Meeting February 24, 2010

1. PROCUREMENT POLICY COUNCIL Meeting February 24, 2010

2. Agenda • Follow up items from November 2009 PPC meeting – Jeff Mandel • BMWBO – Deputy Secretary Peter Speaks • Materials Update – Jeff Mandel • Services Update – Roxana Dietz • Xpedx Presentation – Rick Whitcomb, Kim Sowers and Rebecca Long • Toner Cartridge Recycling – Betty Goodling • Other Procurement Updates • eMarketplace – Sue Plecker • E RFP – Sue Rojas • New Award Form – Roxana Dietz • New Delegation Letter – Roxana Dietz • Document Naming– Stephanie Fetter • Legal – Chuck Anderson • Policy Updates – Cheryl Kleeman • Training Updates – Jeff Mandel

3. Follow-up items from 11-5-2009 PPC • Put SBR Form on BOP website  • SBR Self Certification form posted to forms section for Agencies • http://www.dgsweb.state.pa.us/comod/CurrentForms/SmallBusCert.doc • P.O. Line Item Reconciler role MRBR access •  The following transactions which are needed to run blocked invoice reports and to clear the blocks are all part of the Line Item Reconciler Role: ZMRBR – Yes – included in invoice reconciler MRBR– Yes – included in invoice reconciler MR11– Yes – included in invoice reconciler Y_DC1_32000674 - Yes – included in invoice reconciler  Transaction ME23N is part of the Purchasing Display Role and all purchasing related roles have this as part of the composite role. • Request for Expression of Interest – Procurement Handbook guidelines  • Will include in future revisions to the Handbook

4. New Questions for PPC • Procurement of telecommunications/IT cabling services - when is it appropriate to use the IT ITQ versus ordering from Verizon thru ISS? • An agency should only utilize Verizon contract for cabling runs up to 150 feet.  For cabling runs > 150 feet, the IT ITQ should be used following defined processes associated with $ thresholds.  Point was addressed in the COPA’s written responses to supplier’s questions during Telecommunications RFP process. • How does agency make an award when requirement to publicly advertise was not met?   Example: Bid came in over $10K or advertisement was overlooked.  Part 1, Chapter1, Section D of the handbook states “Upon written request from an Agency, the Secretary of the Department of General Services, or their designee, may grant a waiver from any requirements of this handbook, provided the waiver would not be a violation of law”.  Is DGS able to grant a waiver to the advertisement based on the handbook? • DGS cannot grant waiver from the requirement for advertisement. However, in this scenario we could retroactively grant a waiver for the dollar threshold of the formal solicitation process

5. Updates from BMWBO Bureau of Minority and Women Business Opportunities Total Percentage MBE/WBE Commitments for 2009 16.77% RFP Percentage Commitments for MBE/WBE in 2009 15.25% * In 2003 Total Percentage MBE/WBE Commitment was less than 3%

6. Contributions To Increased Disadvantaged Business (DB) Numbers BMWBO • Increased 20% weight for DB portion in RFPs • Pre-proposal Conferences • Increased cooperative relationship between Agency Procurement Staff and BMWBO

7. Assistance Still Needed BMWBO • Encouragement of Pre-proposal Conferences • Involvement of BMWBO from Cradle to Grave-See Procurement Handbook Part II, Chapter 7 -Notification to BMWBO about drafting of Statement of Work (SOW), Evaluation Meetings, and Contract Negotiations • Notification of changes in DB Commitments & Scope of Work which could affect DB involvement • Award Notification (New form to be presented later)

8. BMWBO Contact Information BMWBO • 611 North Office Bldg. Harrisburg, PA 17125 Phone: (717) 783-3119 Fax: (717) 787-7052 Email: GS, RFP-BMWBO/RFPs • Gayle Nuppnau, Procurement Liaison, BMWBO (717) 346-3819 gnuppnau@state.pa.us

9. Materials Contract Update

10. Materials Contract Update

11. Materials New Solicitations

12. New MRO Solicitation! Larger number of independent lots: • Electrical • Elec. Square D • Sylvania Lamps and Accessories • GE Lamps and Accessories • Phillips Lamps and Accessories • General Hardware • Material Handling • Safety • Hand and Power Tools • HVAC • Filters • Pumps and Plumbing • Motors and Power Transmission

