Purchasing Directors’ Meeting April 19, 2012

1. Purchasing Directors’ Meeting April 19, 2012

2. Agenda • Welcome comments – Kelly Loll • Introductions – All • FACTS update and financial consequences – Christina Smith • PCs and laptops contract – Kelly Loll • MyFloridaMarketPlace • 2011 customer survey results • System Release 9.4.0 • eInvoicing update • Catalog purchases • Customer Roundtable May 7 – we’ll discuss year-end! • New contracts section to the MFMP manual • PPIP survey results – Hal Houston • Hot topics - All

3. Introductions State Purchasing • Kevin Brown, Goods Group Category Manager • Marjorie Rubenstein, Information Technology / Telecommunications Group Category Manager • Wayne Mitchell, Governance Manager

4. FACTS Update & Financial Consequences Department of Financial Services • Christina Smith

5. State Term Contracts PCs and laptops • Update

6. MyFloridaMarketPlace Update • MyFloridaMarketPlace distributed the 2011 customer survey on November 15, 2011, to more than 1,400 purchasing, and finance and accounting customers • The survey questions covered topics about the MyFloridaMarketPlace program, including 15 additional questions related to the MFMP 3.0 upgrade • MyFloridaMarketPlace develops the survey distribution lists based on agencies’ proportionate use of the system • Each agency received at least one survey with the opportunity to respond with feedback • Approximate 30 percent response rate • 442 customers responding to the survey

7. MyFloridaMarketPlace Update • 90 percent overall satisfaction in 2011 • Compared to 2010 results: • Purchasing customer satisfaction decreased 7 percent • Finance and Accounting customer satisfaction decreased 6 percent • Decrease in overall satisfaction with communications

8. MyFloridaMarketPlace Update April 13, 2012, focus group meeting to discuss: • General consensus that timing so soon after MFMP 3.0 upgrade likely influenced survey responses • MFMP will work to increase finance and accounting-specific communication • MFMP and Customer Service Desk will provide more timely e-mail communication related to system-wide impacts • MFMP will leverage the newsfeed function on the MFMP Dashboard with bi-weekly messages • Continue to monitor system performance • Agencies, please let us know when you experience slow response time • MFMP will re-distribute information about using upgrade features related to labels, searches, etc. • Continue to work through known issues in a prioritized approach with bi-monthly system releases

9. MyFloridaMarketPlace Update System Release 9.4.0 – resolved 39 system issues • New – required state term contract or agency solicitation ID • Check or uncheck the “Visible To Suppliers” checkbox associated with a requisition’s comments • View invoice reconciliations created against an order on the purchase order’s orders tab • Update the “bill to address” on the change order of a received or invoiced requisition • MyFloridaMarketPlace sends e-mail notifications for expired FLAIR passwords, invalid FLAIR passwords, FLAIR passwords not on file, missing FLAIR user names, or revoked FLAIR user name

10. MyFloridaMarketPlace Update eInvoicing update • New eInvoicing vendors: • PRIDE • RESPECT of Florida • Dade Paper • Mac Papers • May 2012 target implementation: • AMD • Airgas • Sun Surgical • Patterson Dental  • Others in process: • Fisher Scientific

11. MyFloridaMarketPlace Update Catalog purchases • Today more catalog purchase orders result in electronic invoices • When agencies purchase from available MFMP catalogs, the vendor submits invoices electronically, instead of paper invoices • More than 30 vendors are eInvoicing through MFMP today • Find vendors currently eInvoicing and vendors with MFMP catalogs on the MFMP website at: http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_buyers/myflorida_marketplace_toolkit/mfmp_punchout_catalogs_einvoicing

12. MyFloridaMarketPlace Update Benefits of using catalogs for purchasing: • Saves time • Auto-populates fields • Vendor name and location • Item description • Unit price • Part number • Commodity code • State term contract number • Allows the vendor to automate the purchasing and invoicing process

13. MyFloridaMarketPlace Update Benefits of catalog purchases for finance and accounting: • Reduces paper flow and associated costs of printing and mailing • Prompt and accurate invoice processing • Reduces staff time of keying the invoice into MFMP (or FLAIR) • Reduces payment cycle time, including providing faster payment to vendors • Removes the need to scan and attach copy of the paper invoice • DFS does not require a paper copy for electronic invoices • Vendors can receive electronic notifications if the agency rejects an invoice

