ICT Procurement

ICT Coordinators Information Day – September 2008

Peter Dowling A/ Commercial Director – StrategyDET Procurement Directorate

ICT Fleet Manager Ph 1800 654 310 Fx 1800 808 385Email ICTfleetorders@det.nsw.edu.au

Agenda• ICT procurement in context

• ICT procurement process change

• ICT fleet desk statistics

• ICT hardware

• IWB Standards

• Imaging devices

• Open forum / Issues / Questions

Though small relatively to construction and labour hire, ICT procurement has wonderful opportunities for savings

2006-2007 expenditure DET Hardware Software Telephony ICT

Expenditure - schools $1,067.8M $79.2M $1.2M $8.4M $88.8M

Expenditure - TAFE $456.6M $23.1M $5.5M $7.6M $36.2M

Expenditure - corporate $1,270.9M $87.7M $20.5M $67.2M $175.4M

Expenditure - total $2.85B $190M $27.2M $83.2M $300.4M

Suppliers - schools 67,768+ 140 8 7 155

Suppliers - TAFE 36,504 484 399 217 1,100

Suppliers - corporate 17,268+ 128+ 100+ 100+ 328+

Suppliers - total 121,540+ 752+ 507+ 324+ 1,600+

Invoices - schools 201,403 2,472 104 233 2,809

Invoices - TAFE 424,588 5,192 2,184 6,098 13,474

Invoices - corporate 94,197+ 1,019+ 328+ 7,515 8,862+

Invoices - total 720,188+ 8,683+ 2,616+ 16,462 25,145

ICT procurement in context

Delivering procurement reform• DET is one of the largest procurers of ICT hardware, software

and telephony by any measure

• ICT unit pricing has been coming down and therefore worthwhile to explore through volume commitment

• ICT achieved economies of scale through T4L program

• DoC has recently created better SCCB contracts – Panel eg GTAs, electronic whiteboards, imaging devices

– ITS 2007 with unit pricing

• DET volume commitment with compliance through programs has been given respect by suppliers eg whiteboards, PCs, imaging devices, video conferencing

ICT procurement process change

Delivering procurement reformCoordinated planned Procurement• State based contracts regardless of location/source of funds

• Divide and conquer by suppliers is diminishing eg Fuji has given better pricing by removing the need for marketing programs

• Total lifecycle costing evaluation based on social, economic and environmental evaluations

• Reduced ICT hardware suppliers from 27 to 8 and ordering to a single central location

• Fit for purpose standard classes of device.

• Central source of all DET standard ICT items across DET/TAFE

• Greater accountability from core DET vendors through KPI management

• Roadmap to full asset management, tracking and fleet management for ICT hardware.

ICT procurement process change

ICT Procurement RoadmapHistorically April 16th 2008 + Future

Buying process Ad-hoc/central Central Automated

Asset identification Ad-hoc Central Automated

Asset utilization measurement

When available When available Automated

Asset management

Automated

ICT consumables Ad-hoc/ decentralised

Ad-hoc / decentralised

Centralised

Field service Ad-hoc and localised

Ad-hoc and localised

Direct/Partner model

Help desk and support

Combination of local and central

Combination of local and central

Combination of local and central

Vendor management

Relationship based, unpredictable

Formalising engagement standards

Standards and behaviours across all lines

ICT procurement process change

Needs analysis

Requirements analysis

Requisition

Approval

Purchase order

Delivery

Installation

Training

Audit, leases terminating, growth, replacements

A.Form & expenditure approved

Web check, A.Form raised

A.Form reviewed by vendor

A.Form check, PO raised & sent

Vendor delivers PO to site

Fleet Manager arranges install

Vendor device instruction

Order process

ICT procurement process change

Ordering Process – Imaging(Copiers, Printers, Faxes)

DET Intranet site

- Select Department Resources

- Select A–Z Directorates

- Select Procurement

Selecting Device

- Select Supplier: Fuji Xerox, Hewlett

Packard, Ricoh or Canon

- Select device required and

complete Information Requirements

Form (IRF)

Final Stage

- Supplier checks completed

authorisation form which is then

processed by the ICT Fleet Desk

Supplier

- Supplier will contact customer

- Email is sent with an authorisation

form that needs to be completed and

sent back to the supplier

For assistance at any time call the DET Fleet desk on 1800 654 310

ICT procurement process change

Ordering Process - Discretionary(Interactive Whiteboards and Peripherals)

DET Intranet site

- Run a search for ‘Global Parts List’

(GPL)

- All equipment is listed here for

Connected/Interactive Classrooms

Ordering

- Call/Email ICT Fleet Desk:

- 1800 654 310

- ictfleetorders@det.nsw.edu.au

- Ensure quantity and model are

included

Processing

- ICT Fleet Desk will send out a

checklist and site assessment to be

completed and returned

- Once returned an Authorisation

Form and Quote will be sent for

signature

Acceptance & Delivery

- On receipt of Authorisation Form

the order will be processed and

delivery ETA is 10 working days

- ETA to installation is approximately

3/4 weeks after delivery.

