1 december 10, 2008 9:00 am to 11:00 am procurement connection

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December 10, 2008

9:00 AM to 11:00 AM

PROCUREMENT CONNECTION

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Agenda

Updates from October 15th Meeting – Cheryl Kleeman1. Invoicing Plans2. Full product category descriptions are not visible in

SRM/SAP and as a result the wrong categories are being selected

3. What is the definition of “subscription”?4. Why are communications regarding contract changes

sent in multiple ways which are not consistent for every change?

5. Rejection of Sole Source shopping carts

Business Process6. ERS – Cheryl Kleeman7. Staples Office Supply Contract – Jeff Mandel

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Agenda

Financial Transformation8. Shopping cart approvals by agency fiscal office (Finance

Transformation Project Requirement) – Patti Chapman

Technical – SRM/SAP System9. Extension of closed solicitations10. New BI (formerly BW) reports for Procurement – Karen

Smeltz/Chris Olnick11. Impact of use of Describe requirements on punch-outs – Cheryl

Kleeman

Legal12. RFP Template – Pam Cross

eMarketplace13. Updates to eMarketplace – Sue Plecker

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October 15th Meeting UpdateAgenda Item #1

Invoicing Plans:

Why can't the purchasing agent check the delivery box and enter the

serial numbers into all PO's issued for the lease of a MFD from the Ikon

contract once the machine is delivered?– Comptroller indicates that each PO must be done at the

beginning of each appropriate fiscal year.

Update:

The invoicing plan procedure issued with the contract and posted on

the DGS website provides specific instructions on when the delivery

box indicator is to be checked. The instructions indicate the box should

only be checked on the Validity start date of the PO. This procedure

was developed as a result of meetings with DGS, IES, Comptrollers &

Treasury prior to implementing the invoicing plan functionality.

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Product Category Descriptions: Full product category descriptions are not visible in SRM/SAP and as a result the wrong categories are being selected.

– The system will not stop a PO that has an incorrect product category

– What is the reason behind needing a specific category– Is it because of reporting of usage in BW

Update: – The product categories used by the Commonwealth are the

United Nations Standard Products and Services Code® (UNSPSC ®)

– If you are unable to find an appropriate code in the SRM or SAP systems or cannot see a full description you can search for codes on the UNSPSC website at www.unspsc.org

– There are currently 20,000 +/- UNSPSC codes– Codes are 8 digits in length

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1. Go to the website: www.unspsc.org

2. Click on “Search The Code”

3. In the search field enter a description and click on search.

Tip: The simpler the description you search by (i.e. paper)

the more results you will return

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4. When your search results come up review the list for the most appropriate code and description.

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Future Code Changes

–Number of codes increasing to 40,000+

–Proposed action

–Going from 8 digit to 4 digit codes

– Level 2: First 4 digits of 8 digit code

– Descriptions will be broader, easier to identify

– Going from 20,000+ to 6,458 codes

Impact of Changes:

–Existing codes will remain in the system

–Existing codes will not be marked DNU (do not use)

–Existing POs with old codes will not be affected (codes remain the same)

–Will roll up punch-outs to new numbers (will not affect existing POs)

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Subscription definition: What is the definition of “subscription”?

– Field Procurement Handbook does not include web-based subscriptions or software as a service

– These items are being purchased as subscriptions– Should they be purchased through the ASAP

contract

Update: DGS Legal Counsel has drafted a new definition. The new language is currently being reviewed for approval.

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Contract Change Notices:– Why are communications regarding contract changes sent in multiple

ways which are not consistent for every change?– Emails to PPC– Weekly contract change notifications– Posting to eMarketplace

Update: – DGS policy is that the official contract change notices are posted to eMarketPlace

– Weekly notice sent by Sue Plecker– High profile contracts or changes

• Special notice is sent– If a change notice was posted on the website and not included

on the weekly Contract Change Notification it was an oversight

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Changing Sole Source Shopping Carts:Is there a way to allow shopping carts to be modified after they are fully approved?

