Purchasing Directors’ Meeting
July 19, 2012
Agenda
•
•
•
•
•
•
•
•
•
Welcome Comments – Kelly Loll
Introductions – All
CPO Updates – Kelly Loll
FACTS – Christina Smith
MyFloridaMarketPlace Updates – Danielle Kosberg
PPIP, Legislative and Training Updates – Wayne Mitchell
Florida Emergency Supplier Network – Donna Smith
State Purchasing Sourcing Events – Kelly Loll
Hot topics - All
2
Strategic Sourcing ITN
Governor and COO tasked DMS with $100 million in
target savings
• To initiate this effort, on June 19, 2012, DMS issued an Invitation
to Negotiate to obtain a Strategic Sourcing Service Provider to
assist the state in completing at least 20 new sourcing events
within ten months to result in new state term contracts.
• At this time, DMS estimates that contracts resulting from these
sourcing events should generate over $100 million in savings to
the state over the next two years.
3
Government Efficiency Task Force Subcommittee
Recommendations
•
Increased utilization of state term contracts
– Review all statutory barriers and remove those unnecessary for full utilization of state
term contracts
– Create a process that gives DMS an approval role for non-state term contract purchases
by agencies
•
Increased utilization of MyFloridaMarketPlace
– Review the 1 percent usage fee for MyFloridaMarketPlace and adjust to allow for the
greatest utilization by state agencies and other eligible users
– Measure full cycle utilization of MyFloridaMarketPlace through DMS
– Provide a public facing catalog solution for other eligible users of MyFloridaMarketPlace
– Convert Florida commodity codes to the National Institute of Governmental Purchasing
(NIGP) codes
•
Increased effectiveness of MyFloridaMarketPlace
– Implement a data analytics solution for MyFloridaMarketPlace
– Automate electronic posting of solicitations created in Sourcing to the Vendor Bid
System (VBS)
– Automate the workflow between the Ariba Buyer and Ariba Sourcing modules of
MyFloridaMarketPlace
– Provide a public portal for contract information
4
Government Efficiency Task Force Subcommittee
Recommendations (continued)
•
Strategic Sourcing:
– Utilize the increased visibility and volume in spend achieved via increased use of state term
contracts and MyFloridaMarketPlace to strategically procure commodities and services.
– Create an incentive model that utilizes savings achieved by agencies to encourage
participation in strategic sourcing
•
Consultants’ Competitive Negotiation Act (CCNA)
– Allow agencies to utilize the “Best Value” process for all professional services within
architecture, professional engineering, landscape architecture, or registered surveying and
mapping. This process would allow price to be a factor of up to 50 percent when ranking the
top three most qualified firms.
5
FACTS
Department of Financial Services
• Christina Smith, Director of Accounting and Auditing
6
MyFloridaMarketPlace Updates
eQuote Pilot
• Demo July 24 during PPIP meeting
- Invite your agency customers to attend July 24 and Aug. 7 meetings
- Send names and e-mail addresses to Linda by Friday, July 20
- MFMP team needs to set up eQuote access
- Must be present to ‘win’
• Between July 24 and Aug. 7, run 3-5 eQuotes
 Live and test
• MFMP team finalize any changes by Aug. 10
- In production by Sept. 1
7
MyFloridaMarketPlace Updates
eInvoicing Update
• New eInvoicing vendors
– Airgas
• July 2012 target implementation (contingent on testing)
– AMD
– Fisher Scientific
• Others in process
– Sun Surgical
– Patterson Dental
Will start looking at Wave Two vendors soon!! Please e-mail us any
suggestions you have.
8
MyFloridaMarketPlace Updates
Performance Workgroup
– DJJ, State Courts, DEP, DOT, DOH, DFS Audit, DC
– SIR 1816 is causing delayed IR approval time and/or system
errors for many agency customers. Top priority.
– Tuning opportunities throughout the application.
– Improving System Search response time. New quarter date
range in upcoming 9.6 release.
– In addition, the team is evaluating the “Query All” permission
to reduce the number of open-ended system searches.
