State of OhioNext Generation

eProcurement Project

Competitive Dialogue Brief

September 8, 2016

AGENDA

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Welcome & Introduction

Scope & Organization• Scope of the Competitive Dialogue• Who We Are

Current State• Procurement in Ohio• Current Functionality

Future State• The Journey• What we want to Learn

What’s Next?

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Welcome & Introduction

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Kelly Sanders

Chief Procurement Officer

Office of Procurement Services

Eric Glenn

Enterprise IT Contracting Administrator

Office of Information Technology

Department of Administrative Services (DAS)

Scope of this Competitive Dialogue

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• Present an overview of the State’s eProcurement Vision

• Convey the general opportunity and the State’s current situation

• Explore lessons learned from previous eProcurement projects

Procurement Authority

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EITC OPS

ODOT

Real Estate

OFCC

State Printing

Cabinet Level Agencies Boards & CommissionsNon-Superintended

AgenciesColleges & Universities Political Subdivisions

Central Procurement Offices

OAKS

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Ohio Administrative Knowledge System

The State’s Enterprise Resource Planning (ERP) system which provides central administrative business services. Core system capabilities include:

Content Management (myohio.gov) Enterprise Learning Management (ELM)

Customer Relationship Management (CRM) Financial Management (FIN)

Enterprise Business Intelligence Human Capital Management (HCM)

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OPS - Vision StatementTo be the Ohio procurement solution that provides A+ Service, value and efficiency to support our customers.

OPS – Mission StatementTo provide our customers quality, timely and cost effective procurement solutions by using best practices in accordance with legislative and executive requirements.

OPS - Responsibilities

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• State Purchasing assists state agencies with the procurement of supplies and services through competitive selection and negotiated contracts.

• Cooperative Purchasing extends the benefit of state contract pricing to participating political subdivisions, such as local governments, schools and universities.

• Office of Procurement from Community Rehabilitation Programs helps state agencies purchase supplies and services from work centers that employ people with disabilities.

• Asset Management Services assists state agencies in fulfilling statutory requirements for maintaining, reporting and certifying state-owned assets; provides technical direction & assistance to agencies regarding asset management, transfers, termination of agencies, converting inventory, retirements, and reconciliation.

• The OAKS FIN PMO team provides project management, training, and technical support to OAKS FIN users for the following modules: Strategic Sourcing (eBid), eProcurement (ePro), Purchasing (PO), Contracts Management (CM), & Asset Management (AM).

OPS – Active Contracts

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• Community rehabilitation contracts - 247

• State term schedules – 310

• Master maintenance agreements – 42

• Invitations to Bid – 196

• Requests for Proposals – 186

• Contract spend for fiscal year 2016: $953,693,816

EITC – Mission Statement

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Enterprise Information Technology Contracting strives to be the lead information technology procurement resource for state agencies by providing enterprise and agency specific contracts to meet current and future needs.

We work to develop innovative methods to monitor procurement contract usage and governance in a customer-involved environment.

EITC - Responsibilities

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Our office performs the following:

• Leads the competitive selection process for information technology goods and services through Request for Proposal and Invitation to Bid contracts

• Negotiates agreements for hardware, software, cloud and professional services

• Establishes contracts for network delivered information services such as voice, data and video cloud services for state and local government

EITC – Active Contracts

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• State term schedules - 263

• Master Cloud Service Agreements – 47

• Master Maintenance Agreements – 59

• Master License Agreements – 39

• Master Service Agreements - 16

• Request for Proposals – 56

• Invitations to Bid – 9

• Contract spend for fiscal year 2016: $259,481,995.79

Leading Organizations

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• The Office of Procurement Services within DAS (OPS)

• The Office of Enterprise Information Technology Contracting within DAS (EITC)

• The Ohio Office of State Accounting within OBM (OSA)

• The Office of Ohio Shared Services within OBM (OSS)

• The Office of Ohio Administrative Knowledge System Service Assurance within DAS (OAKS)

• The Heavy Equipment and Roadway Materials Procurement within the Ohio Department of Transportation (ODOT)

Procurement in Ohio Today

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• The current central procurement process is paper driven and lacks standardization between information technology and commodity driven purchases.

• There is an absence of communication and transparency resulting in customer frustration.

• Numerous silo processes and systems

• Less than optimal cycle times for various processes

• Minimum access to current and potential supplier information

• Lessons Learned - Ohio MarketPlace, OAKS Enterprise Supplement 2

Discovery & Business Process Re-engineering

• Central Procurement Kaizen

• Central and Special Programs Discovery

• Agency Procurement Kaizen

• Agency Discovery

• Supplier Discovery

• Political Subdivision Discovery

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Ohio’s eProcurement Vision• Make plan-to-procure-to-pay practices more strategic, well

coordinated, standardized, fully adopted and integrated with the

State’s enterprise resource planning system

• Implement leading procurement capabilities to better manage

procurement spend across state government, higher education,

municipalities, counties, and government entities throughout Ohio

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Simpler

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• The future process will have a single point of entry

• There will be a consistent process for agency customers-regardless of need

• One face for procurement

• The new process will have dashboard and tracking capabilities-allowing for the use of data

• Increased supplier participation

Faster

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• Less steps in the central procurement process-allowable by going electronic and utilizing automation

• More efficient for all involved

• The new process allows for electronic signatures-saving valuable time

• There will be simultaneous actions

Better

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• Less confusion and frustration for everyone involved in the process

• More enjoyable experience

• All documents will be in one place with access by all involved

• Increased transparency and visibility

• Better planning for all

• Standardization of terms and conditions

• Enterprise focus promoting economies of scale

Less Costly

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• Less paper for suppliers and State of Ohio

• Lower cost of business with the state for bidders

• Less meetings for managers by utilizing an electronic system

• Labor savings for bidding online

• Reduced need for storage by having electronic documentation

Moving to eProcurement – the Journey

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• Conceptualizing an innovative To-Be model

• Conducting the Competitive Dialogue to encourage innovation

• Planning towards RFP in November

What We Want to Learn from You

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Considerations

• Potential technical innovations

• Implementation best practices

• Effective cost models

Approaches

• How do we enable you to be innovative in presenting your solution

• Readiness recommendations for this eProcurement Initiative

Open Discussion

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• What challenges have you experienced in responding to RFPs for eProcurement solutions of this scale?

• From your experience what considerations can you share regarding implementation?

• From your experience what are effective cost models that have been successful?

• What other lessons learned can you share with any aspect of the lifecycle of an eProcurement project?

What’s Next?

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•Register with Ohio

•Start Planning

•Consider Partners

•Watch for RFP posting

Get Ready

We welcome any additional comments or feedback by email to:

DAS.IT-EITC@das.ohio.gov

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