– Sole Source/Single Source – many times DGS wants changes made to the carts or additional documents attached.

– Requires a whole new cart– Creates additional work– Increase the processing time waiting for new cart to be created

and approved.

Group Discussion

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Suggestions received during Sole Source group discussion:1. Provide additional information to DGS via email, not require a new

shopping cart.2. Procedure to be correct regarding budget requirements on sole sources.

• Procedure says budget only required on those over $100,000.• DGS rejected one for not having budget, was under $100,000.

• Does this refer to the requirements regarding Cost or Pricing Data Certification Form?

3. Agency puts shopping cart on hold, notifies DGS of pending cart and DGS reviews held shopping cart prior to submitting for full approval.

• Agency purchasing office review the sole source cart prior to submitting for full approval.

4. IES Suggestion: Don’t put the shopping cart on hold, placing it on hold will not ensure visibility of the status of the cart.

• Use DGS as an Ad-hoc approver (dependent on approver role).• Use agency purchasing office as an Ad-hoc approver (dependent on

approver role).5. Update procedure to reflect the need for the agency to redistribute the

shopping cart to DGS for processing.

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Business ProcessAgenda Item #6

ERS

How do we address voluntary price reductions from a supplier after an ERS PO

has been issued?

Answer:

The agency purchaser must change the PO to the corrected price prior to

entering the Goods Receipt. Since the invoice and payment process is

done over night any price reduction received after the GR is entered would

most likely require a reversal and/or credit memo.

Update on Phase II of ERS Pilot: Go live 12-15-08

Suppliers: Flor Dri Supply Co – Contract 4600013531 Calcium Chloride

Greenwood Manufacturing – Contract 4600012543 Corrugated Cartons

Larry’s Lumber & Supply – Contract 4400003307 Rock Salt Bags 50 lbs

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Staples Punch-out Catalog

# Function Detail

ImpactH-High

M-MediumL-Low

Comments/Questions

1 On-line Returns Returns will be a manual process by contacting the Customer Service via phone.

H They can process now via Stapleslink.com

IES: How are returns handled for p-card purchases done in person/over the telephone (not using the online sysetm) - what is the percentage of those?

2 Reporting Not sure what reporting capability will be available. May lose reporting breakdown by agency & by user. Current reporting capability includes: agency, user, sku, quantity, list price, line item and more.

H IES: If enabled via SRM pcard reporting is available in BW.

3 Credit process No way to process credits for back-ordered items and returns. With OfficeMax there were ±1000 credits per year.

H Do we get billed for back-ordered items?

4 No substitution of comparable items Cannot systematically switch to a non-PIBH item if the PIBH item is not available. The item will be placed on back-order. It would require a manual switch - Staples is not sure they can accommodate a manual switch. Will cause delay in receipt of ordered items.

H/M This is a limitation we have now. There is no sub if PIBH item is mapped.

5 Order management: status of order Punch-out orders will not have this capability

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IES: Current punchouts (Grainger & Wesco) are delivering within 1-2 days - if Staples is within the same timeframe, is this a concern?

6 Order acknowledgement via email Used by agency p-card holders to reconcile monthly statements. M IES: Order acknowledgements should not be used to reconcile pcard statements - packing slips from the actual product should be used.

7 Personalized stamps Personalized stamps will require a partial manual process. Currently enter personalized information on the StaplesLink site. M

Seems like a minor issue

8 Personal shopping lists Agencies will lose any they have created. Cannot create new ones via the punch-out. L

Not sure how much this is utilized?

9 No access to MSDS sheets thru punch-out Can get them from Customer Service or Sales Reps. Currently doing this.

L Not a sig. issue

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Group Concerns:1. Some agencies do not issue p-cards to field staff

• Probation & Parole: Orders given to procurement staff and procurement staff places the orders

• Revenue: Requisitioners do shopping carts for office supplies and the purchasing office places the orders.

