Florida State Term Contract (STC) Training

Florida State Term Contract (STC) Training
October 21, 2010

Course Objective Course Objective
The purchasing departments of Florida’s agencies, local governments, and educational institutions are often asked by their entities to do more with less. The Department of Management Services (DMS)' Division of State Purchasing provides the opportunity for entities to leverage statewide agreements that have been negotiated with the consideration of providing the best value and that are easy to use . We encourage you to review the benefits of these contracts and the savings they can provide. Contract savings are less than three clicks away… -Step 1: Log on to -Step 2: Click on ‘State Purchasing’ -Step 3: Click on ‘State Contracts, Agreements, and Price Lists’ -Step 4: Begin saving! Course Objective Course Objective 10/21/10

Agenda Agenda Florida Purchasing Overview PRIDE / RESPECT of Florida
State Term Contracts (STC) Alternate Contract Sources (ACS) State Purchasing Agreements (SPA) Website Redesign Resources 10/21/10

State Purchasing Overview
The Division of State Purchasing strives to develop and implement sound procurement practices throughout the state. The Division of State Purchasing also promotes fair and open competition in the state's procurement process. The Division of State Purchasing maintains and develops state term contracts (STC) and statewide agreements. STC are mandatory for state agencies but optional for other eligible users (OEUs) -Universities, cities, counties, water management districts, etc. Under State Purchasing, the MyFloridaMarketPlace (MFMP) system is the online procurement system for agency buyers and state vendors. 10/21/10

Division of State Purchasing
Currently State Purchasing administers several different types of agreements; today we’ll address the following types: PRIDE / RESPECT of Florida State Term Contracts (STC) Alternate Contract Sources (ACS) State Purchasing Agreements (SPA) 10/21/10

Where to find STC, ACS, SPA
Exit Presentation to view STC website 10/21/10

Florida Climate-Friendly Preferred Products List
Government purchasers are encouraged to use the Florida Climate-Friendly Preferred Products List (FCFPPL ) to find potential green products . FCFPPL contains more than 10,000 products that current state term contract vendors indicate meet one or more of the Florida approved green product labels / standards. New green reporting requirements for state agencies effective July 1, 2010: Agencies must track green “spend” MFMP can analyze green and recycled material purchases 10/21/10

State Term Contracts (STC) Alternate Contract Sources (ACS) State Purchasing Agreements (SPA) Website redesign Resources 10/21/10

PRIDE Prison Rehabilitative Industries and Diversified Enterprise
Per Sections (2) and (4), Florida Statutes (F.S.), similar products or services of comparable price or quality found necessary for use by any state agency may not be purchased from any source other than PRIDE. Per Chapter 283, F.S., competition is not required with the exception of printing services. PRIDE offers a variety of products from furniture to maintenance supplies: The state supports and encourages the use of the Florida correctional work program, the Prison Rehabilitative Industries and Diversified Enterprise or PRIDE. Section (2) and (4), F.S., allows for purchases of most PRIDE products and services without competition. PRIDE offers a variety of commodities, including boxes, dental supplies, furniture, and sanitary supplies. There is one exception to services provided by PRIDE – printing which is open to competition. This means that, if the total amount for printing is more than $2,500, you must go through the informal quoting process. If the printing will cost more than $35,000, it requires a formal solicitation. Additional information about PRIDE and the products they offer is available on the PRIDE web site and for MFMP users are available through line item catalogs in MFMP. 10/21/10

RESPECT of Florida Per Section , F.S., similar commodities or services of comparable price or quality found necessary for use by any state agency may not be purchased from any source other than RESPECT. RESPECT works with non-profit organizations around the state who employ persons with disabilities in the production of products and services. Exempt from the competitive process (no quotes or solicitations necessary). Examples of items provided under R: Office supplies Janitorial services Marker boards Temporary services in the Tampa / St. Petersburg area Section , F.S., requires the state to use RESPECT of Florida, if they offer the commodities/services needed. RESPECT of Florida is the central nonprofit agency of the state of Florida. RESPECT works with nonprofit organizations around the state of Florida who employ persons with disabilities in the production of products and services. RESPECT’s purpose is to ensure a constant market for these products and services to state and local government agencies. Purchasing from RESPECT is exempt from the competitive process. Some reasons you may not use RESPECT are time, specifications, minimum order requirements, and availability. Items provided by RESPECT include maintenance supplies, white marker boards, binder clips, bulletin boards, pens, and latex exam gloves. 10/21/10

