Division of Purchasing

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Division of Purchasing Materials Management

Study Commission for Consolidation of Services
Purchasing Committee Briefing
Monday, August 29, 2005
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Presentation Outline

• Comparison of Services
• Who We Are
• Cooperative Purchasing
• What We Do
• How We Do It
• Cost of What We Do (Budget)
• Selected Performance Measures Quality of
  Service
• Public Works Responsibilities

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• CITY OF ORLANDO
• Purchasing Materials Management Division
• General Services Administration Department
• Manager Jon Mead
• Total Staff FY 2004-05 38 ( 2 appointed, 2 non
  bargaining, 34 SEIU)
• Budget FY 2004-05 2,545,809
• --------------------------------------------------
  -----------
• Services Provided
• Purchasing of goods services incl. professional
  
• services / Contract Administration / Develop
• and establish standards specifications for all
• city departments / Provide interoffice
  external
• mail services / Operate city stores warehouse
• delivery service / Operate vehicle equipment
  
• parts warehouse incl. pick up delivery. /
• Maintain 23 fuel distribution centers incl. 3
  major
• centers / Conduct auctions of city vehicles,
• equipment, and other surplus items / Provide
• supply support for Facilities Management

• ORANGE COUNTY Purchasing
  Contracts Division Administrative Services
  Department
• Manager Johnny Richardson
• Total Staff FY 2004-05 29
• Staff covered by Collective
• Bargaining None
• Budget FY 2003-04 1,819,956
• --------------------------------------------------
  -----------
• Services Provided
• Procurements Specifications /
• Encumbrances Releases / Contracts
• Administration
• Where Services Provided
• Internal division servicing all Orange County
• Departments
• Agreements with the City
• YES

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• CITY OF ORLANDO
• Division Purchasing Materials Mgmgt.
• Department General Administration
• Manager Kevin Walsh
• Total Staff FY 2004-05 Four ()
• Covered By Collective Bargaining 4
• Budget FY 2004-05 255,999 ()
• () -- These figures are included in Purchasing
  Materials Management
• --------------------------------------------------
  -----------
• Services Provided
• Field Investigations
• Contract Compliance
• Business Assistance
• Marketing Outreach
• M/WBE Certifications
• .
• Where Services Provided
• All city departments
• Agreements With Orange County NO

• ORANGE COUNTY
• Division Business Development
• Department Administrative Services
• Manager Fitzhugh Long
• Total Staff FY 2004-05 9
• Staff covered by Collective
• Bargaining 0
• Budget FY 2003-04 716,529
• --------------------------------------------------
  -----------
• Services Provided
• Field Investigations
• Contract Compliance
• Business Assistance
• Marketing Outreach
• Where Services Provided
• Internal division servicing all Orange County
• Departments

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Purchasing Division -- Who We Are

• MISSION STATEMENT
•  
• The mission of the Office of Purchasing and
  Materials Management is to purchase, rent, lease
  or otherwise acquire goods and services at the
  lowest possible cost, consistent with the quality
  needed to provide the best possible service to
  the public, utilizing the taxpayers money most
  efficiently, through increased competition

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Purchasing Materials Mgmt. Organization Chart
General Administration Director201
Purchasing/Materials Mgmt. Director160
163 - Property Control(3)
161 -- Minority/Women Business Enterprise (4)
160 -- Purchasing (16)

165 -- Fleet FacilitySupply/Support (9)
164 - City Mail Services(2C3SC)
166 -- City Stores (4)
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Purchasing Division -- Who We Are

• Purchasing Ordinance
• The City of Orlando Purchasing Code, Chapter 7 of
  the City Code, governs the
• purchase of goods and services by the City. This
  ordinance
• Places authority and responsibility for all city
  purchases under the General Administration
  Department. Purchasing develops policies,
  procedures, and rules to fulfill the requirements
  of the law.
• Permits Purchasing to delegate authority for
  purchases to other city departments.
• Ensures that fair and open competition exists in
  all procurement activities in order to avoid the
  appearance of and prevent the opportunity for
  favoritism and to inspire public confidence that
  contracts are awarded equitably and economically.

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Purchasing Division -- Who We Are

• Received the prestigious Achievement of
  Excellence in Procurement Award in 2000, 2003,
  2004 and 2005 from the Institute of Supply
  Management. Only 61 of 2000 organizations
  received this accreditation four times.
• First local government procurement entity to
  receive the National Institute of Governmental
  Purchasing (NIGP) Outstanding Agency
  Accreditation Achievement Award for the period
  of September 28th, 1999, through September 28th,
  2005. While the NIGP membership represents over
  2100 governmental agencies throughout the United
  States and Canada, only 58 governments have
  attained this distinction.
• Achieved performance ratings in the top 20
  percentile of the ICMA Annual Survey of
  Governmental Agencies..

