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### Enhancing Procurement Efficiency: Louisiana's Pilot Procurement Code Implementation ###

The Louisiana Graduate Act 2.0 Procurement initiative enhances procurement efficiency by granting increased autonomy to five key institutions, including LSU and La. Tech. Effective July 1, 2012, the Pilot Procurement Code proposes simplification through electronic bidding, competitive methods like reverse auctions, and improved vendor sourcing. With a focus on strategic sourcing, it aims to reduce operating costs and streamline processes. This reform aligns with statewide performance goals, promoting both flexibility and accountability in public procurement while fostering better supplier contracts and time-saving methods. ###

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### Enhancing Procurement Efficiency: Louisiana's Pilot Procurement Code Implementation ###

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  1. LA GRAD ACT 2.0PROCUREMENT Faculty Senate October 3, 2011

  2. La Grad Acts • Act 741 (2010) - effective: June 29, 2010 • Grants increased autonomy and flexibility in exchange for a commitment to meet clearly defined statewide performance goals. • Act 418 (2011) - effective: July 12, 2011 • Key focus on “Operational Autonomies” • Procurement granted 3 levels (Base, Intermediate, and High) • High level autonomies include: • Authority to participate in a pilot procurement code in lieu of the state procurement code

  3. Grad Act 2.0 - Procurement • 5 Institutions qualified at high level • LSU • ULL • La Tech • Southern at Shreveport • McNeese • LSU applied to initiate the pilot procurement code.

  4. Pilot Procurement Code • Proposed Schedule • System Approval – December 1, 2011 • DOA Approval – January 1, 2012 • Promulgation of Rules – March 31, 2012 • Approval of JLCB – May 31, 2012 • Execution of new Pilot Procurement Code – July 1, 2012 • Go Live for eProcurement – July 1, 2012 • Pilot Procurement Code - July 1, 2012 – June 30, 2015

  5. FY 2011 – Spend Analysis Spend • Total Spend ≈ $320m • Purchase Orders ≈ $275m • PCard Spend ≈ $45m Transactions • Total Transactions ≈ 160,000 • Purchase Orders ≈ 12,000 • PCardTransactions ≈ 148,000

  6. Pilot Procurement Code • Freedom of bureaucratic processes that slow procurement down • Procurement acclimated to a Research and Academic Institution • More Selection at First Dollar of Spend • More Reasonable Competitive Limits • Convenience of One Stop Shopping • Multi-year Terms

  7. Pilot Procurement Code • Combines laws governing procurement of materials, professional services, and data processing • No more separate processes for different types of contracts – Less Confusion • Templates that can be electronically submitted and digitally signed – Simple • More Selection through more Strategic Sourcing – Lower Costs

  8. Pilot Procurement Code • NEW Competitive Methods • Reverse Auctions • Best and Final Offers • Solicitation for Offers • Cooperative Purchasing Agreements • Electronic Purchasing (eProcurement)

  9. eProcurement • Easier methods to procure by using web-based system • Real-time Competition • Better Vendor Sources • Can continue to use P-Card • Spend Analysis • Electronic bidding and signatures

  10. Together Pilot Procurement Code and eProcurement Benefits • Reduces Operating Costs • Hosted Technology • Saves Users Time • Utilizing Automated Workflow • Get More for Less • Better Supplier Contracts • More Selection by Connecting Users to Suppliers • Accessible Contract Catalogs

  11. Marie C Frank, MPA, CPPB Executive Director of Procurement and Property Management (225) 578-2307 mfrank@lsu.edu LSU Purchasing 213 Thomas Boyd Hall Baton Rouge, La. 70803 Thank you for your feedback

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