purchasing directors’ meeting december 15, 2011

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Purchasing Directors’ Meeting December 15, 2011

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Purchasing Directors’ Meeting December 15, 2011. Agenda. State Purchasing Leadership and Organization – Kelly Loll, DMS DFS Statewide Contract Reporting System Update – Elwood McElhaney, DFS PPIP Update & Survey – Hal Houston, DMS Hot Topics W-9 Update – Eric Swanson, DMS  - PowerPoint PPT Presentation

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Page 1: Purchasing Directors’ Meeting December 15, 2011

Purchasing Directors’Meeting

December 15, 2011

Page 2: Purchasing Directors’ Meeting December 15, 2011

2

• State Purchasing Leadership and Organization – Kelly Loll, DMS

• DFS Statewide Contract Reporting System Update – Elwood McElhaney, DFS

• PPIP Update & Survey – Hal Houston, DMS• Hot Topics

– W-9 Update – Eric Swanson, DMS  – Review of Proposed Bills – Dick Chatel, DMS– eQuote Update – MFMP team members– MFMP December release – MFMP team members

Agenda

Page 3: Purchasing Directors’ Meeting December 15, 2011

3

– Spikes-Cavell pilot – Cliff Chroust, DMS– Database clean-up – Kelly Loll, DMS– State Purchasing Marketing and

Communications – Linda McDonald, DMS• Other Submitted Topics – PDs and DMS • Purchasing Directors’ Meeting Frequency and

Format – Kelly Loll, DMS

Agenda

Page 4: Purchasing Directors’ Meeting December 15, 2011

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Division Leadership & Organization

• Kelly Loll, State Purchasing Director Effective December 7

• Reorganization within Division of State Purchasing

–Group Category Managers (Bureau Chiefs)

–Category Managers

–Associate Category Managers

–Contract Managers

Page 5: Purchasing Directors’ Meeting December 15, 2011

5ClassClass GroupGroup FamilyFamily CategoryCategory SubCategorSubCategor

yy

Key

Division Leadership & OrganizationCategory Tree

Page 6: Purchasing Directors’ Meeting December 15, 2011

6

Division Leadership & Organization

• Welcome Cliff Chroust and Dick Chatel

• Also part of State Purchasing:

­Office of Supplier Diversity

­Private Prison Monitoring Bureau

­Fleet Management Bureau and Federal Property Assistance

Page 7: Purchasing Directors’ Meeting December 15, 2011

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Statewide Contract Reporting System Elwood McElhaney, DFSDivision of Accounting and Auditing

•2011 Florida Legislature enacted Senate Bill 2090 to amend section 215.985, Florida Statutes

•Creates “Transparency Florida” Web portal –Provides visibility to state contracts procured by both executive and cabinet agencies–Gives Floridians increased visibility in how state government is doing business

•DFS and DMS discussing ways to maximize the MFMP system–Support this important transparency project–Leverage efficiencies already in place in MFMP

Page 8: Purchasing Directors’ Meeting December 15, 2011

Stage One – Need Identification

Florida Best Practice Gap AnalysisProcurement Process

Improvement Plan

Page 9: Purchasing Directors’ Meeting December 15, 2011

9

Stage One – Gap Analysis Overview

• The aim of this document is to provide an overview of the gaps between the current process used by State Agencies to identify a sourcing need and industry best practices.

• This Stage One Assessment includes:– A review of State Agency’s current competitive

sourcing processes– A summary of best practice in exploring a competitive

procurement opportunity– The identification of gaps and opportunities to better

align current processes with best practices– A recommendation of standard templates to apply to

the current stage

Page 10: Purchasing Directors’ Meeting December 15, 2011

10

Florida Strategic Sourcing Methodology

Profile Internally & Externally

Develop Strategy

Screen Vendors &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Implement AgreementsAssess

Opportunities

Profile Internally & Externally

Develop Strategy

Screen Vendors &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value

Kick-Off &

Stage Two: Pre-

Solicitation

Stage Three: Solicitation Preparation

Stage Four: Solicitation

Stage Five: Evaluation

Process

Stage Six: Award

Process

Stage Seven:Contract Process

Stage One: Need

Identification

-

Outcomes

Identify Need

Need Documented in Sourcing Tool

Determine Applicable Sourcing Exceptions

Establish Approach

High-Level Identify internally/externally the need for purchase or establishment of a new

contract.

