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MyFloridaMarketPlace Roundtable September 3, 2003.

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Presentation on theme: "MyFloridaMarketPlace Roundtable September 3, 2003."— Presentation transcript:

1 MyFloridaMarketPlace Roundtable September 3, 2003

2 2 MyFloridaMarketPlace Roundtable Session Agenda Welcome / Overview of Today’s Session FLAIR integration update DMS Sourcing Lessons Learned Strategic Sourcing Resolution of Pending Issues / New Issues Next Meeting Location / Time

3 3 Welcome / Overview of Today’s Session FLAIR integration update DMS Sourcing Lessons Learned Strategic Sourcing Resolution of Pending Issues / New Issues Next Meeting Location / Time MyFloridaMarketPlace Roundtable Session Agenda

4 4 Welcome / Overview of Today’s Session FLAIR integration update DMS Sourcing Lessons Learned Strategic Sourcing Resolution of Pending Issues / New Issues Next Meeting Location / Time MyFloridaMarketPlace Roundtable Session Agenda

5 5 EventOwner Aircraft Lease or finance purchase plan (ITN # M)DMS Adobe Software Products (ITB # N Rebid)DMS Real Estate Strategic Planning and Management (ITN # M)DMS Armored Car and Depository Banking ServicesDOT Maintenance, Repair, & Operating (MRO) Supplies (ITB # B)DMS Boiler and Machinery Insurance (ITB # D)DMS A/C and Heating EquipmentDOT Office Consumables Lot A Phase II - eAuction (ITB # E)DMS Office Consumables Lot B Phase II - eAuction (ITB # E)DMS Installation of Fence along the South Florida Rail Corridor-D4DOT The Pilot Agencies conducted 10 sourcing events since the MyFloridaMarketPlace “go live” date on July 1, Source: MyFloridaMarketPlace Sourcing Tool MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned

6 6 DMS’ issues with sourcing can be grouped into two main issues: Access to bids: Vendor’s ability to view bids either because they were not registered at all, didn’t select ability to receive electronic solicitations, or didn’t select commodity codes Responding to bids: Knowing whether or not the vendor had responded to a bid before closing or if they were able to submit the proper attachments

7 7 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bids Issue: Public needs access to bids, and only registered vendors who have selected sourcing and commodity codes within class of bid can access bid in MyFloridaMarketPlace Short-term resolution: Agency must advertise bids on VBS –Print and scan bid as it appears in MyFloridaMarketPlace on VBS –Don’t post PUR form on VBS if you don’t want paper bids Long(er)-term resolution: Considering design for public access to MyFloridaMarketPlace once VBS goes away (must be registered for sourcing today)

8 8 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bids Issue: Vendors who registered before sourcing was added (6/15) were unable to select ability to receive solicitations and therefore can’t view bids Resolution: An was sent to vendors to ask them to select sourcing and their commodity codes on June 26, 2003 at 4:30 p.m.

9 9 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bids Issue: Vendors who registered before (7/1) who did not click refresh after each class of commodity codes was selected is not registered for any or all commodity codes and therefore unable to view bids pertaining to that commodity code Resolution: Modification was made on 7/15 which no longer requires vendor to click on refresh after each class of commodity codes An will be sent to vendors (9/2) asking them to re-select their commodity codes – notification to vendors will be sent staggered in groups in order to ensure adequate Help Desk support Vendor can view which commodity codes they have selected at the end of registration on a summary page which can be accessed at any time

10 10 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bids Issue: Can a vendors who registers after a solicitation is launched view the bid? Resolution: Vendor will be able to access solicitation once system is refreshed (may take up to 24 hours but no longer than) –Vendor needs to select at least one commodity code with in the class of codes for that solicitation –Vendor must also agree to receive solicitations Will receive notification if any updates are made to bid –Vendors will receive an update for each update you make unless you disable the notification –If you are planning to make several updates, try to bundle updates to minimize the number of notifications sent by the system (vendors might complain) Agency can add vendor to bid regardless whether they selected commodity code, but must have selected ability to receive solicitations

