Purchasing Directors’ Meeting November 13, 2003 3:00 P.M.

State Purchasing Purchasing Directors’ Meeting November 13, 2003 3:00 P.M.

Purchasing Directors’ Meeting November 13, 2003 Agenda • Welcome / Meeting Overview • Trends in e-Purchasing/Transforming Supply Management • Optimizing Public Procurement Research Project • Operational Issues • Ethics Update – Right to Honest Government Act • Open Floor / New Issues • Next Meeting Location / Time

Purchasing Directors’ Meeting November 13, 2003 Agenda • Welcome / Meeting Overview • Trends in e-Purchasing/Transforming Supply Management • Optimizing Public Procurement Research Project • Ethics Update – Right to Honest Government Act • Operational Issues • Open Floor / New Issues • Next Meeting Location / Time

Before the forest, some trees … Office Consumables Strategic Sourcing • Reverse Auction sourcing tools • 32% savings over Florida historical baseline prices (previous STC) ~ $6 million per year • Beat others’ prices significantly on sample of commonly-ordered items

Office ConsumablesIllustrated Unit Savings

. . .From the Trees to the Forest(s) Overview of Initiatives Human Resources – People First DMS working with Convergys/SAP to modernize the personnel system, leave and attendance and benefits management Purchasing – MyFloridaMarketPlace DMS working with Accenture/Ariba to integrate purchasing activities for all State buyers and for vendors doing business with the State Financial Management – Aspire DFS working with Bearing Point/PeopleSoft to replace the legacy accounting and financial system (FLAIR) with an integrated enterprise resource planning system

Purchasing Directors’ MeetingTrends in e-Purchasing/Transforming Supply Management Professor Larry C. Giunipero ISM Prof. of Purchasing/Supply Management Marketing Department Florida State University lgiunip@cob.fsu.edu

Purchasing Directors’ MeetingOptimizing Public Procurement Research Project Amy Witte Lyndon B. Johnson School of Public Affairs University of Texas at Austin Policy Research Project Professor Sherri Greenberg

The Policy Research Project Purpose and Intent • Integral part of the LBJ School curriculum • Year long research effort on real policy problems • Research team of one to two professors and ten to twenty students • Designed to develop student analytic and quantitative research skills • Research product with results developed

Optimizing Public ProcurementPurpose • Examine best practices in public purchasing in state and local governments • Make recommendations of more responsive policies and processes supporting the government’s mission, including • Procurement reform initiatives • Price saving strategies • Training of procurement personnel • Data acquisition and management

Optimizing Public ProcurementAreas of Research • Research will include: academic literature, professional sources, and best practices from across the United States in both public and private sectors • Case studies for comparable purposes will include: STATES: CITIES: • California – Austin, TX • Florida – Sacramento, CA • New York – San Diego, CA • Texas – Tallahassee, FL • Four procurement areas: traditional purchasing, construction, technology, and outsourcing of services

Optimizing Public ProcurementProject Culmination • Mid-April conference on procurement practices • Publication as part of Policy Research Project Reports series

Optimizing Public ProcurementContact Information Professor Sherri Greenberg • Email: srgreenberg@mail.utexas.edu • Phone: (512) 471-8324 Amy Witte • Email: awitte@mail.utexas.edu • Phone: (512) 736-1598

Purchasing Directors’ MeetingOperational Issues • Air-Tran Support of Operation Iraqi Freedom R&R program • New Contracts • Upcoming Solicitations • DMS Website

Operational IssuesAir-Tran/R&R Program • AirTran Airways announced on November 12 that, starting immediately, members of A-Plus Rewards, the airline's frequent flier program, can support the U.S. military's Operation Iraqi Freedom Rest & Relaxation (R&R) program by donating their flight credits. U.S. military personnel returning home will be able to use the donated flight credits for travel from Atlanta, BWI, or Dallas-Ft. Worth International Airport to any destination AirTran Airways serves. • AirTran will contribute 8,000 flight credits, equivalent to 500 roundtrip tickets, and will plan to match every donation up to 500 credits. Flight credits donated by A-Plus Rewards members will not have an expiration date. The flight credits will be aggregated in a single account accessible by a designated contact from Military Travel Command who can redeem the credits for free flights for any U.S. military personnel they select. • Through December 31, 2004, A-Plus Rewards members wishing to donate flight credits can do so by logging onto their A-Plus Rewards account and clicking on "my rewards," "request rewards" and then "Military Leave Credit Donation," where they can indicate the number of credits to be donated.

