Transaction Fee Assistance for Buyers State Purchasing Buyer Conference March 11, 2010

Page - 2  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

Page - 3  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

 Prior to MyFloridaMarketPlace (MFMP), Department of Management Services’ (DMS) State Term Contracts (STC) utilized a ‘User Surcharge’ fee as provided in Section , Florida Statutes (F.S.)  Under Section (23), F.S., specific authority was granted for DMS to: (1) Create an online procurement system, (2) Impose and collect fees to pay for the system and procurement functions and; (3) Develop rules and regulations governing the on-line procurement system.  Effective July 1, 2003, DMS implemented the following rules for the online procurement system that became known as MFMP:  Rule 60A Florida Administrative Code (F.A.C.) addresses MFMP vendor registration; Rule 60A  Rule 60A F.A.C. addresses the use of transaction fee language in purchasing transactions (unless exempted); and Rule 60A  Rule 60A F.A.C. addresses the MFMP transaction fee exemptions Rule 60A Page - 4 Background / Creation of MFMP

Page - 5  Rule 60A F.A.C., established the use of the 1 percent MyFloridaMarketPlace transaction fee:  Directs state agencies to include the 1 percent transaction fee language in all agency contracts, unless specifically exempt by Rule 60A F.A.C.  Provides specific contract language to include in agency contracts  The 1percent fee is paid by vendors on payments received:  from State of Florida agencies  from entities leveraging STC & Alternate Contract Sources (ACS) pricing (e.g., local governments, educational institutions, others)  All business conducted with State of Florida agencies is subject to the 1% transaction fee unless specifically exempt by rule Transaction Fee

 The transaction fee funds:  The MFMP online procurement system  DMS Division of State Purchasing which provides STC & ACS  DMS Office of Supplier Diversity which provides certification programs and training for Certified Business Enterprises (minority-, women-owned and service-disabled veteran)  DMS Office of Efficient Government to review potential outsourced programs  DMS IT Services for purchasing related functions such as the Vendor Bid System (VBS), SPURSView and more Page - 6 Transaction Fee

Page - 7  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

Page - 8  A vendor may receive three types of communications regarding MFMP transaction fees:  Missing Report Notices- STC, ACS, and SPA vendors may receive a 30 -, 60- or 90-day ‘Missing Report’ notice if they have not submitted a transaction fee report  Dunning Notices - Vendors may receive a 30-, 60- or 90- day ‘Dunning’ notice if they are delinquent in paying their assessed transaction fees  Consolidated Billing Invoice Notice (CBI Notice) - A courtesy notification sent as a monthly that reminds vendors of the responsibility to report and pay fees  The CBI is the monthly roll-up of all invoices and reported sales/payments in MFMP Vendor Communications

 Transaction fee payments are based on fee-eligible payments that the vendor received the prior month  What generates a CBI?  Transactions that are not marked as exempt and result in a paid IR are considered part of the fee-eligible payments  If agency does not process payments through MFMP, a CBI is not be automatically created  Vendors will be required to submit a report  Once a vendor completes a self report, the report results in the generation of a CBI Page - 9 Billing Details

Page - 10  All reporting and fee payment is due by the 15 th calendar day of each month  Vendors should access their VIP account on the fifth business day of the month to review their CBI  Payments are accepted via check, money order, cashier’s check or Debit Automated Clearing House (ACH)  Vendors should record the Federal Tax Identification number, company name, and the CBI number on the payment Payment Details

 Transaction fee reports are based on fee-eligible payments received the prior month  Reporting of monthly fees:  STC vendors are requested to provide monthly reports if they have $0 in sales  STC vendors who receive payment are required to provide monthly reports that include all payments received for business received from their contracts  Non-STC vendors must report additional agency payments that were not included as part of the CBI  Most applicable for payments received where the agency did not invoice through MFMP Page - 11 Reporting Requirements

Page - 12  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

 Vendors log into their VIP account ( ace.com) ace.com  To review open CBIs or to submit a transaction fee report a vendor logs into their VIP account  etplace.com etplace.com Page - 13 Vendor View in VIP

 The landing page provides summary information about the vendor’s account:  Registration overview  Billing and Collections snapshot  Performance Tracking snapshot  The ‘I Want To’ drop-down box provides the vendor with a link to the Billing and Collections area Page - 14 Vendor View in VIP

