Transcript Purchasing Directors’ Meeting February 16, 2012 Agenda • • • • • Welcome Comments – Kelley Scott Introductions – All FACTS/SCRS Update – Christina Smith and Elwood McElhaney Mobile Communication Services.

Purchasing Directors’
Meeting
February 16, 2012
Agenda
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Welcome Comments – Kelley Scott
Introductions – All
FACTS/SCRS Update – Christina Smith and Elwood McElhaney
Mobile Communication Services Contract – Jonathan Rakestraw
Office of Supplier Diversity Mentor-Protégé Program – Thad
Fortune
• MyFloridaMarketPlace Update – Danielle Kosberg
• State Purchasing Analysis Process – Cliff Chroust
• Hot topics - All
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FACTS/SCRS Update
Department of Financial Services
• Christina Smith, Director of Accounting and Auditing
• Elwood McElhaney, Project Manager
3
Mobile Communication Services Contract
Jonathan Rakestraw
Operations Management Consulting Manager
Division of Telecommunications
[email protected]
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Mobile Communication Services Contract
• AT&T Mobility (Contract No. DMS-1011-008A)
• Sprint Solutions (Contract No. DMS-1011-008B)
• Verizon Wireless (Contract No. DMS-1011-008C)
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Mobile Communication Services Contract
DMS DivTel MCS – Customers
• State agencies –
• Eligible customers –
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Local governments (cities and counties)
Water management districts
Educational institutions (schools, universities, and community colleges)
Non-profit organizations
Eligible for E-rate funding
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Mobile Communication Services Contract
DMS DivTel MCS Kick-Off Meeting for CIOs
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Wednesday, February 29, 2012 at 9 a.m., Eastern time
Betty Easley Conference Center, Room 152
4075 Esplanade Way, Building 4075, Tallahassee
Seating is limited; please limit the number of people attending
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Office of Supplier Diversity Mentor Protégé Program
• The State of Florida's Mentor-Protégé Program is the first statesponsored program of its type created to pair certified business
enterprises with private corporations.
• The purpose of this program is to contribute to Florida's
economic growth by increasing opportunities, developing joint
ventures and providing Florida's minority, women, and service
disabled veteran businesses the necessary tools for success.
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Office of Supplier Diversity Mentor Protégé Program
• The Mentor-Protégé Program enhances the capability of
Florida's certified minority, women, and service disabled veteran
businesses participation to compete more successfully for state
government contracts.
• The program also provides an avenue for Florida's certified
minority, women, service disabled veteran businesses to achieve
entrepreneurial success and contribute to the strength and vigor
of the economy in Florida.
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Office of Supplier Diversity Mentor-Protégé Program
Brainstorming
• Opportunities for mentor businesses
– Mentor and protégé businesses work together to develop new business
development approaches based on proven business strategies
• Previous relationships (mentor listed first below):
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Office Depot and Magnetic Imaging Supplies Inc.
GTECH and Flamingo Graphics
Deloitte Consulting, LLP, and ISOCORP Inc.
Turner Construction and HZ Construction, Inc.
• Office of Supplier Diversity has many interested protégé
businesses
– How can agencies help encourage mentor businesses?
10
MyFloridaMarketPlace Update
DFS W-9 Initiative Vendor Update
MyFloridaMarketPlace vendor W-9 statistics as of Feb. 6
• 24,194 MyFloridaMarketPlace vendors have a valid W-9 on file
• 88 percent of purchase orders created this fiscal year for vendors with valid
W-9s
• 92 percent of invoices were paid this fiscal year for vendors with valid W-9s
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MyFloridaMarketPlace Update
MFMP Process for W-9
• The W-9 status is at the Federal Employee Identification Number
(FEIN) level
• MyFloridaMarketPlace receives a nightly batch from DFS that updates
the Vendor Information Portal (VIP)
• The next night VIP sends the updates to Buyer
• W-9 status in MFMP is for informational purposes only
• FLAIR will deny encumbered requisitions if the vendor does not have a
valid W-9 on file
– MFMP will display an error message referencing vendor status in
FLAIR
• Approved invoices will be returned to the invoice manager if the invoice
fails processing in FLAIR due to a vendors invalid W-9. MFMP will
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display an error message referencing vendor status in FLAIR.
MyFloridaMarketPlace Update
Possible W-9 Status in MFMP:
1.
2.
3.
4.
5.
6.