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Purchasing Division -- How We Cooperate

• To take advantage of the cost savings achieved
  through high volume
• purchasing power, the Division participates in
  cooperative purchasing
• programs with other governmental agencies
  including GSA, State of
• Florida, Orange other counties, SICOP and
  School Boards. This
• cooperation significantly lowers the cost of
  goods and services and
• increases efficiency. In recent months, the
  Purchasing Division has
• cooperated with other governmental agencies in
  over 65 contracts. Some
• examples are shown below.
• GSA City utilizes GSA Technology contracts
  which are the only
• ones GSA allows for use by other agencies.
  However, the City has been
• successful in negotiating GSA prices terms for
  the purchase of heavy
• construction equipment and other items.

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Purchasing Division -- How We Cooperate

• SICOP This is a cooperative purchasing group
  comprised of government
• agencies within the six surrounding counties in
  Central Florida. Examples
• of cooperative contracts include Bulk Gasoline
  purchase, Agricultural
• Chemicals, Chlorine, and Asphalt Products. In
  some of these,
• the City is the Lead Agency.
• State of Florida Contracts
• Computer Equipment, Networking Equipment,
  Software, Police Vehicles,
• Office Paper, Office Equipment, Carpet, Police
  Ammunition, Body
• Armor, Ice machines, Park Equipment, Cellular
  Services,
• Traffic Signals, Time Clocks, Tools, Street
  Surfacing, Excavator
• Purchases.

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Purchasing Division -- How We Cooperate

• Orange Other Florida Counties Contracts
• Lot Cleaning, Job Order Contracts, Building
  Envelope Consultants,
• Furniture Movement, Road Base Material, Portable
  Office Equipment,
• Disaster Recovery Services, Polyurethane
  Materials, Safety Shoes, Radio
• Accessories, Coarse Aggregate, Tires.
• In addition, we cooperate with OUC for Copying
  Equipment and Tree
• Maintenance. With the School Board, we
  cooperated in Life
• Accidental Insurance, Dental Insurance, Bus
  Service and Short Term
• Disability Insurance contracts.
• Examples of City contracts used by Orange County
  include Lumber
• Plywood , Electrical Supplies and Herbicides.

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Purchasing Division What We Do

• The Purchasing Office purchases a variety of
  commodities and services, including equipment,
  materials and supplies for all City departments
  by the most efficient and cost effective means
  while maintaining rigid quality standards set by
  the end users.
• The latest technologies (e-bid, Internet) are
  utilized to improve customer service, efficiency,
  and quick response. .
• Provide decentralization of authority by
  effective use of Pro Cards.
• Initiate and administer over 700 Annual Contracts
  covering everything from nuts and bolts to
  technology services, operational and professional
  services.

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Purchasing Division What We Do

• Develop and establish industry accepted standards
  and specifications for supplies, equipment and
  services, to ensure quality products and services
  from vendors.
• Ensure Minority and Women-Owned Businesses have
  the maximum feasible opportunity to participate
  in the performance of City contracts.
• Operate a City Stores and Vehicle Parts warehouse
  to provide customers readily available, commonly
  used parts and supplies.
• Provide support to Citys Facilities Division by
  maintaining and managing commonly used parts
  inventory, processing order entries, including
  pick-up and delivery of supplies.
• Provide timely and cost effective mail services
  to all City departments including inter-office
  mail service and U.S. mail services, shipping and
  courier services.

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Purchasing Division How We Do It

• Purchasing Contracts
  Administration
• This Program is currently authorized sixteen (16)
  positions including two appointed positions,
  primarily responsible for management of various
  programs, purchasing services and supplies for
  all city agencies and administering annual
  contracts.
• Procurement methods used by this office include
  competitive sealed bidding, requests for
  proposals, telephonic and electronic quotations.
  
• Purchasing has completed transition from a
  paper-driven process to a fully capable
  e-procurement environment.
• Procurement Card purchases (up to 5,000 limit)
  expedites and streamlines the process of
  purchasing and provides delegation of authority
  to end user departments.

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Purchasing Division How We Do It

• Purchasing and Contracts Administration
• A new purchasing information on demand system
  was implemented by Purchasing in an effort to
  lower the cost of purchasing and to streamline
  the bid process. The new web site provides
  24-hour access
• to the latest Purchasing Office information.
  
