Purchasing Directors’ Meeting August 7, 2003 3:00 P.M.

Purchasing Directors’ Meeting

August 7, 20033:00 P.M.

State Purchasing

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Purchasing Directors’ Meeting Purchasing Directors’ Meeting August 7, 2003 Agenda August 7, 2003 Agenda

Welcome / Meeting Overview

Legislative Update

EXPO

State Purchasing Reorganization

Training and Certification Program

Strategic Sourcing

Operational Issues

Open Floor / New Issues

Next Meeting Location / Time

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Purchasing Directors’ MeetingPurchasing Directors’ MeetingLegislative UpdateLegislative Update

DMS Point of Contact

Lisa Hurley, Esq.

(850) 488-3213

[email protected]

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Purchasing Directors’ MeetingPurchasing Directors’ MeetingFlorida Government EXPO UpdateFlorida Government EXPO Update

Florida Government EXPO September 24-26, 2003Tampa Convention Center

DMS Point of ContactJohn Kuczwanski(850) [email protected]

Click on Florida Government EXPO under Hot Topics at www.myflorida.com(http://www.floridagovernmentexpo.com/)

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Purchasing related workshops

• Wednesday 2:00 – 3:00: Rules Workshop

• Thursday 10:00 – 11:00: Guest Speaker, Larry Giunipro, Practical Benefits of e-Procurement

• Thursday 4:30 – 5:30: Purchasing Directors’ meeting

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• Employee development workshops, e.g., Change Enablement, Team Leadership and How to Motivate Employees.

• One-on-One sessions coordinated by OSD. Governor’s agencies on the agenda. If you would like to be included, please let us know.

• Time allotted time purchasing personnel to visit exhibit hall to meet with vendors.

• Encourage your vendors to participate through sponsorship, participating in the exhibit hall, or attending. We have scheduled workshop geared toward vendors wishing to do business with the state.

• Distribute employee card to your personnel (DMS to forward)

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Purchasing Directors’ Meeting Purchasing Directors’ Meeting State Purchasing Reorganization

• Mission – To gladly deliver useful and innovative purchasing services in order to become a customer focused agency providing effective and efficient customer services

• Mission Goal - Recruit at least four employees highly esteemed by their peers before October 2003, and reduce annual turnover by 50%

• Mission Task – Reorganize division

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State Purchasing Reorganization New New State Purchasing Employees

• Russ Rothman

• Elaine Atwood – new Bureau Chief leading Teams 1-3. Eight years state contracts/purchasing and supervisory experience with two different agencies.

• Stu Potlock, B.S., CPPB – new Purchasing Analyst. Eight years state experience, seven in purchasing, with two different agencies.

• Mark Lovell, B.S., CPPB – new Purchasing Analyst. Five years state purchasing experience. Thirteen years private sector management experience.

• Ommet Mbiza, M.B.A – new Purchasing Specialist. Has started and managed business in Africa and the U.S.

• Renee Gregory – new Purchasing Specialist. Six years state purchasing experience with three different agencies.

• Chris Kincaid, B.S. – new Purchasing Specialist. Started own internet-based business specializing in musical instruments and worked in family business.

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State Purchasing ReorganizationINTERIM To-Be Organization Structure

DirectorState Purchasing

Chief of StatePurchasing Operations

Sr. Management Analyst I

Bureau Chief of Purchasing Commodities -Transportation, Facilities & Supplies

Administrative Assistant

Operations Manager -Governance (Policy,

Procedures, Bid Room,Legislation, P-Card)

OperationsSpecialist - Records(Retention, Public

Inquires, Contracts,PEC)

Operations Manager -Finance (Revenue,

Budget, LBR, Audits,Metrics)

Operations Manager -IT (Software,

Hardware, Help Desk,Web Site, Training)

Operations Manager -Customer & Vendor

Satisfaction (CMBEs,Surveys, Disputes)


