agency policy, process & procedure development guide october, 2003 myfloridamarketplace

Agency Policy, Process & Procedure Development Guide

October, 2003

MyFloridaMarketPlace

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Purpose of Guide:

The purpose of this document is to provide guidance regarding the development of agency-specific processes, policies, and procedures pertaining to use of MyFloridaMarketPlace.

Development Guide Overview

Scope of Guide:

This guide defines overall purchasing processes and key steps within them. It then identifies needed policies, processes, and procedures in relation to these process steps.

This guide only references purchasing processes related to MyFloridaMarketPlace.

This guide does not cover areas that are defined as part of an agency’s workflow through work with your agency liaison.

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Requisitioning / Generating P.O. Invoicing

• Identify Need

• Select Vendor (part of requisition creation)

• Create Requisition

• Approve Requisition

• Requisition Becomes Purchase Order (PO) & sent to vendor

Purchasing Process

Key Steps:

(Note: Applies to Commodities Only)

• Receive E-Mail Prompt

• Physically Receive Items

• Receive Items in MyFloridaMarket Place

• Status Changed to Received

Key Steps:

• Vendor Submits Invoice - Electronic or Paper (if paper, create electronic invoice by entering data into e-form and tying to PO or contract)

• Automatic 3-Way Match (for commodities)/2-Way Match (for services)

• Exceptions Sent to Exception Handler for Resolution

• Invoice Manager Approval

• State Comptroller Approval

• Payment request sent to FLAIR for warrant

Key Steps:

Receiving

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SourcingSystem Admin / User Set-up & Maintenance

• Identify Need & Gather Technical Specs

• Create Solicitation

• Identify & Prepare Target Vendors

• Launch Solicitation

• Receive Vendor Bids

• Evaluate Vendor Bids

• Negotiate With Top Few Vendors (ITNs only)

• Select Vendor

• Award Contract

Key Steps:

• User Role Changes

• Password Maintenance

• Transition Maintenance

• User set-up

Key Functions:

Other Purchasing / MyFloridaMarketPlace Processes / Functions

Contracts

• Create Master Agreement Request (MAR)

• Approve Master Agreement Request

• Update Master Agreement access as Needed

Key Steps:

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• Determine commodity or service need

• Define technical specs (if needed)

• Review Catalogs, State Term Contacts (STCs) & SNAPS Agreements

• Look for vendors registered in MyFloridaMarket Place

• Collect quotes

• Choose vendor

• Create/add title

• Add items &/or service description (for non-catalog items)

•Tag commodity code•Input quantity & price

• Add special conditions (if needed)

• Complete accounting information

• Complete shipping information

• Add other needed comments (internal and/or to vendor)

• Attached needed documentation

• Submit requisition

• Status changed from Composing to Submitted

• Approvals based on Agency workflow

• Approve or deny requisition

• Add comments if needed

• Submit approval

• If encumbered, FLAIR integration approval

• If unencumbered, PO goes directly to vendor

• PO automatically generated upon requisition approval

• PO automatically sent to registered vendor via fax, e-mail, or Ariba Supplier Network (ASN)

• Status changed from Submitted to Ordered

Requisitioning / Generating P.O. Receiving Invoicing

Requisitioning/Generating P.O. -- Key Steps:

Identify Need Select VendorCreate

RequisitionApprove

RequisitionTurn into PO and

Send to Vendor

(Note: Items in italics are system only functions)

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Overall Procurement

• How will new policies, processes, and procedures be communicated to agency staff members?

• If conducting a phased roll-out, how and by whom will requisitions be handled in MyFloridaMarketPlace before and while additional users are in training?

• For items under $2,500 -- are multiple quotes needed? If so, how many?

• How will P-Cards be used?

Use P-card memo from State Purchasing as a guide for defining agency guidelines on P-Card usage within and outside of MyFloridaMarketPlace

P-Card transactions entered in the system take on the same approval flow as requisitions in MyFloridaMarketPlace

Determine whether or not to input P-Card transactions into MyFloridaMarketPlace

Policy, Process & Procedures to Consider

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Requisitioning/Generating P.O.

Select Vendor

• Must use registered vendor; if need to use reluctant vendor, what is the internal process for getting appropriate approvals and submitting to the Help Desk?

