1. E-Commerce Discussion Panel Panelists: Joan Matsumoto, MA Carol Wilson, CT Mike Mangum, NC Tina McLamb, NC

2. eProcurement in Massachusetts April 4, 2006

3. Online Bidder QuickTipshttp:// www.mass.gov/osd What is an eProcurement System? Typically, “e” implies web-enablement, but generally means “paperless.” Use of the term “eProcurement” may vary from state to state May be a single system or many systems May be fully or partially integrated, or not integrated at all May support only a portion of the state’s public entities or all May be required by law or regulation for some or all processes

4. Online Bidder QuickTipshttp:// www.mass.gov/osd eProcurement Processes Record Management Vendor Management Bidder Notification Record Management* Bidder Registration BidsContractsPurchases Payments Bid Submission Bid Tabulation Bid Disposition Order Receipt Catalog Creation/Management Catalog Purchasing Reconciliation Encumbrance Payment Bidder Notification Bidder Conference * BIDS: WTO Notices, RFI, RFP, ITB, Internal Requisitions Reverse Auction Request for Quote

5. Online Bidder QuickTipshttp:// www.mass.gov/osd Public Bidder Questions Required? Fee/Bond? Bidder or Buyer Managed? Goods & Services, Human and Social Services, Construction? Single or multiple systems/sources within the state?

6. Online Bidder QuickTipshttp:// www.mass.gov/osd Comm-PASS is the Commonwealth Procurement Access & Solicitation Site Launched in 1997 to increase competition, value through public access Home-coded “bulletin board” replaced by BearingPoint system in 2004 Data system supports workflow, transactions for bid-contract processes Required posting site for announcements/bid specifications for: any executive department goods/services, human and social services bid exceeding $50K all public entity construction exceeding $10M Open to any public entity in Massachusetts at no charge, includes free training Posting are accessible at no charge to anyone with Internet access THERE IS NO PRE-QUALIFICATION/REGISTRATION IN MASSACHUSETTS eProcurement in Massachusetts: Comm-PASS Bidder Notification Record Management Bidder “Registration” Bid Submission Bidder Conference

7. Online Bidder QuickTipshttp:// www.mass.gov/osd Statewide Contract Procurements on Comm-PASS All announcements, requests for information, solicitations, and contract awards All written questions must be submitted via the Forum All written answers are posted via the Forum Bidders may elect to subscribe for optional value-added services Automatic notification of new posting and amendments for solicitations, contracts, forums Appear in the Business Directory, a publicly accessible “yellow-pages” style web-listing Create and submit responses online to eliminate paper, waive and defer wet-ink signatures Bid tracking through a customizable system “desktop” Subscription is not required to access or respond to any posted opportunity Subscription fees are based on Massachusetts fee policy: avoidable, based on cost offset

8. Online Bidder QuickTipshttp:// www.mass.gov/osd Public Access

9. Online Bidder QuickTipshttp:// www.mass.gov/osd Public Access

10. Online Bidder QuickTipshttp:// www.mass.gov/osd

16. Subscriber Desktop

17. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

18. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

19. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

20. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

21. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

22. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

23. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

24. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

25. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

26. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

27. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

28. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

29. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

30. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

31. Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop

32. E-Commerce in Connecticut Carol Wilson, C.P.M., Director of Procurement State of Connecticut April 4, 2006

33. Online Bidder QuickTips E-Commerce History in Connecticut 1997 – Developed website with general procurement information – Contracts viewable online. 1998 – Inception of online Bidder Notification System (moved away from paper mailing of bid notices and advertising in publications).

34. Online Bidder QuickTips 2000-2002 – Announced and Implemented Connecticut’s 1 st agency online ordering system – “Orderlink” for contract purchases. 2003 – Migrated from “Orderlink” to statewide ERP system (integrated central accounting, purchasing, personnel and payroll system). 2005 – Enhanced online Bid Notification System to State Contracting Portal (all agency solicitations posted here – open, transparent, accessible government). E-Commerce History in Connecticut

35. Online Bidder QuickTips 2003-2006 – Focus on obtaining clean Data Catalogs required from Suppliers for ERP purchasing system (E-Catalogs). 2005-2006 – Developed and Rolled-Out Online Small/Minority Business Certification Application System. E-Commerce History in Connecticut

36. Online Bidder QuickTips What’s Next in Connecticut? 2006 – Expect to roll-out online Supplier Performance Reporting & Resolution System (interactive between agency, procurement office and suppliers). 2006 – Developing online Bid Response System.

37. Online Bidder QuickTips How can Suppliers Assist Us? Utilize Procurement web options (bid notification systems, online certifications, bid response systems). Communicate and Provide Constructive Feedback for Improvements Provide Procurement Staff with Technical Contacts who can competently respond to E- Catalog needs.

