Presentation on theme: "1 July 30, 2008 9:00 am to Noon PROCUREMENT POLICY COUNCIL."— Presentation transcript:
1 July 30, :00 am to Noon PROCUREMENT POLICY COUNCIL
2 PPC AGENDA 1.Update on ERP 6.0 – Patti Chapman 2.BMWBO – Kathryn Waters-Perez 3.Materials & Services Contract updates – Roxana Dietz & Walt Quade 4.Energy Update/Fuel Futures – Walt Quade 5.New ITQ process – Dennis Fellin 6.Procurement Handbook updates – Ellen Dunlap 7.Purchase Order and Contract Posting Attachments – Ellen Dunlap 8.SRM – Ellen Dunlap Work Flow Changes Bidding Issues Bidding Changes Doc Builder Changes P-card Enabled Supplier Enablement – Joan Kraft 9.RFP Playbook – Joan Kraft
3 PPC AGENDA 10.Legal – Pam Cross Right-To-Know Redaction Guidelines 11.Training – Jeff Mandel Negotiations Course SAP Navigation Course New Certification courses – update 12.Questions & Answers 13.Appendix
11 Materials Contracts MATERIALS CONTRACTS: AWARDED OR RENEWED IN THE PAST 3 MONTHS Contract #Effective Contract TitleStatus Associate Commodity ManagerMaterial TobaccoRenewed Rich GaulTobacco Products DPW Food New ContractRich Gaul Food Canned and Dry Food DPW Food New ContractRich GaulFood-Canned and Dry Nutritional Supplements New Rich GaulSupplements Nutritional Supplements Renewed Rich Gaul Supplements Spring Water AwardedRich Gaul Water Spring Water AwardedRich Gaul Water Spring Water AwardedRich Gaul Water Spring Water AwardedRich Gaul Water Janitorial Supplies Awarded Effective 8-18Jim Pinci Janitorial Supplies MRO SYDistJP DuvallElectric Bulbs Uniforms Renewed JP DuvallUniforms -PSP Textiles RenewedJP Duvall Textiles Uniforms RenewedJP DuvallUniforms Latex PaintAwardedJP DuvallPaint SAP SRM SAP SRM SAP SRM SAP SRM
12 Materials MATERIALS CONTRACTS: BID OR RENEW IN THE NEXT 3 MONTHS Contract #Contract TitleStatus Commodity ManagerMaterial Diesel FuelTo be BidShifflerLiquid Fuel Heating OilTo be BidShifflerHeating Oil unleaded gasTo be BidShifflerGas Futures Contracting for FuelTo be BidShifflerAll petroleum Products Bituminous Cold PatchTo be BidShifflerCold patch RFQ DGS 08-01Unregulated Electric SupplyTo be BidShifflerElectricity Metal PipeTo be BidShifflerPipe Floor MachinesTo be BidReinoehlFloor Machines Food Service EquipmentTo be BidReinoehlFood Equipment VehiclesTo be BidReinoehlVehicles
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 TaskStartComplete DGS-OIT Workgroup Sessions14-Mar-0801-Jul-09 Develop Draft proposal for New ITQ14-Mar-0801-Jul-08 Review with DCIOs - CIOs26-Jun-0803-Jul-08 DCIO - CIO Comment Period26-Jun-0811-Jul-08 Review with Tech Council01-Jul-0830-Aug-08 Develop Final ITQ Version30-Jun-0830-Aug-08 Legal Review of T&Cs30-Aug-0826-Sep-08 Final Prep for ITQ Publication03-Nov-0826-Dec-08 Hold Supplier Info Sessions on New ITQ15-Nov-0830-Dec-08 ITQ Publication30-Dec-08 Vendor Qualification Process09-Jan-0930-Mar-09 New ITQ Procurements can begin ( start)01-Apr-0901-Jul-09 Deadline for work under Old ITQ30-Jun-09 New ITQ Contract Begins01-Jul-09
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 Procurement Handbook Updates Search results will display. Click on the Title Heading to pull up specific Chapter. 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 There were no substantive changes made to this section. Changes were made for organization, consistency and clarity. Part 2 Chapter 18 - Vehicles Part 2 Chapter 16 – Trade In Equipment Guidelines have been specified for the trade in of equipment. 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. 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. Amending Sole Source Chapters in Part 1, 2, 3 & 4
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 workflow did not work for their agency…only 3 agencies out of that total wanted to change the workflow on bids for 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) suppliers name MUST be added to the bidder/bid tab for a public bid. –Agencies can use the dummy Public Advertising Supplier –Or they can add any suppliers SAP Vendor Numbers to verify supplier is registered in SRM.
31 IMPORTANT BID INFORMATION 1. DOCUMENT(S) TO BE RETURNED: THE FOLLOWING DOCUMENTS MUST BE RETURNED WITH YOUR INVITATION TO BID RESPONSE ; 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 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 SRM Sample Bid Information Good example of text to assist the supplier while bidding.
32 SRM Bid Status There are four areas of identification provided to suppliers to determine if their bid was submitted. They are: 1.Pop Up Window Box Message which displays when bid has been first submitted. 2.General Data Tab> Basic Data> Bid Status when the bid is open. 3.Bid Status field in the search result area. 4. notification.
33 SRM Bidding Changes 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 A tip has been included to the Line Item Tab to remind suppliers to Check their bid before submitting.
34 SRM Updates Procurements 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. The Upload and Download buttons at the top of suppliers bidding screen have been removed.
