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Improving How We Do Business in Virginia: Procurement Reform for the Commonwealth

Improving How We Do Business in Virginia: Procurement Reform for the Commonwealth. Lemuel C. Stewart Chief Information Officer Commonwealth of Virginia NASCIO Corporate Leadership Council April 25, 2004. History.

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Improving How We Do Business in Virginia: Procurement Reform for the Commonwealth

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  1. Improving How We Do Business in Virginia: Procurement Reform for the Commonwealth Lemuel C. Stewart Chief Information Officer Commonwealth of Virginia NASCIO Corporate Leadership Council April 25, 2004

  2. History • IT Procurement Reform was launched during a time of major change in IT and state government • IT Consolidation launched in July 2003 to consolidate the IT “utility” of 90 executive branch agencies into VITA • Scope includes nearly 1,300 employees supporting 60,000+ users in more than 1,500 locations • VITA given sole procurement authority for IT in July 2002 • Governor’s Commission on Efficiency and Effectiveness findings and recommendations in December 2002 • Virginia would rank 50th if it was in S&P500 • State has tremendous opportunities to leverage buying power and embrace and implement better solutions and tools • Virginia does not purchase and utilize IT in the most cost-effective manner

  3. Purpose • To develop a new technology procurement business process based on best practices. Desired state: • Leveraging Virginia’s ample buying power • Innovative tools and solutions • Increased use and usefulness of statewide technology contracts • Fast and flexible processes • Positive relationships with customers and partners • Value-oriented, not price-oriented • Business-driven and enterprise-oriented • Fair, standardized contract vehicles • Making Virginia much easier to do business with!

  4. Progress & Accomplishments • Centralized IT procurement • Realignment of organization into functional teams • Solutions-based RFP approach • Limited terms and conditions as mandated • Innovative public-private partnerships • Virginia Partners in Procurement Program participant • Technology-enabled procurement • Alternative dispute resolution to reduce protests and disputes • Cooperative procurements

  5. Results • Savings for Virginia Partners in Procurement • Estimated savings of $7.6 million for computer hardware and software • Anticipated savings of $1.3 million for storage media • Reverse auction is expected to save more than 15% for media storage tapes • More standardization of configurations • Local governments and higher education have the ability to purchase • Positive feedback from supplier community

  6. Challenges & Requirements • Significant change management • Removing barriers and agency “silos” • Internal staff awareness and training • Updating skills and systems • Executive leadership and buy-in • Tying procurement to state standards, architecture, and project management • Focusing on “quick wins”—commodities with greatest potential for cost reduction and savings through aggregated purchasing • Fostering statewide buying cooperation through stakeholder involvement

  7. Opportunities • Public / Private Educational Facilities and Infrastructure Act of 2002 (PPEA) • Innovative, risk-sharing partnerships • Unsolicited proposals for major projects like tunnels, schools, jails, and data centers • Innovative financing models for significant expenses • Supplier diversity • Small, women- and minority-owned participation • Consolidated contracts from all executive branch agencies • Movement to enterprise agreements and licensing

  8. Contact Information Please visit http://www.vita.virginia.gov to learn more about our procurement efforts Lemuel C. Stewart, Jr. Chief Information Officer of the CommonwealthVirginia Information Technologies Agency lem.stewart@vita.virginia.gov (804) 343-9002

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