overview of cooperative contracts program sherri parks director contracting and procurement services...
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Overview of Cooperative Contracts Program
Sherri ParksSherri Parks
Director Director
Contracting and Procurement Services Division, DIRContracting and Procurement Services Division, DIR
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Who is DIR? DIR is the state agency responsible for
• Effective planning, implementation and management of a statewide technology infrastructure that supports agency business operations
• Pooling the purchasing power of government and leveraging it to drive down costs and add value to ICT purchases for state government entities
• Adopting statewide technology rules and standards that contribute to effective enterprise management of ICT
• Promoting security and privacy of state data and networks
Key operations• TexasOnline, the official State of Texas website
• Data Center Services
• Telecommunications and IP Network
• Security
• ICT Cooperative Contracts Program
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ICT Cooperative Contracts
WHAT DO THEY DO?
Create savings for taxpayers by aggressively leveraging the state’s buying power to lower prices and obtain best value
Optimize the purchase of ICT commodities and services • Streamlines process for customers
Reduces duplicate efforts: all contracts competitively procured
Reduces purchasing and contract cycle time: customers issue P.O. directly to DIR vendor
• Simplifies sales process for vendors
Include ICT commodity items as contracted product offerings• Hardware and software
• Technology staffing services
• Other ICT services with high customer demand (seat management, technology training, etc.)
• Maintenance
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Who are DIR’s Customers? Sales by Channel
* Telecommunications Go DIRect sales of $36 M were distributed to channels via prorated percentage of sales.
Sep 07 – Feb 08 Sep 07 – Feb 08
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What Does DIR Sell?
SALES BY COMMODITY TYPE: Sep 07 – Feb 08
COMMODITY SALES % of TOTAL
COMPUTERS $221,685,807 38.8%
NETWORK $89,851,947 15.7%
SOFTWARE $83,889,363 14.7%
SERVICES $56,951,991 10.0%
HARDWARE $41,004,694 7.2%
TELECOMMUNICATIONS $36,965,833 6.5%
PRINTERS AND SCANNERS $22,818,879 4.0%
CATALOG $8,519,428 1.5%
VIDEO $7,386,219 1.3%
TRAINING $2,295,529 0.4%
OTHERS $60,800 0.0%
TOTAL $571,430,490 100.0%
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448 Cooperative Contracts• 290 Total Resellers
• 140 HUB Prime Vendors
• 121 HUB Resellers
38% Growth in Last 2 Years (FY05-07)
Over $1 Billion Projectedfor FY08
Customer Base• Market Segmentation Analysis
45% Education
29% State Agencies
26% Local Government
ICT Cooperative Contracts – Statistics
ICT Cooperative Contract Sales
$719$805
$993
$571
$0$100$200$300$400$500
$600$700$800$900
$1,000
Millions
FY05 FY06 FY07 FY08YTD
Sep 07 – Feb 08
Sep 07 – Feb 08
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ICT Cooperative Contracts – HUB Statistics
HUB Fiscal Year Comparisons
0
50
100
150
200
250
300
350
400
450
500
FY 2006 325 99 78 $196.6
FY 2007 381 121 121 $246.0
FY 2008 (Sep 07-May 08) 448 140 121 $204.6
Cooperative Contracts
HUB Prime Vendors
HUB ResellersHUB Sales(In Millions)
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ICT Cooperative Contracts – Cost Savings/Avoidance
DIR CUSTOMERS/TAXPAYERS
Savings calculated as difference between DIR price and price available in other states and from other cooperative contracting programs
Additional value (soft costs) not included in calculation• Time/salary savings
associated with streamlined procurement process
• Additional services or benefits such as “free training”
• Improved performance standards and accountability requirements
ICT Cooperative ContractCost Savings/Avoidance
$70.2$82.0
$114.8
$60.9
$0$10$20$30$40$50$60$70$80$90
$100$110$120
Millions
FY05 FY06 FY07 FY08YTD
Sep 07 – Feb 08
Sep 07 – Feb 08
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How to Do Business with DIR
HOW DO VENDORS GET ON DIR’S LIST?
