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Purchasing Directors Meeting May 21, 2009

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2 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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3 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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Confidential State of Florida Savings Opportunities May 21, 2009

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Confidential Agenda Topics Office Depot Introductions Savings Opportunities Office Depot Design Print and Ship New State of Florida Core Florida Minority Toner Demand Management Questions/Next Steps

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Confidential Office Depot Introductions Jim Pollman-VP Southeast Region Billy Grimmett-Director Public Sector John Riley-Regional Sales Director North Florida Linda Sykes Director-Design Print and Ship Morrie Norwood-District Manager

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Confidential Design, Print, & Ship Services May 21, 2009

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Confidential Can we talk? Digital Printing Savings Focus on Quick Print/ Digital Printing/ Copy Jobs State has significant savings opportunities Vendor consolidation Leveraged buying Waste reduction/ Green effect Shipping Florida is a big state! Reduced administrative costs Virtual File Cabinet saves time and effort Leveraged Price Savings Print pricing programs are benchmarked against key Public Sector contracts to maintain industry leading pricing Uniqueness of each Agency/Department Met with 4 Departments Print and Process cost assessment

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Confidential Can we talk? Digital Printing Savings Focus on Quick Print/ Digital Printing/ Copy Jobs Closed Door Regional Print Facilities 137 Stores Digital Copy Centers/ Florida Networked Web based Virtual File Cabinet Unique Xerox Certification

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Confidential Can we talk? Digital Printing Services Print on Demand Services Digital Black and White & Color Printing Wide Format Black and White & Color Printing Binding and Finishing Services Document Archiving & Storage Web-based ordering via Online Print Center Expedited Shipping

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Confidential Can we talk? Digital Print Order Process Comparison Contact Print Shop Yes, send file No, multiple options Source vendors Get quotes/ 2 Individual job is quoted Lose leveraged spend Apples to oranges? Shipping fees Submit job, various methods Email, file size issues, Instruction communicated, Take to printer Picked up Receive job Approve separate invoice Total usage/spend tracking difficult Contact Print Shop Yes, send file No, Office Depot Online order Online quote Leveraged pricing No shipping fees Order confirmation call Receive job Integrated invoice Usage/ spend tracking CurrentProposed

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Confidential Can we talk? Additional Benefits Virtual File Cabinet offers consistency Instantly latest documents available Pre Configured documents Approvals same as Office Supplies Time Want it yesterday syndrome Just in time = waste reduction Delivered where you want it free!

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Confidential Can we talk? Cost Analysis Note: Results may vary for different HW, annual usage and infrastructure costs.

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Confidential Can we talk? Digital Printing Savings Next Steps: Meet with you to explore your unique Agency/ Department Print Assessment Total cost of ownership Process Review Virtual File Cabinet demonstration

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Confidential Savings Opportunities New State of Florida Core 5/04/09 Office Depot and DMS Utilized Private Brand and Demand Management principles to create a revised core Reviewed 2008 Agency usage trends Focused on high volume Agency usage items Consolidated spend on best value items where possible Goal of providing better value, same quality items that can reduce overall State spend Replace non stocked items with our current product assortment Minimize price increases, maximize savings opportunity

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Confidential Savings Opportunities Florida Certified Minority Toner Magnetic Imaging Systems Miami Fl Current State Agency sales of over $1M annually High Quality, Product is Guaranteed ISO 9000; 2000 Certified Qualified spend toward Certified Florida Minority Businesses Provides 10% to 45% savings over OEM Toner

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Confidential Savings Opportunities Demand Management Demand Management is the process of concentrating spend on the lowest cost product that performs the function Demand Management provides a greater savings opportunity than any other method (10%-15% of total spend) Demand Management can be Suggestive, or Mandated and requires a willingness to change past purchasing habits. Demand Management Opportunities State of Florida Core-focus spend on high use, private brand and lower cost products Florida Minority Toner- Guaranteed Product, Minority Spend Office Depot Brand Remanufactured Toner-additional product selections Demand Management requires a significant amount of analysis, and is best done at an Agency/Department level Contact your Office Depot Account Manager for additional information

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Confidential Questions/Next Steps

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19 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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20 Get Lean Florida Program Mary Ann Nealy Get Lean Program Administrator Florida Department of Financial Services Purchasing Directors Meeting May 21, 2009

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www.GetLeanFlorida.com 1-800-GET-LEAN (438-5326)

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Get Lean Suggestion

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Gatekeeper

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Gatekeeper View

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Agency Log-in

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Agency Form

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Divisions Whats expected: Answers expected within 60 days of referral (update on activities or final answer) Info received will be reported monthly to the Legislature and posted to the Get Lean website so submitters can see answers to their suggestions. Submitters name redacted statute is clear on name being kept confidential Biggest challenge - deciphering suggestions and determining best ways to respond. For DFS Reporting savings. Taking advantage of opportunities. Following through on implementing the good ones.

