Presentation on theme: "1 January 27, 2009 9:00 am to Noon. 2 PPC AGENDA 1.BMWBO – Gayle Nuppnau 2.Materials - Walt Quade 3.Correctional Industries – Anthony Miller 4.Services."— Presentation transcript:
1 January 27, :00 am to Noon
2 PPC AGENDA 1.BMWBO – Gayle Nuppnau 2.Materials - Walt Quade 3.Correctional Industries – Anthony Miller 4.Services – Roxana Dietz 5.BSSO – Scott Pepperman 6.SRM – Cheryl Kleeman 7.Procurement Handbook – Cheryl Kleeman 8.Legal – Chuck Anderson 9.Green Procurement – Joan Kraft 10.Sole Source Web-site – Sue Plecker 11.Training – Jeff Mandel 12.Finance Transformation – Jeff Mandel Appendices Appendix A – Procure to Pay Appendix B – Education Curriculum Q & A Appendix C – Phased Implementation for Non-PO Appendix D - Grainger Appendix E - BI Old Workbook vs. New workbook Comparison
3 RFP/RFQ Cover Letter
5 Procurement Handbook Part 1 Chapter 3 Responsibilities (4 e) Notification of contract commitments - Contract fully execution - 10 days BMWBO must be notified - Proposed changes to contractual DB participation must be reported to BMWBO Procurement Handbook
6 Less than $50,000 – Program does not apply More than $50,000, but less than $250,000 – Using agency makes responsiveness determination More than $250,000 – BMWBO makes responsiveness determination NOTE: Amounts include any renewals STD-168 – MBE/WBE Subcontractor and Supplier Solicitation and Commitment Form STD-168
7 Determining Responsiveness Presumed responsive if minimum participation levels are met (5% MBE 3%WBE) If MPLs are not met, an evaluation must be conducted -Is STD-168 included -Properly completed -Has contractor solicited both MBEs and WBEs for all work which they intend to subcontract, and for all supplies/materials required for the job? Has Contractor Certified That No Subcontracting Opportunities Exist, and No Materials Will Be Required (Or Are Already Available)? STD-168
8 Examples of Non-Responsive Bid Submissions STD-168 not submitted, or left blank Contractor solicited only MBE or WBE firms (not both), and did not explain this deficiency Contractor only solicited MBE/WBE firms not currently certified by DGS Contractor received quotes from MBE/WBE subcontractors or suppliers, but did not provide an explanation for not committing to them STD-168
9 Non-Responsive Options Go to next low bidder Rebid Override - Part 1, Chapter 20 STD-168
10 STD 168
11 STD 168
12 Under Criteria for Selection, section III-4, if any Offeror is non-selected based on the 70% rule, DB must be rescored – Narrative –RRP/RFQ Number –Name/s of Offerors –Mr. Stephen Nedimyer, Scoring Update
13 Small Fuel Delivery Program: ITQ Contract for deliveries less than 5000 gal. –This is a contract of convenience. –Qualify suppliers by county. Agencies follow procurement procedures based on low dollar amount. Agencies obtain Small Procurement Policy and obtain quotes from qualified suppliers in county, select best price. –Invoicing Quoted prices firm, less potential for errors. Mandated utility card use for orders under $5000 should remove bulk of past-due payment issues. Materials Contract Updates
14 Road Salt Many Agencies have depended on Penndot for Salt for their locations in the past. Penn Dot has stopped supplying this service in many of their districts. Please make sure your Agency sends BOP a requirement for the upcoming 2009/2010 Winter Season to assure that you have a supply available. Please send requirement to: Joel Shiffler
15 Contract Update Contract Number Contract Title StatusCommodity Manager Material Medium Duty TrucksAwardedCraig WolfordWork Trucks Road patching Equipment AwardedCraig WolfordKettles, patchers, Reheaters Aluminum Coil StockTo be bidJoel ShifflerLicense Plate Stock Road SaltBeing being preparedJoel ShifflerRoad Salt Floor PolishersAwardedMary RandolphFloor Polishers and Vacuums WheelchairsBids being EvaluatedMary RandolphWheelchairs ForkliftsIn award processCraig WolfordLifts Commercial Food Equipment In award processMary RandolphCommercial Food Equipment NewPolice Lighting and Accessories In award processCraig WolfordAccessories for Police
