Purchasing Directors’ Meeting May 17, 2012

1. Purchasing Directors’ Meeting May 17, 2012

2. Agenda • Welcome comments – Kelly Loll • Introductions – All • CPO updates – Kelly Loll • MyFloridaMarketPlace year-end activities – Danielle Kosberg • Upcoming workgroup meetings – Danielle Kosberg • Get Lean suggestion – Wayne Mitchell • Suspended/convicted/discriminatory vendors list – Wayne Mitchell • PPIP update – Wayne Mitchell • Hot topics – All

3. CPO Updates • Government Efficiency Task Force – June 6 – several recommendations approved • FAPPO conference

4. MFMP Year-end Activities • All requisitions need to be approved by Friday, June 29, COB (5 p.m.) • We plan to take MyFloridaMarketPlace down July 1 and 2 (Sunday and Monday) • This helps us complete the MyFloridaMarketPlace year-end processing as smoothly as possible which includes “Carry Forward” and “Delay Purchase Until” processing • We will e-mail agency liaisons to update on the progress

5. Year-end Activities Following the June 30 / July 1, 2011, year-end processing activities, the Customer Service Desk processed 238 purchase orders that required additional intervention • For example, resends required because of inaccurate vendor data, etc. • Agencies can help us with this process • Reach out to vendors to request they update their MyFloridaMarketPlace registration • Contact the customer service desk if agency has the updated vendor information • Correct any invalid vendor information before issuing purchase orders

6. Year-end Activities • In 2011, the MyFloridaMarketPlace team processed: • 3,607 unencumbered requisitions • 3,654 in 2010 • 7,536 encumbered requisitions • 6,948 in 2010 • Thank you for your cooperation in making that happen!

7. Year-end Activities Refer to Secure Reports Job Aid for information about each suggested report listed below • IRs With Last Approver • POs Without IRs • All Received Orders Report • All Open Orders Report • All Orders Report • PRs in Submitted Status • FLAIR Voucher Summary Report • All Open Orders with Delay Purchase Until • DO Payment History Encumbrance Level Remember, for spend/payment analytics for your agency, run custom reports in MFMP Analysis.

8. Year-end Activities • MFMP on-line resources and reports • MFMP Reporting http://dms.MyFlorida.com/mfmp_reporting • MFMP Report Job Aidshttp://dms.MyFlorida.com/mfmp_jobaids • MFMP Secure Reports Websitehttp://dms-purchasing-ftp.state.fl.us/xx00

9. Upcoming Workgroup Meetings • Invoicing Workgroup • July 18, 2-3 p.m., Eastern time • System Administrator Workgroup • July 18, 3:30-4:30 p.m., Eastern time • Department of Management Services officesRoom 101, 4050 Esplanade Way, TallahasseeConference line: (888) 808-6959Passcode # 9766076

10. Get Lean Suggestion In response to a Get Lean suggestion, State Purchasing analyzed prices for bleach, comparing PRIDE to Grainger, the MRO state term contract vendor. List Price: PRIDE 1 Gallon: $1.93 Grainger 1 Gallon: $2.02 Delivered Price (this order): PRIDE 1 Gallon: $3.85 Grainger 1 Gallon: $2.02 Grainger bleach concentration is 6 percent PRIDE bleach concentration is 5.25 percent Grainger’s price includes shipping On this order the state would save $65.73 or 47 percent by placing the order with Grainger (UOM rounding error).

11. Get Lean Suggestion Agency Obligation to Purchase from PRIDE • No similar product or service of comparable price or quality found necessary for use by any state agency may be purchased from any source other than PRIDE if PRIDE certifies that the product is manufactured by or the service is provided by inmates (http://www.peol.com/state.htm) and the product or service meets the comparable performance specifications and comparable price and quality requirements as specified under s. 287.042(1)(f) or as determined by an individual agency as provided in this section. The purchasing authority of any state agency may make reasonable determinations of need, price and quality with reference to products or services available form the corporation. These requirements do not apply to the purchase of public printing, which is governed by Chapter 283, Florida Statutes. Subsection 946.515(4), Florida Statutes.

