1. District II Annual Meeting & Expo
October , 2018
Ocean City, MD

2. Innovative Contracting for Research Goods and Services

3. 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

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

5. Discovery – Lean Process

6. 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

7. 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

8. 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

9. 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

10. Process Improvement
Our Solution

11. 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

12. 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

13. Process Improvement
Our Solution

14. Process Improvement
Our Solution

15. NAEP Journal Article