1. GENERAL SERVICES DEPARTMENT State Purchasing Division SHARE Procurement Enhancement Project Certification-Initiation Phase September 24, 2008

2. General Services Department SHARE Procurement Enhancements Executive Summary Funding Source - Laws 2008, Chapter 3, Sec. 7 – Data Processing Appropriations includes $500.0 “for strategic sourcing and electronic procurement configuration for the general services department” State Purchasing Division (SPD) Overview Purchasing Functions for Executive Branch of State Government –Purchasing- Emplacement and Maintenance State-wide Price Agreements Agency Price Agreements Agency Contracts –Administration and Process Competitive Procurement (ITB and RFP) Processes Sole Source Approvals Participation in Cooperative Agreements and GSA Extension Maintain Public Record Procurement Files Defend Procurement Protests Administer Procurement Code Procurement Violations

3. General Services Department SHARE Procurement Enhancement Customers –150 State Agencies; 1500 Vendors; 2M State Residents Why Procurement Module Enhancement? –Enables SPD to Efficiently Provide the “Best Value” to State Purchases Performance Measures –Timely Acquisition of Tangible Goods, Services, and Professional Services –Fair and Open Procurement Process –Low Rate of Protests; High Rate of Successful Defense –Reduction in Error Rates –Visibility into State Spend Patterns, Enable Strategic Sourcing Concepts –Reduction in Manpower Requirements; Ability to Expand “Value Add” Services

4. General Services Department SHARE Procurement Enhancement Phased Approach –Oracle Health Assessment Define current state of Procurement Modules in the SHARE system Perform an in-depth discovery of SPD current and planned business processes (with particular attention paid to two workflows provided by SPD which shows vendor notification and solicitation release processes). This will include an assessment of the Application with respect to business process flows, data volumes, application configuration setup, interfaces, security, reporting, and customizations; Conduct on-site interviews with key state personnel to further identify issues related to SPD use of the Application; Identify the basis for SPD planned business process changes; Provide recommendations regarding the use of the eProcurement and Strategic Services Application based on current issues related to the Application and planned business process changes (especially the business processes related to the workflows shared by the SPD with Oracle);

5. General Services Department SHARE Procurement Enhancement Oracle Health Assessment Provide recommendations regarding the use of the eProcurement and Strategic Services Application based on current issues related to the application and planned business process changes (especially the business processes related to the workflows shared by the SPD with Oracle); Document the findings from the services performed in the form of a Healthcheck Assessment Report. This assessment report will also contain a budgetary estimate to implement: –eProcurement and Strategic Sourcing – an estimate of what it would take to implement the two modules to meet the business processes covered by the workflows that SPD shared with Oracle Corporation –Finish implementing the proposed suite of procurement modules if funded in FY10 Implement eProcurement and Strategic Sourcing Module Functionality Automate SPD Solicitation Release and Vendor Notification Business Workflows

6. General Services Department SHARE Procurement Enhancement Business Problem SPD’s business workflows are slow, manual, error-prone, paper-based processes Purchase request turn around times are excessive Data to support management decisions is difficult and labor-intensive to acquire Work-around spreadsheet process is error prone and creates consistency problems Metrics are incomplete and do not identify specific areas for process improvement Duplicate entry creates synchronization issues Implementation Benefits Increased efficiency and productivity through workflow visibility; Decrease in time loss due to locating readily available hardcopy files Increase of readily available data to support Management decision process (better decisions) Streamlined and effective communication between vendors, state purchasing; Improved turn-around times for purchasing requests Ability to re-direct manpower to “value add” efforts such as training and outreach

7. General Services Department SHARE Procurement Enhancement Identified SPD Opportunities Automate Routine Business Tasks Access to Data to Support Management Decisions Metrics to Gain Visibility into Workflows Improve Communications between SPD and Vendors Reduce Opportunity Error Introduction Reduce Manual Labor Synchronization with SHARE Compliance with Procurement Code

8. General Services Department SHARE Procurement Enhancements Business Risks Insufficient Funds to Support the Effort Staff Resources are Limited; Lack of Personnel Outsourcing of Project Implementation Change Management will be Critical to Adoption Potential for Negatively Effecting Existing SHARE System Processes SHARE Data and Access Volume Increase may Increase Response Times

9. General Services Department SHARE Procurement Enhancement Executive Sponsor, Arturo Jaramillo IV&V Project Sponsor, Mike Vinyard Executive Steering Committee Arturo Jaramillo Mike Vinyard Kathy Sanchez John Prihoda Anthony Armijo Karen Baltzley Business Owner, Kathy Sanchez Project Manager TBD Project Director, Karen Baltzley Project Team: Mike Vinyard, Chair Ross Boom, SPD Kathy Sanchez, SPD Karen Baltzley, GSD Susan Steinberg, SHARE John Prihoda, SHARE Technical Review Team GSD, DoIT, SHARE DFA – Fin Control Appropriation Oversight

10. General Services Department SHARE Procurement Enhancement Budget by Project Phases Project Phases Time Frame Request for Release of Funds Cost Breakdown InitiationSeptember – November, 2008 $92,000PM - $50.0, Oracle Health Assessment $42.0 PlanningNovember – December, 2008 $275,000 PM - $60,202, IV&V - -$25,0,Consulting -$189,798 ImplementationDecember – May, 2009 $108,000Consulting - $108,000 CloseoutApril – May, 2009$25,000 Contingency - $25,000 5% of Total Project Cost Project Total $500,000

11. General Services Department SHARE Procurement Enhancement IT Architecture Open Source/COTS Oracle Database Standard SHARE Current System Architecture Aligned with State’s Enterprise Architecture SHARE System Housed at Simms Data Center Web Front-End Authentication System Fail Over Security/User Roles

12. General Services Department SHARE Procurement Enhancement Modules –eProcurement Module –Strategic Sourcing Module Request Approval of Project Certification Initiation Phase and Release of $92,000