Purchasing Directors’ Meeting March 17, 2011

2 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

3 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

4 Team 1 – Transportation & Energy Fuel Card Services –Com Data contract ended March 15. –Current contract with WEX is now posted on the STC website. –Contact David Bennett with questions: Tires –Reviewing pricing adjustment request from Goodyear. Motor Vehicles –Potential strike at Allied Transportation – this will affect GM, and maybe other manufacturers. –Recommend that you follow-up on outstanding orders to check status. –Remember to watch the STC website regarding production cut-offs and follow-up with dealers. Bureau of Transportation, Facilities and Supplies

5 Team 2 – Institutional Furnishings & Supplies Office Furniture –Evaluation of ITB responses continues. –Some contractors are offering temporary price reductions. Check the STC website for details, or contact the team for more information: o Brenda Wells: o Claudia Cooper: Ice Making Machines –Expires April 29, –Next action recommendation is in development. Bureau of Transportation, Facilities and Supplies

6 Team 3 – MRO & Law Enforcement MRO Industrial Supplies (WSCA) –WSCA contract with Grainger is effective through April 30, –WSCA has awarded a new contract to multiple suppliers: Grainger, MSC & Fastenal. –We’re meeting with all three vendors and reviewing new pricing documents to determine ACS contract strategy. Personnel –Chuck Beall is retiring March 31. Chuck’s retirement party will be held at the DMS Shumard Oak Park, March 31, 11:30 – 1:00. Invitation will be delivered via to Purchasing Directors – please forward to any interested staff. Bureau of Transportation, Facilities and Supplies

7 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

Bureau of Technology, Office Equipment, & Support Services 8 Contract Renewals: PCs Laptops and Monitors STC – Contract Manager: Joel Atkinson, – Contract Renewed for 6-month period – All contractors renewed – New expiration date is 8/31/2011 – Evaluating contract – Options for future renewals still exist

Bureau of Technology, Office Equipment, & Support Services 9 Current Solicitations: Land Mobile FM or PM Comms Equipment ITB –Launched 1/12/2011 * The below portion of the timeline was revised at vendors requests due to an industry wide tradeshow that conflicts with original response deadline: –Intent to Award est. 4/12/2011 –Contract Effective Date est. 4/26/2011

Bureau of Technology, Office Equipment, & Support Services 10 Current Solicitations: Library Materials Annual Add-On ITB –Est. Launch Date 3/2/2011 –Q&A Answers posted on 3/16/2011 –Intent to Award est. 3/29/2011 –Contract Effective Date est. 4/18/2011

Bureau of Technology, Office Equipment, & Support Services 11 Contract Update: Envelopes, Kraft, White Wove, Others – –Contract Manager: Shameka Smith, –MeadWestvaco has been acquired by Cenveo o Cenveo still reviewing Assignment of Contract o MeadWestvaco orders are now going thru Cenveo, because MeadWestvaco does not exist o Cenveo not officially on contract until Assignment complete o Use Office Consumables STC to purchase during interim o If not possible to find on STC, then agency internal policy and procedures apply (Bulletin Board message posted)

12 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

Bureau of Services, Supplies, Insurance, and Special Programs Team 6 – Services, Special Programs, & Insurance State Term Contracts/ACS Under Review During the Next Six Months: –Household Moving ACS with DOC –expires April 13, 2011 and will not be renewed –Equipment Maintenance Management Services—expires April 15, 2011, renewal recommendation in review –Online Legal Database Services—expires August 18, 2011, working on next action recommendation Insurance Policies Under Review During the Next Six Months: –Accident & Sickness Insurance – ITB awarded to Academic Insurance Solutions –Broker of Record – Excess Property: Expires 9/30/11. Coordinating with DFS –Fine Art (Indoor): Expires 4/1/11. Developing next action recommendation –Nuclear Property (UF): Expires 6/1/11 –Electronic Data Processing Equipment: Expires 6/5/11 –Contractor’s Equipment: Expires 7/1/11 –Ocean Marine: Expires 7/2/11 –Catastrophic Accident Insurance for FSDB: expires 8/15/11 Special Programs –RESPECT: Approved new products include sunscreen with SPF 30 and vaccine kits 13