16 Contract Update Contract Number Contract Title StatusCommodity Manager Material CementAwardedJoel ShifflerCement Corrugated metal Pipe AwardedJoel ShifflerPipe Bituminous Plant Mix Award in progressJoel ShifflerPlant Mix Bituminous Liquid patch AwardedJoel ShifflerLiquid Plant Mix NewFrozen Vegetables, Turkey, Bu Bid being Prepared Joe GurzendaVarious Food Items PharmaceuticalsBid being prepared Joe GurzendaDrugs NEWFuel ManagementAward in progressJoel ShifflerFuel Additives Energy Mgt Services ITQJoel ShifflerElectricity, natural gas Heating Oil #2AwardedJoel ShifflerOil Unleaded gasAwardedJoel ShifflerGas
17 Contract Update Contract Number Contract Title StatusCommodity Manager Material Liquid FuelAwardedJoel ShifflerFuel, Large Volume Heating Oil #4AwardedJoel Shiffler#4 Heating Oil Waste OilAwardedJoel ShifflerWaste Heating Oil CarpetAwardedJP DuvallCarpet GlovesAwardedJP DuvallGloves VWR MISC LAB Equip AwardedJim PinciGeneral lab Equip not covered by Office FurnitureBeing BidBrian ReinoehlOffice Furniture JanitorialAwardedJim PinciConsumables and paper Product
18 Pennsylvania Correctional Industries Toll-free: 877-ORDER-CI On-line: Anthony Miller, Director Teaching Inmates to Work in Pennsylvania Pennsylvania Correctional Industries
19 Service Contract Updates
20 Service Contract Updates
21 IT/ITQ UPDATE Phase 1 – Mid to Late February 2009 Performed supplier demo/testing of ITQ Supplier module on December 31, 2008 Currently, finalizing SRM user authentication process with IES Master IT Services ITQ will be published Suppliers begin preparing online qualification proposals Phase 2 – Mid March to Late April 2009 Electronic receipt of supplier qualification proposals Supplier qualification proposals are evaluated and results posted Begin creating contracts in SRM Phase 3 – May 1, 2009 Agency view of qualified suppliers and their Company Profile Company Profile will include existing functionality in current ITQ website plus items such as: Financials, Rate Card and Agency Performance Agencies begin solicitations Status of Enterprise ITQ Web-Site Development
22 IT/ITQ UPDATE TASK START COMPLETE Obtain Form Approval for Contract12/08 01/09 Hold Supplier Info Sessions on New ITQ02/09 03/09 ITQ Publication03/09 Vendor Qualification Process02/09 New ITQ Procurements can begin to be posted04/01/09 Deadline for work under Old ITQ06/30/09 New ITQ Contract Begins07/01/09 ITQ Timeline
23 Dell purchase of ASAP 01/09/2009: Assignment letter received 01/09/2009: ASAP started sending assignment letters out to agencies 01/20/2009: Letter sent to all agencies to continue business as usual under current contract Next Steps: –DGS will establish new contract and submit for signatures –DGS & IES will test new web site and punch-out –Once the new contract approved DGS will send out instructions to agencies. This will entail: Agencies writing new POs under new contract to replace POs under old contract Canceling any old POs Address Service Issues Dell/ASAP Contract
24 Delegation Request –Method of Procurement Added RFQ for IT-ITQ Delegation Request Instructions –Expanded Roles & Responsibilities
25 Notice of Forthcoming Procurements Forward the Notice of Forthcoming Procurements for upcoming solicitations which will: –Exceed the dollar thresholds as established in the Procurement Handbook, Part 1, Chapter 7 Thresholds and Delegations and OA/OIT Directives to DGS/BOP. –The notice should be submitted at least 12 months, before issuance of a solicitation (IFB/RFP/RFQ against the IT/ITQ). DGS/BOP may –Recommend the Agency submit a delegation request. –As the central procurement organization, lead or provide guidance and consultation on the procurement; –Consider the circumstances of the individual procurement, such as the complexity, availability, and urgency, when establishing the solicitation response time. In the near future DGS/ BOP will be posting pertinent information from the Notice of Forthcoming Procurements on eMarketplace in order to: –Increase competition –Broaden industry participation –Assist small disadvantaged business concerns, enterprise zone, and women-owed and minority-owned small business concerns in obtaining information on upcoming procurements.
