Purchasing Directors’ Meeting May 15, 2008

Purchasing Directors’ Meeting May 15, 2008

Purchasing Directors’ MeetingMay 15, 2008 • Agenda • DHL • Bureau A • Bureau B • Legislative Update • MFMP • Reminder About Next Meeting Date

DHL Global Mail Services Overview State of Florida

DHLGM Contact Information DHLGM Contact Information • Primary Bob Tyler Regional Sales Manager, Florida 407 322 7675 Office 770 653 1170 Cell • Secondary Tom Veit National Product Director 916 983 3183 Cell

Corporate Overview We Don’t Just Move Your Mail. We Move Your Business Forward. Core competencies • World-class mail solutions • Global and local residential delivery services • All types of mail: parcels, directories, annual reports, direct mail, DVDs, catalogs, publications • Innovative mail processing and fulfillment program • Dependable customer service

International Reach All the Network You Need, For All the Markets You Want. DHL Global Mail offers limitless opportunities for success-minded, high-volume mailers. No other mail provider offers a comparable network covering the world’s markets. A global network built on local strength: • The biggest private provider of mail services in the U.S. • Offering solutions to 200 countries, 50 processing centers on 4 continents • Mail solutions customized for local markets • Global business mail, parcel, direct mail, periodical and catalog solutions reach your customers at every point on the compass

DHL Global Mail & US Postal Service Relationship • Business Partners Since 1996 • One Of The Largest USPS Customers • Strong & Active DHL Global Mail/USPS Team • Streamlined Preferred Staging & Dock Times • Provide Data to USPS Resolves Delivery Problem Areas

US Postal Partner • Addresses Delivered per Day(in Millions)

DHLGM Process • We pick client’s shipments • Line haul to our closest mail processing terminal • Weigh it with scales calibrated to 1/10,000 lb • Apply postage • Sort it by 3 digit zip codes nationally and 11 digit zip codes locally • Scans ~ receiving , scan out bound, scan inbound & USPS manifest scan • Next morning air to our 20 DHLGM facilities nationally inject USPS locally • Send to appropriate designated USPS DDUs & Sectional Center Facilities • USPS delivery in 24-48 hours

Encoding ~ DHLGM Manifest Processing Processing Each Parcel weighed to 1/10,000 lb Postage applied per weight CASS certification ZIP Code Corrections Address Verification Content assurance to verify consistency of contents Assign 11 digit Delivery point barcode

The Process 1 Project Management DHL Global Mail’s dedicated team provides you with the information to manage your mailing and fulfillment needs. 2 Local Pick Up We will pick up at your facility (or any other location) and transport the materials to our Mail Terminals. 3 Processing DHL Global Mail will consolidate and expedite your mail and parcels to reduce postage costs and enhance delivery times. 4 Distribution The mail is transported by air or ground to the appropriate USPS facility. 5 Delivery Final delivery is handled by the United States Postal Service.

Domestic Reach Streamlined Delivery Network Our clients achieve volume discounts without sacrificing delivery performance. With DHL Global Mail, your mail bypasses several USPS origin facilities and is entered into the Mail Terminal nearest the final destination. Here, we use Dallas, Texas as an example of how our Mail Terminals connect to allow you faster delivery and more savings.

Domestic Reach

Workshare Partner of the USPS Leveraging the Final Mile We join forces with the United States Postal Service under the Workshare program to ensure reliable, tried-and-trusted local delivery. • The USPS is the leader in “final mile delivery” • The Postal Service reaches 140 million addresses daily • P.O. Box, rural and Saturday delivery at no additional cost-adding 52 delivery days to your calendar • DHL Global Mail and USPS representatives meet regularly to review operations and performance

What We Mail - Product Examples Bound Printed Matter Parcels Flats • Annual Reports • Advertising • Insurance Booklets • Welcome Kits • Catalogs • Inserts • Membership Directories • Renewal Booklets • Class Schedules • Catalogs • Books • Directories Media Mail • Prescriptions • Apparel • Samples • Lightweight Merchandise • Photo Processing • CDs • Books • Film • Computer-Related Media • Printed or Recorded Music

