1. Purchasing Directors’ Meeting August 7, 2003 3:00 P.M. State Purchasing

2. 2 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

3. 3 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

4. 4 Purchasing Directors’ Meeting Legislative Update DMS Point of Contact Lisa Hurley, Esq. (850) 488-3213 HurleyL@dms.state.fl.us

5. 5 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

6. 6 Purchasing Directors’ Meeting Florida Government EXPO Update Florida Government EXPO September 24-26, 2003 Tampa Convention Center DMS Point of Contact John Kuczwanski (850) 414-6736 FloridaGovernmentEXPO@myflorida.com Click on Florida Government EXPO under Hot Topics at www.myflorida.com www.myflorida.com (http://www.floridagovernmentexpo.com/)

7. 7 Purchasing Directors’ Meeting Florida Government EXPO Update Purchasing related workshops Wednesday 2:00 – 3:00: Rules Workshop Thursday 10:00 – 11:00: Guest Speaker, Larry Giunipro, Practical Benefits of e-Procurement Thursday 4:30 – 5:30: Purchasing Directors’ meeting

8. 8 Purchasing Directors’ Meeting Florida Government EXPO Update Employee development workshops, e.g., Change Enablement, Team Leadership and How to Motivate Employees. One-on-One sessions coordinated by OSD. Governor’s agencies on the agenda. If you would like to be included, please let us know. Time allotted time purchasing personnel to visit exhibit hall to meet with vendors. Encourage your vendors to participate through sponsorship, participating in the exhibit hall, or attending. We have scheduled workshop geared toward vendors wishing to do business with the state. Distribute employee card to your personnel (DMS to forward)

9. 9 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

10. 10 Purchasing Directors’ Meeting Purchasing Directors’ Meeting State Purchasing Reorganization Mission – To gladly deliver useful and innovative purchasing services in order to become a customer focused agency providing effective and efficient customer services Mission Goal - Recruit at least four employees highly esteemed by their peers before October 2003, and reduce annual turnover by 50% Mission Task – Reorganize division

11. 11 New State Purchasing Reorganization New State Purchasing Employees Russ Rothman Elaine Atwood – new Bureau Chief leading Teams 1-3. Eight years state contracts/purchasing and supervisory experience with two different agencies. Stu Potlock, B.S., CPPB – new Purchasing Analyst. Eight years state experience, seven in purchasing, with two different agencies. Mark Lovell, B.S., CPPB – new Purchasing Analyst. Five years state purchasing experience. Thirteen years private sector management experience. Ommet Mbiza, M.B.A – new Purchasing Specialist. Has started and managed business in Africa and the U.S. Renee Gregory – new Purchasing Specialist. Six years state purchasing experience with three different agencies. Chris Kincaid, B.S. – new Purchasing Specialist. Started own internet-based business specializing in musical instruments and worked in family business.

12. 12 State Purchasing Reorganization INTERIM To-Be Organization Structure

13. 13 State Purchasing Reorganization Team Members Team 1 Jim Den Blyker – Auto & Marine David Bennett, MBA – Energy Rob Butler Team 2 Ellen Potts – Furniture Maureen Livings – Food Brenda Wells Team 3 Charles Beall – MRO, Equipment Mark Lovell – Law Enforcement Kimberly Hall

14. 14 State Purchasing Reorganization Team Members (cont.) Team 4 David Comer – Computer Hardware Stu Potlock – Software and IT Chris Kincaid Team 5 Marvin Williams - Telecommunications Steve Poole – Office Consumables Renee Gregory Team 6 Charles Day – Printing & Office Equipment Susan Barr – Med/Lab Supplies Ommet Mbiza, MBA Team 7 Theresa Dollar – Insurance Tom Butler – Professional Services Wendi Sellers

15. 15 State Purchasing Reorganization Operations Manager – Customer & Vendor Satisfaction Victoria Chambers ChambeV@dms.state.fl.us

