1. Agency Policy, Process & Procedure Development Guide October, 2003 MyFloridaMarketPlace

2. 2 Purpose of Guide: The purpose of this document is to provide guidance regarding the development of agency-specific processes, policies, and procedures pertaining to use of MyFloridaMarketPlace. Development Guide Overview Scope of Guide: This guide defines overall purchasing processes and key steps within them. It then identifies needed policies, processes, and procedures in relation to these process steps. This guide only references purchasing processes related to MyFloridaMarketPlace. This guide does not cover areas that are defined as part of an agency’s workflow through work with your agency liaison.

3. 3 Requisitioning / Generating P.O. Invoicing Identify Need Select Vendor (part of requisition creation) Create Requisition Approve Requisition Requisition Becomes Purchase Order (PO) & sent to vendor Purchasing Process Key Steps: (Note: Applies to Commodities Only) Receive E-Mail Prompt Physically Receive Items Receive Items in MyFloridaMarket Place Status Changed to Received Key Steps: Vendor Submits Invoice - Electronic or Paper (if paper, create electronic invoice by entering data into e-form and tying to PO or contract) Automatic 3-Way Match (for commodities)/2-Way Match (for services) Exceptions Sent to Exception Handler for Resolution Invoice Manager Approval State Comptroller Approval Payment request sent to FLAIR for warrant Key Steps: Receiving

4. 4 Sourcing System Admin / User Set-up & Maintenance Identify Need & Gather Technical Specs Create Solicitation Identify & Prepare Target Vendors Launch Solicitation Receive Vendor Bids Evaluate Vendor Bids Negotiate With Top Few Vendors (ITNs only) Select Vendor Award Contract Key Steps: User Role Changes Password Maintenance Transition Maintenance User set-up Key Functions: Other Purchasing / MyFloridaMarketPlace Processes / Functions Contracts Create Master Agreement Request (MAR) Approve Master Agreement Request Update Master Agreement access as Needed Key Steps:

5. 5 Determine commodity or service need Define technical specs (if needed) Review Catalogs, State Term Contacts (STCs) & SNAPS Agreements Look for vendors registered in MyFloridaMarket Place Collect quotes Choose vendor Create/add title Add items &/or service description (for non- catalog items) Tag commodity code Input quantity & price Add special conditions (if needed) Complete accounting information Complete shipping information Add other needed comments (internal and/or to vendor) Attached needed documentation Submit requisition Status changed from Composing to Submitted Approvals based on Agency workflow Approve or deny requisition Add comments if needed Submit approval If encumbered, FLAIR integration approval If unencumbered, PO goes directly to vendor PO automatically generated upon requisition approval PO automatically sent to registered vendor via fax, e- mail, or Ariba Supplier Network (ASN) Status changed from Submitted to Ordered Requisitioning / Generating P.O. ReceivingInvoicing Requisitioning/Generating P.O. -- Key Steps: Identify Need Select Vendor Create Requisition Approve Requisition Turn into PO and Send to Vendor (Note: Items in italics are system only functions)

6. 6 Overall Procurement How will new policies, processes, and procedures be communicated to agency staff members? If conducting a phased roll-out, how and by whom will requisitions be handled in MyFloridaMarketPlace before and while additional users are in training? For items under $2,500 -- are multiple quotes needed? If so, how many? How will P-Cards be used?  Use P-card memo from State Purchasing as a guide for defining agency guidelines on P-Card usage within and outside of MyFloridaMarketPlace  P-Card transactions entered in the system take on the same approval flow as requisitions in MyFloridaMarketPlace  Determine whether or not to input P-Card transactions into MyFloridaMarketPlace Policy, Process & Procedures to Consider

7. 7 Requisitioning/Generating P.O. Select Vendor Must use registered vendor; if need to use reluctant vendor, what is the internal process for getting appropriate approvals and submitting to the Help Desk? For items under $2,500 -- are multiple quotes needed? If so, how many? (Purchases over $2,500 are required by rule to get at least 2 quotes) How to use e-quote capability versus current method; if don’t use e- quote, how to get quote information into MyFloridaMarketPlace Policies, Processes & Procedures to Consider Create Requisition Create/add title -- define naming convention Item/Service Description -- define description conventions Item/Service Description -- determine if Special Conditions should be included here or in line item comments Decide who is responsible for selecting/adding the comments that go to the vendor Define requirements for supporting documentation to be attached Define method to get paper documentation into the system Requisitioning / Generating P.O. ReceivingInvoicing Approve Requisition Denials/Approvals -- what can be changed by Approvers with a message to the requester versus sending denied requisition back to requester for revision? (system will automatically re-generate approval chain when certain fields/items are changed) Who will confirm accounting distribution Step

