Transcript Slide 1

Meeting September 9, 2010

2

Agenda

1.

2.

3.

4.

5.

Materials Updates – Walt Quade, JP Duvall Services Updates – Dennis Fellin, Rich Gaul Vendor Presentation – ARBILL – Donna Brown, Business Development Manager and Marcelo Rodriquez, Manager of Specialty Products eMarketplace Updates – Sue Plecker Other Procurement Updates – Cheryl Kleeman, Stephanie Fetter 6.

7.

Legal Appendix – Chuck Anderson Training Updates – Joan Kraft

3 • • • • • • • • • •

MRO Contract

10 total lots (2010) versus 7 (2005) 4 suppliers currently going through approval Will remain in SRM/ cXML as punch-out catalogs; R/3 for MRP users DB participation ~ 8 %; 0% currently December 1, 2010 target for new contracts – Current contracts have all been extended for 90 days Continued push for energy efficient (“green”) products Continued cost cutting (Market Basket & process improvement) and SKU consolidation - $2.2M Inventory management & reduction (including tie-ins to SRM – Grainger) Continued contract compliance improvements On-going quarterly supplier business reviews with agencies Contacts: Lilly Mangan, Commodity Specialist, MRO 717-346-3846 or [email protected]

JP Duvall, Associate Commodity Manager, MRO 717-346-8175 or [email protected]

4

LOT One a) b) Two a) b) c) Three Four Five Six Seven Eight Nine Ten DESCRIPTION Electrical Electrical Square D Lighting (Lamps/Ballasts/Fixtures) 2a) Sylvania Lighting (Lamps/Ballasts/Fixtures) 2b) General Electric Lighting (Lamps/Ballasts/Fixtures) 2c) Phillips Lighting (Lamps/Ballasts/Fixtures) General Hardware, Metal working, Test Equipment, & Security Material Handling Safety Hand & Power Tools HVAC Filters, excluding Automotive & Truck filters Pumps & Plumbing Motors & Power Transmission

MRO Contract continued

Supplier Schaedler/ Yesco Distribution Grainger Industrial Supply Schaedler/Yesco Distribution Grainger Industrial Supply Wesco Distribution Grainger Industrial Supply Grainger Industrial Supply Arbill Safety Grainger Industrial Supply Grainger Industrial Supply Grainger Industrial Supply Grainger Industrial Supply Grainger Industrial Supply

5

Electricity Procurement Update • Preparing to begin the bidding process for the electric generation for all non-PPL utilities.

• Deregulation will impact balance of PA 01/11 • Budgets will continue to be impacted with cost increases based on experiences with PPL early this year.

• The PUC has granted PPL another 1.6% increase in their transmission rates for all customers effective 01/11

6

Water Alternatives

7 • • • • • • • • •

Environmental Facts

Americans purchased 8.8 billion gallons of bottles water in 2007 Avg. U.S. cost to treat, filter and deliver water to ratepayers is 0.2 cents per gal.

– Roughly 750-2,700 times cheaper than bottled per gallon. Rates vary regionally.

90% U.S. municipal water systems regularly meet or exceed EPA regulatory/monitoring requirements.

In 2005 , 96% of bottled water sold in U.S. was packaged in PET containers, most single serve bottles.

For each gallon of water that is bottled, an additional two gallons are used in processing.

In 2004, only 14.5% of non-carbonated beverage bottles made from PET were recycled.

Producing PET bottles uses the equivalent of more than 17M barrels of oil and produces over 2.5M tons of carbon dioxide.

– Same amount as emitted by over 400k passenger vehicles . Bottle-less coolers use 30 to 50% less energy than average bottled coolers.

Major reduction in green-house gas emissions as truck deliveries are eliminated.

8

Think Outside the Bottle •Bottled water is environmentally damaging and wasteful. •Wide availability of safe, low-cost tap water, wide array of appropriate and cost-competitive filters and other drinking water dispensing equipment-switching to tap water saves money

•Dramatically reduces environmental impacts

Greenhouse gas emissions

Water consumption

Waste generation Negative publicity about taxpayer funding going into expensive bottled water

A growing number of buyers, both public and private, are thinking outside the bottle and making the switch.

9 • • • • • •

Water Dispensing Equipment

DGS issued solicitation that resulted in a multiple award hierarchy contract # 4400007371 for lease of Water Dispensing Equipment.

Effective 8/15/10, 5-year contract awarded to 3 suppliers: – Aqua Pure Technologies SRM Contract # 4400007372 – DS Waters of America SRM Contract # 4400007373 – Quench USA Inc. SRM Contract # 4400007374 Pcard enabled: N Pcard accepted: Y MSCC: No Validity Period 8/15/2010 to 8/14/2015

This cost effective alternative to bottled water should reduce costs by approx 30%.

