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Purchasing Guidelines for State Customers

Purchasing Guidelines for State Customers. Shannon Kelley, Contract Manager Gerda Sessions, Contract Manager ICT Cooperative Contracts. ICT Cooperative Contracts. WHAT DO THEY DO? Create savings for taxpayers Leverage the state’s buying power to lower prices Contain best value

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Purchasing Guidelines for State Customers

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  1. Purchasing Guidelines forState Customers Shannon Kelley, Contract ManagerGerda Sessions, Contract ManagerICT Cooperative Contracts

  2. ICT Cooperative Contracts • WHAT DO THEY DO? • Create savings for taxpayers • Leverage the state’s buying power to lower prices • Contain best value • Optimize the purchase of ICT commodities and services • Streamlines process for customers • Reduces duplicate efforts: all contracts competitively procured • Reduces purchasing and contract cycle time: customers issue P.O. directly to DIR vendor • Simplifies sales process for vendors • Include ICT commodity items as contracted product offerings • Hardware • Software • Technology staffing services • Other ICT services with high customer demand (seat management, technology training, etc.) | 2011 Power to Purchase Technology Expo

  3. Who are DIR’s Customers? • Eligible Customers Include • State Agencies • Higher Education • K-12 Independent School Districts • Cities • Counties • Municipal Water Districts • Out of State Governmental Entities – Eligible as of September 2005 • Assistance Organizations registered with the Texas Facilities Commission or the Texas Comptroller of Public Accounts – Eligible as of September 2007 | 2011 Power to Purchase Technology Expo

  4. ICT Cooperative ContractsFY10 (Sep 09–Feb 10) • 747 Cooperative Contracts • 214 HUB Prime Vendors • 498 Total Resellers • 353 HUB Resellers • 41% growth in last 2 years (FY 08 – 10) • Over $1.5 billion in Sales in FY10 | 2011 Power to Purchase Technology Expo

  5. ICT Cooperative ContractsCost Savings/Avoidance • DIR CUSTOMERS/TAXPAYERS • Savings calculated as difference between DIR price and price available in other states and from other cooperative contracting programs • Additional value (soft costs) not included in calculation • Time/salary savings associated with streamlined procurement process • Additional services or benefits such as “free training” • Improved performance standards and accountability requirements Millions ICT Cooperative ContractCost Savings/Avoidance | 2011 Power to Purchase Technology Expo

  6. Over 3,000 active customers in Texas and 44 other states (FY2010) Sales by Channel FY10 YTD | 2011 Power to Purchase Technology Expo

  7. Available Products • Computers – over 20 brands • Software – over 1000 publisher titles • Networking Equipment – over 100 brands • Printers – over 25 brands • Surveillance Cameras – over 60 brands • Data Storage – over 20 brands • Digital Photography • Projectors • Security Products • Videoconferencing Equipment • Classroom Interactive Products • Graphing Calculators | 2011 Power to Purchase Technology Expo

  8. Available Services • IT Staffing Services – over 142 vendors • Training – Instructor Led and Computer Based • Seat Management – 7 vendors • Managed Document Output – 4 vendors • Deliverables Based IT Services (DBITS) – over 76 vendors • Telecommunications Services including: • Wireless Voice and Data • Pagers • Local Telephone Service • Long Distance • Internet • Satellite • Video • Interpreter Services – over the phone • Audio Conferencing • Cable Modem and DSL | 2011 Power to Purchase Technology Expo

  9. New Product Offerings • Emergency Preparedness Hardware • RFI Radio-frequency identification (RFID) • Radios/Radio Interoperability/Radio Test Equipment/Towers • Mobile Command Center • Emergency Preparedness Software • Enterprise Resource Planning (ERP) • Oracle • Springbook • A.R.T. Response Team • STW Inc. • Sage • Ziegner • Agular • Mobile Digital Video Recording Systems | 2011 Power to Purchase Technology Expo

