University Procurement 101

University Procurement FY07 STATISTICS

 1,700 Purchase Orders; over $73M  118,000+ PCard Transactions; over $40M  2,700 of those placed by University Procurement

Drexel and Drexel College of Medicine STATS

 Roughly 20,000 FT & PT Students  5,000 Employees  889M+ Operating Budget  1,000 Active Research Projects/100M  Real Estate Management  Physician Practices

University Procurement Strategies

 E-Procurement (aka - Business-to Business, E-Commerce, Marketplace)  Purchasing Cards  Distributed Requisitioning  Contract Compliance  Supplier Diversity  Green Initiative

University Procurement Guidelines

 Use University Procurement as a resource  Utilize existing contracts (e.g., E&I, Broadlane, etc.)  Solicit competitive bidding

University Procurement Guidelines

 Maintain quality relationships with vendors  Accept no private benefits  Avoid conflict of interest

University Procurement Guidelines

 Purchase within available budget  NEVER use College purchases for personal use  Reference National Association of Educational Procurement (NAEP) Code of Ethics at: http://www.naepnet.org/ Content/NavigationMenu/AboutNAEB/Go vernancePolicy/CodeofEthics/Code_of_Eth nics.htm

Quotes & Bids

 Maintain the confidentiality of all quotes and bids  $2,500 - $4,999 compare two (2) or more quotes (web, telephone or fax quotes are acceptable) – Exception Vendor with contract/pricing agreement  $5,000 - $25,000 three (3) written bids (even if it is a preferred vendor with whom we have a contract or pricing agreement).

Quotes & Bids

  $25,000 and above – a good business practice would be to involve University Procurement to help prepare a formal Request for Proposal or Request for Quotation University Procurement is available to help you obtain your quotes/bids

Quotes & Bids

 Utilizing a preferred vendor with whom we have a pricing agreement or a contract doesn’t negate the bid requirements EXCEPT at the $2,500 to $4,999 range (e.g., E&I, Office Depot, Broadlane)

WHAT IS Sole Source?

 Specific products or services available from only ONE source; also called sole provider, sole supplier, sole vendor, or sole distributor

Competitive Bid Exception Guidelines

 Emergencies  Uniqueness  Proprietary  Availability  Compatibility

Sole Source/Competitive Bid Exception Guidelines

 Justification letter required denoting all of the criteria that apply with a full explanation.

 Because the requestor is asking for an exception, due diligence requires that we ensure the next level approver is aware of this exception request; in other words, they countersign the justification statement.

CONSULTANTS

 Justification required before engaging consultants  Here too, must be countersigned by next level approver  Information on the consultant selected, along with a justification for the selection based on the technical details of the project.

Before You Buy. . .

 Verify your available funds  Review Spending Guidelines (http://www.drexel.edu/procurement/guidelines/ spending.html)  Ensure Request has valid signatures  Ensure Requests using grant funding are routed to Office of Research & Compliance Administration

Common Problems with incoming Purchase Requests

□ □ □ □ □ □ □ □ □ □ Missing Signature(s) Invalid Approval Signature Needs Office of Research Approval Quotes Required____________________________ Invalid/Missing Cost Center-FUND/ORGN/ACCT Needs Bid Exception Letter Insufficient Funding Bid Exception Letter Missing Next Level Approver Missing/Insufficient Requestor Information Missing Vendor Information

Drexel Purchasing Services

Equipment Management Program

December 11 & 13, 2007

Equipment Maintenance Program  The

Specialty Underwriters Equipment Maintenance Program (EMP)

was launched at the Medical School in April 2007  A new and innovative business model that provides an opportunity for Drexel University to: – Continue to utilize current service providers while reducing annual equipment maintenance costs up to

30%

Equipment Maintenance Program

--About the Program--

 Replaces traditional equipment maintenance agreements that are based on worst case scenario  Enables departments to better manage risk resulting in lower cost for service  Provides a single point of contact for all service requirements  Enables departments to continue to utilize existing service providers