PurchasingSpecialist

Purchasing Operations

OperationsSpecialist - IT

Special Projects& Transition Team

Supervisor

Special ProjectsTeam Members

Automotive& Marine

Energy

Furniture &Floor Coverings

Food, KitchenSupplies, & Food

Services Operations

MRO, Building &Outdoor Equipment,

& Chemicals

Law Enforcement& Traffic Supplies

Bureau Chief of Purchasing Commodities -Technology, Office & Services


Computer Hardware

Computer Software,& IT Research &

Consulting Services

TelecommunicationsEquipment& Services

Office Consumables,Paper, Mail & AudioVisual Equipment,& Library Materials

Printing &Office Equipment

Medical / Lab Supplies,Rental Vehicles,

Travel, Recycling,Surplus & Services

Transition TeamMembers

SPURS Team

OperationsSpecialist - VBS

SNAPS Team

PurchasingAnalyst

PurchasingAnalyst


PurchasingAnalyst

PurchasingAnalyst


PurchasingAnalyst

PurchasingAnalyst


PurchasingAnalyst

PurchasingAnalyst


PurchasingAnalyst

PurchasingAnalyst


PurchasingAnalyst

PurchasingAnalyst

Purchasing ManagerDMS Dept. Purchasing

Purchasing Specialist -Facilities RelatedGoods & Services

Purchasing Specialist -Non-Facilities

Goods & Services

DMS Dept. Purchasing

DMS Administration

Team

1T

eam

2T

eam

3

Team

7T

eam

4T

eam

5T

eam

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Insurance

Professional Services,PRIDE & RESPECT


PurchasingAnalyst

PurchasingAnalyst

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State Purchasing ReorganizationTeam Members

Team 1 Jim Den Blyker – Auto & MarineDavid Bennett, MBA – EnergyRob Butler

Team 2Ellen Potts – FurnitureMaureen Livings – FoodBrenda Wells

Team 3Charles Beall – MRO, EquipmentMark Lovell – Law EnforcementKimberly Hall

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State Purchasing ReorganizationTeam Members (cont.)

Team 4David Comer – Computer HardwareStu Potlock – Software and ITChris KincaidTeam 5Marvin Williams - TelecommunicationsSteve Poole – Office ConsumablesRenee GregoryTeam 6Charles Day – Printing & Office EquipmentSusan Barr – Med/Lab SuppliesOmmet Mbiza, MBATeam 7Theresa Dollar – InsuranceTom Butler – Professional ServicesWendi Sellers

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State Purchasing ReorganizationOperations Manager – Customer & Vendor Satisfaction

Victoria Chambers

[email protected]

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Purchasing Directors’ MeetingTraining and Certification Program

Excellence in Contracting Audit Report:

Undertake a statewide training initiative, and include incentives to encourage professionalism and certification

DMS Primary ContactFran BrooksOffice of Organizational [email protected](850) 488-2187

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Statewide ProcurementTraining and Certification Program

• Integrated Program Management Training

• Certified Professional Public Buyer (CPPB)

• Certified Public Purchasing Officer (CPPO)

• National Institute of Governmental Purchasing

• Florida Association of Public Purchasing Officers

• Nine Local NIGP Chapters in Florida

• Agency programs and trainers

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• Develop and deliver a training & certification program for state procurement professionals

• Establish curriculum and announce course offerings • Track participation and completion• Incorporate best practices• Linkage to MyFloridaMarketPlace• Support a network of experts • Research and recommend incentives to encourage

professionalism and certification (may require legislative approval)

• Improve the quality of the state’s procurement program and practices

Training and Certification Program Goals and Objectives

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• Inventory knowledge, skills, abilities (licensures, registrations, and certifications)

• Establish criteria for each functional level (career pathing plans)

• Review available funding for training and/or incorporate requests into Legislative Budget Request

• Establish Key Performance Indicators -- Metrics and Measures

• Coursework completed within 18 months to 36 months

Training and Certification Program Strategy

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• Overview Course• Planning Course• Procurement Course• Performance Course• Certification Courses• Enhance the knowledge and skills of state employees

involved with procurement and project management

Training and Certification Program Integrated Program Management Training

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• No prior procurement or contract/project management experience is required

• Overview of coursework and certification training program

• Senior level management• New Purchasing employees

• Employees who plan on taking a core course or are seeking certification

Training and Certification Program Overview Course Objectives

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• The value of proper planning to future performance • In conducting a procurement• In managing contract performance by a vendor

• Who should be involved in a procurement/contract/project team

• Various facets of risk• Risk Assessment as a prelude to a go/ no go decision

for a procurement/ contract/project• How risk causes avoidance and higher costs

Training and Certification Program Planning Course Objectives

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• Issues to consider when constructing specifications– Procurement perspective

– Contract management perspective

• Balancing the competing factors of time– Proper planning saves time

Training and Certification Program Planning Course (continued)

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• Conduct pre-bid / pre-proposal conference

• Prepare and distribute minutes of these conferences

• Amend a solicitation after issue

• Respond to vendor questions

• Postpone a bid / proposal due date

• Receive and open bids and proposals

• Conduct discussions / negotiations with offerors

• Resolve tie bids• Request best and final offers

Training and Certification Program Procurement Course Objectives

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• Debrief an unsuccessful offeror

• Handle protests and appeals• Obtain agency and DMS

approvals• Maintain a procurement file

• Resolve late bids• Determine non-

responsiveness and vendor responsibility

• Resolve with mistakes in bids

• Handle Requests for Public Records

Training and Certification Program Procurement Course (continued)

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• Accept a vendor’s product or deliverable

• Invoke liquidated damages

• Release a bond• Withhold

payment / suspend work

• Terminate a contract for convenience

• Terminate a contract for default

• Accept contractor assignments (sale, merger, etc.)

