1. Purchasing Directors’ Meeting February 17, 2004 3:00 P.M. State Purchasing

2. 2 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

3. 3 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

4. 4 Florida A.G.C. Council Decision Recent Events in U.S. District Court (N.D. Fla.) Feb 6 order granted plaintiff’s motion for partial summary judgment, finding that s. 287.09451, F.S., violates Equal Protection Clause because not narrowly tailored to serve compelling governmental interest Feb 12 settlement agreement filed with the court for approval Available on-line with materials for this meeting - http://marketplace.myflorida.com/buyer/directors.htm

5. 5 Florida A.G.C. Council Decision Practical Implications for Florida Purchasing Don’t use set-asides or race-based selection criteria; OGCs have been briefed Consider using DMS “state objectives” language, which will be tweaked Chapter 287 amendments to clarify role of OSD

6. 6 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

7. 7 New Office Consumables Contract Registering with Office Depot Punch-out is live effective Feb 16 Thanks for your patience! Demonstration

8. 8 How do I get a hard copy of the Office Depot Catalog? Catalog number on Welcome Kit, order with first order Bulk Distribution by Account Managers New Office Consumables Contract Issues and Resolutions – Catalog Distribution

9. 9 Why am I having problems registering with Office Depot and receiving the welcome kit? Firewall and system issues Re-designed welcome kit and re-sent to all users Re-Registered all users missed in first round New registrations handled in 24 hrs or less New Office Consumables Contract Issues and Resolutions – Registration Obstacles

10. 10 Why are there price discrepancies between the bid items on the STC website and the lists on the Office Depot site? Pricing on various sites aligned during punch- out implementation process Web In All pricing correct and certified to State 2/11/04 New Office Consumables Contract Issues and Resolutions – Price Discrepancies

11. 11 Why isn’t there a packing list in every box? All packages except full-case boxes are shipped with packing list enclosed Packing list from split-case (mixed product) references full case items Orlando and Weston facilities auditing to insure compliance New Office Consumables Contract Issues and Resolutions – Missing Packing Lists

12. 12 How can I complete my P-Card reconciliation under the new contract? DFS has approved the Office Depot packing list for P-Card reconciliation Full order with detail may be printed from Order History, or set up as auto e-mail confirmation New Office Consumables Contract Issues and Resolutions – P-card Reconciliation

13. 13 Why has the number of backorders increased under the new contract? Office Depot’s current analysis of State item fill-rate = 99.8% Backorder issues stemmed from number of items sourcing from wholesaler when equivalent items from Office Depot catalog are in stock. Wholesaler items will be shipped in separate package, and have separate packing list. New Office Consumables Contract Issues and Resolutions – Backorders

14. 14 New Office Consumables Contract Registering with Office Depot Users currently registered with Office Depot All established State accounts will remain unchanged. The only difference you will see upon logging in will be new prices. Users not currently registered with Office Depot Users will need to register accounts with Office Depot. To start the registration process you will need to fill out and return the registration form found on the contract website. Office Depot will then contact you if further information is required. Users currently registered with Office Depot Established MFMP accounts will transfer the required information over to Office Depot whenever the punch-out site is used. No separate registration is required. Users not currently registered with Office Depot Non-MFMP Users MFMP Users

15. 15 New Office Consumables Contract Purchasing from Office Depot Status of AgencyProcess of Purchasing Not implemented in MFMP Continue to use the Office Depot contract website to do your purchasing. All State accounts have been updated with the new contract pricing. Log in using your existing information and begin purchasing. Implemented in MFMP Simply do a search for the item you wish to purchase and the punch-out link for Office Depot will appear. Click on the link to be taken into the punch-out site. Once inside purchase your items and checkout. Upon checkout you will be taken back into MFMP where the item information will be captured within your PO.

16. 16 New Office Consumables Contract Contact Information DMS Steve Poole, Contract Analyst pooles@dms.state.fl.uspooles@dms.state.fl.us or 488-4945 Renee Gregory, Contract Specialist gregorr@dms.state.fl.usgregorr@dms.state.fl.us or 414-6740 Office Depot Morrie Norwood, Senior Account Manager mnorwood@officedepot.com 800-386-0226 x7111

17. 17 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

18. 18 Strategic Sourcing Objectives Leverage State- Wide Volume Obtain Best Prices & Value Obtain State- Wide Savings Increase Demand / Volume on STCs Identify New STC Opportunities Reduce State- Wide Supply Base Manage Compliance Strategic sourcing is a proactive process to leverage demand and select vendors that offer the best value.

