Embed Size (px)
Citation preview
FY 2013 Annual Report Purchasing Division
Finance and Administrative Services Department
Purchasing Division
Broward County Board of County Commissioners
www.broward.org/Purchasing
Page 1
Table of Contents
Message from the Director of Purchasing ...........................................................................................3
Mission Statement .............................................................................................................................4
Organizational Structure ....................................................................................................................5
Section Introduction ..........................................................................................................................6
Commodities/General Services, Construction and Central Warehouse/Logistics Unit ......................... 6
Centralized Services Unit .......................................................................................................................... 6
Professional Services Unit ........................................................................................................................ 6
Administrative/Operational Support Services Section ........................................................................... 6
Information Technology Unit ................................................................................................................... 7
Resource Center Unit ................................................................................................................................ 7
Statutory Authority ............................................................................................................................8
Purchasing Division Accomplishments ................................................................................................9
Recognitions, Awards, Accreditations, and Certifications ...................................................................... 9
Organizational Improvements ............................................................................................................... 10
Administration ........................................................................................................................................ 12
Professional Services .............................................................................................................................. 12
Goods/Services/Construction ................................................................................................................ 13
Centralized Services ................................................................................................................................ 13
Technology ............................................................................................................................................. 13
Resource Services ................................................................................................................................... 14
Customer Service and Outreach ............................................................................................................. 16
Financial Statistics/Procurement Activities for Fiscal Year 2013 ......................................................... 18
Master Agreement Awards .................................................................................................................... 18
Page 2
Awards by Agency .................................................................................................................................. 21
Vendor Participation .............................................................................................................................. 22
Contracts Awarded to Vendors by State, County and City ................................................................... 23
Statistical Comparison with Previous Years ....................................................................................... 26
Contract Awards ..................................................................................................................................... 26
Vendor Awards by Region ...................................................................................................................... 27
Value Added Cost Savings ...................................................................................................................... 28
Procurement Operations .................................................................................................................. 29
Procurement Processing Times .............................................................................................................. 29
A Change of Methodology for Procurement Processing Times commencing in FY 2014..................... 30
Purchasing Cards (P-Cards) .................................................................................................................... 31
Delegated Purchasing Authority Audit Program .................................................................................. 35
Organizational Development Program ................................................................................................. 36
Central Warehouse Operations ........................................................................................................ 37
Surplus Property Disposal ...................................................................................................................... 37
Emergency Preparedness Operations .................................................................................................... 37
Social Responsibility......................................................................................................................... 38
Certified Vendor Participation Program ................................................................................................ 38
Living Wage Program ............................................................................................................................. 39
Major Projects ........................................................................................................................................ 40
Organizational Focus for Fiscal Year 2014 ......................................................................................... 43
Page 3
Message from the Director of Purchasing
The past couple of years have served as a testimonial to the importance of procurement and the critical role
it plays in the road to recovery from one of the worst economic downturns in this nation’s history. Last year
was unprecedented with over $1 billion in contract awards. This Fiscal Year (FY) 2013, we exceeded our
normal average awards by awarding over $660 million in contracts. The sustained trend of strategically
spending our dollars above our normal levels, making major investments to improve Broward County’s local
infrastructure are paying dividends, and the benefits are being enjoyed by our residents, businesses and
visitors.
This year’s message from the Mayor addressed the County’s commitment to the residents of Broward
County, and I quote: “Broward County means business.” “It’s more than just a theme for this year; it’s a
way of defining Broward County and what we are about, which is outcomes and results.” (Mayor Barbara
Sharief)
As a result of the County’s strategic approach, our local economy is gaining strength. Broward County
businesses have been able to create more jobs and more residents are employed today than last year,
because of our commitment to reinvest the County’s revenues back into our community. The
unemployment statistics and our very own performance data support this statement. For example, last year
in September 2012, the unemployment rate was 7.6%. As of August 2013, the unemployment rate has
plunged to 5.8%, making Broward County one of the fastest major metropolitan areas to sharply decrease
the unemployment rate. This is well below the unemployment rate for the state of Florida which is 7%, and
of our neighboring counties to the north and south, Palm Beach County 7.5% and Miami-Dade County 9.3%,
respectively, for the same period. During FY 2013, the total contract dollars awarded to vendors conducting
business with Broward County was $663,922,700, in which 41.5% or $275,150,233 was awarded to vendors
located within the County; 58.8% or $390,322,670 within the tri-county area (Broward, Palm Beach and
Miami-Dade); and 78.1% or $518,859,582 within the State of Florida.
