january 27, 2009 9:00 am to noon

1

January 27, 2009

9:00 am to Noon

2

PPC AGENDA

1. BMWBO – Gayle Nuppnau2. Materials - Walt Quade3. Correctional Industries – Anthony Miller 4. Services – Roxana Dietz5. BSSO – Scott Pepperman6. SRM – Cheryl Kleeman7. Procurement Handbook – Cheryl Kleeman8. Legal – Chuck Anderson9. Green Procurement – Joan Kraft10. Sole Source Web-site – Sue Plecker11. Training – Jeff Mandel12. Finance Transformation – Jeff Mandel

AppendicesAppendix A – Procure to PayAppendix B – Education Curriculum Q & AAppendix C – Phased Implementation for Non-POAppendix D - Grainger Appendix E - BI Old Workbook vs. New workbook Comparison

3

RFP/RFQ Cover Letter

4

RFP/RFQ Cover Letter

http://www.dgsweb.state.pa.us/Comod/CurrentForms/BMWBOCoverLetter.doc

5

Procurement HandbookProcurement Handbook

Part 1 Chapter 3 Part 1 Chapter 3

Responsibilities Responsibilities

(4 e) Notification of contract commitments

- Contract fully execution

- 10 days BMWBO must be notified

- Proposed changes to contractual DB participation must be reported to BMWBO

Procurement HandbookProcurement Handbook

6

Less than $50,000 – Program does not apply

More than $50,000, but less than $250,000 – Using agency makes responsiveness determination

More than $250,000 – BMWBO makes responsiveness determination

NOTE: Amounts include any renewals

STD-168 – MBE/WBE Subcontractor and Supplier Solicitation and Commitment Form

STD-168

7

Determining Responsiveness

Presumed responsive if minimum participation levels are met (5% MBE 3%WBE)

If MPLs are not met, an evaluation must be conducted

- Is STD-168 included

- Properly completed

- Has contractor solicited both MBEs and WBEs for all work which they intend to subcontract, and for all supplies/materials required for the job?

Has Contractor Certified That No Subcontracting Opportunities Exist, and No Materials Will Be Required (Or Are Already Available)?

STD-168

8

Examples of Non-Responsive Bid Submissions

STD-168 not submitted, or left blank

Contractor solicited only MBE or WBE firms (not both), and did not explain this deficiency

Contractor only solicited MBE/WBE firms not currently certified by DGS

Contractor received quotes from MBE/WBE subcontractors or suppliers, but did not provide an explanation for not committing to them

STD-168

9

Non-Responsive Options

Go to next low bidder

Rebid

Override

- Part 1, Chapter 20

STD-168

10

STD 168

11

STD 168

12

Under Criteria for Selection, section III-4, if any Offeror is non-selected based on the 70% rule, DB must be rescored

– Email

• Narrative

– RRP/RFQ Number

– Name/s of Offerors

– Mr. Stephen Nedimyer, [email protected]

Scoring Update

13

Small Fuel Delivery Program:

• ITQ Contract for deliveries less than 5000 gal.– This is a contract of convenience.– Qualify suppliers by county.

• Agencies follow procurement procedures based on low dollar amount.

• Agencies obtain Small Procurement Policy and obtain quotes from qualified suppliers in county, select best price.

– Invoicing• Quoted prices firm, less potential for errors.• Mandated utility card use for orders under $5000 should remove

bulk of past-due payment issues.

Materials Contract Updates

14

Road Salt

• Many Agencies have depended on Penndot for Salt for their locations in the past.

• Penn Dot has stopped supplying this service in many of their districts.

• Please make sure your Agency sends BOP a requirement for the upcoming 2009/2010 Winter Season to assure that you have a supply available.

Please send requirement to:

Joel Shiffler 717-346-8179

[email protected]