16. 16 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

17. 17 Purchasing Directors’ Meeting Training and Certification Program Excellence in Contracting Audit Report: Undertake a statewide training initiative, and include incentives to encourage professionalism and certification DMS Primary Contact Fran Brooks Office of Organizational Development BrooksF@dms.state.fl.us (850) 488-2187

18. 18 Statewide Procurement Training and Certification Program Integrated Program Management Training Certified Professional Public Buyer (CPPB) Certified Public Purchasing Officer (CPPO) National Institute of Governmental Purchasing Florida Association of Public Purchasing Officers Nine Local NIGP Chapters in Florida Agency programs and trainers

19. 19 Develop and deliver a training & certification program for state procurement professionals Establish curriculum and announce course offerings Track participation and completion Incorporate best practices Linkage to MyFloridaMarketPlace Support a network of experts Research and recommend incentives to encourage professionalism and certification (may require legislative approval) Improve the quality of the state’s procurement program and practices Training and Certification Program Goals and Objectives

20. 20 Inventory knowledge, skills, abilities (licensures, registrations, and certifications) Establish criteria for each functional level (career pathing plans) Review available funding for training and/or incorporate requests into Legislative Budget Request Establish Key Performance Indicators -- Metrics and Measures Coursework completed within 18 months to 36 months Training and Certification Program Strategy

21. 21 Overview Course Planning Course Procurement Course Performance Course Certification Courses Enhance the knowledge and skills of state employees involved with procurement and project management Training and Certification Program Integrated Program Management Training

22. 22 No prior procurement or contract/project management experience is required Overview of coursework and certification training program Senior level management New Purchasing employees Employees who plan on taking a core course or are seeking certification Training and Certification Program Overview Course Objectives

23. 23 The value of proper planning to future performance In conducting a procurement In managing contract performance by a vendor Who should be involved in a procurement/contract/project team Various facets of risk Risk Assessment as a prelude to a go/ no go decision for a procurement/ contract/project How risk causes avoidance and higher costs Training and Certification Program Planning Course Objectives

24. 24 Issues to consider when constructing specifications –Procurement perspective –Contract management perspective Balancing the competing factors of time –Proper planning saves time Training and Certification Program Planning Course (continued)

25. 25 Conduct pre-bid / pre- proposal conference Prepare and distribute minutes of these conferences Amend a solicitation after issue Respond to vendor questions Postpone a bid / proposal due date Receive and open bids and proposals Conduct discussions / negotiations with offerors Resolve tie bids Request best and final offers Training and Certification Program Procurement Course Objectives

26. 26 Debrief an unsuccessful offeror Handle protests and appeals Obtain agency and DMS approvals Maintain a procurement file Resolve late bids Determine non- responsiveness and vendor responsibility Resolve with mistakes in bids Handle Requests for Public Records Training and Certification Program Procurement Course (continued)

27. 27 Accept a vendor’s product or deliverable Invoke liquidated damages Release a bond Withhold payment / suspend work Terminate a contract for convenience Terminate a contract for default Accept contractor assignments (sale, merger, etc.) Training and Certification Program Performance Course Objectives

28. 28 Assure compliance with MBE and Office of Supplier Diversity Refine a contract management plan Refine a contract performance checklist Resolve contractor performance problems Issue change orders Training and Certification Program Performance Course (continued)

29. 29 Evaluate contractor performance Transition between contractors Insure run out requirements are satisfied Revise specifications to apply lessons learned for subsequent procurements Training and Certification Program Performance Course (continued)

30. 30 Schedule A - HS Diploma or GED, 12 college credit hrs in purchasing, 96 contact hrs in purchasing seminars or any combo thereof, 5 yrs total purchasing experience which must include 3 yrs of current public purchasing experience Schedule B - Associate Degree, 12 college credit hrs in purchasing, 96 contact hrs in purchasing seminars or any combo thereof, 4 yrs total purchasing experience which must include 3 yrs of current public purchasing experience Training and Certification Program Certified Professional Public Buyer (CPPB)