Although our future looks prosperous, let’s focus on the great things that are happening now! It is my
distinct honor to present the Purchasing Division Annual Report for Fiscal Year 2013, as it illustrates, “Our
Best. Nothing Less.” service to Broward County.
I would like to extend my sincere appreciation to the Broward County Commission, the County
Administrator and her entire team, and all of our great partners throughout the County for their support. To
those who contributed to this report, and to my entire staff for their commitment, effort and dedication, I
say, thank you.
Brenda J. Billingsley, Director
Page 4
Mission Statement The Purchasing Division provides a unified purchasing system that ensures integrity and fairness, with
centralized responsibility for oversight of solicitations, vendor selection, negotiation, award, contract
management, reporting, disposal of surplus property and emergency logistical support for the benefit of
Broward County agencies.
The major objectives are:
to comply with the comprehensive federal, state and county procurement and contracting laws
which govern expenditure of public funds
to provide timely responsive support to client agencies
to generate broad participation and competition among potential suppliers and contractors
to ensure quality products and services at competitive prices
to ensure equal opportunity to all qualified vendors and contractors wishing to compete for Broward
County contracts
to ensure that small and disadvantaged businesses have the maximum opportunity to participate in
Broward County contracts
to monitor vendor performance to ensure accountability
to provide Procurement Code guidance and training to client agencies
to keep abreast of current developments in the field of purchasing, market conditions, and new
products, and
to formulate and recommend purchasing policy and procedures
These objectives allow professional procurement specialists to responsibly ensure that Broward County
receives the best value obtainable for each tax dollar spent.
Page 5
Organizational Structure The Purchasing Division functions are implemented within three general interrelated Lines of Business:
Executive Management, Administrative Services and Operations. These Lines of Business are put into action
through seven business units.
Executive Management manages Broward County’s procurement practices in the areas of commodities,
general services, construction, and professional services; management of logistics, central warehouse, and
disposition of surplus; strategic planning and managing utilizing resources, business intelligence, and
performance metrics; maintaining internal quality assurance; dispute resolution; and recommending
policies and procedures. The Executive Management line of business consists of the Administration
business unit.
Administrative Services provides administrative, fiscal and human resource guidance, budget management,
information technology development, training, auditing of purchasing card and delegated purchases,
purchasing card (hereinafter referred to as P-Card) program administration, quality control of agenda
reports, Living Wage guidance, special projects and educational and outreach programs to facilitate efficient
and effective achievement of the Operations and Executive Management Business Units. The Administrative
Services line of business is executed through the Information Technology Administrative/Operational
Support and Resource Center business units.
Operations encompass the mandated core business of the Division – procurement and disposition of surplus
property. The Operations line of business is executed through the Commodities/Services, Central
Warehouse/Logistics and Construction, Professional Services, and Centralized Service Centers business units.
These units procure goods, including operational supplies and capital equipment, construction services,
general and professional services. Additionally, the Commodities/Services and Central Warehouse/Logistics
business unit disposes of surplus property and serves as the logistics center in emergency events in
accordance with federal and state mandates.
Administration Section
Professional
Services
Resource
Center
Goods/Services Construction
Central Warehouse Logisicstics
Centralized
Services
Administrative/ Operational
Support
Information Technology
Executive Management
Administrative Services Operations
Page 6
Section Introduction Operations Section consists of the following business units:
Commodities/General Services, Construction and Central Warehouse/Logistics Unit
The Commodities/General Services, Construction and Central Warehouse/Logistics Unit is responsible for
the procurements required by the various Broward County Agencies to provide their respective municipal
services, including general goods and services, operational supplies, maintenance services, capital
equipment, construction and construction related professional services governed by applicable federal,
state, and local laws. This unit also manages the disposition of surplus property through public auctions (e.g.
on-line, onsite, and third party site auctions), competitive sealed bids and donations, all in accordance with
Florida State Statute; and, serves as the logistics center in emergency events for the County.