No W-9 on File
Pending IRS TIN Matching
Failed IRS TIN Matching
Valid W-9 on File
B Notice Error
Passed IRS Tax Identification Number (TIN) Matching
without W-9
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MyFloridaMarketPlace Update
Creating Requisitions - Check that your selected
vendor has a valid W-9 on file with DFS
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MyFloridaMarketPlace Update
Creating Invoices – check vendor’s W-9 status
15
MyFloridaMarketPlace Update
MFMP reports available:
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All open orders current fiscal year
All open orders previous fiscal year
All received orders current fiscal year
All received orders previous fiscal year
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MyFloridaMarketPlace Update
Vendor Database Cleanup
• Targeted for end of February
• Based on four specified criteria (purchase order activity, FLAIR
payment activity, vendor location updates, and state term
contract status), MyFloridaMarketPlace will inactivate a vendor's
location
• If all the locations associated to a registration are inactivated, the
registration also becomes inactive
• MyFloridaMarketPlace processes updates as one set in VIP but
will send in batches to downstream applications (MFMP Buyer,
Analysis, FLAIR, MarketView)
• Continue this yearly within the first two weeks of the fiscal year
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MyFloridaMarketPlace Update
Require State Term Contract Number
• Targeted for end of March
• Based on selected method of procurement, MFMP 3.0 will
require agencies to specify contact number when creating
requisitions
• Allows State Purchasing increased visibility of spend on contracts
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State Purchasing Training
Training Seminars / Contract Webinars
• Seminars: Tampa and Orlando
– Trainer is Anne Rabon, MyFloridaMarketPlace Finance and Accounting
Process Analyst
– Visit our website for details and registration
http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamar
ketplace/mfmp_buyers/myflorida_marketplace_toolkit/buyer_training_opportunitie
s/statewide_training_sessions
– Watch for additional MFMP 3.0 training webinars coming
in March!
• State term contract webinars
– Learn about renewed and/or new contracts
– Coming Feb. 21 – Ammunition and Less-Lethal
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State Purchasing Training
• Developing a training focus group to look at certification and
recertification
– Four members from Procurement Process Improvement Project
– Four members from Florida Professionals for Public Procurement
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STC Contract #518-020-10-1 Rental Vehicles
Avis car rentals
• Effective Feb. 7, 2012, contract allows unlimited mileage again
• Effective July 1, 2012, State Purchasing authorized a 4.9
percent increase
– When compared to consortia contracts, the July 1, 2012, rate is:
• 8 percent lower on average on the state’s most common rentals (subcompact, compact, mid-size)
• At least14 percent lower on average on all state rentals
• Department of Financial Services’ policy requires state
agencies to rent compact vehicles
– DFS requires justification for rental of anything larger than compact
– Agencies can choose not to reimburse employees for rental of anything
other than compact
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State Purchasing Analysis Process
Introduction to the analysis process
• What we have to work with
– Vendors
• Vendors are tracked by Federal Employee Identification Number
(FEIN)
• Vendors can have multiple FEINs for one name
• Vendors can have multiple names on one FEIN
– Total spend
• FLAIR Fiscal Year 2011:
• MyFloridaMarketPlace Fiscal Year 2011:
$46,610,859,188.00
$ 1,750,205,060.90
– Total mapped spend
• FLAIR Fiscal Year 2011:
$ 6,038,560,067.99
22
State Purchasing Analysis Process
Exclusions
FLAIR Sum
Care and Subsistence - Client Benefits
and Allowances
$
17,161,420,442.12
Aid to Counties - Educational
Other
Distributions and Transfers
$
$
$
Other Structures and Improvements
State Financial Assistance
Other Distributions
Exclusions (continued)
From $46 billion to
$6 billion
FLAIR Sum
Refunds
$
6,608,043,138.63
3,560,618,196.44
2,486,548,980.00
Other Current Charges and Obligations
Other Pensions and Benefits
Building and Construction Materials
$
$
$
62,390,710.47
29,396,929.94
26,118,119.70
$
$
1,921,455,545.41
1,524,716,212.81
Care and Subsistence - Transition Services
Loans
$
$
20,135,118.13
17,979,431.25
$
1,491,883,301.49
