January 27, 2009 9:00 am to Noon

1. PROCUREMENT POLICY COUNCIL January 27, 2009 9:00 am to Noon

2. PPC AGENDA • BMWBO – Gayle Nuppnau • Materials - Walt Quade • Correctional Industries – Anthony Miller • Services – Roxana Dietz • BSSO – Scott Pepperman • SRM – Cheryl Kleeman • Procurement Handbook – Cheryl Kleeman • Legal – Chuck Anderson • Green Procurement – Joan Kraft • Sole Source Web-site – Sue Plecker • Training – Jeff Mandel • Finance Transformation – Jeff Mandel Appendices Appendix A – Procure to Pay Appendix B – Education Curriculum Q & A Appendix C – Phased Implementation for Non-PO Appendix D - Grainger Appendix E - BI Old Workbook vs. New workbook Comparison

3. RFP/RFQ Cover Letter

4. RFP/RFQ Cover Letter http://www.dgsweb.state.pa.us/Comod/CurrentForms/BMWBOCoverLetter.doc

5. Procurement Handbook • Procurement Handbook • Part 1 Chapter 3 • Responsibilities • (4 e) Notification of contract commitments • - Contract fully execution • - 10 days BMWBO must be notified • - Proposed changes to contractual DB participation must be reported to BMWBO

6. STD-168 STD-168 – MBE/WBE Subcontractor and Supplier Solicitation and Commitment Form • Less than $50,000 – Program does not apply • More than $50,000, but less than $250,000 – Using agency • makes responsiveness determination • More than $250,000 – BMWBO makes responsiveness • determination • NOTE: Amounts include any renewals

7. Determining Responsiveness STD-168 • Presumed responsive if minimum participation levels are met (5% MBE 3%WBE) • If MPLs are not met, an evaluation must be conducted • Is STD-168 included • Properly completed • Has contractor solicited both MBEs and WBEs for all work which they intend to subcontract, and for all supplies/materials required for the job? • Has Contractor Certified That No SubcontractingOpportunities Exist, and No Materials Will Be Required (Or Are Already Available)?

8. Examples of Non-Responsive Bid Submissions STD-168 • STD-168 not submitted, or left blank • Contractor solicited only MBE or WBE firms (not both), and did not explain this deficiency • Contractor only solicited MBE/WBE firms not currently certified by DGS • Contractor received quotes from MBE/WBE subcontractors or suppliers, but did not provide an explanation for not committing to them

9. Non-Responsive Options STD-168 • Go to next low bidder • Rebid • Override - Part 1, Chapter 20

10. STD 168

11. STD 168

12. Scoring Update • Under Criteria for Selection, section III-4, if any Offeror is non-selected based on the 70% rule, DB must be rescored • Email • Narrative • RRP/RFQ Number • Name/s of Offerors • Mr. Stephen Nedimyer, snedimyer@state.pa.us

13. Materials Contract Updates Small Fuel Delivery Program: • ITQ Contract for deliveries less than 5000 gal. • This is a contract of convenience. • Qualify suppliers by county. • Agencies follow procurement procedures based on low dollar amount. • Agencies obtain Small Procurement Policy and obtain quotes from qualified suppliers in county, select best price. • Invoicing • Quoted prices firm, less potential for errors. • Mandated utility card use for orders under $5000 should remove bulk of past-due payment issues.

14. Road Salt • Many Agencies have depended on Penndot for Salt for their locations in the past. • Penn Dot has stopped supplying this service in many of their districts. • Please make sure your Agency sends BOP a requirement for the upcoming 2009/2010 Winter Season to assure that you have a supply available. Please send requirement to: Joel Shiffler 717-346-8179 joshiffler@state.pa.us

15. Contract Update

16. Contract Update

17. Contract Update

18. Pennsylvania Correctional Industries Toll-free: 877-ORDER-CI On-line: www.pci.state.pa.us Anthony Miller, Director “Teaching Inmates to Work in Pennsylvania” Pennsylvania Correctional Industries

19. Service Contract Updates

20. Service Contract Updates

21. IT/ITQ UPDATE Status of Enterprise ITQ Web-Site Development Phase 1 – Mid to Late February 2009 • Performed supplier demo/testing of ITQ Supplier module on December 31, 2008 • Currently, finalizing SRM user authentication process with IES • Master IT Services ITQ will be published • Suppliers begin preparing online qualification proposals Phase 2 – Mid March to Late April 2009 • Electronic receipt of supplier qualification proposals • Supplier qualification proposals are evaluated and results posted • Begin creating contracts in SRM Phase 3 – May 1, 2009 • Agency view of qualified suppliers and their Company Profile • Company Profile will include existing functionality in current ITQ website plus items such as: Financials, Rate Card and Agency Performance • Agencies begin solicitations

