purchasing directors’ meeting november 13, 2003 3:00 p.m
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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 - PowerPoint PPT PresentationTRANSCRIPT
Purchasing Directors’ Meeting
November 13, 20033:00 P.M.
State Purchasing
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Purchasing Directors’ Meeting Purchasing Directors’ Meeting November 13, 2003 Agenda 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
3
Purchasing Directors’ Meeting Purchasing Directors’ Meeting November 13, 2003 Agenda 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
4
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
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Office ConsumablesIllustrated Unit Savings
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
Baseline New Price
Old Price Vendor Cost Transaction Fee ($0.007)
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. . .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
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Purchasing Directors’ MeetingPurchasing Directors’ MeetingTrends in e-Purchasing/Trends in e-Purchasing/
Transforming Supply ManagementTransforming Supply Management
Professor Larry C. Giunipero
ISM Prof. of Purchasing/Supply Management
Marketing Department
Florida State University
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Purchasing Directors’ MeetingPurchasing 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
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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
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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
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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
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Optimizing Public ProcurementProject Culmination
• Mid-April conference on procurement practices
• Publication as part of Policy Research Project Reports series
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Optimizing Public ProcurementContact Information
Professor Sherri Greenberg– Email: [email protected]
– Phone: (512) 471-8324
Amy Witte– Email: [email protected]
– Phone: (512) 736-1598
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Purchasing Directors’ Meeting Purchasing Directors’ Meeting November 13, 2003 Agenda 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
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Purchasing Directors’ MeetingPurchasing Directors’ MeetingOperational IssuesOperational Issues
Air-Tran Support of Operation Iraqi Freedom R&R program
New Contracts
Upcoming Solicitations
DMS Website
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Operational IssuesOperational IssuesAir-Tran/R&R Program Air-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.
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Operational IssuesOperational IssuesNew ContractsNew Contracts
Autos and Light Trucks – Jim Den BleykerNatural Gas Pool Manager – David BennettOffice Consumables – Steve PooleMRO Materials – Chuck BeallMail Services – Susan Barr
Drug Screening Devices – Mark LovellAnticipated contract start date is 1/1/04. Current contract expires 11/22/03. Place orders in next week for rest-of-year needs.
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Operational IssuesOperational IssuesUpcoming Solicitations (60 Days)Upcoming 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
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Operational IssuesOperational IssuesDMS WebsiteDMS 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 ([email protected])
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Purchasing Directors’ Meeting Purchasing Directors’ Meeting November 13, 2003 Agenda 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
21
Purchasing Directors’ MeetingPurchasing Directors’ MeetingEthics Update – Right to Honest Government ActEthics 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
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act 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.”
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act 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.
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act 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.
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act 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).
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act 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.
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act Right to Honest Government Act
Resource Materials:
• Governor Bush’s Code of Ethicshttp://www.myflorida.com/myflorida/government/policies/ethicscode.html
• NIGP Code of Ethics
http://www.nigp.org/genlinfo/2001CodeofEthics.pdf
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Purchasing Directors’ MeetingPurchasing Directors’ Meeting Right to Honest Government Act Right to Honest Government Act
What to Do Next:
• Send existing ethics in purchasing materials to DMS ([email protected])
• Update your attorney
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Purchasing Directors’ Meeting Purchasing Directors’ Meeting November 13, 2003 Agenda 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
30
Purchasing Directors’ Meeting Purchasing Directors’ Meeting November 13, 2003 Agenda 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
31
Purchasing Directors’ MeetingPurchasing Directors’ MeetingNext MeetingNext Meeting
Time: 3:00 to 5:00 p.m.
Date: Thursday, December 11, 2003
Location: Department of Revenue “Taxworld”
5050 West Tennessee StreetBuilding C, Training Room D & E
(850) 921-2548 (SC - 291-2548)