Expert Witness Fees
$
17,944,678.72
$
$
$
1,027,274,684.95
971,437,954.81
695,702,926.36
Distributions and Transfers (Continued)
Building and Fixed Equipment
Payments for Information and Evidence
$
$
$
16,876,852.24
14,884,333.10
12,169,619.81
$
$
$
452,249,176.12
433,771,741.80
281,892,327.17
Architectural
Relief Acts
Rental from Other Governmental Units
$
$
$
6,106,231.76
4,610,000.00
4,378,693.63
$
264,019,143.70
Operating Distributions and Transfers Required by Law
$
3,163,483.09
$
258,032,300.32
Royalties
$
3,071,827.98
Care and Subsistence - Medical Services
$
254,790,038.42
Jurors and Witnesses Fees
$
2,420,873.48
Employer Contributions - Optional
Retirement/Annuity Plan
$
219,861,578.25
Training – In State Travel
$
1,525,409.61
Land
Rental from Non-Government Entities
Worker's Compensation Benefits
$
$
$
182,243,666.69
156,590,798.82
122,679,963.54
Mileage – In State Travel
23 Excluded items under 1 Million
Grand Total
$
$
$
1,054,571.04
4,430,910.36
23
40,437,176,945.38
Care and Subsistence - Other Vendor
Services
Aid to Counties - Other
Engineering
Educational Aids
Principal
Construction
Interest
Aid to Municipalities
113,287,033.22
State Purchasing Analysis Process
FLAIR Object Codes Mapped to Spend Cube - $6 Billion in Spend
Organization Chart – DMS Purchasing
SOURCEABLE
GOODS
Facilities
MRO
IT
SERVICES
Office
Expense
Supplies
Energy &
Utilities
Fleet & Law
Hardware
Software &
Services
Commercial
Services
Professional
Services
Office Furniture
Chemicals
Fuels
Vehicles
Hardware
Consulting
Computer
Software
Financial Services
Human Services
Office Supplies
Emergency
Services
Utilities
Fleet
Maintenance
IT Hardware
IT Services
Miscellaneous
Services
Communications
& Media Related
Services
Paper &
Packaging
Materials
Drugs &
Medical/Lab
Equipment
Fleet Parts
Specialized
Hardware
Software
Consulting
Mail & Print
Services
Consulting
Office Equipment
Food & Food
Supplies
Heavy Equipment
Telecom
Hardware
Telecom
Services
Facilities &
Ground
Maintenance
Educational
Courier Services
PRIDE & RESPECT
Outdoor Power
Equipment
Travel
Management
Miscellaneous
Law Enforcement
Supplies
Safety & Security
Professional
Travel Services
Key
Class
Group
Family
Category
SubCategory
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State Purchasing Analysis Process
Consortia Contracts
• Available sources
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National Association of State Procurement Officials
Multi State Contracting Alliance
Minnesota Alliance for Pharmacy
Novation
Educational Institute Coop
US Communities
Houston Area Council Coop Purchasing
National Joint Powers Alliance
National Intergovernmental Purchasing Alliance
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State Purchasing Analysis Process
Pipeline
• 40 current contract actions
• 20 new opportunities
– Eight possible co-op / consortia opportunities
– ITN comprise a majority of the remainder
– Multiple roll-up opportunities
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State Purchasing Analysis Process
Pipeline – Goods: New Activity
Contract Name
Est AnnualSpend
Method
Auto parts
$25,000,000.00
ITN
Chemicals: Agricultural and
Herbicides (e.g., fertilizer)
$75,000,000.00
ITN
Equipment Rental (Heavy)
$25,000,000.00
ITN
Medical Equipment
$10,000,000.00
ITN
Park and Playground Equipment
22,000,000.00
ITN
Restaurant and Kitchen Equipment
$1,000,000.00
ACS
School Buses, Small Buses,
Specialty Vans
$75,000,000.00
ITN
Walk-up Building Supplies
$3,000,000.00
ACS
Weight Calibration
$4,000,000.00
ITN
Notes
Consortia available: Western States Contracting Alliance (WSCA), U.S. Communities, National Joint
Powers Alliance (NJPA), National Intergovernmental Purchasing Alliance(National IPA); Option to
source and be lead for a consortium contract.DOT interested in parts contract. Second most
requested contract by Other Eligible Users
Consortia search yielded no viable results. Option to source and be lead for a consortium contract.
Number one request from Other Eligible Users. Possible Single Source issues.
Consortia available: National Joint Powers Alliance (NJPA), U.S. Communities, National
Intergovernmental Purchasing Alliance(National IPA); Option to source and be lead for a consortium
contract.
Existing State Term Contract - Identified possible maverick spend or need to add line items;
conducting research; Consortia available: Western States Contracting Alliance (WSCA), National
Intergovernmental Purchasing Alliance(National IPA), National Joint Powers Alliance (NJPA),
Educational and Institutional Cooperative Purchasing (E&I).