Bureau of Services, Supplies, Insurance, and Special Programs Team 7 – SPAs and Special Projects State Term Contracts under review during the next six months: –Paper: Tissues and Towels – expires July 31, o Gathering feedback for new contract. –Recycling Services: End of Life Electronics Equipment – expires July 21, Next action recommendation is in process. –Frank Miller is now managing SPA for Reclaiming Mercury from Spent Lamps. or – Potable Water and Food Grade Ice – expires August 2, Finalizing draft solicitation. Other agreement and project updates: –Defibrillators, Related Equipment & Supplies (ACS) - extended until March 31, No update on the award for the Oklahoma solicitation. –Security Officer Services - Developing next action recommendation 14

15 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

Training and Certification Program Procurement Training Schedule –Planning, Scheduling & Requirement Analysis – March 28-30, 2011 –Developing and Managing RFP’s – April 4-6, 2011 –CPPB Review – April 11-12, 2011 –CPPO Review – April 13-14, 2011 –Legal Aspects – May 23-25, 2011 To check for updates to the Training Schedule please go to: 16

Training and Certification Program PMP Training Schedule –PMP Exam Prep – May 2-4, 2011 –Critical Thinking and Problem Solving – June 1-3, 2011 To check for updates to the Training Schedule please go to: 17

18 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

W-9 Verification Website DFS launched the W-9 Verification website on March 9, 2011 – 19

W-9 Verification 20 Within VIP, vendors can verify their W9 status – – VIP will be updated nightly with information received from DFS

W-9 Verification 21 A vendor’s W9 status is viewable in MFMP. – MFMP is updated nightly with data from DFS

22 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

Governance Legislative Update –HOUSE BILL 923/SENATE BILL 1352 – Bills deal with certain public works construction. Also, extends the protest period for a solicitation specification or amendment challenge from 72 hours to 7 business days. Amends computation of formal protest to 10 business days from 10 calendar days. –SENATE BILL 1314/HOUSE BILL The bills would require that all agencies submit with any legislative budget request a description of each contract in which an agency has granted a concession. The description must include: o Description of services o Term of contract and remaining years o Revenue generated from the contract o Revenue remitted to the agency o Value of any capital improvements o Remaining value of any capital improvements, not fully amortized o Amount of appropriation requested to pay vendor 23

Governance Legislative Update cont. (SB 1314): The bills also amend section , F.S., and add prohibitions against agencies entering into contracts with certain provisions, unless authorized by law: o A provision that requires the state to pay liquidated damages or an early termination fee o A provision requiring the state to pay interest, other than as permitted per section , F.S. o A provision requiring the state to pay higher future payments to offset a current lower payment. o A provision giving a third party the right to retain fees/revenue that is due the state. The bills provide for exceptions to the above prohibitions for certain agencies, including DMS for contracts related to DSGI. 24

Governance Legislative Update cont. (SB 1314): The bills also prohibit agency leases to exceed $500,000 for a single fiscal year, unless approved by the Legislature. There is an exception for the State Board of Administration as it relates to investment duties. Provides that any contract in violation of the section is void, and provides that a state employee who violates this section is guilty of a first degree misdemeanor. Creates section , F.S., and adds additional reporting requirements – requires state agencies, at least 30 days prior to execution of a contract, to report to the Legislature and Governor any contract: o Which exceeds $10,000,000 in any fiscal year o Which requires no minimal or no payment by the state o Which authorizes the other party to make expenditures in anticipation of collecting revenue from a third party, including other state agencies o Which requires the other party to make expenditures without receiving payment from the state for at least 180 days. 25

Governance Legislative Update cont. (SB 1314): The bills prohibit any state official from two branches of government, judicial and executive, from entering into contracts for services or tangible personal property unless the contract identifies the specific appropriation, unless expressly authorized by the Legislature. Transfers section , F.S., to section , F.S., and adds a provision that must be a part of every contract entered into by two branches of government, executive and judicial: A 10 day termination clause if contract is part of the Governor’s deficit reduction plan 26

