General Services Department

1. General Services Department State Purchasing Division Paperless Procurement System (e-Bid) Phase I - Sourcing Director FY12-FY13 Project Certification Implementation Phase Status Update May 22, 2013

2. Paperless Procurement Phase I – Project Overview Project Goal: Phase I - Implement 3rd party COTs Sourcing Director Software; • Provide vendors an online registration system • Provide vendors the opportunity to submit electronic responses to State of New Mexico Request for Proposals (RFPs) and Invitation to Bids (ITBs) • Improve response times and business efficiencies • Increase vendor competition for State business to realize best value and cost contracts for the State of New Mexico public entities Business Problem: • State Purchasing Division conducts competitive solicitations in a manual paper-based process that is error-prone and extremely time and labor intensive • No online bid response and sourcing capability is available • Vendor tracking is currently done manually which is inefficient and inconsistent • All response to bids and RFP’s are hard copies in a large file room

3. Paperless Procurement Phase I – Project Overview • Governor’s Executive Order 2011-031 Task Force on Procurement Reform: • “Whereas, the State of New Mexico has an opportunity to develop a world-class procurement system that enables government to operate more effectively and efficiently” • “Whereas, the State should develop procurement processes that shorten administrative lead time, are streamlined,, and take advantage of automation to the greatest practical extent” • Agency Strategic Plan: • Goal 1 – For SPD Strategic Plan is to Implement automated and paperless procurement processes; including electronic bid and proposal capability • SPD Performance Measures: • Percent of all price agreement renewals considered for “best value” strategic sourcing option • Percent of customers satisfied with the procurement process

4. Paperless Procurement Phase I – Project Overview Desired Outcomes: • Improve service delivery to constituents • Improve productivity • Reduce risks associated with paper records • Develop tools to streamline data entry, tracking and reporting from the database • Develop tools to streamline performance and other specific business process workflows • Provide a secure repository for response copies/contracts with full back-ups and redundancy • Provide automated process to validate vendor commitments for services and products • Green Solution: Eliminates Copying and paper submittals

5. Paperless Procurement Phase I – Project Overview Phase I – Sourcing Director Module • Project Accomplishments to Date • As of 5/14/2013; 1,152 vendors have registered out of 1,800 previously registered • E-mail notification of solicitations are being delivered to vendors based on commodities • Central database of all registered vendors • Reporting capabilities • Increased efficiencies in SPD backend business processing and vendor online accessing for vendor registration • Sourcing Event is in process of being tested • Internal Project Review conducted • Project Issues/Concerns • March 28, 2013, SPD prepared simulated bids for testing, and determined there are still configuration issues that must be addressed. Event Sourcing Go_live is pending testing by selected outside vendors and final acceptance. • Vendor Registration software bugs/configuration issues • Lack of dedicated Project Manager

6. Paperless Procurement Projected Budget for All Phases • FY12/FY13 - Phase 1 Sourcing Director • Completion Dates – • Phase I A (Vendor Registration) - 03/15/2013 • Phase I B (Sourcing Event) Target – 8/30/2013 • Budgeted Costs -$106,360.00 • Target Expense - $106,360.00 • Phase I Close Out/Business Assessment • Budgeted Costs - $80,000.00 • Target Expense - $80,000.00 • FY13/FY14 - Phase II Supplier Contract Management & Authoring • Target Completion Date – 03/31/2014 • Budgeted Costs - $160,064.00 • FY14-FY15 - Phase 3 Supplier Manager • Target Completion Date – 6/30/2015 • Budgeted Costs - $112,076.00

7. Phase I & II Projected Budget

8. Paperless Procurement Next Steps • Next Steps • Hire a Project Manager • Conduct and develop a Business Assessment to; • Ensure that the Contracts Management Module offered by 3rd Party vendor meets the business need of SPD and the State • Identify any functional/technical gaps with the Sourcing Director Module that can be satisfied with customization • Identify additional training/marketing requirements • Assess risks • Determine feasibility of implementing and define a realistic schedule for Phase II • Determine resource allocation • Determine feasibility (budget/schedule/functionality) of implementing Phase III – Supplier Management Module

9. Paperless Procurement Release of Funds • Requesting release of $240,064.00 for the following purposes; • $80,000.00 to hire a Project Manager to develop revised project plan/schedule, conduct a Business Assessment of the Paperless Procurement project, oversight of entire project, risk mitigation management. • $80,000.00 (700+hrs@$102.50/hr. +GRT) • $160,064.00 to implement Phase II Contract Management & Authoring and hire a Project Manager • License - $ 41,564.00 • Services - $ 38,500.00 • PM - $ 80,000.00 (700+hrs@$102.50/hr+GRT) • Total $160,064.00 Thank You for Your Consideration of This Request