38. Online Bidder QuickTips External (Supplier) Challenges of E-Catalogs Complete and Accurate Catalogs (contract data) Properly Formatted Catalogs (field names, field lengths, field types, required vs. optional fields, etc.) Timely Catalog Updates/Maintenance

39. Online Bidder QuickTips Internal (State) Challenges of E-Catalogs System Functionality Timely Catalog Updates/Maintenance Impact of Errors on other ERP System modules Impact of Integrity of Data on Accounting Functions/Audit.

40. Online Bidder QuickTips Keys to Success in E- Commerce Initiatives Be Flexible Stay informed of latest initiatives Communicate Participate

41. Online Bidder QuickTips Questions?

42. NC E-Procurement @ Your Service Overview April 2006

43. 42 E-Procurement Overview The system, which went live in October 2001, is comprised of the Ariba Buyer web-based software product with public sector extensions, a Statewide Vendor Registration application, and a marketplace for performing informal quotes electronically. E-Procurement is an effort to transform the way the State of North Carolina purchases goods and services, as follows: n It is an enterprise e-procurement system that allows government entities to aggregate their purchases to obtain better prices from their suppliers. n Users are empowered to use online requisitioning through the Internet with direct access to state term contracts. n Entities can choose to decentralize the purchasing process. n The eQuote tool allows users to submit requests for quotes to specific vendors for items below the sealed bid and advertising requirement, replacing more manual quoting processes. Responses (quotes) are submitted and evaluated electronically. n Orders and approvals are routed electronically.

44. 43 E-Procurement Statistics E-Procurement Statistics: As of March 5, 2006  Over 1 million purchase orders issued  Over $5.6 billion in purchases  Over 45,000 vendors registered  Over 13,000 system users  238 purchasing entities using system Who is using NC E-Procurement @ Your Service?  All State Agencies - 29  Institutions and Hospitals - 15  Local Education Authorities (K-12 Public Schools) – 115 of 115  Community Colleges – 57 of 58  Local Governments - 22

45. 44 E-Procurement Organization n Sponsorship –Governor’s Endorsement –Enabling Legislation –Sponsoring Agencies Purchase and Contract Information Technology Services Office of the State Controller n Enterprise-Wide –State Agencies –Institutions & Hospitals –K-12 Public Schools –Community Colleges –Local Governments

46. 45 E-Procurement Organization n Advisory/Work Groups Cross Entity Representation –Advisory Committee –Users Groups –HUB Office n Project Management –State Project Director –State/Accenture Management Committee –Accenture as Application Service Provider n Business Model –No Appropriated Funding –Transaction Fee on Purchase Orders

47. 46 E-Procurement Features n Functionality –Electronic Requisition –Automated Rule-Based Approval –Funds Checking –P-Card –Electronic Purchase Orders –On-line Receipts –eQuote/Informal Quote Tool –Catalogs/Term Contracts –Vendor Registration/HUB Certification –Reporting n Core Software –Ariba –eQuote (custom) –Vendor Registration (custom)

48. 47 E-Procurement Scope n On-line integration with six financial systems –State Agencies/Institutions –1 Financial System –Community Colleges –1 Financial System –K-12 Public Schools –4 Financial Systems n Additional Opportunities –Reverse Auctions –Strategic Sourcing –Integration with Universities –Continued statewide rollout to local government

49. 48 Support for E-Procurement Program n40 personnel supporting E-Procurement operations nCall center handling roughly 500 customer inquiries per week; also supporting user communications and training nApplication support providing ongoing maintenance and enhancements for the system nTechnical support hosting the E-Procurement infrastructure and providing 99.5% availability nNew Development Team responsible for implementing local schools, community colleges, and universities nCatalog enablement managing content for approximately 125 State Term Contracts and 500 catalogs nBilling team creating and processing an average of 6,000 invoices per month to 17,000 vendor locations.

50. 49 Benefits of E-Procurement n Reduced prices through increased competition and aggregation of demand n Increased operating efficiency and reduced administrative costs n One Stop Shopping n Online quoting tool – eQuote n Increased order accuracy n Online catalogs for statewide term contract items n Electronic approval flows n Access to new vendors n Auto-Tabulated quotes

51. 50 E-Procurement Benefits Analysis  In reaction to staffing and budget constraints from 2001 through 2003, the State leveraged E-Procurement to spend its dollars more efficiently and manage the procurement function more effectively. Price reduction savings over first two years of E-Procurement operations: $127 million  Cost savings of $127 M are the result of a 7.24% decrease in prices.  First-class purchasing system has been implemented and maintained with no State funds expended as a result of an innovative public / private partnership.

52. 51 Specific areas of measured benefit n eQuote: Savings average 26% on items purchased using eQuote. n Term Contracts: Savings realized range from 3% to 23% on term contracts re-bid as a result of changes in contract strategy due to eProcurement. n Cycle Time Reduction: Process savings range from 26 – 50% when the elapsed time from order creation to goods receipt was measured for four agencies one year prior to E-Procurement go-live and one year after E- Procurement go-live.

53. 52 Awards Received:  Digital Government Award for Innovation in State Government  Best of the Web Award – 1st place, Government to Government category  IT Cronin Award – Honorable Mention E-Procurement Honors