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NAEP Annual Meeting April 8, 2008

Georgia’s Procurement Transformation Initiative Presented by Tim Gibney, C.P.M. and Mirna Barker, Ph.D. Department of Administrative Services State Purchasing Division. NAEP Annual Meeting April 8, 2008.

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NAEP Annual Meeting April 8, 2008

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  1. Georgia’s Procurement Transformation Initiative Presented byTim Gibney, C.P.M. and Mirna Barker, Ph.D.Department of Administrative ServicesState Purchasing Division NAEP Annual Meeting April 8, 2008

  2. The Governor’s Commission for a New Georgia has been the driving force behind the Procurement Transformation Initiative “The primary objective of the Procurement Transformation Initiative is to (1) perform a thorough spend analysis of the State’s purchasing, (2) implement strategic sourcing across the majority of this spend, while (3) simultaneously building the state’s capacity to sustain the benefits of this effort into the future” - Procurement Transformation Initiative Memo; Tommy Hills, Jim Lientz, Lonice Barrett, November 22, 2005 The Procurement Task Force, led by private sector representatives, targeted savings of $135MM by FY ’09

  3. Georgia Colleges and Universities

  4. The Procurement Transformation Initiative Followed a Comprehensive Approach to Addressing Procurement Improvement Procurement Transformation Framework Procurement Direction-Setting Strategy Organizational Alignment Value Delivery Processes Supplier Operating Process Sourcing Relationship Management Management Performance Knowledge/Information Supporting Infrastructure Management Management Human Resources Management

  5. What we completed: State Purchasing implemented numerous initiatives based on the Transformation’s recommendations Sustainable State Purchasing Capacity Improvements Process PerformanceManagement Organization Training Technology Key Initiatives Phase I Accomplishments • Strategic Sourcing • Negotiation Guidelines • Total Cost • Vendor Market Analysis • RFQ/RFP Process Improvement • Update of Procurement Code and Policies (In process) • State Purchasing Executive Dashboard • Insurance and Bonding Guidelines • Contract Administration Management • Vendor Performance Management • Organization Redesign • New job profiles • New pay grade • People Development Guidelines • Recruiting assessment tools and procedures • NIGP and ISM partnership • Training Review Council • Training curricula guidelines and roadmap • State Certification program (not released) • New employee on-boarding • Implementation of PeopleSoft Procurement (In process) • Web-based P-Card admin. (In process) • SharePoint collaboration site • Electronic solicitation (eQuote, eRFx) The team has built the foundation for sustainable improvements

  6. Information Packet Enhancing eQuote Certification Current Initiatives – Phase II Collecting information from Agencies and Universities Assessing skills Based on Defined Benchmarks Conducting Training Classes to Enhance Skills Conducting Performance Improvement Reviews Working on Request for Proposals Creating Certification Conducting Surveys Defining Procedures for Increasing DPA

  7. The State redesigned their purchasing organizational structure to improve service and operational delivery Asst. CommissionerState Purchasing Director, Strategic Sourcing Director, Knowledge Center Director, Customer Advocacy IT/Telecom Strategic Support Process Improvement Procurement Applications Good and Supplies Special Projects Cust./Vend. Satisfaction Professional Development P-Card Program Management Infrastructure

  8. Procurement Transformation Timeline We are Here October 2005 February 2006 April 2006 August 2007 September 2009 Phase I Phase II Capacity Building • Assessment & Recommendation • Organization • Skills & Training • Process • Performance Management • IT Architecture Implementation State of Georgia becomes one of the Best Managed States with an extremely efficient and effective procurement organization Spend Management Strategic Sourcing

  9. Lag Measure Lead Measures Lag and Lead Measures Established Attain $135M savings in state spend by September 30, 2009 • Increase Total Number of Statewide Contracts by 10% per Year • Increase Purchasing Card Transaction Volume by 35% (in millions) • Increase CEU Eligible Certificates Issued to Procurement Staff Statewide to 35 % • Reduce Cycle Time for Protests (# of days) by 10% • Reduce Average Cycle Time For RFXs (# of days) by 10% • Reduce # of Agency Requisitions Managed by SPD by 10%