2. Items 1, 5 & 6 on the spreadsheet• Many agencies concur there is great concern with losing this functionality• Going to the punch-out offers nothing in place of lost functionality

3. DOT really likes the order status functionality. • Enables field staff to see the status of their orders

4. Order acknowledgement functionality is available through SRM.• IES can look into enabling order acknowledgement• Agencies feel this would be helpful for other punch-outs, i.e. Grainger.

5. DGS policy on using current punch-outs vs. supplier website• Can agencies still get user IDs to use the supplier website instead of using the

punch-out?

Outcome: Based on the data gathered and the feedback from the group the decision has been made not to pursue a punch-out with Staples.

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Financial Transformation Project RecommendationAgenda Item #8

Shopping Cart Approval Requirement: Fiscal approval regardless of dollar value

–Excludes internal warehouse orders

Options discussed:–Create special role for Agency Fiscal

or

–Allow agencies to work within existing

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Decision: Work within existing based on analysis

Communication:

September - Agency project managers

October - Procurement Policy Council

December – Procurement Connection

Ongoing - Meet as needed

Must be implemented before May 2009

Microsoft Excel Worksheet

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Types of changes required:

1. Role mapping changes – work with Agency HR Office following procedure for role assignments

2. Level and Threshold Changes – Change Form due back to IES by January 7, 2009

Jennifer Duvall [email protected]

Microsoft Word Document

- IES will meet with agencies as needed - - Must be implemented by May 2009 -

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Extension of Closed SolicitationsAgenda Item #9

Question:Could it be possible to extend a closed solicitation when no bids were received. At this time our understanding is you need to create a new solicitation to open it back up for bidders.

Answer:As long as no bids have been received the bid should be available to recycle - certain updates must be made to the start date, end date, and delivery date if the delivery date is earlier than the new bid start date. If the bid is too far in the past, and system changes have been made (such as validations or required fields), the bid may not be good.

Update:This functionality was tried in the test environment and it worked. It was not tried in Production. If an agency tries to do this and cannot, please provide example (solicitation #) to Patti Chapman and she will look into the capability.

Concern: When reissuing the bid using the same bid number will this cause an issue/problem on the STD-179, Request to Advertise?

Answer: You cannot use the same number unless it is followed by rebid or re-issued or something similar. The entered information goes to archive and it will tell them the number already exists if a suffix isn’t added.

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New BI ReportsAgenda Item #10

• New Procurement Reporting Target– Includes PO Detail

• Replacement of Existing Reports– Review usage statistics– Known change requests

• Reporting Role Consolidation– Procurement Reporting (YMW:SRM)

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• We chose the workbooks that we would recreate based upon usage statistics in 2008:

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• Currently when you look for a report you have the option to search in any one of the following roles:

– Material / Service– Purchase Orders– SRM Reporting– Sourcing– Vendor

• As of December 15th you will have only one role available that contains all of the procurement reports:

– Procurement Reporting (with subfolders for specific kinds of reports)

~ Global Spend ~ Shopping Carts~ Purchase Orders ~ Contract~ Document History ~ Goods Receipts

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• Existing Role: Purchase Orders

Existing Workbook New Workbook

•PO Quantities Analysis • PO Overview

•Quantity and Value of Emergency Purchases • PO Overview

•PO Values by Geographic Area • PO – FY Comparison

•STO Values • STO Overview

•PO Summary by Business Area • PO Overview

•Purchasing Group Analysis – Volume • PO Overview

•Purchasing Group Analysis – Values • PO Overview

•Purchasing Group Emergency Purchases % of Total • PO Overview

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• Existing Role: Purchase Orders


•Contract Purchasing Group Monitoring• Same workbook and query will be used

•Pareto Analysis by PO Volume (80/20 Rule)• Same workbook and query will be used

•Maverick Buying Analysis• Same workbook and query will be used

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• Existing Role: Material / Service


•Percent of Quantity Delivered • Delivery Overview

•Percent of On-Time Deliveries • Delivery Overview

•Receiving Report -- % of Received Qty• PO Overview or Consumption Reports

•Delivery Quantity Analysis • Delivery Overview

•Material Ordered 12 Month Compare • PO – CY Comparison

•Delivery Days Analysis • Delivery Overview

•Over Delivery • Delivery Overview

•Daily Consumption Report•Same workbook and query will be used.