12. Suspended/convicted/discriminatory vendors list Suspended Vendor List

13. Suspended/convicted/discriminatory vendors list Form 7017 (Complaint to Vendor) and 9999 (Notice of Default)

14. Suspended/convicted/discriminatory vendors list Forms 7017 (Complaint to Vendor) and 9999 (Notice of Default)

15. Suspended/convicted/discriminatory vendors list Form 7017 (Complaint to Vendor) and 9999 (Notice of Default) • First provide notice to vendors of a complaint regarding performance, then • Notice of Default if problems are not cured. • Both forms are supplied to DMS and defaulting vendors are then placed on the suspended vendor list, remaining there until the problems with performance are cured, re-procurement costs paid, and the department is satisfied that further instances of default will not occur.

16. Suspended/convicted/discriminatory vendors list

17. Suspended/convicted/discriminatory vendors list Florida Administrative Code 60A-1.006 Vendors and Contractors • (1) The integrity, reliability and qualifications of a bidder or offeror, with regard to the capability in all respects to perform fully the contract requirements, shall be determined by the agency prior to the award of the contract and shall be monitored by the agency throughout the contract term. • (5) Convicted Vendor List – The Department shall maintain a convicted vendor list, consisting of the names and addresses of those who have been disqualified from the public contracting and purchasing process under Section 287.133, F.S. The Department shall publish an updated version of the list quarterly. The revised quarterly lists shall be published on the Department’s website at http://www.myflorida.com. • Specific Authority 120.57(3)(d), 287.042, 287.057(23)(d) FS. Law Implemented 120.57(3), 287.017, 287.042, 287.057, 287.133 FS. History–New 5-20-64, Revised 2-6-68, 5-20-71, Amended 7-31-75, 10-1-78, 12-11-79, 2-26-80, 8-6-81, 10-11-81, 11-10-81, 2-11-82, 8-10-82, 10-13-83, 11-12-84, 12-17-85, Formerly 13A-1.06, Amended 2-9-87, 11-3-88, 1-18-90, 4-10-91, 9-1-92, Formerly 13A-1.006, Amended 4-24-94, 1-9-95, 7-6-98, 1-2-00, 7-1-03, 5-16-04, 8-22-04, 10-15-06.

18. Suspended/convicted/discriminatory vendors list Florida Statute 287.133 - Public entity crime; denial or revocation of the right to transact business with public entities • (3)(a) All invitations to bid, requests for proposals, and invitations to negotiate, as defined in s. 287.012, and any contract document described by s. 287.058 shall contain a statement informing persons of the provisions of paragraph (2)(a). • (b) Any person must notify the department within 30 days after a conviction of a public entity crime applicable to that person or to an affiliate of that person. Any public entity which receives information that a person has been convicted of a public entity crime shall transmit that information to the department in writing within 10 days. • (c) If the department has reason to believe that a person or an affiliate has been convicted of a public entity crime, the department may issue a written demand upon that person or affiliate, concerning any such conviction or affiliation, to appear and be examined under oath, to answer interrogatories under oath, or to produce documents or other tangible evidence for inspection and copying. The department shall conduct any such inquiry in accord with applicable provisions of the Florida Rules of Civil Procedure.

19. Suspended/convicted/discriminatory vendors list • (d) The department shall maintain a list of the names and addresses of those who have been disqualified from the public contracting and purchasing process under this section. The department shall publish an initial list on January 1, 1990, and shall publish an updated version of the list quarterly thereafter. The revised quarterly lists shall be electronically posted. Notwithstanding this paragraph, a person or affiliate disqualified from the public contracting and purchasing process pursuant to this section shall be disqualified as of the date the final order is entered. • (e)1. Upon receiving reasonable information from any source that a person has been convicted, the department shall investigate the information and determine whether good cause exists to place that person or an affiliate of that person on the convicted vendor list. If good cause exists, the department shall notify the person or affiliate in writing of its intent to place the name of that person or affiliate on the convicted vendor list, and of the person’s or affiliate’s right to a hearing, the procedure that must be followed, and the applicable time requirements. If the person or affiliate does not request a hearing, the department shall enter a final order placing the name of the person or affiliate on the convicted vendor list. No person or affiliate may be placed on the convicted vendor list without receiving an individual notice of intent from the department.

