Purchasing Directors’ Meeting July 19, 2012

1. Purchasing Directors’ Meeting July 19, 2012

2. Agenda • Welcome Comments – Kelly Loll • Introductions – All • CPO Updates – Kelly Loll • FACTS – Christina Smith • MyFloridaMarketPlace Updates – Danielle Kosberg • PPIP, Legislative and Training Updates – Wayne Mitchell • Florida Emergency Supplier Network – Donna Smith • State Purchasing Sourcing Events – Kelly Loll • Hot topics - All

3. Strategic Sourcing ITN Governor and COO tasked DMS with $100 million in target savings • To initiate this effort, on June 19, 2012, DMS issued an Invitation to Negotiate to obtain a Strategic Sourcing Service Provider to assist the state in completing at least 20 new sourcing events within ten months to result in new state term contracts. • At this time, DMS estimates that contracts resulting from these sourcing events should generate over $100 million in savings to the state over the next two years.

4. Government Efficiency Task Force Subcommittee Recommendations • Increased utilization of state term contracts • Review all statutory barriers and remove those unnecessary for full utilization of state term contracts • Create a process that gives DMS an approval role for non-state term contract purchases by agencies • Increased utilization of MyFloridaMarketPlace • Review the 1 percent usage fee for MyFloridaMarketPlace and adjust to allow for the greatest utilization by state agencies and other eligible users • Measure full cycle utilization of MyFloridaMarketPlace through DMS • Provide a public facing catalog solution for other eligible users of MyFloridaMarketPlace • Convert Florida commodity codes to the National Institute of Governmental Purchasing (NIGP) codes • Increased effectiveness of MyFloridaMarketPlace • Implement a data analytics solution for MyFloridaMarketPlace • Automate electronic posting of solicitations created in Sourcing to the Vendor Bid System (VBS) • Automate the workflow between the Ariba Buyer and Ariba Sourcing modules of MyFloridaMarketPlace • Provide a public portal for contract information

5. Government Efficiency Task Force Subcommittee Recommendations (continued) • Strategic Sourcing: • Utilize the increased visibility and volume in spend achieved via increased use of state term contracts and MyFloridaMarketPlace to strategically procure commodities and services. • Create an incentive model that utilizes savings achieved by agencies to encourage participation in strategic sourcing • Consultants’ Competitive Negotiation Act (CCNA) • Allow agencies to utilize the “Best Value” process for all professional services within architecture, professional engineering, landscape architecture, or registered surveying and mapping. This process would allow price to be a factor of up to 50 percent when ranking the top three most qualified firms.

6. FACTS • Department of Financial Services • Christina Smith, Director of Accounting and Auditing

7. MyFloridaMarketPlace Updates • eQuote Pilot • Demo July 24 during PPIP meeting • Invite your agency customers to attend July 24 and Aug. 7 meetings • Send names and e-mail addresses to Linda by Friday, July 20 • MFMP team needs to set up eQuote access • Must be present to ‘win’ • Between July 24 and Aug. 7, run 3-5 eQuotes • Live and test • MFMP team finalize any changes by Aug. 10 • In production by Sept. 1

8. MyFloridaMarketPlace Updates eInvoicing Update • New eInvoicing vendors • Airgas • July 2012 target implementation (contingent on testing) • AMD • Fisher Scientific • Others in process • Sun Surgical • Patterson Dental Will start looking at Wave Two vendors soon!! Please e-mail us any suggestions you have.

9. MyFloridaMarketPlace Updates Performance Workgroup • DJJ, State Courts, DEP, DOT, DOH, DFS Audit, DC • SIR 1816is causing delayed IR approval time and/or system errors for many agency customers.  Top priority. • Tuning opportunities throughout the application. • Improving System Search response time.  New quarter date range in upcoming 9.6 release.  • In addition, the team is evaluating the “Query All” permission to reduce the number of open-ended system searches.