Equipment Maintenance Program

--Key Program Features--

 Offers significant cost savings opportunity  Equipment can be added or deleted as required  Provides review and audit capabilities for service performed  Inventory of Equipment  Provides online management reports  Single Source for Dispatch of Vendors

Equipment Maintenance Program

--Benefits to Customers--

 Reduced administrative burden resulting from one supplier for all requirements  Lower service costs versus traditional maintenance contracts  Fixed cost for term of contract  Preventive maintenance monitoring of equipment, inventory management & online reporting capabilities

SU / E&I Equipment Maintenance Programs 2007 Cost Savings Report  15 Universities  Existing service cost for FY2006 – $3,279,893  Specialty Underwriters service cost for FY2006 – $2,477,279  Cost Savings – $802,614

Customers SU and E&I Serve               

Drexel ↑ University of Penn ↑ University of Pittsburgh ↑

University of West FL

↑

University of Oklahoma

↑

Texas Tech

↑

Rosalind Franklin University ↑ University of Iowa

↔

Northwestern

↔

New Mexico State

↔

LA BioMed ↔ Rio Hondo ↔ Mount Union ↔ University of WI ↔ Penn State University ↔

Department

Equipment Maintenance Program

FY2007 Participation

Contact SU Cost QTY of Equip.

2

Maintenance Contract Cost

$21,261 $14,883 Biochemistry & Molecular Biochemistry & Molecular Chaiken Sherwood Pharmacology & Physiology Chaiken 24 2 $34,980 $21,261 $27,823 $14,883

Annual Savings

$6,378 $7,157 $6,378

TOTAL: 27 $66,716 $50,886 $15,830

Drexel University

Equipment Maintenance Program

FY2007 Open Quotes Departments M/C Cost SU Proposed Cost Annual Opportunity Savings 14 $205,622 $146,014 $59,608 School of Med 13 $215,919 $139,305 $56,614

Total: 27 $421,541 $305,319 $116,222

Communication Equipment

• Audio/Visual Systems • Emergency Systems • Overhead Paging Systems • Intercom Systems • Radios • Telephone Systems • Voice Mail Systems

Data Processing Equipment

• Bridges • Controllers • Hubs • Multiplexors • PCs and PC Peripherals • Routers • Scanners • Servers

Mail Equipment

Inserters Labelers Machines (Not System) Openers Scales Stackers

Laboratory Equipment

• Autoclaves • Cell Savers • Cell Washers • Centrifuges • Chemistry Analyzers • Chromatography Equipment • Computers • Densitometers • DNA Analyzers • Electrolyte Analyzers • Electron Microscopes --Electrophoresis Equipment • Gamma Counters • Hematology Analyzers • Immunoassay Analyzers • Microbiology Analyzers • Microscopes • Scales and Balances • Spectrophotometers • Tissue Analyzers

Security Alarm Equipment

• Alarm Systems • Card Access Systems • CCTV Systems • Electronic Gates and Doors • Electronic Library Security Systems • Fire Alarms • Protection Systems

Office Equipment

• Binders • Bursters • CAD and CAM Systems • Card Readers • Cash Registers • Check Signers • Coin Sorters and Packagers • Copiers • Currency Counter • Dictation Equipment • Electric Rotary Files • Electronic/Electrical Print Equipment • Electronic/Electrical Press Equipment • Electronic Typewriters • Embossers • Facsimile Machines • Folders • ID Card Readers • Laminators • Microfilm Equipment • Printers • Retail Scanners • Shredders • Time Clocks • Transient Voltage Protection Equipment • Uninterrupted Power Supplies

