Stepping up to a Winning Proposal

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Doing Business with Michigan Commodities Sean L.
Carlson, Director of Acquisition Services Tony
Des Chenes, Commodities Division Director
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Acquisition Services

• Great time to work with state government
• Reforming the way we do business is exciting
• Headlines are even starting to reflect the
  changes
• Detroit News March 9, 2005 Editorial Ending No
  Bid Contracts Will Save Taxpayer Dollars
• Governing Magazine February, 2005 Grading the
  States Issue cited Michigans contracting and
  purchasing as a strength for the state. The
  study, by the Government Performance Project,
  states A distinctive feature of Michigans
  procurement and contracting procedures is its
  emphasis on ethics

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Acquisition Services

• Handle Solicitations for Goods and Services on
  Behalf of State Agencies
• General Rule
• Contracts valued at 25,000 or more are handled
  through Acquisition Services
• Contracts valued at less than 25,000 are handled
  by agency buyers
• www.michigan.gov/doingbusiness

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Acquisition Services

• Manage and Oversee a Portfolio of 11.6 Billion
  Each Year
• Solicitations in a Diverse Range of Opportunities
• Ethics and Integrity
• Competition
• Inclusion and Openness

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Commodities Categories
Food Freight Pharmaceuticals
Clothing Furniture Office Supplies
(Boise) Lab Equipment Gas/Diesel Medical
Supplies Janitorial Supplies Homeland
Security Aggregate/Sand and Gravel Energy Stee
l Salt/Ice Control Carpet/Tile
Fleet/Vehicles Michigan State
Industries Printing (Xerox and IKON) Alarm Systems
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Top Commodities

• 1 Food 187,315,472.61
• 2 Pharmaceuticals 138,045,532.00
• 3 Prisoner/Commissary 133,186,416.04
• 4 Furniture/Files/Chairs 113,635,727.00
• 5 Copiers 98,591,931.59
• 6 Office Supplies 75,110,000.00
• 7 Medical/Surgical 68,853,587.86
• 8 MSI Products 64,377,660.16
• 9 Gasoline Fuel Oil 23,172,484.60
• 10 Road Salt/Ice Control 21,768,506.67
• 11 Busses 11,686,004.65
• 12 Clothing 11,004,736.04
• 13 Carpet Tile/Installation 10,146,069.00
• 14 Uniforms/Rentals 8,121,198.44
• Paper 7,326,857.70
• Janitorial Supplies 6,880,512.00
• Laboratory Equipment 5,705,892.91
• 18 Mailing Equipment 2,038,064.00

• Total of Top Commodities
• 986,966,653.27
• Total Value of Contracts
• 1,030,397,486.81
• Total number of Contracts 275

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Commodities Buyers

• Tony Des Chenes, Division Director
• Joan Bosheff
• Darlene Burnham
• Sue Cieciwa
• Laurie Gyorkos
• Terry Harris
• Jennifer Hundt
• Rebecca Nevai
• Seleana Samuel
• Bill Walsh
• Jeff White

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Innovative Commodities Projects

• Homeland Security
• Food
• Will be discussed at length today as an example
• Pharmaceuticals
• Medical Supplies
• Fleet
• Energy
• Emerald Ash Borer
• State Fair

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Getting Started

• Become a Registered State of Michigan Vendor
• www.michigan.gov/doingbusiness
• Select Becoming a Business Partner
• Check Bid Website regularly
• www.michigan.gov/doingbusiness
• Contact Acquisition Services with Questions
• 517.335.0230
• DMB-Outreach_at_michigan.gov
• Additional Resource
• Procurement Technical Assistance Centers (PTACs)
  www.michigantac.org

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Upcoming Invitations to Bid

• Vehicles Compact to medium to heavy trucks.
  This will be a two-year contract. Due out in
  Mid-August.
• Clothing This is a contract for various types
  of clothing used by multiple agencies. Due out
  in October.
• Personal Hygiene This contract is for items
  such as shampoo, soap, toothpaste, etc. Due out
  in September.

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Upcoming Invitations to Bid

• Homeland Security Services Planning, Training
  and Exercises. Due out in the Fall of 2005.
• Patrol Vehicles This includes the Dodge Magnum,
  Dodge Charger, Chevy Impala, Ford Crown Victoria,
  and Tahoe.

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Example Food Contracts

• Purchasing Strategy for Food Contracts
• Department of Corrections
• FY04 Expenditures totaled 43.5 Million for
  Corrections, which does not include Prisoner
  Stores or Food Service Contracts
• Value of Current Contracts 98.3 Million, with
  41 Contracts and 11 Contractors

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Original Program

• Process steeped in formal review required
  extensive travel, staff time resources, and
  vendor time resources
• Three Acquisition Services Food Buyers
• Bids solicited by Food Commodity

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Original Program

• Formal Joint Evaluation Committee
• Method of Award Best Value
• Obtain State Administration Board Approval for
  Each
• New Contract
• Contract Period Extension
• Contract Value Increase

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New Program

• Goal to eliminate or decrease administrative
  burdens for both agencies and vendors
• Pre-Qualify Contractors
• Pass/Fail Selection Criteria
• Ensure Product Quality (HACCP, QA, Recall,
  Sanitation)
• Obtain Service Capabilities (Customer Service,
  Distribution/Warehousing, Order Processing,
  Staffing, Reporting)
• Single State Administrative Board Submission
• Total Program Value over Three Year Period
• Specify Pre-Qualified Vendors

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New Program Vendor Benefits

• Pre-Qualification process adds credibility for
  vendors who are approved for the
  pre-qualification list
• Change in Submission and Award processes
  decreases time and resources for both vendor and
  agencies
• Opportunities with agency level buyers still
  exist for orders of less than 25,000
• 50 Regional Facilities, each with buyers who
  have delegated purchasing authority for orders of
  less than 25,000
• Produce, Shortening, Oils, Etc.

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Delegated Purchasing Authority

• To get a list of Corrections Buyers or any
  other agency buyer
• Go to www.michigan.gov/doingbusiness
• Select Becoming a Business Partner from the
  left side
• Select Agency Procurement Staff from the right
  side

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Delegated Purchasing Authority
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Final Notes

• Visit the DMB table for a general flowchart that
  shows the steps from registration to award
• Visit www.michigan.gov/doingbusiness
• To download a copy of todays presentation
• To link to vendor registration
• To review current Invitations to Bid

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Q A