Download - MyFloridaMarketPlace Roundtable September 3, 2003

MyFloridaMarketPlace Roundtable

September 3, 2003

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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda

Welcome / Overview of Today’s Session

FLAIR integration update

DMS Sourcing Lessons Learned

Strategic Sourcing

Resolution of Pending Issues / New Issues

Next Meeting Location / Time

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Strategic Sourcing




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Strategic Sourcing




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Event Owner

Aircraft Lease or finance purchase plan (ITN # 95-518-010-M) DMS

Adobe Software Products (ITB # 98-252-030-N Rebid) DMS

Real Estate Strategic Planning and Management (ITN # 1-973-700-M) DMS

Armored Car and Depository Banking Services DOT

Maintenance, Repair, & Operating (MRO) Supplies (ITB # 2-450-000-B) DMS

Boiler and Machinery Insurance (ITB # 94-477-450-D) DMS

A/C and Heating Equipment DOT

Office Consumables Lot A Phase II - eAuction (ITB # 80-618-001-E) DMS

Office Consumables Lot B Phase II - eAuction (ITB # 80-618-001-E) DMS

Installation of Fence along the South Florida Rail Corridor-D4 DOT

The Pilot Agencies conducted 10 sourcing events since the MyFloridaMarketPlace “go live” date on July 1, 2003.

Source: MyFloridaMarketPlace Sourcing Tool

MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS Sourcing Lessons Learned

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DMS’ issues with sourcing can be grouped into two main issues:

• Access to bids: Vendor’s ability to view bids either because they were not registered at all, didn’t select ability to receive electronic solicitations, or didn’t select commodity codes

• Responding to bids: Knowing whether or not the vendor had responded to a bid before closing or if they were able to submit the proper attachments

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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bidsDMS Sourcing Lessons Learned – Access to bids

Issue: • Public needs access to bids, and only registered vendors who

have selected sourcing and commodity codes within class of bid can access bid in MyFloridaMarketPlace

Short-term resolution: • Agency must advertise bids on VBS

– Print and scan bid as it appears in MyFloridaMarketPlace on VBS

– Don’t post PUR form on VBS if you don’t want paper bids

Long(er)-term resolution: • Considering design for public access to MyFloridaMarketPlace

once VBS goes away (must be registered for sourcing today)

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Issue: • Vendors who registered before sourcing was added (6/15) were

unable to select ability to receive solicitations and therefore can’t view bids

Resolution: • An e-mail was sent to vendors to ask them to select sourcing

and their commodity codes on June 26, 2003 at 4:30 p.m.

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Issue: • Vendors who registered before (7/1) who did not click refresh

after each class of commodity codes was selected is not registered for any or all commodity codes and therefore unable to view bids pertaining to that commodity code

Resolution: • Modification was made on 7/15 which no longer requires vendor

to click on refresh after each class of commodity codes• An e-mail will be sent to vendors (9/2) asking them to re-select

their commodity codes– E-mail notification to vendors will be sent staggered in

groups in order to ensure adequate Help Desk support• Vendor can view which commodity codes they have selected at

the end of registration on a summary page which can be accessed at any time

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Issue: • Can a vendors who registers after a solicitation is launched view the bid?

Resolution: • Vendor will be able to access solicitation once system is refreshed (may

take up to 24 hours but no longer than)– Vendor needs to select at least one commodity code with in the class

of codes for that solicitation– Vendor must also agree to receive solicitations

• Will receive e-mail notification if any updates are made to bid– Vendors will receive an update e-mail for each update you make

unless you disable the e-mail notification– If you are planning to make several updates, try to bundle updates to

minimize the number of e-mail notifications sent by the system (vendors might complain)

• Agency can add vendor to bid regardless whether they selected commodity code, but must have selected ability to receive solicitations

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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Responding to bidsDMS Sourcing Lessons Learned – Responding to bids

Issue: • After a bid was closed, it only showed one vendor had replied

although six responses were received.