Centralized Services Unit
The Centralized Services Unit is responsible for procurements for the Aviation and Port Everglades
Departments. Staff is located on-site at the respective locations to support these enterprise agencies
operating as revenue generating businesses. Some specialized procurements for these agencies include
construction and construction related professional services to accommodate the business growth and
demand of the traveling public. Specific procurements for these agencies include, but are not limited to the
following projects: the South Runway Expansion, Terminal 4 Redevelopment and Expansion of a 14 gate
concourse, construction of an intermodal container transfer facility and dredging and extension of the
Southport Turning Notch (deep water turn-around for cargo ships).
Professional Services Unit
The Professional Services Unit is responsible for processing and coordinating Committee-based, qualitative,
best value procurement methods, such as the Request for Letters of Interest (RLI) and Request for Proposals
(RFP). Neither of these procurement processes requires pricing to be the sole determining factor. Other
factors, such as experience, qualifications, past performance, and solution may be considered in selecting
the most qualified firm. The selection will result in a negotiated agreement approved and executed either
by the Board of County Commissioners or the Director of Purchasing depending on the dollar level of the
services procured.
Administrative/Operational Support Services Section
The Administrative/Operational Support Unit handles a wide range of activities for the Purchasing Division
including budget management, Purchasing Card Program administration, customer assistance for both
internal and external customers, including all website postings of solicitations and results, live-webcast bid
openings, the master agreement renewal program, contract files and records retention management,
document security and chain of control, forms management, legal advertising, public records requests, front
desk reception, mail delivery, purchasing of supplies, human resources coordination and payroll.
Page 7
Information Technology Unit
The Information Technology Unit provides support through automated informational systems and data
collection and reports, to assess performance output to identify areas of improvement to maximize
efficiencies. The informational systems allow for vendor registration, entry of requisitions, issuance of
purchase orders and master agreements, contract administration, monitoring of contractors’ performance
and payments to subcontractors, tracking of procurement cycle timelines and distribution of assignments.
Resource Center Unit
The Resource Center Unit performs a wide range of activities, including policy research and analysis,
benchmarking, data collection, tracking and reports, employee development training, policy development,
organizational analyses, operational performance evaluations and delegated purchasing audits, quality
control, processing and scheduling agenda reports, non-competitive procurement review (e.g. sole source)
and other specialized tasks in support of procurement-related special projects and programs.
Page 8
Statutory Authority The Purchasing Division was created and its duties outlined in Broward County’s Procurement Code (Code)
for the purpose of providing Broward County with a unified purchasing system, with centralized
responsibility for processing of delegated purchases and disposal of surplus property. The Code provides for
increased economy in procurement activities and enables the County to maximize to the fullest extent
practicable, the purchasing value of public funds by fostering effective broad based competition within the
free enterprise system, while ensuring fair and equitable treatment of all vendors who deal with Broward
County Procurement. The Code provides safeguards for the maintenance of a procurement system of quality
and integrity and also is intended to provide for increased public confidence in the procedures followed by
public procurement. All procurement by Broward County is governed by and construed under the laws and
codes as outlined below.