Contact:

Richard Bahl, Commodity Specialist 717-787-5427 or [email protected]

10

Contract Number

4400007413, 7414,7415,7416, 7417 4400007372, 7373,7374

Description

Misc Lab Supplies Water Dispensing Equipment 4600014390, 14407 4600012686, 14348, 4400005801, 6413 4400006580 Aftermarket Vehicle Parts Tires Medium Duty Trucks

Value

$1,000,000 $400,000 $3,000,000

Contracts-Last 30 Days

Type of Contract

One Year with two renewals 5 Year $4,000,000 Two Year with three extensions $10,000,000 One year One Year

11

Contract Number

4400002702

Description

Electric PECO 4600010918 4600013299, 13302, 13301 4600013845, 13844,14411, 13847 4600014416 thru-14451 4600014459 Thru 4600014479 Sign Stiffeners Sign Sheet Traffic Delineators Plant MIX Bitu Patch

Value

$40,000,000 $100,000 $2,000,000 $500,000 $70,000,000 $10,000,000

Contracts-Last 30 Days

Type of Contract

One Year One Year One year One Year One Year One Year

12

New Solicitations Next 60 Days

Value Type of Contract Bid Number Description

9140-02 9120-02 NA New N/A 6100016165 6100016142 Fuels Propane Bio-Mass Fuel Commissary Industrial Plumbing Traffic Control Tech Fitness Equip $20,000,000 $1,000,000 $400,000 $20,000,000 $2,000,000 $100,000 $750,000 IFB IFB IFB IFB IFB ITB IFB

Services Team New Contracts

13 5011 Boat Registration ID Card & Decal Actuarial Analyses of Proposed Legislation Actuarial Service Advertising-Marketing Services Audit Services

Project Title

Automated Mail Processing Service Boating Safety Certificates Broadcast Satellite Maintenance Services - CMS Certified Insurance Brokers Commercial Print, Forms and Stationary Lot #1 Flat and Folded Lot #2 Carbonless/Carbon Forms ALL Digital Fingerprinting & Federal Criminal Background Investigation (IN PROTEST) Educational Banner Mats Enterprise Software (Software) DGS PDE ALL

Agency Commodity Specialist/ Issuing Officer PO/Contract Number

PFBC PERC DOI ALL OB ALL PFBC DGS

Supplier Name DB Type DB Commit % Original Contract Start Date Original Contract End Date

Noss, Toniann 4400007261 Williams, Emanuel 8413 Actuarial Services PERC 4400007231 Williams, Emanuel Poepperling, Hilary 4400006934 Williams, Emanuel Bowers, Wanda 4400006811 4400007056 Noss, Toniann 4400007115 Yagle, Brandi 4400007133 Moore Wallace North America Inc Various Mercer Health & Benefits LLC Neiman Group KPMG LLP Pitney Bowes-Presort Services Moore Wallace North America Inc Skyline Communications, Inc.

WBE MBE 0.00% 0.00% 0.00% 20.00% 30.00% 5/18/2010 3/31/2013 7.90% 0.00% 0.00% 7/7/2010 6/30/2012 7/1/2010 6/30/2011 7/1/2010 6/30/2011 7/1/2010 6/30/2011 8/9/2010 8/8/2012 7/1/2010 6/30/2012 7/1/2010 6/30/2013 L&I Williams, Emanuel 8413 Structured Brokerage Settlement Noss, Toniann 5510 Commercial Baltimore, Georgina Offset Forms Print 4400007247 Various Digital Ink Inc Cogent Systems Noss, Toniann 4400006997 Teprovich, Tom 4300241659 Superior Business Solutions Acclaim Systems Inc MBE WBE MBE MBE 100.00% 7/26/2010 7/25/2013 30.00% 30.70% 0.00% 8/1/2010 7/31/2012 7/1/2010 6/30/2015 5/4/2010 3/31/2012 100.00% 8/23/2010 8/22/2012

Services Team New Contracts

Project Title

Food Safety and Laboratory Services IT DOA HVAC Service Roadside &Welcome Centers District 4 Insurance Brokerage and Consultant Internet Based News & Information Services Investment Consulting Services Media Displays Media Planning & Purchasing Services ALL Medical Specialist Services (NSH) Municipal Statistics System Services Municipal Waste Services PC / Technical Support Services Pharmacy Services Quality Control Review Services Relocation Consulting Services Contract Staff Augmentation Services Tree Removal & Stump Cutting ITQ 14 Underground Storage Tank Repair Services