•Consumption Report•Same workbook and query will be used.

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• Existing Role: Vendor


•Percent of Quantity Delivered • Delivery Overview

•Percent of On-Time Deliveries • Delivery Overview

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• Existing Role: Sourcing


•Contract Usage by Grouped Amounts • Contract Usage by Grouped Amounts

•Contract Usage Report • Contract Usage by Grouped Amounts

•PO Against Contracts • Maverick Spend

•Number and Value of PO Items for Statewide Contracts

• Contract Type Report

•Number and Value of PO Items for Agency Contracts


•Number and Value of PO Items for Contract Types


•RFQ Analysis • Future Addition

•Purchasing Group Activities by Contracts • PO Overview

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• Existing Role: Sourcing


•Contract Purchasing Compare with Detail • Same workbook and query will be used

•Contract List with Validity Dates • Same workbook and query will be used

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• Existing Role: SRM Reporting


•Top 25 Suppliers & Categories • Same workbook and query will be used

•Invoice Values • Same workbook and query will be used

•Global Spend Document Level Details • Same workbook and query will be used

•SRM PO Status • Same workbook and query will be used

•SRM PO Overview • Same workbook and query will be used

•Document Flow: Shopping Cart to PO • Same workbook and query will be used

•GR Report (Non-Inventory) • Same workbook and query will be used

•Daily Receipts and Issues (Inventory) • Same workbook and query will be used

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•Daily GR Report (Non-Inventory) • Same workbook and query will be used

•Movements Detail • Same workbook and query will be used

•Shopping Carts Still to be Approved • Same workbook and query will be used

•Overview of Shopping Cart Approvals • Same workbook and query will be used

•Shopping Cart Status • Same workbook and query will be used

•Shopping Cart Overview • Same workbook and query will be used

•Shopping Carts without Follow-On Documents

• Same workbook and query will be used

•Contracts by Vendor • Same workbook and query will be used

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•Contracts per Purchasing Org / Purchasing Group

• Same workbook and query will be used

•Expiring Contracts • Same workbook and query will be used

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• User Impact:– All users with items saved as FAVORITES will have to delete and

recreate those favorites based upon the new workbooks, as will users with shared templates.

– Users will only have one role mapped to them instead of many for procurement reporting. The technical name of that role is YMW:SRM, but it will be described as Procurement Reporting in the BEx Browser.

– The user will be able to drill to detail (for example: PO Number, PO Item Number) on the workbook without having to jump to another query.

– Less confusion on which workbook will provide the answer you are looking for. The new workbooks have less restrictions which gives the users more flexibility.

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DEMO

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• Training– The DGS Training Team is in the process of

developing training classes on the new BI Reports– Classes will be available late January or early

February– Sign up will be via eLMS– Watch for emails from the Training Section on

available dates

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Technical – SRM/SAP SystemAgenda Item #11

Impact of use of Describe requirements on punch-outs:• If a punch-out catalog exists in SRM

– Agencies must use the punch-out when creating shopping carts– Do not use Describe Requirement

• Impact– Breaks the process– Could delay order by not entering the correct data– Could be passing junk or obsolete data to the supplier– Could cause the supplier to submit incorrect invoices– Proper contract pricing may not be used– Requires manual intervention into the process

• Exceptions– If a punch-out is not functioning properly and you are directed by DGS to use

Describe Requirement– If unsure contact DGS Commodity Specialist

Update: ePlus is not an exception, do not use Describe Requirement to order items from them.

