PUBLIC PURCHASING IN FLORIDA

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PUBLIC PURCHASING IN FLORIDA

• PURCHASING MANAGEMENT
• (REV. 5/24/08)

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PURCHASING MANAGEMENT

• MISSION LEADERSHIP
• VENDOR CUSTOMER RELATIONS
• PERFORMANCE STANDARDS MEASUREMENT
• ADDING VALUE
• PROFESSIONAL DEVELOPMENT
• FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS
• INTERNET RESOURCES

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PURCHASING MANAGEMENT

• MISSION LEADERSHIP

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PURCHASING MANAGEMENT

• Department of Management Services
• Service Motto
• We serve those who serve Florida
• Service Vision
• Engaged employees, Satisfied customers
• Service Mission
• Producing smarter, better, faster services

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MISSION LEADERSHIP

• Mission Leadership is a program introduced to DMS
  by former Secretary Bill Simon, and consultant
  McKinney Rogers International.
• Mission Leadership draws on a military model for
  its inspiration.
• It defines the mission of each level within an
  organization, and for that matter, for each
  individual.

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MISSION LEADERSHIP

• The mission of each level in an organization is
  to support the mission of the next level up.
• Each levels mission is set forth in a Mission
  Analysis document which contains five main parts.

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MISSION ANALYSIS

• MISSION STATEMENT (which itself has two parts)
• MISSION WHAT and WHY What is your mission.
  Why is the mission of the level ABOVE.
• GOALS (measures) Objectives and dates (SMART
  acronym Specific, Measurable, Achievable,
  Realistic, Timely ).

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MISSION ANALYSIS

• STRATEGIC INTENT
• One Level Up
• Two Levels Up
• Your part in the plan (I commit to ..)

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MISSION ANALYSIS

• TASKS A four-column table showing
• Specified tasks
• Implied tasks
• Resources
• Time (date to accomplish)

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MISSION ANALYSIS

• FREEDOMS CONSTRAINTS
• Freedoms (things that help you accomplish your
  mission)
• Constraints (things that impede)

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MISSION STATEMENTS

• SECRETARY OF DMS
• To provide effective program support to all
  state agencies in order to deliver resource
  saving solutions to our customers.

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MISSION STATEMENTS

• DIRECTOR OF STATE PURCHASING
• To gladly deliver useful and innovative
  purchasing services in order to provide effective
  program support to all state agencies.

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MISSION ANALYSIS

• Each of the preceding mission analyses includes
  goals (measures) and dates by which they are to
  be accomplished, as well as specified and implied
  tasks along the way, and identification of the
  resources to accomplish them.

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MISSION ANALYSIS

• The value of Mission Analysis is to keep the
  focus on the desired outcome, and tailor the
  day-to-day activities in a conscious manner to
  accomplish the mission, instead of just working
  each issue which pops up, with whatever time and
  other resources it seems to require.

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PURCHASING MANAGEMENT

• VENDOR CUSTOMER RELATIONS

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VENDOR CUSTOMER RELATIONS

• Vendor Guides
• Purchasing Manuals
• Desk Procedures
• Customer Surveys

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VENDOR GUIDES

• PURPOSE A concise reference to assist vendors
  wanting to know what the agency buys, who to
  contact for marketing, and what the buying and
  selling procedures are.

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VENDOR GUIDES SHOULD INCLUDE

1. The size, organization and purpose of the agency.
   
2. A summary of items and services typically
   purchased.
3. Purchasing and related procedures.
4. Contact information, including web site(s),
   telephone numbers and email addresses.

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Table of Contents, Fla. DHSMV athttp//www.flhsm
v.gov//intranet/PTurchasing/html/vgan.htm

• AGENCY PROFILE
• OFFICES OF PURCHASING AND LEASING
• GUIDING PRINCIPLES
• PURCHASING ACTIVITY
• PURCHASE METHODS
• MINORITY BUSINESS ENTERPRISE UTILIZATION
• LEGAL AND ETHICAL REQUIREMENTS
• VENDOR REGISTRATION
• MARKETING APPROACH
• BID INFORMATION
• SPECIAL PROBLEMS
• DIRECTORY

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VENDOR CUSTOMER RELATIONS

• PURCHASING MANUALS

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PURCHASING MANUALS

• PURPOSE A policy procedures reference to
  assist INTERNAL customers wanting to know how to
  buy their requirements, how to resolve problems
  with vendors, what the governing laws, rules and
  policies require, where to find necessary forms
  and information, who to contact for purchasing
  assistance, and timelines.