SMARTMAIL FLATS® 1-16 oz. SMARTMAIL BOUND PRINTED MATTER® 1-15 lbs. SMARTMAIL MEDIA MAIL® 1-70 lbs. SMARTMAIL CATALOG FULFILLMENT® 1-16 oz. 1-15 lbs. DHL@home® 1-70 lbs. Budget 5-10 days Budget 5-10 days Budget 5-10 days Budget 4-10 days Deferred 2-7 days Expedited 2-5 days Expedited 2-5 days Expedited 2-5 days Expedited 3 -6 days Standard 2-4 days Annual reports, welcome kits, advertising material, information requests Membership directories, renewal booklets, class schedules, books Books, film, computer-related media, printed or recorded music, video tapes Requested catalogs, owners manuals, welcome kits, electronic media, books Apparel, product samples, electronics, prescriptions, general merchandise Domestic Product Portfolio Domestic products at a glance SMARTMAIL PARCEL® 1-16 oz. SMARTMAIL PARCEL PLUS® 1-70 lbs. Budget 5-10 days Budget 4-8 days Expedited 2-5 days Expedited 2-5 days Prescriptions, product samples, photos, jewelry, CDs/DVDs, general packaged merchandise Apparel, product samples, electronics, prescriptions, general merchandise

Value-Added Services DHL Global Mail Web Portal • Interactive/customizable • Customer-defined content • Secure interface to access DHL GM invoicing, reporting and tracking delivery information Ease-of-use Features • Provides up-to-date volume reports on shipping activity • Downloadable invoices up to 90 days • Tracking multiple piece by full or partial address based on customer or USPS tracking number • Delivery performance, package-level detailed data management and address reports • Excel-compatible format allowing customers to manipulate data and make educated decisions • Enhanced delivery performance reporting • Secure log-in • Customer customized 1 1 Sample Reports Page

Value-Added Services Tracking Details Additional Information • Recipient address • Ship date • Total weight • DHL GM tracking number • Customer unique ID USPS Delivery Confirmation For detailed information, click on the USPS delivery confirmation number, which is a link to the USPS site. Tracking History Shows date, time, location and activity details Available Results The available results are displayed, listing all options corresponding to the address and date range combination. Click on the desired address to view the tracking history. If there is no information, or the input parameters are not correct, a “NO RECORDS” message will appear. 1 2 1 3 2 3 4 4

Operations Start with Label Postage label applied At DHLGM facility Return Address Customer Ship To Address Delivery Confirmation Bar Code Scanned at the DHLGM Facility And Integrated to USPS System

Staged for Pick Up With BOL’s (Bill Of Laden)

Parcels Sorted by USPS Distribution Facilities and Delivered to USPS

US Postal Letter Carrier Delivers Last Mile Final Destination 24-48 Hours

DHLGM International Solutions US Cross-Border GLOBALMAIL Product Line Cross-border GLOBALMAIL Type of Mail Business Mail Business and personal correspondence, documents, account statements Direct Mail Solutions for promotional direct mail and catalogs Publications Solutions for periodical mail including magazines, newsletters and other publications Parcel Parcels of merchandise,gifts,samples Light-weight < 4.4 lbs. Heavy-weight > 4.4 lbs. GLOBALMAIL BUSINESS GLOBALMAIL PUBLICATION GLOBALMAIL PARCEL Product Groups Registered Mail Mail Fulfillment Services Special Routing Options SmartCharge Address Management Direct Mail Postal Consulting Mail Fulfillment Services Special Routing Options SmartCharge Address Management Publication Fulfillment Services Special Routing Options SmartCharge Address Management Parcel Fulfillment Services Special Routing Options including Track & Trace SmartCharge Address Management Value-AddedServices Service Levels Priority Service: 4-8 days Standard Service: 8-14 days

DHL Global Mail Benefits in Review • ØTracking every piece of mail by address • ØProof of Processing for every address • ØVariable Weight Manifesting to avoid over payment of postage • ØAddress Verification to prevent delayed and undeliverable mail • ØZip Code Correction to prevent delayed and undeliverable mail • ØSelective Routing and Delivery to bypass problem delivery areas • ØAccountability for each and every piece of mail • ØDelivery Testing Services to insure timely delivery • ØDependable pickup and transportation • ØDelivery Commitment from the USPS • ØSavings off full rate First Class postage

Questions Thank You!

