What’s New in Procurement? OGS/OSC Purchasing Forum May 18&19, 2005

1. What’s New in Procurement?OGS/OSC Purchasing ForumMay 18&19, 2005 Walter Bikowitz Director OGS Procurement Services Group walt.bikowitz@ogs.state.ny.us

2. What’s New In Procurement Topics for Today • Homeland Security • Aggregated IT Buys • Green Purchasing • Mercury Legislation • Renewable Energy • Playground Equipment • Procurement Legislation/Reform

3. What’s Happening? By whom For whom Procurement Partnerships

4. Homeland Security WorkgroupCreated August 2004 • Developed as a need to form better communications among multiple agencies with homeland security needs • Provide linkage between the needs of first responders and state procurement officials

5. Office of Homeland Security (OHS) NYS Cyber Security and Critical Infrastructure Coordination (CSCIC) Weapons of Mass Destruction (WMD) NY State Association of Municipal Purchasing Officials (SAMPO) State Emergency Management Office (SEMO) NYC Department of Citywide Administrative Services (DCAS) NYS Police Empire State Development (ESD) OGS Information Technology, Procurement Services, and Finance Office for Technology (OFT) Workgroup Members

6. Homeland Security Funds • Per David Bates – Editor of Governing Magazine • $9 Billion federal funds allotted to state and local government during 2003-2004 • Target areas such as: • First responders (Weapons of Mass Destruction Taskforce (WMDT) training, personal protective equipment, communications, data technology – intelligence sharing, emergency ops centers, etc.) • Bio-terrorism (planning and readiness assessments) • Health and safety • Security systems • Communications

7. Workgroup Mission • Needs identification utilizing Urban Area Security Initiative (UASI Grant money) and input from Workgroup members. • Cross match needs against existing contracts. • Determine products and services required. • Identify those products and services best obtained under OGS contracts. • Prioritize procurements. • Assist in providing information and education to first responders.

8. First Task • OGS cross matched UASI Grant • 18 categories of commodities & services with state contracts • Workgroup reviewed information • Identify the changing needs of the state agencies and municipalities

9. Collaboration • Identify current and potential vendors for radio, security systems, Homeland Security, and health and safety equipment • Develop a strategy for the procurement • Interface with a varied vendor environment for these needs (manufacturers, resellers, integrators, service providers, etc.)

10. PSG Efforts • Created Excel spreadsheet and web page • Reviewed comprehensive catalog contracts, piggyback contracts, SBI, NASPO Cooperative contracts, etc. to identify HS products • Discussed Initiatives on the drawing board • Hazardous Incident Contract (BO March 29) • Comprehensive Radio Communications Contract

11. Governing News Article January 10, 2005 Headlines Governing Magazine Says • NYS pioneers system for homeland purchases • Creates 1st homeland security system for both state and local governments • Valuable service to New York first responders that other states should model after

15. Results • Creates an efficient method of obtaining marketplace information. • Creates an efficient method of communicating to vendors how the state plans to procure homeland security commodities and services. • Determines the types of contract vendors and the alternatives to direct contracts with respect to comprehensive catalog contracts.

16. Hazardous Incident Response Equipment (HIRE) • New Contract Initiative – March 29, 2005 Bid Opening (Received 62 bids) • Comprehensive catalog contract providing for discount for a minimum of 13 categories of HS equipment covered by UASI grants and Law Enforcement Terrorism Prevention Program Funding • Major multi-state initiative with 14 other states (NY lead for NASPO sponsored cooperative) • Has created national interest • Five year term with renewals

17. Bid Results • Initial awards to cover the broad spectrum vendors • Additional awards to niche market vendors • Most equipment needed for domestic preparedness and disaster events should be covered • Awarded to multiple vendors to meet multiple needs

18. Personal Protective Equipment (PPE) Explosive Device Mitigation and Remediation Equipment CBRNE Search and Rescue Equipment Detection Equipment Decontamination Equipment Physical Security Enhancement Equipment Terrorism Incident Prevention Equipment CBRNE Logistical Support Equipment (chemical,biological,radiological,nuclear, explosive) Medical Supplies CBRNE Reference Materials Agricultural Terrorism Prevention, Response and Mitigation Equipment Intervention Equipment Other Authorized Equipment HIRE Categories

19. Other HS Initiatives • Communications (Radio) Bid Initiative Anticipated bid opening - August ‘05 • multiple award • five years • include maintenance • provide for adding new products and emerging technologies • Security Systems – under consideration

20. Communications Bid Will include but not limited to: • two-way radios, • related infrastructure components, and • supplemental systems for public safety and non-public safety agencies to support their critical missions. Worked diligently with OFT SWN* team to ensure compatibility with OFT proposed award *Statewide Wireless Network

21. 11 Categories • OpenSky Trunked Radio Infrastructure • Project 25 Radio Infrastructure • Dual Mode Trunked Radio Infrastructure • Conventional Analog Radio Infrastructure • OpenSky Radios and Accessories • Project 25 Radios and Accessories • Dual Mode Radios, Analog Trunked Radios, and Accessories • Conventional Analog Radios and Accessories • Aviation, Marine, Amateur Radios and Accessories • Mobile Data and Automatic Vehicle Location (AVL) Systems • Public Safety Paging System

