Transcript Slide 1

PROCUREMENT CONNECTION
February 4, 2009
9:00 AM to 11:00 AM
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Agenda
Presentations
1.
Webinar - ePlus Punch-out:: Carl Skiba
2.
DOT Agility Program: Toni Crawford & Tammy McElfresh
Technical:
3. PO Effective Dates: Patti Chapman
4. Recommendations for Improvements to Solicitations: Patti Chapman
5. Deactivated Contract Error: Cheryl Kleeman
6. Changing Fully Approved Shopping Carts: Cheryl Kleeman
7. BI Failure: Global Spend Reports: Cheryl Kleeman
8. SRM Ship To Address: Cheryl Kleeman
Legal:
9. Procurement Organization Responsibility: Chuck Anderson
10. Independent Agency EPO: Chuck Anderson
11. Right to Know: Chuck Anderson
Business Process:
12. Commonwealth Payment Terms: Cheryl Kleeman
13. DGS Contracts in SAP R/3: Sue Rojas
14. DGS Shopping Cart Requirements: Cheryl Kleeman
Appendix:
A. Supplier Enablement
B. Sole Source Procurement Process
C. Finance Transformation
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Presentations
Agenda Item #1
WEBINAR: ePlus Punch-out
DGS Contracts:
• 4400003673, IT Hardware (Lot 2 Storage)
• 4400002811, IT Hardware (Lot 2 Networking)
• 4400002815, Peripherals (Lot 1)
• Supplier: ePlus
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Presentations
Agenda Item #2
DOT Agility Program
• Sharing Services
• Fact Finding
– Agency interest in DOT Winter
Academy
• Plowing
• Deicing techniques
• Deicing products
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Technical
Agenda Item #3
PO Effective Dates
– When changing an existing PO where a GR and IR entry have
already been made on one or more lines, the system changes
the effective date to the latest modification and the original
effective date is lost.
– How are we to handle that for our records?
– The original effective date should NEVER change
– How will this be recognized by the auditor(s)?
Response: After researching the output issue,
IES found the effective date displays correctly;
however the “issue date” becomes an issue when
the original PO has never beenoutputted. GR/IR
activity has no impact on these dates.
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Technical
Agenda Item #3
Example:
PO 43XXXXXXXX
Originally PO Effective Date: 08/07/08
NEVER OUTPUTTED
Change 1 (added new line item) made on 01/28/09
PO output displays:
PO 43XXXXXXXX
Original Effective Date: 08/07/08
PO Issue Date: 08/07/08
Reason for wrong issue date: Original status of
not processed processing status (output
log) “Generated on” date remained =
08/07/08. Development change will be made to
correct.
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Technical
Agenda Item #4
Issue:
• Agencies have run into instances where suppliers thought
they attached items when in fact they didn't.
• In some cases the attachments were attached in the item tab
rather than the header.
• Can something be done to remind the suppliers to attach any
and all necessary attachments prior to being able to submit
the bid/quote.
Recommendations for Improvements to Solicitations:
 Can something be added to a solicitation to indicate how many
attachments are within the solicitation?
 Can something be added to a supplier’s quote to indicate how
many documents have been attached?
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Supplier’s View of Bid
Page 1 – 1 to 10 of 13:
Page 2 – 11 to 13:
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Purchaser’s view of Suppliers Quote:
Page 1 – 1 to 10 of 12:
Page 2 – 11 to 12:
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Technical
Agenda Item #5
Deactivated Contract Error
–
What do you do when trying to reduce the quantities on an old
PO and you get a hard stop error message saying “Associated
contract item deactivated” & “No Default Values from Vendor
Master”?
–
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Procedure:
1. Agency must contact the DGS Commodity Specialist (CS)
responsible for the contract
– Inform them of the situation
2. CS must activate the contract
3. CS will notify the agency of the activation
4. Agency makes necessary changes to PO and notifies CS
when they are complete
5. CS deactivates the contract
Technical
Agenda Item #6
Announcement:
– Fully approved shopping
carts can be edited
– Procedure has been
developed & tested
– EUP: Edit Approved
Shopping Carts
• Will be posted to the DGS
website
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Agenda Item #7
Technical Difficulty . . . .
