april 22, 2009 9:00 am to noon

1

April 22, 2009

9:00 am to Noon

2

PPC AGENDA

1. Finance Transformation – Jeff Mandel & Randy Schmoyer

2. BMWBO –Millicent Brown and Beth Nonemaker

3. Materials - Walt Quade

4. Services – Roxana Dietz

5. PCI & PIBH Presentation – Betty Goodling and Al Baker

6. SRM – Joan Kraft, Cheryl Kleeman and Sue Rojas7. Customer Support Center – Mike Starr8. E-Alert Project – Sue Plecker9. Legal – Chuck Anderson10. Training – Jeff Mandel11. Green Procurement – Paul Wolf12. UNSPSC – Paul Wolf13. Thresholds – Jeff Mandel

3

Bureau of Payable Services

4

Bureau of Payable Services

The Bureau of Payable Services will manage the accounts payable function across the Commonwealth in a centralized structure, allowing for the implementation of standardized processing and procedures that will facilitate monitoring and control while improving transaction time.

Contracts DivisionThe Contracts Division will manage service RFPs, contracts, purchase orders and grant agreements across the enterprise in a central unit.

Invoice Processing DivisionThe Invoice Processing Division will review, verify, and process enterprise-wide Purchase order (PO) and Non-PO invoices, including grants, agency- and comptroller-generated invoices, and manage exception processing in a central location. The division will be divided into:

• PO Processing, which will occur in units based on work distribution and have supervisors overseeing a team of processors.• Non-PO Processing, which will have a Pcards / Advancement accounts payment group, and customer-based units.

Bureau of Payable ServicesException Processing, which will include a Quality Control unit that works with Dept of Revenue to scan and index invoices before any information gets into SAP and address issues with invoices that have been entered into SAP that the PO and non-PO group cannot complete because of additional effort required.

Payable Services Center (PSC) DivisionThe PSC Division will serve as the primary point of contact for Commonwealth external vendors. The division’s main responsibilities include: handling vendor activities (W 9’s, 1099’s, Replication, master vendor file support corrections), issuing resolutions through the call center, maintaining vendor data across the enterprise, scanning documents (such as Contracts) that are not scanned centrally by the Department of Revenue, and providing mailroom support for all of the Comptroller Organization.

5

Procurement Announcement Form

• Required for Service Procurements between $20,000 - $250,000

• Required for all Independent Agencies that are not required to obtain DGS delegation

• If Service Procurement is anticipated to be greater than $250,000 the DGS “Request for Delegation Form” should used instead of this form

6


7


• Form can be obtained from:

DGS Website – Procurement Forms

• Submit Form to:

[email protected]

8

Current Future May 11th

SRM Solicitation Approval – all IFB and RFP with Services require Comptroller approval

SRM Solicitation Approval for Services – No Comptroller approval for bid invitations that have standard terms & conditions

(Non-standard T & C’s require approvals)

Complete the new DGS/OB solicitation form and participation in the evaluation process based on risk assessment.

PO Approval – all Purchase Orders over $5,000 require Comptroller approval except for auto generated PO’s

PO associated with contract (DGS or Agency) – Comptroller approval over $20,000

PO not associated with contract – Comptroller approval over $10,000

Service Contracts – all service contracts over $5,000 require Comptroller approval

Service Contracts with standard T & C’s – no Comptroller approval (Non-standard

T & C’s require approvals)

Finance Transformation

9

Finance Transformation

• The new approval process will take effect May 11th . Change to the invoice mailing address took effect April 15th .

• Any service related IFB, RFP, PO or contract that was published and

released for approval prior to May 8th will continue to use the current approval process as long as no further changes are initiated in the document. If changes are initiated after May 11th and the document is republished it will follow the new approval process.

• Any SRM PO that was created prior to May 11th, rejected and the PO was changed and republished after May 11th will go through the new approval.

• Any service related IFB, RFP, PO or contract that was created prior to May

8th but not published for approval until after May 11th will use the new approval process.

• CRP-Thresholds for new contracts and invoices CRP review will be reduced from $10,000 to $5,000 effective 5/11/09 as per MD 219.9.

10

Contract Compliance Program

STD-21

Initial Contract Compliance Data

BMWBO

11

Procurement Handbook Part 1 Ch.3

7. Contract Compliance Program. The purchasing agency must ensure that all non-construction contractors contracts $50,000 and above and all construction contractors that are awarded contracts $100,000 and above, receive the STD-21 Compliance Review Form.

12

STD-21 Form

13

Letter to the Contractor

14

STD-21 Workflow Report

15

BMWBO Contact Info

• www.dgs.state.pa.us• Doing Business w/ Commonwealth• Contract Compliance (CC)

• DGS, BMWBO• Charlie Poticher, CC Officer • Beth Nonemaker, CC Equal Op Spec• Tel. 717-346-8104 or 717-783-5034• [email protected]

16

Pilot Program

Purpose: To allow small businesses to bid without competing with larger more established businesses AND to increase economic opportunities for small businesses, including minority and women-owned small businesses.

Known also as “set a sides” in other states.