15

Contract Update

Contract Number

Contract

Title

Status Commodity Manager

Material

440003137 Medium Duty Trucks Awarded Craig Wolford Work Trucks

4400003207 Road patching Equipment

Awarded Craig Wolford Kettles, patchers, Reheaters

9905-15 Aluminum Coil Stock To be bid Joel Shiffler License Plate Stock

6810-02 Road Salt Being being prepared Joel Shiffler Road Salt

4400001174 Floor Polishers Awarded Mary Randolph Floor Polishers and Vacuums

4400001741 Wheelchairs Bids being Evaluated Mary Randolph Wheelchairs

3930-01 Forklifts In award process Craig Wolford Lifts

7350-05 Commercial Food Equipment

In award process Mary Randolph Commercial Food Equipment

New Police Lighting and Accessories

In award process Craig Wolford Accessories for Police

16

Contract Update

Contract Number

Contract

Title


Material

5610-49 Cement Awarded Joel Shiffler Cement

5684-02 Corrugated metal Pipe

Awarded Joel Shiffler Pipe

5610-36 Bituminous Plant Mix

Award in progress

Joel Shiffler Plant Mix

5710-01 Bituminous Liquid patch

Awarded Joel Shiffler Liquid Plant Mix

New Frozen Vegetables, Turkey, Bu

Bid being Prepared

Joe Gurzenda Various Food Items

6505-99 Pharmaceuticals Bid being prepared

Joe Gurzenda Drugs

NEW Fuel Management Award in progress

Joel Shiffler Fuel Additives

4400002702 Energy Mgt Services

ITQ Joel Shiffler Electricity, natural gas

9140-01 Heating Oil #2 Awarded Joel Shiffler Oil

9130-03 Unleaded gas Awarded Joel Shiffler Gas

17

Contract Update

Contract Number

Contract

Title


Material

9140-08 Liquid Fuel Awarded Joel Shiffler Fuel, Large Volume

9140-02 Heating Oil #4 Awarded Joel Shiffler #4 Heating Oil

4400003333 Waste Oil Awarded Joel Shiffler Waste Heating Oil

440003238 Carpet Awarded JP Duvall Carpet

8415-01 Gloves Awarded JP Duvall Gloves

4400002988 VWR MISC LAB Equip

Awarded Jim Pinci General lab Equip not covered by 4600012524

7105-05 Office Furniture Being Bid Brian Reinoehl Office Furniture

4600013480 Janitorial Awarded Jim Pinci Consumables and paper Product

18

Pennsylvania Correctional Industries

Toll-free: 877-ORDER-CI

On-line: www.pci.state.pa.us

Anthony Miller, Director

“Teaching Inmates to Work in Pennsylvania”

Pennsylvania Correctional Industries

19

Service Contract Updates

20

Service Contract Updates

21

IT/ITQ UPDATE

Phase 1 – Mid to Late February 2009• Performed supplier demo/testing of ITQ Supplier module on December 31,

2008• Currently, finalizing SRM user authentication process with IES• Master IT Services ITQ will be published• Suppliers begin preparing online qualification proposals Phase 2 – Mid March to Late April 2009• Electronic receipt of supplier qualification proposals• Supplier qualification proposals are evaluated and results posted• Begin creating contracts in SRMPhase 3 – May 1, 2009• Agency view of qualified suppliers and their Company Profile• Company Profile will include existing functionality in current ITQ website

plus items such as: Financials, Rate Card and Agency Performance• Agencies begin solicitations

Status of Enterprise ITQ Web-Site Development

22

IT/ITQ UPDATE

TASK START COMPLETE

Obtain Form Approval for Contract 12/08 01/09Hold Supplier Info Sessions on New ITQ 02/09 03/09ITQ Publication 03/09 Vendor Qualification Process 02/09New ITQ Procurements can begin to be posted 04/01/09 Deadline for work under Old ITQ 06/30/09New ITQ Contract Begins 07/01/09

ITQ Timeline

23

Dell purchase of ASAP

• 01/09/2009: Assignment letter received• 01/09/2009: ASAP started sending assignment letters out to

agencies• 01/20/2009: Letter sent to all agencies to continue business as

usual under current contract• Next Steps:

– DGS will establish new contract and submit for signatures– DGS & IES will test new web site and punch-out– Once the new contract approved DGS will send out instructions to

agencies. This will entail:• Agencies writing new POs under new contract to replace POs under old

contract• Canceling any old POs

• Address Service Issues

Dell/ASAP Contract

24

Delegation Request

• Delegation Request– Method of Procurement

• Added RFQ for IT-ITQ

• Delegation Request Instructions– Expanded Roles & Responsibilities

25

Notice of Forthcoming Procurements

Notice of Forthcoming Procurements

• Forward the “Notice of Forthcoming Procurements” for upcoming solicitations which will:– Exceed the dollar thresholds as established in the Procurement Handbook, Part 1, Chapter

7 Thresholds and Delegations and OA/OIT Directives to DGS/BOP. – The notice should be submitted at least 12 months, before issuance of a solicitation

(IFB/RFP/RFQ against the IT/ITQ).

• DGS/BOP may—– Recommend the Agency submit a delegation request.– As the central procurement organization, lead or provide guidance and consultation on

the procurement;– Consider the circumstances of the individual procurement, such as the complexity,

availability, and urgency, when establishing the solicitation response time.

• In the near future DGS/ BOP will be posting pertinent information from the Notice of Forthcoming Procurements on eMarketplace in order to:

– Increase competition– Broaden industry participation– Assist small disadvantaged business concerns, enterprise zone, and women-owed and

minority-owned small business concerns in obtaining information on upcoming procurements.

26

BSSO

27

BSSO

28

BSSO

29

SRM – BI Reports

Business Warehouse (BW)

is now called

Business Intelligence (BI)

Effective December 15, 2008

30

SRM – BI Reports

31

SRM – BI Reports

• Data Target: Procurement reports data now includes detailed information that previously was gotten via jump queries

• Examples: PO detailPO numberLine itemMWBE indicators

• Replacement of old reports– Reviewed usage statistics for existing workbooks – Reviewed BW change requests

• Using new data target made determination on which workbooks needed to be recreated – Consolidated many workbooks into one which provides all data

• Old workbook vs. new workbook comparisons are in the appendix

Overview of Changes

32

SRM – BI Reports

• Chose workbooks to recreate based upon usage statistics in 2008:

33

SRM – BI Reports

• Consolidation of reporting roles– Before: Five procurement roles– Now: One procurement role– New Role: YMW:SRM,

Procurement Reporting• Subfolders for specific kinds of

reports• Most new reports found in

Purchase Orders and Contract subfolders

• SRM Only reporting will be labeled as such (within the PO folder)