Training and Certification Program Performance Course Objectives

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• Assure compliance with MBE and Office of Supplier Diversity

• Refine a contract management plan

• Refine a contract performance checklist

• Resolve contractor performance problems

• Issue change orders

Training and Certification Program Performance Course (continued)

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• Evaluate contractor performance

• Transition between contractors

• Insure run out requirements are satisfied

• Revise specifications to apply lessons learned for subsequent procurements

Training and Certification Program Performance Course (continued)

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Schedule A - HS Diploma or GED, 12 college credit hrs in purchasing, 96 contact hrs in purchasing seminars or any combo thereof, 5 yrs total purchasing experience which must include 3 yrs of current public purchasing experience

Schedule B - Associate Degree, 12 college credit hrs in purchasing, 96 contact hrs in purchasing seminars or any combo thereof, 4 yrs total purchasing experience which must include 3 yrs of current public purchasing experience

Training and Certification Program Certified Professional Public Buyer (CPPB)

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Schedule D - Master's Degree or Ph.D., 3 college credit hrs in purchasing courses, 24 contact hrs in purchasing seminars or any combo thereof, 2 yrs of current public purchasing experience

Schedule C - Bachelor's Degree, 6 college credit hrs in purchasing courses, 48 contact hrs in purchasing seminars or any combo thereof, 2 yrs current public purchasing experience

Training and Certification Program Certified Professional Public Buyer (CPPB)

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Schedule A - Holder of CPPB Designation, 18 college credit hrs in purchasing courses, 144 contact hrs in purchasing seminars or any combo thereof, any contact hrs earned to obtain the CPPB Designation can be used towards the contact hrs for this license, 8 yrs total purchasing experience, 6 yrs current public purchasing experience of which 3 yrs are in a public purchasing mgmt function

Schedule B - Bachelor's Degree, 6 college credit hrs in purchasing courses, 48 contact hrs in purchasing seminars or any combo thereof, any contact hrs earned to obtain the CPPB Designation can be used towards the contact hrs for this license, 3 yrs total purchasing experience, 2 yrs current public purchasing experience of which 2 yrs are in a public purchasing mgmt function

Training and Certification Program Certified Public Purchasing Officer (CPPO)

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Schedule C – Master’s or Ph.D, 3 college credit hrs in purchasing courses, 24 contact hrs in purchasing seminars or any combo thereof, any contact hrs earned to obtain the CPPB Designation can be used towards the contact hrs for this license, 3 yrs total purchasing experience, 2 yrs current purchasing experience of which 2 yrs are in a public purchasing mgmt function

Training and Certification Program Certified Public Purchasing Officer (CPPO)

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• Agency volunteers to assist with curriculum review

• Agencies submit sample training materials by September 10 (to [email protected])

• DMS provide agencies sample form to inventory certifications, training needs, experience, and educational achievement for purchasing professionals

• Update at next Purchasing Directors meeting

Training and Certification Program Next Steps

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Strategic Sourcing Objectives

Leverage State-Wide Volume

Obtain Best Prices & Value

Obtain State-Wide Savings

Increase Demand / Volume on STCs

Identify New STC Opportunities

Reduce State-Wide Supply Base

Manage Compliance

Strategic sourcing is a proactive process to leverage demand and select vendors that offer the best value.

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• Greater savings for Buyers• High volume contracts awarded to a reduced amount of

vendors

• Increased usage of State Term Contracts• Buyers spend less time duplicating our efforts and more time

on State needs

• Improved contract management• Less time spent managing vendors and more time improving

contracts

Strategic Sourcing Benefits

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Strategic Sourcing Wave 1

Profile Internally & Externally

Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Implement AgreementsAssess

Opportunities


Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Kick-Off &

Profile Internally

& Externally

Develop Strategy

Develop Selection Factors &

Screen Vendors

Conduct Competitive

Event

Prepare Value

Proposition & Award

Implement Agreements

Kick-Off & Assess

Opportunities

- Profile Internally & Externally

Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Implement AgreementsAssess

Opportunities


Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Kick-Off &

Profile Internally

& Externally

Develop Strategy

Develop Selection Factors &

Screen Vendors

Conduct Competitive

Event

Prepare Value

Proposition & Award

Implement Agreements

Kick-Off & Assess

Opportunities

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Office Supplies

• DMS Lead – Tom Butler• Sourcing Event – Auction • Target STC Date – Oct. 2003

MROSupplies

• DMS Lead – David Comer• Sourcing Event – ITB • Target STC Date – Oct. 2003

Printing

• DMS Lead – Charles Day• Sourcing Event – RFP • Target STC Date – Nov. 2003

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• Discuss current contract to identify weaknesses and strengths– Too many vendors (weakness)– Good use of web-based buying

• Develop new contract strategy– Auction event– Item “lots”– Core and Non-core items– 2 Phase solicitation to pre-qualify vendors

• Gather spend data to help build new strategy– Get spend data from FLAIR– Reach out to vendors and request spend data

• Conduct Buyer needs assessments (interviews, surveys, etc.) – Get agency feedback on SLA’s

• Construct solicitation document, get it approved and post it– Phase I pre-qualifies– Phase II leads to auction

Strategic SourcingFirst Steps

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• Pre-Qualified vendors using 12 “critical” questions– Minimum sales revenue, delivery times, restocking fees, number of core items

provided, etc.