11 11 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Responding to bids Issue: After a bid was closed, it only showed one vendor had replied although six responses were received. Short-term resolution: Create permission for people who need access to bids Another tab called “items” can allow anyone to view Long(er)-term resolution: Accenture and their engineers are working to fix this issue so that all vendors who have submitted bids will be displayed on the Suppliers tab

12 12 Short tem resolution for viewing all bids entered Items Tab Items -> Responses

13 13 Short tem resolution for viewing all bids entered New Proposals Tab New Proposal -> View Responses

14 14 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Responding to bids Issue: Sometimes a vendor can’t view when they’ve responded to a bid right away because it could be in a “cache” (temporary holding area) Short-term resolution: Automatic cleaning of “cache” has been increased to every 10 minutes Let Accenture know via the help desk when a bid is closing so that they can provide adequate support (have someone standby when the bid is closing so that they can manually clear out the “cache” files on the server) Long(er)-term resolution: Accenture is continuing to monitor events for cache issues while performing extensive testing and analysis to resolve issue

15 15 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Issue: The bid was not configured to allow attachments in areas where they had been requested. When the vendor tried to attach the bid, there was no spot for them to stick the attachment. Resolution: This issue will be addressed in the Sourcing Event tool kit. The Tool Kit will be distributed to the Agency liaisons when completed. The limitation on the uploaded file is 20 MB per attachment

16 16 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned Issue: What happens when a bid is not awarded to anyone at all? Resolution: System will not let you close a bid (it is pending selection until it is awarded). Agency must contact Accenture via the help desk to close a bid. Alternatively, include in your comments why the bid was not awarded. Accenture will work with DMS to close a market with Buyer permission only.

17 17 MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned - Summary Develop a list of targeted vendors for each bid and send out an prior to the bid opening to remind them to: –To confirm that they have registered and are able to logon –To confirm that they have selected the ability to receive solicitations and the proper commodity codes. Standard bid templates exist, standard language to be developed –The Sourcing Event Tool Kit will provide recommended timeline to include mock training events for vendors. In addition the Tool Kit will include a reminder to configure bid to allow attachments in all areas where they had been requested and to notifying Accenture when bid is to open and close –Agencies will have ability to edit everything, including General Conditions, and add technical specs Advise vendors to get their bids in early – don’t wait until the last minute –They have the ability to change without the Agency seeing what they’ve changed until the bid is closed

18 18 Several resources are available to help vendors and buyers successfully use the MyFloridaMarketPlace Sourcing Tool. ServiceDescriptionLocation Vendor TrainingOn-Demand web-based, interactive training application for Vendors to learn how to respond to an event using the MyFloridaMarketPlace sourcing tool https://marketplace.myflorida.com/ven dor/vendor_training.htm Agency Training Session 1.5 days of Buyer training before they come onboard Please contact your Buyer Adoption liaison for the schedule Communication Tool Kit Tools for Agencies to communicate with their employees on various aspects of the initiative it/toolkit.htm Sourcing Events Services Help with specific questions regarding the tool functionalities and how to set-up and load events in the MyFloridaMarketPlace tool  MyFloridaMarketPlace Help (866)  Sourcing Event tool kit will be available on MyFloridaMarketPlace to help Purchasing Analyst conduct the event correctly. MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned

19 19 Welcome / Overview of Today’s Session FLAIR integration update DMS Sourcing Lessons Learned Strategic Sourcing Resolution of Pending Issues / New Issues Next Meeting Location / Time MyFloridaMarketPlace Roundtable Session Agenda

20 20 MyFloridaMarketPlace Strategic Sourcing – Current Status The first three categories involved in Strategic Sourcing are in various stages of the sourcing process. New State Term Contracts (STCs) are expected to be effective in the October / December 2003 timeframe. Office Cons. DMS Lead – Tom Butler Sourcing Event – Auction Target STC Date – Oct MRO Supplies DMS Lead – David Comer Sourcing Event – ITB (RFQ) Target STC Date – Oct Printing DMS Lead – Charles Day Sourcing Event – RFP Target STC Date – Dec Office Consumables Printing Services MRO Supplies Definition: Strategic Sourcing is a proactive process to leverage demand and select vendors that offer the best value, to achieve savings.