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Scheduled Application Improvements June 3,2009: Interagency Division Contacts We need from you Suggestion Attachment Capabilities Questions

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www.GetLeanFlorida.com 1-800-GET-LEAN (438-5326)

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31 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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Governance Session concluded May 8, 2009. State Purchasing analyzed more than 25 bills. 32

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Governance SB 2574 The SSRC is tasked with creating, hosting, and managing a statewide email system. The SSRC is also tasked with developing enterprise Information Security standards. Agency heads are required to submit documentation evidencing compliance with the Information Security standards. 33

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Provides special districts, municipalities, and counties with the ability to piggyback off of each others contracts if the original contract was competitively procured. 34 Governance SB 712

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Requires Joint Legislative Auditing Committee to oversee website containing each appropriation by state agency, expenditures, budget amendments, position and rate information for all positions provided in the General Appropriations Act. The Committee will suggest including additional state agency information such as operating fund balance, trust fund balance, fixed capital outlay project information, 10 year history of appropriations, links to audits, and descriptions of programs upon which funds may be expended. 35 Governance SB 1796

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Limits state agency authority to enter certain types of contracts unless granted specific authority in the General Appropriations Act. Requires the state agency to notify the Governor and Legislature prior to executing certain contracts. Requires certain provisions to be included in every contract. Requires certain approvals/actions by the agency. Requires deferred payment commodity contracts and consolidated financing agreements in excess of $500,000 to be expressly authorized by the legislature. Provides limited exceptions for specific agencies from provisions in subsection 1 and 2. 36 Governance SB 2694

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Bill creating Enterprise Financial Business Operation Office within DFS. Creates process to review proposed modifications for related subsystems (like MFMP). This bill did not pass. 37 Governance SB 2574

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Governance Rule revision update for Rule 60A-1.044, F.A.C. No opportunity for changes through legislation during this session. Insightful comments received as a result of Rulemaking Workshop. Incorporating the comments/suggestions and revising language. Revised version to be posted in F.A.W. 38

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Governance E-verify E-verify is an Internet based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows participating employers to electronically verify the employment eligibility of their newly hired employees. Contractors for Federal government contracts are required to use E- verify and verify employees citizenship/immigration status for all persons hired during the contract term and all persons performing work within the U.S. on the federal contract. Its designed to work in conjunction with the I-9 form. E-verify is free and voluntary and is an excellent means for determining employment eligibility of new hires and the validity of their Social Security Numbers. http://www.uscis.gov/everify 39

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40 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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MyFloridaMarketPlace Legislative impact to MFMP SP Memo #3 (Not just a new push for MAs) Feedback on checkbox for attachments DFS Vendor-add Application Update Demo use of Vendor Admin Tool to obtain MFMP vendors for bids 41

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42 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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Commodity Sourcing & Contracting Bureau Contract Updates Contract Renewals Carpet & Installed Flooring (through May 31, 2010) Solicitations in Progress: Medium & Heavy Trucks (bids opened on May 6) Bulk Fuel, Gasoline & Diesel (launched solicitation on May 12) Security Officer Services Solicitations in Development Tires Construction, Industrial, Agricultural & Lawn Equipment 43

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Commodity Sourcing & Contracting Bureau Activity Updates Team 1 Energy & Transportation Team Motor Vehicles: In April, we removed Caruso Dodge from 91 awards. We replaced 87 items with awards to Beck Auto Sales, Maroone Chrysler-Jeep, and Maroone Dodge. Notified on May 15 that Maroone Chrysler-Jeep and Maroone Dodge will be impacted by the Chrysler bankruptcy and will close. Next action will depend on the timeframe for closure. Beck Auto Sales will not be impacted. GM will announce dealer closings soon. We will monitor for impact to the STC. 44

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Commodity Sourcing & Contracting Bureau Activity Updates Team 3 MRO & Law Enforcement Finalizing next action recommendations for : Tools, Lawn Care Services, and X-ray & Metal Detectors. Uniforms: we received over 90 responses to our customer survey. BIG thanks for the feedback. We are finalizing the next action recommendation now. Drug Screening Services: survey closed April 30. We are in the process of reviewing and organizing results. Team 7 SPAs and Special Projects Tissues & Towels: in negotiations with Dade Paper to reduce pricing and enhance services. Started quarterly update process for the Florida Climate- Friendly Preferred Products List. 45

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46 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau - Contract Updates Contract Renewals Multi-Function Copier Devices Management Consulting Services: Renewal amendments were sent to vendors last week. Will post renewal prior to 5/31. IT Consulting Services extension through 8/31/09. We will post renewed companies on the bulletin board so you can issue POs for next fiscal year. New Contracts Mainframe Software contract Rolling Awards includes: Unisys, Information Builders and Allen Systems Group Solicitations in Development Client/Server Software and COTS Software Printing and Multi-Function Copying Devices Mail Services (Mail Room) P-Card Services 47

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Team 4 Information Technology and Telecommunications Under negotiations with mainframe software providers Team 4 will handle IT consulting: Launched last week. ALL VENDORS MUST BID TO BE ON THE NEXT CONTRACT. New contract will start 9/1/2009 and avoid fiscal year-end activities in subsequent years. Team 5 Office Equipment and Services FedEx has agreed to waive accessorial charges for: Commercial Ground Residential for Express only (80% of residential is express) Lower overall rates (lower than current WSCA but hirer than previous DHL rates) Rental Vehicles ITN is underway. Includes separate award for trucks Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau - Activity Updates

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Team 6 Property Insurance & Program Services New Team Members: Holley Merrick, Team Lead 488-7804 Abbe Justus 487-0417 Ocean/Marine Insurance ITB is underway: Allison Norman 488- 7996 Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau - Activity Updates

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50 Agenda Office Depot Get Lean Florida Program Governance MFMP Commodity Sourcing and Contracting Bureau Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau Reminder About Next Meeting Date Purchasing Directors Meeting May 21, 2009

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51 Purchasing Directors Meeting May 21, 2009 Next Meeting July 16, 2009 2:00 4:00 pm