Purchasing Directors’Meeting
April 19, 2012
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• Welcome comments – Kelly Loll• Introductions – All• FACTS update and financial consequences – Christina
Smith • PCs and laptops contract – Kelly Loll• MyFloridaMarketPlace
– 2011 customer survey results– System Release 9.4.0– eInvoicing update– Catalog purchases– Customer Roundtable May 7 – we’ll discuss year-end!– New contracts section to the MFMP manual
• PPIP survey results – Hal Houston• Hot topics - All
Agenda
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State Purchasing• Kevin Brown, Goods Group Category Manager• Marjorie Rubenstein, Information Technology /
Telecommunications Group Category Manager• Wayne Mitchell, Governance Manager
Introductions
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Department of Financial Services
• Christina Smith
FACTS Update & Financial Consequences
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PCs and laptops• Update
State Term Contracts
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MyFloridaMarketPlace distributed the 2011 customer survey on November 15, 2011, to more than 1,400 purchasing, and finance and accounting customers• The survey questions covered topics about the
MyFloridaMarketPlace program, including 15 additional questions related to the MFMP 3.0 upgrade
• MyFloridaMarketPlace develops the survey distribution lists based on agencies’ proportionate use of the system Each agency received at least one survey with the
opportunity to respond with feedback• Approximate 30 percent response rate
442 customers responding to the survey
MyFloridaMarketPlace Update
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• 90 percent overall satisfaction in 2011• Compared to 2010 results:
Purchasing customer satisfaction decreased 7 percent Finance and Accounting customer satisfaction decreased
6 percent Decrease in overall satisfaction with communicationsYear Purchasin
gFinance and Accounting
Overall
2011 90% 90% 90%2010 97% 96% 97%2009 93% 95% 94%2008 94% 90% 93%2007 89% 94% 91%2006 84% 77% 80.5%
MyFloridaMarketPlace Update
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MyFloridaMarketPlace UpdateApril 13, 2012, focus group meeting to discuss:• General consensus that timing so soon after MFMP 3.0
upgrade likely influenced survey responses• MFMP will work to increase finance and accounting-specific
communication• MFMP and Customer Service Desk will provide more timely e-
mail communication related to system-wide impacts• MFMP will leverage the newsfeed function on the MFMP
Dashboard with bi-weekly messages• Continue to monitor system performance
Agencies, please let us know when you experience slow response time
• MFMP will re-distribute information about using upgrade features related to labels, searches, etc.
• Continue to work through known issues in a prioritized approach with bi-monthly system releases
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MyFloridaMarketPlace UpdateSystem Release 9.4.0 – resolved 39 system
issues• New – required state term contract or agency
solicitation ID• Check or uncheck the “Visible To Suppliers”
checkbox associated with a requisition’s comments• View invoice reconciliations created against an order
on the purchase order’s orders tab• Update the “bill to address” on the change order of
a received or invoiced requisition• MyFloridaMarketPlace sends e-mail notifications for
expired FLAIR passwords, invalid FLAIR passwords, FLAIR passwords not on file, missing FLAIR user names, or revoked FLAIR user name
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MyFloridaMarketPlace UpdateeInvoicing update• New eInvoicing vendors:
– PRIDE – RESPECT of Florida– Dade Paper– Mac Papers
• May 2012 target implementation:– AMD– Airgas– Sun Surgical– Patterson Dental
• Others in process:– Fisher Scientific
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MyFloridaMarketPlace UpdateCatalog purchases• Today more catalog purchase orders result in
electronic invoices• When agencies purchase from available MFMP
catalogs, the vendor submits invoices electronically, instead of paper invoices
• More than 30 vendors are eInvoicing through MFMP today
• Find vendors currently eInvoicing and vendors with MFMP catalogs on the MFMP website at: http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_buyers/myflorida_marketplace_toolkit/mfmp_punchout_catalogs_einvoicing
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MyFloridaMarketPlace UpdateBenefits of using catalogs for purchasing:• Saves time• Auto-populates fields
– Vendor name and location– Item description– Unit price– Part number– Commodity code– State term contract number
• Allows the vendor to automate the purchasing and invoicing process
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MyFloridaMarketPlace Update
Benefits of catalog purchases for finance and accounting:
• Reduces paper flow and associated costs of printing and mailing
• Prompt and accurate invoice processing• Reduces staff time of keying the invoice into MFMP
(or FLAIR)• Reduces payment cycle time, including providing
faster payment to vendors• Removes the need to scan and attach copy of the
paper invoice– DFS does not require a paper copy for electronic invoices
• Vendors can receive electronic notifications if the agency rejects an invoice
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MyFloridaMarketPlace Update
Additional information • Next Customer Roundtable meeting is May 7
– We will discuss year-end• Updated the “MFMP 3.0 Manual” with a new section
related to contracts, starting on page 15– Find the manual online: MFMP 3.0 Manual
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Stages Three and Four survey resultsOverview• The Department of Management Services released our second survey to state
agencies in early February. The Stage Three and Four survey collected further information about each state agency’s typical solicitation development and posting process.