• For items under $2,500 -- are multiple quotes needed? If so, how many? (Purchases over $2,500 are required by rule to get at least 2 quotes)

• How to use e-quote capability versus current method; if don’t use e-quote, how to get quote information into MyFloridaMarketPlace

Policies, Processes & Procedures to Consider

Create Requisition

• Create/add title -- define naming convention

• Item/Service Description -- define description conventions

• Item/Service Description -- determine if Special Conditions should be included here or in line item comments

• Decide who is responsible for selecting/adding the comments that go to the vendor

• Define requirements for supporting documentation to be attached

• Define method to get paper documentation into the system


Approve Requisition

• Denials/Approvals -- what can be changed by Approvers with a message to the requester versus sending denied requisition back to requester for revision? (system will automatically re-generate approval chain when certain fields/items are changed)

• Who will confirm accounting distribution

Step

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Requisitioning/Generating P.O. (cont’d)

Purchasing Agency-Specific or Unique Items

• How to purchase agency-specific items that may not be straightforward for various reasons (e.g., fuel - price variations)

• Clearly define the steps that users must follow to purchase different types of items -- standard and unique

Additional Policies, Processes & Procedures to Consider

Handling Withdrawn &

Canceled Requisitions

• How to withdraw requisitions (from Submitted status), including required notifications (The system does not send any notifications to approvers upon withdrawal

• What process, approvals, and notifications are required to cancel a PO/DO that has already been sent to a vendor (Ordered status)

• MyFloridaMarketPlace does not systematically route cancelled orders to approvers prior to cancellation (Internally defined process)


Topic Area

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• MyFloridaMarket Place sends e-mail prompt to notify user that they will need to receive goods in the system (for commodities only)

• Requested items are physically delivered to and received by requester

• Rejected items are sent back to vendor

• Find the approved PO associated with the received items

• Receive or reject the items in the system

• Status changed from Ordered to Received (status is Receiving for receipt of partial order)

Receiving (Commodities) -- Key Steps:

Receive E-Mail Prompt

Physically Receive Items

Complete Receiving Report in

MFMP


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Receiving

• Will only receive notification for commodities; services are not received in MyFloridaMarketPlace (invoice approved by requestor/contract manager)

• Approve invoices for services in MyFloridaMarketPlace

• Will Desktop Receiving or Central Receiving be utilized? If Central Receiving, define process for who receives at each identified address


• How will requesters be notified of received goods, when utilizing Central Receiving -- receipt approval required, or receive receipt notification by Central Receiving? ( based on workflow defined at the Agency)

• How will receiving be handled in MyFloridaMarketPlace when using a Blanket PO? (partial receipt of goods)

• Who should be notified and how should they be notified about rejected items? (MFMP does not systematically support notification of rejected items to others)

• Guidelines for adding comments in the system for rejected items so Finance & Accounting knows the issue(s) and does not have to call for more information

Step

Receive E-Mail Prompt

Receive Items in MyFlorida MarketPlace


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• Vendor submits electronic invoice via Ariba Supplier Network (ASN), or

• Vendor submits paper invoice

Create electronic invoice - enter data into e-form

Tie to appropriate PO/Contract

Submit to MyFloridaMarket Place

• MyFloridaMarket Place performs automatic match

• Commodities -- match between PO, invoice ,receiving report & contract

• Services -- match between PO, invoice & contract

• Identify exceptions

• Send exceptions to exception handler queue

• If no exceptions, send to invoice manager

• Exception handler researches & resolves exception

• Add comments to describe exception/ resolution

• Approve payment request – routes to Invoice Manager

• Invoice manager reviews invoice

• Invoice manager approves (or denies) payment request

• DFS reviews approved payment request

• Warrant (check) is distributed to vendor through current process or EFT payment sent to vendor

Invoicing -- Key Steps:

Vendor Submits Invoice

Invoice Reconciliation

ExceptionsHandled

Invoice Manager Approval

Invoice Payment


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Invoicing

• Who is responsible for inputting data from paper invoices into MyFloridaMarketPlace electronic invoice form?

• Should paper invoices be retained in file or scanned into MFMP?


• What justifications or comments should be provided in the resolution of exceptions?

• What types of exceptions/variances will necessitate the invoice to be rejected ( returned to vendor)?

• When is communication to the vendor necessary; i.e. upon partial payment, upon invoice rejection, etc.