8. 8 Requisitioning/Generating P.O. (cont’d) Purchasing Agency-Specific or Unique Items How to purchase agency-specific items that may not be straightforward for various reasons (e.g., fuel - price variations) Clearly define the steps that users must follow to purchase different types of items -- standard and unique Additional Policies, Processes & Procedures to Consider Handling Withdrawn & Canceled Requisitions How to withdraw requisitions (from Submitted status), including required notifications (The system does not send any notifications to approvers upon withdrawal What process, approvals, and notifications are required to cancel a PO/DO that has already been sent to a vendor (Ordered status) MyFloridaMarketPlace does not systematically route cancelled orders to approvers prior to cancellation (Internally defined process) Requisitioning / Generating P.O. ReceivingInvoicing Topic Area

9. 9 Requisitioning / Generating P.O. ReceivingInvoicing MyFloridaMarket Place sends e-mail prompt to notify user that they will need to receive goods in the system (for commodities only) Requested items are physically delivered to and received by requester Rejected items are sent back to vendor Find the approved PO associated with the received items Receive or reject the items in the system Status changed from Ordered to Received (status is Receiving for receipt of partial order) Receiving (Commodities) -- Key Steps: Receive E-Mail Prompt Physically Receive Items Complete Receiving Report in MFMP (Note: Items in italics are system only functions)

10. 10 Receiving Will only receive notification for commodities; services are not received in MyFloridaMarketPlace (invoice approved by requestor/contract manager) Approve invoices for services in MyFloridaMarketPlace Will Desktop Receiving or Central Receiving be utilized? If Central Receiving, define process for who receives at each identified address Policies, Processes & Procedures to Consider How will requesters be notified of received goods, when utilizing Central Receiving -- receipt approval required, or receive receipt notification by Central Receiving? ( based on workflow defined at the Agency) How will receiving be handled in MyFloridaMarketPlace when using a Blanket PO? (partial receipt of goods) Who should be notified and how should they be notified about rejected items? (MFMP does not systematically support notification of rejected items to others) Guidelines for adding comments in the system for rejected items so Finance & Accounting knows the issue(s) and does not have to call for more information Step Receive E-Mail Prompt Receive Items in MyFlorida MarketPlace Requisitioning / Generating P.O. ReceivingInvoicing

11. 11 Requisitioning / Generating P.O. ReceivingInvoicing Vendor submits electronic invoice via Ariba Supplier Network (ASN), or Vendor submits paper invoice  Create electronic invoice - enter data into e-form  Tie to appropriate PO/Contract  Submit to MyFloridaMarket Place MyFloridaMarket Place performs automatic match Commodities -- match between PO, invoice,receiving report & contract Services -- match between PO, invoice & contract Identify exceptions Send exceptions to exception handler queue If no exceptions, send to invoice manager Exception handler researches & resolves exception Add comments to describe exception/ resolution Approve payment request – routes to Invoice Manager Invoice manager reviews invoice Invoice manager approves (or denies) payment request DFS reviews approved payment request Warrant (check) is distributed to vendor through current process or EFT payment sent to vendor Invoicing -- Key Steps: Vendor Submits Invoice Invoice Reconciliation Exceptions Handled Invoice Manager Approval Invoice Payment (Note: Items in italics are system only functions)

12. 12 Invoicing Who is responsible for inputting data from paper invoices into MyFloridaMarketPlace electronic invoice form? Should paper invoices be retained in file or scanned into MFMP? Policies, Processes & Procedures to Consider What justifications or comments should be provided in the resolution of exceptions? What types of exceptions/variances will necessitate the invoice to be rejected ( returned to vendor)? When is communication to the vendor necessary; i.e. upon partial payment, upon invoice rejection, etc. Step Requisitioning / Generating P.O. ReceivingInvoicing Vendor Submits Invoice Exception’s Handled Invoice Manager Will the Invoice Manager only approve payment request or will they make updates to payment requests as well? Will this be a separate responsibility or will it be the same personnel as the Exception Handler? Will the Invoice Manager only approve payment request or will they make updates to payment requests as well? Will this be a separate responsibility or will it be the same personnel as the Exception Handler?

