1. Purchasing Directors’ Meeting May 11, 2006

2. 2 Purchasing Directors’ Meeting May 11, 2006 Agenda Wireless Voice & Data Review of GSA Training & Policy Recent Legislative Action: Negotiations, FL Efficient Govt. Act State Purchasing Bureau Reports Contract Management Initiative MFMP update Next meeting Thursday June 8: Schedule or skip?

3. 3 Purchasing Directors’ Meeting May 11, 2006 Agenda Tentative Direction, Not Final: Wireless Voice & Data: 1.Verizon is the only voice provider on SP or EITS Contract 2.Voice contract exceptions must be documented in accordance with 60A-1.044(3) 3.Acquisition can then be by any 287.057 method, or alternate contract source 4.Other than Nextel voice, ACS requires SP approval case- by-case 5.Order Voice & Blackberry through MFMP or P Card, Air Cards/VPN WECM Services by CSA PLEASE DISCUSS WITHIN YOUR AGENCIES & PROVIDE FEEDBACK.

4. 4 Purchasing Directors’ Meeting May 11, 2006 Agenda Wireless Voice & Data Review of GSA Training & Policy Recent Legislative Action: Negotiations, FL Efficient Govt. Act State Purchasing Bureau Reports Contract Management InitiativeMFMP update Next meeting Thursday June 8: Schedule or skip?

5. 5 Purchasing Directors’ Meeting May 11, 2006 Agenda Policy: Use GSA Schedule 70 without additional SP approval for most software and some other items not on STC; request ACS approval case-by-case for documented contract exceptions Approx. 24 agencies and 80 persons participated in GSA training May 4 Need for another training opportunity?

6. 6 Purchasing Directors’ Meeting May 11, 2006 Agenda Wireless Voice & Data Review of GSA Training & Policy Recent Legislative Action: Negotiations, FL Efficient Govt. Act State Purchasing Bureau Reports Contract Management Initiative MFMP update Next meeting Thursday June 8: Schedule or skip?

7. 7 PUBLIC RECORDS & PUBLIC MEETINGS (cf. HB 1369) PUBLIC RECORDS (ref. s.119.071 FS) 1.ITB/RFP: If an agency posts rejection of all AND intent to reissue, bids/proposals are exempt until notice of an intended decision on re-bid or agency withdraws re-bid. 2.ITN: Exempt 20 days, not 10. If an agency posts rejection of all AND intent to reissue, and does within 90 days, sealed replies are exempt until notice of decision, not to exceed 12 months. 3.SUNSET October 2, 2011.

8. 8 PUBLIC RECORDS & PUBLIC MEETINGS (cf. HB 1369) PUBLIC MEETINGS (cf. s.286.0113 FS) 1.Portions of meeting revealing a security system plan are exempt. 2.Negotiations with a vendor are exempt. 3.Negotiation meetings must be completely recorded. No portion of the meeting may be held off record. 4.The recording is exempt until notice or 20 days after final competitive sealed replies. 5.Rejection of all sealed replies: similar to preceding slide on ITNs.

9. 9 PUBLIC RECORDS & PUBLIC MEETINGS (cf. HB 1369) 1.Section 3 of HB 1369 goes on to state Legislative finding “that it is unfair and inequitable to publicly discuss …negotiation strategies, assessment of …offers or positions, or the …details of offers.” 2.The act shall take effect upon becoming a law.

10. 10 FL EFFICIENT GOVT. ACT (cf. SB 2518) FLORIDA EFFICIENT GOVERNMENT ACT Council on Efficient Government Business case for outsourcing Contract clauses Negotiator requirements Limits on contact by respondents Funding the requirements Exempt commodities & services

11. 11 COUNCIL ON EFFICIENT GOVERNMENT (cf. SB 2518) Section 4 creates a 7-member Council on Efficient Government in DMS. Council will provide a business case template, standards & best practices. Council will review & evaluate business cases to outsource. Council provides an evaluation to the agency, Gov, President of Senate, and Speaker 30+ days prior to a proposed outsourcing solicitation of $10 Million+. Council will work with AWI on assisting displaced. Council will report annually.