19. 19 Strategic Sourcing States Currently Focusing on “Spend Management” Connecticut – “Buy Smart, Buy Together” Delaware – “Partner$ in Procurement” Florida - MyFloridaMarketPlace Illinois Missouri New Mexico Oregon Rhode Island Virginia – “Partners in Procurement”

20. 20 Strategic Sourcing Methodology Source: Accenture Best Practices Fast Track to Value Validate & Profile Category Conduct Industry Analysis Build Total Cost of Ownership Model Develop Category Strategy Conduct Supplier Analysis Build Supplier Selection Decision Matrix Conduct Auctions Complete Prepare Fact- Based Negotiation “Packages” Negotiate Value Propositions Category Profile Industry Profile TCO Model Category Strategy Value Propositions Benefits Realization Develop Measure Results & Trends High-Level Data Collection & Analysis Fast Track to Value Segment Purchases Validate & Profile Category Conduct Industry Analysis Build Total Cost of Ownership Model Develop Category Strategy Conduct Supplier Analysis Build Supplier Selection Decision Matrix Conduct Auctions Complete Prepare Fact- Based Negotiation “Packages” Negotiate Value Propositions Auctions Form Cross- Functional Sourcing Teams Develop Measure Results & Trends High- Data Collection & Analysis Fast Track to Value Segment Purchases Validate & Profile Category Conduct Industry Analysis Build Total Cost of Ownership Model Develop Category Strategy Conduct Vendor Analysis Build Vendor Selection Decision Matrix Conduct Auctions Complete ITB/ITN/ RFQ/RFP Develop Value Proposition Around Options Make Award Decision In-Scope Categories CFSTs (Cross-Functional Sourcing Teams) Selection Decision Matrix ITB/ITN/RFQ/RFP Continual Vendor Improvement Profile Internally & Externally Develop Strategy Screen Suppliers & Selection Factors Conduct Auctions & Shape & Negotiate Value Propositions Implement Agreements Assess Opportunities Profile Internally & Externally Develop Strategy Screen Suppliers & Selection Factors Conduct Auctions & Shape & Negotiate Value Propositions Kick-Off & Profile Internally & Externally Develop Strategy Develop Selection Factors & Screen Vendors Conduct Competitive Event Prepare Value Proposition & Award Implement Agreements Kick-Off & Assess Opportunities - Form Cross- Functional Sourcing Teams Develop Vendors Measure Results & Trends Tools Ariba Contracts Ariba Analysis Ariba Sourcing Ariba Contracts Ariba Analysis Award Decision (ITA) Ariba Analysis Typical Deliverables Key Worksteps - and / or -

21. 21 Spend Analysis Overview FLAIR Spend was Analyzed & “Sourceable” Spend Identified & Categorized Spend was Segmented by Benefit Potential & Ease of Implementation Categories were Mapped to 9 Waves of 3 Categories Each Sourcing Business Model was Developed from Savings Goals 23 Agency Interviews Conducted Waves Reflect Agency Input & DMS Feedback

22. 22 Discuss current contracts to identify weaknesses and strengths Conduct buyer needs assessments (interviews, surveys, etc.) Gather spend data to help build new strategy Develop new contract strategy Construct solicitation document Strategic Sourcing Pre-Solicitation Steps

23. 23 Top Agency Users 3 rd Tier Agency Users 2 nd Tier Agency Users Category Team Core Members Data & SMEs to Category Team Benefit From STC Agency Participation on Category Teams

24. 24 Strategic Sourcing Core Team Members Office Consumables DMS – Tom Butler MRO Materials DMS – David Comer Printing DMS – Charles Day DOH DCF Facility Services DMS – Chuck Beall DOT DOH Medical Supplies DMS - Susan Barr DOH DCF Uniforms/Officer Equipment DMS – Mark Lovell HSMVDOT DEPFDLE FWCC

25. 25 Strategic Sourcing External Profiling “A person... who participates in the drafting of a solicitation or who develops a program … is not eligible to contract …” s. 287.057(18), F.S. (2002) “… made available simultaneously to all vendors…” s. 287.057(1), F.S. (2002)

26. 26 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

27. 27 Operational Issues Wendi Sellers’ Departure – best wishes! –Insurance/Professional Services specialist –Will advertise position in PeopleFirst Rules State Term Contracts

28. 28 Operational Issues Rules Transaction Fee Rule (60A-1.031) and related form PUR 3776 –Revised effective February 11 Vendor Registration Rule (60A-1.030) – February 16 JAPC meeting Rule Development Workshop –February 20, 2004, 1:30 p.m. DMS Room 301 –Revised drafts will be on MFMP site

29. 29 Operational Issues State Term Contracts New Contracts SUVs, ATVs, Motorcycles – 2/25/04 Drug Screen Test Kits – 3/1/04 Tractors, Mowers, Cutters – 3/1/04 Equipment Maintenance – 3/1/04 IT Consulting – 4/1/04 Miscrosoft LAR – 4/1/04 Feature Phones – 4/30/04 Expiring Contracts Cereals – 4/29/04 Cookies and Crackers – 5/31/04 Plates, Cups, Tableware, etc. - 3/12/04

30. 30 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

31. 31 Purchasing Directors’ Meeting February 17, 2004 Agenda  Welcome / Meeting Overview  Florida A.G.C. Council Decision  New Office Consumables Contract  Strategic Sourcing  Operational Issues  Open Floor / New Issues  Next Meeting Location / Time

32. 32 Purchasing Directors’ Meeting Next Meeting Time:3:00 p.m. to 5:00 p.m. Date: Thursday, March 11, 2004 Location:TBD (and posted to website)