29 SRM – BI Reports Business Warehouse (BW) is now called Business Intelligence (BI) Effective December 15, 2008
30 SRM – BI Reports
31 SRM – BI Reports Data Target: Procurement reports data now includes detailed information that previously was gotten via jump queries Examples: PO detail PO number Line item MWBE indicators Replacement of old reports –Reviewed usage statistics for existing workbooks –Reviewed BW change requests Using new data target made determination on which workbooks needed to be recreated –Consolidated many workbooks into one which provides all data Old workbook vs. new workbook comparisons are in the appendix Overview of Changes
32 SRM – BI Reports Chose workbooks to recreate based upon usage statistics in 2008:
33 SRM – BI Reports Consolidation of reporting roles –Before: Five procurement roles –Now: One procurement role –New Role: YMW:SRM, Procurement Reporting Subfolders for specific kinds of reports Most new reports found in Purchase Orders and Contract subfolders SRM Only reporting will be labeled as such (within the PO folder)
34 SRM – BI Reports User Impact: –All users with items saved as FAVORITES will have to delete and recreate them –Users will have one role mapped to them instead of many –Users will be able to drill to detail without having to jump to another query –Less confusion on which workbook will provide the answer you are looking for –The new workbooks have less restrictions which gives users more flexibility
35 New BI Reports Training on New Reports Classes available as of January 20, 2009 Visit the Training Centers Community Calendar on the DGS Website for datesTraining Centers Community Calendar Sign up via E-LMS DGS Training website provides –Link to E-LMS –Guide to use of E-LMS
36 SRM – BI Reports A failure on data extraction for Global Spend occurred The affected reports are: –Top 25 Suppliers and Categories –Invoice Values –Global Spend Document Level Details The data contained in the Global Spend workbooks is as of January 15, 2009 and no later Anticipated fix time: Mid-February Updates will be forthcoming Technical Difficulty.... A Failure Has Occurred
37 Supplier Enablement ERS – Current Suppliers Todd Heller, LLC – Paint (PennDot) Ennis Paint Corp – Paint (PennDot) Flor Dri Supply Co – Calcium Chloride (DGS) Greenwood Manufacturing – Corrugated Cartons (DGS) Larrys Lumber & Supply – Rock Salt (DGS) ERS – Pilot Activity Initial go-live September 10th Approximately 15 to 20 orders created, receipted and payments processed to date Increase in activity: DOT paint season to begin mid-February ERS – Program Expansion Tobacco Contract PIBH Contract
38 Supplier Enablement SRM Punch-outs: Staples –Research conducted on current StaplesLink functionality Order status Order acknowledgement On-line returns Personal shopping lists Personalized stamps –Results presented at 12/10/08 Procurement Connection Group meeting –Group provided feedback –Outcome: DGS will not pursue punch-out at this time
39 Supplier Enablement to Cheryl Kleeman Deadline for submission: Tuesday, February 17, 2009 SRM Punch-outs: MeadWestvaco –In development process –1 or 2 agencies to pilot (L&I & ?) –Information needed from agencies: MRP: Agencies currently running MRP must provide a list showing the material master for each item Agency Logo Artwork –Refer to: Commonwealth Style Guide –MeadWestvaco graphic requirements (provided)
41 Supplier Enablement MeadWestvaco graphic requirements continued
42 SRM Issue Bid submission error message –Price entry Warning Must be in the format~__.__~ –Does not indicate which line item the error message refers to –Hard error messages mixed with soft error messages Resolution Tip message created IES looking into re-ordering error messages –Hard error stops to the front Effective date: To be determined. A formal notification will be sent to all agencies when a date has been set
43 SRM Subject: Ship to addresses Effective date: To be determined. A formal notification will be sent to all agencies when a date has been set Change: SRM will require a valid ship to address on all shopping carts –XML suppliers receive on a weekly basis a list of valid ship to addresses with a system generated number –A validation has been added preventing requisitioners from overwriting the Exec Branch entry in the Name field –This validation was required to facilitate the transmission of XML purchase orders to suppliers –The validation is required to ensure an exact match of the address data with the address number
44 SRM System messages have been created to communicate these validations –If a requisitioner overwrites the Name field, the message informs the creator that the field cannot be overwritten, please re-select a valid ship to address: –If a requisitioner has not selected a valid ship to address, a system message will instruct the creator to select a valid ship to address:
45 SRM Set Delivery address attributes –Do not attempt to change the address –Will not encounter any system messages Setting Your Attributes 1. My Settings: Change Attributes 2. Attribute: Select Delivery address 3. Enter Agency SRM address codeAgency SRM address code 4. Click save
46 SRM Requisitioners relying on the Name field to add specific address information should: –Follow the current process Request a new address number or Change existing address data Use Ship To Address Change Form on the DGS websiteShip To Address Change Form –Agencies can make the needed changes in the c/o Agency/Division field in place of the Name field: Example c/o Agency/Division:Jane Doe, DOT, Dist 08, Dauphin Cty Floor or Room#/Bldg:Keystone Bldg Rm 324 Street:41 N. Commonwealth Ave, 3rd floor