For assistance at any time call the DET Fleet Desk on 1800 654 310

ICT procurement process change

Progress / Changes

Product

• Removed requirement for all items to have installation (with conditions)

• Allowed for conditional direct ship

• Componentised large, complex product lists to single SKU’s

Process

• Streamlined process of many smartbuy activities (product add, ordering)

• Building reports

• Requested interface for daily live vendor data links.

• Made vendors accountable for full KPI’s

ICT procurement process change

Known teething problems

Systems• Introduction of NSW

Commerce “Smartbuy” program as core catalogue source.

• Updating core DET systems in progress to meet new standards.

• Backlog

Services• Addressing small

service/install item comparisons

• Non aligned vendor marketing.

• Re-training aligned vendor behaviours to meet DET Standards.

A process of constant enhancement and refinement.

ICT procurement process change

The Backlog

Why?

• Delays in standard development

• Non “Fit for Purpose” purchasing

• Opportunistic Supplier marketing

• Delays in vendor shipments.

Expediting

• Backlog cleared 1st week of Term 4

• Additional 50+ install staff, flying squads.

• Inventories / supplier rules

• All business as usual (BAU) require site surveys / self assessments

ICT procurement process change

Telephone Statistics

Number of calls coming into the DET Fleet Desk 3,766

Average time spent on incoming calls 3:01 mins

Number of calls made to sites, from the DET Fleet Desk 10,775

Average time spent on outgoing calls 2:02 mins

Number of abandoned calls 155

SLA 80% Number of calls answered <20 secs) 69%

The following data is from a reflective date range of between the 31st March 2008 to 27th August 2008

ICT fleet desk statistics

Processing Statistics

Total number or orders placed through the DET Fleet Desk 1,706

Total number of Imaging (printers, faxes, etc) orders 1,021

Total number of discretionary orders 685

Total number of emails into “ICTFleetOrders”

(All queries, quotes, orders & site assessments) 2,236

Total number of emails from DET Fleet Team3,106

Printer Order Value $10.1m

IWB / Connected Classroom Value $6.3m

The following data is from a reflective date range of between the 16th April 2008 to 27th August 2008 and shows all orders placed by the

DET Fleet Desk for discretionary and imaging orders

ICT fleet desk statistics

Pricing test

• If a vendor is offering similar product, model and warranty across the state, vendors on program will be required to match this.

Please send comparison data for review to ICTfleetorders@det.nsw.edu.au

ICT hardware

When comparing value . . .

EG: low cost long throw Epson X5 Consider

• Is this the same type or class of device

• What is the warranty?

• Is service to DET standard across NSW?

• Am I bundling up service and components correctly?

Is not equivalent to

High quality short throw Epson 400w

ICT hardware

Why have approved standards

Standards provide

• Uniformity in service delivery.

• Least risk of unpredictable outcomes.

• Reduced purchase and support costs

• Known platforms to create outcomes.

Standards mean

• Testing and approving products and solutions

• Adopting standards for a time period until they are superseded.

• Training and enforcing usage across the enterprise

• Helping to predictably grow service to the department

IWB standards

Approved Interactive Whiteboards

Stylus Touch (recommended)

Panasonic UB-T780

• 77” diagonal

• Pen/Stylus interface

• Fine point accuracy

• PET-coated metal plate surface

• $1443 ex GST

Finger Touch (optional)

Smartboard SB680

• 77” diagonal

• Touch & stylus interface

• Finger point accuracy

• Polyester surface

• $1958 ex GST

• 64” model available ($1728 ex GST)

IWB standards

Approved Data ProjectorsUltra Short Throw

(8cms - recommended)

Sanyo PLC-XE50• Little to no eye

contact, located above board

• Installs on wall above board

• $2443 ex GST

Short Throw(1-2 metres)

Long Throw(2-9 metres)

Epson EMP-400W• Some eye contact,

located above/in front of teacher

• Install on wall or roof mount

• $1983 ex GST

Dell 1409x• Some eye contact,

located in front of teacher

• Install on roof or free standing

• $1063 ex GST

IWB standards

Ultra Short Throw Projector

• Projects square from 8cms

• Flush mount to wall, less material required

• Low/no glare as bulb is closer to board than teacher

• Alarm/secure

The UST is the DET preferred projector solution

IWB standards

Why were these chosen?