34

SRM – BI Reports

• User Impact:– All users with items saved as FAVORITES will

have to delete and recreate them

– Users will have one role mapped to them instead of many

– Users will be able to drill to detail without having to jump to another query

– Less confusion on which workbook will provide the answer you are looking for

– The new workbooks have less restrictions which gives users more flexibility

35

New BI Reports

Training on New Reports• Classes available as of

January 20, 2009• Visit the

Training Center’s Community Calendar on the DGS Website for dates

Sign up via E-LMS• DGS Training website

provides– Link to E-LMS

– Guide to use of E-LMS

36

SRM – BI Reports

• A failure on data extraction for Global Spend occurred

• The affected reports are:

– Top 25 Suppliers and Categories

– Invoice Values

– Global Spend Document Level Details

• The data contained in the Global Spend workbooks is as of January 15, 2009 and no later

• Anticipated fix time: Mid-February

• Updates will be forthcoming

Technical Difficulty . . . .Technical Difficulty . . . .

A Failure Has OccurredA Failure Has Occurred

37

Supplier Enablement

ERS – Current Suppliers• Todd Heller, LLC – Paint (PennDot)• Ennis Paint Corp – Paint (PennDot)• Flor Dri Supply Co – Calcium Chloride (DGS)• Greenwood Manufacturing – Corrugated Cartons (DGS)• Larry’s Lumber & Supply – Rock Salt (DGS)

ERS – Pilot Activity• Initial go-live September 10th• Approximately 15 to 20 orders created, receipted and

payments processed to date• Increase in activity: DOT paint season to begin mid-February

ERS – Program Expansion• Tobacco Contract• PIBH Contract

38

Supplier Enablement

SRM Punch-outs:

Staples– Research conducted on current StaplesLink

functionality• Order status• Order acknowledgement• On-line returns• Personal shopping lists• Personalized stamps

– Results presented at 12/10/08 Procurement Connection Group meeting

– Group provided feedback– Outcome: DGS will not pursue punch-out at this time

39

Supplier Enablement

Email to Cheryl [email protected]

Deadline for submission: Tuesday, February 17, 2009

SRM Punch-outs:

MeadWestvaco– In development process– 1 or 2 agencies to pilot (L&I & ?)– Information needed from agencies:

• MRP: Agencies currently running MRP must provide a list showing the material master for each item

• Agency Logo Artwork – Refer to: Commonwealth Style Guide

– MeadWestvaco graphic requirements (provided)

40

Supplier Enablement

MeadWestvaco graphic requirements

41

Supplier Enablement

MeadWestvaco graphic requirements continued

42

SRM

Issue• Bid submission error message

– Price entry Warning Must be in the format~__.__~– Does not indicate which line item the error message refers to– Hard error messages mixed with soft error messages

Resolution• Tip message created

• IES looking into re-ordering error messages– Hard error stops to the front

Effective date: • To be determined. A formal notification will be sent to all agencies

when a date has been set

43

SRM

Subject: • Ship to addressesEffective date: • To be determined. A formal notification will be sent to all agencies

when a date has been setChange: • SRM will require a valid ship to address on all shopping carts

– XML suppliers receive on a weekly basis a list of valid ship to addresses with a system generated number

– A validation has been added preventing requisitioners from overwriting the “Exec Branch” entry in the Name field

– This validation was required to facilitate the transmission of XML purchase orders to suppliers

– The validation is required to ensure an exact match of the address data with the address number

44

SRM

• System messages have been created to communicate these validations

– If a requisitioner overwrites the Name field, the message informs the creator that the field cannot be overwritten, please re-select a valid ship to address:

– If a requisitioner has not selected a valid ship to address, a system message will instruct the creator to select a valid ship to address:

45

SRM

• Set “Delivery address” attributes– Do not attempt to change the address– Will not encounter any system messages

Setting Your Attributes

1. My Settings: Change Attributes

2. Attribute: Select Delivery address

3. Enter Agency SRM address code

4. Click save

46

SRM

• Requisitioners relying on the Name field to add specific address information should:– Follow the current process

• Request a new address number or Change existing address data

• Use Ship To Address Change Form on the DGS website– Agencies can make the needed changes in the c/o

Agency/Division field in place of the Name field:

Examplec/o Agency/Division: Jane Doe, DOT, Dist 08, Dauphin CtyFloor or Room#/Bldg: Keystone Bldg Rm 324 Street: 41 N. Commonwealth Ave, 3rd floor

4747

REDUCING INQUIRIES to CSC

• Agencies can Reduce the Number of Inquiries to the CSC by: – Limiting Inquiries to Only those Related to

CSC’s Core Mission: • SRM Questions Only

– Ceasing Inappropriate Inquiries to the CSC, i.e.,• Advising Suppliers to Contact the CSC for Assistance

with Inquiries that are Specific to Agency Related Bids in SRM

– The CSC is Not Familiar with Agency Bids and the associated, Specifications, Statement of Work, Terms and Conditions and Documentation

– The Agency should Assist the Suppliers with all Inquiries that are Specific to Agency Related Bids

4848

REDUCING INQUIRIES to CSC Continued

– Ceasing Inappropriate Inquiries to the CSC

• The CSC is Available to Provide Assistance with Generic Inquiries Related to Processing Bids

– Instructions for Bidding in SRM: http://www.dgsweb.state.pa.us/comod/SRMIFBGuide.doc