Consortia available: National Joint Powers Alliance (NJPA), U.S. Communities; Option to source and
be lead for a consortium contract.
Consortia available: National Joint Powers Alliance (NJPA), U.S. Communities; research will be
conducted to determine which contract to utilize.
Consortia available: National Joint Powers Alliance (NJPA); State Term Contract existed in past need to research reason for not pursuing since.
Consortia available: Western States Contracting Alliance (WSCA), U.S. Communities, National Joint
Powers Alliance (NJPA), National Intergovernmental Purchasing Alliance(National IPA), The
Cooperative Purchasing Network (TCPN)
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Consortia search yielded no results. Further research is required to determine if State Term Contract
would add value.
State Purchasing Analysis Process
Pipeline – Services: New Activity
Contract Name
Est AnnualSpend
Est State
Spend
Est State Spend
Method
Notes
Aggregating spend; increased transparency; economies of scale. RESPECT has
contract for Janitorial Services. Potential contractual limitations of outsourced
services (Dept. of Transportation rest areas is an example). Large variation in
agency needs; fragmented market which may require regional awards. By way of
example, the decision for sourcing is made at the county level for Dept. of
Health county health depts. Decisions are also made on a park by park basis for
Dept. of Environmental Protection
Janitorial Services / Property
Management
$58,700,000.00
30%
$17,600,000.00
ITN
Vehicle / Fleet Maintenance
Services
$15,000,000.00
30%
$5,000,000.00
ITN
NY has an estimated $5 million state and $104K non-state spend in fleet vehicle
maintenance. Each state agency manages maintenance on their own
Staffing Management
$330,000,000.00
30%
$100,000,000.00
ITN
Possible roll-up of temp labor and additional labor related services. (Currently
Temp Labor and IT contracts exist)
ITN
Economies of scale, aggregating spend, transparency in spend, agency demand
Previous state term contract did not allow enough flexibility to adjust rates as
demand for nurses increased. Some medical services are exempt from
competitive bid requirements in Ch. 287, F.S.
Nursing / Medical Services
(Staffing)
Call Centers
Landscaping services /
mowing services
$33,000,000.00
$62,000,000.00
$12,300,000.00
30%
30%
30%
$10,000,000.00
$18,700,000.00
$3,700,000.00
ITN
ITN
Visibility and transparency into actual costs; economies of scale (keeps the state
from paying for and maintaining duplicate call centers); aggregating spend.
Agency reluctance to combine call centers; existing contractual limitations
Aggregating spend; increased transparency; economies of scale. Large variation
in agency needs; fragmented market which may require regional awards. By way
of example, the decision for sourcing is made at the county level for Dept. of
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Health county health depts. Decisions are also made on a park by park
Dept. of Environmental Protection
State Purchasing Analysis Process
Pipeline – Information Technology: New Activity
Contract
Name
eLearning
Est
AnnualSpend
$12,000,000.00
Est State
Spend
Est State Spend Method Notes
33%
ITN
4,000,000.00
Oracle
Software &
Services
$6,000,000.00
33%
ITN
This would be used across many agencies. A GSA contract exists for
this category.
$2,000,000.00
Document
Management $11,424,000.00
Solutions
Voting System
$50,000,000.00
Devices
33%
ITN
$3,808,000.00
0%
ACS
0.00
Cloud
Computing
Services
There may be another contract we could leverage. Because of travel
restrictions and limited budgets, entities have a greater need for
eLearning. Need flexibility to deal with changing industry
$4,200,000.00
33%
ITN
$1,400,000.00
This uses emerging technology. The state is looking to reduce
occupancy. Indexing should make it easier to find information. There
may be other agencies that have develop these systems already.
NY spends an estimated $71 million annually on voting machines.
They indicate that NY state specs are very unique in what the
contractors have to provide, so they don't know if their specs based
on NYS law would meet FL's needs. Bulk of spend my have already
occurred
Do any State Agencies purchase voting machines?
This utilizes emerging technology. There are already sunk costs
associated and could be high cots associated with transition. Security
may be an issue. Additional research Required.
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State Purchasing Analysis Process
• Reach out to other agencies
– Regarding spend and to better understand needs
– Possible alternate contract sources
• Use consortia as alternate contract sources
• Address maverick spend
– Increased marketing of existing state term contracts
• Survey other eligible users, e.g., Florida local governments
• Survey identified vendors
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Hot Topics
Open Discussion
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