22. Aggregated IT Buys • New PSG Team 10 - commonly known as Aggregated Buy Team • Concept – leverage government IT buying power against existing contracts. Conduct BAFOs across multiple state and local agencies • Proof of concept demonstrated valuable cost savings measures

23. Process • Agencies submit Annual Technology Plan (ATP) to OFT • OGS, OCIO, OFT review plans for anticipated technology procurements • Survey agencies through OCIO listserv • Determine standard specs and quantities • OGS Solicits RFQ and evaluates the BAFOs

24. Recent PC Example • Standard Spec for approx. 7000 PCs in 4 classes: • Desktop (business class and workstation) • Laptops (light weight and business class) • Time Frame – 90 day window for purchases (Feb. 15- May 15) – all deliveries within 15 days • Standardized on 4 vendors • based on installed base • ability to manufacture and deliver volume PCs in 15 days

25. Bid • Distributed to four NYS contract vendors on February 8, 2005. • Received vendor responses from Dell, HP, IBM and Gateway on February 15. • Agencies ordering from other than low priced vendor must receive OFT/OCIO approval.

26. Dramatic Results • Winners were Dell (3 items) and HP (1 item) • Dell and HP increased discounts over and above contract discounts by >40% • 11,000 PCs purchased by approximately 50 state and non-state agencies by March 31 • Covers purchases made through May 15 • Projected $7 million savings through March 31! • Saved 4 agencies @34% over and above their best negotiated price!

27. One agency savings • One agency saved $385,000 • Prices lowered by $550/PC over a single agency BAFO for 700 machines • More aggregated purchases will occur after current review of ATPs! • Printers • Goal for Quarterly PC buys • Software • Monitors?

28. Executive Order (EO) 134Environmentally Preferable Products(EPP) • EO dated January 5, 2005 • All state agencies shall procure and use cleaning products having properties that: • Minimize potential impacts to employees, custodial workers, visitors and other building occupants, and • Promote adoption of practices endorsed by EO • Recognize state agencies that employ environmentally managed practices.

29. What’s The Definition Of Green Cleaning Products?

30. There is NO standardized definition! Answer

31. Green Products • May include but not be limited to: • Mercury free • Non-toxic (or less toxic) • Minimal disposal impact – no hazardous impact • Recycled content (post consumer) • Energy Efficient • Reprocessed or reused

32. Green Purchasing • Also known as • “Environmentally Preferable Purchasing” - EPP • State agencies shall procure: • Products that have a reduced environmental impact while maintaining the same quality and performance. • Products that minimize health risks. • State Agencies shall provide training for correct use of products.

33. EO Requirement • EO charges OGS, DOH and DEC to provide consultation and guidance to state agencies to: • Select and procure products that reduce or minimize the risks of harmful effects to employees. • Promote adoption of EO 134 practices. • Recognize state agencies that adopt and implement environmentally beneficial facility and workplace management policies and practices. • Encourage contractors to supply goods and services to agencies. • Encourage landlords and building managers to select and procure EPP products.

34. OGS • Created web site with many resources • Offer training session at Purchasing Forum • Coordinate with DOH and DEC to provide guidance • Use Green/Clean in buildings

35. Customer Examples • Integrated Pest Management (IPM) in buildings • Low VOC paint and cleaners (volatile organic compound) • Cleaning products with base of orange or citrus essence (SBI) • Bio-diesel fuel • Fewer disposable cleaning supplies and packaging • Bulk packaging

36. Web Site includes • List of Preferred Source green products • List of industry resources – Green Seal, Inform, Center for New American Dream, etc. • List of other states’ contracts • Massachusetts required product samples tested by independent lab for cleaning effectiveness, ease of use, and odor. • City of Santa Monica documented 5% savings. • FAQs • List of Green Seal certified contract products • List of contract products self-identified by contractors as environmentally preferable • Links to nationally recognized government experts in EPP including: EPA, DEC, GSA

37. What Must You DO? • Shall purchase environmentally preferable products or document the reasons for selecting alternative products. • Reach out to experts including DEC and DOH and compile list of criteria to use to evaluate products. • Research best practices for EPP. • Research cleaning product specifications as cleaning methodology affects formulas. • Review FAQs.

38. Agency Delegation • Assign an individual to: • Assess current management practices and use of product • Evaluate products to conform • Identify and procure conforming products within the next six months allowing for phase out of non-conforming practices and allows for training • Document reasons for selecting non-conforming product

39. Reporting • Chief agency executive shall prepare an assessment retained as a document available to employees and the general public of the efforts undertaken to comply – review and update every two years • Local government and schools are encouraged to review their practices

48. Mercury Legislation Chapter 145, Laws of 2004 of Environmental Conservation Law

49. Mercury Issues • Mercury is a toxic substance. • Significant problem in the Northeast. • Release of mercury from landfill and incinerators pollute water supplies. • Toxic vapors from exposure to unacceptable levels of mercury can cause neurological harm to people.

50. The Law • Prohibits the purchase and use of elemental mercury by primary and secondary schools after September 4, 2004. • Prohibits sales of toys or novelty products containing mercury after January 1, 2005. • Requires products containing mercury to be labeled after July 12, 2005. • Prohibits waste products containing mercury from being incinerated after July 12, 2005. • Requires waste products containing mercury to be managed separately from other solid waste effective July 12, 2005.