17

Definition of Small Business

1. Contractor is not a subsidiary of another firm.

2. Contractor is not dominant in its field of operation.

3. Contractor employs no more than 100 person

4. Contractor had less than $20,000,000 in gross annual revenues in each of its last two fiscal years

5. If Contractor is new business (less than 1 year), Contractor has an approved business plan by the Small Business Development Center or by a Pennsylvania Enterprise Center authorized by the Minority Development Agency of the United States Department of Commerce.

18

Small Business Reserve

Current States/ Entities Utilizing SBRsCurrent States/ Entities Utilizing SBRs

• Connecticut• Georgia• Hawaii• Illinois• Iowa

• Maryland• Minnesota• New Jersey• Virginia• Georgia

* Federal Government * District of Columbia

19

Proposed Implementation of SBR

– Target Date →→→ Third Quarter 2009

– Agencies helping in this pilot program include, but are not limited to L&I, DPW, DEP, and DCNR.

– SBR Work Group is considering having this go into effect for approximately 20 procurements.

– On-line Self Certification for Small Businesses is currently being developed.

– Immediate goal is to determine the feasibility of such program for the Commonwealth. If successful, we hope to have 10% of all agency procurements placed in SBRs by July 2010.

20

Materials Contract Update

Contract Number

Contract

Title

Status Commodity Manager

Material

4400004213 Wheelchair Vehicles

Amendment adding new

items

Reinoehl Disabled Vehicles

46000013674 Canned Fruit New Contract Gurzenda Canned Fruit

4400004755 Pharmacy New Contract Gurzenda Prescription Drugs

4400004604 Flu Vaccines New Contract Gurzenda Vaccines

4400004600 Polycarbonate Sheets

New Contract Gurzenda Plastic Sheeting

4400004547 Compaction Rollers

New Contract Reinoehl Rollers

4400004755 Incontinent Pads

Renewed Contract

Gurzenda Incontinent Pads

4400004289 Less than lethal Ammunition

New Contract Gurzenda Non-lethal Ammo

21

Materials Contract Update

Contract Number

Contract

Title


Material

5610-36 Plant Mix Material

New Contract Shiffler Asphalt

5710-01 Liquid Bituminous

New Contract Shiffler Liquid Bituminous

6810-01 Liquid Calcium Chloride

New Contract Shiffler Calcium Chloride

9135-05 Aviation Fuel New Contract Shiffler Aviation Fuel

4600007753 Dishwashing Detergent

Amendment awaiting Approval

Gurzenda Detergent

4600008005 Dilution Control Amendment awaiting Approval

Gurzenda Dilution Control

4400004314 Packaging New Contract Gurzenda Misc Packaging

4400004313 Packaging New Contract Gurzenda Misc Packaging

22

Materials New Contracts

Contract Number

Contract

Title


Material

7110-06 Systems Furniture

New Contract awaiting approval

Reinoehl New Furniture-will discuss

23

New Solicitations

Contract Number

Contract

Title

Estimated Contract Bid

Commodity Manager

Material

8415-03 Uniforms May 2009 Gurzenda Uniforms

8415-04 Uniforms May 2009 Gurzenda Uniforms

CN00030379 Coal April 2009 Shiffler Coal

CN6100010719 Heavy Duty OEM Parts

April-May 2009

Reinoehl Truck and Misc Parts

24

Pharmacy Contract

• Current MMCAP Contract to expire June 1st, 2009• We have contracted with McKesson to supply our

prescription drugs beginning June 1st, 2009• This represents a savings of $2,500,000 annually to

COPA using agencies• The basic contracting procedures remain the same• Training on the new website will begin the week of

April 20th, 2009• MMCAP contract for other Medical Supplies remains

in place

25

Systems Furniture Contract

• Multiple Award - 17 suppliers.

• If cost is < $50,000 Agency may order.

• If cost between $50K to $1M Agency conducts an RFQ to all suppliers on contract and include MBE/WBE participation requirements.

• Cost > over $1M Agency must send the shopping cart to DGS-BOP for review and possible bid. This will include a MBE/WBE submittal.

26

2008 Supplier Rebates

Lowe's Rebate VWR Rebate Grainger Rebate Lexmark Rebate Total Rebate

DPW $4,800 $4,257 $6,445 $44,278 $59,779

TRANS $4,800 $3,502 $34,064 $14,537 $56,903

DEP $42,014 $921 $1,653 $44,588

COR $4,800 $6,759 $25,778 $2,001 $39,339

L&I $108 $26,063 $26,171

SP $8,846 $921 $10,008 $19,775

DMVA $4,800 $2,258 $9,206 $230 $16,494

DCNR $4,800 $339 $8,286 $757 $14,181

DOH $10,381 $314 $10,695

LCB $4,800 $921 $2,526 $8,247

AG $7,806 $44 $7,850

DGS $4,800 $921 $182 $5,902

Others $4,830 $4,830

PGC $154 $2,762 $1,070 $3,985

ED $3,409 $388 $3,797

BPP $3,605 $3,605

REV $32 $1,426 $1,457

PFBC $362 $921 $21 $1,303

PEMA $921 $93 $1,014

Total $$33,600 $90,224 $92,064 $114,026 $329,915

27

2008 Supplier Rebates cont’d

• Lowe’s and Grainger Rebate arrived in February 2009.

• Lexmark and VWR Rebates arrived in April 2009.

• Checks were hand delivered to the Department of Revenue with the accompanying Agency Distributions.

• The Department of Revenue credited your Agency account GGO for the amount indicated.