 This page provides details of a vendor’s transaction fee reporting and payment history and also provides the vendor’s billing information  Vendors have the option to quickly navigate to:  Submit a Report  View Company Summary  View Full CBI History  View Self-Reporting History Page - 15 Vendor View in VIP

 To report for a specific month, a vendor can select from the ‘Report Period Selection’ box, and click ‘Add’  Once fee-eligible payments have been entered, the vendor clicks ‘Continue’ to see a summary of the information entered and calculated Page - 16 Vendor View in VIP

 The PUR 3776 Form is used for transaction fee reporting  Automated calculation will show the resulting transaction fees due  The vendor then clicks the ‘I Agree’ button to get a confirmation page and additional information about how to submit payment Page - 17 Vendor Considerations

Page - 18  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

Page - 19 CodeExemption ReasonCodeExemption Reason 1A Procurement under Section , Florida Statutes 1H Payment to vendor in exchange for providing health care services at or below Medicaid rates 1B Procurement under Section , Florida Statutes 1I Disbursement to recipient or sub-recipient; payment to satisfy maintenance of efforts requirements ; or payment to match federal award 1C Procurement under Chapter 255 Florida Statutes 2A Transaction is critical to the agency’s mission or necessary for public health safety and welfare 1D Transaction with a non-profit entity 2B Imposition of the fee would prevent the consummation of the transaction 1ETransaction with another governmental agency3Emergency transaction per Rule 60A-1.032(3), F.A.C. 1F Transaction with required sole provider or price paid and payee established by federal or private grant 1XContract Established prior to rule implementation 1G Payment to unregistered vendor under Rule 60A-1.030(3), F.A.C. 1RVendor reluctant to register Exemption requirements outlined in Rule 60A-1.032, F.A.C. MFMP Exemptions

Page - 20  If a vendor believes the transaction fees were assessed in error, a vendor may file a transaction fee dispute form  The dispute form is located on the MFMP vendor toolkit  Vendors must complete a dispute form and submit it to the MFMP CSD  MFMP will work with the agency dispute liaison to review the request Exemptions: Transaction Fee Dispute Process

Page - 21  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations for Exemptions  Resources  Contact Us Agenda

 Certain vendors are not required to register in MFMP as outlined in Rule 60A F.A.C; some examples include:  The vendor will be paid by Purchasing Card (Pcard)  Vendors exempt from disclosure under the Public Records Law, Chapter 119, F.S.  Exemption from paying the transaction fee does not in itself exempt the vendor or an agency from the registration requirements of Rule 60A , F.A.C. Page - 22 Vendor Level Exemptions

 Considerations for exemptions authorized by Rule 60A F.A.C:  Complete the Contract Exemption eForm  All associated releases and invoices will be tracked as ‘exempt’ for this contract  Agencies should maintain a completed copy of PUR 3777 (Notice of Transaction Fee Exemption) in the contract file Page - 23 Contract Level Exemptions

 Rule 60A-1.032, F.A.C. authorizes the DMS State Purchasing Director to approve a particular contract exempt from the transaction fee in advance of the procurement  The procurement must meet two elements: 1. Critical to the agency’s mission or necessary for the public health, safety, or welfare; and 2. Imposition of the fee would prevent the consummation of the transaction.  To request a contract exemption, complete PUR 3778 which is located on the MFMP buyer toolkit  PUR3778 must be certified by the agency head as per Rule 60A-1.032(2), F.A.C. Page - 24 Contract Level Exemptions

 Agencies can complete a Transaction Level Exemption at the requisition/invoice reconciliation level  In order to see the ‘Transaction Fee Exempt’ checkbox on a requisition, a customer must have the ‘Transaction Fee Exempt’ group in their profile  Agencies should complete the applicable form (either PUR 3777 or 3778) to confirm approval of an ongoing transaction fee exemption Page - 25 Transaction Level Exemptions

 An agency may exempt a particular transaction from the transaction fee if:  The Governor suspends purchasing regulations due to an emergency; or  The agency head declares an emergency under Section (5)(a), F.S., or other statutory basis Page - 26 Emergency Purchase

 MFMP reviews exempted transactions monthly  MFMP works with agency purchasing directors to understand irregular exempted transactions  Transactions that were exempted incorrectly will require correction  Quarterly results will be provided to the DMS State Purchasing Director Page - 27 Transaction Fee Exemption Review