47 REDUCING INQUIRIES to CSC Agencies can Reduce the Number of Inquiries to the CSC by: –Limiting Inquiries to Only those Related to CSCs Core Mission: SRM Questions Only –Ceasing Inappropriate Inquiries to the CSC, i.e., Advising Suppliers to Contact the CSC for Assistance with Inquiries that are Specific to Agency Related Bids in SRM –The CSC is Not Familiar with Agency Bids and the associated, Specifications, Statement of Work, Terms and Conditions and Documentation –The Agency should Assist the Suppliers with all Inquiries that are Specific to Agency Related Bids
48 REDUCING INQUIRIES to CSC Continued –Ceasing Inappropriate Inquiries to the CSC The CSC is Available to Provide Assistance with Generic Inquiries Related to Processing Bids –Instructions for Bidding in SRM: Attempting to Purchase an Item that is Not on a Specific Contract –Agency Purchasing Agents should Contact the Appropriate Commodity Specialist to Identify why an Item is Not on a Contract –This is Not a System Problem Identifying the Number of Envelopes in a Box Issuing Payment for an Invoice
49 Procurement Handbook Revisions PART I: Policies and Guidelines Chapter 1, General Provisions: Chart added that defines areas where DGS sets agency procurement policy Rev. Date 11/06/08 Chapter 2, Definitions: Definition of subscription added Rev. Date 01/07/09 Chapter 6, Methods of Awarding Contracts: No bid contract Letter requirement 70% requirement for BAFO or negotiation Rev. Date 10/28/08
50 Procurement Handbook Revisions PART I: Policies and Guidelines Chapter 7, Thresholds & Delegations: Threshold matrix updated to reflect accurate descriptions Language regarding lease-hold construction was removed – (Note – This language will be put back in with a revised threshold) Rev. Date 11/25/08 Chapter 50, Public Access to Procurement Information: Entire chapter was revised Rev. Date 12/09/08 Chapter 20, Nondiscrimination: Language regarding use of Form GSMWBE-16, MBE/WBE Subcontractor and Supplier Certification Solicitation and Commitment Rev. Date 10/29/08
51 PART II: Procurement of Supplies Procedures Chapter 5, Sole Source Procurements: Number of days completed source justification form will be posted to DGS web changed from 7 to 10 Political contribution letter requirements Rev. Date 10/28/08 Procurement Handbook Revisions
52 PART III: Procurement of Services Procedures Chapter 4, Competitive Sealed Bidding: Dollar threshold removed and reference to threshold matrix in Part I, Chapter 7 was added Rev. Date 10/27/08 Chapter 5, Sole Source Procurements of Services: Number of days completed source justification form will be posted to DGS web changed from 7 to 10 Clarification on agency responsibility to send political contribution letter Clarification on use of Form STD-168, MBE/WBE Subcontractor and Supplier Certification Rev. Date 10/29/08 Procurement Handbook Revisions
53 PROCUREMENT ORGANIZATION AND RESPONSIBILITY UNDER THE PROCUREMENT CODE
54 Independent Agency EPO Background: Independent agencies utilizing SRM document type services EPOs. This routes to BOP for approval Issues: 1.BOP does not have authority for service procurements for independent agencies 2. Without a document type = EPO, Treasury will not pay invoices that precede the PO (due to emergency) and lack of evidence of competitive bidding. Options: 1.Independent agencies use standard doc type and indicate emergency situation in approval notes section of PO when >$5K. 2.Continue with current process 3.Long term - Create new EPO doc type for independent agencies Feedback?/Thoughts?
55 Payment Terms Commonwealth Payment Terms have NOT Changed to Net 45 –45 Day Payment should NOT be mentioned as this is NOT Commonwealth Policy Responding to Suppliers Inquiries Relating to Receiving Payment Within the Established Time Periods –Standard Response: The Commonwealth has, and will, continue to make reasonable efforts to pay within time periods established by contract, but payments may be delayed based on the timing of the receipt of Commonwealth Revenue.
56 Payment Terms Legal Requested Elimination of Payment Terms from Purchase Orders Payment Terms should Reflect the Contracts Terms and Conditions –Present Purchase Order States: Payment Terms – Net 30 –Future Requested a System Change to Eliminate the Notice of Payment Terms – Net 30 from Purchase Orders –The Payment Terms – Net 30 is inconsistent with the Payment Terms in the Standard Contract Terms and Conditions
57 Right to Know
58 Right to Know Continued
59 Green Procurement Definition –Green or Environmentally Preferable Procurement (EPP) is the selection of products and services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose. Purpose –To advance the protection of the environment and support sustainability by leveraging the purchasing power of the Commonwealth –To increase the purchase of energy efficient, recycled, and less toxic products and services that also reduce waste –To include environmental considerations to the price and performance criteria –To identify and reduce the environmental impact of an organizations activities and maximize resource efficiency Policy –Currently in Legal for review Guidance Document for Commodity Specialists –Environmentally Preferable Product (EPP) Analysis for Commodity Plan –Recommended Contract Language Website in Development Web-based Training (Will become part of certification courses)
60 Green Procurement Energy Expo --- Conservation at Home and at Work –Keystone Building on Thurs., April 30 th –Collaborative effort between PMA Teams from DGS Procurement & DGS Energy Management –Agenda (currently under review) Secretary Creedon scheduled between 11am and 2pm Kick-off of Green Procurement initiative –Contacting vendors –Guest Speaker - Scot Case, president of EcoLogo (founded in 1988, with 120 standards and 7,000 certified products)
61 Sole/Single Source Procurements Objective – Secretary & Governors initiative to make Sole/Single Source procurements more readily available for public scrutiny.
