MyFloridaMarketPlace

MyFloridaMarketPlace MyFloridaMarketPlace Customer Roundtable Meeting December 10, 2008, 9:00 am EST Conference dial-in number: (888) 808-6959Conference code: 4888366#

Agenda • Welcome / Introduction • eQuote Initiative • MyFloridaMarketPlace Updates • System Enhancements / Change Review Board Updates • Training Update • Training Survey Results • Reporting Survey Results • Vendor Activities • Grainger Presentation / Demonstration • Punchout Catalogs • Green Purchasing / FCFPPL • Questions / Open Discussion Page - 2

Agenda Welcome / Introduction eQuote Initiative MyFloridaMarketPlace Updates System Enhancements / Change Review Board Updates Training Update Training Survey Results Reporting Survey Results Vendor Activities Grainger Presentation / Demonstration Punchout Catalogs Green Purchasing / FCFPPL Questions / Open Discussion Page - 3

eQuote Initiative Walt Bikowitz, Deb Gries Page - 4

eQuote Overview and Demonstration The current threshold above which state agencies must do a formal competitive procurement is $25,000 for Category 2 procurements (FS 287.017) The threshold was last increased in 1999 from $15,000 A survey of other states and the Federal Government indicates that most governments have a discretionary threshold of $50,000 to $100,000 Cost of procurement: A recent informal, non-scientific analysis shows the cost of procurement to be about $9,000 (281 hours per procurement x $32.00/hr. = $8,992)

eQuote Overview and Demonstration Who would like to see the discretionary threshold raised from $25,000 to $50,000 or more? It is not an easy sell

Office of Program Policy Analysis and Governmental Accountability (OPPAGA) OPPAGA July 8, 2008, Audit Report of State Purchasing Report No. 08-43 stated: “Many services are still exempted from competitive bidding requirements. However, while the bulk of the dollar value of procurements is subject to competitive processes, most purchases are not made through such processes because the state makes many purchases that cost less than the statutory thresholds for competition ($25,000) or are statutorily exempt. In Fiscal Year 2006-07, over half (51%) of non-construction related acquisitions by state agencies were exempted from competitive processes. Specifically, $205 million in goods and services (45% of all purchases), were not required to be competitively bid because their value was below the cost threshold of $25,000.” 10 10 Agencies may have used informal competitive processes, such as soliciting telephone quotes, for purchases that are below the cost threshold for competition.

eQuote Overview and Demonstration The Legislature wants to see competition To raise the threshold the Legislature has to be convinced that competition is not lost How do we, as an enterprise and as a state, demonstrate that competition under the Category 2 discretionary threshold level still exists? A) Written letter quotes attached to purchase orders B) Telephone quotes C) eQuotes THE ANSWER IS “C” eQuotes

Benefits of eQuotes Enterprise- and agency level purchasing documentation MFMP is developing new reporting capabilities, by agency, to document use of eQuotes for purchases under $25,000 and for STCs Documentation for audit purposes: State Term Contracts: Many STCs require obtaining a quote. Without eQuote an agency would have to create special tracking and reporting of STC purchases with a quote and would have to produce letter quotes manually for each PO issued. With eQuote, reports can be run and data captured over time. Purchases below the threshold of Category Two require written documentation of quotes as per rule 60A-1.002 (2)(3). Similar to STC reports can be run and data captured over time.

Benefits of eQuotes eQuotes can be directed to known suppliers or you can search for suppliers by their category of commodity/services provided eQuotes on average take 15 to 30 minutes to complete in MFMP (compare to 281 hours for a formal bid procurement) eQuote facilitates the post quote purchasing process. The requisition is processed as normal; however, the eQuote responses are viewable electronically (vs. as an attachment) and feed into your requisition/purchase order once you award the eQuote. Letter or telephone quotes do not. Because eQuotes are an electronic version of a quote, there is no need to scan and attach written documents to the requisition/purchase order

Benefits of eQuotes • Additional questions • eQuote demonstration

Agenda Welcome / Introduction eQuote Initiative MyFloridaMarketPlace Updates System Enhancements / Change Review Board Updates Training Update Training Survey Results Reporting Survey Results Grainger Presentation / Demonstration Punchout Catalogs Green Purchasing / FCFPPL Questions / Open Discussion Page - 12

System Enhancement Updates Rachael Lieblick Page - 13

System Enhancement Updates:Completed Change Requests

System Enhancement Updates:Pending Change Requests • CR 36: Make the encumbrance number the direct order (DO) number • Current Challenge: Currently, the system assigns an encumbrance number just before an encumbered requisition is sent to FLAIR. Once the requisition is fully approved, a DO number is assigned. As a result, there are two identifiers for an encumbered requisition and order: (1) a DO number or MA number and (2) an encumbrance number. • Proposed Solution: Encumbrance numbers are required to be six characters. Once the encumbrance number reaches 999999, alpha characters will be assigned (for example: A00000, A00001, A00002, ….). • When the encumbered requisition is fully approved and an order is generated, a DO number will be assigned starting with “DO” and then appended with the encumbrance number. • Encumbered and unencumbered requisitions will use the same incremental counter to reduce the frequency of creating duplicate DO numbers. • Design approval team agencies include DEP, DOH, DEA, DJJ, and DMS • Enhancement will be implemented before the end of March 2009

