Purchasing Directors’ Meeting September 15, 2011

2 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

3 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

MatchMaker Conference & Trade Show 4 November 16-18, 2011 To help all small minority, women and service disabled veteran business enterprises connect with state government spenders, the Office of Supplier Diversity (OSD) hosts the MatchMaker Conference & Trade Show each year. The 2011 MatchMaker will be held at the Buena Vista Palace Hotel & Spa in Orlando. The agenda will be packed with events, offering attendees numerous opportunities to enhance their business skills and provide opportunities for small businesses to network with leading corporations, as well as state and local government purchasing officials.

5 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

6 Transportation, Facilities and Supplies Team 1 – Transportation & Energy Motor Vehicles (ITB No S) ―ITB issued September 7, 2011; new STC on schedule for November 1, ―If you have any questions, please contact Christopher Walker at or

7 Transportation, Facilities and Supplies Team 2 – Institutional Furnishings & Supplies Office Furniture and Files (STC ITB # F) ―ITB award recommendation pending executive review and approval. Anticipate October review. ―Current contract is in effect until March 1, Library Furniture (STC # ) ―Working on next contract action recommendation. Current contract is in effect until February 20, Carpet and Flooring Materials (STC # ) ―Anticipate new solicitation in Current contract is in effect until May 31, Purchasing Analyst, Brenda Wells:

8 Transportation, Facilities and Supplies Team 3: Public Safety & MRO Ammunition & Less-Lethal: ― New Contract Pending ― ITB Issued and Closed, August 2011 ― Award Recommendation on September 21, 2011 Purchasing Analyst: Mark Lovell, MRO (WSCA) ACS: ACS ― Contract Signed September 2, 2011 Purchasing Analyst: Greg Hill,

9 Transportation, Facilities and Supplies MRO ACS Benefits: # ACS Negotiated a dynamic Florida Market Basket (FL MB) consisting of aggressively priced high volume items based off agency and OEU spend FL MB will be updated quarterly to obtain best value on high volume items Access to WSCA's MB of over 1400 competitively priced core items Additional 3% discount applied to the18 categories under the WSCA bid ―e.g., HVAC 15% 18%, Safety 20% 23%, Cleaning 30% 33% ―“all other” categories Grainger Catalog/ Grainger.com: 10% 13% Over 900,000 SKUs available for next day ground deliver y MFMP Punchout catalog available by end of September Webinar to follow by end of October MRO STCs Rolling Up Once Expired Lamps & A/C Filters (STC# ): Expires 01/08/2012 Electrical Equipment (STC# ): Expires 11/13/2012 Can Liners (STC# ): Expires 12/31/2012

10 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

11 Technology, Office Equipment & Support Services STC Renewals PCs, Laptops, and Monitors Contract No ― Expires 2/29/2012 IT Network Infrastructure Contract No ―Expires 9/7/2012 Contract Manager: Joel Atkinson,

12 Technology, Office Equipment & Support Services STC Update Rental Vehicles - Avis ― New CCOC pick-up/drop-off location o DOR Parking Lot – effective 9/8/2011 ― Avis office still located in Building 4030 o Visit STC Website for details Contract Manager: Shameka Smith,

13 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

14 Services, Supplies, Insurance & Special Programs Team 6 – Services, Special Programs, & Insurance State Term Contracts/ACS –Online Legal Database Services - Renewed effective August 18, Please note new instructions on how to use the contract. OPPAGA currently reviewing agency use of this contract. Insurance Policies ―Aviation Insurance ― Expires September 28, Intent to award posted September 12, ―Boiler and Machinery Insurance ― Expires October 1, Renewal in progress. ―Automobile Insurance ― Expires October 20, Renewal in progress. Special Projects –Pharmaceutical solicitation in progress and will be on the street by November 1, All affected agencies are participating. Please contact Cliff Nilson ( ) with questions. New Staff on Team 6 –Corina Chiorescu ― Purchasing Specialist. Previously managed health services contracts for the Department of Corrections. Will assist in procurement and management of all contracts assigned to team.

15 Services, Supplies, Insurance & Special Programs Team 7 – SPA/Special Projects/Emergency Purchases Paper: Tissues and Towels ― Solicitation document is in final review. Expected launch before October 1. Recycling Services: End of Life Electronics Equipment ― Renewal is complete. The new agreement expires July 21, Potable Water and Food Grade Ice ― Expires August 2, Draft solicitation will be ready for management review by October 1, Reclaiming Mercury from Spent Lamps, Batteries ― Expires January 6, Please contact Frank Miller ( ) with feedback about this agreement.