Six Step Quote & Implementation Process 1. SU collects customer equipment data • Service contracts • Contract proposal • Vendor invoice • Purchase Order • Make, model, serial number 2. SU analyzes information • Review pricing, terms • Compare vs. industry standards • Compare vs. actuarial data • Identify savings opportunities 3. SU provides quote to user • 7–10 business day turn around time • Identify SU vs. current costs • Identify exclusions, additional services, coverage options • Group equipment: risk transfer and contract-to-contract 4. Customer determines what equipment to add • Not all or nothing quotes • Prefer minimum 30-day window prior to start date to ensure a smooth transition • Staggered renewals/start dates tracked in SU Warranty Watch 5. SU notify customer’s Preferred Vendors 6. SU forwards Invoice, paper work, and Equipment Tags • Customers receive copy of agreement, schedule of Self Adhesive Equipment Tag example: equipment, Equipment Tags

SPECIALTY UNDERWRITERS TELESERVE CALL: 800-833-7050

12345

ON GOING SUPPORT

• Users can add/remove equipment without penalty • Real-time management reports are available online • SU will provide updated schedules of equipment and renewal notices 60 days prior to the renewal date

Coverage's

• Corrective Maintenance Coverage: – Electrical Breakdown – Mechanical Breakdown – Parts/Labor/Travel – Hours of coverage per vendor contract.

– Consumables per vendor contract.

Coverage's

• Preventative Maintenance Coverage: – Per vendor contract • Rental of Substitute Equipment • In-House Payments on repairs at $35/hr • Equipment Inventory and Tagging • Work Order & Vendor Pay Process • Management Reports

Equipment Maintenance Program

--Next Steps--

 Obtain copies of current maintenance contracts  Identify items suitable for Equipment Maintenance Program  SU provides quote  Identify equipment start dates  Inventory / Tag items

SU Contact Information Chad Frank or Tim Peterson 800-558-9910

1251 Metropolitan Ave.

Thorofare, NJ 08066 (856) 853-5160 Tel (856) 853-5164 Fax

DENVER ▪ PHILADELPHIA-DELAWARE VALLEY ▪ COLORADO SPRINGS “Your Cradle to Grave Records Management Service” Joe Menzano -Operations Manager 856-853-5160 ext 302

Introduction

• Records Management • Secure Shredding • Media Vaulting • Imaging and Archiving Services • DocuVault is a full service “cradle to grave” records management company that give its clients personalized services.

DocuVault Secure Shredding

• 100% Secure Process • Utilize latest Technology • Employee Selection Process (AAA Certification)

• Driving record checks. • Pre-employment drug tests • On-going drug tests.

• Extensive criminal history checks.

Joe Menzano-Operations Manager 856-853-5160 ext 302

The Process

• A successful shredding process integrates the front end, the exchange and the back end while maintaining 100% security throughout.

• All Containers will remain locked until seconds before destruction.

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Lockable Containers

Console Dimensions: 20 x 20.5 x 37 Weight: 60 lbs Material: Melamine Construction Capacity approx 100 lbs 96 Gallon Bin Dimensions: 30.5 x 36 x 45 Weight: 37 lbs Material: Hardened Plastic Capacity approx 300 lbs

64 gal (24x32.5x44)

Joe Menzano-Operations Manager – 856.853.5160 ext 302

The Process

• Containers are then locked inside DocuVaults real time GPS Tracked vehicles.

Joe Menzano-Operations Manager 856.853.5160 ext 302

Process  Containers are then unloaded at DocuVaults enclosed shredding plant and escorted directly to the shredder for immediate destruction.

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Certification

• A Destruction Certificate for you files will be mailed directly to you.

• Certificate will include dates and amount of containers exchanged.

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Key Points to Consider – Scheduled Service/No need to call for pick up.

– Pay for what you shred – No Hourly/minute fees and no stop minimums.

– Customer preferences are built into our service.

– GPS tracking of vehicles

What this means…

Joe Menzano-Operations Manager – 856.853.5160 ext 302

What this means…

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Records Management

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Store and Manage Your Info

• Setting Up the Customer – DocuVault provides customers with all labels and forms.