Agency Commodity Specialist/ Issuing Officer PO/Contract Number

DOT DGS ALL DOI ALL DPW DCED ALL DEP DOC ALL ALL ALL ALL DGS

Supplier Name DB Type

Geegee Dugan, Christina Bonner, Danielle Williams, Emanuel Habowski, Jennifer Williams, Emanuel 4300233195 4400007297 4400007323 4400006936 4400006746 Noss, Toniann 4400007017 Poepperling, Hilary 4400006978 Computer Aid Inc Troy Mechanical Inc Aon Risk Services Central Inc Various Morgan Stanley Smith Barney LLC Purpose 1 Inc Harmelin Media Kramer, Nicole 4400007196 Montgomery Hospital Williams, Emanuel Yagle, Brandi Teprovich, Tom Gaul, Rich Williams, Emanuel Bowers, Wanda Teprovich, Tom 4400006729 4400006854 4300241659 4400007074 4400006994 4400006908 4400007198 Pennsylvania State Association of Twp Supv.

MBE Various Acclaim Systems Inc Diamond Drugs Inc Zelenkofske Axelrod LLC Various Computer Aid Inc MBE MBE MBE Jackson, Tonja 4400006436 Various WBE WBE Yagle, Brandi 440007430 Keystone Petroleum Equipment

DB Commit % Original Contract Start Date Original Contract End Date

43% 5/17/2010 4/30/2013 0.00% 0.00% 7/26/2010 7/25/2013 0.00% 0.00% 0.00% 3.00% 0.00% 15.50% 0.00% 0.00% 8/1/2010 7/31/2012 6/1/2010 5/31/2013 7/1/2010 6/30/2015 5/6/2010 6/30/2012 7/1/2010 6/30/2011 7/1/2010 6/30/2015 7/1/2010 6/30/2015 7/1/2010 6/30/2013 100.00% 8/23/2010 8/23/2012 30.00% 6/15/2010 7/31/2015 0.00% 5/12/2010 5/11/2011 7/1/2010 6/30/2012 70.00% 6/30/2010 6/30/2012 6/1/2010 5/31/2015 9/1/2010 2/28/2011

15

Project Title

Advocacy Services Alcohol and Other Drug (AOD) SCI Chester and Pittsburgh BWC Automation and Integration Initiative CADD Support-DOT Central Control Computer System Commercial Drivers License Info System (DCLIS) Courier Services DOT Infrastructure Support Client/Server Network Support Services Drafting & Engineering Electronic Payment Processing (Merchant Services) Elevator Services eTranscripts and Student Record Exchange Solution External Quality Reviews for Office of Medical Assistance Programs Independent Verification & Validation Services Information Technology Equipment Maintenance and Storage Information Technology Services of DPW (Unbundling) Learning Management Service (LMS) Solution Lottery Procurement Nurse Aide Registry; DOH and PDA PA Health Information Exchange (PHIX) PA Information Management System (PIMS) PACE Program PADOT Customer Call Center PASCSES Client Infrastructure Network Radio Tower Space Rentals Revenue Independent Verification & Validation Snow Removal Services - DOT Driver Liscense Centers Snow Removal Services - Harrisburg Capitol Complex State Parks Reservation and Revenue Program UnArmed & Armed Security Guard Supplement #2 Uniform & Mat Rental/Cleaning Services

Services Team Current Solicitations

DPW DOC L&I DOT DOR DOT ALL DOT ALL ALL ALL PDE DPW L&I DOT DPW ALL

Agency Commodity Specialist Solicitation Number

Whitsel, Kay Kramer, Nicole GeeGee-Dugan, Christina 6100013597 Jaime, Ray Mistretta, Tami Corish, Angela Bowers, Wanda Goertz, John Jaime, Ray Habowski, Jennifer 6100016139 6100013574 6100014467 6100016510 4400006974 6100014332 6100012706 Jackson, Tonja Mistretta, Tami Williams, Emanuel Corish, Angela Jaime, Ray Shaffer, Kay Teprovich, Tom 6100016162 6100014127 6100012979 DPW 16-09 6100016085 DOR Shaffer, Kay DOH/PDA Teprovich, Tom OA Fellin, Dennis PDE Aging DOT DPW Goertz, John Shingara, Syline Shingara, Syline GeeGee-Dugan, Christina 6100014689 6100016087 6100009286 6100016106 6100011363 6100013048 OA DOR DGS DGS DCNR ALL DGS Bowers, Wanda Goertz, John Bowers, Scott Baltimore, Georgina Corish, Angela Bonner, Danielle Baltimore, Georgina 6100015246 6100016105 6100016179 6100016150 6100016148

Bid Issued

7/8/2010 10/21/2009 7/7/2010 7/1/2010 8/30/2010 7/6/2010 4/1/2010 7/9/2010 8/23/2010 4/12/2010 6/21/2010 8/23/2010 4/1/2010 6/24/2010 12/15/2009 6/25/2010 5/3/2010 8/18/2010 7/29/2010 7/21/2010 6/3/2010 7/28/2010