State Term Contracts (STC)
State term contracts (STC) are contracts between the Division of State Purchasing (State of Florida) and vendors for state agencies and other eligible users (OEUs), leveraging the state’s collective spend to obtain lower costs for goods and services. Use of STC is mandatory for state agencies, in accordance with Section , F.S. OEUs include those local government entities identified in Rule 60A-1.005, F.A.C. STC meet the competitive solicitation requirements of Section , F.S. Purchasing off Florida contracts and agreements saves you time, money and effort when purchasing products and services. In accordance with Rule 60A-1.044, F.A.C., state contracts are term contracts executed by the DMS for mandatory use by most state agencies and optional use for local governments. DMS collects data to determine the need for state contracts according to the combined spending of all agencies. Once they identify a need, DMS issues a formal solicitation and a state contract results. Use of state contracts is mandatory for most state agencies. However, there are instances where there is a minimum order requirement. However, these minimum order amounts are not to be used to circumvent the procurement process. Competition is not required when using state contracts unless a Request for Quote (RFQ) requirement is specified in the contract. A RFQ is an oral or a written request for written pricing or service information from a contractor for products available under that state contract. We are required to maintain written records of oral and written requests, as well as records of quotes received. These quotes are informal and need not be received or posted publicly. 10/21/10

STC Types: Single vendor with fixed price or discount Usually the lowest priced contract, simple and straightforward to use Multiple award contract Emphasis on flexibility/ choice Establishes competitive ceiling price with opportunity to negotiate lower price Multiple award contract with RFQ process Requires quotes from at least three STC vendors to ensure best value Each state term contract is different depending on the good or service that is being procured however there are several common types of STC. Single vendor with fixed price or discount This is the most simple type with only one vendor and either a fixed price or a fixed percentage discount off of MSRP. Examples include Office Paper or Envelopes contracts. Multiple award contract This type allows the customer more flexibility in vendor selection while still meeting competitive requirements. Generally a maximum ceiling price is negotiated and customers are encouraged to further negotiate with vendors, depending on their particular project, to achieve a lower price. Examples include Carpet and Flooring Materials and Network Infrastructure contracts. Multiple award contract with RFQ process This type of contract has multiple vendors for more flexibility in vendor selection but does have some informal quoting requirements between vendors on the contract. Examples include IT Consulting and Management Consulting contracts. 10/21/10

There are more than 60 STC, covering multiple categories including: Energy & Transportation Institutional Furnishings &Supplies Law Enforcement Supplies Facility Services & Supplies Information Technology Communications Office Equipment &Services Insurance Consulting &Staffing Services Emergency Operations Supplies & Services All contracts are listed online 10/21/10

Today we’ll discuss some of the most popular STC, including: Information Technology (IT) consulting services Network Infrastructure Bulk Fuel PCs, Laptops and Monitors Temporary Staffing services Insurance programs Tires Paper Office furniture STC Spotlight Office Consumables All contracts are listed online 10/21/10

STC: IT Consulting Services
This contract includes consulting services less than $10,000,000 in the following areas: Project Area 1 – Analysis and Design: Business case analysis (e.g. costs/benefit and risk analysis) Performance measurements Project Area 2 – Development and Integration: System and software development Modernization of legacy systems to Web applications Project Area 3 – Operational and Support: Database generation and database management Disaster recovery services Project Area 4 – Simple Staff Augmentation All work produced under this contract becomes the property of the entity. The current contract expires August 31, 2012. Project Area 1 – Analysis and Design Project Area 1 encompasses IT Planning, Studies, and Assessment to assist organizations in both information technology capital planning and assessment including, but not limited to, the following: Business case analysis (e.g. costs/benefit and risk analysis) Performance measurements Independent validation and verification of systems development Estimating return on investment and/or earned value Compliance with State interoperability standards as defined by the Agency for Enterprise Information Technology (AEIT). Project Area 2 – Development and Integration The services offered under this area include project management of systems development that organizations consider important. The services include, but are not limited to, the following: Management of systems integration System and software development Modernization of legacy systems to web enabled applications Software development, customization of commercial-off-the-shelf (COTS) software packages, and migration to modular applications Development and integration internet/intranet/web applications Development and integration of security, firewalls, and critical infrastructures Development, integration and implementation of the following: Networks (e.g. LAN/WAN/MAN/ VoIP) Data warehousing Electronic Commerce/Electronic Data interchange Groupware Next generation internet Client/Server computing Workflow and imaging Project Area 3 – Operational and Support The services offered under this area include a broad range of IT related to Operations and Support Services. Anticipated services include, but are not limited to, the following: Management and support of Local Area Networks (LANs), Metropolitan Area Networks (MANs), Wide Area Networks (WANs), and VoIP Networks Computer systems administration, management and maintenance Data entry, data storage, data retrieval, and electronic records management Specialized workstation (i. e. CAD, CAD/CV, GIS) support Computer equipment maintenance (both on-going and on-call) Desktop support Production Support Database generation and database management Data and/or media management Document Imaging Services Disaster Recovery Services Orientation and training Information center/help desk For Project Area 4, simple staff augmentation efforts, the customer may issue the Task Order to a contractor awarded in Project Areas 1, 2, 3, and/or 4. 10/21/10

