Dawn Curley Procurement Services Group Office of General Services dawn.curleyogs.state.ny 518 473-2045

2. Kelly and I make up ½ of the IT Aggregate Purchasing Team. We will be introducing the rest of the team to you at the end of the presentation.Kelly and I make up ½ of the IT Aggregate Purchasing Team. We will be introducing the rest of the team to you at the end of the presentation.

3. From February 2005 – March 2007 we anticipate saving the state 58 million dollars. We will break down this number for you during our presentation. Currently we have saved 30 million dollars through completed PC purchase initiatives. This savings is from already reduced NYS contract prices. How are we doing this? Through a process called Aggregate Purchasing. Aggregate purchases are based on quotes from existing NYS contract so all terms and conditions of the NYS contracts apply to these initiatives. We are simply getting better price based on statewide aggregate volume. From February 2005 – March 2007 we anticipate saving the state 58 million dollars. We will break down this number for you during our presentation. Currently we have saved 30 million dollars through completed PC purchase initiatives. This savings is from already reduced NYS contract prices. How are we doing this? Through a process called Aggregate Purchasing. Aggregate purchases are based on quotes from existing NYS contract so all terms and conditions of the NYS contracts apply to these initiatives. We are simply getting better price based on statewide aggregate volume.

4. What Do We Mean When We State… OGS – Office of General Services OCIO – Office of the Chief Information Officer DOB – Division of the Budget OFT – Office for Technology ATP – Annual Technology Plan ITP – Intent to Purchase ELA – Enterprise License Agreement Before we move on I would like to make sure everyone understands these acronyms as they will be used throughout this presentation. Does anyone require a further explanation of any of these acronyms? ATP clarification – Is a planning document completed by Executive State agencies CIO and submitted to the OCIO’s office within a given state fiscal year Ex: 05/06 or 06/07. Outlines the agencies technology plans, requirements and purchases. ITP clarification – Is the approval form which needs to be submitted and approved by the Office for Technology for all technology purchases of software over $20,000.00 and Hardware related purchases over $50,000.00. The EXCEPTION to this rule being the purchase of PC’s and Printers due to the current Aggregate Purchasing initiatives which we will be discussing later in the presentation.Before we move on I would like to make sure everyone understands these acronyms as they will be used throughout this presentation. Does anyone require a further explanation of any of these acronyms? ATP clarification – Is a planning document completed by Executive State agencies CIO and submitted to the OCIO’s office within a given state fiscal year Ex: 05/06 or 06/07. Outlines the agencies technology plans, requirements and purchases. ITP clarification – Is the approval form which needs to be submitted and approved by the Office for Technology for all technology purchases of software over $20,000.00 and Hardware related purchases over $50,000.00. The EXCEPTION to this rule being the purchase of PC’s and Printers due to the current Aggregate Purchasing initiatives which we will be discussing later in the presentation.

5. Who We Are And What We Do: OGS PSG’s mission includes developing and administrating contracts for commodities and services that aid authorized users in achieving their own missions. With the recent implementation of the Office of the Chief Information Officer’s Annual Technology Plan (ATP) it is now easier to determine the contract requirements, quantities and buying cycles of NYS agencies in advance of the need for contracts to support purchases.Who We Are And What We Do: OGS PSG’s mission includes developing and administrating contracts for commodities and services that aid authorized users in achieving their own missions. With the recent implementation of the Office of the Chief Information Officer’s Annual Technology Plan (ATP) it is now easier to determine the contract requirements, quantities and buying cycles of NYS agencies in advance of the need for contracts to support purchases.

