Office of Procurement & Contracts

Director: Milo J. Crabtree

April 2006

Mission StatementProcurement & Contracts is committed to:

• Providing the best service possible to the university community while expediting the procurement of goods and services

• Authorizing contracts on any commodity/service purchased by MSU• Securing competitive quotes and bids to obtain maximum value from

the expenditures of university funds • Coordinating the procurement of goods and services for MSU• Ensuring compliance with state laws and regulations, and university

policy • Maintaining professionalism by Procurement and Contracts personnel • Maintaining reputable relations with vendors that service the university • Developing new sources of supplies and equipment to assure university

departments have an adequate number of vendors from which to obtain supplies, equipment, and services

• Abiding by the National Association of Educational Procurement's code of ethics.

Historical Overview of Major Functions

• Requisitions• Purchase Orders• Direct Pays• P-1’s: Sole Source and Emergency• Bids• State Contracts• Transactions Associated with Purchase Orders• Invoices Associated with Purchase Orders• Procurement Card

Requisitions

22040 2258123732

24612

10000

12000

14000

16000

18000

20000

22000

24000

26000

FY 02 FY 03 FY 04 FY 05

Purchase Orders

22020 2254123692 23910

10000

12000

14000

16000

18000

20000

22000

24000

26000

FY 02 FY 03 FY 04 FY 05

Direct Pays

3312835636 35747 35409

10000

15000

20000

25000

30000

35000

40000

45000

50000

FY 02 FY 03 FY 04 FY 05

P-1’s (OPT’s Request for Authority to Purchase)

205235 236

192

0

100

200

300

FY 02 FY 03 FY 04 FY 05

Bids

269236

298

223

0

100

200

300

400

500

CY 02 CY 03 CY 04 CY 05

State Contracts

4146 40424547

4062

1000

2000

3000

4000

5000

6000

FY 02 FY 03 FY 04 FY 05

Invoices Associated withPurchase Orders

51743 52404 53581 53131

1000015000200002500030000350004000045000500005500060000

FY 02 FY 03 FY 04 FY 05

Total Procurement Card Purchases

62292586611735

7238533 7523890

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

FY 02 FY 03 FY 04 FY 05

Procurement Card

• 44,786 Transactions in FY 2005

• $168 Average Transaction in FY 2005

• 534 Separate Accounts

• 701 Cards

• 173 Departments

Main Performance Objectives FY 05

• Electronic processing of documents (Invoices – Completed 11/14/05, Purchase Orders)

• Professional Staff Development (CPPB certification - staff preparing to take test; Add staff development as goals in individual performance reviews – Completed)

• Lease Purchase Program (Payment procedures to lender; Automatic monthly payment from University Depts.) Testing first order to go though process.

• Contract Processing Guidelines (Guidelines online – Completed 04/13/06)

• Internal Procedures & Training Univ. Depts. (Functional area and office manuals – Completed 12/05/05), Campus Wide Satisfaction Survey – Completed 02/01/06)

Results of Fall 2005 Customer Survey158 sent; 64 responded; response rate = 41%

Question Agreed / Thoroughly

Agreed

1.) Turn around time from requisition to purchase order is satisfactory

86%

3.) Purchasing agents have knowledge of policies & procedures

92%

4.) Invoice control clerks respond to phone calls & emails relating to PO’s, within the same day

71%*

*Note: Responses to AP Help email address is sampled to ensure they are prompt and complete

Results of Fall 2005 Customer Survey(Continued)

Question Agreed / Thoroughly

Agreed

5.) Invoice control clerk’s responses to my questions meets my needs

89%

8.) Procurement cards are easy to use 92%

10.) Procurement card training is sufficient & helpful

77%**

**Note: Ongoing training has been integrated with periodic audit visits and newsletters are sent each semester

Results of Fall 2005 Customer Survey(Continued)

Question Agreed / Thoroughly

Agreed

12.) I am satisfied with responses to state contract questions

88%

15.) Requests for bids & proposals are processed in a timely manner

77%***

24.) Generally, I am pleased with the service I receive from P&C

89%

***Note: Timing of advertising is mandated by state law

Main Performance Objectives FY 06

• Electronic Purchase Orders to Departments and Vendors

• Streamline Payment Procedures for Lease Purchase Program

• Satisfaction Survey of Procurement Employees• Procurement & Contracts Office Manual• Standard Contract Templates Available on Line• Encourage Support of Minority, Women-Owned

and Small Business Vendors

Electronic Purchase Orders to Departments and Vendors

• Purchased E-Vision Software in Fall 06• Have been working with ITS to integrate with Banner • Will begin live test of software 05/15/06• Purchase Orders to departments expected by 07/01/06• Purchase Orders to vendors expected by 12/31/06

Streamline Payment Procedures for Lease Purchase Program

• Completed benchmarking of other institutions December 2005

• Met with Carlyle Capital to discuss invoice changes• Met with IHL to discuss electronic payment method• Worked with Controller’s Office and ITS to set up

recurring payables in Banner• Pilot program began April 1, 2006• Will publish procedures on website

Satisfaction Survey of Procurement Employees

• Gathering questions for survey based on campus wide satisfaction survey

• Should be handed out 05/01/06• Expect to have results by 06/01/06

Procurement & Contracts Office Manual

• Working on rough draft• Once complete, professional staff will review for

final modifications• Will be ready for Presidential approval by 12/31/06

Standard Contract Templates Available on Line

• Make standard contracts available on the Procurement and Contracts website, adding as needed

• As of April 2006 the following contracts are on line:• Copier Rental

• Leasing of Office Space

• Standard Service Contract

• Contract to provide Services to a Third Party

Encourage Support of Minority, Women-Owned and Small

Business Vendors

• Planning a vendor expo for Fall 2006 or Spring 2007• Possible site for expo: Humphrey Coliseum• Met with Bill Burge, MS Contract Procurement

Center

Timeline for Implementation

Begin Testing E-Vision Software

05/15/05

Electronic Purchase Orders to Departments and Vendors

Purchase Orders to Vendors

12/31/06

Streamline Lease Purchase Program

Pilot - CVM04/01/06

Satisfaction Survey for Procurement EmployeesSend out Questions

05/01/06Surveys Returned

for Analysis 06/01/06

Purchase Orders to Departments

07/01/06

All Orders07/01/06

Timeline for Implementation

Rough Draftin Process04/01/06

Procurement & Contracts Office Manual

Forward for I.A. Approval

12/31/06

Standard Contract Templates On Line

Four Availableas of

04/01/06

Minority, Women-Owned, Small BusinessMeet with All

Necessary Parties 07/01/06

Vendor Expo PlannedFall 2006 or Spring 2007

Final Review for any Revisions

09/01/06

Add as NeededOn-Going