22. IT/ITQ UPDATE ITQ Timeline TASKSTARTCOMPLETE Obtain Form Approval for Contract 12/08 01/09 Hold Supplier Info Sessions on New ITQ 02/09 03/09 ITQ Publication 03/09 Vendor Qualification Process 02/09 New ITQ Procurements can begin to be posted 04/01/09 Deadline for work under Old ITQ 06/30/09 New ITQ Contract Begins 07/01/09

23. Dell purchase of ASAP Dell/ASAP Contract • 01/09/2009: Assignment letter received • 01/09/2009: ASAP started sending assignment letters out to agencies • 01/20/2009: Letter sent to all agencies to continue business as usual under current contract • Next Steps: • DGS will establish new contract and submit for signatures • DGS & IES will test new web site and punch-out • Once the new contract approved DGS will send out instructions to agencies. This will entail: • Agencies writing new POs under new contract to replace POs under old contract • Canceling any old POs • Address Service Issues

24. Delegation Request • Delegation Request • Method of Procurement • Added RFQ for IT-ITQ • Delegation Request Instructions • Expanded Roles & Responsibilities

25. Notice of Forthcoming Procurements Notice of Forthcoming Procurements • Forward the “Notice of Forthcoming Procurements” for upcoming solicitations which will: • Exceed the dollar thresholds as established in the Procurement Handbook, Part 1, Chapter 7 Thresholds and Delegations and OA/OIT Directives to DGS/BOP. • The notice should be submitted at least 12 months, before issuance of a solicitation (IFB/RFP/RFQ against the IT/ITQ). • DGS/BOP may— • Recommend the Agency submit a delegation request. • As the central procurement organization, lead or provide guidance and consultation on the procurement; • Consider the circumstances of the individual procurement, such as the complexity, availability, and urgency, when establishing the solicitation response time. • In the near future DGS/ BOP will be posting pertinent information from the Notice of Forthcoming Procurements on eMarketplace in order to: • Increase competition • Broaden industry participation • Assist small disadvantaged business concerns, enterprise zone, and women-owed and minority-owned small business concerns in obtaining information on upcoming procurements.

26. BSSO

27. BSSO

28. BSSO

29. SRM – BI Reports Business Warehouse (BW) is now called Business Intelligence (BI) Name Effective December 15, 2008

30. SRM – BI Reports Look

31. SRM – BI Reports Overview of Changes • Data Target: Procurement reports data now includes detailed information that previously was gotten via jump queries • Examples: PO detail PO number Line item MWBE indicators • Replacement of old reports • Reviewed usage statistics for existing workbooks • Reviewed BW change requests • Using new data target made determination on which workbooks needed to be recreated • Consolidated many workbooks into one which provides all data • Old workbook vs. new workbook comparisons are in the appendix

32. SRM – BI Reports • Chose workbooks to recreate based upon usage statistics in 2008:

33. SRM – BI Reports • Consolidation of reporting roles • Before: Five procurement roles • Now: One procurement role • New Role: YMW:SRM, Procurement Reporting • Subfolders for specific kinds of reports • Most new reports found in Purchase Orders and Contract subfolders • SRM Only reporting will be labeled as such (within the PO folder)

34. SRM – BI Reports • User Impact: • All users with items saved as FAVORITES will have to delete and recreate them • Users will have one role mapped to them instead of many • Users will be able to drill to detail without having to jump to another query • Less confusion on which workbook will provide the answer you are looking for • The new workbooks have less restrictions which gives users more flexibility

35. New BI Reports Training on New Reports • Classes available as of January 20, 2009 • Visit the Training Center’s Community Calendar on the DGS Website for dates Sign up via E-LMS • DGS Training website provides • Link to E-LMS • Guide to use of E-LMS

36. SRM – BI Reports Technical Difficulty . . . . A Failure Has Occurred • A failure on data extraction for Global Spend occurred • The affected reports are: • Top 25 Suppliers and Categories • Invoice Values • Global Spend Document Level Details • The data contained in the Global Spend workbooks is as of January 15, 2009 and no later • Anticipated fix time: Mid-February • Updates will be forthcoming

37. Supplier Enablement ERS – Current Suppliers • Todd Heller, LLC – Paint (PennDot) • Ennis Paint Corp – Paint (PennDot) • Flor Dri Supply Co – Calcium Chloride (DGS) • Greenwood Manufacturing – Corrugated Cartons (DGS) • Larry’s Lumber & Supply – Rock Salt (DGS) ERS – Pilot Activity • Initial go-live September 10th • Approximately 15 to 20 orders created, receipted and payments processed to date • Increase in activity: DOT paint season to begin mid-February ERS – Program Expansion • Tobacco Contract • PIBH Contract