6. Centralized statewide contracting decentralized agency purchasing Many apparent similarities and synergies, fewer standards and guidelines Extremely large aggregated volumes with comparatively small agency volumes Recognizing There Was A Need For Change, Technology Purchases Were Evaluated To See Where Saving Could Be Realized: Agencies’ IT purchases were independent and had no standardization though there were apparent similarities and synergy potential. By not sharing information and working together - our bargaining power and leverage had been lost. Collectively NYS agencies and authorized contract users are a major purchaser of Technology. If NYS were a corporation we would be a Fortune 10 in annual budget & spending. Our IT spending is within the top 4 of all states (top 4 include, NY, Texas, California and Florida). Budgets are shrinking annually and everyone has to find ways to save money. Timing and planning were necessary and there needed to be authority to administer it.Recognizing There Was A Need For Change, Technology Purchases Were Evaluated To See Where Saving Could Be Realized: Agencies’ IT purchases were independent and had no standardization though there were apparent similarities and synergy potential. By not sharing information and working together - our bargaining power and leverage had been lost. Collectively NYS agencies and authorized contract users are a major purchaser of Technology. If NYS were a corporation we would be a Fortune 10 in annual budget & spending. Our IT spending is within the top 4 of all states (top 4 include, NY, Texas, California and Florida). Budgets are shrinking annually and everyone has to find ways to save money. Timing and planning were necessary and there needed to be authority to administer it.

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8. Time For a Change (continued) In March 2005, OGS PSG completed the initial planning and staffing of a new Aggregated Buy Team that was proposed in our FY 05/06 budget. OFT continues to actively review, coordinate and share the ATP and Intent To Purchase (ITP) information. OGS and OCIO work collaboratively to identify and plan aggregate purchase opportunities.

9. Information Is Power Information Is Power: The formal ATP process provides a wealth of information such as: what technology, agencies are going to acquire and when. If the technology purchases are similar enough, cooperative purchasing can be planned. This information is reviewed by OCIO, OFT, DOB and OGS. Though existing technology contracts provide competitive pricing for small purchases and terms and processes that allow the big purchasers to leverage their volumes. . . Aggregate purchases with estimated quantities and specified time periods help contractors “sharpen their pencils” because they themselves can plan and leverage their suppliers. Forms have been designed to assist agencies with their technology planning process. These forms uniformly categorize products and services into general categories and this information is accumulated for all agencies and shared. Information Is Power: The formal ATP process provides a wealth of information such as: what technology, agencies are going to acquire and when. If the technology purchases are similar enough, cooperative purchasing can be planned. This information is reviewed by OCIO, OFT, DOB and OGS. Though existing technology contracts provide competitive pricing for small purchases and terms and processes that allow the big purchasers to leverage their volumes. . . Aggregate purchases with estimated quantities and specified time periods help contractors “sharpen their pencils” because they themselves can plan and leverage their suppliers. Forms have been designed to assist agencies with their technology planning process. These forms uniformly categorize products and services into general categories and this information is accumulated for all agencies and shared.

10. Applying The Knowledge Gained From ATPs: OGS Works together with OCIO/OFT/DOB: Reviews consolidated ATP information Identifies opportunities for aggregate purchasing power from ITPs reviewed by OFT Coordinate with OCIO/OFT on aggregate-buy initiatives Work with OCIO Technical Committee to assist with technical expertise & specifications Negotiate with contractors Administers aggregate purchases and Enterprise License Agreements (ELA) Applying The Knowledge Gained From ATPs: Through continued interaction with OCIO/OFT/DOB, OGS reviews consolidated ATP information and receives information from OFT obtained through ITPs. The information obtained from the ATPs and ITPs identify opportunities, aka the “low hanging fruit” for aggregate purchases and software enterprise license agreements (ELA). OGS colaborates with OCIO/OFT on aggregate purchase initiatives. Working with OCIO Technical Committee to assist with technical expertise & specifications. OGS issues Request for Quotes (RFQ) for aggregate purchases and negotiate Enterprise Licensing Agreements with contractors. OGS administers aggregate purchases and ELAs.Applying The Knowledge Gained From ATPs: Through continued interaction with OCIO/OFT/DOB, OGS reviews consolidated ATP information and receives information from OFT obtained through ITPs. The information obtained from the ATPs and ITPs identify opportunities, aka the “low hanging fruit” for aggregate purchases and software enterprise license agreements (ELA). OGS colaborates with OCIO/OFT on aggregate purchase initiatives. Working with OCIO Technical Committee to assist with technical expertise & specifications. OGS issues Request for Quotes (RFQ) for aggregate purchases and negotiate Enterprise Licensing Agreements with contractors. OGS administers aggregate purchases and ELAs.

