1 General Services Department State Purchasing Division ePROCUREMENT PHASE II Project Certification – Initiation/Planning Phase October 28, 2009

2 ePROCUREMENT PHASE II SPD is Requesting Release of $100,000 for the e-Procurement Phase II Project – Initiation/Planning Phase

3 eProcurement Phase II eProcurement Module Executive Summary SPD Responsibilities SPD Responsibilities Purchasing of Tangible Goods, Services, and Construction Purchasing of Tangible Goods, Services, and Construction Training and Assistance (Agency and Vendor Personnel) Training and Assistance (Agency and Vendor Personnel) Small Business Assistance Small Business Assistance Vendor Registration Vendor Registration Procurement Code Administration Procurement Code Administration

4 ePROCUREMENT Phase I Accomplishments Optimization A Accomplishments Optimization A Accomplishments “Go-live” on 10/9/09 with Optimization A capabilities “Go-live” on 10/9/09 with Optimization A capabilities Increased Granularity of Commodity Codes Increased Granularity of Commodity Codes Streamlined and Consistent Data Entry Streamlined and Consistent Data Entry Resolution of Vendor Data Discrepancies Resolution of Vendor Data Discrepancies Health Check Recommended Roadmap Health Check Recommended Roadmap Implement Optimization A Implement Optimization A Implement Optimization B items Implement Optimization B items Upgrade the SHARE Application Upgrade the SHARE Application Implement eProcurement Implement eProcurement Implement Strategic Sourcing Implement Strategic Sourcing Implement Supplier Contract Management Implement Supplier Contract Management

5 ePROCUREMENT PHASE II Next Steps Because the upgrade of the SHARE Application from release 8.8 to 9.1 will not be viable before FY12, the Team considered alternative next steps Because the upgrade of the SHARE Application from release 8.8 to 9.1 will not be viable before FY12, the Team considered alternative next steps The following 3 options were analyzed The following 3 options were analyzed Implement the Optimize B Capabilities Implement the Optimize B Capabilities Implement eProcurement Module for pre-identified Pilot Agencies Implement eProcurement Module for pre-identified Pilot Agencies Implement Strategic Sourcing at SPD Implement Strategic Sourcing at SPD

6 ePROCUREMENT PHASE II eProcurement Module “ The overarching achievement of the implementation of the eProcurment module will provide a more effective, efficient purchasing operation; reduce waste, appropriate and effective use of public funds, streamlined and cooperative interactions with New Mexico businesses and an increase of accountability across state government.” eProcurement Charter v2.0 “ The overarching achievement of the implementation of the eProcurment module will provide a more effective, efficient purchasing operation; reduce waste, appropriate and effective use of public funds, streamlined and cooperative interactions with New Mexico businesses and an increase of accountability across state government.” eProcurement Charter v2.0

7 ePROCUREMENT PHASE II eProcurement Module Project Goals Project Goals Improve business processes in terms of efficiency and effectiveness Improve business processes in terms of efficiency and effectiveness Address outstanding Health Check recommendations Address outstanding Health Check recommendations Address and resolve Audit findings Address and resolve Audit findings Maintain continuity and momentum gained by the successful implementation of Phase I Maintain continuity and momentum gained by the successful implementation of Phase I Workflows and delivered on line approval and inquiry (reporting) capabilities will provide further transparency and consistency in metric reporting Workflows and delivered on line approval and inquiry (reporting) capabilities will provide further transparency and consistency in metric reporting Workflows and supporting business processes delivered with eProcurement module will enhance internal controls related to procurement activities Workflows and supporting business processes delivered with eProcurement module will enhance internal controls related to procurement activities

8 ePROCUREMENT PHASE II Security Enhanced Security Enhanced Security New Permission Lists – to give menu access to the new modules New Permission Lists – to give menu access to the new modules New Roles – to associate with the Permission Lists and support proposed updates to workflow New Roles – to associate with the Permission Lists and support proposed updates to workflow Users – users of the eProcurement module will be associated with the Roles noted above Users – users of the eProcurement module will be associated with the Roles noted above Role Actions – this is an advanced security feature unique to eProcurement. Oracle will help the state implement and understand the implications of role actions in eProcurement Role Actions – this is an advanced security feature unique to eProcurement. Oracle will help the state implement and understand the implications of role actions in eProcurement User Preferences – User Preferences may be updated as part of the project. User Preferences – User Preferences may be updated as part of the project. Requestor Defaults – ePro comes with a capability to default an entire chartfield string per user. We anticipate this setup for pilot agency users Requestor Defaults – ePro comes with a capability to default an entire chartfield string per user. We anticipate this setup for pilot agency users

9 ePROCUREMENT eProcureme Funding Sources Appropriation History Appropriation History Amount/Funding Source(s) Amount/Funding Source(s) Phase I - FY09 Laws 2008, Ch3, Sec 7, Item 10 Phase I - FY09 Laws 2008, Ch3, Sec 7, Item 10 $500,000 $500,000 Phase II - FY10 Laws 2009, Ch3, Sec 7, Item 4 Phase II - FY10 Laws 2009, Ch3, Sec 7, Item 4 $435,000 $435,000

10 ePROCUREMENT Budget Review (Phase I & II) DescriptionFY09 Phase I FY10 Phase II Staff Consulting Contingency8.0* Misc Total$500.0$435.0 * Note: FY09 Unexpended Contingency $$ will be carried over to Phase II Project

11 ePROCUREMENT PHASE II Project Schedule Estimates PHASE Start Date End Date BudgetGoals Initiation10/29/0912/1/ Define Business Requirements through Surveying Business Owners and Subject Matter Experts, Complete Project Scope, Finalize PM contract & hire, draft IV & V contract and plan Planning12/1/091/5/2010 $100.0 Development of; Final Workflow Design Document, Update Project Management Plan, Operations Framework and Management Policy and Procedures, Risk Assessment & Mitigation, Project Schedule, Scope definition and cost estimates for implementation, resource planning. Finalize IV&V contract and hire IV&V consultant, set up test region Implementation2/1/20106/30/2010$335.0 Identify workflow design incorporating functionality from eProcurement modules; test; implement into production; team development, SME functional training; user acceptance; PM/IV &V reports; test DR if available; Close Out 7/1/20107/28/2010$-0- DoIT Closure Report, Project Closure Archive, IV &V Close out report, Post Mortem

12 ePROCUREMENT PHASE II eProcurement Module Request approval for release of funds in the amount of $100,000 for the Planning Phase Request approval for release of funds in the amount of $100,000 for the Planning Phase Thank you for your consideration Thank you for your consideration