Identify procurement exceptions as per Florida

Statute.

Analyze existing contract sources by applying the

Decision Tree.

Determine whether a sourcing event is required.

Review special approvals or restrictions applying to

certain purchases.

S1.1

S1.2

S1.3

S1.4

S1.5

Page 11: Purchasing Directors’ Meeting December 15, 2011

11

Stage One – Current State SummarySteps:

• Approach varies greatly amongst State Agencies • Sourcing process can be seen by requisitioners as a roadblock or

‘necessary evil’ to make a purchase

• In pursuing a sourcing event, team size and engagement can be limited based on the size and bandwidth of the procurement office

• Some customers develop their own internal teams, excluding Purchasing

Observations

High-Level Identify internally/externally the need for purchase or establishment of a new

contract.

Need Identification

Identify procurement exceptions as per Florida

Statute.

Analyze existing contract sources by applying the

Decision Tree.

Determine whether a sourcing event is required.

Review special approvals or restrictions applying to

certain purchases.

• Special approvals and restrictions vary by State Agency and can be dependent on the commodity or service being sourced, the origin of funding (e.g., grants often have specific purchasing restrictions), and the amount of the purchase.

• Decision trees are not often formally documented and vary by State Agency.

S1

S1.1

S1.2

S1.3

S1.4

S1.5

• While many procurement decisions / restrictions are outlined in statute or rule, the application of these decisions vary by State Agency.

• When approaching the end of a current agreement, the rebid/renewal process more often follows a similar approach

• When a new need is identified, the customer often handles this step with little to no involvement from Procurement

OutcomesNeed Documented in

Sourcing Tool

Page 12: Purchasing Directors’ Meeting December 15, 2011

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Stage One – Best Practice

• Conduct a preliminary assessment of the opportunity and confirm appropriate sourcing/procurement approach

• Identify and document the procurement need• Internal need identified through means such as spend assessment

or contract expiration • External need identified through customer request

PurposeSteps:

• Clearly documented procurement exceptions enables the procurement professional quickly identify the best course of action based on the procurement need

• A Decision Tree provides an illustrative breakdown of the procurement options based on the established hierarchy

• Based on the Decision Tree recommendation and other information collected during this stage, the procurement professional can determine whether a solicitation is required to meet this procurement need

• When entering a solicitation process, it is important to identify and plan for any special approvals or restrictions which may apply

High-Level Identify internally/externally the need for purchase or establishment of a new

contract.

Need Identification

Identify procurement exceptions as per Florida

Statute.

Analyze existing contract sources by applying the

Decision Tree.

Determine whether a sourcing event is required.

Review special approvals or restrictions applying to

certain purchases.

S1

S1.1

S1.2

S1.3

S1.4

S1.5

OutcomesNeed Documented in

Sourcing Tool

Page 13: Purchasing Directors’ Meeting December 15, 2011

13

Stage One – Gap Analysis• Standardize the process for sourcing competitive procurement opportunities • Encourage customers to engage Procurement team early in the process,

especially when a new need is identified• Promote the sharing of spend data and reports amongst agencies

• Develop Spend Assessment Job Aid to enable State Agencies to observe trends in Purchasing

• Encourage customers to engage Procurement earlier in the needs identification process to enable proactive versus reactive collaboration (communication to include benefits to customer)

• Develop a decision tree for determining how an opportunity should be pursued based on key indicators (e.g., price, funding, existing agreements)

• Leverage Sourcing Tool project timeline to assign owners and due dates to key project activities

Opportunities for Improvement

Steps:

High-Level Identify internally/externally the need for purchase or establishment of a new

contract.

