Transcript Document

State Purchasing
Purchasing Directors’ Meeting
August 7, 2003
3:00 P.M.
Purchasing Directors’ Meeting
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
2
Purchasing Directors’ Meeting
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
3
Purchasing Directors’ Meeting
Legislative Update
DMS Point of Contact
Lisa Hurley, Esq.
(850) 488-3213
[email protected]
4
Purchasing Directors’ Meeting
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
5
Purchasing Directors’ Meeting
Florida Government EXPO Update
Florida Government EXPO
September 24-26, 2003
Tampa Convention Center
DMS Point of Contact
John Kuczwanski
(850) 414-6736
[email protected]
Click on Florida Government EXPO under Hot Topics at
www.myflorida.com
(http://www.floridagovernmentexpo.com/)
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Purchasing Directors’ Meeting
Florida Government EXPO Update
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
7
Purchasing Directors’ Meeting
Florida Government EXPO Update
•
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)
8
Purchasing Directors’ Meeting
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
9
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
10
State Purchasing Reorganization
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.
11
State Purchasing Reorganization
INTERIM To-Be Organization Structure
Director
State Purchasing
Chief of State
Purchasing Operations
Sr. Management Analyst I
Bureau Chief of Purchasing Commodities Transportation, Facilities & Supplies
Administrative Assistant
Operations
Specialist - IT
SPURS Team
Purchasing
Specialist
Energy
Furniture &
Floor Coverings
Purchasing
Analyst
Purchasing
Analyst
Purchasing
Specialist
Law Enforcement
& Traffic Supplies
Purchasing
Analyst
Purchasing
Analyst
Purchasing
Specialist
Computer Software,
& IT Research &
Consulting Services
Telecommunications
Equipment
& Services
Office Consumables,
Paper, Mail & Audio
Visual Equipment,
& Library Materials
Printing &
Office Equipment
Medical / Lab Supplies,
Rental Vehicles,
Travel, Recycling,
Surplus & Services
Insurance
Purchasing
Specialist
Purchasing
Analyst
Special Projects
Team Members
DMS Administration
Purchasing Manager
DMS Dept. Purchasing
Purchasing
Analyst
Purchasing
Specialist
Purchasing
Analyst
Purchasing Specialist Facilities Related
Goods & Services
Purchasing Specialist Non-Facilities
Goods & Services
Purchasing
Analyst
Purchasing
Specialist
Professional Services,
PRIDE & RESPECT
Special Projects
& Transition Team
Supervisor
Transition Team
Members
Purchasing
Analyst
Team 7
Purchasing Operations
Purchasing
Analyst
Team 6
Operations Manager Customer & Vendor
Satisfaction (CMBEs,
Surveys, Disputes)
Purchasing
Analyst
Team 3
MRO, Building &
Outdoor Equipment,
& Chemicals
SNAPS Team
Operations
Specialist - VBS
Purchasing
Analyst
Purchasing
Specialist
Food, Kitchen
Supplies, & Food
Services Operations
Computer Hardware
Team 5
Operations Manager IT (Software,
Hardware, Help Desk,
Web Site, Training)
Purchasing
Analyst
Team 2
Operations Manager Finance (Revenue,
Budget, LBR, Audits,
Metrics)
Automotive
& Marine
Administrative Assistant
Team 4
Operations
Specialist - Records
(Retention, Public
Inquires, Contracts,
PEC)
Administrative Assistant
Team 1
Operations Manager Governance (Policy,
Procedures, Bid Room,
Legislation, P-Card)
Bureau Chief of Purchasing Commodities Technology, Office & Services
DMS Dept. Purchasing
Purchasing
Analyst
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State Purchasing Reorganization
Team Members
Team 1
Jim Den Blyker – Auto & Marine
David Bennett, MBA – Energy
Rob Butler
Team 2
Ellen Potts – Furniture
Maureen Livings – Food
Brenda Wells
Team 3
Charles Beall – MRO, Equipment
Mark Lovell – Law Enforcement
Kimberly Hall
13
State Purchasing Reorganization
Team Members (cont.)