21 21 Major Types of Reverse Auctions TypeDescription Effect on Time Visible Price Price is know by the all the participants but the identity of the other bidders is unknown Time constrained (minutes- hours) Ranked Bidder Price is not shown to the bidders. Instead they are only aware of where they are in order relation to the “winner” Time constrained (minutes- hours) MyFloridaMarketPlace Strategic Sourcing – Reverse Auction Overview There are several different varieties of auctions, with a key differentiator being the way in which information is revealed around price between the bidders. Reverse Auction Bid Price Time In reverse auctions, prices decrease over time.

22 22 Phase 1 Pre- Qualification* Posted Phase 1 ITB instructions on VBS Used Intent to Participate form Contained various critical and information only questions, potential market basket items, geographical capability Q&A for 95 questions (VBS posting of answers) Phase 2 Reverse Auction (2 Stages) 17 vendors pre-qualified from Phase 1 Conducted within MyFloridaMarketPlace Sourcing Tool** Provided Phase 2 ITB instructions, SLAs, general conditions, forms Offline bidder pricing tool provided to bidders Preview period of 2 weeks to allow bidders to download documents and price items 35 questions were submitted via the Q&A board Official answers posted on Sourcing tool as addendum Optional bidder training sessions and mock reverse auction events provided to help vendors learn how to use Sourcing tool After close of Reverse Auction event, second stage within Sourcing required bidders to upload final detailed item pricing to support final bid price entered in the live auction * MyFloridaMarketPlace Tool was not yet live ** See Appendix for summary of Reverse Auction parameters used for Office Consumables Paper and Non-Printed Envelopes Lot (Lot B) MyFloridaMarketPlace Strategic Sourcing – Office Consumables Event DMS recently leveraged the MyFloridaMarketPlace Sourcing tool and a two-phase process to establish a new State Term Contract for Office Consumables.

23 23 Note: Bidders names excluded until award finalized. Source: MyFloridaMarketPlace Sourcing Tool. MyFloridaMarketPlace Strategic Sourcing – Reverse Auction Results Eleven vendors entered a combined 232 bids over the 132 minutes duration of the Office Supplies & Toner Cartridges event.

24 24 Note: Bidders names excluded until award finalized Source: MyFloridaMarketPlace Sourcing Tool MyFloridaMarketPlace Strategic Sourcing – Reverse Auction Results For the Paper and Non-Printed Envelopes event, 106 bids were entered by 9 vendors over 74 minutes time period.

25 25 Summary Lot A – Office Supplies & Toner Cartridges Lot B – Paper & Non-Printed Envelopes Spend Base Line (3-Year Value)$51.5MM$8.7MM # of Vendors Invited / Participated15 / 11 (73%)16 / 9 (56%) Initial vs. Extended Duration0:45hr / 2:12hr0:45hr / 1:14hr # of Bids Spreadsheet Training34 People Practice / Mock Auction Training28 People Potential 3-Year Savings $$16.8MM $1.5MM Potential 3-Year Savings %33% 17% Note: MM = Million The Office Consumables reverse auction generated identified savings of $18.3 million. MyFloridaMarketPlace Strategic Sourcing – Reverse Auction Results

