PROCUREMENT POLICY COUNCIL

1. PROCUREMENTPOLICY COUNCIL July 30, 2008 9:00 am to Noon

2. PPC AGENDA • Update on ERP 6.0 – Patti Chapman • BMWBO – Kathryn Waters-Perez • Materials & Services Contract updates – Roxana Dietz & Walt Quade • Energy Update/Fuel Futures – Walt Quade • New ITQ process – Dennis Fellin • Procurement Handbook updates – Ellen Dunlap • Purchase Order and Contract Posting “Attachments” – Ellen Dunlap • SRM – Ellen Dunlap • Work Flow Changes • Bidding Issues • Bidding Changes • Doc Builder Changes • P-card Enabled • Supplier Enablement – Joan Kraft • RFP Playbook – Joan Kraft

3. PPC AGENDA • Legal – Pam Cross • Right-To-Know • Redaction Guidelines • Training – Jeff Mandel • Negotiations Course • SAP Navigation Course • New Certification courses – update • Questions & Answers • Appendix

4. IES

5. IES

6. IES

7. BMWBO

8. BMWBO

9. BMWBO

10. BMWBO

11. Materials Contracts SAP SRM SAP SAP SAP SAP SRM SRM SRM SRM SRM SAP SAP SAP SAP SAP SRM

12. Materials

13. Materials

14. SERVICES CONTRACTS: AWARDED OR RENEWED IN THE PAST 3 MONTHS

15. SERVICES CONTRACTS: AWARDED OR RENEWED IN THE PAST 3 MONTHS

16. SERVICES CONTRACTS: BID OR RENEW IN THE NEXT 6 MONTHS

17. New IT ITQ • Guiding Principles for New IT ITQ • IT ITQ Tiers • Notes on Contract Structure • Proposed Service Category Structure • Timeline

18. Guiding Principles for New IT ITQ • Optimized performance • Utilize Best value as evaluation method • Minimize Risk • Maximize Competition • More defined: Clarifying service categories • Narrow the qualification process • Better, more tangible information • Easier to Administer • Agency/DGS/OIT: Process standpoint • Timeliness (RFQ to PO) • Align with MBE-WBE goals

19. IT ITQ - Tier 1 • 0-$50,000 • Statement of work (model) • IT ITQ Ts & Cs • Allow for mixed T&M and deliverables – Use established rate card for T&M work. (T&M must meet or beat Staff Aug rates) • Agency makes selection • No Competitive solicitation required • A waiver is required from DGS if total expenditures are over $100, 000 with the same supplier in the same fiscal year, PO quantities are not considered. • T&M can not be greater than 40% of contract value

20. IT ITQ – Tier 2 • $50,000 - $250,000 • Expedited RFQ Process • Sent to all suppliers in category • Statement of work (model) • Allow for mixed T&M and deliverables - Use established rate card for T&M work. (T&M must meet or beat Staff Aug rates) • IT ITQ Ts & Cs • Team selects based on best value • T&M can not be greater than 40% of contract value

21. IT ITQ – Tier 3 • Greater than $250,000 • Standard RFQ process • Statement of work (model) • Agencies must request DGS delegation authority (Same as RFP requirement) • Uses recommended percentage allocations • Cost, DB, Technical (Same as RFP requirement) • Minimum Point Allocations: • Cost: 30%, MBE/WBE: 20% • Technical provision • Sent to all suppliers in category • Statement of work (model) • IT ITQ Ts & Cs • Allow for mixed T&M and deliverables - Use established rate card for T&M work (T&M must meet or beat Staff Aug rates) • T&M can not exceed 40% of total contract value. • Team selects based on best value

22. IT ITQ Notes on Contract Structure • T&M can be part of the deliverables contract when the following conditions apply: • Updating and maintaining current software, in support of the contract • Work will be needed for varying projects in support of the contract that have no definitive timetable or deliverable that can be realistically projected. • The use of alternative maintenance or development in support of the contract • Allow use of p-card under $5000. • Allow use of Auto POs • Agencies to rate supplier performance on each project,. • Continue to allow “piggybacking” under the new IT ITQ based on the continuing inquiries received from local public procurement units • Add new service categories guided by changing technology and agency business needs • Retain Open enrollment & add new categories as technology and business needs change

23. IT ITQ Proposed Service Category Structure • Cabling Services • COTS Software Services • MOTS Software Services • Software Maintenance • If the company is listed on Dell/ASAP contract the company automatically added to this category. This category is for regular annual maintenance fees. POs to be payable to Dell/ASAP. • IT Training – Classroom/Non-Classroom

24. IT ITQ Proposed Service Category Structure • Consulting Services – Help Desk • Consulting Services – IT Security Assessments • Consulting Services – Telecom & Network Services • Consulting Services – Project Management • Consulting Services – IV&V • Consulting Services – Radio Services • Consulting Services (IT) – General • Software Development Services? • Specialized Services – SAP • Specialized Services – JAVA • Specialized Services - .NET • Specialized Services – GIS • Integrator, IT – Suppliers providing hardware and/or software and project management for installations.