STC: IT Consulting Services
When issuing purchase orders to vendors under this contract, entities may negotiate additional terms and conditions. Below are the RFQ requirements under this contract: Purchase Amount Quoting Requirements $0 – $14,999 Agency adheres to internal policies and procedures $15,000 - $2,000,000 Agency solicits at least three quotes among contract vendors of its choice $2,000,001 - $5,000,000 Agency selects best response to statement of work issued to at least 10 contract vendors of its choice $5,000,001 - $10,000,000 Agency selects best proposal submitted upon notification of all contract vendors within the appropriate project area(s) Over $10,000,000 Agency must issue competitive solicitation; cannot purchase via the state term contract Additional agency terms and conditions cannot be in conflict with the terms and conditions contained in the STC Pricing is listed as a hourly rate for consulting services for each area with five different price points based on the experience level of the consultant posted on the STC website Prices listed are negotiated on a per unit basis; if agencies/OEU’s are purchasing large quantities, they are encouraged to negotiate with the vendor for lower pricing (however the prices cannot exceed originally negotiated prices) 10/21/10

STC: Network Infrastructure
Items were awarded based on eligible brands and each manufacturer has approved resellers. These resellers are available on a spreadsheet under the ordering instructions for each vendor listed on the STC website. The five categories available on this contract are below: The current contract expires September 7, 2011. Category Description 1 Servers, Terminals, Thin Clients 2 LAN / WAN Infrastructure Equipment 3 Firewalls, VPNs 4 Storage, Tape, Virtual Tape Infrastructure 5 UPS, Surge Suppression, Batteries Items available on other STC are not available through this contract including PC’s, laptops, and monitors; software (unless specifically to operate the network infrastructure equipment); copiers, printers, etc. Some vendors have leasing options available 10/21/10

STC: Network Infrastructure
Pricing is a percentage off MSRP discount by vendor with price sheets posted on each vendor’s state website. There are a total of 22 vendors awarded across all categories. Below is a sample of Category One vendors: Average Discounts American Power Conversion 20% Cisco 32% EMC 50% IBM 33% Juniper 22% 10/21/10

STC: Bulk Fuel, Gasoline, Diesel
Four categories of fuel: E-10 (87 octane) Biodiesel Ultra low sulfur diesel Ultra low sulfur diesel, red-dye Florida counties are divided into four districts: north, west, central, south. Each county lists up to three awards per fuel category to assist in any supply emergencies. Prices for fuel (gasoline and diesel) are determined using the Data Transmission Network (DTN) FastTracks average price on the day of delivery from the closest terminal to the delivery location. The current contract expires June 30, 2014. 10/21/10

STC: Bulk Fuel, Gasoline, Diesel
- Substantial savings - Price sheets are posted online daily. The daily Fast Tracks Price Sheet posted on the STC website 10/21/10

STC: PCs, Laptops and Monitors
Items on this STC meet green product specifications. Pricing is a percentage discount off of the MSRP per vendor. Items on this contract are ordered directly from the manufacturer. Apple products are available on 250-WSCA-10-ACS. Also now available: Ruggedized, semi-ruggedized (tough) Laptops Tablet computers Ultra-mobile computers Green products specifications per Section (1), F.S. 10/21/10

Desktops / Workstations
STC: PCs, Laptops and Monitors STC awarded vendors offer deep discounts off of MSRP: The current contract expires February 28, 2011. Item Description Dell Discount Gateway Discount HP Discount Lenovo Discount Desktops / Workstations 45.05% 40.00% 50.00% Laptops 35.00% Monitors 22.90% 20.00% 10/21/10

STC: Temporary Staffing Services
This contract includes temporary employment staffing in a variety of areas: Accountants and auditors Arbitrators and mediators Dietitians and nutritionists Janitor / cleaner Market research analyst The contractor may conduct background checks on employees as necessary for an additional negotiated fee. The current contract expires December 17, 2011. Prices are not inclusive of travel costs. Travel costs must be approved by the agency and invoiced separately and must be in accordance with Chapter 112, F.S. Cost of living adjustment may be applied to temporary employees in accordance with the increase provided to state workers 10/21/10

