Bernadette DavisBernadette DavisHUB Coordinator, Texas Department of Information ResourcesHUB Coordinator, Texas Department of Information Resources
Information and Communications Technology (ICT) Cooperative Contracts
ICT Cooperative ContractsWHAT DO THEY DO?
Create savings for taxpayers by aggressively leveraging the state’s buying power to lower prices and obtain best value
Optimize the purchase of ICT commodities and services Streamlines process for customers
Reduces duplicate effortsReduces purchasing and contract cycle time
Provides ICT subject matter expertiseSimplifies the sales process for vendors
Include ICT commodity items as contracted product offeringsHardware and softwareTechnology staffing servicesOther ICT services with high customer demand (seat management, technology training, etc.)Maintenance
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Who Are DIR’s Customers? Sales by Channel
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* Telecommunications Go DIRect sales of $73.7 M were distributed to channels via prorated percentage of sales.
Education$527,937,823
53%
Local$229,679,819
23%
Out of State$275,110
>1%
State Agencies$235,461,681
24%
ICT Cooperative Contracts - Statistics
$719$805
$993
$0$100$200$300$400$500$600$700$800$900
$1,000Millions
FY05 FY06 FY07
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381 Cooperative Contracts
266 Total Resellers
121 HUB Prime Vendors
121 HUB Resellers
38% growth in the last 2 years (FY05-06)
Over $1 billion projected for FY08
ICT Cooperative Contract Sales
Where Are DIR’s Customers Located? REGIONAL DISTRIBUTION OF FY07 SALES
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$392
$219$200
$79
$34 $24 $24 $21
$0
$100
$200
$300
$400
Millions
3 2 1 4 5 6 7 8
Reg. 5$34 M
Reg. 2$219 M
Reg. 8$21 M
Reg. 7$24 M
Reg. 6$24 M
Reg. 1$200 M
Reg. 3$392 M
Reg. 4$79 M
*Telecommunications Go DIRect
sales of $73 M were distributed to regions
via pro-rated percentage of sales.
What Does DIR Sell? Sales by Commodity Type
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COMMODITY SALES % of TOTALComputers (desktops, notebooks, servers, etc.) $ 445 M 44.8 %Software 135 M 13.6 Network 131 M 13.2 Services 86 M 8.7Telecommunications (wireless communications, Internet access, etc.) 74 M 7.5
Other (peripherals, projectors, scanners, cameras, etc.) 47 M 4.7
Printers 44 M 4.4Security 8 M 0.8Data Storage 8 M 0.8Maintenance (hardware, software) 6 M 0.6Training 5 M 0.5Videoconference Equipment 4 M 0.4
TOTAL $ 993 M
Legislative Update - Effective September 1, 2007
HB 2918
Repealed Catalog Information System Vendor (CISV) program
Directed the Comptroller’s Office to adopt rules for IT purchasing
Gave DIR the ability to enter into Multiple Award Schedules (TxMAS)
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Legislative Update - Effective September 1, 2007
HB 2918
Repealed Catalog Information System Vendor (CISV) program
Customers may purchase IT Commodity items off of the DIRcontracts by simply issuing a purchase order directly to the DIR contracted vendor.
If the item is not available on a DIR contract, purchases shouldbe made in accordance with the purchasing methods established by the Comptrollers office.
Less confusion for the Vendor communityCISV Vendor vs. DIR VendorSeparate website no required
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Legislative Update - Effective September 1, 2007
HB 2918
Directed Comptroller’s Office to adopt rules for IT Purchasing
State Agencies purchase IT Commodity items off of the DIR contracts If the class/item code is not available on a DIR contract, purchases should be made via other procurement methods authorized by statute
$0.00 - $5000 – May Spot Purchase$5001 - $24,999 – Formal quotes from at least 3 vendors based on written specifications$25,000 and above – Post formal bid on ESBD for at least 14 daysEstablished new RFO process
IT Commodity Codes still marked with an asterisk on the CMBL-Automated Information System
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Legislative Update - Effective September 1, 2007
HB 2918
Gave DIR the authority to enter into Multiple Award Schedules (TxMAS)
Transferred IT TxMAS, Schedule 70 contracts from TBPC to DIRConducted review of all 130 contracts transferredKeeping approximately 10 contracts
Will be amended Will be posted to the DIR website
30 day termination letter last week for othersNew contracts on case by case basis
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Doing Business with DIRHow do vendors get on DIR’s list?
DIR competitively bids all contracts
DIR establishes Statewide Master contracts with vendors for products or services when sufficient customer demand exists
DIR posts request for offers (RFOs) on the Electronic State Business Daily (ESDB)
RFOs are generally posted for 30 days
Many contracts include multiple awards
Contracts are awarded for a specified term
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Doing Business with DIRHow do vendors become DIR resellers for a specific manufacturer/publisher?
Resellers may respond to the posted Request for Offer (RFO)
Resellers can be named as Subcontractor, by a prime vendor
Prime vendors / manufacturers can amend their HUB Subcontracting Plan (HSP) to include additional resellers
What are the requirements to be a reseller? Resellers must be authorized to sell the appropriate manufacturer/publisher’s product
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Doing Business with DIRTake advantage of the business opportunities at DIR
Use the DIR Web site as a resource for information on existing and future opportunities – www.dir.state.tx.us
Bid as the prime vendor on contract opportunities as they are posted
Work with prime vendors to become subcontractor
No DIR contract found? Ask about the New Product or Service request form (NPS)
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Doing Business with DIRDIR Store
Provides searchable access to all “Go DIRect” contracts
Provides valuable information for specific customer groups
Describes the “Go DIRect”process in detail
Gives access to current contracting initiatives
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Future Contracting OpportunitiesCurrent Contracting Initiatives
Posted on DIR’s Web site (www.dir.state.tx.us/store/cci)to improve communications between DIR's vendors and customers
Lists initiatives by procurement stagePlanningRFO Postings – links directly to the posting on the Electronic State Business Daily (ESBD) EvaluationRecent Awards
Each initiative has a brief description, expected phase completion date and contact information
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Current Contracting Initiatives – By Stage
Example
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Stage Type of Services/Products
Description Start Date
RFO Release
Contact Person
PLANNING IT Staffing Services Re-bid Staffing Services contract to allow opportunity for new vendors. Vendors with existing contracts does not need to re-bid.
Jun 07 Oct 07 [email protected]
Vendor Resources
Department of Information Resourceswww.dir.state.tx.us
Current Contract Initiatives www.dir.state.tx.us/store/cci/index.htm
Electronic State Business Dailyhttp://esbd.cpa.state.tx.us/
HUB Coordinator Listwww.window.state.tx.us/procurement/prog/hub/contactlist/
Calendar of Eventshttp://hub.cpa.state.tx.us/eof/
Vendor Guidewww.window.state.tx.us/procurement/pub/vendor_guide.pdf
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Technology Small Business Workshop Questions