62 Benefits –Public Notice –Electronic internal agency approvals via –Electronic DGS internal approvals via –Archiving of Source Justification form and other attachments for 3 years. –Internal DGS reporting features –Elimination of shopping carts for Sole/Single Source requests for services –Automatic notification to Dept of State Sole/Single Source Procurements Contd
63 Agency completes online SJF (including approvals) Agency submits electronic SJF form to DGS DGS Materials reviewer receives to review SJF Agency will receive that DGS Accepted the form and can finish Processing Shopping cart BOP Internal Process DGS Material reviewer assigns to CS for review CS completes Determination Summary, attaches to SJF & approval form CS routes to CPO for approval CPO approves & sends back to CS CS processes SPR & makes up PO for Board release & approval Upon final release by Board, Material reviewer will update eMarketplace with award info Agency will receive stating fully approved Dept of State will receive PO/Supplier information Agency prepares shopping cart & places on hold Single/Sole Source Procurement Process for Materials DGS Materials reviewer accepts or rejects SJF Accepted Rejected, Shopping Cart is returned
64 Agency completes online SJF (including approvals) Agency submits electronic SJF form to DGS DGS Services reviewer receives to review SJF Agency will receive that DGS Accepted the form Agency will receive stating fully approved Dept of State will receive PO/Supplier information Agency may process PO DGS Services reviewer accepts or rejects SJF BOP Internal Process DGS Services reviewer assigns to CS for review SJF routes for DGS approvals Update posted on eMarketplace with proposed award into. Single/Sole Source Procurement Process for Services Rejected, notification Accepted
65 Key Dates –Demo was provided to the eMarketplace Agency Focus Group on on 01/07/09 –Testing was conducted with agency personnel on 01/12/09 –Anticipated go live date will be sometime in February. Sole/Single Source Procurements Contd Other No Substitutes - explain the request in the comment section of the Shopping Cart End User Procedures are in the process of being created Have received already received some feedback for future enhancements.
66 Future Training Schedule & Location Conducted on a quarterly basis. To date 31 students have been trained. Total of 8 students are eligible for Purchasing Agent Certification 2 – Pennsylvania State Police 2 – L&I 1 – Agriculture 1 – Liquor Control Board 1 – Department of Military & Veterans Affairs 1 – DPW Next session – February , 2009 BOP Training Manager will review enrollment and wait list to make a determination on the final class roster. Newer PAs have preference. This course will be available for self-enrollment through ELMS. Please visit BOPs Training Community Calendar at Procurement Policy & Process Purchasing Agents Training
67 Training PIBH Web Based Course –The purpose of the course is to provide requisitioners and purchasers with an overview of the statutory requirement to purchase materials manufactured and services performed by persons with disabilities. Course will be available through e-LMS (approx. length 20 minutes) Estimated date of availability is mid-late March 2009 Targeted audience is requisitioners, purchasers, commodity specialists. –Mandatory for targeted audience, optional for all other Commonwealth employees Includes Knowledge Check –Course covers 6 topics: Commonwealth Procurement Code, Section 520 PIBH Overview DGS-PIBH Operational Agreement DGS Requirements Contract Other Requirements Contracts that Overlap and/or Conflict with the PIBH Contract Includes Reference Material, such as general provisions for purchasing PIBH materials and services, and the process for requesting fair market determination.
68 Training RFP Course Pilot was successful Participants had varying levels of experience – 0 RFPs to > 10 RFPs Thanks for participation and feedback 17 Participants 9 Participants; 6 Agency Education Pennsylvania State Police Corrections PennDot OA L&I 8 DGS Commodity Specialist Course was modified based on participant feedback Next scheduled RFP course - January 28, 2009 Course will be offered twice annually
69 Training New SAP Overview and Process Course Created to assist individuals who still need to create purchase orders in SAP. Course contains information on SAP Navigation, SAP Overview, and SAP Processes including, but not limited to Requisitioning, Purchase Orders, Goods Receipts, Invoicing and reports. This two day course will be offered on a quarterly basis with the next course scheduled on March 3-4, Please visit BOPs Training Community Calendar at for self-enrollment through E-LMS.www.dgs.state.pa.us BW Procurement Reporting Course Reminder -- please share the training announcements for the months of January and February with your end users. Next scheduled sessions are: January 20 and 21, 2009 February 4 and 19, 2009 Web-based Negotiation Course!