STC: Temporary Staffing Services
For the purposes of this contract, the State is broken into 17 regions by county Pricing is an hourly rate per region for each area. Price sheets are posted on the STC website. 10/21/10

Insurance Coverage Programs
Provides a method of insuring individuals and items that are not eligible for coverage through the state risk management trust fund. While it is not mandatory to participate in these programs, a state agency is not able to purchase their own insurance. All policies available for group participation are listed and detailed on DMS’ website. Examples include: Accidental Death and Dismemberment; Boiler and Machinery; Crime; Fine Art; Electronic Data Processing Equipment; Auto Comprehensive and Collision; and Miscellaneous Property If your organization requires coverage that lies outside the scope of those policies readily available, please contact DMS. Insurance is purchased through DMS for the agency and the agency reimburses DMS for the cost of the policy 10/21/10

STC: Tires Single award to Goodyear.
Product pricing is a discount off of book price and additional services are available at fixed prices (disposal, mounting, valves, etc). Recent benchmarking activities show that this contract offers the best prices for Goodyear products in the state. Annual sales average $30 million Order/payment options include bulk delivery, blanket purchase orders, and PCard. Detailed price lists and authorized dealer lists are available on the STC Web page. The current contract expires February 29, 2012. 10/21/10

STC: Tires Discount offered
Commodity Code No ; Tires, Off-road, Bias 20% Commodity Code No ; Tires, Off-road, Radial Commodity Code No ; Tires, Automobile, Radial, Standard Passenger 52% Commodity Code No ; Tires, Police Pursuit And Emergency High Speed, Radial Commodity Code No ; Tires, Light Truck, Bias (Includes Off-road Applications) 55% Commodity Code No ; Tires, Light Truck, Radial (Includes Off-road Applications) 51% Commodity Code No ; Tires, Light Truck, Steel Casing (Includes Off-road Applications) 40% Commodity Code No ; Tires, Medium Truck, Radial 48% 10/21/10

STC: Paper: Office, Virgin and Recycled Content
Contract pricing includes both set prices (indicated on the price sheets located on the STC website) and price breaks (depending on carton quantities). Recent benchmarking activities indicate these are the best bulk paper prices in the state. Contract pricing includes the price of shipping / handling, and freight but inside delivery is a separate charge per carton. 10 case minimum order. Some contract products are listed on the FCFPPL. Current contract expires March 25, 2013. 10/21/10

STC: Furniture: Office and Files
Products include workstations, desks, chairs, files, conference and presentation furniture, dispatch / 911 furniture, movable walls, and additional items. Space planning services are also available under this contract. This contract does not include artwork, decorative lamps and accessories, fireproof files or used/refurbished furniture of any kind. All awarded contractors (57) offer a wide variety of products and price ranges to meet any project needs. Product pricing is presented as a discount off list price and mirrors GSA pricing. Florida is only one of four states to receive these discounts. Contract sales in the last fiscal year were more than $66 million and represent use by all levels of government and education. 10/21/10

STC: Furniture: Office and Files
Contract offers a minimum five year warranty. This is often better than standard product warranties and GSA terms. Items are listed on the FCFPPL. Representation of CBE and local service providers. Some contractors encourage order placement through local providers, thus allowing CBE spending credit and additional negotiation of service prices. The current contract expires March 1, 2011. 10/21/10

STC Spotlight: Office/Educational Consumables
This new STC provides office and educational consumables: Toner Computer paper Non-printed envelopes Office supplies Art supplies Office equipment IT peripherals Cost savings range from an average of 4 percent up to an overall 13 percent. Awarded vendors include: Gulf Coast Office Products Office Depot Staples 10/21/10

STC Spotlight: Office/Educational Consumables
Each vendor maintains Punchout catalogs in MFMP. Third-party auditors for each vendor ensures pricing accuracy. Green/recycled products are available from each vendor. Potential for volume discounts. Other benefits include: Each vendor has a strong presence in Florida. Two of the vendors are nationwide. Staples and Gulf Coast Products do not have a minimum order amount. Office Depot offers additional promotional opportunities. 10/21/10

