ICT Procurement ICT Coordinators Information Day – September 2008

1. ICT Procurement ICT Coordinators Information Day – September 2008 Peter Dowling A/ Commercial Director – Strategy DET Procurement Directorate ICT Fleet Manager Ph 1800 654 310 Fx 1800 808 385 Email ICTfleetorders@det.nsw.edu.au

2. Agenda • ICT procurement in context • ICT procurement process change • ICT fleet desk statistics • ICT hardware • IWB Standards • Imaging devices • Open forum / Issues / Questions

3. Though small relatively to construction and labour hire, ICT procurement has wonderful opportunities for savings ICT procurement in context

4. Delivering procurement reform • DET is one of the largest procurers of ICT hardware, software and telephony by any measure • ICT unit pricing has been coming down and therefore worthwhile to explore through volume commitment • ICT achieved economies of scale through T4L program • DoC has recently created better SCCB contracts • Panel eg GTAs, electronic whiteboards, imaging devices • ITS 2007 with unit pricing • DET volume commitment with compliance through programs has been given respect by suppliers eg whiteboards, PCs, imaging devices, video conferencing ICT procurement process change

5. Delivering procurement reform Coordinated planned Procurement State based contracts regardless of location/source of funds Divide and conquer by suppliers is diminishing eg Fuji has given better pricing by removing the need for marketing programs Total lifecycle costing evaluation based on social, economic and environmental evaluations Reduced ICT hardware suppliers from 27 to 8 and ordering to a single central location Fit for purpose standard classes of device. Central source of all DET standard ICT items across DET/TAFE Greater accountability from core DET vendors through KPI management Roadmap to full asset management, tracking and fleet management for ICT hardware. ICT procurement process change

6. ICT Procurement Roadmap ICT procurement process change

7. Order process Needs analysis Audit, leases terminating, growth, replacements Requirements analysis Requisition Web check, A.Form raised A.Form reviewed by vendor Approval Purchase order A.Form & expenditure approved Delivery A.Form check, PO raised & sent Installation Vendor delivers PO to site Training Fleet Manager arranges install Vendor device instruction ICT procurement process change

8. Ordering Process – Imaging(Copiers, Printers, Faxes) DET Intranet site - Select Department Resources - Select A–Z Directorates - Select Procurement Selecting Device - Select Supplier: Fuji Xerox, Hewlett Packard, Ricoh or Canon - Select device required and complete Information Requirements Form (IRF) Final Stage - Supplier checks completed authorisation form which is then processed by the ICT Fleet Desk • Supplier • Supplier will contact customer • Email is sent with an authorisation form that needs to be completed and sent back to the supplier For assistance at any time call the DET Fleet desk on 1800 654 310 ICT procurement process change

9. Ordering Process - Discretionary(Interactive Whiteboards and Peripherals) • Ordering • Call/Email ICT Fleet Desk: • 1800 654 310 • ictfleetorders@det.nsw.edu.au • Ensure quantity and model are included DET Intranet site - Run a search for ‘Global Parts List’ (GPL) - All equipment is listed here for Connected/Interactive Classrooms • Acceptance & Delivery • On receipt of Authorisation Form the order will be processed and delivery ETA is 10 working days • ETA to installation is approximately 3/4 weeks after delivery. • Processing • ICT Fleet Desk will send out a checklist and site assessment to be completed and returned • Once returned an Authorisation Form and Quote will be sent for signature For assistance at any time call the DET Fleet Desk on 1800 654 310 ICT procurement process change

10. Progress / Changes Product Removed requirement for all items to have installation (with conditions) Allowed for conditional direct ship Componentised large, complex product lists to single SKU’s Process Streamlined process of many smartbuy activities (product add, ordering) Building reports Requested interface for daily live vendor data links. Made vendors accountable for full KPI’s ICT procurement process change

11. Known teething problems Systems Services Addressing small service/install item comparisons Non aligned vendor marketing. Re-training aligned vendor behaviours to meet DET Standards. • Introduction of NSW Commerce “Smartbuy” program as core catalogue source. • Updating core DET systems in progress to meet new standards. • Backlog A process of constant enhancement and refinement. ICT procurement process change

12. The Backlog Why? Expediting Backlog cleared 1st week of Term 4 Additional 50+ install staff, flying squads. Inventories / supplier rules All business as usual (BAU) require site surveys / self assessments • Delays in standard development • Non “Fit for Purpose” purchasing • Opportunistic Supplier marketing • Delays in vendor shipments. ICT procurement process change

13. Number of calls coming into the DET Fleet Desk 3,766 Average time spent on incoming calls 3:01 mins Number of calls made to sites, from the DET Fleet Desk 10,775 Average time spent on outgoing calls 2:02 mins Number of abandoned calls 155 SLA 80% Number of calls answered <20 secs) 69% Telephone Statistics The following data is from a reflective date range of between the 31st March 2008 to 27th August 2008 ICT fleet desk statistics

14. Total number or orders placed through the DET Fleet Desk 1,706 Total number of Imaging (printers, faxes, etc) orders 1,021 Total number of discretionary orders 685 Total number of emails into “ICTFleetOrders” (All queries, quotes, orders & site assessments) 2,236 Total number of emails from DET Fleet Team 3,106 Printer Order Value $10.1m IWB / Connected Classroom Value $6.3m Processing Statistics The following data is from a reflective date range of between the 16th April 2008 to 27th August 2008 and shows all orders placed by the DET Fleet Desk for discretionary and imaging orders ICT fleet desk statistics