Training Update Kasey Bickley Page - 16

Training Update Since July 1, 2008, the DMS MFMP team trained 377 customers with an average evaluation score of 4.7 (with 1 being poor and 5 being excellent) We are securing facilities for FY 09 Q3 trainings (January-March 2009) Registration information will be posted late December Registration will open within 30 days of the training Outlook invitations are now sent as training confirmations We are now asking customers to print their training materials and bring them to class

Training Schedule Upcoming Training Locations • January - Orlando • March - Pensacola • April - Ft. Myers • May - Miami Tallahassee • We will continue to offer monthly trainings • Train-the-Trainer course to be offered in February

Training Attendance While agency customers continue to show a need for training … We have recently been experiencing a high volume of last minute cancellations and no-shows As a result, the November Jacksonville training was consolidated with St. Augustine training Low registration numbers For Tallahassee classes, waiting lists are utilized When people don’t attend or cancel late, those spots are not filled with customers from the waiting lists

Training Attendance • Beginning in January 2009, a list of the training participants, including a separate tab for customers who registered but did not attend training, will be generated monthly and sent to agency liaisons • Any other suggestions for improving attendance numbers?

Training Survey Findings Kasey Bickley, Amy Smyth Page - 21

Training Survey Findings • The 2008 Training Survey was conducted October 15th - November 5th • Survey distributed to all Purchasing and Finance & Accounting liaisons (including Directors) • Some agencies forwarded it on to their MFMP customers • A total of 94 participants completed this survey over a three week period • A hard copy of the Executive Summary is available • A complete report of the survey findings is available on the buyer toolkit under Communications • http://dms.myflorida.com/buyertoolkit Page - 22

Training Survey Findings Key proposed action items include: Establish regional liaisons in each agency (NW, NE, Central, SE, SW) to increase awareness of the DMS MFMP trainings and further communication efforts (key finding from Question #5) Conduct quarterly Buyer Teleconferences to highlight vendor outreach activities and assist agencies with vendor interaction and other valuable information (key finding from Question # 38-39) Add a page to the buyer toolkit for “Working with Vendors” to tailor vendor information from a Buyer perspective (key finding from Question # 38-39)

Training Survey Findings Develop a MFMP User Manual that is a template for agencies to input agency specific information and make available for their customers (key finding from Question # 29) Schedule meetings with each agency to discuss their internal training plans and assist with the development of a plan (key finding from Question # 6) Create and post additional job aids “How to Create a Non-Catalog Requisition” “How to Receive” “Vendor Registration for agencies”

Training Survey Findings Heighten awareness of the variety of information available on the buyer toolkit (key finding from Question # 25) Present the buyer toolkit and the materials it contains at the Purchasing Directors meeting and FASAASD (key finding from Question # 25)

Reporting Survey Findings Kasey Bickley, Amy Smyth Page - 26

Reporting Survey Findings • The MFMP Reporting Needs Assessment Survey was distributed to 611 customers • F&A and Purchasing Liaisons, Directors of Administration, customers with the Analysis group, and those who recently attended Secure Reports, Analysis, and System Administrator trainings as of 8/13/08 • Also sent to those who submitted Report Requests this calendar year (from 12/1/07 through 8/6/08) • More than 35% of selected agency customers participated • Represent 28 of the 32 state agencies • A hard copy of the Executive Summary is available • A complete report of the survey findings will be available on the buyer toolkit under Communications • http://dms.myflorida.com/buyertoolkit Page - 27

Reporting Survey Findings Key proposed action items include (in concert with the Gap analysis): Document the Report Request Process (key finding from Question 21) Develop MFMP Reporting Web page, which will be located on the buyer toolkit Aid customers in receiving Reporting information Develop Secure Reports OnDemand Training (key finding from Question 5) Update Reports Job Aid (key finding from Question 20) Create a Hot Topic on the Analysis Tool (key finding from Questions 28, 39, 41)

Vendor Activities • Upcoming Fireside Chats (Teleconferences) • 12/17 – MFMP Overview • 1/7 – 1% Transaction Fee and Reporting • Register and view presentations at http://dms.myflorida.com/vendorteleconferences • MatchMaker 2008 • State Purchasing / MFMP workshops • SDVBE

Grainger Demonstration Rick Lopez Page - 32

Grainger Demonstration State of Florida Contract Benefits

Florida Hand & Power Tools Contract • Contract Information • Contract #445-001-07-01 • Effective Dates: July 30, 2006 thru July 29, 2009 • Online Ordering Website • http://dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/state_term_contracts