12. 12 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) “Outsource" means the process of contracting with a vendor to provide a service as defined in s. 216.011(1)(f), in whole or in part, or an activity as defined in s. 216.011(1)(rr), while a state agency retains the responsibility and accountability for the service or activity and there is a transfer of management responsibility for the delivery of resources and the performance of those resources.216.011

13. 13 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) Section 2 specifies intent that Agency focus on its core mission and deliver services effectively and efficiently by leveraging resources Contracting with private-sector vendors whenever vendors can –more effectively –and efficiently provide services –and reduce the cost of government.

14. 14 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) 1.Business cases to outsource must be evaluated for feasibility, cost-effectiveness, and efficiency before a state agency proceeds with any outsourcing of services. 2.Agency will submit initial business case for $10 Million+ any FY outsourcing at least 60 days prior to solicitation. 3.After solicitation but 30+ days before contract execution, submit revised business case.

15. 15 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) 4.For solicitation of $1-10 Million/FY, 30 days notice prior to solicitation, etc. 5.For costs below $1 Million/FY, present only final business case 30+ days prior to execution of contract.

16. 16 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) Section 5: Elements of a business case 1.Service or activity to be outsourced. 2.Current agency performance metrics. 3.Legal authority to outsource. 4.Goals of outsourcing. 5.Options for achieving goals, including state. 6.Market analysis. 7.Cost/benefit analysis. 8.Transition plan. And others.

17. 17 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) Section 1 amends 287.057 (14): Cannot increase term or payments of an outsourcing contract exceeding $10 million w/o reporting 90 days ahead to Gov, Sen Pres & Speaker

18. 18 BUSINESS CASE FOR OUTSOURCING (cf. SB 2518) Section 5, Contract Clauses 1.Statement of Work with measurable deliverables 2.Service level agreements with performance objectives. 3.Costs. 4.Transition plan. 5.Acceptance criteria. 6.Reporting. 7.Etc.

19. 19 NEGOTIATOR REQUIREMENTS (cf. SB 2518) Section 1 amends 287.057: For any negotiated contract exceeding $1 million in any fiscal year, one of the negotiators must be a DMS certified negotiator. For any negotiated contract exceeding $10 million in any FY, one of the negotiators must be certified by the Project Management Institute.Project Management Institute. These qualifications could reside in 1 person. THIS APPLIES TO ALL ITNs, NOT JUST OUTSOURCING.

20. 20 LIMITS ON CONTACT BY RESPONDENTS (cf. SB 2518) Section 1 amends 287.057: Respondents or persons acting for them shall not contact any employee or officer of the executive or legislative...except in writing to the procurement officer or as otherwise instructed in the solicitation. This applies to commodities and services, ITBs, RFPs and ITNs, from issuance to completion of the posting of the intended decision! The intent is to make this a general condition of all solicitations for commodities or contractual services.

21. 21 FUNDING THE REQUIREMENTS STAFFING AND TRAINING For FY 2006-07, 10 FTEs and $1.25 million for DMS. Another $500,000 for PMP training, to DMS but for all agencies.

22. 22 EXEMPT COMMODITIES & SERVICES (cf. SB 2518) Section 2 indicates that Council on Efficient Government requirements of this statute do not apply to prescriptive assistive devices, services exempted in 287.057(5)(f), or continuing education events, or to 287.055 procurements of A & E services, or DOT road and bridge construction, or any procurement which does not constitute an outsourcing of services or activities.