Bid Opening

7/29/2010 1/12/2010 8/13/2010 8/4/2010 9/13/2010 8/23/2010 5/13/2010 8/17/2010 9/30/2010 9/7/2010 10/13/2010 5/24/2010 8/10/2010 2/11/2010 8/27/2010 6/28/2010 9/23/2010 9/9/2010 8/20/2010 8/5/2010 8/18/2010

16

Enterprise IT Staff Augmentation Services

• Awarded to Computer Aid, Inc. Contract 4400007198 –Effective 8/4/2010 - 6/30/2012, with option for three (3) additional years. –Yearly projected savings $6.1M, 12.4% average reduction in rates.

–DB committed  24.7% Contract mgt  70 % Staffing spend –People Click users can run Business Intelligence reports based on the users login information.  Can view real time data specific to their agency.

–PO ’ s against current contract (4400023137) remain valid until 12/31/10.  If agency wishes to utilize new rate structure for current engagements, must issue a new requisition against contract 4400007198 and upon receiving a new quote, cancel the current PO and issue a new PO.

17

Enterprise Software Contract

•Lot 1 – COTS Software, includes Microsoft Products; –

Awarding to Dell

–Projected savings of $330k/ yr based on the reduction in supplier mark-up on new license and renewals.

–Mark-up – from average of 1.1% to avg. flat rate of 0.5%.

•Lots (2 – 10) – IBM Enterprise, includes Applications, include FileNet, Optim, Cognos, and iLog

.

Awarding to IBM.

•Contracts routing for approval.

•Current Contract expires September 30, 2010

18

Print Contract

•Supplier – Digital Ink •Line Item Specific Print: –SRM Contract Number: 4400007122   Select MSCC Catalog from Contract –R3/SAP Contract 4600014412 For use only by DOT for MRP items •Matrix-Based &Process-Based Print: –SRM Contract Number: 4400007122 •Select “Product Category” (Line item 9) from Contract

.

Print Specification Approval

–Bureau of Publications is responsible for approving all printing specs for matrix-based or process-based print (i.e., non-document specific line items) prior to submitting to Digital Ink.

19

Print Updates

Bound Print Envelopes Labels

CONTRACT

Tax Booklets / Documents Maps Disability Placards (PennDOT Only) Vehicle Decals Silk Screening JIT Forms (Continuous Cut Card Forms) (Currently Penn DOT Only) Ethics Commission Forms / Fulfillment Fine Art Prints Variable Data Print (L&I 1099, Rev 1099, SERS 1099, SERS Member Statements, SERS Annuitant Statements, etc.)

EXPIRATION DATE

2/28/2011 2/28/2011 2/28/2011 2/28/2011

PREVIOUS BID TYPE

RFP RFP RFP RFP

FUTURE BID TYPE

RFP RFP IFB IFB 2/28/2011 9/30/2010 10/31/2010 6/30/2011 Expired New New New RFP IFB RFP IFB IFB RFP IFB IFB IFB IFB IFB IFB

NOTES

Procurement & Publications Procurement & Publications Procurement Procurement & Publications (reviewing types of maps) Procurement Procurement Procurement Procurement Will be added to Lot 2 of new Print Contract with Digital Ink.

Procurement (reviewing specs) Procurement & Publications (Process Bid lotted by Agency. Total option of 5 years but renewed at 1 year intervals. Publications will be reviewing specs and trying to standardize the agencies involved.) Publications will do one-off bids until information can be gathered for a state-wide contract. Inspection & Safety Devices (3 Current Contracts) Inspection / Emission Stickers Inserts Mass Transit / School Bus Stickers Mass Mailings MA Bulletins, SERS Qtrly Newsletters, etc.

4/30/2011 5/31/2011 5/31/2011 New IFB IFB IFB RFP IFB IFB IFB IFB details and timeframe.

Procurement Procurement Procurement Procurement & Publications ( Publications working out

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

Procurement Forms Website Redesign • Procurement Forms website has been redesigned

– Shows which forms should be used for each transaction (i.e. IFB, RFP, Sole Source, Contract) – Provides definition or use for each form

43

New SRM Punch-out

New SRM Punch-out Catalog

Supplier: Pomeroy IT Solutions Supplier #: 169472 • Contract 4400007143, IT Hardware (Peripherals) • – Please note this contract replaces 4400002810 • Contract 4400002814, IT Hardware (Networking Gear) • Auto-PO Functionality enabled on orders $10,000 or less • Go-Live: August 19, 2010 Pomeroy Punch-out Catalog User Guide

ACM & CS Contract Alert Program

Notification will occur via outlook and in the alerts tab in the universal work list (UWL).

