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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