• Attempting to Purchase an Item that is Not on a Specific Contract – Agency Purchasing Agents should Contact the Appropriate

Commodity Specialist to Identify why an Item is Not on a Contract

– This is Not a System Problem

• Identifying the Number of Envelopes in a Box

• Issuing Payment for an Invoice

49

Procurement Handbook Revisions

PART I: Policies and GuidelinesPART I: Policies and Guidelines

Chapter 1, General Provisions:• Chart added that defines areas where DGS sets agency

procurement policy• Rev. Date 11/06/08

Chapter 2, Definitions:• Definition of subscription added• Rev. Date 01/07/09

Chapter 6, Methods of Awarding Contracts:• No bid contract Letter requirement • 70% requirement for BAFO or negotiation• Rev. Date 10/28/08

50


PART I: Policies and GuidelinesPART I: Policies and Guidelines

Chapter 7, Thresholds & Delegations:• Threshold matrix updated to reflect accurate descriptions• Language regarding lease-hold construction was

removed– (Note – This language will be put back in with a

revised threshold)• Rev. Date 11/25/08

Chapter 50, Public Access to Procurement Information:• Entire chapter was revised• Rev. Date 12/09/08

Chapter 20, Nondiscrimination:• Language regarding use of Form GSMWBE-16, MBE/WBE

Subcontractor and Supplier Certification Solicitation and Commitment

• Rev. Date 10/29/08

51

PART II: Procurement of Supplies ProceduresPART II: Procurement of Supplies Procedures

Chapter 5, Sole Source Procurements:• Number of days completed source justification form will

be posted to DGS web changed from 7 to 10• Political contribution letter requirements• Rev. Date 10/28/08


52

PART III: Procurement of Services ProceduresPART III: Procurement of Services Procedures

Chapter 4, Competitive Sealed Bidding:• Dollar threshold removed and reference to threshold

matrix in Part I, Chapter 7 was added • Rev. Date 10/27/08

Chapter 5, Sole Source Procurements of Services:• Number of days completed source justification form will be

posted to DGS web changed from 7 to 10• Clarification on agency responsibility to send political

contribution letter• Clarification on use of Form STD-168, MBE/WBE

Subcontractor and Supplier Certification• Rev. Date 10/29/08


53

PROCUREMENT ORGANIZATION AND RESPONSIBILITY UNDER THE PROCUREMENT CODE

54

Independent Agency EPO

Background:• Independent agencies utilizing SRM document type services

EPO’s. • This routes to BOP for approval

Issues:

1. BOP does not have authority for service procurements for independent agencies

2. Without a document type = EPO, Treasury will not pay invoices that precede the PO (due to emergency) and lack of evidence of competitive bidding.

Options:

1. Independent agencies use standard doc type and indicate emergency situation in approval notes section of PO when >$5K.

2. Continue with current process

3. Long term - Create new EPO doc type for independent agencies

Feedback?/Thoughts?

5555

Payment Terms

• Commonwealth Payment Terms have NOT Changed to Net 45– 45 Day Payment should NOT be mentioned as this is

NOT Commonwealth Policy• Responding to Suppliers’ Inquiries Relating to

Receiving Payment Within the Established Time Periods – Standard Response:

• “The Commonwealth has, and will, continue to make reasonable efforts to pay within time periods established by contract, but payments may be delayed based on the timing of the receipt of Commonwealth Revenue.”

5656

Payment Terms

• Legal Requested Elimination of Payment Terms from Purchase Orders

• Payment Terms should Reflect the Contract’s Terms and Conditions

– Present • Purchase Order States: Payment Terms – Net 30

– Future• Requested a System Change to Eliminate the Notice

of Payment Terms – Net 30 from Purchase Orders – The Payment Terms – Net 30 is inconsistent with the

Payment Terms in the Standard Contract Terms and Conditions

57

Right to Know

58

Right to Know Continued

59

Green Procurement

• Definition– Green or Environmentally Preferable Procurement (EPP) is the selection of

products and services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that serve the same purpose.

• Purpose– To advance the protection of the environment and support sustainability by leveraging

the purchasing power of the Commonwealth – To increase the purchase of energy efficient, recycled, and less toxic products and

services that also reduce waste– To include environmental considerations to the price and performance criteria – To identify and reduce the environmental impact of an organization’s activities and

maximize resource efficiency

• Policy– Currently in Legal for review

• Guidance Document for Commodity Specialists– Environmentally Preferable Product (EPP) Analysis for Commodity Plan – Recommended Contract Language

• Website in Development

• Web-based Training (Will become part of certification courses)

60

Green Procurement

• Energy Expo --- “Conservation at Home and at Work”

– Keystone Building on Thurs., April 30th

– Collaborative effort between PMA Teams from DGS Procurement & DGS Energy Management

– Agenda (currently under review)

• Secretary Creedon scheduled between 11am and 2pm

• Kick-off of Green Procurement initiative

– Contacting vendors

– Guest Speaker - Scot Case, president of EcoLogo (founded in 1988, with 120 standards and 7,000 certified products)

61

Sole/Single Source Procurements

• Objective – Secretary & Governor’s initiative to make Sole/Single Source procurements more readily available for public scrutiny.