28

Services Team New Contracts

29

Sweatshop Provisions

Procurement of Apparel or Apparel Laundering Services

“Apparel" is defined as: "Products manufactured, woven, cut, sewn or otherwise similarly processed by mechanical or human effort from fabrics, leather, or cloth made for use as clothing, shoes, or other attire.“

– CERTIFICATION Required By Executive Order 2004-4 Anti-Sweatshop Procurement Policy

– Eligibility. To be eligible for award, a bidder [or offeror] must submit the following items with its bid [or proposal], or no later than two (2) business days after notification from the Department of General Services [or other purchasing agency]:

• A certification, in the form included with this invitation for bids [or request for proposals] signed by an individual authorized to make the certifications on behalf of the bidder [or offeror].

• A list of each proposed facility to be utilized in the manufacture of the apparel or the laundering of the apparel, including subcontractors, with business name, address, contact person, and telephone number where such work will be conducted.

• Failure to provide this required information prior to the expiration of the second business day after notification shall result in the rejection of the bid [or proposal].

30

What is a Sweat shop?

• A sweatshop is a working environment with conditions that are considered by many people of industrialized nations to be difficult or dangerous, usually where the workers have few opportunities to address their situation.

• This can include exposure to harmful materials, hazardous situations, extreme temperatures, or abuse from employers.

• Each and every employee used in connection with the manufacturing or laundering of apparel will be paid an hourly rate at least equivalent to the Poverty Threshold.– Sweatshop workers often work long hours for little pay, regardless of any

laws mandating overtime pay or a minimum wage.

• Each and every employee used in connection with the manufacturing or laundering of apparel will be provided with working conditions that meet or exceed the International Labor Organization Convention's ("ILO") standards.– Governing forced labor, child labor, payment of wages, hours of work,

occupational health and safety and nondiscrimination

31

Sweatfree IM RFP

Sweatfree Independent Monitoring RFP

• Executive Order 2004-4 Anti-Sweatshop Procurement Policy prohibits Agencies from

entering into procurement contracts for apparel and laundry services with companies that employ workers in sweatshop conditions.

• Multi-state purchasing agreement with Ohio and Oregon.

• The services will be required on an as-needed basis by various government and state agencies throughout the Commonwealth of Pennsylvania, Ohio and Oregon and other states that may elect to participate in the resulting contract.

• • DGS Statewide Contract available approximately July 2009

32

Sweatfree – Payment

33

Reporting Requirements Admin. – Service Fee

• DGS will issue all contracts for Apparel and Laundry Services including those under Procurement Handbook Thresholds.

• Administrative Service Fee – 1% of total sales for the previous quarter

• Quarterly Reports– Procurement activity for the Commonwealth of

Pennsylvania. – Administrative Fee within thirty (30) days following the

end of each quarter.– Failure to do so may result in breach of contract and may

be cause for cancellation of contract for default.

3434

• 0-$50,000– Statement of work (model)– ITQ T&Cs– Allow for mixed T&M and deliverables – Use established

rate card for T&M work. • T&M can not be greater than 40% of Purchase Order (PO) value

– Agency makes selection of supplier– No Competitive solicitation required– $100,000 cap per supplier in same category

• In same fiscal year by agency• No limit on PO quantity• To exceed $100K max requires waiver from DGS

IT/ITQ

3535

• $50,001 - $250,000– Statement of work (model)– ITQ T&Cs– Allow for mixed T&M and deliverables – Use

established rate card for T&M work. • T&M can not be greater than 40% of PO value

– Expedited RFQ Process– Sent to all suppliers in category– Team selects based on best value– Expected time from receipt of proposals: 2-3

weeks

IT/ITQ

3636

• Greater than $250,000– Statement of work (model)

• 70% Rule in effect for technical– ITQ T&Cs– Allow for mixed T&M and deliverables – Use established rate card for

T&M work. • T&M can not be greater than 40% of PO value

– Standard RFQ Process (mimics RFP Process)– Sent to all suppliers in category– Agencies must request DGS delegation authority (Same as RFP

requirement)– Team selects based on best value– Uses recommended percentage allocations

• Cost, DB, Technical (Same as RFP requirement)– Minimum Point Allocations:

» Cost: 30%, MBE/WBE: 20%» Technical provision

IT/ITQ

3737

Master IT Services ITQ ProcessAll IT procurements must comply with ITB EPM 003

IT/ITQ

Under $50,000 $50,001-$250,000 $250,001 and above

Requires only 1 quote Select any qualified supplier from

ITQ Service Category

Includes IT Training

Solicit all suppliers qualified in a service category

Solicit all suppliers qualified in a service category

Expedited RFQ process and template

RFQ Process and follow RFP evaluation process in Procurement Handbook

Simplified evaluation process

More formal process, mirrors RFP process

Templates Templates

3838

IT/ITQ Essential Milestones

• March 2009– Grandfather letters out to current qualified IT ITQ suppliers

• April 10 2009– Agencies can solicit and award work under the new IT ITQ

• Will only solicit those suppliers who have returned signed contracts

• May 1 2009 – Open enrollment for new suppliers begins– Paper version of IT ITQ Questionnaire available on web site

• In agency library section of the IT ITQ website

• June 30 2009– All work must be completed under old IT Contract ITQ

• Waiver process in place. Requires CoP and DGS approval

• July 1 2009– Work begins under new contract

3939

ITQ Timeline – Web Development

• Phase 1: Complete March 2009– Entire proposal, including client references, will be developed

online– No more hardcopy proposal– Suppliers upload Questionnaire and necessary documents

• Phase 2: Complete April 2009– Company profile uploaded – Agency view of qualified suppliers and their Company Profile– Supplier proposals are evaluated and results posted– Company profile will include existing functionality in current

ITQ website– Financial Data– Rate Card

• Phase 3: Complete June 2009– Project Performance Evaluations by agencies

40

The end-user procedure contains detailed screen shots and instructions, but this checklist should be used by Purchasers when creating PO’s for invoicing plans.