Need Identification

Identify procurement exceptions as per Florida

Statute.

Analyze existing contract sources by applying the

Decision Tree.

Determine whether a sourcing event is required.

Review special approvals or restrictions applying to

certain purchases.

S1

S1.1

S1.2

S1.3

S1.4

S1.5

• Develop a Procurement Exceptions Table documenting all procurement exceptions by Agency, as per Florida Statute

• Develop a list of Special Approvals or Restrictions which apply to certain purchases

• Provide guidance through the Decision Tree as to when sourcing events are required

OutcomesNeed Documented in

Sourcing Tool

Page 14: Purchasing Directors’ Meeting December 15, 2011

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Stage One – Proposed Process Flow

Sourcing Lead

Internal Customer

Purchasing Manager

Purchasing Data

Analyst

*Identify a need not

currently met by an existing

Agreement

Identify a need not

currently met by an existing

Agreement

Notify relevant Purchasing Manager of

potential opportunity

Notify relevant Purchasing Manager of

procurement need

*Anticipate the end of a

current contract period

This diagram illustrates the proposed collaboration between State Agencies and their Customers in identifying a competitive strategic sourcing opportunity.

*Conduct an annual

Customer Survey

*Conduct an annual Spend Assessment

Assign appropriate Purchasing

Lead

*Note: Any one of these actions can trigger the

beginning of this process.

A

Support Completion of Fact Finding

Agenda

Support Completion of Fact Finding

Agenda

Support Completion of Fact Finding

Agenda

Page 15: Purchasing Directors’ Meeting December 15, 2011

15

Stage One – Proposed Process Flow

Sourcing Lead

Internal Customer

Purchasing Manager

Purchasing Data

Analyst

This diagram illustrates the proposed collaboration between State Agencies and their Customers in identifying a competitive strategic sourcing opportunity.

Determine whether a sourcing event is required.

Review special

approvals or restrictions.

AMove to

Stage 2: Pre-Solicitation

Use Decision Tree to analyze existing contract sources

Review procurement

exceptions, as per Florida

Statute

Approve sourcing

event decision

Assign Team Members based on approval

requirements

Page 16: Purchasing Directors’ Meeting December 15, 2011

16

Stage One – Recommended Templates• Annual Customer Survey to identify opportunities at the

‘grass-roots’ level• Annual Spend Analysis a Job Aid to enable State Agencies

to run analysis in MFMP, ‘sample reports’ from State Purchasing

• Stakeholder Notification Process / Communication to engage Procurement team early in the process

• Procurement Exceptions Table a comprehensive documentation of all procurement exceptions by Agency, as per Florida Statute

• Decision Tree to determine determining how an opportunity should be pursued based on these key indicators with reference to forms

• Special Approvals or Restrictions a list of known and recommended approvals and restrictions which apply to certain purchases (agency specific)

• Fact Finding Agenda for meeting with internal customers who initiated the sourcing requirements to understand the need, who needs it, why it is needed, and who needs to be involved in the sourcing process

Page 17: Purchasing Directors’ Meeting December 15, 2011

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Best Practices ‘Dictionary’

• Internal Customer is the person / team initiating the future spend

• Sourcing Lead manages the procurement event (may also be the Purchasing Manager)

• Purchasing Manager is the Agency Purchasing Lead• Purchasing Data Analyst provides analysis and

reporting support including analyzing spend reports and other information to inform the sourcing team

Page 18: Purchasing Directors’ Meeting December 15, 2011

Stage Two – Pre-solicitationFlorida Best Practice Gap

AnalysisProcurement Process

Improvement Plan

Page 19: Purchasing Directors’ Meeting December 15, 2011

19

Stage Two – Gap Analysis Overview

• The aim of this document is to provide an overview of the gaps between the current process used by State Agencies to research and develop a preliminary business case for a competitive sourcing event and industry best practices.