Governance Legislative Update cont. (SB 1314): For contracts entered into by the executive and judicial branches, requires agency head or senior management designee to sign every contract over Category 2 and verify that all statutory requirements of Chapter 216 have been met. Contracts that exceed Category 5 must have written acceptance/rejection of contract deliverables. States that any contract in violation is void and makes it a first degree misdemeanor for any official to enter into a contract which violates the section. Amends section , F.S., and prohibits agencies from entering into agreements for deferred payment purchase of equipment costing over $500,000, unless expressly permitted by the Legislature or LBC. Amends section , F.S., to prohibit agencies from entering into master equipment financing agreements worth over $500,000, without the consent of the Legislature. The law would take effect on July 1,

Governance Legislative Update cont.: –Senate Bill 1510 added language similar to HOUSE BILL # 871: The bills broaden the definition of “commodity” in section , F.S., to include a definition of “off-the-shelf-commodity” as a good or merchandise that is consumable but is not proprietary in nature. It also expands the discretion granted agencies to use a “request for quotes” for purchases of “off-the-shelf-commodities” on purchasing agreements and State Term Contracts (“STC”) in order to obtain a better price than is available from a STC. Also, permits an agency to buy this type of commodity from another source if a better price or term is found. Also, mandates that agencies purchase generic brands of “off-the-shelf commodities” unless an adequate justification is found. – 28

Governance Legislative Update cont.: –SENATE BILL 1280/ HOUSE BILL Creates a centralized Office of Inspector General. Requires DMS to draft rule/procedures related to purchasing cards. –SENATE BILL 1002/ HOUSE BILL Requires DMS to delegate authority to agencies for the purchase of Brailled business cards. –HOUSE BILL # 427/SENATE BILL #574 : The bills amend s , F.S. and extend the authority of state and local agencies to provide a reciprocal preference for Florida vendors during a competitive solicitation for construction services, in addition to purchases of personal property which are already permitted by the statute. 29

Governance Legislative Update cont.: –SENATE BILL 1258 /HOUSE BILL 1079 (not identical) (HOUSE BILL # 427/SENATE BILL #574 are similar but the preference is not mandatory in those bills) - The bills amend section , F.S., and mandate that agencies, school districts, municipalities, and political subdivisions, when awarding a printed materials contract, grant a preference to the “lowest responsible and responsive vendor” having a principal place of business in Florida. The preference granted is to be either: 1.equal to the preference granted in the home state of the “lowest responsible and responsive vendor”; or 2.If no preference is granted in the vendor’s home state, then a 5% preference is to be granted to the in-state vendor if the work can be performed in state at a level of quality comparable to an out of state vendor. There is an exception in the Senate Bill for printing services performed by PRIDE – the preference does not apply to any contract awarded to PRIDE. New requirements to this section call for out-of-state vendors to submit with their bids, the written opinion of an attorney, licensed in their state, explaining the preferences that state provides vendors within their state, and for the vendor to commit to hire in-state residents to complete the services to the greatest extent possible. 30

Governance Legislative Update cont. (SB 1258): The bills also amend section , F.S, to extend the preference to construction services, and to remove the discretion to award a preference. It will be required that a preference be given to the lowest in-state vendor to the same extent an out-of-state vendor would receive a preference in the vendor’s home state. The bill also requires a 5% preference be given to the lowest priced in-state vendor where a lower priced out-of-state vendor’s home state has no preference in that state. In addition to the current requirement for an attorney’s opinion regarding the vendor’s home state preference, an out-of-state vendor must also commit to hiring Florida residents to the maximum extent possible. There is an exception in the Senate bill for any contract awarded to PRIDE. The law would take effect on July 1, 2011 –HOUSE BILL creates agency with DFS called Agency for Enterprise Business Services and a board to advise the agency regarding the Florida Financial Management Information System. A 5 year strategic plan is required to replace or enhance the System. All agencies will be required to conform with procedures developed by the DFS agency for use of the System. Also, a state contract management system will be established – all agencies will be required to update contract information immediately. 31

32 Agenda Bureau of Transportation, Facilities & Supplies Bureau of Technology, Office Equipment & Support Services Bureau of Services, Supplies, Insurance & Special Programs Training and Certification State Purchasing Operations/MyFloridaMarketPlace Governance Reminder About Next Meeting Date Purchasing Directors’ Meeting March 17, 2011

33 Purchasing Directors’ Meeting March 17, 2011 Next Meeting April 21, :00 – 4:00 pm