Invoicing PlanRequired Fields:

Additional Information:

IP Doc Type Select IP document type when creating the PO.

Header-Additional Data: Validity Periods

Enter Start and End date of invoicing plan.

Header-Customer Data: Invoice Reference

Enter the serial # of equipment.Follow with the Delivery Complete Indicator.

Line Details-Delivery Tab: Goods Receipt – no indicator *

Invoicing plans do not require goods receipts – do not select the GR indicator!

Line Details-Delivery Tab: Delivery Complete

Enter when the equipment has been delivered. This indicator initiates the payment process.

Line Details-Invoice Tab: Tax Code= I0

Enter Tax Code I0 (A/P Sales Tax, exempt)

Line Details-Invoice Tab: Inv. Receipt indicator

Defaults from the contract – do not remove!

Line Details-Invoice Tab: ERS indicator

Defaults from the contract – do not remove!

Line Details-Invoice Tab: GR-based IV – no indicator

This indicator defaults from master data but will prompt the Purchaser to remove the indicator through system hard stop messages.

Invoicing Plan Procedures

41

Invoice Planning Important Notes:

– Invoice Reference Field: The supplier relies on the information in the Reference Field to know how to apply the payment. Ensure the insertion of the machine serial number. The serial number can be found on the IKON’s Delivery and Acceptance Sheet. If this field is blank, the supplier will not know how to apply the payment.

– ERS Box: Ensure the ERS box is checked or the vendor will not get paid. This is an auto populated field. DO NOT UNCHECK

– Delivery Complete: Ensure the Delivery Complete Box is checked. You may now receive all 4 years upon the delivery of the machine.

– Validity Start: This should always be the first day of the month after the machine is (expected to be) or received

Invoicing Plan

42

PCI & PIBH

• New PCI contracts released– 4400004305

• SRM header contract:– Order products/services from MSCC

– 4400004576• SRM regular contract

– Order products/services that require a quote from PCI)

– 4600013875• SAP R/3 contract

– Order inventoried products

• New PIBH contracts going through release strategy– Three contracts (similar to PCI contracts)

• DGS will email contract numbers to PPC upon final approval

– New products• Plastic liners

43

PIBH

• Before release of any solicitation, purchasing agency is to first offer materials and services referenced on Carve-Out List to PIBH

• Agencies should be pro-active in reviewing new potential opportunities for PIBH

– Early determination regarding PIBH’s involvement– Gives PIBH additional time to get qualifications in order– Reduces and/or eliminates delays in procurement process

• PIBH materials available for purchase on office and janitorial supply contracts

• PIBH gets preference over comparable items on other statewide contracts

• Order PIBH trash liners directly from PIBH

4444

LCB Oracle System

COPAExecutiveAgencies

SRM/SAP

SupplierRegistration

LCB

Oracle

• LCB Oracle system went live March 1, 2009

• SRM supplier data was loaded into Oracle

• Some supplier data did not transfer

• Affected suppliers to complete a registration form

• Suppliers will have separate Oracle supplier number

• LCB POs will cross reference appropriate DGS contract numbers

• LCB is sending limited correspondence to suppliers

4545

Evaluated Receipt Settlement (ERS)

Phase 1

Go-live: September 10, 2008

Suppliers:– Ennis Paint – Greenstar Allentown, LLC

Statistics: – 153 POs issued to date– $4,992,112

ERS Pilot Update

Phase 2

Go-live: December 15, 2008

Suppliers:– Flor-Dri Supply Co– Larry’s Lumber Co Inc– Greenwood Manufacturing

Inc

Statistics: – 21 POs issued to date– $122,662

Reminder: When a supplier is set up for ERS it is done in the Supplier record;

this will affect every PO or contract issued to that supplier.

4646


1. Log into R/3.

2. Select / Open ME23N (Purchase Order Display)

Before reversing GRs on ERS purchase orders, users should verify if an Invoice Document has been generated.

4747


3. Click on Purchase Order on the menu bar at top of the screen and select

“Other Purchase Order”.

4. Enter PO number and click on other document.

4848


5. Click on Purchase Order History tab in item details section (bottom section).

6. Click on the Invoice Receipt Material Document number to display the invoice

document.

4949


7. Find the Reference Doc column (1) by scrolling to the right using the arrows (2) or scroll bar (3).

8. Note the GR (Reference Doc) number.

5050


Compare the GR (Reference Doc) numbers on the Invoice Documents to each GR entered on the PO.