A Failure Has Occurred
•
•
•
•
•
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A failure on data extraction for Global Spend
occurred
The affected reports are:
– Top 25 Suppliers and Categories
– Invoice Values
– Global Spend Document Level Details
The data contained in the Global Spend
workbooks is as of January 15, 2009 and no later
Anticipated fix time: Mid-February
Updates will be forthcoming
Agenda Item #8
Subject:
• Ship to addresses
Effective date:
• To be determined. A formal notification will be sent to all agencies
when a date has been set
Change:
• SRM will require a valid ship to address on all shopping carts
– XML suppliers receive on a weekly basis a list of valid ship to
addresses with a system generated number
– A validation has been added preventing requisitioners from
overwriting the “Exec Branch” entry in the Name field
– This validation was required to facilitate the transmission of
XML purchase orders to suppliers
– The validation is required to ensure an exact match of the
address data with the address number
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Agenda Item #8
• System messages have been created to communicate these
validations
– If a requisitioner overwrites the Name field, the message informs the
creator that the field cannot be overwritten, please re-select a valid ship to
address:
– If a requisitioner has not selected a valid ship to address, a system
message will instruct the creator to select a valid ship to address:
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Agenda Item #8
•
Set “Delivery address” attributes
– Do not attempt to change the address
– Will not encounter any system messages
Setting Your Attributes
1. My Settings: Change Attributes
2. Attribute: Select Delivery address
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3. Enter Agency SRM address code
4. Click save
Agenda Item #8
•
Requisitioners relying on the Name field to add specific address
information should:
– Follow the current process
• Request a new address number or Change existing
address data
• Use Ship To Address Change Form on the DGS website
– Agencies can make the needed changes in the c/o
Agency/Division field in place of the Name field:
Example
c/o Agency/Division: Jane Doe, DOT, Dist 08, Dauphin Cty
Floor or Room#/Bldg: Keystone Bldg Rm 324
Street:
41 N. Commonwealth Ave, 3rd floor
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Legal: Agenda Item #9 - Procurement Organization and
Responsibility Under the Procurement Code
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Legal
Agenda Item #10
Background:
•
Independent agencies utilizing SRM document type services
EPO’s.
•
This routes to BOP for approval
Issues:
1.
BOP does not have authority for service procurements for
independent agencies
2.
Without a document type = EPO, Treasury will not pay invoices
that precede the PO (due to emergency) and lack of evidence of
competitive bidding.
Options:
1.
Independent agencies use standard doc type and indicate
emergency situation in approval notes section of PO when >$5K.
2.
Continue with current process
3.
Long term - Create new EPO doc type for independent agencies
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Feedback?/Thoughts?
Legal
Agenda Item #11
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Legal
Agenda Item #11
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Business Process
Payment Terms - Agenda Item #12
Commonwealth Payment Terms
– Have NOT Changed to Net 45
– 45 Day Payment should NOT be mentioned
– This is NOT Commonwealth Policy
• Responding to Suppliers’ Inquiries Relating to Receiving
Payment Within the Established Time Periods
– Standard Response:
• “The Commonwealth has, and will, continue to make
reasonable efforts to pay within time periods established by
contract, but payments may be delayed based on the
timing of the receipt of Commonwealth Revenue.”