70 Periodic Invoicing Plan Issues Payment issues - Purchaser: –Not utilizing the proper remit-to address (ending in -901) => no payment –Not marking the Delivery Complete box on any line items in the PO => no payment –Changed/Cancelled the PO and failed to issue the changed version =>supplier still expecting payment Other: –Inconsistent in entry of serial #s within PO => BOP has difficulty tracking the serial number through the numerous POs covering the 48-month lease. Example: Ser#C , Serial # C , C , #C –Standard Format = Serial#_C########
71 Training Periodic Invoicing Plan Purchase Orders (IP POs) The Training Team will be offering an instructor-led course to thoroughly review the IP PO process, and how to run reports to monitor the monthly payments This course is available for self-enrollment through ELMS. Please visit BOPs Training Community Calendar at Regional Procurement Training Opportunities A survey has been sent out to the Procurement Policy Council and Training Officers to gauge the interest level for Regional trainings for the following courses: Requisitioning/Receiving (2-Day) Creating/Maintaining Purchase Orders, Solicitations/Contracts (3-Day) We plan to hold training this spring in Greensburg, Meadville, King of Prussia and Selinsgrove. The scheduling and location of these trainings will depend on the number of interested participants.
72 Procurement Pulse DGS Bureau of Procurement has developed the newsletter Procurement Pulse which will be issued COPA-wide on a quarterly basis First issue of publication will be on 2/2/2009 Topics will include information and updates related to existing/upcoming contracts/solicitations within the Materials & Services Divisions, Quality Assurance, Business Process Improvement Division, and SRM/Core System (status, updates, etc.) To access the Procurement Pulse Newsletter, visit the DGS Procurement and search within the Agency Dashboard section.www.dgs.state.pa.us\procurement
73 Procure to Pay – Solicitation Risk Recommendation Future Process Going forward, comptroller will make a risk based determination as to when they will participate in the service solicitation process. A form will be required when agencies request DGS delegation as well as for agency delegated procurement. DGS Service Delegation Process – The criteria will be included as part of the current DGS delegation request form and the form will be submitted first to DGS and then from DGS to the comptroller. Agency Service – The form will be sent directly to the comptroller for review and decision. Next Steps DGS and Agency Delegation Form The Form is expected to be implemented on 2/22. DGS/OB will issue a communication as to when the form and process will go into effect and where to submit the form.
74 Request for Delegation Form
75 Procure to Pay – Signature Authority for Invoice Payment Current StateFuture State Per Management Directive agency identifies an individual who should be granted the authority to approve invoices for payment. A Signature Authorization form is completed and the form is kept on file with OB, DGS and Treasury for audit purposes. Agency identifies an individual who should be granted the authority to approve invoices for payment. Individual is role mapped to either the Invoice Receiver role or the Invoice Verifier role. No additional forms are required since role mapping will serve as proof of approval authority for Treasury. Role mapping is not based on dollar value so agencies should evaluate the individuals and roles accordingly. The role mapping change applies only to payment of invoices, all other processes remain as-is.
76 Procure to Pay – Goods Receipt Entry Future Process Going forward, entry of a Goods Receipt (GR) will be required prior to processing of a market-based PO invoice or an invoice with multiple account assignments. For these two invoice types, the OB invoice processor will reject an invoice that does not have a GR. The invoice will then route to the Agency PO Line Item Reconciler, who will work with the Goods Receiver to make sure a GR is entered. Upon entry, the Agency PO Line Item Reconciler will accept the invoice and it will then route back to the OB Invoice Processing Unit for review. Rationale Market Priced – Invoices cannot be entered for market priced POs therefore the only method to indicate to the agency that the invoice has arrived is via workflow to the agency. Account Assignments – When a GR is not completed, the invoice processor must calculate the split which is a labor-intensive, time-consuming process only required due to a lack of proper receiving.
77 Procure to Pay – Supporting Documentation Where should supporting documentation be mailed in the future? If documentation is currently required to be attached when submitting your invoice to the Comptroller office for processing, in the future it should be mailed along with the invoice to the appropriate new post office box for pick-up and processing by DOR. If documentation is currently NOT required to be attached when submitting your invoice to the Comptroller office for processing, in the future it should continue to be mailed to the agency for retention and the invoice should be mailed to the appropriate new post office box for pick-up and processing by DOR. Due to the varying requirements for supporting documentation within an agency and/or program area, it would be best for each agency program area to tailor the Non-PO vendor letter to indicate where supporting documentation should be sent.
78 Workflow for Agency Fiscal Review of Shopping Carts Required Actions: The recommendation for fiscal review in shopping carts were received and will be live in production 2/6/09. We will be notifying agency project managers this week that cart changes and role mapping will be ready with an effective date of 2/6/09. These changes will impact all agencies with the exception of Penn Dot with whom we are working for a later date to allow time for training.
