EE1: Procurement Updates Presentation for New York State Procurement Council November 19, 2014

Asset Lifecycle Management (ALM) EE1 Overview New Functionality Enterprise Services Automation (ESA) eSettlements Asset Lifecycle Management (ALM) Budget/ Commitment Control Bulkload Extracts Procurement Contracts Re-architecture EE1 has three main components, starting from the bottom: A technical upgrade to PeopleSoft version 9.2 from the previous 9.0 version, which allows us to remain in compliance with the support agreement. Re-architecture of several modules that were implemented during the original SFS implementation to better leverage best practices and replace current manually intensive business processes with delivered automation. Addition of new functionality to help address some of the obstacles that have prevented some agencies from coming online. DOL will serve as the pilot agency for much of the new functionality. ESA falls into this category and DOL will be the only agency impacted by EE1. Technical Upgrade PeopleSoft 9.2 Upgrade/ Technology Stack

EE1 Project Timeline Go Live Soft Freeze Hard Freeze Nov-Dec 2013 Jan-Feb 2014 Mar-Apr 2014 May-Jun 2014 Jul-Aug 2014 Sep-Oct 2014 Nov-Dec 20 14 Jan-Feb 2015 Mar 2015 Apr 2015 Integ. Test UAT Strategy Phase Planning Phase First Look Train-the- Trainer Design Phase Admin. Training Agency Training Go Live Build & Unit Test New User Training Integration Testing (Oct. 2014 – Dec. 2014) Train-the-Trainer (Nov. 2014-Jan. 2015) User Acceptance Test (Dec. 2014 – Feb. 2015) Hard Freeze (Feb. 2015) Agency User Training (Jan. – Mar. 2015) Full Dress Rehearsal (FDR) (Feb. 2015) Cutover Prep./Cutover (Mar. – Apr. 2015) Go-Live (Apr. 2015) Cutover Workshops FDR Prep Cutover Soft Freeze Hard Freeze

SFS April 2012 – Go-Live Picture to drive the point home that we didn’t change all the business processes that we should of

How do we drive alignment? Group Objectives Leverage delivered controls Streamline and enhance process Increase Procurement Intelligence Fiscal Responsibility Office of the State Comptroller Division of the Budget Business Service Center Statewide Financial System

Areas of Focus in Proceurment Contract Definition Contract Maintenance Purchasing

New York State Benefits Improve fiscal accountability Realign to PeopleSoft best practices Reduce need for customizations across NYS Support NYS procurement initiatives such as MarketPlace and Item Master Enhance agency visibility into future cash impacts and financial performance Positions NY State for future initiatives

EE1 Overview – Vendor Perspective Shaving off the Sharp Edges of the Peg Setting the table for vendors to be able to do business with NYS as they deal with a commercial customer

EE1 Overview – Vendor Impacts Contract Numbering Contract Lines Amendments/Versions Contract Remaining Balance Purchase Order Corporate Contracts (P Contracts) Revenue Contracts E Settlements EE1 has three main components, starting from the bottom: A technical upgrade to PeopleSoft version 9.2 from the previous 9.0 version, which allows us to remain in compliance with the support agreement. Re-architecture of several modules that were implemented during the original SFS implementation to better leverage best practices and replace current manually intensive business processes with delivered automation. Addition of new functionality to help address some of the obstacles that have prevented some agencies from coming online. DOL will serve as the pilot agency for much of the new functionality. ESA falls into this category and DOL will be the only agency impacted by EE1.

Numbering NYS Contract # will be populated from the Requisition during the contract creation process SFS Contract ID (system generated number) will be assigned during the contract creation process Primarily transparent to a vendor NYS Contract # remains same SFS Contract ID will appear on purchase orders

Contract Lines Currently single line contracts within SFS Contract Amount EE1 - Contracts are created from a requisition and will be created with one contract line for each requisition line Possible Usage Deliverables Products Performance or Fiscal Years Goods and related services Additional contract lines can be added to the contract if desired Provide information on what “include for release” means and clarify that this is during the contract creation/approval process. Second two bullets are after the approval of the contract

Amendments/Versions Any change to terms and conditions to an approved contract will be made as a new version Multiple versions can be in stages of negotiation and approvals but only one approved version Agencies do not have to manage spending at the amendment level

Contract Remaining Balance Definitions Non-PO Expense Maximum Amount Released Amount Contract Remaining Balance Calculation: New calculation for Remaining Balance would be Max Amount – {Released Amount + Non-PO Expenses + Non-PO Adj Expenses} – In Process Amount = Remaining Amount.