62

• Benefits– Public Notice– Electronic internal agency approvals via e-mail– Electronic DGS internal approvals via e-mail– Archiving of Source Justification form and other

attachments for 3 years.– Internal DGS reporting features– Elimination of shopping carts for Sole/Single

Source requests for services– Automatic notification to Dept of State

Sole/Single Source Procurements Cont’d

63

Agency completes online SJF(including approvals)

Agency submits electronic SJF form to DGS

DGS Materials reviewer receives e-mail to review SJF

Agency will receive e-mail that DGSAccepted the form and can finish

Processing Shopping cart

BOP Internal Process

DGS Material reviewer assigns to CS for review

CS completes Determination Summary, attaches to SJF & approval form

CS routes to CPO for approval

CPO approves & sends back to CS

CS processes SPR & makes up PO for Board release & approval

Upon final release by Board,Material reviewer will update eMarketplace with award info

Agency will receive e-mailstating fully approved

Dept of State will receive e-mailPO/Supplier information

Agency prepares shopping cart & places on hold

Single/Sole Source Procurement Process for Materials

DGS Materials reviewer accepts or

rejects SJF

Accepted

Re

ject

ed

, S

ho

pp

ing

Ca

rt is

re

turn

ed

64

Agency completes online SJF(including approvals)

Agency submits electronic SJF form to DGS

DGS Services reviewer receives e-mail to review SJF

Agency will receive e-mail that DGSAccepted the form

Agency will receive e-mailstating fully approved

Dept of State will receive e-mailPO/Supplier information

Agency may process PO

DGS Services reviewer accepts or

rejects SJF

BOP Internal Process

DGS Services reviewer assigns to CS for review

SJF routes for DGS approvals

Update posted on eMarketplace with proposed award into.

Single/Sole Source Procurement Process for ServicesR

eje

cte

d,

em

ail

no

tific

atio

n

Accepted

65

• Key Dates

– Demo was provided to the eMarketplace Agency Focus Group on on 01/07/09

– Testing was conducted with agency personnel on 01/12/09

– Anticipated go live date will be sometime in February.

Sole/Single Source Procurements Cont’d

Other No Substitutes - explain the request in the

comment section of the Shopping Cart

End User Procedures are in the process of being created

Have received already received some feedback for future enhancements.

66

Future Training Schedule & Location Conducted on a quarterly basis. To date 31 students have been trained. Total of 8 students are eligible for Purchasing Agent Certification

• 2 – Pennsylvania State Police• 2 – L&I• 1 – Agriculture• 1 – Liquor Control Board• 1 – Department of Military & Veterans Affairs• 1 – DPW

Next session – February 9 - 12, 2009 BOP Training Manager will review enrollment and wait list to make a

determination on the final class roster. Newer PA’s have preference.

This course will be available for self-enrollment through ELMS. Please visit BOP’s Training Community Calendar at www.dgs.state.pa.us.

Procurement Policy & ProcessPurchasing Agents Training

67

Training

• PIBH Web Based Course– The purpose of the course is to provide requisitioners and purchasers with an overview of

the statutory requirement to purchase materials manufactured and services performed by persons with disabilities.

• Course will be available through e-LMS (approx. length 20 minutes)• Estimated date of availability is mid-late March 2009• Targeted audience is requisitioners, purchasers, commodity specialists.

– Mandatory for targeted audience, optional for all other Commonwealth employees

• Includes Knowledge Check– Course covers 6 topics:

• Commonwealth Procurement Code, Section 520• PIBH Overview• DGS-PIBH Operational Agreement• DGS Requirements Contract• Other Requirements Contracts that Overlap and/or Conflict with the PIBH Contract• Includes Reference Material, such as general provisions for purchasing PIBH

materials and services, and the process for requesting fair market determination.

68

Training

• RFP Course 12-2-08 Pilot was successful

• Participants had varying levels of experience – 0 RFP’s to > 10 RFP’s Thanks for participation and feedback

17 Participants

• 9 Participants; 6 Agency

• Education

• Pennsylvania State Police

• Corrections

• PennDot

• OA

• L&I

• 8 DGS Commodity Specialist Course was modified based on participant feedback Next scheduled RFP course - January 28, 2009 Course will be offered twice annually

69

Training

• New SAP Overview and Process Course Created to assist individuals who still need to create purchase orders in SAP. Course contains information on SAP Navigation, SAP Overview, and SAP Processes including,

but not limited to Requisitioning, Purchase Orders, Goods Receipts, Invoicing and reports. This two day course will be offered on a quarterly basis with the next course scheduled on

March 3-4, 2009. Please visit BOP’s Training Community Calendar at www.dgs.state.pa.us for self-enrollment through E-LMS.

• BW Procurement Reporting Course Reminder -- please share the training announcements for the months of January and February

with your end users. Next scheduled sessions are:• January 20 and 21, 2009• February 4 and 19, 2009

Web-based Negotiation Course!

70

Periodic Invoicing Plan Issues

• Payment issues - Purchaser:– Not utilizing the proper remit-to address (ending in -901)

• => no payment

– Not marking the Delivery Complete box on any line items in the PO• => no payment

– Changed/Cancelled the PO and failed to issue the changed version • =>supplier still expecting payment

• Other:– Inconsistent in entry of serial #’s within PO

• => BOP has difficulty tracking the serial number through the numerous POs covering the 48-month lease. Example: Ser#C40001111, Serial # C40001111, C40001111, #C40001111. – Standard Format = Serial#_C########

71

Training

• Periodic Invoicing Plan Purchase Orders (IP POs) The Training Team will be offering an instructor-led course to thoroughly review the IP PO

process, and how to run reports to monitor the monthly payments

• This course is available for self-enrollment through ELMS. Please visit BOP’s Training Community Calendar at www.dgs.state.pa.us.

