Dan MyersComputer Acquisition Analyst

Selling vs. Buying

• Vendors will attempt to sell you something when they think you are not armed with knowledge.

• “You need this computer…”

Selling vs. Buying

• Customers buy something when they are armed with knowledge.

• “I need this computer…”

Where To Get The Knowledge

• The Office of Information Technology (OIT) Computer Standards

• PC standards• Enterprise IT Contracting (EITC)

• Establish contracts• Third Party Information Suppliers (Gartner)

• Magic Quadrant

Enterprise Buy IT Equipment ContractsThe State of Ohio has negotiated pricing from Dell, HP and Lenovo for product offerings that support the state standards for PCs• Standard Business Class Desktop

• This category offers the capacity and resources needed to do the job for the majority of the state government workforce.

• Specialty Use Class Desktop• This category offers significant capacity and the expandability required to meet

demanding, high-end computing requirements. • Standard Mobile 14” Notebook

• This category is for someone who works outside the traditional office environment 80 percent of the time.

• Specialty Mobile 15” Notebook• This category offers the significant capacity required to meet demanding and very

high-end computing requirements.• Standard Ultrabook Notebook

• This category refers to a lightweight notebook with no internal optical drives and used primarily by mobile workers.

• Standard LCD Specifications

Enterprise Buy IT Equipment Contracts - continued

Dell Marketing LP (STS #534278)Hewlett-Packard Company (STS #534275)Lenovo Inc. (STS #534482)

• Multiple Resellers (including Certified Ohio MBEs)

For More Information

http://das.ohio.gov/Divisions/InformationTechnology/StatewideEnterpriseBuys.aspx

Sample of State of Ohio Enterprise Buys

STS Pricing Recommendations• Whenever Possible Seek Multiple Competitive Quotes• Remember STS Prices are Ceiling Prices• Expect Some Level of Discounting on Significant Purchases• Verify that Quoted Prices are at or Below STS price

Contact Enterprise IT Contracting (EITC) for Assistance Resolving Issues and Negotiating Additional Discounts

Keys to Success

• Ensure you choose the lowest price between available contracts

• Verify that any selected products meet applicable standards and/or policies

• Think Big – Larger volumes leverage better pricing• Begin With The End In Mind – Strategize purchases

to meet long term goals of the enterprise

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Deliverable Based IT Services (DBITS)

Program OverviewPresented to the ICPC Summit Attendees

Wednesday, September 23, 2015

What we are doing?Pre-qualifying pools of vendors to

address 6 different Technology Categories for deliverable-based

solutions.

1. Information Technology Assessment, Planning, and Solicitation Assistance

2. Project Management

3. Application Development and Maintenance Transition Planning

4. Independent Verification and Validation (IV&V) and Quality Assurance

5. Technology Upgrade/Migration and Transformation

6. Business Intelligence and Data Warehouse

Proactive contracting method of qualification to reduce extensive number of

non-compete State Term Schedule contracts.

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Why are we doing this?• Supports MBE Strategy and provides

opportunity to engage more EDGE, MBE and Ohio based companies.

• Proactive contracting method of qualification to reduce extensive number of non-compete State Term Schedule contracts.

• Migrates away from state term schedule as a primary method for obtaining for deliverable based solutions.

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• Aligns with IT Procurement re-engineering effort by supporting a quicker time to market for small and medium projects.

• Creates and manages vendor capacity within a common enterprise established model.

• Creates labor pools for areas of deliverable-based projects that are easier for agencies to ensure alignment with enterprise architecture and project standards.

• Creates repeatable method for tracking and reconciling agency project spend and project scope to planning process.

What has already occurred?• Conducted vendor meetings during the second week of

December to present the new procurement approach and to receive comments, concerns and questions.

Monday, December 8th

94 people attended 74 business partners represented

Friday, December 12th

118 people attended 89 business partners represented

Post Session Submissions

15 Comments or Questions Submitted 8 different business partners

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What has already occurred?• Released draft RFP on December 30th for review and comment to vendors

• Notified 1752 vendors• Posted on State Procurement Website• Approximately 90 submissions from 38 unique vendors

• Released draft RFP on December 30th for review and comment to State agencies• Emailed to 38 Agency Contacts (Multi-Agency CIO Advisory Council)• Written feedback from 4 agencies as of 1/21/15

• Sought State agency representatives to participate on the proposal evaluation team.

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How did we do this?Multiple Award Contract

• Two RFPs issued• MBE Set-aside • Open Market with sheltered MBE set-aside

opportunity • Both RFPs issued the same day.• Vendors considered and prequalified for up to

six categories.• Co-op language included – DAS will not be

directly involved with the solicitation and award related to co-op contract use.