11. Harvesting The Low Hanging Fruit Hardware: - PCs (thin client, desktop, laptop) February 2005 July 2005 January 2006 - Printers January 2006 Software: - Human services software (ELA) Current and potential areas for aggregate purchases and ELA(s).Current and potential areas for aggregate purchases and ELA(s).

12. A Bountiful Harvest 1st Aggregated PC Purchase – February 2005 Total savings exceeded $15 million 90 day purchase period 4 PC Configurations – Estimate 10,000 Units Business Class PC Workstation Class PC Business Class Laptop Lightweight Laptop 23,250 units actually purchased State = 7,250 NYC = 13,450 Local = 2,550 Average discount from contract price for the PC ($1506 average) was 41.5% representing $625 per unit Machine class specifications are developed by the CIO Technical Committee and are based on current agencies needs and market trends. Standard specifications for all machine classes meet the technical needs of a minimum of 80% of our authorized users. Most of the remaining 20% can be met through allowable options. Each Class awarded to lowest bidder for that class Machine class specifications are developed by the CIO Technical Committee and are based on current agencies needs and market trends. Standard specifications for all machine classes meet the technical needs of a minimum of 80% of our authorized users. Most of the remaining 20% can be met through allowable options. Each Class awarded to lowest bidder for that class

13. 2nd Aggregated PC Purchase – July 2005 Total savings $11 million (9.6m actual; over 1 million pending) 6 month purchase period Included Thin Clients and Unbundled Displays 5 PC Configurations – Estimate 27,200 Units. Average price per desktop PC = $690 Average discount from contract price was 45.7% representing $580 per unit

14. Current Aggregated PC Purchase – January 2006 Projected savings $25 million 14 month purchase. February 1, 2006 through March 31, 2007 5 PC Configurations – Estimate 37,350 Units Includes Thin Clients and unbundled Displays Awarded to two lowest bidders per machine class Average price per desktop PC = $670 Average discount from NYS contract price was 48% representing a savings of $635 per unit. Awarded each class to the two lowest contracts and extended the length of the initiative based on authorized users and contractor input.Awarded each class to the two lowest contracts and extended the length of the initiative based on authorized users and contractor input.

15. A New Initiative: Printers January 2006 Printers Projected savings $1 million Printers – Estimate 7,000 units in 6 categories 13 months timeframe. From February 22, 2006 through March 31, 2007 Minimum 15% discount from existing NYS Contract Price for printers, allowable options and supplies. A New Initiative, Printers: Given the complexity and the variety of printers available we awarded each category to all contractors who met the specification and minimum discount. Users are encouraged to acquire from the lowest price contractor that meets their needs. Requirement for NYS agencies. Any purchase made from this initiative will be at a savings of at least 15% from state contract price. Enhanced competition has enticed contractors to offer additional discounts.A New Initiative, Printers: Given the complexity and the variety of printers available we awarded each category to all contractors who met the specification and minimum discount. Users are encouraged to acquire from the lowest price contractor that meets their needs. Requirement for NYS agencies. Any purchase made from this initiative will be at a savings of at least 15% from state contract price. Enhanced competition has enticed contractors to offer additional discounts.

16. A New Enterprise License Agreement Curam Software ELA: Estimated 1st year savings $3 million Awarded March 16, 2006 Preferred Software for NYS Human Services Application. Expected savings of $16 million over the five year term of the contract. Beginning discount of 71% off the list price of the licenses. 10% of Net license price for New Version Protection and Product Support (current contract price is 15% for each). NYC has also elected to adopt Curam as their preferred Human Services Software.NYC has also elected to adopt Curam as their preferred Human Services Software.