• Regional Procurement Training Opportunities A survey has been sent out to the Procurement Policy Council and Training Officers to gauge

the interest level for Regional trainings for the following courses:

• Requisitioning/Receiving (2-Day)

• Creating/Maintaining Purchase Orders, Solicitations/Contracts (3-Day)

We plan to hold training this spring in Greensburg, Meadville, King of Prussia and Selinsgrove.

The scheduling and location of these trainings will depend on the number of interested participants.

72

Procurement Pulse

• DGS Bureau of Procurement has developed the newsletter Procurement Pulse which will be issued COPA-wide on a quarterly basis First issue of publication will be on 2/2/2009 Topics will include information and updates related to existing/upcoming

contracts/solicitations within the Materials & Services Divisions, Quality Assurance, Business Process Improvement Division, and SRM/Core System (status, updates, etc.)

To access the Procurement Pulse Newsletter, visit the DGS Procurement website @ www.dgs.state.pa.us\procurement and search within the Agency Dashboard section.

73

Procure to Pay – Solicitation Risk Recommendation

Future Process

Going forward, comptroller will make a risk based determination as to when they will participate in the service solicitation process.

A form will be required when agencies request DGS delegation as well as for agency delegated procurement.

DGS Service Delegation Process – The criteria will be included as part of the current DGS delegation request form and the form will be submitted first to DGS and then from DGS to the comptroller.

Agency Service – The form will be sent directly to the comptroller for review and decision.

Next Steps

DGS and Agency Delegation Form

The Form is expected to be implemented on 2/22. DGS/OB will issue a communication as to when the form and process will go into effect and where to submit the form.

Future Process

Going forward, comptroller will make a risk based determination as to when they will participate in the service solicitation process.

A form will be required when agencies request DGS delegation as well as for agency delegated procurement.

DGS Service Delegation Process – The criteria will be included as part of the current DGS delegation request form and the form will be submitted first to DGS and then from DGS to the comptroller.

Agency Service – The form will be sent directly to the comptroller for review and decision.

Next Steps

DGS and Agency Delegation Form

The Form is expected to be implemented on 2/22. DGS/OB will issue a communication as to when the form and process will go into effect and where to submit the form.

74

Request for Delegation Form

75

Procure to Pay – Signature Authority for Invoice Payment

Current State Future State Per Management Directive 205.4

agency identifies an individual who should be granted the authority to approve invoices for payment.

A Signature Authorization form is completed and the form is kept on file with OB, DGS and Treasury for audit purposes.

Agency identifies an individual who should be granted the authority to approve invoices for payment.

Individual is role mapped to either the Invoice Receiver role or the Invoice Verifier role. No additional forms are required since role mapping will serve as proof of approval authority for Treasury.

Role mapping is not based on dollar value so agencies should evaluate the individuals and roles accordingly.

The role mapping change applies only to payment of invoices, all other processes remain as-is.

76

Procure to Pay – Goods Receipt Entry

Future Process

Going forward, entry of a Goods Receipt (GR) will be required prior to processing of a market-based PO invoice or an invoice with multiple account assignments.

For these two invoice types, the OB invoice processor will reject an invoice that does not have a GR.

The invoice will then route to the Agency PO Line Item Reconciler, who will work with the Goods Receiver to make sure a GR is entered.

Upon entry, the Agency PO Line Item Reconciler will accept the invoice and it will then route back to the OB Invoice Processing Unit for review.

Rationale

Market Priced – Invoices cannot be entered for market priced POs therefore the only method to indicate to the agency that the invoice has arrived is via workflow to the agency.

Account Assignments – When a GR is not completed, the invoice processor must calculate the split which is a labor-intensive, time-consuming process only required due to a lack of proper receiving.

Future Process

Going forward, entry of a Goods Receipt (GR) will be required prior to processing of a market-based PO invoice or an invoice with multiple account assignments.

For these two invoice types, the OB invoice processor will reject an invoice that does not have a GR.

The invoice will then route to the Agency PO Line Item Reconciler, who will work with the Goods Receiver to make sure a GR is entered.

Upon entry, the Agency PO Line Item Reconciler will accept the invoice and it will then route back to the OB Invoice Processing Unit for review.

Rationale

Market Priced – Invoices cannot be entered for market priced POs therefore the only method to indicate to the agency that the invoice has arrived is via workflow to the agency.

Account Assignments – When a GR is not completed, the invoice processor must calculate the split which is a labor-intensive, time-consuming process only required due to a lack of proper receiving.

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Procure to Pay – Supporting Documentation

Where should supporting documentation be mailed in the future?

If documentation is currently required to be attached when submitting your invoice to the Comptroller office for processing, in the future it should be mailed along with the invoice to the appropriate new post office box for pick-up and processing by DOR.

If documentation is currently NOT required to be attached when submitting your invoice to the Comptroller office for processing, in the future it should continue to be mailed to the agency for retention and the invoice should be mailed to the appropriate new post office box for pick-up and processing by DOR.

