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Purchasing Directors’ Meeting February 16, 2012

Purchasing Directors’ Meeting February 16, 2012. Agenda. Welcome Comments – Kelley Scott Introductions – All FACTS/SCRS Update – Christina Smith and Elwood McElhaney Mobile Communication Services Contract – Jonathan Rakestraw

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Purchasing Directors’ Meeting February 16, 2012

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  1. Purchasing Directors’ Meeting February 16, 2012

  2. Agenda • Welcome Comments – Kelley Scott • Introductions – All • FACTS/SCRS Update – Christina Smith and Elwood McElhaney • Mobile Communication Services Contract – Jonathan Rakestraw • Office of Supplier Diversity Mentor-Protégé Program – Thad Fortune • MyFloridaMarketPlace Update – Danielle Kosberg • State Purchasing Analysis Process – Cliff Chroust • Hot topics - All

  3. FACTS/SCRS Update Department of Financial Services • Christina Smith, Director of Accounting and Auditing • Elwood McElhaney, Project Manager

  4. Mobile Communication Services Contract Jonathan Rakestraw Operations Management Consulting Manager Division of Telecommunications Jonathan.Rakestraw@dms.MyFlorida.com

  5. Mobile Communication Services Contract • AT&T Mobility (Contract No. DMS-1011-008A) • Sprint Solutions (Contract No. DMS-1011-008B) • Verizon Wireless (Contract No. DMS-1011-008C)

  6. DMS DivTel MCS – Customers Mobile Communication Services Contract • State agencies – • Eligible customers – • Local governments (cities and counties) • Water management districts • Educational institutions (schools, universities, and community colleges) • Non-profit organizations • Eligible for E-rate funding

  7. Mobile Communication Services Contract • Wednesday, February 29, 2012 at 9 a.m., Eastern time • Betty Easley Conference Center, Room 152 • 4075 Esplanade Way, Building 4075, Tallahassee • Seating is limited; please limit the number of people attending DMS DivTel MCS Kick-Off Meeting for CIOs

  8. Office of Supplier Diversity Mentor Protégé Program • The State of Florida's Mentor-Protégé Program is the first state-sponsored program of its type created to pair certified business enterprises with private corporations. • The purpose of this program is to contribute to Florida's economic growth by increasing opportunities, developing joint ventures and providing Florida's minority, women, and service disabled veteran businesses the necessary tools for success.

  9. Office of Supplier Diversity Mentor Protégé Program • The Mentor-Protégé Program enhances the capability of Florida's certified minority, women, and service disabled veteran businesses participation to compete more successfully for state government contracts. • The program also provides an avenue for Florida's certified minority, women, service disabled veteran businesses to achieve entrepreneurial success and contribute to the strength and vigor of the economy in Florida.

  10. Office of Supplier Diversity Mentor-Protégé Program Brainstorming • Opportunities for mentor businesses • Mentor and protégé businesses work together to develop new business development approaches based on proven business strategies • Previous relationships (mentor listed first below): • Office Depot and Magnetic Imaging Supplies Inc. • GTECH and Flamingo Graphics • Deloitte Consulting, LLP, and ISOCORP Inc. • Turner Construction and HZ Construction, Inc. • Office of Supplier Diversity has many interested protégé businesses • How can agencies help encourage mentor businesses?

  11. MyFloridaMarketPlace Update DFS W-9 Initiative Vendor Update MyFloridaMarketPlace vendor W-9 statistics as of Feb. 6 • 24,194 MyFloridaMarketPlace vendors have a valid W-9 on file • 88 percent of purchase orders created this fiscal year for vendors with valid W-9s • 92 percent of invoices were paid this fiscal year for vendors with valid W-9s

  12. MyFloridaMarketPlace Update MFMP Process for W-9 • The W-9 status is at the Federal Employee Identification Number (FEIN) level • MyFloridaMarketPlace receives a nightly batch from DFS that updates the Vendor Information Portal (VIP) • The next night VIP sends the updates to Buyer • W-9 status in MFMP is for informational purposes only • FLAIR will deny encumbered requisitions if the vendor does not have a valid W-9 on file • MFMP will display an error message referencing vendor status in FLAIR • Approved invoices will be returned to the invoice manager if the invoice fails processing in FLAIR due to a vendors invalid W-9. MFMP will display an error message referencing vendor status in FLAIR.