•View from Universal Work list Alerts Tab: •The alert must be “Completed” by the recipient (right click the item and choose Complete) for the item to be removed from the alerts tab.

44 •View from outlook email:

45

Liquidated Carts Showing in BW/BI

Question: When reducing purchase orders that have carts associated with them the cart balance shows in the purchaser’s worklist. When going in to check them off - the checkmark changes from green to gray; but they still show up on BW/BI reports as open shopping carts. Users cannot go into monitor shopping carts and delete it from there as it shows there is a PO attached to it, so a remedy ticket is needed.

Response: There are times when the shopping cart report data gets out of sync with the BW/BI reports because of the timing of the extract as well as the various processes used to create purchase orders.

Resolution: A new transaction has been added to the purchaser role that allows the liquidation of the open value and the next day the BW/BI reports will reflect those changes. An end user procedure ( Shopping Cart Complete Program in the Purchasing Agent Role requires just the PO number and line item.

) has been developed– the transaction is very simple and

46

MSCC Contracts Update

Existing DGS Contracts converted to Material/Service Contract Catalogs

Textiles • 4400000971 Cotswold Industries Inc • • 4400000987 Ragold Corporation 4400000991 J Weinstein & Sons Inc • • • • • 4400000992 Tabb Textile Company Inc 4400000993 Carolina Textiles 4400000999 Jason Mills LLC 4400001172 Comade Inc 4400005913 Lafayette Textile Industries LLC • Printing/Envelopes 4400006807 MeadWestvaco • • Work Gloves 4400003085 Stauffer Manufacturing Co 4400003660 Saf-T-Guard International Inc

MSCC/Auto-PO Policy

47 • • •

Auto-generated POs:

A supplier enablement functionality System faxes a PO directly to a supplier upon completion/release Suppliers are set up for auto-PO based on established criteria – Creation of a MSCC catalog

New DGS policy:

• • • • • All MSCC catalog contracts will be set up as auto-PO Currently there are 216 MSCC catalogs – 54 are auto-PO enabled Converting all existing – Tire Contracts: Goodyear & Bridgestone Notification will be sent to all agencies with go-live date All new MSCC auto-PO, effective 8/6/10

48

Invoices received in agency reconciler workflow

Issue:

Invoices in agency reconciler’s workflow that do not belong to that agency.

Review of Issue:

Upon review of PO’s, determined that, while some of the line items on the PO are for this particular agency, other line items are set up for the agency that truly should be getting the invoices.

Background:

Invoice routed, via workflow, for a particular PO, system ID’s 1 st 7 digits of Funds Center on LAST line item of the PO, and determines from that line item where invoice transaction should be routed.

–Invoice routed to agency reconciler only when it was unable to be posted/cleared after Invoice Processing (“R” Blocks, rejections, etc.).

Unable to have system route invoice based on more than one line item, thus last line item is logic utilized.

Solution:

In order for invoices received against PO’s to route correctly, agency users should ensure that the last line item on the PO has the Fund Center of the agency that should be receiving the invoices.

Procurement Handbook Progress Report: Completed

49

Chapter Description

Definitions Methods of Award Contracts Methods of Awarding Contracts (August 13, 2010)

Location

Pt I Ch 02 Pt I Ch 06 Pt I Ch 06

Change

Added the term and definition for Funds Commitment.

Section E.2.e. was revised to: •Clarify that a source justification form is not required but that a brief written justification is required. •Language was added to indicate agency shall limit contracts under the exemption to hourly rate contracts.

•Travel by contractors during normal business hours would not be reimbursed.

•Travel outside normal business hours by contractors must be preapproved by the agency and will be reimbursed in accordance with M.D. 230.10; all other requirements set forth in part III, Chap 05 of the handbook are applicable to procurements of chaplaincy services.

Changed B.11. (Offeror Notification) from: "The issuing office will notify all offerors in writing of the selection of an offeror for contract negotiation or that it has rejected all offers, as applicable." to: "The issuing office will notify the selected offeror only in writing of its selection for contract negotiation." AND Added section c under B.12. (Negotiations with selected offeror.): "Notification of Non-Selected Offerors. When negotiations have been successfully completed and the issuing office has received the negotiated contract signed by the selected offeror, the issuing office will notify the other offerors in writing of the selection and of the opportunity for a debriefing."

Procurement Handbook Progress Report: Completed

50

Chapter Description

Contractor Responsibility Procurement Card

Location

Pt I Ch 14 Pt I Ch 27 Pt I Ch 57

Change

•Added the words "which are comprehensive, measurable and enforceable" to Section J. •Added new Section M, Titled Immediate Action for Poor Performance and renumbered the chapter. •Added language on monitoring to the end of Section P, Good Project Oversight/Management is Essential. •Added new Section V.6.

