Complete Q&A Set – AP Efficiency Study
Subject: Accounts Payable Payments Efficiency Study Project RFP /2013
Please provide an answer to the following questions:
1). What is the Expected or Budgeted Amount the UCOP is considering to spend on this study?
UC is looking to potential bidders to provide estimated costs to complete all phases of this
study. The pilot Campuses are all able to provide data necessary to do US Bank’s (our
Procurement Card partner) Accounts Payable Analysis, so we feel that the successful partner
will be able to use that to develop the analytical output needed.
2). By what date(s) does Phase 1, of the A/P Payable study need to be completed?
We would expect Phase 1 to be completed within 90 days of when the requested data pull is
delivered to consultant.
UCOP AP Efficiency RFP Questions
The objectives of this work seem generally focused on efficiencies and savings brought about
through changes in the way the pilot campuses perform payments. Strategically, payment
effectiveness can also be a result of specific processing and system oriented improvements are such invoice/voucher processing considerations also addressable in this initiative?
No.
The Campuses will have the option to utilize additional services. Due to the disparate systems
in place, that is beyond the scope of this initiative.
The activities related to handling foreign drafts, processing wires (domestic and foreign),
reconciliation of bank statements and checks, fx/currency exchange and foreign payments are
burdensome and manually intensive. With an emphasis on efficiencies after payment occurs,
will improvements to reconciliation activities after payment be considered as part of this
initiative?
No.
Similarly, with procurement cards being utilized as a current form of payment, should
procurement card reconciliation activities and the efficiency impact on these activities based on
recommended strategies be considered as part of this initiative?
No.
Please describe the roles of any identified pilot campus points-of-contact, and commitments
they have made to support the outcomes/deliverables of Phase 1. To what degree will UCOP
office of the CFO be available to support the Phase 1 effort with governance, leadership
engagement and supportive communications with the pilot campuses?
Both the Campus Controllers organization (and therefore Campus IT support) are fully
committed to supporting the project. There will be a single point of contact appointed by the
pilot Campuses.
The Director of Banking & Treasury Services has been assigned to oversee this project and is
fully committed to insuring the success of all phases.
I am interested in responding to your RFP and performing the services for the AP
Payment Efficiency Study.
My questions are below:
Who authored the RFP and the Exhibit II template for services being requested?
This RFP was authored by:
http://www.ucop.edu/financial-services-controls/index.html
with assistance from:
http://www.ucop.edu/procurement-services/index.html
Has a consultant or consulting firm already been involved or engaged on this project?
Banking & Treasury Services has a consultant who assisted with the RFP. That firm will not be
considered for this award.
Are all UC campuses using the same bank and payment programs?
Yes.
What bank or third party is currently being used for the p-card program? ACH program?
US Bank for PCard
BNY Mellon for ACH
What AP, GL & Payment software is being used?
Various - there is no standard across Campuses.
Is there a separate RFP for consulting services for AP automation?
No.
Is there any reason why someone from the east coast cannot or should not participate in this
RFP?
No – Although for interviewing, in person could be more effective.
Are there any requirements not found in the RFP that are needed to participate in this RFP
process?
No.
Process – It is our experience that causes of inefficiencies stem from upstream processes. As
part of the due diligence process for this project, what are your expectations to include
stakeholder interviews from other process areas? (for example, purchase order processing or
receiving)
Upstream processes are out of scope.
Process - Section 3, Item 3, Do you have any documented as-is processes for items a through
e? If so, can you provide this information as part of the RFP process before or on the start date
of the project?
No – Though each Campus might have some of the information.
KPI’s - How well are performance metrics measured and used to identify and remediate
problem areas in the payment process? Are the performance metrics set by UCOP and
standard across the UC system?
The KPI for disbursements that is by UCOP and standard across the system measures the
percentage of checks versus other (electronic) methods of payments. The intent is to drive the
desired outcome (payment by means other than checks) by setting a goal of 85% of payments
made by electronic methods (ACH, PCard, etc). Campuses are compared to each other to see
where they stand and learn best practices on how they can improve their processes.
Technology – Will the technology landscape be made available (from pilot campuses and
others) for us to provide our perspective?
No.
Data - Section 3, Item B1, Can we issue specific data requests before the project begins to have
data provided by UC before or on the start date of the project? Do you expect that data will be
available in electronic format for us to review? For example:
Is data available that ties payment information to invoice delivery method (e.g. EDI, Paper)?
Is data available that links payment details to whether or not the invoice is supported by a
Purchase Order and if so Purchase Order delivery method (e.g. EDI, Paper)?
That is reasonable. The project will start when the data is available to the consultant. Data will
be available in an electronic format and will include information to answer both examples.
INQUIRIES:
Given the analysis of vendors used by the pilot campuses, is UC interested in strategic sourcing
to consolidate vendors and capitalize on potential economies of scale?
Outside of scope.
Are different financial institutions used by the three pilot campuses (is the ODFI single to each
campus or single among all three campuses)?
All Campuses utilize same banking partners.
Is UC interested in a cost/benefit analysis of transitioning all campuses to one bank?
No.
Are common ERP and G/L systems used by all campuses for the validation of invoices
received?
No.
Deliverables of Phase 1 requires case studies of organizations of similar size and sophistication
to the UC that have successfully implemented Accounts Payable efficiency solutions. Is UC
interested in the active collection of relevant case studies during Phase 1 or does UC expect
the vendor to bring readily available case studies to the project?
Answer is in bold.
Are POs used by each campus for purchases over a certain dollar amount?
This may vary.
What Accounts Payable Policies and Procedure documentation is available?
There are both system-wide policy and specific Campus Policy.
What information is available relating to headcount and cost of the Accounts Payable functions?
That information will be made available.
What Purchasing policies and guidelines documentation is available?
There are both system-wide policy and specific Campus Policy
What systems and processes exist for the ordering of goods and services?
There are both system-wide policy and specific Campus Policy.
What other functions are involved in the end to end purchase to pay process?
This information will be made available.
What process optimization work is already being carried out by the pilot campuses?
Many of the Campuses have had an AP analysis performed for the purpose of placing P-Cards
in buying departments and utilizing a P-Card in Accounts Payable as a Payment tool.