79 Process and Technology Development of desktop procedures is currently underway in payable services. Agency procedures are part of this development Cycle 1 integration testing for PO and non-PO invoice processing began in December Cycle 2 integration test scenarios are in development, with testing targeted to begin 2/16 Organization OB Organization changes in review with OA HR New location for Office of Comptroller Operations will be Forum Place Building – 555 Walnut Street Relocation of staff to new facility scheduled for April Communications and Training Starting awareness sessions for OB staff - PO Invoice Processing with OB Document Review and Control (DR&C) Group on 12/17; subsequent meeting scheduled for 1/15 to discuss Non-PO Invoice Processing and Exceptions Processing. Meeting with OB General/Federal/Special Accounting Group scheduled for 1/21 Analyzing results from Finance Transformation Survey (change readiness assessment) to OB staff on 11/21 Planning for Jan/Feb 09 outreach to Non-PO suppliers (invoice requirements, mailing addresses, etc.) and Feb 09 outreach to PO suppliers (new mailing address, rejection procedures, etc.) Development of training materials underway See Appendices A, B, C Overall Project Update
80 Appendix A Procure to Pay – Incorrect Invoice Submissions Upon Go-Live, Wave 1 vendors should send all invoices to DOR for scanning and indexing. There will be separate post office box addresses for PO, Non-PO, Grant and Utility invoices Incorrect ActionResolution Vendor incorrectly sends invoice to Agency or Comptrollers Office Desired Path: Agency or Comptroller identifies whether it is a PO, Non-PO, grant or utility invoice The Agency or Comptroller writes any missing indexing information, if known, on the invoice and sends via interoffice mail to QC Agency or Comptroller s/mails a form letter to the vendor, reminding them of the new invoice submission address (based on invoice type). This form letter will be provided by the FT project prior to Go-Live QC confirms that it is correctly identified as PO, non-PO, grant or utility and submits to DOR for scanning Alternate Paths: If the indexing information is missing and is not known, the Agency or Comptroller contacts the vendor for the missing information. If the vendor cannot provide the information, the invoice is returned to the vendor along with a form letter. If QC finds that the invoice document is incorrectly identified, it provides the correct invoice type and sends to DOR for scanning Vendor sends a PO invoice to wrong DOR invoice mailing address (Non-PO, Grant or Utility) DOR identifies incorrect submission because a PO number is listed on the invoice. The invoice will be provided to QC QC confirms (approves) that it is a PO invoice and places in DORs PO invoice pile waiting to be scanned. If PO invoice is rejected, then invoice returned to vendor QC s or mails form letter to vendor reminding them of the correct address
81 Appendix A - Contd Procure to Pay – Incorrect Invoice Submissions Incorrect ActionResolution Vendor sends a Non-PO invoice to wrong DOR invoice mailing address (PO, Grant or Utility) DOR identifies incorrect submission because a location code is listed on the invoice. The invoice will be provided to QC QC confirms (approves) that it is a Non-PO invoice, verifies the location code (and update if needed), and places in DORs Non-PO invoice pile waiting to be scanned. If Non-PO invoice is rejected, then invoice returned to vendor QC s or mails form letter to vendor reminding them of the correct address Vendor sends a Grant invoice to wrong DOR invoice mailing address (PO, Non- PO or Utility) DOR identifies incorrect submission of Grant invoice based on visual inspection of the invoice. The invoice will be provided to QC QC confirms (approves) that it is a Grant invoice and places in DORs Grant invoice pile waiting to be scanned. If Grant invoice is rejected, then returned to vendor QC s or mails form letter to vendor reminding them of the correct address Vendor sends a Utility invoice to wrong DOR invoice mailing address (PO, Non- PO or Grant) DOR identifies incorrect submission of Utility invoice based on visual inspection of the invoice. The invoice will be provided to QC QC confirms (approves) that it is a Utility invoice and places in DORs Utility invoice pile waiting to be scanned. If Utility invoice is rejected, then returned to vendor QC s or mails form letter to vendor reminding them of the correct address Vendor sends confidential documentation to DOR DOR pulls all paper with confidential information and provides to QC for review QC provides confidential material to the relevant agency via interoffice mail Agency s or mails form letter notifying vendor that confidential documentation should not be sent to DOR but should be sent separately to the agency Vendor sends supporting documentation to DOR without an invoice DOR forwards invoice-related supporting documents to QC for review QC provides supporting documentation to the relevant agency via interoffice mail Agency identifies related invoice and attach to that invoices SAP document Agency s or mails form letter notifying vendor that supporting documentation must be sent with invoice to DOR
82 Appendix B Education Curriculum Questions & Answers 1.Do agencies need to participate in the Exceptions Processing course? No, as this class is geared toward OB staff. PO and Non-PO exceptions will be covered in agency- specific courses. 2.Suggestion to segment Invoice Processing Overview course into 2 courses – 1 for PO and 1 for Non-PO The Invoice Processing Overview is web-based training, providing a high-level overview of the entire P2P process, and is intended for all OB and agency staff involved in PO and Non-PO invoice processing. 3.Does the Non-PO Invoice Processing course need to include content for both agency receivers and verifiers, since verifiers are only confirming receipt of goods and/or services? Yes, because in some cases agency receivers may also have the verifier role. The plan is to also develop procedure for distribution by the agency to individual who only serve as verifiers. NOTE: Verifiers approve invoices for payment, not just confirm goods received. 4.Will a web-based SRM approver course be developed, given the new requirement to perform fiscal reviews for shopping carts? No, DGS already has appropriate training material developed for approvers in SRM. 5.Will reporting be included in the appropriate FT training courses? Yes 6.Tell me more about the End-User Support/Deployment Team Preparation course We need to establish contacts within OB and agency organizations to log, handle and/or route issues for resolution for approximately the first 90 days following deployment. Also included here will be procedures for resolving issues.