• This Stage Two Assessment includes:– A review of State Agency’s current competitive

sourcing processes (including process flow diagrams)– A summary of best practice in research a competitive

procurement opportunity and developing a preliminary business case

– The identification of gaps and opportunities to better align current processes with best practices

– A recommendation of standard templates to apply to the current step

Page 20: Purchasing Directors’ Meeting December 15, 2011

20

Florida Strategic Sourcing Methodology

Develop Strategy

Screen Vendors &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value Propositions

Implement AgreementsAssess

Opportunities

Develop Strategy

Screen Vendors &

Selection Factors

Conduct Auctions &

Shape & Negotiate

Value

Kick-Off &

Stage Three: Solicitation Preparation

Stage Four: Solicitation

Stage Five: Evaluation

Process

Stage Six: Award

Process

Stage Seven:Contract Process

Stage One: Need

Identification

-

Identifying scope, stakeholders and critical business requirements.

Conducting market analysis to identify available goods,

services and suppliers.

Estimating expected contract award value or purchases for

the fiscal year.

Addressing market and budget constraints.

Identifying the best solicitation method.

S2.1

S2.2

S2.3

S2.4

S2.5

Stage Two: Pre-

Solicitation

S2.6Addressing delegated purchasing authority.

S2.7 Planning the solicitation.

Page 21: Purchasing Directors’ Meeting December 15, 2011

21

Stage Two – Current State Summary

Key Worksteps

• Approach varies greatly amongst State Agencies • This step is often done, although much less formally than spelled out here• Consider how this process varies for a legislative directive or spend thresholds

• Internal spend profiles based on various data sources (FLAIR, SPURS, NIGP)

• When investigating existing agreements, the DFS Statewide Contract Reporting System (SCRS) will provide insight in the future (not yet built)

• RFI’s are often conducted by State Agencies, but no standardization exists for the layout or announcement of these events at the moment

• RFI’s can also be used to indicate and support a Single Source approach

• Ask probing to questions to help prepare a risk assessment and even review business processes if risks are too high

• Sample business cases are available from SP and DOR• Most State Agencies have some a Business Case review

meeting/approval process• At State Agencies, Business Cases are very focused on funding

(and may have specific requirements based on funding type)

Observations

• External commodity / vendor profiles are sometimes conducted using various data sources, including Consumer Reports

• For some agencies, market research of possible revenue generation is an integral part of the analysis

Identifying scope, stakeholders and critical business requirements.

Conducting market analysis to identify available goods,

services and suppliers.

Estimating expected contract award value or purchases for

the fiscal year.

Addressing market and budget constraints.

Identifying the best solicitation method.

S2.1

S2.2

S2.3

S2.4

S2.5

Stage Two: Pre-

Solicitation

S2.6Addressing delegated purchasing authority.

S2.7 Planning the solicitation.

Page 22: Purchasing Directors’ Meeting December 15, 2011

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Stage Two – Best Practice• Gain deeper insight into the category, both internally through current

customers, vendors, and statewide spend, as well as externally via market trends, potential new vendors, and distribution channels.

• Lays the foundation for the category strategy and helps the team start to identify savings opportunities.

• Gain insight into the category through hosting an RFI, a pre-solicitation meeting with vendors, or contracting with an expert.

• Collect information from existing contracts to better understand pricing and category-specific terms and conditions

• Internal Profile should include vendor spend details, current top vendors, vendors’ share of the category, levels of vendor fragmentation, a list of high spend items, and current contract terms.• External profile pulls together industry trends, market size, and distribution channels to show how a more complete picture of the category beyond customers and vendors in Florida.

• A risk assessment includes a disaster recovery plan to address issues during the procurement process and contract life including ethics requirements, protests, and possibly redesign of business processes if very limited competition.

Purpose

• The business case pulls together all the information that has been gathered for the category and presents an action recommendation for management review and approval (e.g., conduct ITB/ITN/RFP, establish ACS, do nothing).

• Examples of these deliverables can be found in the PPIP Step Two Overview Presentation

Key Worksteps

Identifying scope, stakeholders and critical business requirements.

