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PROCUREMENT POLICY COUNCIL. Meeting September 9, 2010. Agenda. Materials Updates – Walt Quade, JP Duvall Services Updates – Dennis Fellin, Rich Gaul Vendor Presentation – ARBILL – Donna Brown, Business Development Manager and Marcelo Rodriquez, Manager of Specialty Products
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PROCUREMENT POLICY COUNCIL Meeting September 9, 2010
Agenda • Materials Updates – Walt Quade, JP Duvall • Services Updates – Dennis Fellin, Rich Gaul • Vendor Presentation – ARBILL – Donna Brown, Business Development Manager and Marcelo Rodriquez, Manager of Specialty Products • eMarketplace Updates – Sue Plecker • Other Procurement Updates – Cheryl Kleeman, Stephanie Fetter • Legal – Chuck Anderson • Training Updates – Joan Kraft Appendix
MRO Contract • 10 total lots (2010) versus 7 (2005) • 4 suppliers currently going through approval • Will remain in SRM/ cXML as punch-out catalogs; R/3 for MRP users • DB participation ~ 8 %; 0% currently • December 1, 2010 target for new contracts • Current contracts have all been extended for 90 days • Continued push for energy efficient (“green”) products • Continued cost cutting (Market Basket & process improvement) and SKU consolidation - $2.2M • Inventory management & reduction (including tie-ins to SRM – Grainger) • Continued contract compliance improvements • On-going quarterly supplier business reviews with agencies Contacts: Lilly Mangan, Commodity Specialist, MRO 717-346-3846 or lmangan@state.pa.us JP Duvall, Associate Commodity Manager, MRO 717-346-8175 or jeduvall@state.pa.us
Electricity Procurement Update • Preparing to begin the bidding process for the electric generation for all non-PPL utilities. • Deregulation will impact balance of PA 01/11 • Budgets will continue to be impacted with cost increases based on experiences with PPL early this year. • The PUC has granted PPL another 1.6% increase in their transmission rates for all customers effective 01/11
Environmental Facts • Americans purchased 8.8 billion gallons of bottles water in 2007 • Avg. U.S. cost to treat, filter and deliver water to ratepayers is 0.2 cents per gal. • Roughly 750-2,700 times cheaper than bottled per gallon. Rates vary regionally. • 90% U.S. municipal water systems regularly meet or exceed EPA regulatory/monitoring requirements. • In 2005 , 96% of bottled water sold in U.S. was packaged in PET containers, most single serve bottles. • For each gallon of water that is bottled, an additional two gallons are used in processing. • In 2004, only 14.5% of non-carbonated beverage bottles made from PET were recycled. • Producing PET bottles uses the equivalent of more than 17M barrels of oil and produces over 2.5M tons of carbon dioxide. • Same amount as emitted by over 400k passenger vehicles. • Bottle-less coolers use 30 to 50% less energy than average bottled coolers. • Major reduction in green-house gas emissions as truck deliveries are eliminated.
Think Outside the Bottle • Bottled water is environmentally damaging and wasteful. • Wide availability of safe, low-cost tap water, wide array of appropriate and cost-competitive filters and other drinking water dispensing equipment-switching to tap water saves money • Dramatically reduces environmental impacts • Greenhouse gas emissions • Water consumption • Waste generation • Negative publicity about taxpayer funding going into expensive bottled water • A growing number of buyers, both public and private, are thinking outside the bottle and making the switch.
Water Dispensing Equipment • DGS issued solicitation that resulted in a multiple award hierarchy contract # 4400007371 for lease of Water Dispensing Equipment. • Effective 8/15/10, 5-year contract awarded to 3 suppliers: • Aqua Pure Technologies SRM Contract # 4400007372 • DS Waters of America SRM Contract # 4400007373 • Quench USA Inc. SRM Contract # 4400007374 • Pcard enabled: N • Pcard accepted: Y • MSCC: No • Validity Period 8/15/2010 to 8/14/2015 This cost effective alternative to bottled water should reduce costs by approx 30%. Contact: Richard Bahl, Commodity Specialist 717-787-5427 or rbahl@state.pa.us
Enterprise IT Staff Augmentation Services • Awarded to Computer Aid, Inc. Contract 4400007198 • Effective 8/4/2010 - 6/30/2012, with option for three (3) additional years. • Yearly projected savings $6.1M, 12.4% average reduction in rates. • DB committed • 24.7% Contract mgt • 70 % Staffing spend • People Click users can run Business Intelligence reports based on the users login information. • Can view real time data specific to their agency. • PO’s against current contract (4400023137) remain valid until 12/31/10. • If agency wishes to utilize new rate structure for current engagements, must issue a new requisition against contract 4400007198 and upon receiving a new quote, cancel the current PO and issue a new PO.
