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MyFloridaMarketPlace Roundtable September 3, 2003

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MyFloridaMarketPlace Roundtable September 3, 2003. MyFloridaMarketPlace Roundtable Session 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. - PowerPoint PPT Presentation

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  • MyFloridaMarketPlace Roundtable

    September 3, 2003

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable Session AgendaWelcome / Overview of Todays SessionFLAIR integration updateDMS Sourcing Lessons LearnedStrategic SourcingResolution of Pending Issues / New IssuesNext Meeting Location / Time

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Welcome / Overview of Todays SessionFLAIR integration updateDMS Sourcing Lessons LearnedStrategic SourcingResolution of Pending Issues / New IssuesNext Meeting Location / TimeMyFloridaMarketPlace Roundtable Session Agenda

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Welcome / Overview of Todays SessionFLAIR integration updateDMS Sourcing Lessons LearnedStrategic SourcingResolution of Pending Issues / New IssuesNext Meeting Location / TimeMyFloridaMarketPlace Roundtable Session Agenda

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • The Pilot Agencies conducted 10 sourcing events since the MyFloridaMarketPlace go live date on July 1, 2003.Source: MyFloridaMarketPlace Sourcing ToolMyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS issues with sourcing can be grouped into two main issues:

    Access to bids: Vendors ability to view bids either because they were not registered at all, didnt select ability to receive electronic solicitations, or didnt 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

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Access to bidsIssue: 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 VBSPrint and scan bid as it appears in MyFloridaMarketPlace on VBSDont post PUR form on VBS if you dont want paper bids

    Long(er)-term resolution: Considering design for public access to MyFloridaMarketPlace once VBS goes away (must be registered for sourcing today)

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Access to bidsIssue: Vendors who registered before sourcing was added (6/15) were unable to select ability to receive solicitations and therefore cant 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.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Access to bidsIssue: 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 codesAn e-mail will be sent to vendors (9/2) asking them to re-select their commodity codesE-mail notification to vendors will be sent staggered in groups in order to ensure adequate Help Desk supportVendor can view which commodity codes they have selected at the end of registration on a summary page which can be accessed at any time

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Access to bidsIssue: 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 solicitationVendor must also agree to receive solicitationsWill receive e-mail notification if any updates are made to bidVendors will receive an update e-mail for each update you make unless you disable the e-mail notificationIf 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

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Responding to bidsIssue: 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 bidsAnother 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

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Short tem resolution for viewing all bids enteredItems Tab Items -> Responses

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Short tem resolution for viewing all bids enteredNew Proposals Tab New Proposal -> View Responses

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Responding to bidsIssue: Sometimes a vendor cant view when theyve 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 minutesLet 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

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedIssue: 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

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedIssue: 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.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned - SummaryDevelop 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 logonTo confirm that they have selected the ability to receive solicitations and the proper commodity codes.

    Standard bid templates exist, standard language to be developedThe 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 dont wait until the last minuteThey have the ability to change without the Agency seeing what theyve changed until the bid is closed

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Several resources are available to help vendors and buyers successfully use the MyFloridaMarketPlace Sourcing Tool.MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Welcome / Overview of Todays SessionFLAIR integration updateDMS Sourcing Lessons LearnedStrategic SourcingResolution of Pending Issues / New IssuesNext Meeting Location / TimeMyFloridaMarketPlace Roundtable Session Agenda

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • 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.MyFloridaMarketPlaceStrategic Sourcing Current StatusOffice Cons.DMS Lead Tom ButlerSourcing Event Auction Target STC Date Oct. 2003MROSuppliesDMS Lead David ComerSourcing Event ITB (RFQ) Target STC Date Oct. 2003PrintingDMS Lead Charles DaySourcing Event RFP Target STC Date Dec. 2003Office ConsumablesPrinting ServicesMRO SuppliesDefinition: Strategic Sourcing is a proactive process to leverage demand and select vendors that offer the best value, to achieve savings.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Major Types of Reverse AuctionsMyFloridaMarketPlaceStrategic Sourcing Reverse Auction OverviewThere are several different varieties of auctions, with a key differentiator being the way in which information is revealed around price between the bidders. Reverse AuctionBidPriceTimeIn reverse auctions, prices decrease over time.

    TypeDescriptionEffect on TimeVisible PricePrice is know by the all the participants but the identity of the other bidders is unknownTime constrained (minutes-hours)Ranked BidderPrice is not shown to the bidders. Instead they are only aware of where they are in order relation to the winnerTime constrained (minutes-hours)