Item Master The Item Master is currently used for a limited number of disaster stockpile items. It is being expanded to include non-emergency items. Benefits: Supports procurement and inventory automation Improved business intelligence Clear and consistent naming conventions Enhanced flexibility when ordering for buyers and procurement managers Improved business intelligence Clear and consistent naming conventions; all NYS employees will share the same set of items IDs Accurate transactional history for auditors, inventory planners, and procurement managers Enhanced flexibility when ordering for buyers and procurement managers (e.g., searching for additional suppliers)

Corporate Contracts Corporate Contract is a contract that can be used by all state agencies. Validations will be in place to ensure that statewide contracts are not overspent Only if we get a questions - If use the Req, can only be for the main vendor, can’t be for the VARS. OGS offers a large number of contracts that state agencies can use when procuring goods or services. These contracts are also known as P-Contracts, Master Contracts or statewide contracts.

Purchase Order Impacts POs will be required for a majority of purchases All POs (including those against agency contracts) will be used as ordering documents Use of a PO as a true ordering document, not as evidence of encumbrance Brendan For an Agency Contract the use of a Purchase Order will be aligned to its delivered intended use as a true ordering document and not as an evidence of encumbrance prior to contract or contract amendment approval Agencies will have two ways to create Purchase Orders against an approved agency contract: Contract releases Copying over contract and contract lines into the PO lines Agencies will have three ways to create Purchase Orders against centralized contracts: Source the Requisition identifying contract and contract line to a Purchase Order Create a PO manually

Revenue Contracts NYS as a vendor/supplier Revenue contracts will be using the Customer Contract Application in the Enterprise Services Automation (ESA) module Vendors also customer of NYS will have a customer number (NYCUST9999999999)

eSettlements eSettlements will provide the state a new standard for centralizing electronic invoicing Approved suppliers (vendors) may submit electronic invoices to SFS via eSettlements Approved suppliers may enter invoices directly into the Supplier Portal or via file from their source system Invoices entered into SFS via eSettlements will be built into accounts payable vouchers Brendan eSettlements is a new module being implemented as an entry point for invoices; it will provide the state a new standard for centralizing electronic invoicing Approved suppliers (Vendors) may submit electronic invoices to SFS via eSettlements OSC will send a communication to agencies regarding vendors that will begin to send eInvoices Approved suppliers may enter invoices directly into the Supplier Portal or via file from their source system Invoices entered into SFS via eSettlements will be built into Accounts Payable Vouchers Agencies will be responsible for addressing invoices that fail voucher build and either deleting the voucher or correcting the issue Agencies will have a report to identify vouchers that fail voucher build and the report will include the reason for the failure

eSettlements: Origination Points Invoices will have the following origination points: File (XML) upload Electronic Catalog initiative; invoice generation Self-service entry via Supplier portal Brendan These are the three different places files can be submitted and fed through eSettlements.

eSettlements: Supplier Portal Supplier access will be granted to selected suppliers for invoice entry through the current supplier portal Encourage eInvoicing vendors to use eSupplier Pilot Information Low volume and high volume invoicing supplier will be targeted 10-15 suppliers will be elected to participate in a pilot for eSettlements invoice entry Supplier will help test invoice entry for their company Supplier will test both XML invoice entry and self-service invoice entry Brendan Agencies should encourage eInvoicing vendors to use eSupplier as much as possible to track their financial information (invoices, vouchers, payments, and POs) A small group of pilot vendors have been selected by OSC’s Vendor Management Unit to go live for EE1. Only invoices from these specific vendors will no longer go to any agency via paper. We will share this list.

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