If an Invoice Document

does not exist

for a specific GR

(Reference Doc)

the GR can be reversed

If an Invoice Document

does exist

for a specific GR

(Reference Doc)

the GR can not be reversed

5151


How to reverse a GR for which an Invoice Document exists

ERS invoice has not been picked up in the Treasury payment proposal (not cleared)1. Agency contacts the Comptroller and then reverses the goods receipt.

2. Comptroller manually blocks the bad invoice.

3. ERS Program is executed. A credit memo is produced.

4. Comptroller clears the reversed invoice and the credit memo via F-44.

ERS invoice has been picked up in the Treasury payment proposal(cleared)1. Agency contacts the Comptroller.

2. Comptroller contacts Treasury and has the invoice redlined or rejected.

3. Agency waits to hear back from Comptroller to reverse the goods receipt.

4. Agency reverses the goods receipt.

5. ERS program is executed and a credit memo is produced.

6. Comptroller follows their procedures for a redlined or rejected invoice.

5252


Important things to remember about ERS

1. The ERS process works efficiently when GRs are entered timely and correctly.

2. The Invoice Document is tied to a specific GR.

3. An agency must not reverse a GR without first checking for an Invoice Document.

53

Symptom: Error messages when trying to process p-card orders in SRM

(Grainger & ePlus)

53

SRM P-Card Orders

Action: IES escalated and requested conference call with SAP to identify options

Interim Resolution: Agencies can use the p-card outside the system for orders to Grainger and ePlus until the system issue is resolved

Prior to support pack issue Granger’s volume July 2008 – March 2009:

– 1,950 P-card orders– Equivalent: 10 orders per day

5454

Placing SRM Documents on Hold

Symptom: System takes too long to place a purchase order on hold

Problem: Product category has not been entered. When the system validates data before saving in a held status, it is checking through all product categories before finding no match.

Example where product category has been entered:

Example where product category has not been entered:

Resolution: Maintain a product category on each line item before saving to a held status.

5555

SRM Upgrade

SRM Upgrade:Researched SRM/Procurement for Public Sector (PPS) Version 7.0

• Records Management• Configurable line item

structure within a contract• 2-Envelope evaluation

system– Ability to split cost and

technical proposals– Keep cost information

secret• Multi-round bidding

– Round 1 RFP– Round 2 BAFO

• Min/max order quantities per PO against a contract

• Invoice search capability• Allows for payment plans

and penalties• Document Builder 3.0• Allows for commitment of

funds on shopping carts• Validity dates on POs• PO copy functionality• And more . . .

5656

SRM Upgrade

Concerns on upgrading at this time:• Ramp up customer• No current U.S. customers using the product• Large scale upgrade too costly• Staff shortages: Impact and burden to agencies too high

Alternative to full 7.0 implementation• Identified stand alone components• Provide value to the agencies• Minimize impact and burden

SRM Component Upgrade Project:• SRM Master Data Management (MDM) Catalog• Records Management

5757

SRM Upgrade

SRM Master Data Management (MDM) Catalog• Currently using Catalog Content Manager (CCM)

– CCM limitations• No real time transfer of catalog data between R3 and SRM• Prohibits timely updating of warehouse catalog

• MDM will allow for synchronization of R3 and SRM– Automatic price updates– Items and prices always current

• MDM is a requirement for future SRM upgrades• Improvements to MSCC contract functionality• No impact to agency purchasers or requisitioners

Status: MDM configuration & development to begin week of April 20th.

5858

SRM Upgrade

Records Management• Eliminates multiple file types

• Paper• Electronic• System

• Creates a single e-file repository for all records• Emails• Excel/Word Documents: Meeting minutes, notes to file, scoring

sheets, etc. • Scanned documents: Correspondence, proposals, etc.• Electronic: POs, shopping Carts, contracts, Solicitations, bids

• Single point of access to view all data

Status: • Held requirements gathering workshops

– IES, DGS, SAP, DEP, DMVA, SP, DOT, OA, DOC, F&B• Developing record model (in process)

– Present record model to project group – Evaluate and make recommendations for change

59

3/9 3/16

Prep

4/20 5/25 6/26

MDMCatalog

3/23 3/30 4/6 4/13 4/27 5/4 5/11 5/18 6/1 6/8 6/15 6/22

Workshops Document Confirm Config / Unit Test Integration TestFinal Prep

Records Management Workshops Document Confirm Config / Unit Test Integration Test

Final Prep

Support

Support

Technical Upgrade – existing CCM functionality

Scope: Shopping Carts, Bids (Solicitations), Contracts and Purchase Orders Pilot: DGS & State Police

SRM Upgrade

Project Timeline

60

Contract Numbering Convention

• Old legacy system lost with SRM implementation

• BOP has capability within SRM to create new numbering strategy

• BOP reviewing use of UNSPSC Codes as new numbering convention

• UNSPSC Code offers single global classification system

• Process under review by BOP and Agencies

• Will notify agencies once determination made to start new numbering convention.

• Commodity Specialist creates contract, assigns UNSPSC code along with simple description. Would become new contract number and name.