31. 31 Schedule D - Master's Degree or Ph.D., 3 college credit hrs in purchasing courses, 24 contact hrs in purchasing seminars or any combo thereof, 2 yrs of current public purchasing experience Schedule C - Bachelor's Degree, 6 college credit hrs in purchasing courses, 48 contact hrs in purchasing seminars or any combo thereof, 2 yrs current public purchasing experience Training and Certification Program Certified Professional Public Buyer (CPPB)

32. 32 Schedule A - Holder of CPPB Designation, 18 college credit hrs in purchasing courses, 144 contact hrs in purchasing seminars or any combo thereof, any contact hrs earned to obtain the CPPB Designation can be used towards the contact hrs for this license, 8 yrs total purchasing experience, 6 yrs current public purchasing experience of which 3 yrs are in a public purchasing mgmt function Schedule B - Bachelor's Degree, 6 college credit hrs in purchasing courses, 48 contact hrs in purchasing seminars or any combo thereof, any contact hrs earned to obtain the CPPB Designation can be used towards the contact hrs for this license, 3 yrs total purchasing experience, 2 yrs current public purchasing experience of which 2 yrs are in a public purchasing mgmt function Training and Certification Program Certified Public Purchasing Officer (CPPO)

33. 33 Schedule C – Master’s or Ph.D, 3 college credit hrs in purchasing courses, 24 contact hrs in purchasing seminars or any combo thereof, any contact hrs earned to obtain the CPPB Designation can be used towards the contact hrs for this license, 3 yrs total purchasing experience, 2 yrs current purchasing experience of which 2 yrs are in a public purchasing mgmt function Training and Certification Program Certified Public Purchasing Officer (CPPO)

34. 34 Agency volunteers to assist with curriculum review Agencies submit sample training materials by September 10 (to BrooksF@dms.state.fl.us) DMS provide agencies sample form to inventory certifications, training needs, experience, and educational achievement for purchasing professionals Update at next Purchasing Directors meeting Training and Certification Program Next Steps

35. 35 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues Next Meeting Location / Time

36. 36 Strategic Sourcing Objectives Leverage State- Wide Volume Obtain Best Prices & Value Obtain State- Wide Savings Increase Demand / Volume on STCs Identify New STC Opportunities Reduce State- Wide Supply Base Manage Compliance Strategic sourcing is a proactive process to leverage demand and select vendors that offer the best value.

37. 37 Greater savings for Buyers High volume contracts awarded to a reduced amount of vendors Increased usage of State Term Contracts Buyers spend less time duplicating our efforts and more time on State needs Improved contract management Less time spent managing vendors and more time improving contracts Strategic Sourcing Benefits

38. 38 Strategic Sourcing Wave 1 Office Supplies DMS Lead – Tom Butler Sourcing Event – Auction Target STC Date – Oct. 2003 MRO Supplies DMS Lead – David Comer Sourcing Event – ITB Target STC Date – Oct. 2003 Printing DMS Lead – Charles Day Sourcing Event – RFP Target STC Date – Nov. 2003

39. 39 Discuss current contract to identify weaknesses and strengths –Too many vendors (weakness) –Good use of web-based buying Develop new contract strategy –Auction event –Item “lots” –Core and Non-core items –2 Phase solicitation to pre-qualify vendors Gather spend data to help build new strategy –Get spend data from FLAIR –Reach out to vendors and request spend data Conduct Buyer needs assessments (interviews, surveys, etc.) –Get agency feedback on SLA’s Construct solicitation document, get it approved and post it –Phase I pre-qualifies –Phase II leads to auction Strategic Sourcing First Steps