25. IT ITQ Timeline

26. Contract Attachments • A Contract Attachment Listing is in development by DGS for: • RFP (Paper Submittal) • RFP (Document Builder) • RFQ (Document Builder) • IFB Contract/Purchase Order Attachments • IFB Attachments (Document Builder) • PO Off Statewide Contract • IT-ITQ • The listing describes what files need to be attached in: • SRM • eMarketplace • Internal File

27. Search results will display. Click on the Title Heading to pull up specific Chapter. Procurement Handbook Updates Search Functionality • User MUST log in to Portal to access search functionality. • Enter keyword(s) into search field and then press the GO button.

28. Procurement Handbook Updates Part 1 Chapter 7 – Thresholds & Delegations • A new Section B was added which reinstates the thresholds for specific procurements. • For the repair, maintenance, modification, or calibration of equipment services to be performed by, and repair parts supplied by, the manufacturer of the equipment or by the manufacturer's authorized dealer, agencies are authorized to procure, on a no-bid basis, up to $10,000. • For software license maintenance agreements and extensions of software licenses, agencies are authorized to procure, on a no-bid basis, up to $10,000. • For agency leasehold construction improvements, agencies are authorized to procure, on a no-bid basis, up to $10,000. • There were no substantive changes made to this section.  Changes were made for organization, consistency and clarity.  Part 2 Chapter 16 – Trade In Equipment • Guidelines have been specified for the trade in of equipment. Part 2 Chapter 18 - Vehicles Amending Sole Source Chapters in Part 1, 2, 3 & 4 • When a purchase order or contract is issued to the supplier, the agency will send a letter to the supplier, along with reporting forms, reminding the supplier of its responsibility to file a report of political contributions exceeding $1,000 in the aggregate with the Secretary of the Commonwealth before February 15.

29. Bid Workflow Survey Results • There were 38 complete responses to the Bid Workflow Survey. • 28 Agencies were represented. • 63% of users stated that Bid Workflow is working for their Agency. • Even though 37% stated that workflowdid not work for their agency…only 3 agencies out of that total wanted to change the workflow on bidsfor their agency. • Labor & Industry • SERS • Fish & Boat • Pilots are pending the results of the Financial Transformation Project.

30. SRM Bidding Issues • Agencies are encouraged to provide out reach to the supplier community before a bid goes out on the street. • Agencies should determine whether suppliers are interested in doing business with the Commonwealth. • Add suppliers name to the Bidder/Bid tabs in order to check PA Supplier Portal registration. • Agencies can provide bidder training guides to suppliers. • Public Advertising Supplier • At least 1 (one) supplier’s name MUST be added to the bidder/bid tab for a public bid. • Agencies can use the dummy Public Advertising Supplier 815901. • Or they can add anysuppliers SAP Vendor Numbers to verify supplier is registeredin SRM.