20. Suspended/convicted/discriminatory vendors list Suspended Vendor List 60A-1.006 Vendors and Contractors • (2) Removal of Vendors by the Department – The Department is authorized to remove any vendor from the vendor list maintained pursuant to Section 287.042(1)(a), F.S., for failing to fulfill any of its duties specified in a contract with the State. • (3) Default – If a vendor is in default on any contract with an agency, the agency shall follow the procedures contained herein: • (a) The agency shall notify, in writing, any vendor who fails to adhere to contract terms and conditions. This notice shall state the nature of the failure to perform and provide a time certain for correcting the failure (such reasonable time should not generally be less than 10 days after receipt of such notice). The notification will also provide that, should it fail to perform within the time provided, the vendor will be found in default and removed from the agency’s approved vendor list. • (b) Unless the vendor corrects its failure to perform within the time provided, or unless the agency determines on its own investigation that the vendor’s failure is legally excusable, the agency shall find the vendor in default and shall issue a second notice stating (i) the reasons the vendor is considered in default, (ii) that the agency will reprocure or has reprocured the commodities or services, and (iii) and the amount of the reprocurement if known.

21. Suspended/convicted/discriminatory vendors list • (c) The defaulting vendor will not be eligible for award of a contract by the agency until such time as the agency is reimbursed by the defaulting vendor for all reprocurement costs. Reprocurement costs may include both administrative costs and costs or price increases incurred or to be incurred as a result of the reprocurement. Reprocurement of substitute commodities or contractual services may be accomplished by first attempting to contract with the next eligible awardee under the original solicitation, when applicable. If the agency fails to contract with the next eligible awardee, it may continue in this manner sequentially through all eligible awardees until a vendor willing to perform at acceptable pricing under the solicitation’s terms and conditions is found. Alternatively, an agency may elect to disregard previous solicitations, if any, and reprocure the commodity or contractual service pursuant to all applicable requirements of Chapter 287, F.S. • (d) Pursuant to Section 120.57, F.S., the defaulting vendor will be advised of the right to petition for an administrative hearing on the intended decision to remove the vendor from the list and shall be given a time certain within which to submit the petition.

22. Suspended/convicted/discriminatory vendors list • (e) Until such time as it reimburses the agency for all reprocurement costs and the agency is satisfied that further instances of default will not occur, the defaulting vendor shall not be eligible for award of a contract by the agency. To satisfy the agency that further instances will not occur, the defaulting vendor shall provide a written corrective action plan addressing the original grounds for default. • (f) The foregoing provisions do not limit, waive or exclude the State’s remedies against the defaulting contractor at law or in equity. • (4) A copy of all agency default actions shall be provided to the Department. Pursuant to subsection (2), the Department may remove the vendor from its vendor list.

23. Procurement Process Improvement Project Update • Seven-stage procurement training has begun internally for State Purchasing program staff and should be completed by mid-June 2012. • The PPIP team has completed a review of all of Florida Statute 287 requirements against the applicable sourcing stage that each requirement falls into. This has been graphed/charted by our project analysts. • The PPIP team is completing a full review and revision of the ITB template. Review and revision of the ITN template is currently in progress, as is review and revision of the MyFloridaMarketPlace eQuote template.

24. Procurement Process Improvement Project Update • The PPIP leadership team conducted on-site meeting/facility walk through with FSU training coordinator on May 3, 2012, to explore possible options for providing certification training. Exploring a pilot vendor webinar, target late-June. • Team members are planning to review eQuote to identify what sourcing technology should be used for different categories. • Team members are providing feedback on “best practices” and input on the outline contents of a purchasing “playbook.”

25. Hot Topics Open Discussion