9
MyFloridaMarketPlace Updates
Coming Soon:
• August 23, 2012
– MFMP System Administrator Workgroup Meeting
– MFMP Invoicing Workgroup Meeting
• MFMP Training Schedule
– Buyer and Vendor Training Opportunities
– Train-the-Trainer
– MFMP Analysis
10
PPIP Updates
Procurement Process Improvement Project
• Bi-monthly meetings as of July
• Remaining projects for this phase of the project:
– eQuote adoption
– Non-competitive solicitation review
– Guidebook
11
Legislative Initiatives
Based on recommendations of the PPIP group and the Government
Efficiency Task Force Subcommittee, the division will be proposing
some legislative amendments to portions of Chapter 287 to improve
the efficiency of purchasing and contracting operations.
We welcome your suggestions for improvement of the
procurement process for consideration as future legislative
proposals. E-mail them directly to:
Wayne.Mitchell@dms.MyFlorida.com.
12
Legislative Update: Scrutinized Vendors
On July 10, 2012, State Purchasing sent a memo to all purchasing directors with
information from Department of Management Services General Counsel.
•
•
•
During the 2012 legislative session, the legislature enacted Chapter 2012-196, Laws of
Florida, amending section 287.135, Florida Statutes (“the Amendment”). The Amendment
prohibits state agencies from contracting for good or services over $1 million unless the
contracting business certifies that it does not conduct “business operations” in Cuba or
Syria.
Recently, Odebrecht Corporation, Inc., sought to block enforcement of the Amendment,
bringing a lawsuit against the Florida Department of Transportation (FDOT) in the United
States District Court for the Southern District of Florida. On June 25, 2012, the Court
entered a preliminary injunction enjoining the FDOT from implementing or enforcing the
Amendment. See attached: Order Granting Prelim. Inj. Odebrecht Construction, Inc. v.
Prasad, No.12-cv-22072-KMM (S.D. Fla. Jun. 25, 2012). The Court concluded that the
Amendment is preempted by federal law and “inoperative on its own terms.” Order at 1.
Unless and until such time as a court order lifts or reverses the injunction, state agencies
should respect the Court’s conclusion that the Amendment is unconstitutional and
unenforceable. All state agencies should follow the law as it existed prior to the
Amendment that became effective July 1, 2012.
13
Legislative Update: Preferences
Amendment to section 287.084, Florida Statutes, Florida-based business preference,
effective July 1, 2012:
• The major changes can be summarized as follows:
(1) The reciprocal preference is now mandatory, not simply discretionary.
(2) The 5 % preference must be given to an in-state vendor if an out-of state vendor is based in
a state in which there is not a preference.
(2) The state cannot preclude an in-state vendor from being an authorized reseller of
information technologies that meet certain requirements.
Amendment to section 295.187, Florida Statutes, granting a preference to Wartime
Veterans-owned businesses, effective July 1, 2012:
• The effect of the amendments to section 295.187, Florida Statutes, is to change the existing
certification for “service-disabled” veteran owned enterprise, to “Florida certified veteran
business enterprise.” The certified veteran business enterprise preference will exist to resolve a
tie when at least two “equal” solicitation responses are received, and one is from a certified
veteran business enterprise. The designation as a certified veteran business enterprise will be
available for businesses, which qualify as a service-disabled veteran owned business, and for a
business owned and operated by a veteran who provided at least 90 days total active duty during
one of several designated wartime periods.
14
Training
Advanced Negotiations Recertification Course
• Winter Park, City of Orlando – September 6-7, 2012
• Tallahassee – September 25-26, 2012
• Live course, DMS curriculum and instructor
• Training is being developed for future initial certifications from currently
available materials in purchasing, contract management, and negotiations.
• An RFI has been issued to explore partnering with a facility or learning
institution to produce, broadcast and make available virtual Web-based ondemand, state certification training for contract management, negotiations, and
purchasing officer training. The RFI closes on July 19. More information is
forthcoming. Again, we would welcome any in-house training
materials/reference sources you may have.
15
Florida Emergency Supplier Network
Donna Smith
Alternate Emergency Coordinating Officer
(850) 488-8855
Donna.Smith@dms.MyFlorida.com
16
Current Sourcing Events
• Strategic Sourcing Provider
• MyFloridaMarketPlace
• Pharmaceutical GPO
• Food Products and Delivery
17
Anticipated Sourcing Events
• Carpet and Flooring
• Food Management
• Motor Vehicles
• Management Consulting Services
• PCard
• Pharmaceutical Wholesaler
• Ice and Water
18
Hot Topics
Open Discussion
19