• The initial term of the contract was from award through the end of fiscal year 2015 with up to three additional two-year biennium terms –ending June 30, 2021.

• Periodically re-release for purposes of adding to DBITS contractors and/or technology categories.

Evaluation

• Evaluation team included representatives from the Line of Business Agencies.

• No evaluation of cost to pre-qualify companies prior to award.

• Excessive cost will be addressed during the SOW solicitation process.

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How will this work for State Agencies?• The Statement of Work (SOW) Solicitation process will provide a collaborative

opportunity for OIT and Agency to review.

• Each SOW received will be reviewed by OIT SME areas such as SIM, PSC, ISD as appropriate.

• Each SOW will include specific details pertaining to the project needs. Including but not limited to qualification and experience requirements and other agency-specific requirements.

• OIT will issue SOW solicitations and awards with Agency engagement.

• OIT will work with Agency to determine which pool receives the SOW, and/or whether an RFP or alternative contracting method should be used instead.

• Cost will be evaluated/considered in the Statement of Work Solicitation process. 7

Intended Use• Small to medium size projects with a defined start and end date and

capacity to define deliverables.• Through project entry in ALPS, and communication with EITC staff

liaisons about future procurements, projects can be identified as a potential DBITS candidate.

• Agencies are advised to contact EITC when considering use of the DBITS Contract.

• Agencies maybe asked to complete a Pre-procurement Information Form to assist with determining appropriate sourcing strategies.

• Not every project is a DBITS candidate, but the process of scoping and planning is valuable regardless of final sourcing strategy.

• DBITS is a preferred method for deliverable based services overseeking quotes from STS vendors.

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Advantages of DBITS Contract• Using DBITS is intended to streamline the

competitive procurement process.• Standard RFP’s are usually on the street a minimum

of 4 weeks.• DBITS SOW Solicitation can be issued for a shorter

time period depending on the size and complexity.• Evaluation timeframe is driven by agency evaluators.

• Contractors have already been prequalified by category.

• Terms and Conditions are already established as part of the base contract. 9

DBITS Project Characteristics• Well-defined statement of work where the key deliverables

and full functionality of the project can be produced within one technology category for a fixed price.

• Defined statement of work within size, scope and complexity guidelines for DBITS contracts.

• Statement of Work is project-based, with defined start and end dates, defined deliverables and does not encompass operations activities.

• DBITS project does not include provisioning of technology hardware, software, managed services or staff augmentation services.

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DBITS RFP ProcessMBE and OPEN MARKET RFPs• Issued 2/18/15 • Proposals Submitted on 3/30/15

MBE Set-Aside DBITS RFP• 39 on-time proposal responses• 1 late response submitted

Open Market DBITS RFP• 79 on-time proposal responses • 1 late response submitted

Award by Category

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The chart below provides the number of prequalified contractors by category.

CategoryMBE

Open Market

Information Technology Assessment, Planning and Solicitation Assistance

17 40

Project Management 24 53Applications Development and Maintenance Transition Planning

24 52

Independent Verification and Validation and Quality Assurance

18 31

Technology Upgrade/Migration and Transformation 23 39Business Intelligence and Data Warehouse 20 26

What Companies are Pre-Qualified?MBE Set-aside• http://procure.ohio.gov/OrigContract/0A1139_OC.pdf

Open Market• http://procure.ohio.gov/ContractForm/0A1147_DBITS%20Con

tractor%20Prequalifications.pdf

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DBITS Current StateEnterprise IT Contracting continues to develop a DBITS Implementation Plan and to roll-out the contract. This effort will result in deliverables and activities such as the following:

• Graphical and textual representation of the process flow associated with using the contract

• Updated SOW Template• Pilot DBITS Opportunities• Agency Training• Pre-Qualified Contractor Training

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QUESTIONS?

Email Questions: DBITS@das.ohio.gov

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IT Staff Augmentation Services Contract

Program OverviewPresented to the ICPC Summit Attendees

Wednesday, September 23, 2015

Agenda

• Contract Purpose• Contract Overview• CAI’s Managed Service Provider (MSP) Solution• Roles and Responsibilities• Contacting CAI • Replacement Contract Update• Questions?