Due to the varying requirements for supporting documentation within an agency and/or program area, it would be best for each agency program area to tailor the Non-PO vendor letter to indicate where supporting documentation should be sent.

Where should supporting documentation be mailed in the future?

If documentation is currently required to be attached when submitting your invoice to the Comptroller office for processing, in the future it should be mailed along with the invoice to the appropriate new post office box for pick-up and processing by DOR.

If documentation is currently NOT required to be attached when submitting your invoice to the Comptroller office for processing, in the future it should continue to be mailed to the agency for retention and the invoice should be mailed to the appropriate new post office box for pick-up and processing by DOR.

Due to the varying requirements for supporting documentation within an agency and/or program area, it would be best for each agency program area to tailor the Non-PO vendor letter to indicate where supporting documentation should be sent.

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Workflow for Agency Fiscal Review of Shopping Carts

Required Actions:

The recommendation for fiscal review in shopping carts were received and will be live in production 2/6/09.

We will be notifying agency project managers this week that cart changes and role mapping will be ready with an effective date of 2/6/09.

These changes will impact all agencies with the exception of Penn Dot with whom we are working for a later date to allow time for training.

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Process and Technology Development of desktop procedures is currently underway in payable services. Agency procedures are part of

this development

Cycle 1 integration testing for PO and non-PO invoice processing began in December

Cycle 2 integration test scenarios are in development, with testing targeted to begin 2/16

Organization OB Organization changes in review with OA HR

New location for Office of Comptroller Operations will be Forum Place Building – 555 Walnut Street

Relocation of staff to new facility scheduled for April

Communications and Training Starting awareness sessions for OB staff - PO Invoice Processing with OB Document Review and Control

(DR&C) Group on 12/17; subsequent meeting scheduled for 1/15 to discuss Non-PO Invoice Processing and Exceptions Processing. Meeting with OB General/Federal/Special Accounting Group scheduled for 1/21

Analyzing results from Finance Transformation Survey (change readiness assessment) to OB staff on 11/21

Planning for Jan/Feb 09 outreach to Non-PO suppliers (invoice requirements, mailing addresses, etc.) and Feb 09 outreach to PO suppliers (new mailing address, rejection procedures, etc.)

Development of training materials underway

See Appendices A, B, C

Overall Project Update

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Appendix AProcure to Pay – Incorrect Invoice Submissions

Upon Go-Live, Wave 1 vendors should send all invoices to DOR for scanning and indexing. There will be separate post office box addresses for PO, Non-PO, Grant and Utility invoicesUpon Go-Live, Wave 1 vendors should send all invoices to DOR for scanning and indexing. There will be separate post office box addresses for PO, Non-PO, Grant and Utility invoices

Incorrect Action Resolution

Vendor incorrectly sends invoice to Agency or Comptroller’s Office

Desired Path:

− Agency or Comptroller identifies whether it is a PO, Non-PO, grant or utility invoice

− The Agency or Comptroller writes any missing indexing information, if known, on the invoice and sends via interoffice mail to QC

− Agency or Comptroller emails/mails a form letter to the vendor, reminding them of the new invoice submission address (based on invoice type). This form letter will be provided by the FT project prior to Go-Live

− QC confirms that it is correctly identified as PO, non-PO, grant or utility and submits to DOR for scanning

Alternate Paths:

− If the indexing information is missing and is not known, the Agency or Comptroller contacts the vendor for the missing information. If the vendor cannot provide the information, the invoice is returned to the vendor along with a form letter.

− If QC finds that the invoice document is incorrectly identified, it provides the correct invoice type and sends to DOR for scanning

Vendor sends a PO invoice to wrong DOR invoice mailing address (Non-PO, Grant or Utility)

DOR identifies incorrect submission because a PO number is listed on the invoice. The invoice will be provided to QC

QC confirms (approves) that it is a PO invoice and places in DOR’s PO invoice pile waiting to be scanned. If PO invoice is rejected, then invoice returned to vendor

QC emails or mails form letter to vendor reminding them of the correct address

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Appendix A - Cont’dProcure to Pay – Incorrect Invoice Submissions

Incorrect Action Resolution

Vendor sends a Non-PO invoice to wrong DOR invoice mailing address (PO, Grant or Utility)

DOR identifies incorrect submission because a location code is listed on the invoice. The invoice will be provided to QC

QC confirms (approves) that it is a Non-PO invoice, verifies the location code (and update if needed), and places in DOR’s Non-PO invoice pile waiting to be scanned. If Non-PO invoice is rejected, then invoice returned to vendor


Vendor sends a Grant invoice to wrong DOR invoice mailing address (PO, Non-PO or Utility)

DOR identifies incorrect submission of Grant invoice based on visual inspection of the invoice. The invoice will be provided to QC

QC confirms (approves) that it is a Grant invoice and places in DOR’s Grant invoice pile waiting to be scanned. If Grant invoice is rejected, then returned to vendor


Vendor sends a Utility invoice to wrong DOR invoice mailing address (PO, Non-PO or Grant)

DOR identifies incorrect submission of Utility invoice based on visual inspection of the invoice. The invoice will be provided to QC

QC confirms (approves) that it is a Utility invoice and places in DOR’s Utility invoice pile waiting to be scanned. If Utility invoice is rejected, then returned to vendor


Vendor sends confidential documentation to DOR

DOR pulls all paper with confidential information and provides to QC for review QC provides confidential material to the relevant agency via interoffice mail Agency emails or mails form letter notifying vendor that confidential documentation should not be sent

to DOR but should be sent separately to the agency

Vendor sends supporting documentation to DOR without an invoice

DOR forwards invoice-related supporting documents to QC for review QC provides supporting documentation to the relevant agency via interoffice mail Agency identifies related invoice and attach to that invoice’s SAP document Agency emails or mails form letter notifying vendor that supporting documentation must be sent with

invoice to DOR

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Appendix BEducation Curriculum Questions & Answers

1. Do agencies need to participate in the Exceptions Processing course?

No, as this class is geared toward OB staff. PO and Non-PO exceptions will be covered in agency-specific courses.