•Section B.5. was added indicating purchases via p-card are authorized based on transaction limits established in M.D. 310.23. •Language was added to indicate requests to exceed these limits on a statewide contract will be evaluated and waivers granted on an individual basis by DGS BOP.

New Section D and Section F.1.a., b. and c. were added.

Contractor Performance & Legal Remedies Emergency Procurements Pt II Ch 06 Modified Emergency Procurement of Production Materials for Correctional Industries Pt II Ch 06A •Revised chapter to reflect the agencies requirement to use the on-line emergency approval request form and process. •Combined the emergency procurement of materials and services into one chapter.

Chapter was rescinded.

51

Procurement Handbook Progress Report: Completed

Chapter Description

Procurement of Used Equipment Procurement of Materials or Services through a Cooperative Purchasing Agreement (Including Purchasing From GSA Schedule Contracts) Sole Source Procurement of Services Pt II Ch 21 Pt III Ch 05 Emergency Procurement of Services

Location

Pt II Ch 14

Change

Revised chapter to reflect the agencies requirement to use the on-line source justification form and process vs. the manual form and process.

New Chapter . This was previously a reserved chapter.

Pt III Ch 06 •Revisions to on-line sole source approval process that was issued in May 2010. •Added language to Section D.2.g. to clarify that the total dollar amount of the sole source shall include costs associated with the original contract period plus all subsequent renewal periods.

•Additional language indicating, “Any contracts shall not exceed 10% of the total dollar amount. A new sole source justification form must be submitted for any increased in excess of 10%.” Chapter has been revised to instruct users to refer to Part II, Chapter 06 for procedures on Emergency Procurements.

52

Procurement Handbook Progress Report: In Progress

Change Description

Definition and use of RFEI

Location

Pt I Ch 02 Pt I Ch 06

Status

In Development (Legal) RFP process distinction between BAFO and Pre-selection Negotiation Update to section on Debriefings (B.13 & B.12) This change will be published as soon as complete Pt I Ch 06 Pt I Ch 06 Adding language on Established Catalog Price Contract Types Pt I Ch 08 In Development (BOP) Draft Language Under Review In Development (BOP) In Development (BOP) Chapter being revised to remove obsolete forms and add new forms.

Pt I Ch 10 Use and approval of Funds Commitments Pt I Ch 30 In Development (BOP) Chapter being revised to remove obsolete forms, unused terminology and to reflect current processes Pt I Ch 32 In Development (BOP)

53

Procurement Handbook Progress Report: In Progress

Change Description

Revising entire chapter on Records Retention

Location

Pt I Ch 52

Status

Draft Language Under Review (Legal) Revisions to reflect the proper use of the Delegation Request and Notice of Forthcoming Procurements and requirement to complete the automated Source Justification Form Sole Source Procurement of Materials: Entire chapter being revised Revisions to reflect the proper use of the Delegation Request and Notice of Forthcoming Procurements Pt II & III Ch 04 Pt II Ch 05 Pt II Ch 07 Draft Language Under Review Draft Language Under Review Draft Language Under Review Revisions to processes associated with the procurement of vehicles Pt II Ch 18 & 19 In Development (DGS BVM) New chapter on the Acquisition of Federal Surplus Property Pt II Ch 27 To Be Drafted (BOP & BSSO)

54

Contracts Greater than 5 Years • Form BOP-012, Request for Contract Term Greater than Five Years Waiver Review Form

55

Contract Validity Dates on POs • Contract validity dates printing on Purchase Orders

– Is this creating an issue for other agencies or their suppliers?

– Requires development and testing to remove

56

Zoomerang Survey Tool: Forms Survey

• BOP purchased a Zoomerang license; what this means for agencies: – Expect to receive various Zoomerang surveys from BOP, i.e. Goods Receiver Survey – This tool will not increase spam email – Employees should NOT click on link to “opt out” of surveys

Upcoming Surveys:

– Use of Manual Procurement Forms: Procurement Handbook, Part I Chapter 10 • • Independent Agencies only Expected date: September 17, 2010 BOP Instructor Led Training Courses • • All agencies All courses

57

Records Management

• • • •

Document Naming Conventions and Records Management

– Outlines naming conventions applicable to SRM procurement documents in the SAP Records Management (“RM”) System . • Electronic file naming conventions are critical to managing an effective records management environment. • User searching for and/or reviewing documents, will be able to locate and decipher exact documents in minimal time and effort. PART I – Document Naming Conventions-Electronic/Scanned Document Naming Conventions PART II – Records Management Overview -Manage records of procurements made on behalf of the Commonwealth. Records Management Folder Structure PART III – Attachments in SRM/Records Management Folder Contents-Files required to be electronically attached to SRM Procurement Documents.

