Presentation is loading. Please wait.

Presentation is loading. Please wait.

Public Purchasing in Florida MyFloridaMarketPlace Brief September 16, 2005.

Similar presentations


Presentation on theme: "Public Purchasing in Florida MyFloridaMarketPlace Brief September 16, 2005."— Presentation transcript:

1 Public Purchasing in Florida MyFloridaMarketPlace Brief September 16, 2005

2 2  Overview of the Initiative  Benefits to the State / Agencies and Vendor Community  Update on Project Status  Challenges Contents

3 3 Background of the Initiative MyFloridaMarketPlace…Connecting Buyers and Vendors. Expanding Opportunities. Goals/Objectives:  Implement a single, statewide eProcurement solution enabling electronic buying and selling  Aggregate all Government spending into an efficient buying channel  Leverage new technology and capitalize on best practices  Generate savings through Strategic Sourcing and process efficiencies

4 4  5 year Contract (signed October 9, 2002) with option to extend for 3 or 5 years  Major Milestones:  Vendor Registration “Go Live” – Month 6 (March 2003)  Online Contract/Catalog Load “Go Live” – Months 8-9 (May-June 2003)  Pilot (DOT and DMS) “Go Live” - Month 10 (July 2003)  Statewide (Initial Users) “Go Live” – Month 12-30 (Sept 2003 - April 2005)  Financial Model:  No Appropriation Required; Project Paid for by 1% Transaction Fee on Purchases Processed Through System Initial 1% fee funds the LBR for DMS Once LBR is funded, 1% fee funds Accenture Base System Cost  After LBR and System Cost are funded, revenue is shared between State and Accenture (up to a cap)  Performance Management:  Service Level Agreements (monthly performance metric reports)  Independent Third Party Monitor Contract Overview

5 5 Scope  Full life cycle of purchasing (requisition to payment of goods and services)  Connects buyers and vendors through electronic exchange of catalogs, quotes, bids, contracts, purchase orders, invoices, etc.  Includes bids, quotes, auctions and reverse auctions  Integrated with the State of Florida’s financial system (FLAIR) ReceiveOrder SourceRequestPayApproval FLAIR

6 6 State and Agency Benefits  Better availability of purchasing information  Enhanced communication  Increased information in support of bid challenges  Reduced cost of goods and services  More choice  Reduced paperwork  Reduced overhead and processing costs  Faster order processing time  Improved consistency of operations

7 7  83% of total spend is made outside of SPURS system  Item level information (e.g., price, part number, quantity) only available on remaining 17% of spend  Item-level spend information critical input to strategic sourcing process  State Term Contract spend represents approximately 5% of total State spend Improved Spend Visibility Source: FLAIR data extract provided by Department of Financial Services on 11/13/2002 using posting dates between 7/1/2001 and 6/30/2002, SPURSView queries on P.O. issue date between 7/1/2001 and 6/30/2002, Accenture analysis MM = $ million

8 8 Summary Lot A – Office Supplies & Toner Cartridges Lot B – Paper & Non-Printed Envelopes Spend Base Line (3-Year Value)$51.5MM$8.7MM # of Vendors Invited / Participated15 / 11 (73%)16 / 9 (56%) Initial vs. Extended Duration0:45hr / 2:12hr0:45hr / 1:14hr # of Bids232106 Spreadsheet Training34 People Practice / Mock Auction Training28 People Potential 3-Year Savings $$16.8MM $1.5MM Potential 3-Year Savings %33% 17% Note: MM = Million The Office Consumables reverse auction generated identified savings of $18.3 million. Reverse Auction Results

9 9  Automated transaction workflow (purchase orders, approval processes, and invoicing)  Streamline business processes eliminating unnecessary steps  Drive process efficiencies at the State and Agency level estimated at up to 50% 1 Process Savings 1 Aberdeen 2001 study found eProcurement resulted in a 73% reduction in purchasing transaction costs, in addition to a 70-80% reduction in purchase order processing cycles. Forrester Research 2001 survey of 30 State and Local Governments estimates a savings of greater than 50%.

10 10 Vendor Benefits  Reduction in processing costs (up to 50%) driving faster payments  More effective channel for selling thereby reducing marketing costs  Access to more bid opportunities and information  Level playing field for all businesses

11 11 Project Statistics  Vendor Registration:  62,081 vendors registered in MyFloridaMarketPlace as of September 2005  19,422 of vendors registered are minority vendors (CMBE/MBE)  30,245 (49%) registered for eQuote  Agency Use:  Approximately 12,278 users across 32 agencies  Requisitions and POs: As of August 2005, 154,448 Requisitions and 148,784 POs have been created in the MyFloridaMarketPlace system, resulting in total spend of over $1 billion.  New rules eff. July 2003 (60A-1.030, 1.031,1.032)  Other Key Project Milestones:  The interface with the new Aspire statewide financial system being implemented by the Department of Financial Services. Project Update

12 12  Developing a system that is suited for public- sector procurement practices at an enterprise level  Generating agency buy-in and support for new business processes  Integrating with the State of Florida’s finance/accounting system  Tracking all spend through the system and fee-generation activity Challenges

13 13 Challenges  Retiring legacy systems with minimal disruption to the users  Training new users within agencies on the system  Generating use of the system to realize the identified benefits  Focusing on strategic sourcing efforts in the appropriate categories

14 14 Contact Information  For additional information, navigate to the MyFloridaMarketPlace site via the DMS website:  Navigate to http://dms.myflorida.com/dmshttp://dms.myflorida.com/dms  Click on the ‘MyFloridaMarketPlace’ link under Purchasing category  For Buyer assistance:  Contact (866) 352-3776 or BuyerHelp@myfloridamarketplace.com


Download ppt "Public Purchasing in Florida MyFloridaMarketPlace Brief September 16, 2005."

Similar presentations


Ads by Google