31. SRM Sample Bid Information Good example of text to assist the supplier while bidding. IMPORTANT BID INFORMATION 1. DOCUMENT(S) TO BE RETURNED: THE FOLLOWING DOCUMENTS MUST BE RETURNED WITH YOUR INVITATION TO BID RESPONSE 6100005387; MBE/WBE FORM AND APPENDIX A:FEE/COST SUMMARY. PLEASE NOTE THAT YOU MUST MEET INFORMATION LISTED IN THE STATEMENT OF WORK UNDER "QUALIFING INFORMATION" IN THE ATTACHMENTS BELOW IN ORDER TO BE CONSIDERED FOR THIS IFB. YOU MAY REFER TO THE SRM BIDDING REFERENCE GUIDE ON THE SUPPLIER PORTAL AT WWW.PASUPPLIERPORTAL.STATE.PA.US FOR BIDDING INSTRUCTIONS. PLEASE NOTE: PLEASE REMEMBER TO TYPE YOUR NAME AND TITLE IN THE COMMENT SPACE WHEN ANSWERING NUMBER 28 (ATTRIBUTES QUESTION) YOU WILL NEED TO ATTACH THE COMPLETED DOCUMENT(S) TO YOUR BID RESPONSE USING THE FOLLOWING INSTRUCTIONS: 1. SELECT THE MY NOTES LINK UNDER THE GENERAL DATA TAB. 2. NOTE: THE MY NOTES LINK CONTAINS AN AREA FOR YOU TO INSERT ANY COMMENTS ASSOCIATED WITH YOUR RESPONSE. ENTER YOU REMARKS IN THEBIDDER'S NOTE TEXTBOX. 3. SELECT THE BROWSE BUTTON IN THE ATTACHMENTS SECTION OF THE SCREEN. 4 LOCATE THE COMPLETED DOCUMENT YOU SAVED TO YOUR DESKTOP (OR OTHER ELECTRONIC FOLDER). 5. SELECT OPEN AND THE DOCUMENT WILL AUTOMATICALLY POPULATE THE PATH FIELD. 6. SELECT ADD. (YOU CAN ONLY ATTACH ONE DOCUMENT AT A TIME). 7. PLEASE MAKE SURE YOU PUT YOUR PRICES ON THE APPENDIX A/FEE COST SUMMARY AND IN SRM UNDER ITEM DATA FOR EACH OF THE LINE ITEMS LISTED. (PLEASE FOLLOW BIDDING INSTRUCTIONS ON THE SUPPLIER PORTAL). IF YOU HAVE ANY QUESTIONS PLEASE CONTACT: WANDA BOWERS COMMODITY SPECIALIST 717-346-3840 717-783-6241 WBOWERS@STATE.PA.US

32. SRM Bid Status • There are four areas of identification provided to suppliers to determine if their bid was submitted. They are: • Pop Up Window Box Message which displays when bid has been first submitted. • General Data Tab> Basic Data> Bid Status when the bid is open. • Bid Status field in the search result area. • E-mail notification.

33. SRM Bidding Changes • A tip has been included to the Line Item Tab to remind suppliers to Check their bid before submitting. • The Submit button will be grayed out until the “Check” is performed. • After Check has been performed, user can submit the bid and the green message indicator will display the status as submitted. • A soft message now displays the price per the unit of measure for which the supplier has submitted. • Hard stop messages: • Can not be changed by supplier • Location • Incoterm • Payment Terms

34. SRM Updates • The Upload and Download buttons at the top of suppliers bidding screen have been removed. • Procurement’s Business Process Team is currently working to redesign the PA Supplier Portal in the areas of registration and bidding. The restructuring will focus on the suppliers perspective. The goal is to: • Lessen the required steps. • Make site more user friendly and intuitive. • Ensure clear and consistent text throughout. • DGS in conjunction with IES is developing a pocket checklist for the suppliers which will list all the steps a supplier has to complete to submit a bid successfully. • IES is working on functionality to allow suppliers to reset their passwords. Functionality is in development. • IES is also working on the e-Alert functionality within the PA Supplier Portal. • Training Division is working on developing an End User Procedure (EUP) for the 902 partner.

35. Document Builder Word Document to Doc. Bldr. • It is very important to ensure that all non-html tags are removed before pasting any text into Doc. Bldr. • There is a utility provided by Microsoft which allows users to FILTER any HTML that may have been created by MSWord. • Open MS Word document • Go to menu File> Save as Web Page • Specify a new file name and in the “Save as type” option, set it to: Web Page, FILTERED (html, htm.) • Click on the Save button. • Now open the file and copy the contents to paste into the Document Builder editor.

36. eMarketplace P-Card Enabled • In eMarketplace when searching for contracts, users can determine if a contract is P-card Enabled by looking for a check in the P-Card indicator. • Go to http://www.emarketplace.state.pa.us/> Search Contracts> and scroll over to the right-hand side. Non P-Card Enabled in SRM • Suppliers that accept P-Card, but are not Enabled in SRM, will not be checked. • In development is a request to add a drop down menu which allow you to choose P-Card Enabled, P-Card Accepted or Both.

37. RFP Playbook Purpose • Provide step by step guidance and procedures on the RFP process for DGS and Agencies • Assist end users in walking through the process • Enabling Tool • Includes templates Clarifies Roles & Responsibilities • Agency • DGS BOP Director • Issuing Officer • Evaluation Committee • Legal • BMWBO • Negotiating Team Guidance Only • Not replacing policy in Procurement Handbook • Not meant to supersede Procurement Code or DGS Procurement Handbook • Noncompliance with this playbook shall not result in the disapproval of the document, rejection of the proposals or cancellation of the RFP.