10. MyFloridaMarketPlace Updates Coming Soon: • August 23, 2012 • MFMP System Administrator Workgroup Meeting • MFMP Invoicing Workgroup Meeting • MFMP Training Schedule • Buyer and Vendor Training Opportunities • Train-the-Trainer • MFMP Analysis

11. PPIP Updates Procurement Process Improvement Project • Bi-monthly meetings as of July • Remaining projects for this phase of the project: • eQuote adoption • Non-competitive solicitation review • Guidebook

12. Legislative Initiatives Based on recommendations of the PPIP group and the Government Efficiency Task Force Subcommittee, the division will be proposing some legislative amendments to portions of Chapter 287 to improve the efficiency of purchasing and contracting operations. We welcome your suggestions for improvement of the procurement process for consideration as future legislative proposals. E-mail them directly to: Wayne.Mitchell@dms.MyFlorida.com.

13. Legislative Update: Scrutinized Vendors On July 10, 2012, State Purchasing sent a memo to all purchasing directors with information from Department of Management Services General Counsel. • During the 2012 legislative session, the legislature enacted Chapter 2012-196, Laws of Florida, amending section 287.135, Florida Statutes (“the Amendment”). The Amendment prohibits state agencies from contracting for good or services over $1 million unless the contracting business certifies that it does not conduct “business operations” in Cuba or Syria. • Recently, Odebrecht Corporation, Inc., sought to block enforcement of the Amendment, bringing a lawsuit against the Florida Department of Transportation (FDOT) in the United States District Court for the Southern District of Florida. On June 25, 2012, the Court entered a preliminary injunction enjoining the FDOT from implementing or enforcing the Amendment. See attached: Order Granting Prelim. Inj. Odebrecht Construction, Inc. v. Prasad, No.12-cv-22072-KMM (S.D. Fla. Jun. 25, 2012). The Court concluded that the Amendment is preempted by federal law and “inoperative on its own terms.” Order at 1. • Unless and until such time as a court order lifts or reverses the injunction, state agencies should respect the Court’s conclusion that the Amendment is unconstitutional and unenforceable. All state agencies should follow the law as it existed prior to the Amendment that became effective July 1, 2012.

14. Legislative Update: Preferences Amendment to section 287.084, Florida Statutes, Florida-based business preference, effective July 1, 2012: • The major changes can be summarized as follows: • The reciprocal preference is now mandatory, not simply discretionary. • The 5 % preference must be given to an in-state vendor if an out-of state vendor is based in a state in which there is not a preference. • The state cannot preclude an in-state vendor from being an authorized reseller of information technologies that meet certain requirements. Amendment to section 295.187, Florida Statutes, granting a preference to Wartime Veterans-owned businesses, effective July 1, 2012: • The effect of the amendments to section 295.187, Florida Statutes, is to change the existing certification for “service-disabled” veteran owned enterprise, to “Florida certified veteran business enterprise.” The certified veteran business enterprise preference will exist to resolve a tie when at least two “equal” solicitation responses are received, and one is from a certified veteran business enterprise. The designation as a certified veteran business enterprise will be available for businesses, which qualify as a service-disabled veteran owned business, and for a business owned and operated by a veteran who provided at least 90 days total active duty during one of several designated wartime periods.

15. Training Advanced Negotiations Recertification Course • Winter Park, City of Orlando – September 6-7, 2012 • Tallahassee – September 25-26, 2012 • Live course, DMS curriculum and instructor • Training is being developed for future initial certifications from currently available materials in purchasing, contract management, and negotiations. • An RFI has been issued to explore partnering with a facility or learning institution to produce, broadcast and make available virtual Web-based on-demand, state certification training for contract management, negotiations, and purchasing officer training. The RFI closes on July 19. More information is forthcoming. Again, we would welcome any in-house training materials/reference sources you may have.

16. Florida Emergency Supplier Network Donna Smith Alternate Emergency Coordinating Officer (850) 488-8855 Donna.Smith@dms.MyFlorida.com

17. Current Sourcing Events • Strategic Sourcing Provider • MyFloridaMarketPlace • Pharmaceutical GPO • Food Products and Delivery

18. Anticipated Sourcing Events • Carpet and Flooring • Food Management • Motor Vehicles • Management Consulting Services • PCard • Pharmaceutical Wholesaler • Ice and Water

19. Hot Topics Open Discussion