Step


Vendor Submits Invoice

Exception’s Handled

Exception’s Handled

Invoice ManagerInvoice Manager

• Will the Invoice Manager only approve payment request or will they make updates to payment requests as well?

• Will this be a separate responsibility or will it be the same personnel as the Exception Handler?

• Will the Invoice Manager only approve payment request or will they make updates to payment requests as well?

• Will this be a separate responsibility or will it be the same personnel as the Exception Handler?

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• Determine commodity/ service need

• Define technical specs

• Create timeline

• Conduct proactive vendor on-boarding

• Encourage vendors to review the system and vendor training for responding to bids

Sourcing -- Key Steps:

Sourcing Contracts

• Document technical specs

• Create evaluation criteria (for RFP or ITN)

• Create bid documents

• Gather needed approvals

• Input formal solicitation in MFMP

• Set up parameters - open/close timeline

• Input bid documents

• Set up rules

• Invite suppliers

• Launch solicitation to vendors / e-mail notification sent to vendors

Design Solicitation Build Solicitation

Run Solicitation

Close Solicitation


• Electronically receive bids in MyFlorida MarketPlace

• Evaluate bids in the system

• Select winning vendor in the system

• Notify vendor of contract award

System Admin / User Set-up & Maintenance

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Sourcing

Create Solicitation

• Determine the accepted methods of bid submission -- paper, electronic, or both. If paper bids will be accepted, how will the process work?


Receive & Evaluate

Vendor Bids

• Guidelines for determining whether evaluation can be done in MyFloridaMarketPlace or should be done outside the system

Step

Sourcing Contracts


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• Master Agreement Manager reviews MAR

• Approve or deny MAR

• Submit approval

• MAR becomes Master Agreement upon approval

Contracts -- Key Steps:

Sourcing Contracts

• Input vendor & contract content information

• Set up pricing (how to buy off the contract)

• Select people to have edit capability

• Set up restricted access ( if applicable)

• Set up notification limits for contract expiration

• Input total contract amount (if desired)

• Submit to Master Agreement Manager for approval

Create Master Agreement

Request (MAR)


Approve Master Agreement

Update Master Agreement &

Access


• Contract Specialist may make updates to Master Agreement (term of contract, pricing, etc.)

• Submit for approval by Master Agreement Manager

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Contracts

Master Agreement and Access

• Define policy for how master agreements should be updated and/or revised

• Who will have the ability to purchase off the contract?


Create Master Agreement

Request

• At what timeframe should expiration notifications be set?

• Who has the ability to change or edit a Master Agreement? (Good practice to always allow at least one other person this capability)

• Who has the ability to restore contracts (add additional money or spend to a contract)?

• Will prior payments be rendered in MFMP through the contracts module (for previous contracts)?

• Who will establish the contract encumbrance in FLAIR and update the MAR with the encumbrance number?

Step

Sourcing Contracts


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Contracts (cont’d)

Canceling a Master

Agreement

• What off-line processes are required for closing a Master Agreement prematurely?

• MyFloridaMarketPlace will automatically close contract when term or contract commitment is met


Using Master Agreements

• How will Master Agreements be used -- create POs off them or tag invoices to them? What is the process for each?

Topic Area

Sourcing Contracts


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System Admin/User Set-up & Maintenance

User Role Changes/ Additions

• What approvals will be required for changes to users’ roles in MyFloridaMarketPlace? (Internal process – submit form)

• Who will identify the appropriate roles for a user (including ship to addresses, org code, supervisor, etc.)?


• What is the process for initial password set-up?

• What procedures will be followed for lost or compromised passwords?

• How will passwords be distributed to users?

Topic Area

Password Maintenance

Sourcing Contracts


• What is the procedure for identifying and notifying the system administrator of people who transition out of the agency and must have their user names and passwords deleted prior to departing the agency?

Transition Maintenance

Address changes/ Additions

Address changes/ Additions

• What is the process to add new addresses to MFMP?

• What is the process to change addresses?

• What is the process to add new addresses to MFMP?

• What is the process to change addresses?

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Additional Resources

For Additional Assistance:

Contact Vincent Ackerman at 850-487-9847; [email protected]

Refer to the Communication Tool Kit which contains example documents from other agencies

agency policy, process & procedure development guide october, 2003 myfloridamarketplace

Documents

vendor po

requisition requisition

vendor bids

registered vendor

vendor note

requisition approval

process key steps

requisition status