38. RFP Process Map

39. Request for Delegation Timeline templates Confidentiality Statement Statement of Work Guide RFP Scoring Guide Preproposal Conference Guide Requirements Responsive checklist Notice of Selection for Contract Negotiations Master Scoring Guide Notice of Non-Selection Workflow Approval eMarketplace Web site Request to Advertise Instructions Debriefing template Domestic Workforce Utilization Certification Evaluation of Contractor Performance And more… RFP Playbook Attachments

40. RFP Scoring Category Guide

41. Proposed RFP Scoring Flow Chart Sample Technical Scoring Sheet

42. Feedback/Revisions Formatting Add “Review of Proposals” section Defined Responsibility Clarify Process Map Reorder Q&A posting on website Added “Deliverable” to SOW checklist Removed bid room language Incorporated evaluation process Added Comptroller (as needed) to paper approval process RFP Playbook Feedback Primary Sources • DGS Legal • DPW • LECS Comptroller • State BFO • PCCD • PHHS • DOT • BMWBO • DOH • PSP Agency Focus Group • Invited agencies are: DPW, DOC, L&I, PDE, DOH, DOT, DEP • Will reconvene on 8/11/08 to discuss the document and gather feedback.

43. RFP Playbook Going Forward To be Updated Periodically • Changes in statutes • Court decisions • Further clarification • New practices • Changes in policy Procurement Handbook Updates • Technical scoring • Comptroller participation • Further define roles and responsibilities • Annex Training • Training Division developing new RFP course materials. Location • www.dgs.state.pa.us/procurement

44. Supplier Enablement Schaedler Yesco Distributors Now available as a Punch Out Catalog. *They are not an XML supplier.* Evaluated Receipt Settlement Kickoff with Ennis Paint & Todd Heller Inc. Estimated Go Live of September 1st. Reminder: XML suppliers rely on timely Goods Receipts.

45. Overview of “New” RTK Law • Contracts executed after July 1, 2008, for $5,000 or more involving real or personal property, or for personal services are required to be sent to Treasury. • This includes, but is not limited to: • DGS Statewide or Agency Contracts • Standalone Purchase Orders • MOUs and IGAs • Grant agreements • Not included: • POs issued against statewide or agency contracts

46. Overview of “New” RTK Law All contracts provided to Treasury under the new law shall have at least the following information redacted from them: • Taxpayer identification numbers (EIN’s and SSN’s) • HIPPA protected information • Personal or entity financial information (such as bank or other financial account numbers, check routing numbers, and other similar data that might reasonably create risks to the security of the account owner)

47. Overview of “New” RTK Law • When uploading a contract to Treasury’s website, an agency can notify Treasury that the contract is fully redacted and that Treasury will be authorized to make the contract available on its website without further notification to or direction from the agency. • Agency Counsel will be responsible for reviewing all documents which apply under the law and identifying what needs to be redacted.

48. What is required for “full” redaction? • Taxpayer Identification Numbers: EINs and Social Security Numbers. • Financial Information requested in an IFB or RFP to demonstrate the bidder’s economic capability. • Personal Information: SSN; driver license number; employee or other identification number; home, cellular and personal telephone numbers; personal email addresses; and family information. • Personal Financial Information: Credit, charge or debit card information; bank account information; bank, credit or financial statements; account or PIN numbers. • Protected Health Information (PHI): Information related to the physical or mental condition of an individual, the provision of health care to an individual, or the payment for the provision of health care to an individual that identifies or could be used to identify the individual. • Confidential Proprietary Information: Commercial or financial information which is privileged or confidential which if disclosed would cause harm to the competitive position of the person who submitted the information. * • Trade Secrets: Information that is of independent economic value because it is not generally known and is under reasonable efforts to maintain its secrecy. * * The entity submitting confidential proprietary information or trade secrets must include with their submission a signed written statement that the document or record contains a trade secret or confidential proprietary information.

49. Which contract documents need to be uploaded? • Contracts/POs • With the exception of text fields, Contract/PO Output out of SAP/SRM already complies with full redaction requirements • Agencies should download the output document, save it to their desktop and upload it to the Treasury site (along with the required summary information) • Attachments • SAP is unable to determine if attachments have been redacted or not • Users should review all attachments associated with a contract/purchase order, redact as necessary and then upload to the Treasury site

50. Contract Summaries • The contracts shall be accompanied by a summary that contains the following information: • Date of execution • Amount of the contract • Beginning date of the contract • End date of the contract • Name of the agency entering into the contract • The name of all contractors executing the contract • Subject matter of the contract • Type [‘Contract’, ‘Purchase Order’, or ‘Amendment’] • Parent Contract Number • Agency Contract Number