Enterprise Software Contract • Lot 1 – COTS Software, includes Microsoft Products; • Awarding to Dell • Projected savings of $330k/ yr based on the reduction in supplier mark-up on new license and renewals. • Mark-up – from average of 1.1% to avg. flat rate of 0.5%. • Lots (2 – 10) – IBM Enterprise, includes Applications, include FileNet, Optim, Cognos, and iLog. • Awarding to IBM. • Contracts routing for approval. • Current Contract expires September 30, 2010
Print Contract • Supplier – Digital Ink • Line Item Specific Print: • SRM Contract Number: 4400007122 • Select MSCC Catalog from Contract • R3/SAP Contract 4600014412 • For use only by DOT for MRP items • Matrix-Based &Process-Based Print: • SRM Contract Number: 4400007122 • Select “Product Category” (Line item 9) from Contract. • Print Specification Approval • Bureau of Publications is responsible for approving all printing specs for matrix-based or process-based print (i.e., non-document specific line items) prior to submitting to Digital Ink.
Procurement Forms Website Redesign • Procurement Forms website has been redesigned • Shows which forms should be used for each transaction (i.e. IFB, RFP, Sole Source, Contract) • Provides definition or use for each form
New SRM Punch-out New SRM Punch-out Catalog Supplier: Pomeroy IT Solutions Supplier #: 169472 • Contract 4400007143, IT Hardware (Peripherals) • Please note this contract replaces 4400002810 • Contract 4400002814, IT Hardware (Networking Gear) • Auto-PO Functionality enabled on orders $10,000 or less • Go-Live: August 19, 2010 • Pomeroy Punch-out Catalog User Guide
ACM & CS Contract Alert Program Notification will occur via outlook and in the alerts tab in the universal work list (UWL). • View from Universal Work list Alerts Tab: • The alert must be “Completed” by the recipient (right click the item and choose Complete) for the item to be removed from the alerts tab. • View from outlook email:
Liquidated Carts Showing in BW/BI Question: When reducing purchase orders that have carts associated with them the cart balance shows in the purchaser’s worklist. When going in to check them off - the checkmark changes from green to gray; but they still show up on BW/BI reports as open shopping carts. Users cannot go into monitor shopping carts and delete it from there as it shows there is a PO attached to it, so a remedy ticket is needed. Response: There are times when the shopping cart report data gets out of sync with the BW/BI reports because of the timing of the extract as well as the various processes used to create purchase orders. Resolution: A new transaction has been added to the purchaser role that allows the liquidation of the open value and the next day the BW/BI reports will reflect those changes. An end user procedure (Shopping Cart Complete Program in the Purchasing Agent Role) has been developed– the transaction is very simple and requires just the PO number and line item.
MSCC Contracts Update Existing DGS Contracts converted to Material/Service Contract Catalogs Textiles • 4400000971 Cotswold Industries Inc • 4400000987 Ragold Corporation • 4400000991 J Weinstein & Sons Inc • 4400000992 Tabb Textile Company Inc • 4400000993 Carolina Textiles • 4400000999 Jason Mills LLC • 4400001172 Comade Inc • 4400005913 Lafayette Textile Industries LLC • Printing/Envelopes • 4400006807 MeadWestvaco • Work Gloves • 4400003085 Stauffer Manufacturing Co • 4400003660 Saf-T-Guard International Inc
MSCC/Auto-PO Policy • Auto-generated POs: • A supplier enablement functionality • System faxes a PO directly to a supplier upon completion/release • Suppliers are set up for auto-PO based on established criteria • Creation of a MSCC catalog New DGS policy: • All MSCC catalog contracts will be set up as auto-PO • Currently there are 216 MSCC catalogs • 54 are auto-PO enabled • Converting all existing • Tire Contracts: Goodyear & Bridgestone • Notification will be sent to all agencies with go-live date • All new MSCC auto-PO, effective 8/6/10
Invoices received in agency reconciler workflow Issue: Invoices in agency reconciler’s workflow that do not belong to that agency. Review of Issue: Upon review of PO’s, determined that, while some of the line items on the PO are for this particular agency, other line items are set up for the agency that truly should be getting the invoices. Background: Invoice routed, via workflow, for a particular PO, system ID’s 1st 7 digits of Funds Center on LAST line item of the PO, and determines from that line item where invoice transaction should be routed. • Invoice routed to agency reconciler only when it was unable to be posted/cleared after Invoice Processing (“R” Blocks, rejections, etc.). Unable to have system route invoice based on more than one line item, thus last line item is logic utilized. Solution: In order for invoices received against PO’s to route correctly, agency users should ensure that the last line item on the PO has the Fund Center of the agency that should be receiving the invoices.