13. MRO • Evaluation Committee DOC, PENNDOT, DGS, DMVA, DPW. • Asked for additional Value Added Services! • Two Year Contract with three one year renewals available. • Expiration date of current contact is October 3, 2010

14. Electricity Shopping • DGS has shopped 1200 electric accounts served by PPL Utilities and made awards to alternate suppliers. • Bids included accounts belonging to the majority of Commonwealth agencies • DGS also began providing assistance to COSTARS members seeking assistance in this area • 300 of accounts bid belong to COSTARS members • This process has been successful, resulting in significant cost savings vs. PPL rates for 2010. • $10 million for COPA accounts • $1 million for COSTARS members

15. Services Team New Contracts

22. xpedx – Harrisburg Division 211 House Avenue, Camp Hill, PA 17011 (800) 321-1804 Vendor #102381 Federal ID #13-0872805

26. QUESTIONS Presented by: Rick Whitcomb Rick.Whitcomb@ipaper.com Group Sales Manager, xpedx-Harrisburg Office: 717-612-6124 Fax: 717-612-3105 Cell: 717-512-4709 Kim Sowers Kim.Sowers@xpedx.com Business Administrator Office: 717-612-3111 Rebecca Long Rebecca.Long@xpedx.com xpedx Sales Professional Office: 717-612-3135

27. PIBH • Recycling Program for Toner and Inkjet Cartridges • Collect and recycle all empty cartridges from copiers, facsimiles, and printers, which includes OEM cartridges (HP, Lexmark, etc.) and any cartridges that may have been previously remanufactured • All cartridges must be recycled through the Commonwealth’s Recycling Program • At no time should cartridges be returned to the manufacturer, supplier, recycled through any other recycling centers or thrown into the trash • Only 10% of the PIBH remanufactured toner cartridges are currently being recycled • Drives up cost for all • You may view the Commonwealth’s Recycling Procedures at http://www.dgsweb.state.pa.us/comod/other/CWOPARecycling.doc • Procedures reference two different methods for return; one for Capital complex and the other via return UPS labels • Return UPS label is already included in the box of any PIBH/Goodwill remanufactured toner cartridge.

28. PIBH • Defective Toner Cartridges • Do not dispose of or place defective toner cartridges in any recycling containers • Defective cartridges should be returned to the supplier for a replacement or credit, with the exception of PIBH remanufactured toner cartridges • There will be a label affixed to the top of the cartridge that says “Goodwill”, if the cartridge was remanufactured through the PIBH program • If you receive any defective PIBH toner cartridges, contact the DGS Quality Section by email at ra-qa-division@state.pa.us and provide the following information: a)  Your point of contact b)  Agency and Location of defective cartridge c)  Printer Brand and Model d)  Describe in detail the nature of the problem • Your case will be assigned to a Quality Specialist to investigate and provide further instructions to you after reviewing your complaint/concern

29. PIBH • Trash Liners • Agencies to purchase PIBH plastic trash liners directly from PIBH before considering other plastic trash liners available for purchase on the Xpedx contract • Carpet and Carpet Tile Installation • Agencies to offer commercial and residential installation services to PIBH

30. eMarketplace Enhancements eMarketplace main has been modified to show all tabs without scrolling

31. eMarketplace – Contract Search Enhancements Contracts page has been broken down into two (2) pages. First page no longer need to scroll andnow shows more description than the previous version. Select Contract Number to proceed to page 2

32. eMarketplace – Contract Search Enhancements Cont’d Page 2 consists of all information found on page 1 as well as viewing the contract and other information no longer found on page 1. Green logos for contracts that contain Green content will be a new feature

33. Emergency Procurements • Objective – Secretary & Governor’s initiative to make more information available for public scrutiny.

34. Emergency Procurements Public will be able to view the following

35. Emergency Procurement Process If approved, agency receives approval e-mailback from the electronic system *Agency completes electronic EPO Formand all supporting documentation(i.e. OA/OIT approval, estimated costs, quotes, statement of work, etc). DGS receives auto-generated e-mail regarding EP form request for approval Agency receives internal approvals to submit EPO Request Agency creates Emergency PurchaseOrder and attaches all supporting documentation,including email authorizing approval Agency e-mails DGS after Emergency Purchase Order has been entered.Include EPO number Agency routes electronic EPO forinternal approval. Final approver sends to DGS( Agency Head or designee) DGS release PO in SRM and notifiesAgency when released DGS approves/disapprovesor returns for correction Denotes Agency Process Denotes BOP Process *For situations in which the health, safety & welfare dictate, verbal approval should be requested prior to submittingElectronic EPO Form