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Purpose: To create a contract that is …

• Faster• Easier to use• Equal or better quality• More standardized across all vendors• Friendlier to MBE/EDGE/small business• Simpler to pay• More measurable and accountable

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Contract Overview• Contract Based on Competitively Awarded Pennsylvania Contract

• Participating Addendum Executed by DAS• Ohio Specific Terms & Conditions • Ohio’s Rates based on Columbus Area Market Conditions• Executive Order 2011-12K Standard Affirmation and Disclosure Form

• Initially Included Twenty-Seven Job Titles to Cover the State's IT Needs

• Added Eleven Additional Titles during Contract Term

• Skill Matrix based on Technologies & Resource Supply and Demand• Legacy, Core, and Emerging

• Rate Card - Fixed Rates for Each Job Title, Level and Skill Matrix Category

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Contract Overview (continued)

• Position Descriptions1. Architect 15. Senior Database Architect2. Business Analyst 16. Senior Program Manager3. CADD/GIS Administrator 17. Service Desk4. Data Entry Operator 18. Software Process Engineer5. Database Administrator 19. System Administrator6. Functional Architect 20. System Specialist7. Help Desk Analyst 12. Team Lead8. Intern 22. Technical Architecture Specialist9. Product Specialist 23. Technical Writer10. Program Manager 24. Telecom Engineer11. Programmer 25. Tester12. Quality Assurance Specialist 26. Video Conference Specialist13. Senior Architect 27. Voice/Data Engineer14. Senior Business Subject Matter Expert

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Contract Overview (continued)

• Position Descriptions Added During Contract Term

Amendment #2Mobile SpecialistTechnical Specialist

Amendment #4Administrator LAN/WANData ArchitectIT Business Systems AnalystIT Security AnalystIT Security SpecialistNetwork ArchitectNetwork EngineerTrainer Technical

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Contract Overview (continued)• Position Descriptions

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Contract Overview (continued)Skill Matrix Categories

Legacy Low Technical

Skills

Mature Technologies

High Labor Supply

Low Labor Demand

Core Mid Technical

Skills

Average Technology Maturity

Average Labor Supply

Average Labor Demand

Emerging High Technical

Skills

New Technologies

Low Labor Supply

High Labor Demand

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CAI AM coordinates interview and on-boarding process

Agency creates the requirement in the Peoplefluent system

CAI AM validates the requirement for completeness and submits to vendor network

Vendors submit candidates

CAI AM qualifies candidates and forwards three qualified candidates to Agency within four business days of releaseCandidate is engaged,

begins assignment, and submits timesheets each week

CAI Account Manager (AM) consults with Agency and qualifies need

Agency reviews candidates and selects interviewees

CAI Ohio Vendors

WorkflowCAI’s MSP SOLUTION

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Service Offering Overview Enterprise-wide program based on PA’s IT Staff Aug. Contract

Thirty-Seven job titles and descriptions tailored to Ohio’s specific IT needs

Skill categories that match the State’s technology demands

One rate card based on latest market conditions in the Columbus area

Process managed completely by CAI

Allows you to focus on strategic initiatives rather than administrative tasks

For instance, no longer have to send POs to several different vendors

Web-based Vendor Management System (Peoplefluent)

Can be accessed anytime, anywhere

Visibility into requirement, candidate, and placement information

CAI uses it to communicate with State and vendor community users

Service Level Agreements that ensure Speed, Quality, and Accuracy

Hold CAI accountable if performance goals are not met

CAI’s MSP SOLUTION

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Service Level Agreements at a Glance

SLA TARGET CONTRACT to DATE PERFORMANCE

Normal Submittal Response Time 92% or higher 93.48%

Normal Round 1 Fill Rate 80% or higher 87.02%

Attrition 5% or lower 1.95%

Performance Removal 3% or lower 2.54%

Normal Resume Submittal Response Time Provide Agency hiring managers with three qualified candidates within four business days

of releasing competitive requirements to the vendor network at least 92% of the time

Normal Round 1 Fill Rate At least 80% of the competitive requirements to be filled by one of the candidates

submitted to the Agency hiring managers in the first round

Attrition Rate Less than 5% of the candidates engaged against competitive requirements to resign from

their assignment prior to the scheduled end date

Performance Removal CAI’s goal is for less than 3% of the candidates engaged against competitive requirements

to be terminated by the Agency prior to the scheduled end date

CAI’s MSP SOLUTION

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• CAI is tasked with managing the process from releasing the requirement to invoicing the Agency

• State Consultant• Meets with Agencies to understand initiatives and helps build job requirements

• Vendor Coordinator• Manages subcontractor agreements, insurances, and MBE/EDGE certifications• Develops customized training manuals and training sessions• Creates and maintains web portal with contract information and tips for success

• Response Manager• Releases each requirement to the open vendor network• Receives, reviews, and screens candidates to validate skills• Supplies three qualified candidates to hiring manager within four business days

• Operations Administrator• Manages timesheets, purchase orders, and invoices• Operates help desk to answer agency and vendor questions

CAIROLES AND RESPONSIBILITIES

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Vendor Network• Able to join at anytime

• Open enrollment• Able to join all CAI-managed MSP contracts

• Basic criteria for joining the network• Insurance• Subcontractor agreement between CAI and the network• Other State-specific forms