2. Suggestion to segment Invoice Processing Overview course into 2 courses – 1 for PO and 1 for Non-PO

The Invoice Processing Overview is web-based training, providing a high-level overview of the entire P2P process, and is intended for all OB and agency staff involved in PO and Non-PO invoice processing.

3. Does the Non-PO Invoice Processing course need to include content for both agency receivers and verifiers, since verifiers are only confirming receipt of goods and/or services?

Yes, because in some cases agency receivers may also have the verifier role. The plan is to also develop procedure for distribution by the agency to individual who only serve as verifiers. NOTE: Verifiers approve invoices for payment, not just confirm goods received.

4. Will a web-based SRM approver course be developed, given the new requirement to perform fiscal reviews for shopping carts?

No, DGS already has appropriate training material developed for approvers in SRM.

5. Will reporting be included in the appropriate FT training courses?

Yes

6. Tell me more about the End-User Support/Deployment Team Preparation course

We need to establish contacts within OB and agency organizations to log, handle and/or route issues for resolution for approximately the first 90 days following deployment. Also included here will be procedures for resolving issues.

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Appendix CPhased Implementation for Non-PO

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Appendix - D

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Appendix - D

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Appendix E SRM – BI Reports

• Existing Role: Purchase Orders

Existing Workbook New Workbook

•PO Quantities Analysis • PO Overview

•Quantity and Value of Emergency Purchases • PO Overview

•PO Values by Geographic Area • PO – FY Comparison

•STO Values • STO Overview

•PO Summary by Business Area • PO Overview

•Purchasing Group Analysis – Volume • PO Overview

•Purchasing Group Analysis – Values • PO Overview

•Purchasing Group Emergency Purchases % of Total • PO Overview

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Appendix ESRM – BI Reports

• Existing Role: Purchase Orders


•Contract Purchasing Group Monitoring• Same workbook and query will be used

•Pareto Analysis by PO Volume (80/20 Rule)• Same workbook and query will be used

•Maverick Buying Analysis• Same workbook and query will be used

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• Existing Role: Material / Service


•Percent of Quantity Delivered • Delivery Overview

•Percent of On-Time Deliveries • Delivery Overview

•Receiving Report -- % of Received Qty• PO Overview or Consumption Reports

•Delivery Quantity Analysis • Delivery Overview

•Material Ordered 12 Month Compare • PO – CY Comparison

•Delivery Days Analysis • Delivery Overview

•Over Delivery • Delivery Overview

•Daily Consumption Report•Same workbook and query will be used.

•Consumption Report•Same workbook and query will be used.

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• Existing Role: Vendor


•Percent of Quantity Delivered • Delivery Overview

•Percent of On-Time Deliveries • Delivery Overview

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• Existing Role: Sourcing


•Contract Usage by Grouped Amounts • Contract Usage by Grouped Amounts

•Contract Usage Report • Contract Usage by Grouped Amounts

•PO Against Contracts • Maverick Spend

•Number and Value of PO Items for Statewide Contracts

• Contract Type Report

•Number and Value of PO Items for Agency Contracts


•Number and Value of PO Items for Contract Types


•RFQ Analysis • Future Addition

•Purchasing Group Activities by Contracts • PO Overview

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• Existing Role: Sourcing


•Contract Purchasing Compare with Detail • Same workbook and query will be used

•Contract List with Validity Dates • Same workbook and query will be used

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• Existing Role: SRM Reporting


•Top 25 Suppliers & Categories • Same workbook and query will be used

•Invoice Values • Same workbook and query will be used

•Global Spend Document Level Details • Same workbook and query will be used

•SRM PO Status • Same workbook and query will be used

•SRM PO Overview • Same workbook and query will be used

•Document Flow: Shopping Cart to PO • Same workbook and query will be used

•GR Report (Non-Inventory) • Same workbook and query will be used

•Daily Receipts and Issues (Inventory) • Same workbook and query will be used

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•Daily GR Report (Non-Inventory) • Same workbook and query will be used

•Movements Detail • Same workbook and query will be used

•Shopping Carts Still to be Approved • Same workbook and query will be used

•Overview of Shopping Cart Approvals • Same workbook and query will be used

•Shopping Cart Status • Same workbook and query will be used

•Shopping Cart Overview • Same workbook and query will be used

•Shopping Carts without Follow-On Documents • Same workbook and query will be used

•Contracts by Vendor • Same workbook and query will be used

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•Contracts per Purchasing Org / Purchasing Group

• Same workbook and query will be used

•Expiring Contracts • Same workbook and query will be used