83 Appendix C Phased Implementation for Non-PO
84 Appendix - D
85 Appendix - D
86 Appendix E SRM – BI Reports Existing Role: Purchase Orders Existing WorkbookNew Workbook PO Quantities Analysis PO Overview Quantity and Value of Emergency Purchases PO Overview PO Values by Geographic Area PO – FY Comparison STO Values STO Overview PO Summary by Business Area PO Overview Purchasing Group Analysis – Volume PO Overview Purchasing Group Analysis – Values PO Overview Purchasing Group Emergency Purchases % of Total PO Overview
87 Appendix E SRM – BI Reports Existing Role: Purchase Orders Existing WorkbookNew Workbook Contract Purchasing Group Monitoring Same workbook and query will be used Pareto Analysis by PO Volume (80/20 Rule) Same workbook and query will be used Maverick Buying Analysis Same workbook and query will be used
88 Appendix E SRM – BI Reports Existing Role: Material / Service Existing WorkbookNew Workbook Percent of Quantity Delivered Delivery Overview Percent of On-Time Deliveries Delivery Overview Receiving Report -- % of Received Qty PO Overview or Consumption Reports Delivery Quantity Analysis Delivery Overview Material Ordered 12 Month Compare PO – CY Comparison Delivery Days Analysis Delivery Overview Over Delivery Delivery Overview Daily Consumption Report Same workbook and query will be used. Consumption Report Same workbook and query will be used.
89 Appendix E SRM – BI Reports Existing Role: Vendor Existing WorkbookNew Workbook Percent of Quantity Delivered Delivery Overview Percent of On-Time Deliveries Delivery Overview
90 Appendix E SRM – BI Reports Existing Role: Sourcing Existing WorkbookNew Workbook Contract Usage by Grouped Amounts Contract Usage Report Contract Usage by Grouped Amounts PO Against Contracts Maverick Spend Number and Value of PO Items for Statewide Contracts Contract Type Report Number and Value of PO Items for Agency Contracts Contract Type Report Number and Value of PO Items for Contract Types Contract Type Report RFQ Analysis Future Addition Purchasing Group Activities by Contracts PO Overview
91 Appendix E SRM – BI Reports Existing Role: Sourcing Existing WorkbookNew Workbook Contract Purchasing Compare with Detail Same workbook and query will be used Contract List with Validity Dates Same workbook and query will be used
92 Appendix E SRM – BI Reports Existing Role: SRM Reporting Existing WorkbookNew Workbook Top 25 Suppliers & Categories Same workbook and query will be used Invoice Values Same workbook and query will be used Global Spend Document Level Details Same workbook and query will be used SRM PO Status Same workbook and query will be used SRM PO Overview Same workbook and query will be used Document Flow: Shopping Cart to PO Same workbook and query will be used GR Report (Non-Inventory) Same workbook and query will be used Daily Receipts and Issues (Inventory) Same workbook and query will be used
93 Appendix E SRM – BI Reports Existing Role: SRM Reporting Existing WorkbookNew Workbook Daily GR Report (Non-Inventory) Same workbook and query will be used Movements Detail Same workbook and query will be used Shopping Carts Still to be Approved Same workbook and query will be used Overview of Shopping Cart Approvals Same workbook and query will be used Shopping Cart Status Same workbook and query will be used Shopping Cart Overview Same workbook and query will be used Shopping Carts without Follow-On Documents Same workbook and query will be used Contracts by Vendor Same workbook and query will be used
94 Appendix E SRM – BI Reports Existing Role: SRM Reporting Existing WorkbookNew Workbook Contracts per Purchasing Org / Purchasing Group Same workbook and query will be used Expiring Contracts Same workbook and query will be used