38. Supplier Enablement SRM Punch-outs: Staples • Research conducted on current StaplesLink functionality • Order status • Order acknowledgement • On-line returns • Personal shopping lists • Personalized stamps • Results presented at 12/10/08 Procurement Connection Group meeting • Group provided feedback • Outcome: DGS will not pursue punch-out at this time

39. Supplier Enablement SRM Punch-outs: MeadWestvaco • In development process • 1 or 2 agencies to pilot (L&I & ?) • Information needed from agencies: • MRP: Agencies currently running MRP must provide a list showing the material master for each item • Agency Logo Artwork • Refer to: Commonwealth Style Guide • MeadWestvaco graphic requirements (provided) Email to Cheryl Kleeman ckleeman@state.pa.us Deadline for submission: Tuesday, February 17, 2009

40. Supplier Enablement MeadWestvaco graphic requirements

41. Supplier Enablement MeadWestvaco graphic requirements continued

42. SRM Issue • Bid submission error message • Price entry Warning Must be in the format~__.__~ • Does not indicate which line item the error message refers to • Hard error messages mixed with soft error messages Resolution • Tip message created • IES looking into re-ordering error messages • Hard error stops to the front Effective date: • To be determined. A formal notification will be sent to all agencies when a date has been set

43. SRM Subject: • Ship to addresses Effective date: • To be determined. A formal notification will be sent to all agencies when a date has been set Change: • SRM will require a valid ship to address on all shopping carts • XML suppliers receive on a weekly basis a list of valid ship to addresses with a system generated number • A validation has been added preventing requisitioners from overwriting the “Exec Branch” entry in the Name field • This validation was required to facilitate the transmission of XML purchase orders to suppliers • The validation is required to ensure an exact match of the address data with the address number

44. SRM • System messages have been created to communicate these validations • If a requisitioner overwrites the Name field, the message informs the creator that the field cannot be overwritten, please re-select a valid ship to address: • If a requisitioner has not selected a valid ship to address, a system message will instruct the creator to select a valid ship to address:

45. SRM • Set “Delivery address” attributes • Do not attempt to change the address • Will not encounter any system messages Setting Your Attributes 1. My Settings: Change Attributes 3. Enter Agency SRM address code 4. Click save 2. Attribute: Select Delivery address

46. SRM • Requisitioners relying on the Name field to add specific address information should: • Follow the current process • Request a new address number or Change existing address data • Use Ship To Address Change Form on the DGS website • Agencies can make the needed changes in the c/o Agency/Division field in place of the Name field: Example c/o Agency/Division: Jane Doe, DOT, Dist 08, Dauphin Cty Floor or Room#/Bldg: Keystone Bldg Rm 324 Street: 41 N. Commonwealth Ave, 3rd floor

47. REDUCING INQUIRIES to CSC Agencies can Reduce the Number of Inquiries to the CSC by: Limiting Inquiries to Only those Related to CSC’s Core Mission: SRM Questions Only Ceasing Inappropriate Inquiries to the CSC, i.e., Advising Suppliers to Contact the CSC for Assistance with Inquiries that are Specific to Agency Related Bids in SRM The CSC is Not Familiar with Agency Bids and the associated, Specifications, Statement of Work, Terms and Conditions and Documentation The Agency should Assist the Suppliers with all Inquiries that are Specific to Agency Related Bids 47

48. REDUCING INQUIRIES to CSC Continued Ceasing Inappropriate Inquiries to the CSC The CSC is Available to Provide Assistance with Generic Inquiries Related to Processing Bids Instructions for Bidding in SRM: http://www.dgsweb.state.pa.us/comod/SRMIFBGuide.doc Attempting to Purchase an Item that is Not on a Specific Contract Agency Purchasing Agents should Contact the Appropriate Commodity Specialist to Identify why an Item is Not on a Contract  This is Not a System Problem Identifying the Number of Envelopes in a Box Issuing Payment for an Invoice 48

49. Procurement Handbook Revisions PART I: Policies and Guidelines Chapter 1, General Provisions: • Chart added that defines areas where DGS sets agency procurement policy • Rev. Date 11/06/08 Chapter 2, Definitions: • Definition of subscription added • Rev. Date 01/07/09 Chapter 6, Methods of Awarding Contracts: • No bid contract Letter requirement • 70% requirement for BAFO or negotiation • Rev. Date 10/28/08

50. Procurement Handbook Revisions Chapter 7, Thresholds & Delegations: • Threshold matrix updated to reflect accurate descriptions • Language regarding lease-hold construction was removed • (Note – This language will be put back in with a revised threshold) • Rev. Date 11/25/08 PART I: Policies and Guidelines Chapter 20, Nondiscrimination: • Language regarding use of Form GSMWBE-16, MBE/WBE Subcontractor and Supplier Certification Solicitation and Commitment • Rev. Date 10/29/08 Chapter 50, Public Access to Procurement Information: • Entire chapter was revised • Rev. Date 12/09/08