Procurement Department F&A Advisory Committee February 20, 2013

Procurement DepartmentF&A Advisory Committee

February 20, 2013

E-Procurement/Process ClarityE-Procurement/Process Clarity

Updates on BuyWays -

Project Goals

System Wide Initiative (across all 5 campuses)

Improve the quality of service to departmental users

by providing an intuitive, user friendly procurement tool.

Streamline the Procure-to-Pay process.

Direct spend to University contracts and preferred

vendors.


Provide detailed, item level spend visibility by campus

and by department to improve spend analysis

capabilities and facilitate future negotiation.

Improve sourcing efforts to fully leverage the

purchasing power of the five campuses and

President’s Office.

Increase electronic transactions for purchases

made from preferred vendors.


BuyWays Project Schedule Update

Focus Group Testing February 5th – 7th

(Biology, Psychology, Facilities, Athletics, HR)

PO/AP Core Group Testing February 19th – 20th

Focus Group Training March 11th – 22nd

Focus Group Go Live April 1st

Campus Training May - June

Full Campus Roll-out TBD (July)

Monthly Newsletter

Training – entering requisitions—specifics on descriptions

policy-

Purchase Requisitions for Services less than or equal to $10,000

Policy on Services – Paragraph 8.08.0 Entering Purchase Requisitions for Services less than or equal to $10,000

Line 1

Scope of Services defining the specific duties and responsibilities, if less than or equal to $10,000.

Period of Performance for which the services are to be engaged, with a beginning and end date, and

Rate that will be compensated for services rendered. e.g., hour, week, semester, project, etc.)



Line 2 - Travel and Expenses

If the contract includes reimbursement for travel and expenses then

it must be stated on line 2 of the requisition (e.g. reimbursement for

pre-approved travel, telephone charges, copying charges, express

mail charges, etc.)


State contracted vendors not always best price Leverage buying Other Benefits

Delivery Protections

Contact Procurement

Limit of $5,000 needs to be increased Contract Vendors Board of Trustees Policy

Board of Trustees Policy Guidelines

Exceptions to Competitive Procurement

Subject to the Procurement Policy, the procurement of materials, goods,

Commodities, leases, licenses, or services without advertising or some

Competitive procurement process should be limited to:

Purchase of materials, goods or commodities less than

$5,000 in value.

The best over-all value based on a minimum of three quotes for

procurement of goods or operational services between $5,000

and $25,000 in value.


More robust explanation on denials needed

BuyWays, new comment tool




Vendors – list of commonly used vendors on contract- Vendors will be in one place on BuyWays Will prepare list

Flexibility in choice of vendors- 18-20 Catalog vendors on BuyWays by Go-Live date 100s of Contract vendors on BuyWays Public money being utilized

Consistency in answers and customer service- Comments feature of BuyWays Improved History through BuyWays Elevate to me Report Card

Procurement Purchase Order Report Procurement Purchase Order Report Card July 2012-Dec. 2012Card July 2012-Dec. 2012

# of Orders Amount

Total # of POs 3011 $22,481,635.56

Number of PO by $ amount

Metrics Utilized for PO Report CardMetrics Utilized for PO Report Card

PO by Object Class – July 2012- Dec. 2012

PO by Class # of orders Amount

EE (Admin Expenses) 1333 $4,967,152.90

FF (Facilities Operation) 591 $2,782,542.64

GG (Energy Cost) 32 $3,470,246.29

HH (IC, CS, USC) 342 $2,983,034.86

JJ (Operational Services) 302 $841,938.62

KK (Equipment Purchases) 16 $241,682.26

LL (Lease, Pur., Rent/Equip.) 68 $224,249.40

MM (Study Abroad/Stipend) 17 $118,137.58

NN (Construction, Improv.) 182 $3,885,623.67

UU (IT Expenses) 128 $2,967,027.34

Grand TotalGrand Total 3011 $22,481,635.56

Metrics Utilized for PO Report CardMetrics Utilized for PO Report Card

Total number of POs processed – July 2012- Dec. 2012 Goods, Services and Sub-Awards

# of PO Percentage Amount

Less than or equal to 5 days 2495 83% $16,827,080.48

More than 5 days 516 17% $5,654,555.08

Total Orders 3011 $22,481,635.56

ProcardProcard Back up for Procard administrator-

Emergency – Buyer (CH), AVC (DM)Deputy Director Position

Clearer policy/procedures on Procard-

UserGuide, forms & job aids available on-line

Procard Activity Log (PAL) implemented July 2011

Attend the Procard Refresher/Reallocation Workshop

Offered monthly since February 2009

Procard website

http://www.umb.edu/administration_finance/contracts_compliance/procurement/purchasing

ProcardProcard

Procard policies are geared toward making the card obsolete,

should be more efficient-BuyWays interface University Driven Policy Only catalog vendors contracted items will be restricted on the

Procard Example of items not on BuyWays

» Conference Registrations» Publications» Most Business meeting expenses » One time repairs

Helpful assistance with Procard administration and audits- Working with Controller’s Office

OTHEROTHER

New process brought to F&A group first Will do

Streamline Account code list – where to go for correct

account codes Object Codes A-D updated & on Controller’s website Object Codes E-U presently being updated

Sole sourcing – not sure what information is needed in

finding 3 bids Instructions for No-Bid Justification form to be developed Training

Standardized templates for consultants/contractors for

justification area No Bid Justification Form, Contract for Services?

OTHEROTHER

User-friendly forms and terms- PO terms Legal/PC reviewing No Bid Justification form being reviewed

Staff traveling to Shrewsbury impacts service to departments- BuyWays travel to Shrewsbury will decrease after go live.

Additional resources in procurement for legal issues- Additional attorneys have joined Legal Department

Cell phone policy- IT Initiative-mobilization optimization

QuestionsQuestions

Documents

Procurement Department F&A Advisory Committee February 20, 2013