13. 13 Determine commodity/ service need Define technical specs Create timeline Conduct proactive vendor on- boarding Encourage vendors to review the system and vendor training for responding to bids Sourcing -- Key Steps: SourcingContracts Document technical specs Create evaluation criteria (for RFP or ITN) Create bid documents Gather needed approvals Input formal solicitation in MFMP Set up parameters - open/close timeline Input bid documents Set up rules Invite suppliers Launch solicitation to vendors / e- mail notification sent to vendors Design Solicitation Build Solicitation Run Solicitation Close Solicitation (Note: Items in italics are system only functions) Electronically receive bids in MyFlorida MarketPlace Evaluate bids in the system Select winning vendor in the system Notify vendor of contract award System Admin / User Set-up & Maintenance

14. 14 Sourcing Create Solicitation Determine the accepted methods of bid submission -- paper, electronic, or both. If paper bids will be accepted, how will the process work? Policies, Processes & Procedures to Consider Receive & Evaluate Vendor Bids Guidelines for determining whether evaluation can be done in MyFloridaMarketPlace or should be done outside the system Step SourcingContracts System Admin / User Set-up & Maintenance

15. 15 Master Agreement Manager reviews MAR Approve or deny MAR Submit approval MAR becomes Master Agreement upon approval Contracts -- Key Steps: SourcingContracts Input vendor & contract content information Set up pricing (how to buy off the contract) Select people to have edit capability Set up restricted access ( if applicable) Set up notification limits for contract expiration Input total contract amount (if desired) Submit to Master Agreement Manager for approval Create Master Agreement Request (MAR) (Note: Items in italics are system only functions) Approve Master Agreement Update Master Agreement & Access System Admin / User Set-up & Maintenance Contract Specialist may make updates to Master Agreement (term of contract, pricing, etc.) Submit for approval by Master Agreement Manager

16. 16 Contracts Master Agreement and Access Define policy for how master agreements should be updated and/or revised Who will have the ability to purchase off the contract? Policies, Processes & Procedures to Consider Create Master Agreement Request At what timeframe should expiration notifications be set? Who has the ability to change or edit a Master Agreement? (Good practice to always allow at least one other person this capability) Who has the ability to restore contracts (add additional money or spend to a contract)? Will prior payments be rendered in MFMP through the contracts module (for previous contracts)? Who will establish the contract encumbrance in FLAIR and update the MAR with the encumbrance number? Step SourcingContracts System Admin / User Set-up & Maintenance

17. 17 Contracts (cont’d) Canceling a Master Agreement What off-line processes are required for closing a Master Agreement prematurely? MyFloridaMarketPlace will automatically close contract when term or contract commitment is met Additional Policies, Processes & Procedures to Consider Using Master Agreements How will Master Agreements be used -- create POs off them or tag invoices to them? What is the process for each? Topic Area SourcingContracts System Admin / User Set-up & Maintenance

18. 18 System Admin/User Set-up & Maintenance User Role Changes/ Additions What approvals will be required for changes to users’ roles in MyFloridaMarketPlace? (Internal process – submit form) Who will identify the appropriate roles for a user (including ship to addresses, org code, supervisor, etc.)? Additional Policies, Processes & Procedures to Consider What is the process for initial password set-up? What procedures will be followed for lost or compromised passwords? How will passwords be distributed to users? Topic Area Password Maintenance SourcingContracts System Admin / User Set-up & Maintenance What is the procedure for identifying and notifying the system administrator of people who transition out of the agency and must have their user names and passwords deleted prior to departing the agency? Transition Maintenance Address changes/ Additions What is the process to add new addresses to MFMP? What is the process to change addresses? What is the process to add new addresses to MFMP? What is the process to change addresses?

19. 19 Additional Resources For Additional Assistance: Contact Vincent Ackerman at 850-487-9847; ackermv@dms.state.fl.us Refer to the Communication Tool Kit which contains example documents from other agencies