‘Procurement Framework for Security Service Providers’ [REF:Proposal [Non-Constitutional]: **Procurement Framework [Security Service Providers]** 15 & Snapshot 11]. This mandate can be supplemented by virtue of a Snapshot vote whereby the ArbitrumDAO may add another procurement framework that the Procurement Committee will be responsible to administer & facilitate.

Composition of the ADPC [Mandate, Eligibility, Election Process, Funding, Operational Parameters]

[i] MANDATE

1. The primary mandate of the ArbitrumDAO Procurement Committee (ADPC) is to oversee and facilitate the recently ratified procurement framework for security-oriented service providers within the Arbitrum Ecosystem, as per the following reference: [Snapshot Proposal Link: Snapshot 11]. In this capacity, the ADPC bears the responsibility of diligently executing the steps essential to implement the aforementioned procurement framework in a manner characterized by transparency and efficiency.
2. The ADPC will be tasked with researching & drafting a proposal to the ArbitrumDAO to set up a subsidy-fund for security-oriented services that will be used to subsidize the costs for security-services for smaller projects within the Arbitrum Ecosystem.
3. The ADPC will be tasked with researching & implementing a framework that will establish a set of qualitative & quantitative metrics that will be utilized so as to assess a project’s eligibility for the ‘Subsidy Fund’ referred to in point [b] above. This ‘Means Test’ (as referred to in traditional administrative practices), will be bundled in with the proposal that will set up the subsidy fund referred to in [b]. The Means Test will be used to assess whether a project is eligible for security service-fee subsidies. Initially, this methodology will only be applied to security-oriented services. However, this does not preclude the application of this same concept to other verticals within the ArbitrumDAO.
4. The ADPC will be tasked with establishing procurement frameworks for a myriad of verticals/service-types that the ArbitrumDAO could need in the foreseeable future. This proactive approach towards procurement will naturally aid in ensuring that projects within the Arbitrum Ecosystem have immediate access to high-quality whitelisted service providers when the need arises. In this regard, all procurement frameworks developed by the ADPC will need to be ratified through a Snapshot vote by the ArbitrumDAO.
5. The ADPC will be tasked with creating & communicating guidance notes & circulars that will substantiate & provide additional detail in relation to any procurement framework that is ratified by the ArbitrumDAO from time to time. The aim of these guidance notes & circulars is to provide prospective applicants going through the procurement process with the necessary information that would enable them to satisfactorily complete the steps of the corresponding procurement framework.

Steps [2], [3] & [4] of the mandate will necessarily have to be coupled with a 14-day consultation period pre-structuring so that input is solicit from the ArbitrumDAO and other relevant third-parties. The input collated during the public consultation period will necessarily need to be made public.

The ADPC will be composed of three [3] members that will facilitate & administer procurement frameworks as ratified by the ArbitrumDAO from time to time. The appointment of ADPC members will be effected via an open election process via Snapshot’s weighted voting system; wherein the first three [3] ranked members in the vote will be elected to the ADPC. Albeit not legally binding, when voting for prospective members of the ADPC, delegates & token holders alike should prioritize the following eligibility criteria so as to properly equip the ADPC to carry out its mandate.

[ii] ELIGIBILITY CRITERIA

Albeit not being legally binding, prospective voters looking to assess election applicants should in-principle conduct their assessments in light of these criteria.

Experience

• A demonstrated knowledge of procurement principles & best practices;
• In-depth knowledge of procurement fram

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https://tally.xyz/gov/arbitrum/proposal/43616303506326656287362617487331059827021737444126158637397168372555259240241