23. 23 BUREAU UPDATES Ellen Potts, Chief, Bureau A, Transportation, Facilities & Supplies Jeff Rackley for Charles Covington, Bureau B, Technology, Office Equipment & Services Stephanie Dennard, Chief of Operations

24. 24 Operations Bureau Update DMS website to be redesigned by end of June SP Training Registration forms to be converted to eForms in late June Continuing to enhance search capabilities on State Purchasing website FESN and FEPN Performance Measures –Customer Satisfaction Survey Results

25. 25

26. 26 Florida Emergency Supplier Network (FESN) Go to http://dms.myflorida.com/dms/purchasing/florida_eme rgency_network/florida_emergency_supplier_network _fesn/florida_emergency_supplier_record_agreement _instructions. http://dms.myflorida.com/dms/purchasing/florida_eme rgency_network/florida_emergency_supplier_network _fesn/florida_emergency_supplier_record_agreement _instructions Read instructions (they include the username and password you will need to access eForm). Click link to eForm. Call 850.921.0997 if you have questions or need further assistance. 51 registered vendors to date

27. 27 FESN Registration eForm (Vendor’s View)

28. 28 FESN Buyer View

29. 29 Florida Emergency Purchasing Network (FEPN) Volunteers Go to http://dms.myflorida.com/dms/content/view/ful l/3065, download form, complete form, and submit as an attachment in an email to FLemergencynet@dms.state.fl.us. http://dms.myflorida.com/dms/content/view/ful l/3065 FLemergencynet@dms.state.fl.us Deadline is Friday, May 19, 2006.

30. 30 Performance Measures Performance Measures – March ’06 –Customer Satisfaction Survey Results (55 received to date)

31. 31 PERFORMANCE MEASURES ECONOMY MEASURE: Savings from STCs and SPAs through March 31: $418,625,252, 36.20% (FY 05 total was $458.4MMM, 31.35%. We appear to be on track to strongly exceed both last year’s savings rate and absolute dollars saved.)

32. 32 PERFORMANCE MEASURES EFFECTIVENESS MEASURE: Year-to-Date Total Purchases $1,004,278,81 Year-to-Date State Term Contracts/ SPA/ Purchase Orders $ 471,171,763 Percent State Term Contracts/SPA purchases to total purchases 47% (FY 05 was $473.5MM, 32% of PO spend.)

33. 33 PERFORMANCE MEASURES EFFICIENCY MEASURES Year-to-Date State Purchasing Operating Budget: $2,675,314.18 Year-to-Date Cost of State Purchasing in respect to STC/ SPA Purchase Order spend:.57% (FY 05 was.85%.). For Every Dollar Spent Operating State Purchasing, the return was: $156.47, R.O.I. 15,647% (FY 05 was 11,400% ROI. Again, strong improvement.)

34. 34 CUSTOMER SURVEY Please respond my COB May 15 Initial responses show sub-7 ratings Primary complaints and primary satisfactions on same issues, e.g. responsiveness Little confidence in savings

35. 35 Purchasing Directors’ Meeting May 11, 2006 Agenda Wireless Voice & Data Review of GSA Training & Policy Recent Legislative Action: Negotiations, FL Efficient Govt. Act State Purchasing Bureau Reports Contract Management Initiative MFMP update Next meeting Thursday June 8: Schedule or skip?

36. 36 CONTRACT MANAGEMENT INITIATIVE Deferred to next meeting

37. 37 Purchasing Directors’ Meeting May 11, 2006 Agenda Wireless Voice & Data Review of GSA Training & Policy Recent Legislative Action: Negotiations, FL Efficient Govt. Act State Purchasing Bureau Reports Contract Management Initiative MFMP update Next meeting Thursday June 8: Schedule or skip?

38. 38 Purchasing Directors’ Meeting May 11, 2006 Agenda Wireless Voice & Data Review of GSA Training & Policy Recent Legislative Action: Negotiations, FL Efficient Govt. Act State Purchasing Bureau Reports Contract Management Initiative MFMP update Next meeting Thursday June 8: Schedule or skip?