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Business Process
Payment Terms – Agenda Item #12
• Payment Terms should Reflect the Contract’s Terms and Conditions
– Present
• Purchase Order States: Payment Terms – Net 30
– Future
• Requested a System Change to Eliminate the Notice of Payment
Terms – Net 30 from Purchase Orders
– Legal Requested this change
– The “Net 30” Payment Term is inconsistent with the Payment
Terms in the Standard Contract Terms and Conditions
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Business Process
Agenda Item #13
DGS Contracts in SAP (R3)
– More state contracts mandating PO’s be generated in SAP (R3)
– Shopping carts created in SRM do not replicate to SAP (R3)
– Requisitions can be created in SAP (R3)
• This enables the purchasing agent to copy the requisition into
the PO with out double work
• Training available:
– SAP R/3 Purchasing (MRP/Inventory and Market Price
Contracts)
• February 18, 2009 (8:30am – 4:00pm)
– SAP Procurement Overview and Process
• March 3, 2009 (8:30am – 4:00pm)
– Courses are instructed on a quarterly basis
DGS Training Website
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Agenda Item #13
Replicated Contracts
• Any existing R3 contracts which have been replicated to SRM
(expiration date of 6/30/09 or earlier) are on daily batch jobs
– Any changes made to the R3 contract will be replicated and reflected
in SRM the next day
– It is the Commodity Specialists responsibility to check and validate
changes in the SRM contract
• The list consists of of active contracts which were previously
replicated
• Contracts will automatically be removed from the Replication batch
list when their expiration date is reached
• In order to renew a replicated contract, the Commodity Specialist
must create the new contract in SRM
• After 6/30/09, no replicated contracts should exist
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Agenda Item #13
R3 Contracts
• Any PO needed on a non replicated contract should be
created in R3 and utilize the NNB document type until the
contract is created in SRM
• All contracts existing in R3 which are genuinely being used
by agencies running MRP, should remain in R3 and not
replicated
– This process is to be vetted via R3 and/or BW reports
– MRP will be discussed further on our next slide
• Any contract existing solely for use by a warehouse to
replenish stock which is then distributed to agencies via
requisition, should remain in R3
• All “market price” contracts will remain in R3
• All SRM GOA document types requiring the use of scaling
should be created in R3 and re-evaluated at such time
scaling is tested
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Agenda Item #13
MRP Clarification
• MRP has a specific list of transactions found in SAP
• MRP does not mean simply “inventory”, MRP is a process
• The MRP Process plans, creates planned orders, converts
planned orders into requisitions and creates purchase orders
• MRP needs to have a reorder point, prior and future
consumption, replenishment, lot size, lead time and use
• In order for an agency to claim MRP, they must establish an
MRP Controller, Inventory Planner and material masters for their
requirements
• Material masters should be listed as contract line items when
the contract is created
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Agenda Item #13
Contracts in SRM
• With a few exceptions, all new contracts will be created in
SRM
– exceptions will be reviewed on a case by case basis
• Any contract containing services and expiring after 6/30/09,
will be built in SRM
• Any contract expiring before 6/30/09 and meeting the
criteria, will be replicated and it’s replacement built in SRM
• Any contract containing products which are inventoried, but
not via MRP, will be built in SRM
• Global Outline Agreements (GOAs) – Scaling is being tested
by IES
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Appendix
APPENDICES
A. Supplier Enablement
B. Sole Source Procurement
Process
C. Finance Transformation
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Appendix A: Supplier Enablement
SRM Punch-outs:
MeadWestvaco
– In development process
– 1 or 2 agencies to pilot (L&I & ?)
– Information needed from agencies:
• MRP: Agencies currently running MRP must provide a list
showing the material master for each item
• Agency Logo Artwork
– Refer to: Commonwealth Style Guide
– MeadWestvaco graphic requirements (provided)
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Email to Cheryl Kleeman
[email protected]
Deadline for submission:
Tuesday, February 17, 2009
Appendix A: Supplier Enablement
MeadWestvaco graphic requirements
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Appendix A: Supplier Enablement
MeadWestvaco graphic requirements continued
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Appendix B: Sole/Single Source Procurements
• Objective – Secretary & Governor’s initiative to make Sole/Single
Source procurements more readily available for public scrutiny.
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Appendix B: Sole/Single Source Procurements
• Benefits
–
–
–
–
Public Notice
Electronic internal agency approvals via e-mail
Electronic DGS internal approvals via e-mail
Archiving of Source Justification form and other
attachments for 3 years.