Team 4
David Comer – Computer Hardware
Stu Potlock – Software and IT
Chris Kincaid
Team 5
Marvin Williams - Telecommunications
Steve Poole – Office Consumables
Renee Gregory
Team 6
Charles Day – Printing & Office Equipment
Susan Barr – Med/Lab Supplies
Ommet Mbiza, MBA
Team 7
Theresa Dollar – Insurance
Tom Butler – Professional Services
Wendi Sellers
14
State Purchasing Reorganization
Operations Manager – Customer & Vendor Satisfaction
Victoria Chambers
[email protected]
15
Purchasing Directors’ Meeting
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
16
Purchasing Directors’ Meeting
Training and Certification Program
Excellence in Contracting Audit Report:
Undertake a statewide training initiative, and include
incentives to encourage professionalism and
certification
DMS Primary Contact
Fran Brooks
Office of Organizational Development
[email protected]
(850) 488-2187
17
Statewide Procurement
Training and Certification Program
• Integrated Program
Management Training
• National Institute of
Governmental Purchasing
• Certified Professional
Public Buyer (CPPB)
• Florida Association of
Public Purchasing Officers
• Certified Public Purchasing
Officer (CPPO)
• Nine Local NIGP Chapters
in Florida
• Agency programs and
trainers
18
Training and Certification Program
Goals and Objectives
• 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
19
Training and Certification Program
Strategy
• 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
20
Training and Certification Program
Integrated Program Management Training
•
•
•
•
•
•
Overview Course
Planning Course
Procurement Course
Performance Course
Certification Courses
Enhance the knowledge and skills of state employees
involved with procurement and project management
21
Training and Certification Program
Overview Course Objectives
• 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
22
Training and Certification Program
Planning Course Objectives
• 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
23
Training and Certification Program
Planning Course (continued)
• Issues to consider when constructing
specifications
– Procurement perspective
– Contract management perspective
• Balancing the competing factors of time
– Proper planning saves time
24
Training and Certification Program
Procurement Course Objectives
• Conduct pre-bid / preproposal 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
25
Training and Certification Program
Procurement Course (continued)
• Debrief an unsuccessful
offeror
• Handle protests and appeals
• Obtain agency and DMS
approvals
• Maintain a procurement file
• Resolve late bids
• Determine nonresponsiveness and vendor
responsibility
• Resolve with mistakes in
bids
• Handle Requests for Public
Records
26
Training and Certification Program
Performance Course Objectives
• 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.)
27
Training and Certification Program
Performance Course (continued)
• 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
28
Training and Certification Program
Performance Course (continued)
• Evaluate contractor
performance
• Transition between
contractors
• Insure run out
requirements are
satisfied
• Revise specifications to
apply lessons learned
for subsequent
procurements
29
Training and Certification Program
Certified Professional Public Buyer (CPPB)
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
30
Training and Certification Program
Certified Professional Public Buyer (CPPB)
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
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
31
Training and Certification Program
Certified Public Purchasing Officer (CPPO)
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
32
Training and Certification Program
Certified Public Purchasing Officer (CPPO)
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
33
Training and Certification Program
Next Steps
• 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
34
Purchasing Directors’ Meeting
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
35
Strategic Sourcing Objectives
Leverage StateWide Volume
Obtain Best
Prices & Value
Obtain StateWide Savings
Increase Demand
/ Volume on STCs
Manage
Compliance
Reduce StateWide Supply Base
Identify New STC
Opportunities
Strategic sourcing is a proactive process to leverage demand
and select vendors that offer the best value.
36
Strategic Sourcing Benefits
• 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
37
Strategic Sourcing Wave 1
Kick-Off
- &
Kick-Off
&
Assess
Assess
Opportunities
Opportunities
Profile
Profile
Internally
Internally &
&
Externally
Externally
Develop
Develop
Strategy
Strategy
Develop
Screen
Selection
Suppliers
Factors
&&
Selection
Screen
Factors
Vendors
Conduct
Conduct
Competitive
Auctions &
Event
Office
Supplies
MRO
Supplies
Printing
Prepare
Shape
&
Value
Negotiate
Proposition
Value
&
Award
Propositions
Implement
Implement
Agreements
Agreements
• DMS Lead – Tom Butler
• Sourcing Event – Auction
• Target STC Date – Oct. 2003
• DMS Lead – David Comer
• Sourcing Event – ITB
• Target STC Date – Oct. 2003
• DMS Lead – Charles Day
• Sourcing Event – RFP
• Target STC Date – Nov. 2003
38
Strategic Sourcing
First Steps
•
Discuss current contract to identify weaknesses and strengths
–
–
•
Develop new contract strategy
–
–
–
–
•
Get spend data from FLAIR
Reach out to vendors and request spend data
Conduct Buyer needs assessments (interviews, surveys, etc.)
–
•
Auction event
Item “lots”
Core and Non-core items
2 Phase solicitation to pre-qualify vendors
Gather spend data to help build new strategy
–
–
•
Too many vendors (weakness)
Good use of web-based buying
Get agency feedback on SLA’s
Construct solicitation document, get it approved and post it
–
–
Phase I pre-qualifies
Phase II leads to auction
39
Strategic Sourcing
Phase I Details
• 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
40
Strategic Sourcing
Where We Are
•
The Phase II documentation was released July 25th
–
–
•
Multiple emails were sent to vendors to prepare them for new bid
system
–
–
•
Vendors were given optional training for a complicated piece of the bid package
Q&A period ends today for vendors
–
•
Online sourcing training
Contract specific sourcing training document
Conducted conference call training events for bid tool
–
•
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
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)
41
Strategic Sourcing
Things I Learned
• 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.
42
Purchasing Directors’ Meeting
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
43
Purchasing Directors’ Meeting
Operational Issues
 Commodity Codes
 Vendor Bid System
 Purchasing Offices List
 Microsoft Settlement
 Draft Solicitations
44
Operational Issues
Commodity 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
45
Operational Issues
Vendor 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)
46
Operational Issues
Purchasing 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]
47
Operational Issues
Microsoft 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
48
Operational Issues
Draft 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)
49
Purchasing Directors’ Meeting
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
50
Purchasing Directors’ Meeting
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
51
Purchasing Directors’ Meeting
Next Meeting
 Time-
4:30 to 5:30 p.m.
 Date-
Thursday, September 25, 2003
 Location-Tampa Convention Center
52