14. MyFloridaMarketPlace Update Additional information • Next Customer Roundtable meeting is May 7 • We will discuss year-end • Updated the “MFMP 3.0 Manual” with a new section related to contracts, starting on page 15 • Find the manual online:  MFMP 3.0 Manual

15. Procurement Process Improvement Project Stages Three and Four survey results Overview • The Department of Management Services released our second survey to state agencies in early February. The Stage Three and Four survey collected further information about each state agency’s typical solicitation development and posting process. • A big thank you to all individuals who participated in the survey process; we will be incorporating your feedback into the Procurement Process Improvement Project (PPIP) efforts moving forward. Below is a brief summary of our key findings: • Total survey responses received – 18 (25 percent response rate) • 16 agencies represented (42 percent of total agencies) • 94 percent of respondents feel they could benefit from standardized formal solicitation templates. • 81 percent of respondents do not have user guides or job aides available to assist them in preparing for supplier negotiations. • 75 percent of participants have a formal process in place to review a solicitation before it is released to vendors. • 25 percent of participants identified that negotiation strategies require formal review and approval before the event takes place. Key Survey Quote: “Formal solicitation standardization is highly recommended.”

16. Procurement Process Improvement Project • Current use of systems: • Respondents use the following systems during the solicitation process: • Vendor Bid System – 100 percent • Vendor Information Portal – 47 percent • E-mail, telephone, website – 18 percent • e Quote tool – 12 percent • Public Advertisement Challenges: • 46 percent of respondents feel that “lead time” is the most challenging aspect of public advertising in the solicitation process. (Considering multiple advertisement methods) • Hosting of the pre-bid conference: • 35 percent of participants responded that they host pre-bid conferences for at least half of all solicitations released. • 23 percent of responding agencies rarely/never host a pre-bid conference. For a typical solicitation, how much time (in weeks) does it take to draft / develop each solicitation type listed below? • Preparedness in the supplier negotiation process: • 69 percent of respondents believe they are adequately trained in the supplier negotiation process.

17. Procurement Process Improvement Project Stages Five, Six, and Seven survey results Overview • The Department of Management Services released its third survey to state agencies in mid-March. The Stage Five, Six, and Seven survey collected further information about each state agency’s evaluation, award, and contract process. • A big thank you to all individuals who participated in the survey process; we will be incorporating your feedback into the Procurement Process Improvement Project (PPIP) efforts moving forward. Below is a brief summary of our key findings: • Total survey responses received – 15 (21 percent response rate). • 15 agencies represented (39 percent of total agencies). • 86 percent of participants faced no vendor protests in the last year. • 73 percent of participants seldom required clarification from a vendor during the last year. • 67 percent of participants use a standard tabulation sheet to record vendor pricing and scoring. • 43 percent of participants use standard contract amendment templates. Key Survey Quote: “Top protest issues faced by my agency are specifications, scope of service, and intended award.”

18. Procurement Process Improvement Project • Solicitation review process: • 43 percent have a formal process in place for performing internal solicitation review. • 36 percent use an informal review process. • 21 percent do not use an internal solicitation review process. • Responsible and responsive: • 46 percent use a standard template/sheet to verify if a vendor is responsive and responsible. • 53 percent do not use a standard template. • Solicitation timing: • The average time for all participants to complete the process for each solicitation is as follows. • ITB: 2 weeks • RFP: 3.5 weeks • ITN: 6.5 weeks

19. Procurement Process Improvement Project Project management team changes • Hal Houston, gubernatorial fellow, joined us in August 2011 just as we were launching the Procurement Process Improvement Project • He has been instrumental in advancing this project • His fellowship ends next week and he ‘gets’ to begin studying for the Florida Bar exam. Thank you, Hal, and all the best to you!

20. Procurement Process Improvement Project Project management team changes • Melissa Hanifan, project manager, is leaving and relocating with her family • She has been instrumental in leading this project and all its components • Accenture will bring Jim Bard on board as the project manager • Wayne Mitchell, State Purchasing governance manager, is the project lead for the Department of Management Services Thank you, Melissa, and all the best to you and your family!

21. Hot Topics Open Discussion