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Phase 1Pre-Qualification*Posted Phase 1 ITB instructions on VBSUsed Intent to Participate formContained various critical and information only questions, potential market basket items, geographical capabilityQ&A for 95 questions (VBS posting of answers) Phase 2Reverse Auction(2 Stages)17 vendors pre-qualified from Phase 1Conducted within MyFloridaMarketPlace Sourcing Tool**Provided Phase 2 ITB instructions, SLAs, general conditions, formsOffline bidder pricing tool provided to biddersPreview period of 2 weeks to allow bidders to download documents and price items35 questions were submitted via the Q&A boardOfficial answers posted on Sourcing tool as addendumOptional bidder training sessions and mock reverse auction events provided to help vendors learn how to use Sourcing toolAfter 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)MyFloridaMarketPlaceStrategic Sourcing Office Consumables EventDMS recently leveraged the MyFloridaMarketPlace Sourcing tool and a two-phase process to establish a new State Term Contract for Office Consumables.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Note: Bidders names excluded until award finalized.Source: MyFloridaMarketPlace Sourcing Tool.MyFloridaMarketPlaceStrategic Sourcing Reverse Auction ResultsEleven vendors entered a combined 232 bids over the 132 minutes duration of the Office Supplies & Toner Cartridges event.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Note: Bidders names excluded until award finalizedSource: MyFloridaMarketPlace Sourcing ToolMyFloridaMarketPlaceStrategic Sourcing Reverse Auction ResultsFor the Paper and Non-Printed Envelopes event, 106 bids were entered by 9 vendors over 74 minutes time period.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Note: MM = MillionThe Office Consumables reverse auction generated identified savings of $18.3 million.MyFloridaMarketPlaceStrategic Sourcing Reverse Auction Results

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlaceStrategic Sourcing Reverse Auction ResultsLooking at ten commonly ordered Office Consumables items provides specific examples of the savings generated for Agencies.

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • MyFloridaMarketPlaceStrategic Sourcing Ordering InstructionsThe 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

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Welcome / Overview of Todays SessionFLAIR integration updateDMS Sourcing Lessons LearnedStrategic SourcingResolution of Pending Issues / New IssuesNext Meeting Location / TimeMyFloridaMarketPlace Roundtable Session Agenda

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Welcome / Overview of Todays SessionFLAIR integration updateDMS Sourcing Lessons LearnedStrategic SourcingResolution of Pending Issues / New IssuesNext Meeting Location / TimeMyFloridaMarketPlace Roundtable Session Agenda

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • Next Meeting: Time / LocationSeptember 17th

    9:00 a.m. 11:00 a.m.

    Carr Building, Room 170

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

  • AppendixAppendix

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

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

    Auction ParametersDefinitionOffice Consumables Lot B Actual ParametersReverse Auction TypeVisible Price or Ranked BidderRanked BidderOpen Date and TimeDate and time the auction will open and be available for bid8/13/2003 10:00 AM (ET)Close Date and TimeDate and time the auction will CLOSE, and NO LONGER be available for bid8/13/2003 10:45 AM (ET)Opening PriceThe price at which this offering is listed at when the auction opensInitial Bid Entered by Vendors prior to Opening of EventBid DecrementThe minimum difference between the last accepted bid, and the next bid which will be accepted by the system from any bidder$50,000Bid Improvement RuleSpecifies whether vendors 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 bidExtension AllowedIndicates if the auction can be extended if bids are coming inYesExtension IntervalThe duration of the auction extension (if auction extensions are enabled) in minutes5 minutesExtension LimitThe maximum total number of extensions which can be applied to an auction for any reason No limitAccept Proxy BidsIndicates if Host will allow users to set proxy bidsNo

    This information is proprietary and confidential to Accenture LLP. 2002. All rights reserved.

    121002_All Flair Spend Seasonality.xlsOverall:Gives a little bit more information on the types of auctions. Youll hear a lot of these words and some others which are synonymous to these Notes:The price reverse auction is a common auction format, where the bid prices submitted by the various bidders are visible to all participants. Although you dont see who your competitors are, you do know that there are X number of competitors. The prices typically decrease over the course of the auction event, which can take place over minutes/hours timeframe. The ranked reverse auction.is slightly different in that the price is not shown. Participants only know who is winning, and their relative rank.. If a bidder is in third place and does not know what the current winning price, they may submit a bid that is way below the current winning bid. So if Company ABC were asked to participate in a ranked auction, you are not going to gather a lot of competitive information about price differences. Company ABC may choose to not participate in this type of auction. FreeMarkets does a lot of these, typically in industries where prices are really sensitive. English or forward auctions typically are used to sell off excess material or for fine art. The auction starts with one price and sequentially goes up. The highest bidder wins the auction.A Dutch auction is a bit different than a forward auction in that it starts at a high price and then sequentially goes down until a participant places a bid. For example, an auction may start at $500 for a bunch of flowers. It will go down to $480, $470 until the first person places a bid and wins the lot at that price. A Sealed bid is basically a point-in-time auction where the information is just submitted in a sealed bid. The Vickrey type is a very academic model that is not used much2Overall:Typical auction elements that a buyer needs to determine and understand prior to conducting an auctions. Some of this information also is shared with the vendor participants

    Notes:Opening Price- Many theories on what to set this at including: at the current price and probably more prevalent at a price above (~5%) the current price in order to foster a bidding momentum Reserve Prices- not always communicated to the supply base