36. Emergency Procurements • Benefits • Public Notice • Electronic internal agency approvals via e-mail • Electronic DGS approvals via e-mail • Archiving of Emergency Procurement form and all related documentation for 4 years. • Internal DGS reporting features

37. Emergency Procurements • Key Dates • Demo was provided to the eMarketplace Agency Focus Group on 01/22/10 • Testing was conducted with agency personnel on 02/08/10 • Go live date was 02/17/10. • Agency notification sent 02/17/10 End User Procedures can be located on the “Help”section of PA eMarketplace

38. Emergency Procurements • Enhancements that have been completed since go live: • Fixed text fields to allow copying & pasting of text. That functionality was causing the application to crash. • EP Length field has been expanded to allow more than 12 characters. Now allows up to 2,000 • When typing into the text boxes on the electronic EP form, it now tells you how many characters you have remaining

39. Emergency Procurements • Future Enhancements – We are still compiling a list of enhancements, just to name a few • Allowing multiple e-mail addresses for Central Procurement Offices or other staff to receive copy of approval/disapproval/return for correction e-mails. • Extensions submittals - allow upload of documents Suggestions for enhancements are welcome

40. Emergency Procurements • Future Enhancements (cont’d) • The following language will be added • The following language will be added And provide explanation as to what created the threat Note: DGS will not accept “delay in new contract being executed” as a basis for an EP unless the Agency can provide detailed, justifiable explanation for the delay. For example, if a supplier filed a protest & the agency is required to stay the award, thus delaying the process by “X” days

41. What is eRFP? • Proposal evaluation system • Automates RFP evaluations • Assists in providing quality evaluations, complete and traceable documents and timely contract award decisions • Enables evaluators to reduce or eliminate travel • Allows collection and separate opening of Disadvantaged Business (DB), cost and technical proposals

42. Background Challenges in current Request For Proposal (RFP) process Manual evaluations Cumbersome system Labor intensive Inconsistent results Document retention Investigated automated process Cycle time and scoring accuracy Standard evaluation method Central proposal repository Defendable reporting Indentified requirements Track evaluator progress Capture evaluator comments Identify strength and weaknesses of proposals Score objectively Produce detailed reports

43. RFP Flow Chart Comparison

44. Written Proposal Eval. Exec. Report • Report used for evaluation committee meetings • Shows all scores and criteria for the team • Hyperlink shows question, evaluator & score

45. Evaluator Scoring Progress

46. Summary Score Report • Run Summary Score Report to see which supplier gets total points • No need to complete Scoring sheets as long as you use eRFP for your evaluation

47. Advantages • Eliminate paper intensive processes • Easily identify and justify selection of “best qualified” proposal • Documents evaluation process from project set-up to final award recommendation • Reduce time, cost and subjectiveness of evaluations • Captures all notes generated during evaluation process • Provide complete audit trail • Evaluators use on-line forms with pre-defined evaluation criteria • Objective evaluation process • Evaluators trained and supported by Commodity Specialist • Instantaneous report generation Currently only utilized by BOP personnel however, agency evaluator personnel may also be called upon to use scoring software.

48. Award Form - Existing

49. BOP-010 Award Form • Form to be completed by Agency issuing contract/PO for procurements that exceed Servicesdollar thresholds established in Part 1, Chapter 7 of Procurement Handbook. • Agency provides, if DGS provided the agency full delegation. • BOP provides, if BOP led the solicitation and the agency executed the resulting contract/po. • BOP provides, if BOP led the solicitation and executed the resulting contract. • Copy of Recommendation for Selection Memo, Domestic Workforce Certification, and copy of disadvantaged business commitments made in contract must accompany form, and if applicable, a copy of Small Business Reserve self-certification. • Recommendation for Selection Memo is not applicable to IFBs • Domestic Workforce Utilization Certification only applicable to Services RFPs, RFQs and Multiple Awards Solicitations • Small Business Requirement (SBR) must be pre-defined in original solicitation • Submit completed form and attachments within (10) ten days after contract/po executed to: Janis Brown, DGS/BOP and Christine Quinn-Dear, DGS/BMWBO. http://www.dgsweb.state.pa.us/comod/CurrentForms/BOP010.doc

50. BOP-010 Award Form