  10. ICT Cooperative Contracting Process HOW DOES DIR ESTABLISH CONTRACTS? • DIR competitively bids all contracts • DIR establishes Statewide Master contracts with vendors for products or services when sufficient customer demand exists • DIR posts request for offers (RFOs) on the Electronic State Business Daily (ESDB) • RFOs are generally posted for 30 days • Many contracts include multiple awards • Contracts are awarded for a specified term • More frequent bidding opportunities • Regional RFOs | 2011 Power to Purchase Technology Expo

  11. Evaluation Process • Vendor responses evaluated using the following criteria: • Pricing • Vendor’s plan for supporting the contract • Quality and thoroughness of response • Vendor’s customer references • Contracts awarded based on Best Value • Vendors above the competitive break invited to negotiate | 2011 Power to Purchase Technology Expo

  12. IT Commodity PurchasingProcurement Process • Steps for procuring IT commodity items • Identify your need or IT commodity item class code • Use the National Institute of Governmental (NIGP) Commodity Book • Go to DIR’s website and search for the item • If the search produces results • Procure the item through one of the DIR contracts listed • Obtain quotes from listed vendors • Issue Purchase Order directly to the vendor • Vendor will issue invoice directly to customers • Customers pay vendor • If the search does not produce results • “There are currently no DIR cooperative contracts for the IT Commodity item” • Proceed with the purchase through another procurement method | 2011 Power to Purchase Technology Expo

  13. IT Commodity PurchasingProcurement Process, continued • Example: Computer • Class/items code: • 204 (Computer Hardware and Peripherals for Microcomputers) • 60 (Monitors, Color and Monochrome (CGA, VGA, SVGA, etc.) • IT Commodity: Yes • Special purchasing programs: No • Search DIR website | 2011 Power to Purchase Technology Expo

  14. Website – Home Page | 2011 Power to Purchase Technology Expo

  15. Search Products & Services | 2011 Power to Purchase Technology Expo

  16. EXAMPLE – COMPUTER MONITORSearch by IT Commodity…Enter Class Code 204 | 2011 Power to Purchase Technology Expo

  17. EXAMPLE – COMPUTER MONITORClass code 204 – All Results | 2011 Power to Purchase Technology Expo

  18. EXAMPLE – COMPUTER MONITORNarrowed Results – Item Code 60 (Possible Sources) | 2011 Power to Purchase Technology Expo

  19. EXAMPLE – COPY MACHINEEnter Class Code 600 | 2011 Power to Purchase Technology Expo

  20. EXAMPLE – COPY MACHINEClass Code 600 – All Results | 2011 Power to Purchase Technology Expo

  21. EXAMPLE – COPY MACHINENarrowed Results – Item Code 43 | 2011 Power to Purchase Technology Expo

  22. EXAMPLE – COPY MACHINENarrowed Results - Item Code 43 No DIR Contracts | 2011 Power to Purchase Technology Expo

  23. Current Contracting Initiatives • Future Contracting Opportunities • Posted on DIR’s Web site to improve communications between DIR vendors and customers • Lists initiatives by procurement stage • Planning • RFO Postings – links directly to the posting on theElectronic State Business Daily (ESBD) • Evaluation • Negotiation • Recent Awards • Each initiative has a brief description, expected phase completion date, and contact information | 2011 Power to Purchase Technology Expo

  24. Example - Current Contracting Initiatives | 2011 Power to Purchase Technology Expo

  25. Current Contracting InitiativesPosting | 2011 Power to Purchase Technology Expo

  26. Current Contracting InitiativesEvaluation Phase | 2011 Power to Purchase Technology Expo

  27. Current Contracting InitiativesNegotiation Phase | 2011 Power to Purchase Technology Expo

  28. Current Contracting InitiativesNegotiation Phase, continued | 2011 Power to Purchase Technology Expo

  29. Current Contracting InitiativesRecent Awards | 2011 Power to Purchase Technology Expo

  30. Questions: ICT Cooperative Contract Program SHANNON KELLEY, GERDA SESSIONS shannon.kelley@dir.texas.gov; gerda.sessions@dir.texas.gov 512-463-7666; 512-936-2766 ICT Cooperative Contracts Division www2.dir.state.tx.us | 2011 Power to Purchase Technology Expo

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