• To learn more about the coding structure, visit www.unspsc.org

61

Contract Numbering Convention

• New contracts can be named in logical manner

• Some examples would be:

– 4323 Software

– 4412 Office supplies

– 101615 Trees & shrubs

Codes built as Hierarchical Category Number: for example:

UNSPSC 43201501

Segment – 43 Information Technology Broadcasting and Telecommunications Communications Devices and AccessoriesFamily – 20 Components for information technology or broadcasting or telecommunications Computer Equipment and AccessoriesClass – 15 Computers Computer accessoriesCommodity – 01 Computer switch boxes Docking station

BOP would utilize Segment, Family and possibly Class portion of Code in order to establish a contract numbering convention for our Statewide Contracts.

62

Guest Account

• Purchasing Agents requested Supplier’s view on Supplier Portal

• BOP created “Guest Accounts”

• To active account, email the following information to Mike Starr at [email protected]

– Name

– CWOPA log in name

– Agency

– Phone Number

– Email address

• Instructions to change password sent once account activated

• Please follow general guidelines to ensure integrity of Supplier Portal and “Guest Account”

– Review bidding reference guide located on PA Supplier Portal

– Access to bids and bidding process only

– At no time shall anyone “submit” a bid. Any bid submitted by Commonwealth staff will result in that staff’s access being locked

63

DOC Builder – Enhancements

• Speed of processing improved• Table of Contents more concise• Bid and Performance Security language displayed• Number of DB proposals corrected• DB language included• 70% threshold appears• RTK clauses included• Federal funding clauses included• Allows for T&M contract type• Liquidated Damages language appears• Trade Secret language appears• Extension of Contract Term language included• Confidentiality clause correctly inserted into services document• Services documents no longer include Supply clauses

64

DOC Builder – Open Items

• Font issues remain in “Contract Definitions” section

• Question in “Solicitation” section requests default fill in for agency website.– Will be changed to eMarketplace default but allow edit for agency website if required

• BOP working on list of editable clauses

• BOP looking to lock down editable clauses and display statement that directs supplier to refer to attachments (Appendices) for custom clauses

• User guides require revision– Mandatory utilization of Doc Builder will occur upon user guides correction

• Enhanced Doc Builder provides:– Accurate information– User friendly experience– Professional documents– Faster response time

65

DOC Builder – No Change

• Users get an “unknown crash” when they cut and paste from Microsoft Word– Cutting and pasting from Microsoft Word document into Doc Builder

can cause this error– Utilize separate attachment to avoid issue

• SRM times out while you are in Doc Builder– When creating document in SRM, document is put on hold before Doc

Builder initiated– When finished with Doc Builder, search for SRM document

• Doc Builder must be started numerous times– System design

• Doc Builder freezes – Notify IES– Submit Remedy ticket or call help desk with each occurrence

• Agency specific information cannot be attached in Parts 1-3– This is intentional. Unless editable section is allowed, DGS Legal does

not allow edits to these Parts.

6666

DOC Builder – Summary

What are the benefits?• Approval Process routed through system workflow rather than paper• Access to clauses• Avoid Contract OGC & AG approval• Customize document to contain only required appendices• Approvers have checklist to approve documents• Print reviewer’s checklist and answer summary in Doc Builder stand

alone version

Why is it better?• Doc Builder now works better, faster and more concise• More professional appearance• Information more complete

What’s next?• Doc Builder use encouraged• Guidance documents being developed

67

CSC Changes

Financial Transformation and Supplier confusion necessitated the need for enhancements to the Customer Service Center:

• New home page for Supplier Service Center Single point of entry Step by step process

• Improved navigation bar

• New help page includes options for: Registration Bidding and e-Alerts Company data Miscellaneous (COSTARS & BMWBO)

68

CSC Changes cont’d

Supplier Service Center Home Page

69

Supplier Service

Supplier Service Help Page

70

Help Desk Changes

Menu option changes to the help desk phone system:

Option 1 – Supplier registration, managing data, invoicing, 1099 questions

Option 2 – Bidding and e-Alerts

Option 3 – SRM policy and process

Option 4 – Agency technical assistance

(Option 3 and 4 are designated for Commonwealth Agencies)

71

Electronic Bid Notifications

• Requires separate eAlert registration process via DGS website

• Suppliers only receive eAlerts for BOP bids.

• Only 11 categories for suppliers to select for notifications.

72

Electronic Bid Notifications

• Only one registration required on PA Supplier Portal.

• Suppliers will receive notifications by selecting “Manage Bank Data & Product Categories in the PA Supplier Portal.

• Suppliers will receive notifications from all agencies who process bids within SRM.

• eAlerts will only be sent to suppliers using the 4 digit UNSPSC Code, if an agency selects different code, the eAlert will roll up to the 4 digit code. (400 codes).

• An eAlert crosswalk and instructions will be available on the new “Supplier Service Center” website.

73

Draft Procurement Retention Policy

Category Description Retention Period

Shopping Cart/Purchase Requisitions

Covers internally generated documents requesting a procurement be started and internal written determinations that are required by the Procurement Code. This category does not include documents related to the actual solicitation process, or documents submitted by a vendor.

Examples: Requests/Approvals for Sole Source and Emergency purchases; explanation for cancellation of a solicitation; shopping cart requests.

If a contract results from the solicitation:Life of the Contract + 4 yearsOtherwise:3 years

Purchase Orders Covers Contract Purchase Orders (purchase orders issued against an existing contract document). This category does not include Standalone Purchase Orders (purchase orders not issued against an existing contract).

Life of the Contract + 4 years

Bid Documents/Solicitations

Includes all documents relating to the IFB and RFP solicitation processes.