– Personal training on DocuVault procedures.

• Indexing Procedures – Train customers/advise customers on how to organize files for retrieval.

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Store and Manage Your Info

• Order files over the phone, on the web or via facsimile.

• Phone – (856) 853-5160 • Fax – (856) 853-5164 • Web Retrieval: www.docuvault.com

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Store and Manage You Info

• Web Retrieval – Log onto www.docuvault.com

– Enter username and password – Manage your entire inventory via secure server – Request files, pickups, deliveries, order boxes, labels Joe Menzano-Operations Manager – 856.853.5160 ext 302

Store and Manage Your Info

• Your files can be delivered: – Next Day – Same Day – Rush (within 2 hours) – After Hours – Weekends – Holidays Joe Menzano-Operations Manager – 856.853.5160 ext 302

Store and Manage Your info

• Set up retention schedule – All boxes will be assigned a destruction date.

– Upon destruction date DocuVault will contact you for approval.

– Once approved in writing DocuVault will pull documents for the archive and destroy them.

Joe Menzano-Operations Manager – 856.853.5160 ext 302

Security

• Security company monitors 24/7/365 • Sensors: motion, glass break, water, temperature • Digital color video surveillance Joe Menzano-Operations Manager – 856.853.5160 ext 302

Key Points to Consider – Training for customers – 24 hour access to files – Same day delivery standard pricing – Web Retrieval – No double delivery charges for pickups – Access to key personnel • Direct lines as well as cell phones – No charges for Reports – No charges for Labels – Records Retention Schedules Required

How do I get started?

• Call Joe and set an appointment.

– Your department will be set up as a DocuVault customer.

– Andrew will bring all labels and forms to your office for training.

– Your department will be trained on: • Indexing your information • Organizing your boxes for pick up • How to request files and boxes • How to send files and boxes back to Docuvault • Setting up a records retention program Joe Menzano-Operations Manager – 856.853.5160 ext 302

Website

 www.drexel.edu/depts/procurement/

Presented by: Joanne L. Whitby Director of Corporate Services

Preferred Moves Program

SM

and Drexel University

• Who is this for?

• The benefits of this program • How to access the program • www.du.preferredmoves.com

• Present Affinity Partners and Service Providers • Evaluations • The Perfect Partnership

Who is This Program For?

Faculty, Employees, Alumni, Students, Family and Friends

Benefits

• Absolutely no cost to use the Preferred Moves SM service • Experienced high-touch counseling and nationally recognized service partners • Cash-back rewards which are 10% of the transaction side of the commission Examples are on a 3% commission scale $150,00……….$450 $200,000-……$600 $400,000…….$1200

Some state regulations do not allow cash back in some states

Access

• Visit www.du.preferredmoves.com

• Call our toll free number, 866-786-5512 and speak with a Preferred Moves SM counselor to learn more about the benefits and to enroll

www.du.preferredmoves.com

• • •

Visit www.du.preferredmoves.com

and take a look at the menu of tremendous benefits and services available Enroll using the drop down menu and a Preferred Moves sm Counselor will contact you and assist you through your transaction Come back and use the services as many times as you like

Present Affinity Members

• • • • • • • • • • • •

GlaxoSmithKline Lockheed Martin Clemens Uniform Crown Cork & Seal Foamex Blue Cross Jacobswyper Bentley Systems Kistler Tiffany Locus Pharma Pep Boys MEDecision

• • • • • • • • •

Rosen Group SunGard Tengion Teknion The County of Chester Manayunk Sports and Social Club University of Scranton Alumni Vanguard YMCA of the Brandywine Valley

Service Providers

• • • • • • • •

Countrywide Mortgage PHH Mortgage Wells Fargo Reads Atlas UB Pack Travelers Insurance AutoDriveaway PetRelocation

• • • • • •

PODS Korman HomeNet Solutions First American Home Buyers Protection Corporation Korman Suites Marriott Execustay

Evaluations

• Mark S. with GSK, Oakdale, PA Great experience! I greatly enjoyed working with all in this program and would recommend it to others • Melanie G. with Lockheed Martin, Littleton, CO This was a really great experience! I have never had such a smooth move and closing before. I will most certainly recommend Preferred Moves SM to friends and I will seek you out again should I need to relocate in the future.