40. 40 Pre-Qualified vendors using 12 “critical” questions –Minimum sales revenue, delivery times, restocking fees, number of core items provided, etc. 42 vendors applied, 17 were pre-qualified –There were no protests (but a bunch of “non-happy” vendors) Vendors had to submit a workbook back as their Phase I response –We spent the next few weeks analyzing the returned data Phase I shaped and defined Phase II –The analyzed data defined the items to be bid on and the SLA’s Strategic Sourcing Phase I Details

41. 41 The Phase II documentation was released July 25th –Posted in new Sourcing tool; no VBS usage –Used a “2-Stage” event in Sourcing tool to facilitate Pre-view, auction and post auction activities Multiple emails were sent to vendors to prepare them for new bid system –Online sourcing training –Contract specific sourcing training document Conducted conference call training events for bid tool –Vendors were given optional training for a complicated piece of the bid package Q&A period ends today for vendors –Questions coming in steadily; answers posted on the 7th Pre-bid materials due 8/11; Auction begins 8/13 –2 lots = 2 separate auctions at 45 min a piece –Up to 2 vendors can win per lot (5% and vendor size rules apply) Strategic Sourcing Where We Are

42. 42 Timelines are to Accenture as air is to human beings –This is all they work on – they seem to think it is all you work on as well Accenture knows Strategic Sourcing; you know the State –Be flexible with their ideas but remember, you are the team lead Be prepared to meet… A LOT –See the first bullet above Be patient with your vendors –You are decreasing the number of winners, which increases competition, which then increases emotional levels Ask questions. A lot of them. –Accenture is more then willing to expect that you know exactly what they are saying all of the time. Strategic Sourcing Things I Learned

43. 43 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

44. 44 Purchasing Directors’ Meeting Operational Issues  Commodity Codes  Vendor Bid System  Purchasing Offices List  Microsoft Settlement  Draft Solicitations

45. 45 Operational Issues Commodity Codes Searchable Word document has been posted on the MyFloridaMarketPlace Roundtable Materials page Work request has been submitted to STO to link SPURSView search function to Search Advertisements and to registration for e-mail notification, with modifications to allow search on class only and to display class and group, with item and detail an option

46. 46 Operational Issues Vendor Bid System Work is in progress to allow VBS user to select ad type to search for. Purchasing folk posting an ad already have the ability to identify by type for posting. A drop down box will be provided for “search advertisements” with certain options: (TBD by 8/11/03)

47. 47 Operational Issues Purchasing Offices List The Purchasing Offices list posted at http://www.myflorida.com/myflorida/business/ contacts/bureaus/buylinksphonesall.html will be updated by week end (Aug. 8) with the updates received to date. http://www.myflorida.com/myflorida/business/ contacts/bureaus/buylinksphonesall.html Please continue to submit any changes to your agency listing to Sarah Hamilton at hamilt@dms.state.fl.us hamilt@dms.state.fl.us

48. 48 Operational Issues Microsoft Settlement Government agencies are NOT class members in In re Florida Microsoft Antitrust Litigation, Miami-Dade County Circuit Court Case No. 99-27340 No action necessary in response to notices you may receive about this case

49. 49 Operational Issues Draft Solicitations “No person who receives a contract... to perform a feasibility study …, participating in the drafting of [the solicitation], or developing a program … shall be eligible to contract with the agency for any other contracts dealing with that specific subject matter” s. 287.057(17), F.S. (2001) “A person who receives a contract … to perform a feasibility study …, who participates in the drafting of a solicitation or who develops a program … is not eligible to contract …” s. 287.057(18), F.S. (2002) “… made available simultaneously to all vendors…” s. 287.057(1), F.S. (2002)

50. 50 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

51. 51 Purchasing Directors’ Meeting August 7, 2003 Agenda  Welcome / Meeting Overview  Legislative Update  EXPO  State Purchasing Reorganization  Training and Certification Program  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

52. 52 Purchasing Directors’ Meeting Next Meeting  Time-4:30 to 5:30 p.m.  Date- Thursday, September 25, 2003  Location-Tampa Convention Center