Alternate Contract Sources (ACS)
ACS are similar to STC, but not mandatory – i.e., optional use for state entities and OEUs. If an agency’s competitively solicited contract is cost-effective and in the best interest of the state, DMS may approve the use of the contract for a specific agency upon request. DMS also may approve a competitively solicited contract as an enterprise-wide ACS for use by all agencies if the contract is cost-effective and in the best interest of the state. Alternate contract sources for commodities and services are available for purchase by state agencies, in accordance with Rule 60A-1.047, F.A.C. Some ACS are enterprise ACS which are intended for all agencies and OEU’s to use while some are specifically requested by an agency for that agency to use. Agencies may request permission from DMS to purchase commodities or services from contracts competitively established by other government entities. All such requests must be forwarded to the State Purchasing for review and approval. Alternate contract sources are similar to state contracts, but are not mandatory to use. If DMS determines that the agency’s alternate contract source request is cost-effective and in the best interest of the state, they will approve the use of the contract. DMS reserves the right to approve the contract for a single transaction or multiple transactions. DMS maintains a list on their website of all current, enterprise alternate contract sources. 10/21/10

Alternate Contract Sources (ACS)
Below are some examples of current ACS agreements: WSCA Sprint/Nextel Misc. IT equipment MRO Industrial Supplies U.S. Communities Technology Products and Services Food Services GSA Schedule 70 ( IT) Schedule 84 ( Emergency Mgmt and Facilities) Agencies can only buy items from ACS that are not currently on a STC! 10/21/10

ACS Spotlight: U.S. Communities’ Food Services
The Food Services STC includes the purchase and delivery of a wide variety of food products: Fresh, frozen, canned, perishable goods Powered items Bakery items Dairy, produce and meats To date, meal contract savings average more than 13 percent per diem, per person. Eligible users can establish and maintain their own master product listing with the vendor as well as take advantage of the Florida Department of Corrections' master product list of more than 200 items. 10/21/10

State Purchasing Agreement (SPA)
Use of these agreements are optional and limited to expenditures not to exceed Category Two ($35,000) . Negotiated per agency request. Conducted through the MFMP eQuote tool. Current SPA include: Recycling Services, Spent Lamps, Proper Disposal of End of Life Ballasts and Batteries Under authority of Sections (1)(a) and (2)(a), F.S., the purpose of a state purchasing agreement (SPA) is to establish the terms and conditions for the sale and purchase of commodities or services between the vendor and the state of Florida. The use of a SPA is optional and these agreements do not establish a vendor as the exclusive source for the services/commodities needed. SPAs are requested by agencies depending on their individual need and are good for one fiscal year. The state has a variety of SPA agreements for commodities/services and additional quotes are not required. Need for a SPA agreement is initiated at the program level, and all requests must come through State Purchasing for approval and execution. Once the request has been sent to DMS, an e-Quote is created in MFMP to solicit quotes from various vendors. DMS will evaluate responses, seek requestor input as needed, negotiate with respondents as needed, and award the purchase to the company with the most advantageous offer to assure the best price is obtained. All SPA agreements are maintained by DMS. The number of SPA agreements is declining. SP is focusing more on providing greater value and savings through more STC and ACS contracts. 10/21/10

Website redesign We recently upgraded the Florida state term contract and agreement website, . Using our enhanced search engine, you can: Filter through agreements by commodity code, FCFPPL, business designation, contract keyword, product or service, or contract type. Revised contract category mapping ‘How to’ guides for each contract/agreement Detailed agreement descriptions and benefits for eligible users What else is new? Key information such as authorized resellers and geographic coverage for each contract now displays in easy-to-read table format. 10/21/10

Resources Resources STC, SPA, ACS website
Contract administrator and contact information is listed next to each contract Bulletin board DMS State Purchasing Main Line (850) Contract/agreement questions Catalogs Online purchasing 10/21/10

Where to find STC, ACS, SPA
Exit Presentation to view STC website 10/21/10

Contact Us Team Member E-mail Phone Number Communications Analyst
(850) F&A Process Analyst (850) Chief, State Purchasing Operations (850) Vendor Management Analyst (850) DMS Division of State Purchasing (850) 10/21/10

Questions? Wrap-Up Any questions?
We have covered a lot of information in today’s training. I appreciate your participation. Your handout is yours to keep for reference for when you return to your office. Does anyone have any additional questions that we have not covered today? Instructor’s Note: Review the parking lot questions. For questions that you cannot answer, make note of the questions and indicate to the participants that you will forward answers at a later date. Let’s wrap up with the course evaluations. Please take a moment to complete the “Participant’s Evaluation Form” on page 65 of your participant’s guide. Thank you again for your participation and have a safe trip back home. 10/21/10

Florida State Term Contract (STC) Training

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