35 Document Builder 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. Word Document to Doc. Bldr. 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 Search Contracts> and scroll over to the right-hand side.http://www.emarketplace.state.pa.us/ 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 RFP Playbook Attachments 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…
40 RFP Scoring Category Guide RFP Scoring MaterialsServices Range Technical 25%-40%50% -40% Cost 55% -40%30% -40% DB 20% Total 100% Domestic WorkforceNot ApplicableBonus3% maximum Enterprise Zone Small BusinessBonus6% maximumBonus6% maximum
42 RFP Playbook Feedback 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 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. Primary Sources DGS Legal DPW LECS Comptroller State BFO PCCD PHHS DOT BMWBO DOH PSP
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
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 1 st. 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 (EINs and SSNs) –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 Treasurys 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 bidders economic capability. Personal Information: SSN; driver license number; employee or other identification number; home, cellular and personal telephone numbers; personal 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: 1.Date of execution 2.Amount of the contract 3.Beginning date of the contract 4.End date of the contract 5.Name of the agency entering into the contract 6.The name of all contractors executing the contract 7.Subject matter of the contract 8.Type [Contract, Purchase Order, or Amendment] 9.Parent Contract Number 10.Agency Contract Number
51 Changes to Contracts/P.O.s If a change is made to any one of the summary fields located on Treasurys site, then Agencies should update the summary information and attachments –Since SAP does not differentiate amendments or changes as separate document numbers, Agencies will need to append the Contract/PO document number with new effective/change date –Example: Original Document # 44XXXXXXXX Change Document # 44XXXXXXXX_071508
52 Frequently Asked Questions about the New RTK Law Agency contracts currently entered in SAP as Funds Commitments: –If the amount is greater than or equal to $5,000.00, then Agencies will need to input the contract summary data –Agencies must obtain the paper copy of the contract, black out information that must be redacted and upload to Treasury site.
53 Frequently Asked Questions About the New RTK Law SAP Purchase Orders do not contain Start and End dates –Start date recommendation = fully executed date –End date recommendation = end of the latest fiscal year embedded in the fund Contract target value = $999, or there is no amount –Agencies should enter what is displayed in SAP Which document type gets selected when a change occurs to PO? –Amendment
54 Frequently Asked Questions About the New RTK Law Purchase Orders Against Statewide Contracts –Not REQUIRED TO BE submitted – AGENCIES HAVE DISCRETION OVER WHETHER THEY PROVIDE THESE Amendments to Contracts Executed Before July 1, 2008 –If one of the summary fields change, then THE CONTRACT AND THE AMENDMENT should be provided
55 Frequently Asked Questions About the New RTK Law What if original Contract is under the 5K threshold and change has been entered which makes the Contract >5K? What gets entered into the Treasury system? –Upload the original and the amendment to the Treasury system Do changes made to Contract's at Fiscal Year End (FYE) (ie: reductions, liquidations) need to be entered into the Treasury system? –If one of the summary fields change, then it should be provided
56 Other Points of Information Treasury does not have any enforcement authority under the law. Contracts that have been made available on Treasurys website in response to a request will remain available for immediate access by subsequent website users. Treasury will purge all records within 4 years of the end date specified on the contract summary.
57 Length of Purchase Orders The underlying contract (and any incorporated solicitation document) governs the permissible length of purchase orders issued against the contract. Sources of governing language may be found in the solicitation, standard terms and conditions, or special terms and conditions. Typically, our recent standard terms and contract documents limit PO length to no later than 90 days beyond the end date of the contract. Absent a specific restriction found in the governing contract or inherent in the scope or delivery method of the contract (e.g., a specific quantity contract or a contract where delivery must be made in 30 days of issuing the PO), a PO can be issued the day before the contract ends for the normal service or delivery period. Agencies should consult with agency counsel or DGS counsel for contracts where it is unclear.
58 Training Negotiations Course – First draft is under final review. This course will be available via WBT and administered via E-LMS in August. SAP Navigation/Overview Course – 75% complete. Final revisions are being made. This course will be available via WBT and administered via E-LMS. SAP R/3 Purchasing Course – Under development and is 45% complete. This course will be comprised of master data, contractor responsibility program, displaying contracts, creating purchase orders, processing reports, good receipt, and invoicing information. New Certification Courses – These courses are 60% complete. BOP has tentatively scheduled this pilot for September 8-11, The pilot is being conducted to determine the duration of the class. If your agency is interested in participating in the pilot, please contact Roz East via at no later than c.o.b., August 8, RFP Course – 75% complete. This course is still under development, pending finalization of RFP Playbook.
59 Training Penn State Supply Chain Management classes are scheduled to begin in the Fall/2008. Anyone interested in attending the upcoming class, contact Barbara Booher at (717) or at For those of you whose names are pending in the queue, you will be contacted via . Responses are due no later than August 29, Requisitioning and Receiving regional training in King of Prussia, Selinsgrove and Greensburg area this Fall/2008 and will be 2-days in length. You will find these trainings out on the DGS BOP Training Calendar, and the classes can be accessed via E-LMS for registration. Any questions, contact Angela Eshleman at (717) or Cynthia Anderson at (717) Creating and Maintaining POs Solicitations and Contracts regional training has been canceled due to low response.
62 Technical Scoring Sample Technical Scoring Sheet Maximum Points = 350 * Any supplier scoring less than 70% of highest scoring proposal is considered non-responsible. * If maximum points = 350 * Then 70% of maximum points = 245 * Therefore, suppliers 4, 5, 6 and 8 are eliminated. Rater ARater BRater CRater DRater ERater FRater GRater HTotalAvg. Score Points AllottedRank Supplier Supplier Supplier Supplier Supplier Supplier Supplier Supplier