Examples: The IFB or RFP, all Addenda/Flyers, all bids or proposals received for a solicitation, BAFO communications, Bid Tab or RFP Contractor Selection Memo.

If a contract results from the solicitation:Life of the Contract + 4 yearsOtherwise:1 year

Contract Includes all documents related to a Contract. This would include a copy of the executed contract, all attached exhibits and any other official records generated as part of the negotiation and execution process (such as CRP determinations), and all change notices and amendments.

This category also includes Standalone Purchase Orders (purchase orders not issued against an existing contract).

Life of the Contract + 4 years

74

RFP Award Timeline

All of the following should occur when the Commonwealth receives the signed, negotiated contract from the selected offeror and it is ready for Commonwealth signature/approvals:

Start the Commonwealth execution/approval process Send out non-selection letters to the unsuccessful offerors Post the signed RFP Contractor Selection Memorandum to Awards section of eMarketplace (Changes to be forthcoming to enable attachment) Schedule any requested debriefings promptly Only if a specific request is made under the RTKL, release unsuccessful and the successful proposals (redacted) and a copy of the final contract (redacted; at this point only signed by the vendor)

The contract (generally incorporating the successful proposal) once fully approved by the Commonwealth is then posted on eMarketplace and Treasury's website.

75

• Purchasing Agent RecognitionPurchasing Agent Recognition Certificates have been mailed to Agency Deputies of Administration for presentation to the individuals

who have completed all necessary training to obtain their CPPA (Certified Professional Purchasing Agent) certification. Those individuals who received their certification are:

Cynthia Anderson – Department of General Services Carolyn Bender – Department of General Services Jill Dimpsey – PA Emergency Management Agency Joan L Douglass – PA State Police Kelly L Frederick – PA State Police Diane Harden – Liquor Control Board Alison Hoke-Fitts – Department of Agriculture Clayton McCleave – Department of Banking Glenda Nagle – Department of Military and Veterans Affairs Barbara Partyka – Department of Labor and Industry Kevin Rockwell – Department of Public Welfare Mike Schindler – Department of Labor and Industry Robert Slusser – Department of Education Christopher Wolf – Department of State

Training

NOTE: The next Procurement Policy & Processes – Purchasing Agent Course will be held on July 13-16, 2009.

76

Training - LIR

RegionRegion Session DateSession Date StatusStatus

Northwest (Polk)

April 9, 2009 AM & PM Completed

SouthCentral

(Harrisburg)

April 10, 2009 PM Completed







April 22, 2009 AM & PM Pending

April 23, 2009 AM & PM Pending

May 1, 2009 AM & PM Pending

• LIR (Line Item Reconciler) Training ScheduleLIR (Line Item Reconciler) Training Schedule

NOTE: This training is only for invoices related POs. Processes for invoices related to non-POs will be taught by the Office of the Budget. Please ensure Please ensure that your LIR’s (Line Item Reconciler) have enrolled for this training!!that your LIR’s (Line Item Reconciler) have enrolled for this training!!

RegionRegion Session DateSession Date StatusStatus

Southeast

(King of Prussia)

April 30, 2009 AM Pending

Southwest

(Greensburg)




77

Training

The Negotiations Course is now available via WBT and administered via E-LMS. For self-enrollment through ELMS, please visit BOP’s Training Community Calendar at www.dgs.state.pa.us/procurement.

If you have difficulties with self-enrollment, contact Millie Colon at (717) 346-3841;

e-mail [email protected]

The Web-Based Negotiations Course is

NOW AVAILABLE!!

7878

BOP’s Manager of Green Procurement

• New role at BOP, Manager of Green Procurement• Role and Responsibilities

– Manage Environmentally Preferable Purchasing– Organize and conduct employee training– Develop and maintain EPP Procedures– Centralize EPP resources– Promote and manage relationships with suppliers, and counterparts in other states– Evaluate success of EPP programs/contracts– Research, analyze and implement relevant best

practices

7979

Green Procurement Policy

• Green Procurement Policy, Part 1, Chapter 22 of Procurement Handbook, effective April 2, 2009

• Commonwealth of PA is a significant consumer in the marketplace– Procurement decisions impact the environment and human

health

• Department of General Services’ goal– Integrate environmental considerations into every aspect of procurement

• Providing economic health and environmental gains that will further our goals

8080

Green Procurement Policy

• Commonwealth agencies are expected to use their buying power to procure environmentally-preferable products and services in order to:

– Advance the protection of the environment and support sustainability

– Minimize the potential environmental and health impacts on workers and the public

– Encourage the production and sale of affordable, environmentally friendly and human health conscious products

8181

Green Procurement Training

• What is Green Procurement• Examples• Benefits• Influence• Analysis• Challenges• Resources• Tools• PA Green Procurement Policy• Role of Commodity Team• Product Analysis Form• Goals

BOP only

82

Green Procurement Website

• BOP’s Green Procurement Website– Development phase

– Go-Live April 24, 2009

• Screen shots of the following pages:– Home

– Employee

– Supplier

83

Green Procurement Website Home Page

84

Green Procurement Website Home Page cont’d

85

Green Procurement Website Supplier Page

86

Green Procurement Website Supplier Page cont’d

87

Green Procurement Website Supplier Page cont’d

88

Green Procurement Website Employee Page

89

Green Procurement Website Employee Page - cont’d

90

Green Procurement Website Employee Page cont’d

91

PA eMarketplace Displays Green Icons

• PA eMarketplace will display green icons to identify contracts containing certified products

