E-Commerce Discussion Panel Panelists: Joan Matsumoto, MA Carol Wilson, CT Mike Mangum, NC Tina McLamb, NC eProcurement in Massachusetts April 4, 2006 What is an eProcurement System? • Typically, “e” implies web-enablement, but generally means “paperless.” • Use of the term “eProcurement” may vary from state to state • May be a single system or many systems • May be fully or partially integrated, or not integrated at all • May support only a portion of the state’s public entities or all • May be required by law or regulation for some or all processes Online Bidder QuickTipshttp:// www.mass.gov/osd eProcurement Processes Bids Contracts Purchases Bidder Registration Record Management Catalog Creation/Management Encumbrance Record Management* Bidder Notification Catalog Purchasing Reconciliation Bidder Notification Vendor Management Order Receipt Payment Bidder Conference Request for Quote Bid Submission Bid Tabulation Bid Disposition Reverse Auction * BIDS: WTO Notices, RFI, RFP, ITB, Internal Requisitions Online Bidder QuickTipshttp:// www.mass.gov/osd Payments Public Bidder Questions Required? Fee/Bond? Bidder or Buyer Managed? Goods & Services, Human and Social Services, Construction? Single or multiple systems/sources within the state? Online Bidder QuickTipshttp:// www.mass.gov/osd eProcurement in Massachusetts: Comm-PASS Bidder “Registration” Bidder Notification Record Management Bidder Conference Bid Submission • Comm-PASS is the Commonwealth Procurement Access & Solicitation Site • Launched in 1997 to increase competition, value through public access • Home-coded “bulletin board” replaced by BearingPoint system in 2004 • Data system supports workflow, transactions for bid-contract processes • Required posting site for announcements/bid specifications for: • any executive department goods/services, human and social services bid exceeding $50K • all public entity construction exceeding $10M • Open to any public entity in Massachusetts at no charge, includes free training • Posting are accessible at no charge to anyone with Internet access • THERE IS NO PRE-QUALIFICATION/REGISTRATION IN MASSACHUSETTS Online Bidder QuickTipshttp:// www.mass.gov/osd Statewide Contract Procurements on Comm-PASS • All announcements, requests for information, solicitations, and contract awards • All written questions must be submitted via the Forum • All written answers are posted via the Forum • Bidders may elect to subscribe for optional value-added services • Automatic notification of new posting and amendments for solicitations, contracts, forums • Appear in the Business Directory, a publicly accessible “yellow-pages” style web-listing • Create and submit responses online to eliminate paper, waive and defer wet-ink signatures • Bid tracking through a customizable system “desktop” • Subscription is not required to access or respond to any posted opportunity • Subscription fees are based on Massachusetts fee policy: avoidable, based on cost offset Online Bidder QuickTipshttp:// www.mass.gov/osd Public Access Online Bidder QuickTipshttp:// www.mass.gov/osd Public Access Online Bidder QuickTipshttp:// www.mass.gov/osd Online Bidder QuickTipshttp:// www.mass.gov/osd Online Bidder QuickTipshttp:// www.mass.gov/osd Online Bidder QuickTipshttp:// www.mass.gov/osd Online Bidder QuickTipshttp:// www.mass.gov/osd Online Bidder QuickTipshttp:// www.mass.gov/osd Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd Subscriber Desktop Online Bidder QuickTipshttp:// www.mass.gov/osd E-Commerce in Connecticut Carol Wilson, C.P.M., Director of Procurement State of Connecticut April 4, 2006 E-Commerce History in Connecticut • 1997 – Developed website with general procurement information – Contracts viewable online. • 1998 – Inception of online Bidder Notification System (moved away from paper mailing of bid notices and advertising in publications). Online Bidder QuickTips E-Commerce History in Connecticut • 2000-2002 – Announced and Implemented Connecticut’s 1st agency online ordering system – “Orderlink” for contract purchases. • 2003 – Migrated from “Orderlink” to statewide ERP system (integrated central accounting, purchasing, personnel and payroll system). • 2005 – Enhanced online Bid Notification System to State Contracting Portal (all agency solicitations posted here – open, transparent, accessible Online Bidder QuickTips government). E-Commerce History in Connecticut • 2003-2006 – Focus on obtaining clean Data Catalogs required from Suppliers for ERP purchasing system (E-Catalogs). • 2005-2006 – Developed and Rolled-Out Online Small/Minority Business Certification Application System. Online Bidder QuickTips What’s Next in Connecticut? • 2006 – Expect to roll-out online Supplier Performance Reporting & Resolution System (interactive between agency, procurement office and suppliers). • 2006 – Developing online Bid Response System. Online Bidder QuickTips How can Suppliers Assist Us? • Utilize Procurement web options (bid notification systems, online certifications, bid response systems). • Communicate and Provide Constructive Feedback for Improvements • Provide Procurement Staff with Technical Contacts who can competently respond to ECatalog needs. Online Bidder QuickTips External (Supplier) Challenges of E-Catalogs • Complete and Accurate Catalogs (contract data) • Properly Formatted Catalogs (field names, field lengths, field types, required vs. optional fields, etc.) • Timely Catalog Updates/Maintenance Online Bidder QuickTips Internal (State) Challenges of E-Catalogs • System Functionality • Timely Catalog Updates/Maintenance • Impact of Errors on other ERP System modules • Impact of Integrity of Data on Accounting Functions/Audit. Online Bidder QuickTips Keys to Success in ECommerce Initiatives • Be Flexible • Stay informed of latest initiatives • Communicate • Participate Online Bidder QuickTips Questions? Online Bidder QuickTips NC E-Procurement @ Your Service Overview April 2006 E-Procurement Overview The system, which went live in October 2001, is comprised of the Ariba Buyer web-based software product with public sector extensions, a Statewide Vendor Registration application, and a marketplace for performing informal quotes electronically. E-Procurement is an effort to transform the way the State of North Carolina purchases goods and services, as follows: It is an enterprise e-procurement system that allows government entities to aggregate their purchases to obtain better prices from their suppliers. Users are empowered to use online requisitioning through the Internet with direct access to state term contracts. Entities can choose to decentralize the purchasing process. The eQuote tool allows users to submit requests for quotes to specific vendors for items below the sealed bid and advertising requirement, replacing more manual quoting processes. Responses (quotes) are submitted and evaluated electronically. Orders and approvals are routed electronically. 42 E-Procurement Statistics E-Procurement Statistics: As of March 5, 2006 Over 1 million purchase orders issued Over $5.6 billion in purchases Over 45,000 vendors registered Over 13,000 system users 238 purchasing entities using system Who is using NC E-Procurement @ Your Service? All State Agencies - 29 Institutions and Hospitals - 15 Local Education Authorities (K-12 Public Schools) – 115 of 115 Community Colleges – 57 of 58 Local Governments - 22 43 E-Procurement Organization Sponsorship – Governor’s Endorsement – Enabling Legislation – Sponsoring Agencies • Purchase and Contract • Information Technology Services • Office of the State Controller Enterprise-Wide – – – – – State Agencies Institutions & Hospitals K-12 Public Schools Community Colleges Local Governments 44 E-Procurement Organization Advisory/Work Groups Cross Entity Representation – Advisory Committee – Users Groups – HUB Office Business Model – No Appropriated Funding – Transaction Fee on Purchase Orders Project Management – State Project Director – State/Accenture Management Committee – Accenture as Application Service Provider 45 E-Procurement Features Functionality – Electronic Requisition – Automated Rule-Based Approval – Funds Checking – P-Card – Electronic Purchase Orders – On-line Receipts – eQuote/Informal Quote Tool – Catalogs/Term Contracts – Vendor Registration/HUB Certification – Reporting Core Software – Ariba – eQuote (custom) – Vendor Registration (custom) 46 E-Procurement Scope On-line integration with six financial systems – State Agencies/Institutions – 1 Financial System – Community Colleges – 1 Financial System – K-12 Public Schools – 4 Financial Systems Additional Opportunities – – – – Reverse Auctions Strategic Sourcing Integration with Universities Continued statewide rollout to local government 47 Support for E-Procurement Program 40 personnel supporting E-Procurement operations Call center handling roughly 500 customer inquiries per week; also supporting user communications and training Application support providing ongoing maintenance and enhancements for the system Technical support hosting the E-Procurement infrastructure and providing 99.5% availability New Development Team responsible for implementing local schools, community colleges, and universities Catalog enablement managing content for approximately 125 State Term Contracts and 500 catalogs Billing team creating and processing an average of 6,000 invoices per month to 17,000 vendor locations. 48 Benefits of E-Procurement Reduced prices through increased competition and aggregation of demand Increased operating efficiency and reduced administrative costs One Stop Shopping Online quoting tool – eQuote Increased order accuracy Online catalogs for statewide term contract items Electronic approval flows Access to new vendors Auto-Tabulated quotes 49 E-Procurement Benefits Analysis In reaction to staffing and budget constraints from 2001 through 2003, the State leveraged E-Procurement to spend its dollars more efficiently and manage the procurement function more effectively. Price reduction savings over first two years of E-Procurement operations: $127 million Cost savings of $127 M are the result of a 7.24% decrease in prices. First-class purchasing system has been implemented and maintained with no State funds expended as a result of an innovative public / private partnership. 50 Specific areas of measured benefit eQuote: Savings average 26% on items purchased using eQuote. Term Contracts: Savings realized range from 3% to 23% on term contracts re-bid as a result of changes in contract strategy due to eProcurement. Cycle Time Reduction: Process savings range from 26 – 50% when the elapsed time from order creation to goods receipt was measured for four agencies one year prior to E-Procurement go-live and one year after EProcurement go-live. 51 E-Procurement Honors Awards Received: Digital Government Award for Innovation in State Government Best of the Web Award – 1st place, Government to Government category IT Cronin Award – Honorable Mention 52