– Internal DGS reporting features
– Elimination of shopping carts for Sole/Single
Source requests for services
– Automatic notification to Dept of State
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Appendix B: Sole/Single Source Procurements
Agency will receive e-mail that DGS
Accepted the form and can finish
Processing Shopping cart
Rejected, Shopping Cart is returned
Agency prepares shopping
cart & places on hold
Agency completes online SJF
(including approvals)
DGS Material reviewer assigns
to CS for review
Agency submits electronic
SJF form to DGS
DGS Materials reviewer
receives e-mail to review SJF
DGS Materials
reviewer accepts or
rejects SJF
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BOP Internal Process
Upon final release by Board,
Material reviewer will update
eMarketplace with award info
Accepted
CS completes Determination
Summary, attaches to SJF &
approval form
Agency will receive e-mail
stating fully approved
CS routes to CPO for approval
CPO approves & sends back to CS
CS processes SPR & makes up PO
for Board release & approval
Dept of State will receive e-mail
PO/Supplier information
Appendix B: Sole/Single Source Procurements
Agency completes online SJF
(including approvals)
Agency will receive e-mail that DGS
Accepted the form
Agency submits electronic
SJF form to DGS
Agency will receive e-mail
stating fully approved
Agency may process PO
Rejected, email notification
BOP Internal Process
DGS Services reviewer assigns
to CS for review
DGS Services reviewer
receives e-mail to review SJF
Update posted on eMarketplace
with proposed award into.
DGS Services
reviewer accepts or
rejects SJF
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SJF routes for DGS approvals
Accepted
Dept of State will receive e-mail
PO/Supplier information
Appendix B: Sole/Single Source Procurements
• Key Dates
– Demo was provided to the eMarketplace Agency Focus Group on on 01/07/09
– Testing was conducted with agency personnel on 01/12/09
– Anticipated go live date will be sometime in February.
Other
No Substitutes - explain the request in the
comment section of the Shopping Cart
End User Procedures are in the process of being created
Have received already received some feedback for future enhancements.
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Appendix C: Procure to Pay –
Signature Authority for Invoice Payment
Current State
Future State
 Per Management Directive 205.4
agency identifies an individual who
should be granted the authority to
approve invoices for payment.
 Agency identifies an individual who
should be granted the authority to
approve invoices for payment.
 A Signature Authorization form is
completed and the form is kept on
file with OB, DGS and Treasury for
audit purposes.
 Individual is role mapped to either the
Invoice Receiver role or the Invoice
Verifier role. No additional forms are
required since role mapping will serve
as proof of approval authority for
Treasury.
 Role mapping is not based on dollar
value so agencies should evaluate the
individuals and roles accordingly.
 The role mapping change applies
only to payment of invoices, all
other processes remain as-is.
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Appendix C: Procure to Pay –
Goods Receipt Entry
Future Process
 Going forward, entry of a Goods Receipt (GR) will be required prior to
processing of a market-based PO invoice or an invoice with multiple
account assignments.
 For these two invoice types, the OB invoice processor will reject an
invoice that does not have a GR.
 The invoice will then route to the Agency PO Line Item Reconciler, who
will work with the Goods Receiver to make sure a GR is entered.
 Upon entry, the Agency PO Line Item Reconciler will accept the invoice
and it will then route back to the OB Invoice Processing Unit for review.
Rationale
 Market Priced – Invoices cannot be entered for market priced POs
therefore the only method to indicate to the agency that the invoice has
arrived is via workflow to the agency.
 Account Assignments – When a GR is not completed, the invoice
processor must calculate the split which is a labor-intensive, timeconsuming process only required due to a lack of proper receiving.
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Appendix C: Procure to Pay –
Supporting Documentation
Where should supporting documentation be mailed in the future?
 If documentation is currently required to be attached when submitting your
invoice to the Comptroller office for processing, in the future it should be
mailed along with the invoice to the appropriate new post office box for
pick-up and processing by DOR.
 If documentation is currently NOT required to be attached when submitting
your invoice to the Comptroller office for processing, in the future it should
continue to be mailed to the agency for retention and the invoice should be
mailed to the appropriate new post office box for pick-up and processing
by DOR.
Due to the varying requirements for supporting documentation within an
agency and/or program area, it would be best for each agency program
area to tailor the Non-PO vendor letter to indicate where supporting
documentation should be sent.
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Appendix C: Workflow for Agency
Fiscal Review of Shopping Carts
Required Actions:
 The recommendation for fiscal review in shopping
carts were received and will be live in production
2/6/09.
 We will be notifying agency project managers this
week that cart changes and role mapping will be
ready with an effective date of 2/6/09.
 These changes will impact all agencies with the
exception of Penn Dot with whom we are working for
a later date to allow time for training.
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Closing
Survey
-----------------------------------Thank you
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