15. Pricing test • If a vendor is offering similar product, model and warranty across the state, vendors on program will be required to match this. Please send comparison data for review to ICTfleetorders@det.nsw.edu.au ICT hardware

16. When comparing value . . . EG: low cost long throw Epson X5 Consider Is this the same type or class of device What is the warranty? Is service to DET standard across NSW? Am I bundling up service and components correctly? Is not equivalent to High quality short throw Epson 400w ICT hardware

17. Why have approved standards Standards provide Standards mean Testing and approving products and solutions Adopting standards for a time period until they are superseded. Training and enforcing usage across the enterprise Helping to predictably grow service to the department • Uniformity in service delivery. • Least risk of unpredictable outcomes. • Reduced purchase and support costs • Known platforms to create outcomes. IWB standards

18. Approved Interactive Whiteboards Stylus Touch (recommended)‏ Finger Touch (optional)‏ Panasonic UB-T780 • 77” diagonal • Pen/Stylus interface • Fine point accuracy • PET-coated metal plate surface • $1443 ex GST Smartboard SB680 • 77” diagonal • Touch & stylus interface • Finger point accuracy • Polyester surface • $1958 ex GST • 64” model available ($1728 ex GST)‏ IWB standards

19. Approved Data Projectors Ultra Short Throw(8cms - recommended)‏ Short Throw(1-2 metres)‏ Long Throw(2-9 metres)‏ Sanyo PLC-XE50 • Little to no eye contact, located above board • Installs on wall above board • $2443 ex GST Epson EMP-400W • Some eye contact, located above/in front of teacher • Install on wall or roof mount • $1983 ex GST Dell 1409x • Some eye contact, located in front of teacher • Install on roof or free standing • $1063 ex GST IWB standards

20. Ultra Short Throw Projector • Projects square from 8cms • Flush mount to wall, less material required • Low/no glare as bulb is closer to board than teacher • Alarm/secure The UST is the DET preferred projector solution IWB standards

21. Why were these chosen? • Short throw / UST projectors give best teacher/student experience. • Best price/performance and fit for purpose. • Product compatibility with core systems, future roadmap. • Warranty and coverage capability across NSW for 4 years IWB standards

22. Calculating equity - product *unavailable in 2007, pricing based on current non DET market Also calculate new statewide SLA’s: • 4 year warranty • 10 day delivery SLA’s anywhere in NSW • NBD/2BD Warrantee Service anywhere in NSW IWB standards

23. Approved Flat Screen Monitors 42 inch flat panel monitor 42 inch flat panel monitor • LG-42LG30 (recommended)‏ • High Definition Tuner • 1366 x 768 resolution • 2 HDMI & component inputs, 1 S-video • PC Input and RS232 Control port • $1618 ex GST • Phillips BDL4231C • HDMI input • 1366 x 768 resolution • 2 HDMI & component inputs, composite, S-video, smartcard • PC Input and RS232 Control port • $1823 ex GST IWB standards

24. Video Conferencing Equipment • Tandberg selected as chosen VC Vendor • Meet equitable service standards across state • Best price/fit for purpose • Compatibility with core applications • Final pricing and SKU’s to be announced imminently IWB standards

25. When do I need installation Is required for ordering Is not required for Demountables If it makes economic sense for a GA/Parent/CC who carries insurance and qualifications and can follow standards of installation. If the school procures installation externally it must be through DET Fleet Manager. • Full Interactive Classroom • Ultra Short Throw projectors • Any fixed cable infrastructure (except in TAFE) • If you are building the basis for a Full connected Classroom (and this is the first components) • The fleet desk will always recommend installation IWB standards

26. Calculating equity - installation • Set fixed prices across all NSW regardless of location • Previous pricing varied significantly dependant on location, impacting equity. • Previously many sites attracted tariff’s / flag falls for services • Standards of service varied depending on local relationships • Uniformity across state was not achieved, impacting statewide education delivery. • Fleet Management will onboard regional NSW VAR’s to continue to refine statewide service model and provide equity**. IWB standards

27. PROCUREMENT – IMAGING DEVICES - EXAMPLES Hunter TAFE (5yr life) • Completed fleet audit • 45% reduction in fleet • device improvement • cost/print reduced $4.9m Silverwater High School (5yr life) Completed fleet audit • 54% reduction in fleet • device improvement • cost/print reduced $200k PRINT PROCESS REDESIGN Imaging devices

28. Imaging Devices – Savings Of the first 675 devices sold since the moratorium was lifted Buyers paid $3million LESS ‘Harvested’ $565,000 in margin $3.565m total savings • Priority – to rightsize the fleet through changing leases to purchases and selecting the best machines! • We need your help to “bring out the dead” Imaging devices

29. More Information Please send questions or comments to: DET ICT Fleet Manager Ph: 1800 654 310 Fax: 1800 808 385 Email: ICTfleetorders@det.nsw.edu.au

30. IT Product Purchase Buying guidance Complete Authorisation Form Receives Product Receives Training Approves Debit Reviews invoice SCHOOL Review Authorisation Form Expediting Receives & Checks Invoice/GRN FLEET MANAGER Site Audit/ Assessment Assess Requirement Receives PO/ Despatches Order Device Installation/ Training SUPPLIER Provide Information On Intranet Process Invoices PROCUREMENT Invoice Schools Debits Schools FINANCE