EcoLogo Energy Star

Green Seal

Recycled Content

EPEAT

92

Energy Expo

• 2009 Energy Expo hosted by: – DGS Facilities Management, Energy Management Office

and DGS Bureau of Procurement

– When: April 30, 2009 from 9:00 AM -2:00 PM

– Where: Keystone Building, Atrium and

Hearing Rooms 4 and 5

– Theme: Energy Conservation at Home and Work

93

Energy Expo

• Approximately 50-60 booths, represented by: – State agencies– Energy service companies– Public utilities– Transit agencies

• Representatives will showcase: – Energy conservation initiatives– State-of-the art technology – Conservation measures including:

• Alternative fuel• Green products• Hybrid vehicles

*Electric car & hybrid vehicles will be displayed outside of the Keystone Building** Exposition vendor area will be open from 9:00 -2:00

94

Energy Expo Agenda

• 2009 Energy Expo Agenda

• 9:00 Expo Opens

• 10:00 – 11:30 Green Procurement Kick-Off

• Location Hearing Room (room number TBA)• Speakers Scot Case, V.P., Terrachoice

Environmental Marketing

Jeff Mandel, DGS, Chief Procurement Officer

• 12:00 Special Remarks• Speakers James Creedon, DGS, Secretary

other officials

95

Energy Expo Agenda

• 2009 Energy Expo Agenda (continued)

• 12:30 – 1:30 Conservation at Work

• Location Hearing Room 4

• Feature Schaedler – Yesco

• 12:30 – 1:30 Conservation at Home

• Location Hearing Room 5

• Feature Phillips Lamps

• 2:00 Expo Closes

96

Material Group Number Update

Background:• Material Group Number = UNSPSC Number• Last UNSPSC revision loaded into SAP has 28,155 numbers• Current UNSPSC latest revision includes 40,000 + numbers (42%

increase) Concerns regarding system performance

Recommendation:• Utilizes all 8-digit UNSPSC service numbers (starting with 7,8,or 9)• Remaining numbers are 6-digits + 2 zeros• Retains all 8-digit material numbers previously utilized by CWOPA• Result 13,562 numbers

Approx. 52% reduction

Implementation:Target date - May 1, 2009

97

Thresholds

Draft only.Provide feedback to Cheryl Kleeman by May 6.

Current

$ Value Materials Services Construction Mfg. Equip Repair/Calib.<$5,000 No bid Agency No bid Agency No bid Agency No bid Agency

$5,001-$10,000 Informal bid/3 quotesAgency

Informal bid/3 quotesAgency


No bid Agency

$10,001-$20,000 Formal methodAgency

Formal methodAgency

Formal methodAgency

Formal methodAgency

>$20,000-$100,000 Formal methodBOP

Formal methodAgency

Formal methodAgency

Formal methodAgency


Formal methodAgency

Formal methodBOP

Formal methodAgency

>$250,000 Formal methodBOP

Formal methodBOP or Agency if delegated

Formal methodBOP

Formal methodBOP

Proposed

$ Value Materials Services ConstructionAgency Construction/

Leashold Improvements Mfg. Equip Repair/Calib.<$10,000 No bid Agency No bid Agency No bid Agency No bid Agency <$15,000 No bid Agency$10,000 - $25,000 Informal bid/3 quotes

AgencyInformal bid/3 quotesAgency


Informal bid/3 quotesAgency $15,001 - $25,000

Formal methodAgency

>$25,000-$50,000 Formal methodAgency

Formal methodAgency

Formal methodAgency

Formal methodAgency

Formal methodAgency


Formal methodAgency

Formal methodAgency

Formal methodAgency

Formal methodAgency

>$100,000 - $250,000 Formal methodBOP

Formal methodAgency

Formal method DGS PW Formal method DGS PW Formal methodAgency

>$250,000 Formal methodBOP

Formal methodBOP or Agency if delegated

Formal method DGS PW Formal method DGS PW Formal methodBOP

98

Contact Information

Chuck Anderson, DGS Attorney, Strategic Source [email protected]

Alfred Baker, PIBH, President & CEO [email protected]

Millicent Brown, BMWBO [email protected]

Scott Cross, Director, Programs & Systems [email protected]

Roxana Dietz, Director Services Procurement [email protected]

Betty Goodling, Program Manager for PIBH, BOP [email protected]

Cheryl Kleeman, Strategic Development Manager, BOP [email protected]

Joan Kraft, Director, Business Process Improvement [email protected]

Jeff Mandel, Chief Procurement Officer [email protected]

Beth Nonemaker, BMWBO [email protected]

Walter Quade, Director, Materials Procurement [email protected]

Sue Rojas, Strategic Development Manager, BOP [email protected]

Randy Schmoyer, Manager, Procurement Unit [email protected]

Mike Starr, Manager Supplier Services [email protected]

Paul Wolf, Director of Quality Assurance and EPP [email protected]

april 22, 2009 9:00 am to noon

Documents

nonpo processing

nonpo invoices

nonpo group

accounts payable function

service rfps

service procurements

index invoices

comptrollergenerated