• Able to find candidates with wide variety of skills and experience• Legacy, Core, and Emerging technologies

• Enrollment Types• MBE – Ohio Certified Minority Business Enterprise (MBE)• EDGE - Encouraging Diversity, Growth and Equity (EDGE) • MBE/EDGE• Open Market

ROLES AND RESPONSIBILITIES

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Vendor Network• Currently 199 Active Suppliers in the Network (as of 8/31/15)

• 121 are Ohio-based• 71 are MBE/EDGE Certified

• 33 are both MBE and EDGE• 28 are MBEs• 10 are EDGEs

• Able to join all CAI-managed MSP contracts

• Ohio-based suppliers enrolled in the network have been successful across other MSP programs ($4M+ as of 8/31/15)• Arkansas: $100,632.00• Delaware: $8,297.64• Iowa: $855,899.91• New Jersey: $56,125.44• Pennsylvania: $1,398,797.28• Virginia: $1,580,961.53

ROLES AND RESPONSIBILITIES

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• Consults with CAI to craft a complete requirement for exact needs

• Determines the best classification and experience level

• Calculates cost and obtains “Release and Permit”/PO approvals

• Makes sure Peoplefluent requirement is as detailed as possible

• Provides a complete list of tasks and responsibilities

• Lists all required/desired skills and corresponding experience levels

• Notes work week specifics (days per week, hours per week)

• Provides the exact work location and specifies any travel requirements

• Includes any out-of pocket expenses that the candidate might incur

AgencyROLES AND RESPONSIBILITIES

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• Conducts interviews within two days of receiving the candidates

• Provides CAI with interview dates/times even before the req. is released

• Returns candidate feedback to CAI within one day of interview

• Allows candidate to start as soon as possible

• The labor market is tight, and candidates aren’t available for long

• Prepares for candidate’s first day

• Procures space and equipment

• Conducts a brief orientation session

• Manages candidate’s daily tasks

• Ensures candidates meet deadlines and performance objectives

• Alerts CAI if any issues arise

Agency (continued)ROLES AND RESPONSIBILITIES

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• Uses the Peoplefluent system to complete candidate evaluations

• Evaluations can be done at any time

• Automated Peoplefluent emails are sent out after 30 days, 180 days, and one year

• Evaluations remain in Peoplefluent for future reference

• Notifies CAI if ending candidate’s assignment at scheduled completion or if wishing to extend the assignment

• If choosing to extend, should notify CAI and start procuring funds and approval 30 days before the scheduled end date

• If choosing to end the assignment, should notify CAI, approve final timesheet, and submit final Peoplefluent evaluation

Agency (continued)

ROLES AND RESPONSIBILITIES

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CAI Team Contact Information Lori Wildes, MSP Account Manager

Phone: 614-940-0569

Email: lori_wildes@compaid.com

Ron Vogel, MSP Account Manager Phone: 614-940-0572

Email: ronald_vogel@compaid.com

Help Desk Phone: 800-635-5138

Fax: 717-651-3202

Email: MSP_VendorMgmt@compaid.com

CAI Website

http://ohio.compaid.com/

Please Note: Questions regarding specific opportunities and candidates should be directed to CAI’s Account Management Team

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Improving IT Staff Augmentation

• Validate market rate for the role that we want out of the MSP

• Ability to submit both candidates and rates (i.e., the listed rate is a Not-to -Exceed dollar value)

• Agencies: preferred use, with more specific exception processes

• Option to use the service for non-IT staff augmentation purposes if determined to have merit

• Include MSP Rate for 1st year and separate MSP Rate for Renewals as part of evaluation process

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Current State Overview

• The current contract with CAI has been extended to 12/31/15 with an option to extend for an additional 6 months, if necessary for transition and implementation

• RFP for a replacement contract was released on May 1, 2015

• Proposals submitted on June 12, 2015

• Proposals are currently under evaluation

• Target Award Date – September 2015

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Current State Overview

• On Time Proposals from the following offerors:

• Acro Services Corporation• Bartech Group, Inc.• Computer Aid Inc.• Covendis• Geometric Results, Inc.• Knowledge Services• OST• Tailored Management• Tapfin

OIT Enterprise IT Contracting Contact Information

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Jackie Flemmings (Primary Contact for IT Staff Augmentation Contract)Enterprise IT ContractingDepartment of Administrative ServicesOffice of Information TechnologyPhone 614-644-7972Jackie.flemmings@das.ohio.gov

Curtis Brooks, CTPEIT Procurement SupervisorDepartment of Administrative ServicesOffice of Information TechnologyEnterprise IT ContractingCategory Management614-752-9689 Curtis.brooks@das.ohio.gov

Questions?

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