Bureau A Contract Updates • Contract Renewal in Process: • Air Conditioners: Expires June 17 • Contract Expirations: • Food Service Operations: June 30 • (SPA) Radar Detection Equipment: May 15 • (SPA) Print on Demand & Forms Management: May 3 • Solicitations in Progress: • Ice Machines • Brenda Wells, 488-6904 • Recycling of End of Life Electronics • Charles Day, 410-2426

Bureau A Activity Updates • Energy & Transportation Team: • Boat Motors: New Products for Mercury • Tires: New Products & Prices for Goodyear & Firestone • Medium & Heavy Trucks: Renewed through May 31, 2009 • Furnishings & Institutional Supplies Team: • Purchasing Specialist Vacancy • MRO & Law Enforcement Team: • Uniforms: Superior Uniform Group Pricing Issue • Purchasing Specialist Vacancy • SPAs & Special Projects Team: • GreenProducts List has been updated

Bureau B Contract Updates • Contract Renewal in Process: • Ocean Marine Insurance Policy • Contractor’s Equipment Insurance Policy • Contract Expirations: • IT Hardware July 31 • PBX • Key Systems • Solicitations in Progress: • IT Hardware Phase 2: Network Infrastructure • Telephony Equipment

Bureau B Activity Updates • Solicitations in Development: • Managed Travel Services • Gift Card • P-Card • Hot Topics • Office Depot Audit Findings • Michael Bailey, Purchasing Analyst • EMMS Contract Overview • Live Scan Overview

Legislative Overview 2008 Legislative Session Statistics: • 2156 Total Bills Filed in the House and Senate • 89 Local Bills Filed in Both the House and Senate • 269 Bills Passed Both the House and Senate • 39 Local Bills Passed Both the House and Senate • Therefore, Only 13% of Bills Filed this Year Actually Passed

Legislative Overview HB 181/SB 392 Transparency in Local Government Contracts: • Agencies required to provide links to electronic copies of contracts exceeding $5,000. • Agencies required to record every contract executed and every payment made under that contract with the contract number in FLAIR. • This bill did not pass.

Legislative Overview HB 7123 Government Accountability and Efficiency: • Agencies required to provide links to electronic copies of contracts exceeding $25,000. • FLAIR reporting requirements were the same as the previous bills mentioned, except excluded were water management districts, university and college boards of trustees, and state universities and colleges. • This bill did not pass.

Legislative Overview SB 216/HB 79 State Procurement Advisory Committee: • Established a committee charged with evaluating the entire state procurement process including policies, rules, procedures, and practices of the departments and instrumentalities of the executive branch. • Provides how the committee members would be appointed and how the committee would be terminated. • This bill did not pass.

Legislative Overview HB 687 Service Disabled Veteran Business Enterprises: • Creates a Vendor Preference for businesses satisfying the statutory requirements. • Preference applies when considering two or more bids, proposals, or replies, equal with respect to all relevant considerations including price, quality, and service. • If a business to which another preference applies is also equal (notwithstanding s. 287.057 (12), F.S.), then award to the business with the smallest net worth. • This bill did pass! • Takes effect November 11, 2008 (Veteran’s Day).

Legislative Overview HB 7109 Small Business Regulatory Relief: • Established committee which may: • provide agencies with recommendations about proposed rules or programs adversely affecting small businesses; • consider requests from small business owners to review rules or programs an agency adopts; • review rules promulgated by agencies to determine whether an unnecessary burden is placed on small businesses • Provides that agencies shall furnish to the advocate (i.e. director) any reports or information that are public records the director deems necessary. • If an agency promulgates a rule which affects small businesses, the agency shall prepare a statement of estimated regulatory costs pursuant to s. 120.541, F.S. • This bill did pass! • Takes effect July 1, 2008.