Florida Hand & Power Tools Contract Benefits Manufacturer or Brand Name:Discount Based on MFG. List Price: CHANNELLOCK 49% COOPER TOOLS 52% CRESCENT 52% DAYTON 10% DEWALT 49% DREMEL TOOLS 40% FLUKE 10% KLEIN TOOLS 46% MILWAUKEE 50% PORTER CABLE 50% SPEEDAIRE 10% STANLEY GOLDBLATT 51% STANLEY MECHANICS 61% STANLEY PROTO 61% WESTWARD TOOL 60% BLACKHAWK PROTO 45%

State of Florida WSCA Contract • Contract Information • Contract #445-000-09-ACS • Effective Dates: November 14, 2008 – November 30, 2010 • Online Ordering Website: • http://dms.myflorida.com/business_operations/state_purchasing/vendor_information/state_contracts_agreements_and_price_lists/alternate_contract_source

WSCA 7066 Facts • WSCA Board of Supervisors unanimously award Grainger Contract • 15 original WSCA states • 29 Competitors responded to solicitation including: • MSC, Fastenal, CED, Wesco, Fischer Scientific, VWR • Grainger overall lowest price and best value • Most evaluation points vs. competition • Catalog-wide contract • Excluded items on State of Florida Web site • Competitively priced • www.aboutwsca.org

Key Benefits of the Florida WSCA Contract • Competitively bid and awarded agreement • Significantly reduces the bidding process • Catalog agreement - All Grainger catalog items are included in the agreement with the exception of the Florida excluded contracts • Sourcing, consulting Services • Covered under contract • Significant catalog and manufacturer discounts • Supported by NASPO – The National Association of State Procurement Officials • www.naspo.org • Competitively priced

Florida WSCA Contract Benefits Product LineDiscount off Grainger Each Price (reference Web site for current pricing) MOTORS & POWER TRANSMISSION 28% METALWORKING & SHOP SUPPLIES 10% CLEANING & PAINTING EQUIPMENT AND SUPPLIES 10-20% MATERIAL HANDLING PRODUCTS 10% SAFETY & SECURITY 10-20% FLUID POWER 10% PUMPS & PLUMBING 10% HVAC & FILTRATION PRODUCTS 10-50% .

WSCA Contract 7066 by State WA ME MT ND VT MN NH OR MA WI NY SD CT RI ID MI WY NJ PA NE IA OH DE MD NV IL IN WV UT VA CO KS KY CA MO 35 Participating States NC TN OK SC GA AZ NM AR AL MS AK LA TX FL HI

Process for Utilizing Florida WSCA • All State Agencies are currently included under the WSCA agreement • All Non-State Agencies will need to complete the “Move Form” • The completed Move Form (a separate document completed by the Account Manager) will assure that agency will be moved to the WSCA contract

State of Florida Landing Page • www.grainger.com/stateofflorida

Dedicated Grainger Resources • Assigned Implementation project manager • Cross-referencing specialists • Consulting services group • Janitorial & safety regional program managers • Marketing resources • Aligned field customer service teams • Key manufacturer relationships

Grainger Services • Local team to support your service requirements • Local inventory to meet your needs • Prepaid freight • Same day shipping • 24-hour emergency access 800-Call-WWG • 24-hour repair parts availability 800-323-0620 • Easy ‘No Hassle Return Process’ • E-procurement support

Let’s get started… What questions do you have?

Punchout Catalogs • Punchout Catalogs are designed to assist the agency customer with their ordering needs • Punching out is the “Amazon.com” experience - You shop at the vendor’s Web site, which is set up specifically for State of Florida customers • Vendors with punchout catalogs in MFMP are: • Dell • Fisher-Scientific • Gateway • Grainger • Hewlett Packard • Lenovo • Office Depot • VFImagewear Page - 47

Punchout Catalogs • Punchout sites are randomly monitored by the contract manager to ensure ongoing compliance (products and prices) • The requisition line item fields are automatically populated. Some of these items include, but are not limited to: • Full Description • Supplier Part number • State Contract approved price (cannot be modified) • State Contract ID field (cannot be modified) • Error rate and workload is reduced because of limited data entry • Once the requisition is approved, orders are electronically submitted to these punchout vendors electronically, via the Ariba Supplier Network (ASN) Page - 48

Punchout Catalogs • To locate the punchout site: • Conduct a catalog search by entering the punchout vendor’s name or type in the keyword “punchout” • Select the “Buy From the Supplier” button • Punchout directly to the site • Comments/Attachments • Purchases made by using the punchout site do not require attachments to be sent to the vendor • Un-check the box so that any attachments included are not sent to the vendor • Attachments included and checked to go to the vendors on punchout purchase orders are delayed and are not processed as a punchout order • Orders are processed, but as an adhoc (or non-catalog) order • Orders not made through the use of the punchout are not able to be electronically invoiced (eInvoice) Page - 49

Searching for a Punchout Catalog By typing in the keyword “Dell”, the first return in the catalog is the Buy From Supplier link, which will take you directly to the vendor’s punchout site. Page - 50

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