• A big thank you to all individuals who participated in the survey process; we will be incorporating your feedback into the Procurement Process Improvement Project (PPIP) efforts moving forward.
Below is a brief summary of our key findings:• Total survey responses received – 18 (25 percent response rate)
– 16 agencies represented (42 percent of total agencies)• 94 percent of respondents feel they could benefit from standardized formal
solicitation templates.• 81 percent of respondents do not have user guides or job aides available to assist
them in preparing for supplier negotiations.• 75 percent of participants have a formal process in place to review a solicitation
before it is released to vendors.• 25 percent of participants identified that negotiation strategies require formal
review and approval before the event takes place.Key Survey Quote: “Formal solicitation standardization is highly recommended.”
Procurement Process Improvement Project
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Current use of systems:• Respondents use the following systems during the
solicitation process:• Vendor Bid System – 100 percent• Vendor Information Portal – 47 percent• E-mail, telephone, website – 18 percent• e Quote tool – 12 percent
Public Advertisement Challenges:46 percent of respondents feel that “lead time” is the most challenging aspect of public advertising in the solicitation process. (Considering multiple advertisement methods)
Hosting of the pre-bid conference:• 35 percent of participants responded that they host pre-bid
conferences for at least half of all solicitations released.• 23 percent of responding agencies rarely/never host a pre-
bid conference.
12.5%
56.3%
18.8%
6.3%6.3%
Do you feel your agency is adequately prepared and trained in the supplier
negotiation process?
Strongly AgreeAgreeDisagreeStrongly DisagreeNot Applicable
1.5 1.8 2.1
6
10.2
1 1.5 2
4.5
7
02468
1012
RFQ RFI ITB RFP ITN
Average (in weeks)Median (in weeks)
For a typical solicitation, how much time (in weeks) does it take to draft / develop each
solicitation type listed below?
Preparedness in the supplier negotiation process:• 69 percent of respondents believe they are adequately
trained in the supplier negotiation process.
Procurement Process Improvement Project
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Procurement Process Improvement Project Stages Five, Six, and Seven survey results
Overview• The Department of Management Services released its third survey to state
agencies in mid-March. The Stage Five, Six, and Seven survey collected further information about each state agency’s evaluation, award, and contract process.
• A big thank you to all individuals who participated in the survey process; we will be incorporating your feedback into the Procurement Process Improvement Project (PPIP) efforts moving forward.
Below is a brief summary of our key findings:• Total survey responses received – 15 (21 percent response rate).
– 15 agencies represented (39 percent of total agencies).• 86 percent of participants faced no vendor protests in the last year.• 73 percent of participants seldom required clarification from a vendor during
the last year.• 67 percent of participants use a standard tabulation sheet to record vendor
pricing and scoring.• 43 percent of participants use standard contract amendment templates.Key Survey Quote:
“Top protest issues faced by my agency are specifications, scope of service, and intended award.”
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Responsible and responsive:• 46 percent use a standard template/sheet to verify if a
vendor is responsive and responsible.• 53 percent do not use a standard template.
Solicitation timing:• The average time for all participants to complete the
process for each solicitation is as follows.• ITB: 2 weeks• RFP: 3.5 weeks• ITN: 6.5 weeks
Solicitation review process:• 43 percent have a formal process in place for performing
internal solicitation review.• 36 percent use an informal review process.• 21 percent do not use an internal solicitation review
process.
Formal Review Process
43%
No Review Process
21%
Informal Review Process
36%
Does your agency have a formal process in place for performing internal solicitation reviews?
ITB RFP ITN01234567
From the time solicitation responses are re-ceived to the documenting and selection of a
vendor(s), on average how much time (in weeks) does your agency take to complete this process for each solicitation type listed below?
Procurement Process Improvement Project
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Procurement Process Improvement Project Project management team changes• Hal Houston, gubernatorial fellow, joined us in August 2011
just as we were launching the Procurement Process Improvement Project
• He has been instrumental in advancing this project• His fellowship ends next week and he ‘gets’ to begin
studying for the Florida Bar exam.
Thank you, Hal, and all the best to you!
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Procurement Process Improvement Project Project management team changes• Melissa Hanifan, project manager, is leaving and relocating
with her family• She has been instrumental in leading this project and all its
components• Accenture will bring Jim Bard on board as the project
manager• Wayne Mitchell, State Purchasing governance manager, is
the project lead for the Department of Management Services
Thank you, Melissa, and all the best to you and your family!
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