17. Why an ELA? Treat the State of New York and its Authorized Users as a single entity for purposes of purchase transactions Aggregated volume discounts based upon all purchases transacted by the enterprise Transferability of Licenses Ability to negotiate better terms and conditions based upon license volume ELA negotiations often start with an estimated aggregated number of licenses to be purchased across multiple AU’s which will put all users in a higher discount bracket based on the volume. Additional purchases made throughout the term of the ELA will increase the discount even more. Purchase prices are no longer transaction based but are based upon a sliding discount driven by aggregated purchases of the entire Enterprise (NYS Agencies & AU’s). AU’s given the right to transfer unused licenses to another authorized user, saving both users money.ELA negotiations often start with an estimated aggregated number of licenses to be purchased across multiple AU’s which will put all users in a higher discount bracket based on the volume. Additional purchases made throughout the term of the ELA will increase the discount even more. Purchase prices are no longer transaction based but are based upon a sliding discount driven by aggregated purchases of the entire Enterprise (NYS Agencies & AU’s). AU’s given the right to transfer unused licenses to another authorized user, saving both users money.

18. Current Initiatives and Potential Future Initiatives Current Initiatives Gartner and Meta (renegotiate expiring contract) Oracle (ELA) Antivirus (Symantec and McAfee) Potential Future Initiatives Servers Storage LEXIS-NEXIS (renegotiate expiring contract)

19. Is Aggregation Working? Savings have been and are being realized Aggregated IT Purchase Program has received 2 awards: NASPO Cronin Club 2005 Innovation NYSFIRM Best Practices Award Other states have expressed interest Agency and authorized user participation continues to increase.

20. Where Do We Go From Here? Still learning – feedback & dialogue encouraged/needed Continued use of collaborative process to identify additional opportunities for Aggregated IT purchases. Consider ELA and Aggregated pricing Metrics for extensions of existing HW/SW contracts. Potential for expansion to non-technology areas Where Do We Go From Here? Collaboration and cooperation continues with authorized user input/feed back Process continues to evolve and improve Which areas make sense: “bang for buck” technologically and administratively feasible Potential to expand initiative to commodity purchases.Where Do We Go From Here? Collaboration and cooperation continues with authorized user input/feed back Process continues to evolve and improve Which areas make sense: “bang for buck” technologically and administratively feasible Potential to expand initiative to commodity purchases.

21. Aggregate Purchase Initiative Websites Main Page: http://www.ogs.state.ny.us/purchase/ITAggPurchaseMenu.htm PCs: http://www.ogs.state.ny.us/purchase/012006PCPurchase.htm Printers: http://www.ogs.state.ny.us/purchase/012006PrinterInitiative.htm Please refer to your handout for addresses to OGS PSG Aggregate Initiative websites.Please refer to your handout for addresses to OGS PSG Aggregate Initiative websites.

22. OGS PSG Aggregate Buy Team Members Dawn Curley (518) 473-2045 Team Leader dawn.curley@ogs.state.ny.us Kelly Belenchia (518) 473-1959 Purchasing Officer kelly.belenchia@ogs.state.ny.us PC’s and Curam ELA Kylesha Davis (518) 474-8919 Purchasing Officer kylesha.davis@ogs.state.ny.us Oracle ELA Melissa Gretten (518) 473-2010 Purchasing Officer melissa.gretten@ogs.state.ny.us Printers Introduce Kylesha and Melissa.Introduce Kylesha and Melissa.

23. $55,000,000.00 1st PC Buy: Actual savings $15 million 2nd PC Buy: Savings have exceeded $11 million 3rd PC Buy: Anticipated savings of $25 million Printer Buy: Anticipated savings of $1 million Curam ELA: Anticipated savings in the first year $3 million Note: Savings for the PC and Printer buys are savings from already reduced NYS contract prices. If you take anything away from this presentation – We hope it is – All state and local government entities are able to participate. Your agency participation will increase all of our aggregated purchasing volume and allow us to leverage our purchasing volume to achieve additional savings. The coordinated effort of the Aggregate IT Purchasing Program is working well and saving taxpayers millions of dollars. NOTE: If asked, we can state that over ½ of the 55 million has already been realized.If you take anything away from this presentation – We hope it is – All state and local government entities are able to participate. Your agency participation will increase all of our aggregated purchasing volume and allow us to leverage our purchasing volume to achieve additional savings. The coordinated effort of the Aggregate IT Purchasing Program is working well and saving taxpayers millions of dollars. NOTE: If asked, we can state that over ½ of the 55 million has already been realized.

24. Questions? ?