DIR competitively bids all contracts
DIR establishes statewide master contracts with vendors for products or services when sufficient customer demand exists
DIR posts requests for offers (RFOs) on the Electronic State Business Daily (ESDB, http://esbd.cpa.state.tx.us/)
RFOs are generally posted for 30 days
Many contracts include multiple awards
Contracts are awarded for a specified term
DIR offers more frequent bidding opportunities
DIR posts regional RFOs
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How to Do Business with DIR
HOW DO VENDORS BECOME DIR RESELLERS FOR A SPECIFIC MANUFACTURER/PUBLISHER?
Resellers may respond to the posted RFO
Resellers can be named as subcontractor by a prime vendor
Prime vendors/manufacturers can amend their HUB Subcontracting Plan (HSP) to include additional resellers
WHAT ARE THE REQUIREMENTS TO BE A RESELLER?
Resellers must be authorized to sell the appropriate manufacturer/publisher’s product
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How to Do Business with DIR
WHAT’S THE EVALUATION CRITERIA OF THE RFO?
Pricing
Vendor’s plan for supporting the contract if awarded
Quality and thoroughness of response
Vendor’s customer references
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How to Do Business with DIR
DIR WEBSITE
Use the DIR website (www.dir.state.tx.us) as a resource for information on existing and future opportunities
Bid as prime vendor on contract opportunities as they are posted
Work with prime vendors to become subcontractor
No DIR contract found? Ask about the New Product or Service (NPS) request form
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How to Do Business with DIR
DIR STORE
Provides searchable access to all Go DIRect contracts
Provides valuable information for specific customer groups
Describes the Go DIRect processin detail
Gives access to current contracting initiatives
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Current Contracting Webpage
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Future Contracting Opportunities
CURRENT CONTRACTING INITIATIVES
Posted on DIR’s Web site (www.dir.state.tx.us/store/cci) to improve communications between DIR vendors and customers
Lists initiatives by procurement stage• Planning
• RFO Postings – links directly to the posting on theElectronic State Business Daily (ESBD)
• Evaluation
• Negotiation
• Recent Awards
Each initiative has a brief description, expected phase completion date, and contact information
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Current Contracting Initiatives – Planning Stage (p1)
TYPE OF SERVICES/PRODUCTS DESCRIPTION
START DATE
RFO RELEASE DATE
CONTACT PERSON
Enterprise Resource Planning (ERP)
Release an RFO to contract with vendor(s) for ERP products and related services
Jun-08 Sep-08 Mark Howard
Augmenting RFO to Surveillance Equipment and Services
Release RFO to augment surveillance equipment and services to add access controls such as card readers
Jan-08
Jul-08
Mark Howard
Comprehensive Web Development and Mgmt Services
Release RFO to contract with vendor(s) to provide website design, development and hosting
Jan-08 Jul-08 Joanne Severn
Emergency Preparedness Hardware
Release RFO to contract with vendor(s) to provide hardware and devices for the purpose of emergency preparedness
Nov-07 Jul-08 Shannon Kelley
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Current Contracting Initiatives – Planning Stage (p2)
TYPE OF SERVICES/PRODUCTS DESCRIPTION
START DATE
RFO RELEASE DATE
CONTACT PERSON
Mobile Police Video Release RFO to contract with vendor(s) to provide mobile video cameras for use in police vehicles
Jan-08 Jul-08 Shannon Kelley
Microsoft Master Services Agreement
Release an RFO to provide a statewide technical services agreement with Microsoft Corporation
May-08 Jul-08 Joanne Severn
Internet Subscriptions
Release an RFO to provide access to a product or service on monthly or yearly or seasonal basis.