• 42 vendors applied, 17 were pre-qualified– There were no protests (but a bunch of “non-happy” vendors)

• Vendors had to submit a workbook back as their Phase I response

– We spent the next few weeks analyzing the returned data

• Phase I shaped and defined Phase II– The analyzed data defined the items to be bid on and the SLA’s

Strategic SourcingPhase I Details

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• The Phase II documentation was released July 25th– Posted in new Sourcing tool; no VBS usage– Used a “2-Stage” event in Sourcing tool to facilitate Pre-view, auction and post auction

activities

• Multiple emails were sent to vendors to prepare them for new bid system

– Online sourcing training– Contract specific sourcing training document

• Conducted conference call training events for bid tool– Vendors were given optional training for a complicated piece of the bid package

• Q&A period ends today for vendors – Questions coming in steadily; answers posted on the 7th

• Pre-bid materials due 8/11; Auction begins 8/13– 2 lots = 2 separate auctions at 45 min a piece– Up to 2 vendors can win per lot (5% and vendor size rules apply)

Strategic SourcingWhere We Are

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• Timelines are to Accenture as air is to human beings– This is all they work on – they seem to think it is all you work on as well

• Accenture knows Strategic Sourcing; you know the State – Be flexible with their ideas but remember, you are the team lead

• Be prepared to meet… A LOT– See the first bullet above

• Be patient with your vendors – You are decreasing the number of winners, which increases competition, which

then increases emotional levels

• Ask questions. A lot of them.– Accenture is more then willing to expect that you know exactly what they are

saying all of the time.

Strategic SourcingThings I Learned

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Purchasing Directors’ MeetingPurchasing Directors’ MeetingOperational IssuesOperational Issues

Commodity Codes

Vendor Bid System

Purchasing Offices List

Microsoft Settlement

Draft Solicitations

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Operational IssuesOperational IssuesCommodity CodesCommodity Codes

• Searchable Word document has been posted on the MyFloridaMarketPlace Roundtable Materials page

• Work request has been submitted to STO to link SPURSView search function to Search Advertisements and to registration for e-mail notification, with modifications to allow search on class only and to display class and group, with item and detail an option

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Operational IssuesOperational IssuesVendor Bid SystemVendor Bid System

• Work is in progress to allow VBS user to select ad type to search for. Purchasing folk posting an ad already have the ability to identify by type for posting.

• A drop down box will be provided for “search advertisements” with certain options: (TBD by 8/11/03)

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Operational IssuesOperational IssuesPurchasing Offices ListPurchasing Offices List

• The Purchasing Offices list posted at http://www.myflorida.com/myflorida/business/contacts/bureaus/buylinksphonesall.html will be updated by week end (Aug. 8) with the updates received to date.

• Please continue to submit any changes to your agency listing to Sarah Hamilton at [email protected]

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Operational IssuesOperational IssuesMicrosoft SettlementMicrosoft Settlement

• Government agencies are NOT class members in In re Florida Microsoft Antitrust Litigation, Miami-Dade County Circuit Court Case No. 99-27340

• No action necessary in response to notices you may receive about this case

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Operational IssuesOperational IssuesDraft SolicitationsDraft Solicitations

• “No person who receives a contract ... to perform a feasibility study …, participating in the drafting of [the solicitation], or developing a program … shall be eligible to contract with the agency for any other contracts dealing with that specific subject matter” s. 287.057(17), F.S. (2001)

• “A person who receives a contract … to perform a feasibility study …, who participates in the drafting of a solicitation or who develops a program … is not eligible to contract …” s. 287.057(18), F.S. (2002)

• “… made available simultaneously to all vendors…” s. 287.057(1), F.S. (2002)

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Legislative Update

EXPO



Strategic Sourcing

Operational Issues



51



Legislative Update

EXPO



Strategic Sourcing

Operational Issues



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Purchasing Directors’ MeetingPurchasing Directors’ MeetingNext MeetingNext Meeting

Time-4:30 to 5:30 p.m.

Date- Thursday, September 25, 2003

Location- Tampa Convention Center

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Purchasing Directors’ Meeting August 7, 2003 3:00 P.M.

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