16 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

17 Training and Certification Program Procurement Training Schedule (Tallahassee) Contract Administration – October Contract Management in Florida – October 13 Advancing Accountability: Best Practices for Contract and Grant Management – October 14 Legal Aspects – November 7-9 To check for updates to the training schedule please go to:

18 Training and Certification Program Procurement Training Schedule (Outside Tallahassee) Advanced Negotiation Workshop located in Ft. Lauderdale – October Advanced Negotiation Workshop located in Sanford – November 7-8 To check for updates to the training schedule outside Tallahassee please go to: tallahassee training

19 Training and Certification Program PMP Training Schedule Developing a Business Case – September Foundations of Business Analysis – November 1-3 PMP Exam Prep – December 6-8 To check for updates to the training schedule please go to:

20 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

21 Governance Chapter , Laws of Florida Implementing General Appropriations Act New requirement: Section 80 of the law requires agencies to report to the Senate President and Speaker of the House by June 30, 2012, with a list of products purchased from a source other than PRIDE when a comparable product could have been obtained from PRIDE. The report must include an explanation of why the product was not purchased from PRIDE. Signed into law, effective July 1, UPDATE: –DMS Departmental Purchasing created a spreadsheet to capture this data. –A report of all purchase orders can be run in MFMP Analysis where agencies select all of PRIDE’s commodity codes and deselect PRDIE as a vendor. State Agencies would still have to provide justification for each purchase, but this report would help identify the relevant purchases.

22 Governance Chapter , Laws of Florida SB 2152: Transportation New requirement: Requires that all state agencies develop and adopt assessment protocols for evaluating and determining whether equipment, machinery, or other inventory needs repair or restored before a request to replace the item is approved. Signed into law, effective July 1, UPDATE: –DMS Division of Real Estate Management created a decision tree in response to this requirement.

23 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

24 State Purchasing Operations/MyFloridaMarketPlace MFMP upgraded on September 6, Delivering the change our customers requested

25 State Purchasing Operations/MyFloridaMarketPlace MFMP 3.0 Week One Review Record usage levels Day One ―260 concurrent users, average is 75 ―333 at peak, which was 50 percent more than ever before Brief mid-day unavailability Wed., Sept. 7 ―Technical changes made before close of business o Database configuration change o Applied Ariba-recommended indexes o Additional tuning ―Immediate performance improvement ―Monitoring and tuning continue for the next four weeks ―Customers should see continuous improvement

26 State Purchasing Operations/MyFloridaMarketPlace MFMP 3.0 includes Sourcing 3.0 eQuote Use for informal quotes ―Purchases < $35,000 or Requests for Quote (RFQ) off state term contracts Create one Sourcing event to reach multiple vendors Process is 100 percent electronic ―Receive and track vendor responses in Sourcing 3.0 ―Vendors can offer product substitutions or provide other decision-making information Faster informal quote procurement-to-pay process Learn more in our upcoming webinars, Sept. 21 and 29

27 State Purchasing Operations/MyFloridaMarketPlace MFMP 3.0 Customer Support “What’s New in MFMP 3.0” webinars ―This week and next “Office Hours” webinars each Friday in September Exclusive MFMP recorded training “tours” ―“What’s New in MFMP 3.0” series ―Usual functional series Resume regular fall workshop training schedule in October _marketplace_toolkit/buyer_training_opportunities/tallahassee_training_sessions _marketplace_toolkit/buyer_training_opportunities/tallahassee_training_sessions Week One Kit, Daily Tips and updated manuals yers/myflorida_marketplace_toolkit/mfmp_upgrades/mfmp_3_0_go_live_resources yers/myflorida_marketplace_toolkit/mfmp_upgrades/mfmp_3_0_go_live_resources

28 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

Project Overview Sept 15, 2011 Purchasing Director’s Meeting Procurement Process Improvement Plan (PPIP)

30 PPIP Project Overview The PPIP Project is a DMS-led initiative aimed at improving the processes and efficiencies of State Purchasing’s business operations. The project team will leverage best practices to standardize and streamline its sourcing processes while providing valuable cost savings and contract management to the state. The project team will also support the roll-out of Enterprise-wide sourcing best practices.

31 PPIP Team State Purchasing CPO, Bureau Chiefs, and Purchasing Professionals State Agency Purchasing Directors and Contract Administrators Accenture Project Manager and MFMP Team Input and feedback from stakeholders, including you!

32 PPIP Project Management Documents Project Charter –Defines purpose, objectives and scope Project Management Overview –Used to market and promote PPIP Project Workplan –Detailed 16 month project plan for the PPIP with a timeline, milestones and deliverables –Project Workstream PPIP Management Communications Strategic Sourcing/Competitive Procurement - Phase 1 Non-Competitive/Exempt Procurement – Phase 2 Florida Best Practices Assessment – Phase 3 Adoption and Project Success Management – Phase 4

33 Project Charter “Ultimately, the team intends to identify and implement sourcing best practices which will result in increased utilization of MFMP Sourcing and lead to more effective, lower cost contracts and quicker sourcing through the standardization of processes. These best practices will provide the framework to State Purchasing who will provide support and guidance to all state agencies and other eligible users enabling each user to adapt the 7-Step Sourcing Methodology to its unique position. The team will also develop measures to judge the success of the project.”