Operational IssuesNew Contracts Autos and Light Trucks – Jim Den Bleyker Natural Gas Pool Manager – David Bennett Office Consumables – Steve Poole MRO Materials – Chuck Beall Mail Services – Susan Barr Drug Screening Devices – Mark Lovell Anticipated contract start date is 1/1/04. Current contract expires 11/22/03. Place orders in next week for rest-of-year needs.

Operational IssuesUpcoming Solicitations (60 Days) • Small Vehicles/ATV – Jim Den Bleyker • Tractors/Mowers – Jim Den Bleyker • WATS Service – Marvin Williams • Feature Phones – Marvin Williams • Cell Phones – Marvin Williams • Chapter 413 C.N.A. – Tom Butler • IT Consulting – Stu Potlock • Microsoft Reseller – Stu Potlock

Operational IssuesDMS Website • To improve service, DMS will implement a redesigned agency website in the next month • Division-specific pages will be updated thereafter • Report transition-related technical difficulties to Sarah Hamilton (Hamilt@dms.state.fl.us)

Purchasing Directors’ MeetingEthics Update – Right to Honest Government Act NIGP October Pulse Poll Have ethics been compromised during professional career? • 67% say yes • 27% say yes within the past year Response to a situation that seriously compromised ethics? • 66% would report directly to their supervisor • 15% would seek legal guidance • 1% would report the situation to the media • 3% would begin searching for another job

Purchasing Directors’ Meeting Right to Honest Government Act • Governor Bush’s Executive Order No. 99-237 established the Public Corruption Study Commission to consider and make recommendations related to statutory revisions on the issue of public corruption and official misconduct • Chapter 2003-158, Laws of Florida, effective October 1, 2003 (HB No. 847) • Section 5 creates three new sections of Florida Statutes – 838.022, 838.21, and 838.22 • 838.014(4): “‘Corruptly’ or ‘with corrupt intent’ means acting knowingly and dishonestly for a wrongful purpose.”

Purchasing Directors’ Meeting Right to Honest Government Act 838.22(1): It is unlawful for a public servant, with corrupt intent to influence or attempt to influence the competitive bidding process undertaken by any state, county, municipal, or special district agency, or any other public entity, for the procurement of commodities or services, to: (a) Disclose material information concerning a bid or other aspects of the competitive bidding process when such information is not publicly disclosed. (b) Alter or amend a submitted bid, documents or other materials supporting a submitted bid, or bid results for the purpose of intentionally providing a competitive advantage to any person who submits a bid.

Purchasing Directors’ Meeting Right to Honest Government Act 838.22(2) It is unlawful for a public servant, with corrupt intent to obtain a benefit for any person or to cause unlawful harm to another, to circumvent a competitive bidding process required by law or rule by using a sole-source contract for commodities or services.

Purchasing Directors’ Meeting Right to Honest Government Act 838.22(3) It is unlawful for any person to knowingly agree, conspire, combine, or confederate, directly or indirectly, with a public servant to violate subsection (1) or subsection (2). 838.22(4) It is unlawful for any person to knowingly enter into a contract for commodities or services which was secured by a public servant acting in violation of subsection (1) or subsection (2).

Purchasing Directors’ Meeting Right to Honest Government Act 838.22(5) Any person who violates this section commits a felony of the second degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

Purchasing Directors’ Meeting Right to Honest Government Act Resource Materials: • Governor Bush’s Code of Ethics http://www.myflorida.com/myflorida/government/policies/ethicscode.html • NIGP Code of Ethics http://www.nigp.org/genlinfo/2001CodeofEthics.pdf

Purchasing Directors’ Meeting Right to Honest Government Act What to Do Next: • Send existing ethics in purchasing materials to DMS (Russ.Rothman@MyFlorida.com) • Update your attorney

Purchasing Directors’ MeetingNext Meeting Time: 3:00 to 5:00 p.m. Date: Thursday, December 11, 2003 Location: Department of Revenue “Taxworld” 5050 West Tennessee Street Building C, Training Room D & E (850) 921-2548 (SC - 291-2548)

Purchasing Directors’ Meeting November 13, 2003 3:00 P.M.