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SUGGESTED TABLE OF CONTENTS

• Purpose
• Authority
• Standards of Conduct
• Definitions
• Requirements of Law, Rule Policy, including
  Procurement Methods
• General Process
• Special Processes
• Problem Resolution
• Contact Information

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VENDOR CUSTOMER RELATIONS

• DESK PROCEDURES

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DESK PROCEDURES

• PURPOSE A procedures reference guide to assist
  purchasing personnel in processing requisitions,
  understanding and applying various procurement
  methods, analyzing and planning for purchasing
  success, and problem resolution.

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DESK PROCEDURES

• Mission
• Office organization workflow
• Evaluating a requisition for clarity,
  completeness, justification authority
• How to handle various deficiencies

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DESK PROCEDURES

• Selecting contracting options, including
  standalone process or order consolidation
• Data gathering and analysis
• Choice of procurement method
• Composition of the solicitation
• Purchase Order Issuance
• Record keeping

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DESK PROCEDURES

• Problem resolution
• Customer Issues Adding value, and marketing
  problem resolution
• Vendor performance
• Change orders
• Addenda to solicitations
• Receipt of bids
• Public Records requests
• Protests

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VENDOR CUSTOMER RELATIONS

• CUSTOMER SURVEYS

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CUSTOMER SURVEYS

• TWO PURPOSES
• Find ways to improve
• Educate the customer

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A GENERAL SURVEY FOR YOUR WEB SITE

• Service issue (perhaps drop down) date
• Were you treated in a professional courteous
  manner by staff?
• Was response timely?
• Was your transaction processed accurately in
  accordance with law rule?
• Rate overall satisfaction with your experience
  (provide a scale).
• Please provide any additional comments.

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CUSTOMER SURVEYS

• From DMS State Term Contracts
• Rating the Contractor, 1-5 scale
• Performance to specifications
• Delivery
• Invoicing
• Customer Service

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CUSTOMER SURVEYS

• Rating the Division of State Purchasing, 1-5
  scale
• Pricing
• Ease of use
• Product selection quality
• Customer Service
• Comment box
• Do you want to be contacted?

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PURCHASING MANAGEMENT

• PERFORMANCE STANDARDS MEASUREMENT

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PERFORMANCE STANDARDS MEASUREMENT

• WHY DO THIS?

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PERFORMANCE STANDARDS MEASUREMENT

• EXAMPLES
• FINANCIAL MEASURES
• STATE OBJECTIVES MEASURES
• CUSTOMER SERVICE MEASURES
• PROFESSIONAL DEVELOPMENT MEASURES
• ISSUES INITIATIVES

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PERFORMANCE STANDARDS MEASUREMENT

• ANOTHER VIEW DEFINE MEASURE
• EFFECTIVENESS
• EFFICIENCY
• ECONOMY
• MISSION DELIVERY

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FINANCIAL MEASURES

• Savings achieved, dollars and percentages
  (economy)
• Cost of the purchasing operation as a of
  contract values (efficiency)
• Return on investment (efficiency)
• Percentage of spend on centrally awarded
  contracts (effectiveness)
• Cost as a of agency budget (efficiency)
• Centralized vs. Decentralized transactions
  (efficiency effectiveness)

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STATE OBJECTIVES MEASURES (effectiveness)

• 1. Equity in Contracting
• 2. Environmental Considerations
• 3. Certification of Drug-Free Workplace
• 4. RESPECT
• PRIDE
• Examples of measurement of contracts
  contributing to each objective, of contracts
  improved or declined vis-à-vis previous contract
  for each objective.

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CUSTOMER SERVICE MEASURES (effectiveness)

• For example, number and percentage of customer
  survey results reflecting a satisfactory to
  excellent rating.

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PROFESSIONAL DEVELOPMENT MEASURES (effectiveness)

• For example, number and percentage of staff who
  have attained professional certification.
• In Florida now, can include UPPCC, State
  certifications and PMP certification.

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ISSUES INITIATIVES (mission delivery)

• For example, a list of accomplishments and
  challenges addressed during the reporting period.
  Can include status on a major negotiation or
  process improvement. Can also be in the area of
  one of the 3 Es, EFFECTIVENESS, EFFICIENCY
  ECONOMY.

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PURCHASING MANAGEMENT

• ADDING VALUE

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ADDING VALUE

• WHAT IS VALUE?

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WHAT IS VALUE?