34 7-Step Strategic Sourcing Methodology Profile Internally & Externally Develop Strategy Screen Vendors & Selection Factors Conduct Auctions & Shape & Negotiate Value Propositions Implement Agreements Conduct Industry Analysis Strategy Vendor Analysis Prepare Fact- Based Negotiation “Packages” External Profile Internal Profile TCO Model Value Propositions Assess Opportunities Profile Internally & Externally Develop Strategy Screen Vendors & Selection Factors Conduct Auctions & Shape & Negotiate Value High-Level Conduct Industry Analysis Vendor Analysis Prepare Fact- Based Negotiation “Packages” Kick-Off & Form Profile Internally & Externally Develop Strategy Develop Vendor Selection Factors Conduct Competitive Event Prepare Value Proposition & Award Implement & Manage Agreements Conduct High-Level Opportunity Analysis Develop Internal Profile Build TCO Model Finalize Scope / Strategy Develop Evaluation Questions Conduct Solicitation Develop Value Proposition Make Award Decision High-Level Opportunity Analysis Workplan Vendor Selection Factors ITB/ITN/RFP Communication Plan Kick-Off & Explore Opportunities - Engage Internal Team Implement Agreement Intent to Award (ITA) Develop External Profile Preliminary Business Case Scope / Strategy Establish Mandatory Criteria Document Savings Save Sheet Manage Agreement Execute Communication Plan Create Preliminary Business Case Engage External Team Implementation Plan Create Workplan Develop Solicitation Negotiation Plan (if ITN) Typical Deliverables Key Worksteps

35 Key Objectives The primary goals of the PPIP are to: improve the effectiveness and efficiency of sourcing through establishing processes and procedures that reflect best practices, better leverage the MyFloridaMarketPlace (MFMP) Sourcing module, and develop a continuous improvement protocol to better monitor and actively manage sourcing activities.

36 Project Timeline The PPIP Project will work with key stakeholders across all State Agencies throughout the initiative. Project WorkstreamTimeline 9/1110/1111/1112/111/122/123/124/125/126/127/128/129/1210/1211/1212/121/13 Procurement Process Improvement Project (PPIP) Management Communications Workstream Strategic Sourcing / Competitive Procurement Workstream - Phase 1 Non-Competitive / Exempt Procurement Workstream - Phase 2 Florida Best Practices Assessment - Phase 3 Adoption and Project Success Management Workstream – Phase 4

37 Major Deliverables The deliverables created during this initiative will redefine how the State of Florida sources goods and services. State Purchasing Sourcing Policies and Procedures Manual will provide detailed information on how to use a 7-step sourcing methodology in sourcing statewide agreements Training for all State Agency procurement professionals on how to apply the new policies and procedures, including demonstrations of the MFMP Sourcing tool, for use in future sourcing events Florida Sourcing Best Practices which will capture the new ways of working, the nuances of sourcing in the State of Florida, and a description of the new sourcing solution

38 Benefits to the State of Florida The State of Florida will benefit from this initiative by aligning and standardizing its sourcing activities to Best Practices. Increases control and management of spend Increases focus on strategic sourcing and category management to drive bottom line savings for the State Increases competition, visibility, and transparency of the goods and services that the State purchases Enables the procurement function to better adapt to customer needs by having a well-defined structure with standardized processes and procedures Fosters collaboration across entities to streamline key processes to better meet customer and supplier needs Optimizes the utilization of MFMP, while increasing efficiency, visibility and transparency of the goods and services that the State purchases. Provides Florida-specific competency training to procurement employees including daily work processes and job aids Leverages 7-Step Sourcing Methodology as project management tool for State procurement professionals Improves monitoring of procurement performance and promotes continuous improvement

39 Benefits to Purchasing Directors or Contract Administrators Policies and Procedures Manual can be used to develop best practice agency policies and procedures Training to ensure that users of the system are properly equipped to know their environment and are confident enough to adopt the structure for their next sourcing event Best Practices will increase transparency of agency sourcing strategies to allow for sharing and adoption of new models Project Management allows for key managerial insight into scope, tracking, resourcing and accountability Electronic Environment for document tracking, editing, storage, and retrieval provides for a total desk top solution to file management

40 Related Projects Sourcing Status Report –With PPIP driving towards full adoption of the MFMP Sourcing Tool for sourcing events, these status reports will provide management-level visibility to sourcing and contract management activities within State Purchasing (state agencies in the future). Catalog Focus Initiative –This initiative aims to ensure the best catalog strategy is in place for all state managed contracts. Procurement Balanced Scorecard –This scorecard is intended to provide better visibility to the health of the procurement function. The scorecard includes four quadrants that provide a comprehensive indication of the procurement function's performance.

41 Contact Us To find out more about the PPIP Project, please contact us: –Tim Gibney, CPO and Director of State Purchasing –Kelly Loll, Project Lead –Linda McDonald, Marketing & Communication Lead Whether you want to better understand the project scope, stay in touch through our communication channels, or get involved, we’d be happy to hear from you.

42 Purchasing Directors’ Meeting – 9/15/11 Agenda 2011 MatchMaker Conference & Trade Show Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification Governance State Purchasing Operations/MyFloridaMarketPlace Procurement Process Improvement Plan (PPIP) Reminder About Next Meeting Date

43 Purchasing Directors’ Meeting – 9/15/11 Next Meeting October 20, :00 – 4:00 pm