NIH Electronic Invoicing 1 Simplified Acquisitions Committee (SAC) March 25, 2015

2 Meeting Purpose & Agenda Agenda: NIH Electronic Invoicing & Pilot Results What’s Next for Electronic Invoicing Working Group & Process Improvement Next Steps Discussion / Q&A

3 Electronic Invoicing Pilot Results NIH Electronic Invoicing and “eVIP”: Since 2009, the overall Electronic Vendor Invoicing Program (eVIP) has involved: An initial analysis of potential solutions which led to the selection of iSupplier - part of the Oracle eBusiness suite, allowing for NBS to operate in a totally integrated environment Business process re-engineering A contracts strategy/invoicing instructions The development of an electronic registration process for vendors Pilot vendors Going forward, “eVIP” will not be used synonymously with vendors submitting invoices electronically through iSupplier – this will be referred to as just electronic invoicing and the tool that is used is iSupplier Pilot Results: 37 pilot vendors are enrolled, 30 of which are submitting invoices electronically; 7 of which have view-only access Annual expectation of 7,000 electronic invoices and $325million in payments (8% of NIH invoice volume) 5% cancellation rate - compared to 19% of manual invoices 2014 Pilot Phase 3: Stabilized new 2-way approval process Stress-tested vendor registration process Adapted contracts strategy Assessed customer support capacity and processes 23 new vendors registered 2013 Pilot Phase 2: 2-factor online registration developed 2-way match invoice approval process re-engineered Contracts strategy developed 6 new vendors registered 2009 Pilot Phase 1: Oracle iSupplier selected as enabling technology iSupplier deployed internally 6 vendors registered

4 What’s Next for Electronic Invoicing? Federal-Wide Electronic Invoicing by 2018 OMB has required all federal agencies convert to electronic invoicing by 2018 NIH is partnering with HHS to demonstrate the viability of Oracle iSupplier as an electronic invoicing platform and the benefits that using integrated Oracle technology bring to NIH staff and vendors Additional vendors will be invited to participate in NIH’s iSupplier pilot to support this Expand the Current Footprint Additional vendors may be invited to participate in NIH’s iSupplier pilot, for example: A current wait-list of about 10 volunteers and any additional volunteers The conversion of existing pilot law firms from view-only to invoice entry Vendors with awards against the new Chief Information Officers – Commodities and Solutions (CIO-CS) IDIQ could be given the option to invoice electronically Any additional vendors that are interested can contact for next steps on how to As new vendors express interest in participating and begin the registration process, it will be communicated within NIH to acquisitions and finance staff 1.The list of vendors that is maintained on the NBS portalNBS portal 2.Engagement with OFM and COs connected with the vendors 3.Announcements and updates at meetings like the AMC, SAC, etc.

5 Working Group & Process Improvement Process Improvement to Support Electronic Environment The pilot has helped to uncover some opportunities for process improvement that will help streamline electronic invoicing for vendors and internal NIH staff The eVIP Working Group has been engaged since the fall of 2012 and is now reconvening to discuss, troubleshoot and refine some specific business processes This group has reconvened to provide the NIH and vendor communities consistent guidance on the following key topics: 1.Vendor electronic invoice attachment / invoice description guidelines 2.Line item descriptions at the time of award creation to support vendor line-level matching 3.Receiving guidance for electronically submitted invoices (3-way) The Working Group had its kick off meeting on March 4th and will be splitting into smaller task forces to tackle each of these topics A list of your organization’s participants is included in the Additional Information section

6 Next Steps We Will Provide Regular Updates on: New vendor registrations Working Group progress and process improvement recommendations How You Can Help: Please check the list of Working Group members to ensure your organization is represented Please let us know what information or material would be beneficial to you and your staff Please support electronic invoicing within your communities Please share your feedback

7 Additional Information

8 Current NIH Pilot Vendors NIH Pilot Vendors Roberts Oxygen Co Inc. Capital Technology Information Services Inc. Emergint Technologies Inc. Information Management Services Inc. Technical Resources Inc. Enterprise Resource Performance Inc. Intellipoint Consulting Inc. RemedyBiz Inc. Illumina Inc. Thermo Fisher Scientific (Ashville) LLC SRA International Inc. (2 sites) + Johns Hopkins + -Medical Institute -University -Bayview Medical Center Sapient + -Sapient Corporation -Sapient Government Services Inc. Deloitte Consulting LLP NIH Pilot Vendors 270Net Technologies Nova Research Corporation Net Esolutions Corporation Cetech Inc. Sobran Inc. DLT Solutions Biocryst Pharmaceuticals, Inc. Ripple Effect Communications Inc. Blue Tech Inc. Louviere Stratton & Yokel LLC Steven J Berkowitz (Independent Contractor) John D Mahoney (Independent Contractor) *Washington Gas Energy Services Inc. *Cantor Colburn LLP *Leydig Voit & Mayer *Edwards Wildman Palmer LLP *Sheridan Ross P.C. *Foley & Lardner LLP *Polsinelli Shughart P.C. * Currently have view-only access in iSupplier – not submitting electronic invoices + iSupplier registration for NIH is based upon Tax Identification Number (TIN). In three instances, the parent company had multiple TINs designating separate contracting authority but are using a common billing site.