• Short throw / UST projectors give best teacher/student experience.

• Best price/performance and fit for purpose.

• Product compatibility with core systems, future roadmap.

• Warranty and coverage capability across NSW for 4 years

IWB standards

Calculating equity - productContracted item Cost Oct 07 (or

market equiv)Contract cost

Saving in $

Saving in %

Smartboard 680 IWB $3109 $1958 $1381 44%

Panasonic TB780 IWB $1732 $1433 $299 17%

Sanyo PLC XE50 $3799* $2433 $1366 35%

Epson EMP 400w $2599* $1983 $616 24%

Dell 1409x (equiv) $2530 $1063 $1467 58%*unavailable in 2007, pricing based on current non DET market

Also calculate new statewide SLA’s:• 4 year warranty• 10 day delivery SLA’s anywhere in NSW• NBD/2BD Warrantee Service anywhere in NSW

IWB standards

Approved Flat Screen Monitors42 inch flat panel monitor

• LG-42LG30 (recommended)

• High Definition Tuner

• 1366 x 768 resolution

• 2 HDMI & component inputs, 1 S-video

• PC Input and RS232 Control port

• $1618 ex GST

42 inch flat panel monitor

• Phillips BDL4231C

• HDMI input

• 1366 x 768 resolution

• 2 HDMI & component inputs, composite, S-video, smartcard

• PC Input and RS232 Control port

• $1823 ex GST

IWB standards

Video Conferencing Equipment

• Tandberg selected as chosen VC Vendor– Meet equitable service

standards across state

– Best price/fit for purpose

– Compatibility with core applications

– Final pricing and SKU’s to be announced imminently

IWB standards

When do I need installation

Is required for ordering• Full Interactive Classroom

• Ultra Short Throw projectors

• Any fixed cable infrastructure (except in TAFE)

• If you are building the basis for a Full connected Classroom (and this is the first components)

• The fleet desk will always recommend installation

Is not required for• Demountables

• If it makes economic sense for a GA/Parent/CC who carries insurance and qualifications and can follow standards of installation.

• If the school procures installation externally it must be through DET Fleet Manager.

IWB standards

Calculating equity - installation

•Set fixed prices across all NSW regardless of location•Previous pricing varied significantly dependant on location, impacting equity.

•Previously many sites attracted tariff’s / flag falls for services

•Standards of service varied depending on local relationships

•Uniformity across state was not achieved, impacting statewide education delivery.

•Fleet Management will onboard regional NSW VAR’s to continue to refine statewide service model and provide equity**.

IWB standards

Hunter TAFE (5yr life)

• Completed fleet audit

• 45% reduction in fleet

• device improvement

• cost/print reduced $4.9m

PROCUREMENT – IMAGING DEVICES - EXAMPLES

Silverwater High School (5yr life)

Completed fleet audit

• 54% reduction in fleet

• device improvement

• cost/print reduced $200k

PRINT PROCESS REDESIGN

Imaging devices

Of the first 675 devices sold since the moratorium was lifted

Buyers paid $3million LESS

‘Harvested’ $565,000 in margin

$3.565m total savings

• Priority – to rightsize the fleet through changing leases to purchases and selecting the best machines!

• We need your help to “bring out the dead”

Imaging Devices – Savings

Imaging devices

More Information

Please send questions or comments to:

DET ICT Fleet Manager

Ph: 1800 654 310

Fax: 1800 808 385

Email: ICTfleetorders@det.nsw.edu.au

IT Product PurchaseIT Product Purchase

Buying guidance

Complete Authorisation

Form

AssessRequirement

Review Authorisation

Form

Receives PO/Despatches

Order

ReceivesProduct

Receives& Checks

Invoice/GRN

ProcessInvoices

InvoiceSchools

SCHOOL

FLEET MANAGER

SUPPLIER

PROCUREMENT

FINANCE

Reviewsinvoice

DebitsSchools

ReceivesTraining

ProvideInformationOn Intranet

Approves Debit

Expediting

SiteAudit/

Assessment

DeviceInstallation/

Training