Using Data to Promote the Public Procurement Profession David Davis – Washington State DOT, WA Brian Smith – Multnomah County, OR Nelson Park – Seattle City Light, OR Jonathan White – Spikes Cavell, VA

David Davis – overall reasons for procurement teams to record and report their value Brian Smith - example processes to record your value Nelson Park – using analytics to support the value of public procurement narrative Jonathan White – calculating an ROI for procurement and procurement projects

How is your department measured by your bosses today? For most, it’s how much you cost…

It’s time to change that measurement to “What value did you add?”

Categories of Savings and Efficiencies Contract savings or discounts P-card rebates Settlements Spend Management Duplex printing as default Digitizing records vs printing reports Reusing serviceable materials Demand Management Property redistribution Investment recovery – disposal Supply chain management - VMI Supply Management P-card payments Online ordering Early influence on decision cycles Process Management

Measured Savings and Efficiencies

From Small Beginnings

Create a process for recording savings

Surplus Program – Our First Year

Percent of cost covered by value delivered Switching Perspectives – Procurement Saves your Agency Money FY 1429% FY 1563% FY 16?

More from Multnomah County Procurement presented-workshop-nigp-forum-2014

How are we doing? How do we “meaningfully” report results upwards? Um,…. Well…. I don’t know, but….

If you can’t measure it – it didn’t happen Who did it? What did we do? When did we do it? Why did we do it? How long did it take? Did we do it on time? What were the costs What were gains? How do we prove it? How do we measure it?

Metrics is the answer Steps: ( Be patient, this took us 2 years +) 1) Define what is important to the Stakeholders 2) Define success 3) Determine how success is measured 4) Measure and report the results 5) Revise as necessary Ask: Did we accurately answer the question that was asked?

Was Procurement involved? Is it consistent and will it stand up to review? What would have happened otherwise?

Average of all responsible responsive bids Bid accepted Simple and Endorsed RFP Savings Calculation

Alternative RFP Savings Calculations Budget – Bid Accepted Previous Price – Bid Accepted Market Rate – Bid Accepted Bid Accepted – Negotiated BAFO

Net revenue generated from sale of surplus Simple Surplus Savings Calculation

Alternative Surplus Savings Calculations Net Revenue – Staff Time Net Revenue – Staff & Scrap Value Net Revenue + Cost of Disposal – Staff

Efficiency Calculations (Cost to process invoice manually – cost of pCard/eProcurement transactions) * number of transactions avoided

Get As Complicated As You Like (Award value to local vendor * corporate/city/land tax rate) = Revenue 10 * Revenue = Cost of local support services avoided

Gains Procurement Team Cost Simple Cost of Procurement Calculation

$100,000 $500, or 20% Simple Cost of Procurement Calculation

For every $1 budgeted for the procurement team, we actually only cost the agency $0.80 so… Simple Cost of Procurement Calculation

Savings – Procurement Team Cost Procurement Team Cost Simple ROI Calculation

$300,000 – $200,000 $200, ROI Simple ROI Calculation

For every $1 you spend on procurement, we make the agency $0.50 in savings and efficiencies so… Simple ROI Calculation

 Recorded webinars  spend-analysis/ spend-analysis/  Savings Recording Support Documents  ah-county-presented-workshop-nigp-forum ah-county-presented-workshop-nigp-forum  Measure Registration 