9 Working Group Summary Meetings Summary/Informational Meetings NameOrganization All Task Force Members Marcie LissauerCIT nVision Cynthia CotterNCI Kelly FowlerNCI Gary OlsemNHLBI Brock SmithNIAID Tim SohoNICHD Alex NavasNIDDK/NLM Leslie LynchNIEHS Daisy GarrettOTT/OIR Randall TiquiNCI Amy SillerNIDA

10 Working Group Process Improvement Area 1: Vendor Invoicing Process / Documentation Guidance Vendor invoicing process/documentation guidelines Description: Vendors are not given consistent guidance on what they should (or should not) attach to their electronically submitted iSupplier invoice, e.g. a copy of their internally generated invoice; other support documentation. The case is the same for the description that they enter into iSupplier for an invoice Issue: This inconsistency has led to confusion for internal and vendor staff, and in some cases invoice cancellation Task at Hand: We would like this group to provide input on how attachments and descriptions are used; and where viable, create consistent guidance for vendors and internal NIH staff Input Needed: OFM staff, COs, Buyers and Receivers who have experience with current pilot vendors (especially Roberts Oxygen) and can share context on challenges, and/or best practices you have established with your vendor. Task Force: Vendor Electronic Invoicing Documentation/Processing Requirements NameOrganization Munir EsmailCIT nVision Lily BissonNBS Kate MuirNCI Jame ChangNCI Charlotte McCormackNCI Catherine KennedyNCI Rosa LopezNCI Colleen EnnisNCI Miguel DiazNCI OA Sara McLaurinNCI Joanne DeshlerNHLBI Zina D. CrewsNHLBI Mike BradyNHLBI John ManouelianNIAID Dana MonroeNIAID Annette CarterNIDA (NINDS) Francisca (Fran) WagstaffNIEHS Shari ShorNLM Greg BenedictNLM Suet VuNLM Edward J. KostolanskyNLM Malti BhatnagarOFM CA Juanita CostonOFM CA

11 Working Group Process Improvement Area 2: Line Item Descriptions at the Time Of Award Creation Line item descriptions at the time of award creation Description: A critical part of electronic invoicing is that vendors are responsible for matching their invoices to the correct line item. Line item descriptions are available in iSupplier to assist with this process, but are often unclear and inconsistently used Issue: Vendors struggle to match their invoice to the correct line item, which leads to invoice cancellation Task at Hand: We would like this group to provide input on line item description standards for NIH staff to incorporate at the time an award is created Input Needed: Those who are entering line item descriptions at the time of award creation, along with others who are impacted by or have an influence on those descriptions Task Force: Line Item Descriptions NameOrganization Munir EsmailCIT nVision Lily BissonNBS Kate MuirNCI Jame ChangNCI Charlotte McCormackNCI Catherine KennedyNCI Rosa LopezNCI Miguel DiazNCI OA Joanne DeshlerNHLBI Annette CarterNIDA (NINDS) Francisca (Fran) WagstaffNIEHS Danielle HarwoodNITAAC Shari ShorNLM Greg BenedictNLM Kevin InmanNLM Suet VuNLM Malti BhatnagarOFM CA Juanita CostonOFM CA

12 Working Group Process Improvement Area 3: Receiving for Electronically Submitted Invoices Receiving for electronically submitted invoices (3-way) Description: Many Receivers use an invoice as the basis for entering receiving in iProcurement, an issue which has been brought to light through electronic invoicing as that invoice image is not available if a vendor does not attach it Issue: Invoices should not be the basis for receiving Task at Hand: We would like this group to provide input on what types of information/documentation a Receiver should use to enter receiving, communication/training strategies for the receiving community; and implications for vendor attachment/description guidance Input Needed: Receivers who can share their experience/process for entering receiving, what information is needed, and good sources for that information Task Force: Receiving for Electronically Submitted Invoices NameOrganization Munir EsmailCIT nVision Lily BissonNBS Kate MuirNCI Jame ChangNCI Colleen EnnisNCI - OD ARC Zina D. CrewsNHLBI Debbie JohnsonNIAID Annette CarterNIDA (NINDS) Francisca (Fran) WagstaffNIEHS Danielle HarwoodNITAAC Shari ShorNLM Greg BenedictNLM Kevin InmanNLM Malti BhatnagarOFM CA