Conducting market analysis to identify available goods,

services and suppliers.

Estimating expected contract award value or purchases for

the fiscal year.

Addressing market and budget constraints.

Identifying the best solicitation method.

S2.1

S2.2

S2.3

S2.4

S2.5

Stage Two: Pre-

Solicitation

S2.6Addressing delegated purchasing authority.

S2.7 Planning the solicitation.

Page 23: Purchasing Directors’ Meeting December 15, 2011

23

Stage Two – Gap Analysis• Standardize the process for sourcing competitive procurement opportunities • Encourage State Agency Procurement professionals to communicate more on

new opportunities / improve awareness of existing agency agreements• Investigate the opportunity to develop an internal communication tool /

discussion group linking State Agency Procurement professionals

• Develop a set of standard RFI notification templates (one for goods, one for services)

• Develop a set of standard RFI templates (one for goods, one for services)

• Enhance Spend Assessment Job Aid to enable State Agencies to use as input in the Internal Profile

• External Profile to include Total Cost of Ownership (TCO), specific to customer needs

• Develop a job aid to guide State Agencies in developing and understanding the benefits of an External Profile

• Agree on a standard template for a preliminary business case• Revisit the decision tree to confirm MOP after developing business

case• Develop Sourcing Templates to capture output of the Internal and

External Profiles and Preliminary Business Case• Leverage Sourcing Tool project timeline to assign owners and due

dates to key project activities

Opportunities for Improvement

• Compile advice of experienced procurement professionals on mitigating risks

Key Worksteps

Identifying scope, stakeholders and critical business requirements.

Conducting market analysis to identify available goods,

services and suppliers.

Estimating expected contract award value or purchases for

the fiscal year.

Addressing market and budget constraints.

Identifying the best solicitation method.

S2.1

S2.2

S2.3

S2.4

S2.5

Stage Two: Pre-

Solicitation

S2.6Addressing delegated purchasing authority.

S2.7 Planning the solicitation.

Page 24: Purchasing Directors’ Meeting December 15, 2011

24

Stage Two – Current Process Flow This diagram illustrates the current collaboration within State Agencies to internally and externally research a competitive sourcing opportunity and develop a preliminary business case.

Sourcing Lead

Internal Sourcing

Team

Internal Customer

Develop RFI to collect

more information

from supplier community

Post RFI notification on

VBS

Send e-mail to identified

supplier community

Review RFI Responses

Develop Preliminary Business

Case

Present Business Case to

Review Board

Support RFI development ,

as needed

Support RFI development ,

as needed

Determine whether the procurement needs an RFI

Optional as a courtesy to suppliers

Complete research

through other sources

Determine if procurement

indicates single source

or non-competitive

Page 25: Purchasing Directors’ Meeting December 15, 2011

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Stage Two – Proposed Process Flow

Sourcing Lead

Internal Sourcing

Team

Internal Customer

This diagram illustrates the proposed collaboration within State Agencies to complete Step Two of the Seven Step Sourcing Methodology for competitive sourcing opportunities.

To Be Completed

Page 26: Purchasing Directors’ Meeting December 15, 2011

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Stage Two – Recommended Templates• RFI Posting template intended to notify the public that you

have issued a Request for Information (RFI)• RFI template capturing the key content recommended for

inclusion in an RFI• Internal Profile to identify current top customers and

vendors, understand spend behavior and distribution across current vendors, and better understand current agreement pricing and category-specific terms and conditions (if any)

• External Profile includes category analysis of pricing and vendor profiles at the local, regional, and national levels

• Preliminary Business Case pulls together all the information gathered for the category and presents an action recommendation for management review and approval (e.g., conduct ITB/ITN/RFP, establish ACS, do nothing); a small, medium, and large Business Case depending on the spend

• Sourcing Project Workplan with a comprehensive list of key activities to complete this step of the sourcing methodology

• Decision Tree to determine determining how an opportunity should be pursued based on key indicators including spend thresholds, statutory requirements, etc.