PART IV – Records Management Version Management-Document version management is required for attachments within the Additional Documents Folder and the Protests Folder

58

Records Management

• • • • • • • • • • • • • •

Appendices: (web links)

Records Management Policy SAP Records Management Training Course Locating & Viewing a Bid Invitation & Attachments in RM (End User Procedure) Locating & Viewing a Contract & Attachments in RM (End User Procedure) Locating & Viewing a Purchase Order & Attachments in RM (End User Procedure) Comprehensive Guide to Versioning in RM (Reference Guide for Users) Editing & Maintaining Versions of Attachments in Records Management (RM) (EUP) Management Directive 205.36

Right to Know Webposting Checklist for eMarketplace Treasury Commonwealth Email Retention Policies M.D. 210.5 Commonwealth Enterprise Records Management Program Management Directive 215.16 Contract Compliance Program Right to Know Checklist

59

Records Management

(DGS/BOP Web links)

Webposting Folder Setup and ACM Review

Records Management Folder Process Flow Chart

60

Legal Updates

There are several new contract clauses to make you aware of: SBR - When issuing an RFP that is to be set aside for award to small businesses only (Small Business Reserve), Purchasing Agents and Commodity Specialists should utilize the newly created RFP template (for SBR’s). This template can be located in PU Forms for BOP personnel and at link below for agency personnel.

DGS Small Business RFP Template http://www.dgsweb.state.pa.us/comod/CurrentForms/RequestforProposals_SBR.doc

For IFB’s issued as SBR’s a reminder to attach the certification form below which can also be found in PU Forms and at link below for agencies.

Small Business Certification Form http://www.dgsweb.state.pa.us/comod/CurrentForms/SmallBusCert.doc

61

Legal Updates continued

Contractor integrity and non-discrimination clauses These clauses were recently approved and should be added to new solicitations. Doc Builder changes/updates will be made in the near future to include these clauses. These forms can be located in PU forms for BOP personnel and at link below for agency personnel.

Contractor Integrity Provisions http://www.dgsweb.state.pa.us/comod/CurrentForms/ContractorIntegrityProvisions.doc

Nondiscrimination/Sexual Harassment Clause (Grants) http://www.dgsweb.state.pa.us/comod/CurrentForms/Nondiscrimintation_Grants.doc

Nondiscrimination/Sexual Harassment Clause (Contracts) http://www.dgsweb.state.pa.us/comod/CurrentForms/Nondiscrimination_Contracts.doc

Nondiscrimination/Sexual Harassment Clause (Deposit of Commonwealth Funds) http://www.dgsweb.state.pa.us/comod/CurrentForms/Nondiscrimintation_DepositofFunds.doc

Draft of RFP vs. IFB

62

DETERMINATION TO USE COMPETITIVE SEALED PROPOSALS (RFP) METHOD OF PROCUREMENT

The _________________________________________ [NAME OF PURCHASING AGENCY] has decided to use the competitive sealed proposal method for the selection and award of Contract ___________ for the procurement of _______________________________________ _________________. In accordance with 62 Pa.C.S. § 513(a), the contracting officer has determined that the use of competitive sealed bidding is: [check all that apply] ___ Not practicable because: ___ The agency is seeking a contractor's solution to a purchasing agency need. ___ The agency wants to provide offerors with flexibility in the contents of their proposals in terms of the materials, services, or construction offered. ___ The scope/statement of work/specifications lack clarity and specificity in terms of a detailed procurement description.

and/or ___Not advantageous to the Commonwealth because: ___ The agency wants to consider criteria other than price in the award process and, in particular, criteria that are subjective in nature: ___ disadvantaged business ___ domestic workforce ___ enterprise zone participation ___ contractor qualifications, experience and financial capability ___ service and delivery capability ___ other criteria _______________________________________________________.

___ It is not in the agency’s or the Commonwealth’s best interest to use competitive sealed bidding (explain)____________________________________________________ _____________________________________________________________________________.