• SERVICE LEVEL
• TIMELINESS
• EFFECTIVE DELIVERY
• FINANCIAL LEVEL (Purchases Processes)
• COST REDUCTION
• COST AVOIDANCE
• REVENUE
• PROCESS LEVEL
• LEGALITY
• ETHICS
• PROFESSIONALISM
• STAFF LEVEL
• ADVICE, PLANNING, EDUCATION PROCEDURES

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ADDING VALUE THROUGH PROCESS CHANGES

• TWO WAYS TO CONSIDER THIS
• OPPORTUNITIES TO RE-ENGINEER, ADDING PROCESSES,
  STEPS AND HANDLING WHERE VALUE CAN BE ADDED
• OPPORTUNITIES TO RE-ENGINEER, DROPPING PROCESSES,
  STEPS, AND HANDLING WHERE NO VALUE IS ADDED

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ADDING VALUE

• CONSIDER
• PROCESSES WHAT OPPORTUNITIES MAY BE MISSED BY
  PRESENT PROCESSES? ARE COSTS MANAGED? IS
  PERFORMANCE MANAGED? IS MISSION ACCOMPLISHED?
• DO ALL STEPS, PARTICIPANTS, APPROVALS, ETC.
  CONTRIBUTE TO ONE OF THE VALUES?

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ADDING VALUE

• EVERYTHING MAY BE JUST THE WAY YOU WERE TAUGHT
  BUT

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ADDING VALUE

• THERE IS NOTHING PUT IN PLACE BY HUMAN BEINGS
  THAT CAN NEVER BE IMPROVED, OR REPLACED BY
  SOMETHING BETTER. IS THERE?

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ADDING VALUE

• REVIEW YOUR MISSION YOUR MEASURES
• CONSIDER WHAT ACCOMPLISHMENTS WOULD REALIZE THEM
• CONSIDER THE PROCESSES AND INPUTS NEEDED, AND
  COST VS. VALUE ADDED OF EACH INPUT PROCESS
• DELETE OR REPLACE THE REST

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PURCHASING MANAGEMENT

• PROFESSIONAL DEVELOPMENT

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PROFESSIONAL DEVELOPMENT

• Inspector General Derry Harpers Report Road Map
  to Excellence in Contracting, June, 2003,
  recommended a statewide training initiative led
  by DMS be undertaken using the foundation
  developed in some agencies.

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PROFESSIONAL DEVELOPMENT

• The Report noted that The National Institute of
  Governmental Purchasing, Inc. offers several
  certification programs for procurement
  professionals (Certified Professional Public
  Buyer and Certified Public Purchasing Officer).

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PROFESSIONAL DEVELOPMENT

• State Purchasing has contracted a State Term
  Contract Training for Public Purchasing
  Professionals 908-660-07-1 for procurement,
  contract negotiation, project management
  professional training and Florida specific
  training.

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PROFESSIONAL DEVELOPMENT

• NIGP COURSES
• Sourcing in the Public Sector
• Planning, Scheduling Requirement Analysis
• Developing and Managing RFP's
• Legal Aspects of Purchasing
• Contract Administration

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PROFESSIONAL DEVELOPMENT

• NIGP REVIEW CLASSES
• CPPO Review Class
• CPPB Review Class

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PROFESSIONAL DEVELOPMENT

• ESI CLASSES
• Negotiation Strategies and Techniques
• Project Management Professional Training
• VELOCITEACH CLASSES
• Project Management Professional Training

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PROFESSIONAL DEVELOPMENT

• DIVISION OF STATE PURCHSAING
• Public Purchasing in Florida
• Negotiation in Florida
• Contract Management in Florida
• Best Practices for Contract and Grant Management

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PROFESSIONAL DEVELOPMENT

• NIGP has 13 local chapters in Florida
• Tallahassee has a very active chapter, with about
  200 members
• The Tallahassee chapter sponsors luncheon
  meetings the second Tuesday of every month at the
  Tallahassee Leon County Civic Center
• They also sponsor NIGP professional development
  seminars

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PROFESSIONAL DEVELOPMENT

• Membership applications for the Tallahassee
  Chapter of NIGP are available from the instructor
  at the conclusion of the class, or online at the
  Chapter website, www.tacnigp.org/
• Information on other chapters is available on
  line at http//www.nigp.org/member_services/Chapte
  rs.htm
• Information on the Florida Association of Public
  Purchasing Officers is available on line at
  http//www.fappo.org

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PURCHASING MANAGEMENT

• FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS

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FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS

• Florida Certified Purchasing Agent
• Florida Certified Purchasing Manager
• Florida Certified Contract Manager
• Florida Certified Contract Negotiator

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FLORIDA CERTIFIED PURCHASING AGENT

• This designation requires
• CPPB or CPPO certification
• Completion of the Public Purchasing in Florida
  seminar
• A minimum of twelve (12) months experience in a
  full time purchasing position for the State of
  Florida or one of its political subdivisions.