Short-term resolution: • Create permission for people who need access to bids• Another tab called “items” can allow anyone to view

Long(er)-term resolution:• Accenture and their engineers are working to fix this issue so

that all vendors who have submitted bids will be displayed on the Suppliers tab

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Short tem resolution for viewing all bids enteredShort tem resolution for viewing all bids enteredItems Tab Items Tab

Items -> Responses

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Short tem resolution for viewing all bids enteredShort tem resolution for viewing all bids enteredNew Proposals Tab New Proposals Tab

New Proposal -> View Responses

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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Responding to bidsDMS Sourcing Lessons Learned – Responding to bids

Issue: • Sometimes a vendor can’t view when they’ve responded to a

bid right away because it could be in a “cache” (temporary holding area)

Short-term resolution: • Automatic cleaning of “cache” has been increased to every 10

minutes• Let Accenture know via the help desk when a bid is closing so

that they can provide adequate support (have someone standby when the bid is closing so that they can manually clear out the “cache” files on the server)

Long(er)-term resolution:• Accenture is continuing to monitor events for cache issues while

performing extensive testing and analysis to resolve issue

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Issue: • The bid was not configured to allow attachments in areas where

they had been requested. When the vendor tried to attach the bid, there was no spot for them to stick the attachment.

Resolution: • This issue will be addressed in the Sourcing Event tool kit. The

Tool Kit will be distributed to the Agency liaisons when completed.

• The limitation on the uploaded file is 20 MB per attachment

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Issue: • What happens when a bid is not awarded to anyone at all?

Resolution: • System will not let you close a bid (it is pending selection until it

is awarded). Agency must contact Accenture via the help desk to close a bid.

• Alternatively, include in your comments why the bid was not awarded.

• Accenture will work with DMS to close a market with Buyer permission only.

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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned - SummaryDMS Sourcing Lessons Learned - Summary

• Develop a list of targeted vendors for each bid and send out an e-mail prior to the bid opening to remind them to: – To confirm that they have registered and are able to logon– To confirm that they have selected the ability to receive solicitations and

the proper commodity codes.

• Standard bid templates exist, standard language to be developed– The Sourcing Event Tool Kit will provide recommended timeline to

include mock training events for vendors. In addition the Tool Kit will include a reminder to configure bid to allow attachments in all areas where they had been requested and to notifying Accenture when bid is to open and close

– Agencies will have ability to edit everything, including General Conditions, and add technical specs

• Advise vendors to get their bids in early – don’t wait until the last minute– They have the ability to change without the Agency seeing what they’ve

changed until the bid is closed

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Several resources are available to help vendors and buyers successfully use the MyFloridaMarketPlace Sourcing Tool.

Service Description Location

Vendor Training On-Demand web-based, interactive training application for Vendors to learn how to respond to an event using the MyFloridaMarketPlace sourcing tool

https://marketplace.myflorida.com/vendor/vendor_training.htm

Agency Training Session

1.5 days of Buyer training before they come onboard

Please contact your Buyer Adoption liaison for the schedule

Communication Tool Kit

Tools for Agencies to communicate with their employees on various aspects of the initiative

http://marketplace.myflorida.com/toolkit/toolkit.htm

Sourcing Events Services

Help with specific questions regarding the tool functionalities and how to set-up and load events in the MyFloridaMarketPlace tool

MyFloridaMarketPlace Help Desk @ (866) 352-3776Sourcing Event tool kit will be available on MyFloridaMarketPlace to help Purchasing Analyst conduct the event correctly.


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Strategic Sourcing




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MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Current StatusStrategic Sourcing – Current Status

The first three categories involved in Strategic Sourcing are in various stages of the sourcing process. New State Term Contracts (STCs) are expected to be effective in the October / December 2003 timeframe.

Profile Internally & Externally

Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Implement AgreementsAssess

Opportunities


Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Kick-Off &

Profile Internally

& Externally

Develop Strategy

Develop Selection Factors &

Screen Vendors

Conduct Competitive

Event

Prepare Value

Proposition & Award

Implement Agreements

Kick-Off & Assess

Opportunities

- Profile Internally & Externally

Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Implement AgreementsAssess

Opportunities


Develop Strategy

Screen Suppliers &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Kick-Off &

Profile Internally

& Externally

Develop Strategy

Develop Selection Factors &

Screen Vendors

Conduct Competitive

Event

Prepare Value

Proposition & Award

Implement Agreements

Kick-Off & Assess

Opportunities

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Office Cons.