Explain the nature of the contract: __________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________________ Explain more fully and with specificity the reasons indicated above: ________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________________

63  Contractor Responsibility Program (CRP) System Upgrade – Management oversight of the project is with Revenue and OB – Project goals include the following  Standardize CRP checks across the commonwealth by building a central database to store liability, suspension, debarment and performance related information  Create a user interface that will allow agencies to query the central database for a single vendor or batch of vendors  Utilize a web service that can be consumed by any commonwealth agency as part of their contract/grant approval process and/or payment process  Improve the accuracy of CRP checks by updating the CRP file on a daily basis instead of the current weekly process  Include federal suspensions/debarments through consuming the EPLS Web service  Reduce the costs related to the current manual process for unblocking payments to vendors who have cleared their liability  Realize greater efficiencies and reduce costs by eliminating the need for paper clearance certificates

CRP

64

CRP Continued

 

Contractor Responsibility Program (CRP) System Upgrade

– User roles: • • • CRP User (to search & check) Performance Issue (PI) Creator Performance Issue (PI) Approver – Training Courses and Delivery Methods • Web-Based course for each role

Contractor Responsibility Program (CRP) System Upgrade

– Re-write of MD 215.9, CRP, is drafted and going out for review soon – Training Schedule • • “Just In Time” training estimated to occur between September 27 and October 15 All courses will be made available for self-enrollment in ELMS – Go Live date October 18

Certification

65 • • •

125 PA’s attended Certified PA Purchasing Agent training

– 97 Receiving their CPPA certification – 59 Purchasing Agents still require certification 

Excludes Corrections and Transportation

Procurement Policy and Process

– Purchasing Agent Course is scheduled for October 4-7, 2010 – Enrollment is available through ELMS

Latest Certification recipients:

Cheryl Gee – Corrections Mary Hein – DPW Rose Heller – DPW Ann Kimmel – DMVA Brenda Lower – DMVA Coleen Manum – Inspector General Cynthia Marencic – Game Comm.

Amber Shinskie – DPW Steven Smith – DCNR Sharon Wessner - DMVA

From February:

Joan Folmer - Budget Cheryl Heishman – L&I Victoria Lengel – DMVA Susan Murphy – L&I Lawanza Poteat – Education Michele Rhody – DMVA Karen Sattazahn – DMVA Josephine Somogyi – L&I Colleen Sonder – DGS Karen Turns – DMVA Kenneth Zakraysek – L&I

66 Chuck Anderson, DGS Attorney, Strategic Source JP Duvall, Associate Commodity Manager, Materials Dennis Fellin, Commodity Manager, Services Stephanie Fetter, Associate Commodity Manger Rich Gaul, Commodity Manager, Services Cheryl Kleeman, Strategic Development Manager, BOP Joan Kraft, Director, Business Process Improvement Jeff Mandel, Chief Procurement Officer Susan Plecker, Systems Manager, BOP Walter Quade, Director, Materials Procurement 717-214-7739 717-346-8175 717-346-2675 717-787-7526 717-783-8578 717-346-4326 717-705-0564 717-787-5862 717-346-2678 717-787-4775

Contact Information

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

[email protected]

67

• Appendix – A, ERS Changes Appendix

68 • Monitoring GR entry for ERS suppliers PO Overview Report – Requested delivery date – Compare against entry of GR

ERS Changes

ERS Changes

Notice:

Effective July 26, 2010, the SRM system began generating two hard stop error messages. The error messages below occur when entering Goods Receipts for ERS suppliers and the “Delivery Note” field in R/3 (MIGO) or the “Reference Document” field in SRM are not populated.

R/3 "MIGO" Delivery Note Message SRM Reference Document

69

Solution:

When entering a Goods Receipt users must enter the supplier’s Bill of Lading Number into the “Delivery Note” field or “Reference Document” field. If no Bill of Lading number was provided with the shipment then enter a number provided by the supplier, such as packing slip number, shipping number, etc.

70

ERS Changes

Background:

The information from “Delivery Note” and “Reference Document” fields is then populated into the “Invoice Reference” field of the system generated ERS invoice when the automated Invoice Receipt program is Run. The data from the “Invoice Reference” field is included in the Supplier’s Remittance Advice. The Remittance Advice is sent to the supplier to reconcile Automated Clearing House (ACH / electronic) payments from the Commonwealth.

In addition, the “Delivery Note” and “Reference Document” fields are designated by the SAP system as the “Reference” field of the Purchase Order History in R/3. This provides users with another tool to use when trying to reconcile payment and processing information.

71

ERS Changes

Example:

Purchase Order 4500010342, Procurement Invoice #5105706524 the Invoice Reference Field shows “0714_7890123”. This is derived from the “Delivery Note” field of the Goods Receipt (5000010811) which triggered this payment.

ERS Changes

• The Reference field in the PO History of the Invoice and the Goods Receipt (MIGO Delivery Note or SRM Reference Document fields) contains the same data.

Goods Receipt in PO History

72

Invoice Receipt in PO History

73

Vendor #

114953 129240 163483 170194 170885 210125 319859

Company Name

POTTERS INDUSTRIES INC LARRYS LUMBER & SUPPLY INC FLOR DRI SUPPLY CO INC CORRECTIONAL INDUSTRIES ENNIS PAINT INC GREENWOOD MANUFACTURING INC GREENSTAR ALLENTOWN LLC

ERS Suppliers