Page 27: Purchasing Directors’ Meeting December 15, 2011

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Best Practices ‘Dictionary’

• Internal Customer is the person / team initiating the sourcing request

• Sourcing Lead manages the procurement event• Purchasing Manager is the Agency’s Purchasing Lead• Internal Sourcing Team where applicable, based on

size and complexity of the event, this team is identified by the Sourcing Lead and consists of one or more procurement professionals within the State Agency who will play a key role in developing / managing the procurement event

• Purchasing Data Analyst provides reporting and analysis support throughout the procurement event (e.g., developing spend reports, analyzing survey results, etc.) to help the Sourcing Lead make informed decisions

Page 28: Purchasing Directors’ Meeting December 15, 2011

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PPIP Survey

Stage One and Stage Two PPIP Survey

•Open through 6 p.m. Eastern time, Dec. 20•16 responses as of Dec. 14•Still time to give us your feedback•Any questions, contact [email protected]

Page 29: Purchasing Directors’ Meeting December 15, 2011

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Purchase Order (PO) data:• 85 percent of POs are associated to vendors

that currently have a valid W-9 status ­ in October, this was 71 percent

• Of the 15 percent of POs that are associated to vendors without a valid W-9:

– Department of Health represents 42 percent– Department of Corrections represents 11 percent

 

Hot Topics – W-9 Update

Page 30: Purchasing Directors’ Meeting December 15, 2011

30

Hot Topics – W-9 Update

Invoices:• 90 percent of paid IRs are associated to vendors

that currently have a valid W-9 status­ in October, this was 79 percent

• Of the 10 percent of paid IRs that are associated to vendors without a valid W-9:

– Department of Health represents 33 percent– Department of Corrections represents 20 percent

Page 31: Purchasing Directors’ Meeting December 15, 2011

31

Purchasing Related Bills • Tracking a total of 29 Bills, so far• Domestic Call Centers (SB 678, HB 649)

– Affects section 287.058, Florida Statutes– Requires contracts exceeding Category 2 that include call

centers must be staffed by persons within the United States– Applies to subcontracts as well

• Minority Business Certification Taskforce (HB 4103, SB 1112)– Affects section 287.0943, Florida Statutes– Deletes requirement to convene task force to assist minority

business in procurement or development of government-sponsored programs

• Task force proposed uniform criteria and procedures for qualifying businesses to participate in procurements as CMBEs

Review of Proposed Bills

Page 32: Purchasing Directors’ Meeting December 15, 2011

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Purchasing Related Bills • Wartime Veterans (SB152, SB 922, HB 221, HB977)

– Affects 295.187, Florida Statutes• Renames Act to Florida Veterans Business Opportunity Act• Includes Service–Disabled Veterans Enterprise Program and Wartime

Veterans– Wartime veteran who served in a campaign or expedition for which

a campaign badge has been authorized or served during Spanish-American War; Mexican Border period; World War I; World War II; Korean Conflict; Vietnam Era; Persian Gulf War; Operation Enduring Freedom; Operation Iraqi Freedom.

– A veteran of a period of war, as used in 38 U.S.C. sesttion1521, who served in the active military, naval, or air service:

o For 90 days or more during a period of war; o During a period of war and was discharged or released from such service for

a service-connected disability;o For a period of 90 consecutive days or more and such period began or ended

during a period of war; oro For an aggregate of 90 days or more in two or more separate periods of

service during more than one period of war.

Review of Proposed Bills

Page 33: Purchasing Directors’ Meeting December 15, 2011

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Purchasing Related Bills – Florida Business Preference

• Affects 283.35, Florida Statutes, ITB for printing must include preference for vendors with a principal place of business with Florida. If out-of-state business has low (responsive/responsible) bid add 5 percent for evaluation purposes only.

• Affects 287.084, Florida Statutes, ITBs for Personal Property must include preference for vendors with a principal place of business within Florida.

