Bernadette DavisBernadette DavisHUB Coordinator, Texas Department of Information ResourcesHUB Coordinator, Texas Department of Information Resources

Information and Communications Technology (ICT) Cooperative Contracts

ICT Cooperative ContractsWHAT DO THEY DO?

Create savings for taxpayers by aggressively leveraging the state’s buying power to lower prices and obtain best value

Optimize the purchase of ICT commodities and services Streamlines process for customers

Reduces duplicate effortsReduces purchasing and contract cycle time

Provides ICT subject matter expertiseSimplifies the sales process for vendors

Include ICT commodity items as contracted product offeringsHardware and softwareTechnology staffing servicesOther ICT services with high customer demand (seat management, technology training, etc.)Maintenance

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Who Are DIR’s Customers? Sales by Channel

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* Telecommunications Go DIRect sales of $73.7 M were distributed to channels via prorated percentage of sales.

Education$527,937,823

53%

Local$229,679,819

23%

Out of State$275,110

>1%

State Agencies$235,461,681

24%

ICT Cooperative Contracts - Statistics

$719$805

$993

$0$100$200$300$400$500$600$700$800$900

$1,000Millions

FY05 FY06 FY07

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381 Cooperative Contracts

266 Total Resellers

121 HUB Prime Vendors

121 HUB Resellers

38% growth in the last 2 years (FY05-06)

Over $1 billion projected for FY08

ICT Cooperative Contract Sales

Where Are DIR’s Customers Located? REGIONAL DISTRIBUTION OF FY07 SALES

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$392

$219$200

$79

$34 $24 $24 $21

$0

$100

$200

$300

$400

Millions

3 2 1 4 5 6 7 8

Reg. 5$34 M

Reg. 2$219 M

Reg. 8$21 M

Reg. 7$24 M

Reg. 6$24 M

Reg. 1$200 M

Reg. 3$392 M

Reg. 4$79 M

*Telecommunications Go DIRect

sales of $73 M were distributed to regions

via pro-rated percentage of sales.

What Does DIR Sell? Sales by Commodity Type

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COMMODITY SALES % of TOTALComputers (desktops, notebooks, servers, etc.) $ 445 M 44.8 %Software 135 M 13.6 Network 131 M 13.2 Services 86 M 8.7Telecommunications (wireless communications, Internet access, etc.) 74 M 7.5

Other (peripherals, projectors, scanners, cameras, etc.) 47 M 4.7

Printers 44 M 4.4Security 8 M 0.8Data Storage 8 M 0.8Maintenance (hardware, software) 6 M 0.6Training 5 M 0.5Videoconference Equipment 4 M 0.4

TOTAL $ 993 M

Legislative Update - Effective September 1, 2007

HB 2918

Repealed Catalog Information System Vendor (CISV) program

Directed the Comptroller’s Office to adopt rules for IT purchasing

Gave DIR the ability to enter into Multiple Award Schedules (TxMAS)

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Legislative Update - Effective September 1, 2007

HB 2918

Repealed Catalog Information System Vendor (CISV) program

Customers may purchase IT Commodity items off of the DIRcontracts by simply issuing a purchase order directly to the DIR contracted vendor.

If the item is not available on a DIR contract, purchases shouldbe made in accordance with the purchasing methods established by the Comptrollers office.

Less confusion for the Vendor communityCISV Vendor vs. DIR VendorSeparate website no required

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Legislative Update - Effective September 1, 2007

HB 2918

Directed Comptroller’s Office to adopt rules for IT Purchasing

State Agencies purchase IT Commodity items off of the DIR contracts If the class/item code is not available on a DIR contract, purchases should be made via other procurement methods authorized by statute

$0.00 - $5000 – May Spot Purchase$5001 - $24,999 – Formal quotes from at least 3 vendors based on written specifications$25,000 and above – Post formal bid on ESBD for at least 14 daysEstablished new RFO process

IT Commodity Codes still marked with an asterisk on the CMBL-Automated Information System

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Legislative Update - Effective September 1, 2007

HB 2918

Gave DIR the authority to enter into Multiple Award Schedules (TxMAS)

Transferred IT TxMAS, Schedule 70 contracts from TBPC to DIRConducted review of all 130 contracts transferredKeeping approximately 10 contracts

Will be amended Will be posted to the DIR website

30 day termination letter last week for othersNew contracts on case by case basis

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Doing Business with DIRHow do vendors get on DIR’s list?

DIR competitively bids all contracts

DIR establishes Statewide Master contracts with vendors for products or services when sufficient customer demand exists

DIR posts request for offers (RFOs) on the Electronic State Business Daily (ESDB)

RFOs are generally posted for 30 days

Many contracts include multiple awards

Contracts are awarded for a specified term

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Doing Business with DIRHow do vendors become DIR resellers for a specific manufacturer/publisher?

Resellers may respond to the posted Request for Offer (RFO)

Resellers can be named as Subcontractor, by a prime vendor

Prime vendors / manufacturers can amend their HUB Subcontracting Plan (HSP) to include additional resellers

What are the requirements to be a reseller? Resellers must be authorized to sell the appropriate manufacturer/publisher’s product

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Doing Business with DIRTake advantage of the business opportunities at DIR

Use the DIR Web site as a resource for information on existing and future opportunities – www.dir.state.tx.us

Bid as the prime vendor on contract opportunities as they are posted

Work with prime vendors to become subcontractor

No DIR contract found? Ask about the New Product or Service request form (NPS)

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Doing Business with DIRDIR Store

Provides searchable access to all “Go DIRect” contracts

Provides valuable information for specific customer groups

Describes the “Go DIRect”process in detail

Gives access to current contracting initiatives

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Future Contracting OpportunitiesCurrent Contracting Initiatives

Posted on DIR’s Web site (www.dir.state.tx.us/store/cci)to improve communications between DIR's vendors and customers

Lists initiatives by procurement stagePlanningRFO Postings – links directly to the posting on the Electronic State Business Daily (ESBD) EvaluationRecent Awards

Each initiative has a brief description, expected phase completion date and contact information

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Current Contracting Initiatives – By Stage

Example

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Stage Type of Services/Products

Description Start Date

RFO Release

Contact Person

PLANNING IT Staffing Services Re-bid Staffing Services contract to allow opportunity for new vendors. Vendors with existing contracts does not need to re-bid.

Jun 07 Oct 07 Kerry.Stennet@dir.state.tx.us

Vendor Resources

Department of Information Resourceswww.dir.state.tx.us

Current Contract Initiatives www.dir.state.tx.us/store/cci/index.htm

Electronic State Business Dailyhttp://esbd.cpa.state.tx.us/

HUB Coordinator Listwww.window.state.tx.us/procurement/prog/hub/contactlist/

Calendar of Eventshttp://hub.cpa.state.tx.us/eof/

Vendor Guidewww.window.state.tx.us/procurement/pub/vendor_guide.pdf

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Technology Small Business Workshop Questions