• Citys Internet web site was enhanced by adding
  document images of over 700 active annual
  contracts including contract terms, amendments,
  pricing and renewals.
• Improved customer service by placing bids, bid
  notices, bid awards, vendor applications and
  quotes on the Internet, to provide a quicker
  response to user need, vendor satisfaction and a
  reduction in paper flow.
• The City is a member of SICOP and we utilize
  State of Florida term contracts, Federal Supply
  Schedules, Orange County and other governmental
  agency contracts.

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Purchasing Division How We Do It

• Minority / Women Owned Business
  Enterprise
• The M/WBE Program is currently authorized four
  (4) positions and is primarily responsible for
  ensuring that the City meets its goal of awarding
  at least twenty-four percent (24) of the Citys
  annual monetary value of contracts and
  subcontracts for supplies, services and
  construction to city certified minority and women
  owned businesses.      
• Through consistent educational and outreach
  efforts to increase M/WBE participation, the City
  realized an increase of 73 in the number of
  certified M/WBEs in the last 10 years, while
  awarding over 250 million in contracts to M/WBE
  firms
• Due to outreach efforts, more minority firms are
  responding as prime consultants or partnering and
  joint venturing with non minority firms.
• Over 600 M/WBE applications for certification and
  over 700 compliance audits and site visits were
  processed during FY03/04.

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Purchasing Division How We Do It

• Fleet Facilities Support
• The Fleet/Facility Supply Support Program is
  currently authorized nine (9) positions five (5)
  to operate the Fleet Management parts warehouse
  on a two-shift basis and four (4) to provide
  procurement and supply support to the Facilities
  Management work crews.
• A total of 3,416,000 was purchased for the Fleet
  operations this past year including 1.9 Million
  for fuel purchases. This section also maintains
  the Citys 22 fuel centers and a car wash
  facility at the Orlando Police Headquarters.
• In an average 6 month period, this program
  processes six thousand six hundred forty-one
  (6,641) facilities maintenance requisitions with
  a value of 2,838,627.
•  

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Purchasing Division How We Do It

•   Property Control
• Property Control is currently authorized three
  (3) positions primarily responsible for annually
  inventorying over 20,000 capital asset items
  worth more than 225 Million and conducting
  auctions/sales of surplus property which result
  in an average of over 1 Million dollars per year
  in revenue for the City.
• Expanded use of on-line auction services to
  advertise and sell the Citys surplus property
  through the Internet, has resulted in achieving
  better sales prices for the Citys assets.

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Purchasing Division How We Do It

•   City Stores
• City Stores is currently authorized four (4)
  positions primarily responsible for stocking and
  issuing common supplies to City agencies. Sales
  this past year were over 900,000 and the latest
  market basket survey found that prices charged
  by City Stores were over 17 lower than prices at
  selected retail stores.
• City Stores initiated a wireless sales order
  system supported by the Citys financial software
  system reducing the time needed to complete sales
  transactions, inventory transfers and year-end
  inventory. Stock availability has gone up to
  ninety-five (95).

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Purchasing Division How We Do It

•   Mail Services
• City Mail Services is currently authorized two
  (2) City positions and three (3) contracted
  positions. An average of 20,400 pieces of
  interoffice mail and 42,500 pieces of incoming
  U.S. Mail are processed monthly.  
• Utilizing automation for production mail,
  folding/inserting equipment, address
  management/mailing software and inkjet printing
  capability, Mail Services has reduced the burden
  of mass mailings on clerical staff and assisted
  offices in reducing overall postage costs.
• Extensive security measures have been implemented
  since the 911 tragedy including screening of all
  incoming mail. The screening process involves
  scanning all incoming mail, packages parcels
  using an x-ray scanner and a quarantine
  workstation for bio-agent containment. This
  service was recently expanded to include all
  deliveries to the CNL Financial Services Group.
•  

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Purchasing Department Cost of What We DoTotals
By Program

FY04/05 Budget FTEs 160
Purchasing
1,202,223 16 161 M/WBE
255,999 4 163 Property
Control
167,493 3 164 Mail
Services
216,738 2 165
Fleet / Facility Support 476,193
9 166 City Stores 202,778
4 995 Auctions . 24,385
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TOTAL 2,545,809 38 salary, benefits
operating supplies included in above figures
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Selected Performance Measures
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Selected Performance Measures
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Selected Performance Measures.
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Public Works Responsibilities
Develops, advertises, awards and provides project
management services for all contracts in the
following categories .. Major construction
projects including buildings, roads, bridges,
and other projects that involve public health and
safety . Architectural and Engineering
services . Land surveying services . All
Wastewater Division Construction and Engineering
Contracts
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Questions ?