– If out-of-state business has low (responsive/responsible) bid add 5 percent for evaluation purposes only.

Review of Proposed Bills

Page 34: Purchasing Directors’ Meeting December 15, 2011

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Hot Topics – eQuote Update

MFMP Sourcing 3.0 eQuote

•eQuote available for agencies to use­Informal solicitations­Quotes off State Term Contracts

•Completed buyer training sessions at MatchMaker in November and two webinars in December•Will schedule additional vendor webinars for early 2012

Page 35: Purchasing Directors’ Meeting December 15, 2011

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Agency eQuote Access• Twelve agencies to date requested accounts for

eQuote– Sixty eQuote customers throughout these agencies

• APD• DOE• DEP• DOH• DJJ• DMS• DOR• DOT• DVA• DOAH• FWC• State Courts

MFMP Sourcing eQuote Update

Page 36: Purchasing Directors’ Meeting December 15, 2011

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Hot Topics – MFMP Release 9.2.0

MFMP technical team implements release tonight

•Maintenance window from 7 p.m. to midnight•Addresses several known issues from the MFMP 3.0 upgrade:­Customers will not receive an error when submitting an

invoice where the first line item has more split accounting lines than subsequent line items (SIR 1593).  

­Fully approved requisitions will no longer show in the "To Do" section of your Dashboard (SIR 1610).

­An "Invoice" button now displays on Contract Requests and Contracts so customers can invoice against contracts in all statuses. The status of contracts that are “Closed,” but still available for invoicing will now be "Inactive" rather than "Closed” (SIR 1619).

Page 37: Purchasing Directors’ Meeting December 15, 2011

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• DCF Spend Analysis Pilot – Drilling down on Spend– Comparing Agencies and Entities (Observatory: 1000+

public entities)• Looking at percentage of spend in category• Contract opportunities (identify large spend off contract)• Relative size of supplier base on a given category of spend

– Enriched data on vendors• Employee count• Total revenue• Incorporation date• Basket of goods provided

– Geographic spend data• Which cities get the spend• Helps highlight spend in Florida

– RFI & other vendors

Spend Analytics Pilot – Spikes Cavell

Page 38: Purchasing Directors’ Meeting December 15, 2011

38

Spend Analytics Pilot – Spikes Cavell

• Brief Overview:

Page 39: Purchasing Directors’ Meeting December 15, 2011

39

Hot Topics – Database Clean-up

• Guidelines for adding and removing commodity codes

• Vendor database cleanup

Page 40: Purchasing Directors’ Meeting December 15, 2011

40

Hot Topics – Communications

Expanded Marketing and Communications role

•State Purchasing and MyFloridaMarketPlace•E-mails and Newsletter•Contract Marketing Webinars­State Agency Customers­Florida Local Government Customers (OEUs)

•PPIP survey feedback

Page 41: Purchasing Directors’ Meeting December 15, 2011

41

Hot Topics – Submitted Topics

•Practical use of “Present-value methodology – Dick Chatel and Dave Callaway•Others?

Page 42: Purchasing Directors’ Meeting December 15, 2011

42

Evaluation using Net Present Value (NPV) • Required by section 287.0572, Florida Statutes • Rule 60A-1.063, Florida Administrative Code, repealed

in October 2011• Requires comparative evaluation using NPV

– Used to help identify relative value of offers when different payment schemes are offered by vendors(unequal payment streams or differing payment periods)

– MS Excel includes NPV functionality up to 254 events.• Actual Formula available in help feature

– Rate is specified by Federal Reserve• Apparent title change• DMS has requested assistance from Federal Reserve to identify new title

and location

Hot Topics – Purchasing Policy

Page 43: Purchasing Directors’ Meeting December 15, 2011

43

Hot Topics – Meeting Frequency/Format

Planning for 2012•Collaborative Format•Increased interaction and participation•Meeting Frequency

Page 44: Purchasing Directors’ Meeting December 15, 2011

44

Happy Holidays!

Thanks for attending today!

See you in 2012!