1. FAPPO Meeting Ft. Lauderdale April 20, 2004 State Purchasing

2. 2 FAPPO Meeting April 20, 2004 Agenda  Welcome / Meeting Overview  Roadmap to Excellence Audit Report  Action by State Purchasing  Questions  Further Information

3. 3 FAPPO Meeting April 20, 2004 Agenda  Welcome / Meeting Overview  Roadmap to Excellence Audit Report  Action by State Purchasing  Questions  Further Information

4. 4 Roadmap to Excellence Audit Report Report Details Roadmap to Excellence Audit Report Report Details EOG IG’s Office Report No. 2003-3 Roadmap to Excellence in Contracting http://www.flgov.com/eog/inspector_general/

5. 5 Roadmap to Excellence Audit Report Methodology and Scope 100 different audits, July 1999 – June 2002 494 findings regarding procurement, contracting, and outsourcing Seven agencies, OPPAGA, and Auditor General

6. 6 Roadmap to Excellence Audit Report Problematic Core Activities Performance Monitoring (45%) Procurement Methodology (20%) Contract Writing (17%) Needs Assessment (7%) Contract Closure (1%)

7. 7 Roadmap to Excellence Audit Report Factors Contributing to Problems Piecemeal statutes and rules Lack of statewide guidance No statewide training or certification Restricted sharing of best practices Wide variety of agency processes and procedures in awarding and managing contracts Inadequate systems for monitoring and rating vendor performance Lack of formal procedure for performing and documenting needs assessment Lack of expertise in negotiating contracts

8. 8 Propose legislative and administrative changes to address inadequacies and inconsistencies. DMS should accept and implement the leadership role required by Florida Statute –develop formal procedures for needs assessments, standard formats for contracts –foster user groups to share best practices and common problems. Undertake a statewide training initiative, and include incentives to encourage professionalism and certification. Create a uniform vendor rating system to include links to websites, closeout evaluations, and a method for other agencies to access performance evaluations. Propose legislation to enact a law similar to the federal Truth in Negotiating Act. This will help level the playing field between state negotiators and private contractors. Roadmap to Excellence Audit Report Recommendations Roadmap to Excellence Audit Report Recommendations

9. 9 FAPPO Meeting April 20, 2004 Agenda  Welcome / Meeting Overview  Roadmap to Excellence Audit Report  Action by State Purchasing  Questions  Further Information

10. 10 Action by State Purchasing Overview Leadership role Statewide training initiative Uniform vendor rating system Legislative and administrative changes Legislation similar to federal Truth in Negotiating Act

11. 11 Leadership Role DMS/State Purchasing Mission DMS Mission To become a customer focused agency providing effective and efficient services in order to better enable state agencies and employees to deliver the Governor’s priorities to the people of Florida. State Purchasing Mission To gladly deliver useful and innovative purchasing services in order to become a customer focused agency providing effective and efficient customer services.

12. 12 Action by State Purchasing Leadership Role – Best Practices/User Groups At least monthly meetings Active in NIGP, NASPO, and FAPPO http://dms.myflorida.com/purchasing

13. 13 Action by State Purchasing Leadership Role – Standard Contract Formats Proto-type developed and launched in spring 2002 Templates part of new rulemaking proceeding Instructions to bidders General conditions that can be superceded

14. 14 Action by State Purchasing Leadership Role – Needs Assessments Governor’s Center for Efficient Government (Executive Order 04-45 (3/11/04): What: To be the enterprise wide gateway for best business practices in outsourcing… Why: … in order to improve the way state agencies deliver services to Florida’s citizens.

15. 15 Governor’s Center for Efficient Government Oversight Board Secretary Bill Simon Department of Management Services Dr. Jim Zingale Department of Revenue Secretary José Abreu Department of Transportation Dr. John Agwunobi Department of Health Director Susan Pareigis Agency for Workforce Innovation

16. 16 Governor’s Center for Efficient Government Initial Goals Develop statewide outsourcing standards and a business case template applicable to any proposed outsourcing project. Review existing outsourcing plans within the state agencies to ensure compliance with Center standards and business case, execution of effective contract language with vendors and implementation of successful change management. Propose for the Governor’s consideration by July 1 an initial list of specific outsourcing projects and initiatives that can be developed over the next 3 years.

17. 17 Governor’s Center for Efficient Government Standards Create a gateway process for all outsourcing projects: –Business Case –Procurement –Contract management –Change management –Performance measurement

18. 18 Business Case Gate 1 Procurement Gate 2Gate 3Gate 4 Change Management Contract Management Post Implementation Governor’s Center for Efficient Government Project Gate Management Process Stage 1Stage 4Stage 5Stage 3Stage 2 Monitor Current Projects New Projects

19. 19 Governor’s Center for Efficient Government Outsourcing Projects Review past outsourcing projects to highlight successes and identify any best practices the state already has. Review of current projects –Craft recommendations for any improvements; assist agency in process to address issues identified. Recommendations for new initiatives –Create a portfolio of initiatives for the first set to be implemented – different sizes, scopes, policy arenas; complete business cases. –Recommend other outsourcing initiatives that can be implemented through 2006; identify working groups to begin gateway process.

20. 20 Governor’s Center for Efficient Government Employee Transition Management Develop recommendations for innovative programs to effectively manage transitioning employees and continue to improve upon the State of Florida’s workforce. Process to help place in or out of state government. Create incentives for agency management to fully participate in the competition process.

21. 21 Governor’s Center for Efficient Government Contact Information Governor’s Center for Efficient Government 2105 The Capitol Tallahassee, FL 32399 (850) 414-9200 (850) 414-9179 (fax) Pam Pfeifer, Director pam.pfeifer@myflorida.com

22. 22 Action by State Purchasing Overview Leadership role Statewide training initiative Uniform vendor rating system Legislative and administrative changes Legislation similar to federal Truth in Negotiating Act

23. 23 Action by State Purchasing Statewide Training Initiative First Wave –36 people –16 agencies (13 state agencies – 33%) –Content General Public Procurement Jan 7-9 Intermediate Public ProcurementFeb 16-18 Advanced/Management Public ProcurementMar 15-19 Public Purchasing in Florida (FL specific)Mar 29-30 Negotiation StrategiesApr 21-22 Negotiation in Florida (FL specific)Apr 23 Contract ManagementMay 19-20 Contract Management in Florida (FL specific)May 21 Second Wave to start in September – see website meeting material

24. 24 Action by State Purchasing Overview Leadership role Statewide training initiative Uniform vendor rating system Legislative and administrative changes Legislation similar to federal Truth in Negotiating Act

25. 25 Action by State Purchasing Uniform Vendor Rating System Polled existing agency practices Developed framework (see 10/14/03 NIGP seminar materials on our website) Working on technical implementation – expected next fiscal year

26. 26 Action by State Purchasing Overview Leadership role Statewide training initiative Uniform vendor rating system Legislative and administrative changes Legislation similar to federal Truth in Negotiating Act

27. 27 Action by State Purchasing Legal Changes HB 1819 Chapter 60A-1 changes

28. 28 FAPPO Meeting April 20, 2004 Agenda  Welcome / Meeting Overview  Roadmap to Excellence Audit Report  Action by State Purchasing  Questions  Further Information

29. 29 FAPPO Meeting April 20, 2004 Agenda  Welcome / Meeting Overview  Roadmap to Excellence Audit Report  Action by State Purchasing  Questions  Further Information

30. 30 State Purchasing Further Information Fred Springer (850) 487-1898 Fred.Springer@MyFlorida.com http://dms.myflorida.com/purchasing