District II Annual Meeting & Expo October 14 - 17, 2018 Ocean City, MD

Innovative Contracting for Research Goods and Services

The Challenge Purchasing TAKES TOO LONG Don’t tell me how to spend my money Why do I need a justification Sole source is easier than competition Collaborative – don’t want purchasing to impact relationship Contracts don’t cover new research

Process Improvement Balancing research needs with legal requirements Problem Statement: How can we reduce unnecessary administrative burden while following the law?

Discovery – Lean Process

Process improvement Balancing research needs with legal requirements Challenge Observations Takes too long Entire cycle time from funding to delivery (includes PI negotiations and collaboration) Collaboration Invested Justification No value to PI –supplier created Sole source easier Supplier created – RFP takes months No contract Buyers negotiating terms

Process Improvement Balancing research needs with legal requirements Researcher identifies and negotiates for highly specialized product/equipment Admin enters high dollar requisition PSDS buyer rejects requisition – law requires quotes or sole source form Frustrated researcher completes sole source form Admin resubmits requisition PSDS buyer negotiates complex terms & conditions for each purchase PSDS buyer completes PO and product/equipment lead time begins Researcher receives item

Process improvement Balancing research needs with legal requirements Observations Objectives Entire cycle time from funding to delivery (includes PI negotiations and collaboration) Create contracts to reduce purchase cycle time Collaboration/Invested Engage more suppliers – more often (Open Enrollment) Justification/ No value to PI Eliminate Supplier created – RFP takes months Contract purchases autocreate PO’s Buyers negotiating terms Include terms as condition of award

Researcher receives item Process Improvement Our Solution Researcher identifies and negotiates for highly specialized product/equipment Admin enters high dollar requisition – System autocreates PO and delivers to supplier Researcher receives item

Process Improvement Our Solution

Process Improvement Our Solution R&D Contracts: 120 publicly competed contracted vendors – and growing. This means: 3rd generation of open enrollment allows us to keep pace with R&D Competition requirements met - reducing administrative burden of sole source Contract purchases under $50k automatically approve - reducing PO cycle time Suppliers agree to terms & conditions - eliminating unnecessary negotiation Suppliers are managed – minimum discounts, negotiated shipping and payment terms Bonus: Added 10 catalogs - enabling P2P

Process Improvement Innovations Open enrollment – Addresses rapidly changing needs or removes barriers to SWaM’s Signed agreement with response – condition of award No additional contracts - reduction of administrative burden Quickly enables P2P program Supplier relationship management Additional services – executive search, transition consulting, etc

Process Improvement Our Solution

Process Improvement Our Solution

NAEP Journal Article