We will show an ePlus webcast during the February 4th meeting to provide agencies with instruction on how to navigate their punch-out site, create orders, check order status, obtain quotes, get copies of invoices and run reports.

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LegalAgenda Item #12

Updates to RFP Template• Part I, Section I-12 Proposals: Removed sentence

referring to Section 106 of the Procurement Code• Part I, Section I-13 Disadvantaged Business Information:

Updated the phone and fax numbers and added website for BMWBO; Revised the sentence regarding database.

• Part I, Section I-19 Proposal Content: Language in section replaced in its entirety to address confidential information, Commonwealth use and public disclosure in light of new Right to Know Law.

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LegalAgenda Item #12

Updates to RFP Template Continued:• Part II, Section II-9a (iv) Disadvantaged Business

Submittal: The number of DB submittal copies was changed to two (2).

• Part III, Section III-4 Criteria for Selection: Added language regarding the 70% Rule for technical proposals to receive further consideration. Added language to disclose the weights for scoring. Revised the Domestic Workforce Utilization (DWFU) section.

• Part IV, Section IV-6 Contract Requirements: Added “through any renewal or extension of the contract” to the first sentence of second paragraph.

• Appendix B: Updated the DWFU Certification Form

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eMarketplace UpdatesAgenda Item #13

Procedure for Simplifying Contract

Search in eMarketplace• Has been added to “Tips & Tricks” under the “Help”

section on eMarketplace

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A list of all contracts will display by Parent Number, Description, and Ending Date. You can sort by any of these fields by selecting the word at the top of the column. You can search for your contracts here, or Export to Excel for easier sorting and searching capabilities.

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• Contracts fitting your criteria will be highlighted on the spreadsheet as shown below. To view the vendors contracts for that parent contract,

select the highlighted numbers under the Parent column.

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• This will take you back into eMarketplace and display a list of contracts that belong to the Parent contract you selected.

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Tabulation & Award Information • Agencies may elect to post solicitation tabulations &

award information to eMarketplace– New section to be added to eMarketplace– Instructions will be sent via email to the PPC and all

registered users on eMarketplace – Instructions on how to upload these documents on

eMarketplace will be added to the EUP created by the Training Section & the “Help” section on eMarketplace

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Solicitation Tabulations – Required information for input

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Awards – Required information for input

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APPENDIX

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BOP Conference Room Changes

BOP Conference Room # Changes

• Effective December 22, 2008• Sequential numbering

– Large conference room # 1• Currently # 9

– Remaining conference rooms will be numbered in a counter-clockwise fashion

– End at conference room # 8 (currently # 4)

CURRENT NEWROOM NUMBER ROOM NUMBER

1 2

4 8

5 7

6 5

7 4

8 3

9 1

E-Auctions 6

Crosswalk for Conference Room # Changes

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Document Builder Survey

The Department of General Services, Bureau of Procurement (BOP) is conducting a Document Builder Survey. The intent of this survey is to identify the following:

– The extent to which Document Builder is being utilized – Which Document Types are being utilized in Document Builder– The obstacles encountered when using Document Builder– If applicable, the reasons for not using Document Builder

The survey consists of six brief questions. We encourage you to participate in this survey so that we may identify opportunities for improvement. The survey will be available from December 3, 2008 through December 18, 2008. To participate in the survey please click on this link: http://www.dot36.state.pa.us/dgs_survey/publishSurvey.jsp?Survey=137

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Document Builder: RFPs

Agencies are no longer required to use Document

Builder for RFPs– Document Builder must be updated

• Recent changes to RFP template

Agencies are to continue using Document Builder for IFBs

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Closing

Questions?

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Thank you

1 december 10, 2008 9:00 am to 11:00 am procurement connection

Documents

meeting update agenda

product category descriptions

agenda updates

bw update

appropriate code

length slide

digit code descriptions

unspsc codes codes