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 level’s mission is set forth in a “Mission Analysis” document which contains five main parts.

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MISSION ANALYSIS

1. MISSION STATEMENT (which itself has two parts)

MISSION WHAT and WHY: “What” is your mission. “Why” is the mission of the level ABOVE.

2. GOALS (measures): Objectives and dates (SMART acronym: Specific, Measurable, Achievable, Realistic, Timely ).

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MISSION ANALYSIS

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

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MISSION ANALYSIS

4. TASKS: A four-column table showing

• Specified tasks• Implied tasks• Resources• Time (date to accomplish)

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MISSION ANALYSIS

5. FREEDOMS & CONSTRAINTS• Freedoms (things that help you

accomplish your mission)• Constraints (things that impede)

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MISSION STATEMENTS

SECRETARY OF DMSTo 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 PURCHASINGTo 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 at:http://www.flhsmv.gov//intranet/PTurchasing/html/vgan.htm

1. AGENCY PROFILE 2. OFFICES OF PURCHASING AND LEASING3. GUIDING PRINCIPLES 4. PURCHASING ACTIVITY5. PURCHASE METHODS6. MINORITY BUSINESS ENTERPRISE UTILIZATION7. LEGAL AND ETHICAL REQUIREMENTS8. VENDOR REGISTRATION9. MARKETING APPROACH10. BID INFORMATION11. SPECIAL PROBLEMS12. 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

1. Service issue (perhaps drop down) & date

2. Were you treated in a professional & courteous manner by staff?

3. Was response timely?4. Was your transaction processed

accurately & in accordance with law & rule?

5. Rate overall satisfaction with your experience (provide a scale).

6. 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 & MEASURE1. EFFECTIVENESS2. EFFICIENCY3. ECONOMY4. 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 Considerations3. Certification of Drug-Free Workplace4. RESPECT5. 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 LEVELTIMELINESSEFFECTIVE DELIVERY

FINANCIAL LEVEL (Purchases & Processes)COST REDUCTIONCOST AVOIDANCEREVENUE

PROCESS LEVELLEGALITYETHICSPROFESSIONALISM

STAFF LEVELADVICE, 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 Harper’s 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 COURSES1. Sourcing in the Public Sector 2. Planning, Scheduling & Requirement

Analysis3. Developing and Managing RFP's4. Legal Aspects of Purchasing5. Contract Administration

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PROFESSIONAL DEVELOPMENT

NIGP REVIEW CLASSES1. CPPO Review Class2. CPPB Review Class

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PROFESSIONAL DEVELOPMENT

ESI CLASSES1. Negotiation Strategies and

Techniques 2. Project Management Professional

Training

VELOCITEACH CLASSES1. Project Management Professional

Training

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PROFESSIONAL DEVELOPMENT

DIVISION OF STATE PURCHSAING1. Public Purchasing in Florida2. Negotiation in Florida3. Contract Management in Florida4. 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/Chapters.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 MANAGERThis 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 MANAGERThis 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 NEGOTIATORThis 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/

Dun&Bradstreet http://www.dnb.com/us/

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INTERNET RESOURCES

MARKET INFORMATION Purchasing Central

http://www.purchasingcentral.com Standard & Poor’s http://www.spglobal.com State procurement websites at:

http://www.nigp.org/stwebsit.htmArizona, California, Connecticut, Massachusetts, Minnesota, Pennsylvania, Texas and Virginia are good candidates to start your search

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INTERNET RESOURCES

MARKET INFORMATION GSA’s website is located at

http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=8199&channelPage=%2Fep%2Fchannel%2FgsaOverview.jsp&channelId=-13263

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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.fl.us/ Florida Statutes

http://www.flsenate.gov/statutes/index.cfm?Mode=ViewStatutes&Submenu=-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

MyFloridaMarketPlacehttp://dms.myflorida.com/mfmp

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INTERNET RESOURCES FLORIDA STATE WEBSITES

Office of Supplier Diversityhttp://dms.myflorida.com/other_programs/

office_of_supplier_diversity_osd Office of Efficient Government

http://dms.myflorida.com/other_programs/council_on_efficient_government

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INTERNET RESOURCES DIRECTORIES

Thomas Register http://www.thomasregister.com

Verizon Yellow Pages http://www.bigyellow.com/

AT&T 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