• DMS Lead – Tom Butler• Sourcing Event – Auction • Target STC Date – Oct. 2003

MROSupplies

• DMS Lead – David Comer• Sourcing Event – ITB (RFQ) • Target STC Date – Oct. 2003

Printing• DMS Lead – Charles Day• Sourcing Event – RFP • Target STC Date – Dec. 2003

Office Consumables

Printing Services

MRO Supplies

Definition: Strategic Sourcing is a proactive process to leverage demand and select vendors that offer the best value, to achieve savings.

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Major Types of Reverse Auctions

Type DescriptionEffect on

Time

Visible Price

Price is know by the all the participants but the identity of the other bidders is unknown

Time constrained (minutes-hours)

Ranked Bidder

Price is not shown to the bidders. Instead they are only aware of where they are in order relation to the “winner”

Time constrained (minutes-hours)

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction OverviewStrategic Sourcing – Reverse Auction Overview

There are several different varieties of auctions, with a key differentiator being the way in which information is revealed around price between the bidders.

Reverse Auction

Bid

Price

Time

In reverse auctions, prices decrease over time.

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Phase 1Pre-

Qualification*

• Posted Phase 1 ITB instructions on VBS• Used Intent to Participate form• Contained various critical and information only questions, potential market

basket items, geographical capability• Q&A for 95 questions (VBS posting of answers)

Phase 2Reverse Auction

(2 Stages)

• 17 vendors pre-qualified from Phase 1• Conducted within MyFloridaMarketPlace Sourcing Tool**• Provided Phase 2 ITB instructions, SLAs, general conditions, forms• Offline bidder pricing tool provided to bidders• Preview period of 2 weeks to allow bidders to download documents and price

items• 35 questions were submitted via the Q&A board• Official answers posted on Sourcing tool as addendum• Optional bidder training sessions and mock reverse auction events provided

to help vendors learn how to use Sourcing tool• After close of Reverse Auction event, second stage within Sourcing required

bidders to upload final detailed item pricing to support final bid price entered in the live auction

* MyFloridaMarketPlace Tool was not yet live

** See Appendix for summary of Reverse Auction parameters used for Office Consumables Paper and Non-Printed Envelopes Lot (Lot B)

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Office Consumables EventStrategic Sourcing – Office Consumables Event

DMS recently leveraged the MyFloridaMarketPlace Sourcing tool and a two-phase process to establish a new State Term Contract for Office Consumables.

23Note: Bidders names excluded until award finalized.Source: MyFloridaMarketPlace Sourcing Tool.

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ResultsStrategic Sourcing – Reverse Auction Results

Eleven vendors entered a combined 232 bids over the 132 minutes duration of the Office Supplies & Toner Cartridges event.

24Note: Bidders names excluded until award finalizedSource: MyFloridaMarketPlace Sourcing Tool


For the Paper and Non-Printed Envelopes event, 106 bids were entered by 9 vendors over 74 minutes time period.

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Summary

Lot A – Office Supplies & Toner Cartridges

Lot B – Paper & Non-Printed

Envelopes

Spend Base Line (3-Year Value) $51.5MM $8.7MM

# of Vendors Invited / Participated 15 / 11 (73%) 16 / 9 (56%)

Initial vs. Extended Duration 0:45hr / 2:12hr 0:45hr / 1:14hr

# of Bids 232 106

Spreadsheet Training 34 People

Practice / Mock Auction Training 28 People

Potential 3-Year Savings $ $16.8MM $1.5MM

Potential 3-Year Savings % 33% 17%

Note: MM = Million

The Office Consumables reverse auction generated identified savings of $18.3 million.


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Looking at ten commonly ordered Office Consumables items provides specific examples of the savings generated for Agencies.