Preferred Moves

SM

and Drexel University -The Perfect Partnership……

This benefit is a remarkable option in attaining the American dream of homeownership. Community initiatives are a strong force in the University Mission Statement, with Preferred Moves sm the pride of homeownership gives everyone the opportunity for a greater connection to the community.

Travel Portal

www.campustravel.com/university/drexel

/

• Hotels – Local Contracted Rates • Club Quarters, Sheraton City Center, Inn at the Union League and Windsor Suites • Car Rentals – Contracted Rates • Avis, Budget, and Enterprise

Travel Portal

• Agencies - MARATHON TRAVEL For More Travel Information Visit Our Website www.campustravel.com/university/drexel/

PCard

JP Morgan Chase VISA www.PaymentNet.com

How Does DU Purchasing Card Work?

• Much like a personal credit card • University liability • Reassign charges to cost centers • Print statement of account and verify all charges • Data is imported into Banner Finance on a monthly basis

Budget Charges

 Card default: Departmental cost center (fund/org). All charges will be posted there unless you reassign them via PaymentNet TM .  .Charges will be uploaded into Banner Finance at month end.

Benefits

 Reduced paperwork: requisitions, check requests, and purchase orders  Reduces petty cash funds and cash exposure  Allows a cardholder to deal directly with suppliers  Faster processing time for end users

Benefits

 Personal funds are no longer needed for purchases  Reduces processing for the cardholder, Purchasing and Accounts Payable  Because it is consolidated invoicing for a single monthly payment: saves time, stationery, checks, postage and filing

Good Uses

 For use of low dollar purchases under $2000  Dues, memberships, licenses, application fees  Conference and seminar registration fees  Stamps, postage fees  Books, publications, periodicals, subscriptions, reprints, newsletters, videos and audio recordings  Advertisements

Good Uses – cont.

 Business Travel: Airline, hotel, rental car reservations and meal expense within departmental guidelines

Restrictions



Absolutely No Personal Charges

 Traveler’s Checks or cash withdrawals from ATM machines.

 On Campus purchases of any sort or for services that can be performed by another on campus department

Restrictions



Alcoholic beverages

.

 Some grant purchases over $1000, must be pre-approved by the Office of Research prior to purchase.

 Additional Restrictions can be found on the Procurement website.

Safeguards

• Purchases are tracked to cardholder • Statement of Account reviewed for appropriateness monthly • Purchasing, Comptroller, and Internal Audit have access to all transactions

Card Security

• Use of card by anyone other than the cardholder is prohibited • Secure the card and account number at all times • Set spending limits • Platinum Visa protection

Before Buying

 Remember the NAEP Code of Ethics  Bid/Quote rules are consistent with the Purchase Request Process.

 Utilize Preferred Vendors to receive negotiated benefits

At point of sale

 Vendors must not charge higher prices for credit card purchases  Indicate this is a Drexel University Purchase  Indicate purchases are exempt from state sales tax; certificates are available from A/P

Read more about it!

 Cardholder Responsibilities  Disputed Transactions  How do you get a Card?

 Go to: Procurement’s website: http://www.drexel.edu/procurement/card/

Procurement Contacts

          Joe Campbell, [email protected]

Debbie Rizzo, [email protected]

Anna Griffin, [email protected]

Charlene Rice, [email protected]

Gwen Green, [email protected]

John Dick; [email protected]

Carmen Spears, [email protected]

Una Massenburg, [email protected]

Kathleen Maertzig, [email protected]

Michele Arias-Ramos, [email protected]