SPURS Sunset Update • Legislative Change Request under design • Discussions with Legislature weekly • Meeting with them to work out approval flows • DFS auditing issue • Dialog with DFS continues on SPURS Vendor–add functionality

SPURS Sunset Update - SPURS Actions • There is a new form for SPURS actions. Customers will need to fully complete this form before SPURS actions will be completed. • When submitting your request, please ensure that ‘SPURS ACTION REQUIRED’ is included in the subject line of the e-mail. • The updated PUR7018 form is located at: http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/buyers/myflorida_marketplace_toolkit/myfloridamarketplace_forms

Change Requests Parallel concurrent path. No cost or reduction in resources for CRB priorities.

Change Review Board / CR 37 Update • The Change Review Board (CRB) met on March 19th and reviewed estimates for prioritized change requests: • The CRB voted to move forward with CR 37 (Mass edit for Purchasing Code and Method of Procurement fields) • Overview of the enhancement: Changes will be made to the pre-existing mass edit functionality for requisitions so that the Purchasing Code (labeled “Buyer Code” in MyFloridaMarketPlace) and Method of Procurement fields can be updated for multiple line items • Addendum 1: Changes will also be made to the pre-existing copy functionality so that when a requisition is copied or when a line item on a requisition is copied, the Method of Procurement field is also copied

Change Review Board / CR 37 Update • As part of this system enhancement, additional Method of Procurement values are also being added to MFMP. These include: • FI - Informal quote per s. 255.0525 • H1 - Agency ITB per s. 255.0525 • I1 - Agency RFP per s. 255.0525 • J1 - Agency ITN per s. 255.0525 • O1 - Emergency per s. 255.0525 • O2 - Emergency per Executive Order • 10 - Exempt, advertising or promotional items purchased per 20-104.003 (Dept. of Citrus only) • 11 - Lottery Procurement • This enhancement is currently targeted for the May 2008 release • 13 v. 34

SIR 889 A Change button will now appear on all orders in a “Received” status. • SIR 889 - A Change Requisition generated a new DO ID instead of a new DO version because the original order and requisition moved to Received state after the change was submitted. • Example: An order was filled by a vendor but required the addition of a freight charge. Before completing the last receipt on the order, the requester created a change requisition to add a new line item to accommodate the freight charge. While the change requisition was being processed through its approval flow, the receipt was completed. This moved the original order and requisition to the Received state. To date, MFMP configuration and business processes would not allow change requisitions to be generated when in the Received state. However, because the change was generated before the state change, the system allowed it to continue. Upon final approval, the changed requisition generated a new order for the added line instead of versioning the previous order and adding the new line. • Solution: allow orders in Received status to have a Change button without having to reopen them. Currently orders in received status cannot be changed unless the order is re-opened. • Pros: Received orders would not have to be reopened to initiate a change. The change button would appear. • Cons: Agency customers may initiate changes to add new line items.

Reports • There are several MyFloridaMarketPlace reports which are generated and posted to the DMS website (http://dms-purchasing-ftp.state.fl.us/xx00/) for use by agencies • A listing of the available reports along with a brief description for each is included in a Job Aid that has been posted to the MFMP Toolkit, this document is currently being updated (http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/buyers/myflorida_marketplace_toolkit) • The MFMP team is currently amending the following three reports to be separated into current fiscal year, previous fiscal year and historical data: • All Open Orders • All Received Orders • All Outstanding Encumbrances

Suggested Year-End Reports • All Open Orders Report • Purpose: This report is primarily used by Finance and Accounting personnel to identify all “Open” purchase orders to determine if invoices have been received and processed. This is also used by Purchasing personnel to determine if the purchase order needs to be changed, canceled or closed for future receiving. • Description: This report lists: • Purchase orders in Ordering, Ordered and Receiving status • PR’s in Submitted Status • Purpose: This report displays intended PR obligation by organizational code before the money is committed through a direct order. Managers are able to review spending plans before the agency is committed to an expenditure. • Description: This report will list: • The latest version of a PR in a Submitted status

Year-End Materials http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/buyers/myflorida_marketplace_toolkit/meeting_materials

Purchasing Directors’ Meeting May 15, 2008