26 26 MyFloridaMarketPlace Strategic Sourcing – Reverse Auction Results Looking at ten commonly ordered Office Consumables items provides specific examples of the savings generated for Agencies. Product Manufacturer Product IDProduct DescriptionUOM Historical Wt. Avg. Price New Price % Savings Generic Copy PaperN/AWhite Copy Paper, 8 1/2" x 11", 20 Lb., 84 Brightness, Case Of 10 Reams Case$21.57$ % HEWLETT PACKARDHEW51645AINKCART,DJ750C/1600C,BKEach$27.30$ % UNIVERSAL PRODUCTSUNV20630PAD,LGL RULD,PERF,LTR,WEDozen$6.37$3.9039% 3MMMM TAPE,MAGIC 3/4X1296Roll$1.59$0.5864% SMEAD MANUFACTURING CO. SMD28040FOLDER,ENDTAB,LGL,BE50BXBox$16.42$8.2950% AT-A-GLANCEAAGSK2400CALENDAR,DSK PD/WALL,BKEach$2.41$1.5735% PILOT CORP. OF AMERICA PIL31020PEN,RBALL,RT,G2,GEL,FN,BKEach$1.10$0.6145% TEXAS INSTRUMENTSTEXTI83PLUSCALCULATOR,GRAPHINGEach$99.42$ % 3MMMM654YWNOTE,POST-IT,3X3,1C/PD,YWDozen$8.09$2.3671% UNIVERSAL PRODUCTSUNV96920BOOK,STENO,GREGG,80SH,WEEach$0.99$0.4951% SANFORD INK COMPANY SAN22420PENCIL,EAGLE #2Dozen$0.99$0.3466%

27 27 Time Period How Agencies on MyFloridaMarketPlace Order How Agencies on SPURS Order Before new STC is effective* Non-Catalog Purchase from current STCs As currently done (Purchase Order/P-Card) on current STC After new STC is effective but before contract is enabled** Non-Catalog Purchase from new STCs As currently done (Purchase Order/P-Card) on new STC After new STC is enabledPunch-out or MyFloridaMarketPlace Catalog MyFloridaMarketPlace Strategic Sourcing – Ordering Instructions The new Office Consumables State Term Contract is expected to be effective within 30 days and will have a 3-year term. * New STC is estimated to be effective 10/1/2003; current STC will be terminated ** New STC is estimated to be enabled by 11/1/2003

28 28 Welcome / Overview of Today’s Session FLAIR integration update DMS Sourcing Lessons Learned Strategic Sourcing Resolution of Pending Issues / New Issues Next Meeting Location / Time MyFloridaMarketPlace Roundtable Session Agenda

29 29 Welcome / Overview of Today’s Session FLAIR integration update DMS Sourcing Lessons Learned Strategic Sourcing Resolution of Pending Issues / New Issues Next Meeting Location / Time MyFloridaMarketPlace Roundtable Session Agenda

30 30 Next Meeting: Time / Location September 17th 9:00 a.m. – 11:00 a.m. Carr Building, Room 170

31 31 Appendix Appendix

32 32 Auction ParametersDefinition Office Consumables Lot B Actual Parameters Reverse Auction TypeVisible Price or Ranked BidderRanked Bidder Open Date and TimeDate and time the auction will open and be available for bid8/13/2003 – 10:00 AM (ET) Close Date and TimeDate and time the auction will CLOSE, and NO LONGER be available for bid 8/13/2003 – 10:45 AM (ET) Opening PriceThe price at which this offering is listed at when the auction opens Initial Bid Entered by Vendors prior to Opening of Event Bid DecrementThe minimum difference between the last accepted bid, and the next bid which will be accepted by the system from any bidder $50,000 Bid Improvement RuleSpecifies whether vendor’s bid must be lower than the overall best bid to be accepted or just their last submitted bid (by the minimum bid decrement or greater) Must only improve on own last bid Extension AllowedIndicates if the auction can be extended if bids are coming inYes Extension IntervalThe duration of the auction extension (if auction extensions are enabled) in minutes 5 minutes Extension LimitThe maximum total number of extensions which can be applied to an auction for any reason No limit Accept Proxy BidsIndicates if Host will allow users to set proxy bidsNo MyFloridaMarketPlace Strategic Sourcing – Reverse Auction Parameters Reverse Auction set-up involves many decisions, including determining auction type, event duration, extensions and bid improvement parameters.


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