LevelInitiatorDescription Vendor  Certain types of vendors may be exempt (non-profits, government entities, etc.)  Registration exemption requirements are outlined in Rule 60A-1.030, F.A.C. ContractAgency  Exemption that applies to all transactions conducted with a vendor for a specific contract within an agency  For MFMP contracts, the agency must flag a contract as exempt from the 1percent transaction fee by completing the Contract Exemption eForm  Must have the appropriate MFMP group (Contract Exemption) to initiate the contract exemption  Agency must maintain PUR 3777 (Notice of Transaction fee exemption) on file TransactionAgency  Allows agencies to indicate that all or a portion of the transaction is exempt from the transaction fee  Agency must check the fee-eligible checkbox and select the appropriate reason code  Must have the appropriate MFMP group (Transaction Fee Exemption) to initiate the transaction exemption request Page - 28 There are a handful of exemptions… Understanding Exemptions

Page - 29  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

Page - 30  Agencies can access the appropriate forms (PUR 3777 and 3778) via the MFMP toolkit under MFMP Forms Agency Considerations for Exemptions

Page - 31 Once you are logged into MFMP, click on ‘Company eForm’ under the ‘Create’ area of the screen Agency Considerations for Exemptions

Page - 32 Click the ‘Contract Exemption eForm’ link Agency Considerations for Exemptions

Page - 33 Complete requested information, including associated Master Agreement and Exemption Reason Agency Considerations for Exemptions

Page - 34 When creating a requisition/approving an Invoice Reconcilation, a transaction can also be exempted by clicking the ‘Transaction Fee Exempt’ checkbox Agency Considerations for Exemptions

Page - 35  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

Page - 36  Rule 60A-1, F.A.C.   Florida Statutes:  F.S. Procurement of Personal Property and Services: Definitions F.S.  h_String=&URL=Ch0287/SEC012.HTM&Title=-%3E2008-%3ECh0287- %3ESection%20012# h_String=&URL=Ch0287/SEC012.HTM&Title=-%3E2008-%3ECh0287- %3ESection%20012#  F.S. Procurement of commodities or contractual services F.S.  h_String=&URL=Ch0287/SEC057.HTM&Title=-%3E2008-%3ECh0287- %3ESection%20057# h_String=&URL=Ch0287/SEC057.HTM&Title=-%3E2008-%3ECh0287- %3ESection%20057#  F.S. Purchases from purchasing agreements and state term contracts F.S.  h_String=&URL=Ch0287/SEC056.HTM&Title=-%3E2008-%3ECh0287- %3ESection%20056# h_String=&URL=Ch0287/SEC056.HTM&Title=-%3E2008-%3ECh0287- %3ESection%20056#  MFMP vendor toolkit Helpful Links Resources

Page - 37 Contract Type When is the Report Due? When is the Payment Due? Fees Owed On DMS STC, ACS, and SPA 15 th calendar day of the month All payments received by state agencies and other eligible users of the contract All Others 15 th calendar day of the month All payments from state agencies Payment / Report Schedule

 Are there opt out provisions for vendors to not use MFMP?  The state made a firm commitment that MFMP is the procurement solution used  If vendors believe they are exempt from the transaction fee as defined in the statewide rules that govern MFMP, contact the agency to discuss the exemption  For additional information, Rule 60A F.A.C. addresses the use of transaction fee language in purchasing transactions (unless exempted),60A  In addition, Rule 60A F.A.C. addresses the transaction fee exemptions60A Page - 38 Vendor FAQ

Page - 39  Welcome/Introduction  Overview of 1% MyFloridaMarketPlace Transaction Fee  Vendor Considerations  Vendor View in VIP  Understanding Exemptions  Agency Considerations For Exemptions  Resources  Contact Us Agenda

Page - 40  Customer Service Desk at or  Transaction Fee Inquiries at or  Contact information: MyFloridaMarketPlace Phone: Fax: Website: Hours: Monday – Friday, 8:00 am – 5:30 pm EST Contact Us

Page - 41 Team Member Phone Number Communications Analyst F&A Process Operations Purchasing Process Analyst Vendor Management Analyst Contact Us

Page - 42 Thank you for your participation today! Questions?