  10. commitment >> assessment & measurement >> knowledge acquisition >> skills practice >> application >> reinforcement Assessing Skills Throughout the StateAssessment Tool Development: A 4-Step Process… Infrastructure Development (Phase I) Reorganization, Restructure, Position Analysis and Development, Core Competency Definition, Benchmark Definition, Training Needs Assessment Design • Assessment Tool Development • Skills Inventory • Self Assessment (View of Self) Data Collection Gap Analysis Statistical Analysis Analysis • Development of Strategies for Performance Development • Development of Individual Action Planning Customized to Individual Organizational Needs • Establishing Accountability • Results = New Beginning Implementation

  11. The Assessment Tool… • It assesses five major key skills: • Strategic Sourcing/Job Specific • Governmental Affairs • Customer Service • General Professional Skills • Computer and Technical Skills

  12. Assessment Results…

  13. S Basic Procurement Certificate RFP Certificate Contract Writing and Administration Certificate 1 2 5 Negotiations Certificate 4 S S P-Card Certificate S Specialty Certification Specialty Certification Specialty Certification Specialty Certification Certification Program Core Certification

  14. GCPA Basic Procurement Certificate 1 Core Certification – Basic Procurement Certificate: Recommended Courses

  15. Procurement Transformation Technology Project Impact

  16. Procurement Transformation Technology Project (Team Georgia Marketplace) - Core Functionality and Pilot Agencies Pilot phase to be completed by January 2009 Electronic Requisitioning Provides easy self-service web-shopping system via online catalogs of products and services available on statewide contracts, streamlines employee ordering and lowers procurement costs by reducing transaction overhead and controlling maverick spending Supplier Contract Management Standardizes contract processes, reduces time-to-contract, and drives contract compliance SPD DOAS DHR GDC DHR PeopleSoft GDC Catalog Management Provides a web-based application to access, transform, and integrate catalog content Collaboration beginning with University system Supplier Self Service Two-way online communication with suppliers enabling self-service access to register and change their bidder information and access to outstanding POs and payment status Strategic Sourcing Enables buyers to create buying events, permits suppliers to respond to procurement actions, allows purchasing agents to analyze supplier responses and make awards GDC GDC DOAS

  17. Goal Goal Goal What are we wanting to accomplish for the University System? A Goal is to Delegate Purchasing Authority to Agencies and the State Universities • Training and certification • Skill validation So that… State Purchasing Can Focus on Increasing the Number of Statewide Contracts and Achieve Our Procurement Goals

  18. Developing Procedures for Collaboration to Improve Procurement Performance and Customer Service Levels • Strategic Sourcing • SWC Development & Marketing • Qualify Performance Levels (Approvals) • Recommend Increased DPA • Co-Sponsor Solicitation • Quality Control Input (SWC information) • Action Strategies (SWC Opportunities, Discounts, Triggers & Action Plans) • Knowledge Center • Strategic Support – Data Resources • Procurement Applications – System Needs • Customer/ Vendor Satisfaction – Vendor Problems • Professional Development – Training, Case Studies • Purchasing Card Manager – Program Administration, Transaction & Purchase Type Approvals, Deficiencies, Opportunities • Leadership Team • Commissioner • Assistant Commissioner of Procurement • Knowledge Center Director • Strategic Sourcing Director • Customer Advocacy Director DPA Recommendation (Increase/Decrease Current Level) Approve DPA Level (Increase/Decrease Current Level) Relations Building • Process Improvement • Audits • Ensure compliance • Evaluate performance • Validate performance • Identify risks • Develop mitigation strategies • Best Business Practices • Reports • Compliance Results • Performance Results • Action Plans Partner Stakeholder Improved Procurement Performance Evaluate, Support, Approve, Validate Increased DPA Entities/ Colleges & Universities 42 Entities 37 Colleges/Universities Support Support Information Sharing Information Sharing Support Information Sharing Action Plans • Library • Customer Service Surveys • Best Business Practices • Best in Class Examples • GPM/GVM Enhancement Needs On-going Reinforcement Sustainable Procurement Performance

  19. Thank you! Questions? ?

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