LA GRAD ACT 2.0 PROCUREMENT Faculty Senate October 3, 2011 La Grad Acts • Act 741 (2010) - effective: June 29, 2010 • Grants increased autonomy and flexibility in exchange for a commitment to meet clearly defined statewide performance goals. • Act 418 (2011) - effective: July 12, 2011 • Key focus on “Operational Autonomies” • Procurement granted 3 levels (Base, Intermediate, and High) • High level autonomies include: • Authority to participate in a pilot procurement code in lieu of the state procurement code Grad Act 2.0 - Procurement • 5 Institutions qualified at high level – – – – – LSU ULL La Tech Southern at Shreveport McNeese • LSU applied to initiate the pilot procurement code. Pilot Procurement Code • Proposed Schedule – – – – – System Approval – December 1, 2011 DOA Approval – January 1, 2012 Promulgation of Rules – March 31, 2012 Approval of JLCB – May 31, 2012 Execution of new Pilot Procurement Code – July 1, 2012 – Go Live for eProcurement – July 1, 2012 – Pilot Procurement Code July 1, 2012 – June 30, 2015 FY 2011 – Spend Analysis Spend Transactions Total Spend ≈ $320m Total Transactions ≈ 160,000 Purchase Orders ≈ $275m Purchase Orders ≈ 12,000 PCard Spend ≈ $45m PCard Transactions ≈ 148,000 Spend Transactions Purchase Orders PCard Purchase Orders PCard Pilot Procurement Code Freedom of bureaucratic processes that slow procurement down Procurement acclimated to a Research and Academic Institution More Selection at First Dollar of Spend More Reasonable Competitive Limits Convenience of One Stop Shopping Multi-year Terms Pilot Procurement Code • Combines laws governing procurement of materials, professional services, and data processing – No more separate processes for different types of contracts – Less Confusion – Templates that can be electronically submitted and digitally signed – Simple – More Selection through more Strategic Sourcing – Lower Costs Pilot Procurement Code • NEW Competitive Methods – – – – – Reverse Auctions Best and Final Offers Solicitation for Offers Cooperative Purchasing Agreements Electronic Purchasing (eProcurement) eProcurement • Easier methods to procure by using webbased system • Real-time Competition • Better Vendor Sources • Can continue to use P-Card • Spend Analysis • Electronic bidding and signatures Together Pilot Procurement Code and eProcurement Benefits • Reduces Operating Costs • Hosted Technology • Saves Users Time • Utilizing Automated Workflow • Get More for Less • Better Supplier Contracts • More Selection by Connecting Users to Suppliers • Accessible Contract Catalogs THANK YOU FOR YOUR FEEDBACK Marie C Frank, MPA, CPPB Executive Director of Procurement and Property Management (225) 578-2307 mfrank@lsu.edu LSU Purchasing 213 Thomas Boyd Hall Baton Rouge, La. 70803