  13. MyFloridaMarketPlace Update Possible W-9 Status in MFMP: • No W-9 on File • Pending IRS TIN Matching • Failed IRS TIN Matching • Valid W-9 on File • B Notice Error • Passed IRS Tax Identification Number (TIN) Matching without W-9

  14. MyFloridaMarketPlace Update Creating Requisitions - Check that your selected vendor has a valid W-9 on file with DFS

  15. MyFloridaMarketPlace Update Creating Invoices – check vendor’s W-9 status

  16. MyFloridaMarketPlace Update MFMP reports available: • All open orders current fiscal year • All open orders previous fiscal year • All received orders current fiscal year • All received orders previous fiscal year

  17. MyFloridaMarketPlace Update Vendor Database Cleanup • Targeted for end of February • Based on four specified criteria (purchase order activity, FLAIR payment activity, vendor location updates, and state term contract status), MyFloridaMarketPlace will inactivate a vendor's location • If all the locations associated to a registration are inactivated, the registration also becomes inactive • MyFloridaMarketPlace processes updates as one set in VIP but will send in batches to downstream applications (MFMP Buyer, Analysis, FLAIR, MarketView) • Continue this yearly within the first two weeks of the fiscal year

  18. MyFloridaMarketPlace Update Require State Term Contract Number • Targeted for end of March • Based on selected method of procurement, MFMP 3.0 will require agencies to specify contact number when creating requisitions • Allows State Purchasing increased visibility of spend on contracts

  19. State Purchasing Training • Seminars: Tampa and Orlando • Trainer is Anne Rabon, MyFloridaMarketPlace Finance and Accounting Process Analyst • Visit our website for details and registrationhttp://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_buyers/myflorida_marketplace_toolkit/buyer_training_opportunities/statewide_training_sessions • Watch for additional MFMP 3.0 training webinars coming in March! • State term contract webinars • Learn about renewed and/or new contracts • Coming Feb. 21 – Ammunition and Less-Lethal Training Seminars / Contract Webinars

  20. State Purchasing Training • Developing a training focus group to look at certification and recertification • Four members from Procurement Process Improvement Project • Four members from Florida Professionals for Public Procurement

  21. STC Contract #518-020-10-1 Rental Vehicles Avis car rentals • Effective Feb. 7, 2012, contract allows unlimited mileage again • Effective July 1, 2012, State Purchasing authorized a 4.9 percent increase • When compared to consortia contracts, the July 1, 2012, rate is: • 8 percent lower on average on the state’s most common rentals (sub-compact, compact, mid-size) • At least14 percent lower on average on all state rentals • Department of Financial Services’ policy requires state agencies to rent compact vehicles • DFS requires justification for rental of anything larger than compact • Agencies can choose not to reimburse employees for rental of anything other than compact

  22. State Purchasing Analysis Process Introduction to the analysis process • What we have to work with • Vendors • Vendors are tracked by Federal Employee Identification Number (FEIN) • Vendors can have multiple FEINs for one name • Vendors can have multiple names on one FEIN • Total spend • FLAIR Fiscal Year 2011: $46,610,859,188.00 • MyFloridaMarketPlace Fiscal Year 2011: $ 1,750,205,060.90 • Total mapped spend • FLAIR Fiscal Year 2011: $ 6,038,560,067.99

  23. State Purchasing Analysis Process From $46 billion to $6 billion

  24. State Purchasing Analysis Process FLAIR Object Codes Mapped to Spend Cube - $6 Billion in Spend

  25. State Purchasing Analysis Process Consortia Contracts • Available sources • National Association of State Procurement Officials • Multi State Contracting Alliance • Minnesota Alliance for Pharmacy • Novation • Educational Institute Coop • US Communities • Houston Area Council Coop Purchasing • National Joint Powers Alliance • National Intergovernmental Purchasing Alliance

  26. State Purchasing Analysis Process Pipeline • 40 current contract actions • 20 new opportunities • Eight possible co-op / consortia opportunities • ITN comprise a majority of the remainder • Multiple roll-up opportunities

  27. State Purchasing Analysis Process Pipeline – Goods: New Activity

  28. State Purchasing Analysis Process Pipeline – Services:New Activity

  29. State Purchasing Analysis Process Pipeline – Information Technology: New Activity

  30. State Purchasing Analysis Process • Reach out to other agencies • Regarding spend and to better understand needs • Possible alternate contract sources • Use consortia as alternate contract sources • Address maverick spend • Increased marketing of existing state term contracts • Survey other eligible users, e.g., Florida local governments • Survey identified vendors

  31. Hot Topics Open Discussion

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