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FLORIDA CERTIFIED PURCHASING MANAGER

• This designation requires
• CPPB or CPPO certification
• Completion of the Public Purchasing in Florida
  seminar
• A minimum of three years experience in a full
  time purchasing position for the State of Florida
  or one of its political subdivisions, of which at
  least one year must be in a Florida public
  purchasing management position.

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FLORIDA CERTIFIED CONTRACT MANAGER

• This designation requires
• A certificate of completion of the NIGP Contract
  Management or Contract Administration seminar
• A certificate of completion of the Contract
  Management in Florida seminar
• A certificate of completion of the Best Practices
  for Contract and Grant Management seminar
• A minimum of either twelve (12) months experience
  in a full time purchasing position for the State
  of Florida or one of its political subdivisions,
  or twelve months cumulative experience managing
  one or more contracts for a Florida state agency
  or political subdivision.

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FLORIDA CERTIFIED CONTRACT NEGOTIATOR

• This designation requires
• Certificates of completion of the NIGP General
  Public Procurement or Sourcing in the Public
  Sector seminars
• A certificate of completion of the ESI
  Negotiation Strategies and Techniques seminar
• A certificate of completion of the Negotiation in
  Florida seminar
• A minimum of twelve (12) months experience in a
  full time purchasing position for the State of
  Florida or one of its political subdivisions
• Leading a team through at least one procurement
  through negotiation or participating on three
  negotiation teams.

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PURCHASING MANAGEMENT

• INTERNET RESOURCES

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INTERNET RESOURCES

• PROFESSIONAL ASSOCIATIONS
• National Institute of Governmental Purchasing,
  www.nigp.org
• Tallahassee Chapter, NIGP, www.tacnigp.org/
• National Association of State Purchasing
  Officers, http//www.nssn.org/

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PROFESSIONAL ASSOCIATIONS (cont.)

• Florida Association of Public Purchasing
  Officers, www.fappo.org
• Institute of Supply Management, www.ism.ws
• National Contract Management Association,
  http//www.ncmahq.org

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INTERNET RESOURCES

• MARKET INFORMATION
• Bureau of Labor Statistics, Producer Price Index
  http//www.bls.gov/ppi/data
• Bureau of Labor Statistics, Consumer Price Index
  http//www.bls.gov/cpi/
• DunBradstreet http//www.dnb.com/us/

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INTERNET RESOURCES

• MARKET INFORMATION
• Purchasing Central http//www.purchasingcentral.co
  m
• Standard Poors http//www.spglobal.com
• State procurement websites at http//www.nigp.org
  /stwebsit.htm
• Arizona, California, Connecticut, Massachusetts,
  Minnesota, Pennsylvania, Texas and Virginia are
  good candidates to start your search

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INTERNET RESOURCES

• MARKET INFORMATION
• GSAs website is located at http//www.gsa.gov/Por
  tal/gsa/ep/channelView.do?pageTypeId8199channelP
  age2Fep2Fchannel2FgsaOverview.jspchannelId-1
  3263

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INTERNET RESOURCES

• STANDARDS SPECIFICATIONS
• American National Standards Institute
  http//www.nssn.org/
• ASTM International http//www.astm.org
• See also NIGP tech specs at www.nigp.org

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INTERNET RESOURCES

• FLORIDA STATE WEBSITES
• Florida Administrative Code http//fac.dos.state.f
  l.us/
• Florida Statutes http//www.flsenate.gov/statutes/
  index.cfm?ModeViewStatutesSubmenu-1
• Florida Dept. of Financial Services
  https//flair.dbf.state.fl.us/
• Florida Division of Corporations
  http//www.sunbiz.org/

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INTERNET RESOURCES

• FLORIDA STATE WEBSITES
• Division of State Purchasing http//dms.myflorida.
  com/dms/purchasing
• MyFloridaMarketPlace
• http//dms.myflorida.com/mfmp

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INTERNET RESOURCES

• FLORIDA STATE WEBSITES
• Office of Supplier Diversity
• http//dms.myflorida.com/other_programs/office_of_
  supplier_diversity_osd
• Office of Efficient Government http//dms.myflorid
  a.com/other_programs/council_on_efficient_governme
  nt

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INTERNET RESOURCES

• DIRECTORIES
• Thomas Register http//www.thomasregister.com
• Verizon Yellow Pages http//www.bigyellow.com/
• ATT Directories http//www.att.com/directory/

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INTERNET RESOURCES

• PUBLICATIONS EDUCATIONAL SITES
• Purchasing Magazine http//www.purchasing.com/
• Center for Advanced Purchasing Studies
  http//www.capsresearch.org