Product Manufacturer

Product ID Product Description UOMHistorical Wt. Avg.

Price

New Price

% Savings

Generic Copy Paper N/A White Copy Paper, 8 1/2" x 11", 20 Lb., 84 Brightness, Case Of 10 Reams

Case $21.57 $19.50 10%

HEWLETT PACKARD HEW51645A INKCART,DJ750C/1600C,BK Each $27.30 $23.03 16%

UNIVERSAL PRODUCTS UNV20630 PAD,LGL RULD,PERF,LTR,WE Dozen $6.37 $3.90 39%

3M MMM8103412 TAPE,MAGIC 3/4X1296 Roll $1.59 $0.58 64%

SMEAD MANUFACTURING CO.

SMD28040 FOLDER,ENDTAB,LGL,BE50BX Box $16.42 $8.29 50%

AT-A-GLANCE AAGSK2400 CALENDAR,DSK PD/WALL,BK Each $2.41 $1.57 35%

PILOT CORP. OF AMERICA

PIL31020 PEN,RBALL,RT,G2,GEL,FN,BK Each $1.10 $0.61 45%

TEXAS INSTRUMENTS TEXTI83PLUS CALCULATOR,GRAPHING Each $99.42 $80.36 19%

3M MMM654YW NOTE,POST-IT,3X3,1C/PD,YW Dozen $8.09 $2.36 71%

UNIVERSAL PRODUCTS UNV96920 BOOK,STENO,GREGG,80SH,WE Each $0.99 $0.49 51%

SANFORD INK COMPANY

SAN22420 PENCIL,EAGLE #2 Dozen $0.99 $0.34 66%

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TimePeriod

How Agencies on MyFloridaMarketPlace Order

How Agencies on SPURS Order

Before new STC is effective*

Non-Catalog Purchase from current STCs

As currently done (Purchase Order/P-Card) on current STC

After new STC is effective but before contract is enabled**

Non-Catalog Purchase from new STCs

As currently done (Purchase Order/P-Card) on new STC

After new STC is enabled Punch-out or MyFloridaMarketPlace Catalog

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Ordering InstructionsStrategic Sourcing – Ordering Instructions

The new Office Consumables State Term Contract is expected to be effective within 30 days and will have a 3-year term.

* New STC is estimated to be effective 10/1/2003; current STC will be terminated** New STC is estimated to be enabled by 11/1/2003

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Strategic Sourcing




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Strategic Sourcing




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Next Meeting: Time / LocationNext Meeting: Time / Location

September 17th

9:00 a.m. – 11:00 a.m.

Carr Building, Room 170

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AppendixAppendix

Appendix

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Auction Parameters DefinitionOffice Consumables Lot B

Actual Parameters

Reverse Auction Type Visible Price or Ranked Bidder Ranked Bidder

Open Date and Time Date and time the auction will open and be available for bid 8/13/2003 – 10:00 AM (ET)

Close Date and Time Date and time the auction will CLOSE, and NO LONGER be available for bid

8/13/2003 – 10:45 AM (ET)

Opening Price The price at which this offering is listed at when the auction opens

Initial Bid Entered by Vendors prior to Opening of Event

Bid Decrement The minimum difference between the last accepted bid, and the next bid which will be accepted by the system from any bidder

$50,000

Bid Improvement Rule Specifies whether vendor’s bid must be lower than the overall best bid to be accepted or just their last submitted bid (by the minimum bid decrement or greater)

Must only improve on own last bid

Extension Allowed Indicates if the auction can be extended if bids are coming in Yes

Extension Interval The duration of the auction extension (if auction extensions are enabled) in minutes

5 minutes

Extension Limit The maximum total number of extensions which can be applied to an auction for any reason

No limit

Accept Proxy Bids Indicates if Host will allow users to set proxy bids No

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ParametersStrategic Sourcing – Reverse Auction Parameters

Reverse Auction set-up involves many decisions, including determining auction type, event duration, extensions and bid improvement parameters.

Download - MyFloridaMarketPlace Roundtable September 3, 2003

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