Jul-08 Oct-08 Kerry Stennett
Networking Equipment including Telecommunication Parts and Supplies
Rebid networking equipment to allow opportunity for new vendors and products. Vendors with existing contracts will not need to rebid.
Jan-08 Jul-08 Mark Howard
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Current Contracting Initiatives – RFO Posting
TYPE OF SERVICES/PRODUCTS DESCRIPTION
START DATE
RFO RELEASE DATE
CONTACT PERSON
Augmenting Software Products and Related Services
RFO DIR-SDD-TMP-126
July 7, 2008
August 8, 2008 Carrie Cooper
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Current Contracting Initiatives – Evaluation Stage
CONTRACT RFO NUMBERSTART DATE
END DATE
CONTACT PERSON
Apple-Branded Hardware Products and Related Svcs
DIR-SDD-TMP-116 4/8/2008 Q4 2008 Carrie Cooper
Deliverables-Based IT Services (DBITS)
DIR-SDD-TMP-115 4/12/2008 Q3 2008 Carrie Cooper
Dell-Branded Hardware Products and Related Svcs
DIR-SDD-TMP-120 4/15/2008 Q3 2008 Carrie Cooper
Emergency Preparedness Software
DIR-SDD-TMP-104 7/13/2007 Q2 2008 Carrie Cooper
IBM-Branded Hardware Products and Related Svcs
DIR-SDD-TMP-121 4/23/2008 Q4 2008 Carrie Cooper
Lenovo-Branded Hardware Products and Related Svcs
DIR-SDD-TMP-122 6/3/2008 Q4 2008 Carrie Cooper
Regulatory Software DIR-SDD-TMP-110 4/9/2008 Q3 2008 Carrie Cooper
Technology-Based Conferencing Products/Svcs
DIR-SDD-TMP-118 6/7/2008 Q4 2008 Carrie Cooper
Technology Based Training
DIR-SDD-TMP-094 7/18/2008 Q4 2008 Carrie Cooper
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Current Contracting Initiatives – Negotiation Stage
CONTRACT RFO NUMBERSTART DATE
END DATE
CONTACT PERSON
Break/Fix Services DIR-SDD-TMP-096 11/5/2007 Q2 2008 Carrie Cooper
IT Staffing Services DIR-SDD-TMP-109 1/11/2008 Q3 2008 Carrie Cooper
Miscellaneous Information Technology (IT) Hardware Peripherals, Components, and Related Services
DIR-SDD-TMP-092 10/25/2007
Q2 2008 Carrie Cooper
Security Services DIR-SDD-TMP-100 12/3/2007 Q3 2008 Carrie Cooper
Technology-Based Recording Equipment, Software, and Services
DIR-SDD-TMP-111 2/15/2008 Q2 2008 Carrie Cooper
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Current Contracting Initiatives – Recent Awards
CONTRACT VENDORSTART DATE
END DATE
CONTACT PERSON
Enterprise Architecture Multiple Awards 4/16/2007 7/02/2008 Phyllis Benitez
Cabling Services Multiple Awards 5/13/2008 5/13/2010 Joan Scott
Computers Multiple Awards 6/6/2007 6/6/2008 Brian Bell
Court Case Management Software
Multiple Awards 5/5/2008 5/6/2009 Phyllis Benitez
Managed Services for Information Technology (a/k/a Seat Management Services)
Multiple Awards 4/24/2008 4/23/2011 Aiko Morales
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Significant Re-procurement Opportunities
TEX-AN
Current TEX-AN contract expires August 31, 2009
Re-procurement will take place fall 2008 through summer 2009
Vision document: www1.dir.state.tx.us/texan/stg1/visiondocument.htmls
TEXASONLINE
Current contract expires December 31, 2009
RFO release October 2008
Vision document: www1.dir.state.tx.us/tol/rfo/vision.htm
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Contact Information
Sherri Parks, Director
Contracting and Procurement Services
(512) 463-3580
www.dir.state.tx.us