Source Regulation
Federal
Regulations
Disadvantaged Business Enterprises, 26 CFR Part 49
State of Florida
Statutes
Integrity of Public Contracting, Section 287.132
Consultant's Competitive Negotiations Act (CCNA), Section 287.055
Public Meetings Section 286.011
Scrutinized Companies Certification, Section 287.135
Employment Eligibility Verification Program Contractor Certification, Governor Scott’s Executive Order 11-02, issued January 4, 2011
Prompt Payment Law, Section 218.70
Public Records Law, Chapter 119
Drug-free Work Place, Section 287.087
Uniform Commercial Code, Chapter 672
Construction Bonding Requirements, Section 255.05
Public Construction Competitive Bidding, Section 255.20
Code of Ethics, Chapter 112
County authorized to sell real and personal property and to lease real property, Section 125.35
Sale of county property to United States, or State, Section 125.38
Tangible Personal Property Owned by Local Governments, Chapter 274
Surplus property, Section 274.05
Alternate procedures, Section 274.06
Energy Efficient and Sustainable Buildings, Section 255.2575
Lost or Abandoned Property, Chapter 705
Non Collusion Statement, Section 112.3135(1)(c)
Broward County
Codes and
Ordinances
Code of Conduct, Ordinance No. 2007-02
Broward County Employee Code of Ethics Act, Ordinance No. 2010-64
Cone of Silence, Ordinance No. 2011-06
Drug Free Workplace, Ordinance No. 92-8
County Business Opportunity Act, Ordinance No. 2012-13
Living Wage Ordinance, Ordinance No. 2008-45
Local Preference, Ordinance No. 2004-29
Page 9
Source Regulation
Domestic Partnership, Ordinance No. 1999-18
Prompt Pay, Ordinance No. 89-49
Procurement Code, Chapter 21
Procurement Code, Section 21.113, Disposal of Surplus Personal Property
Purchasing Division Accomplishments During the past year, the Purchasing Division continued its commitment to all stakeholders involved in the
procurement process. The Division’s constant focus on professionalism resulted in a number of recognitions,
awards, accreditations and certifications.
Recognitions, Awards, Accreditations, and Certifications
The Broward County Purchasing Division was recently recognized by several professional organizations for
its efforts on best practices; the use of technology to improve transparency, maximize efficiency and
application of environmental sustainability practices to its procurement process; achieving and maintaining
agency accreditation reflecting the Division’s level of excellence; and, individual professional certifications
demonstrating a standard of competency in the public procurement profession.
Achieved the award from the National Association of Counties
(NACo), which recognizes innovation in county government
programs. The RLI/RFP Supporting Documents Repository website
was developed to make all documents to the Request for Letters
of Interest or Request for Proposals process accessible on-line
providing “open access” to the general public, increasing the time
to make these public documents available and eliminating the
mass production of copies for distribution at Board meetings.
Awarded FAPPO’s 2013 Best Practice in Public Procurement
Award for Cost Savings for its entry “Innovations in Technology
and Web Design: RLI/RFP Supporting Documents Repository”, as
previously described under the NACo award.
Achieved the Award of Excellence in Public Procurement from the Florida Association of Public
Purchasing Officers (FAPPO) for the 17th year in a row. The award recognized the Purchasing Division for
organizational excellence in procurement by measuring its innovation, professionalism, e-procurement,
productivity and leadership.
Maintained active membership in the National Institute of Governmental Purchasing (NIGP), Florida
Association of Public Purchasing Officers, Southeast Florida Chapter of NIGP Inc. and Southeast Florida
Governmental Purchasing Cooperative Group.
Page 10
National Institute of Governmental Purchasing Outstanding Agency Accreditation Achievement (OA4)
Award. The three year reaccreditation recognizes the Division for leadership in the public procurement
profession through the implementation of best practices.
A majority of Purchasing Division agents and managers hold national certification as Certified
Professional Public Buyers (CPPB) or Officers (CPPO) through the Universal Public Procurement
Certification Council. In FY 2013, five purchasing agents attained their CPPB and three purchasing agents
obtained their CPPO professional certification, and two purchasing agents attained their CPPB re-
certifications, resulting in 77% (30 of 39) certification for the Division. An increase of 14% over the
previous year. Four purchasing agents also hold state certification for both Florida Certified Purchasing
Agent (FCPA) and Florida Certified Purchasing Manager (FCPM). Additionally, five purchasing agents hold
state certification as Florida Certified Contract Negotiators (FCCN).
Organizational Improvements
The Purchasing Division strives for continual organizational improvements to support strategic planning and
goal-setting, strengthen accountability, enhance decision-making, and improve customer service and to
assist the Division to determine the most effective use of its resources.
To enhance transparency and utilize technology, the Purchasing Division established an internet website
link to a portal containing information documents utilized by Selection and Evaluation Committee
members (a repository) in evaluating all proposals and ranking shortlisted proposers for final award of
County contracts, resulting from a Committee-based procurement process. Some of the information
documents contained in the portal are: Request for Letters of Interest/Request for Proposals submittals,
Evaluation Matrix, Director of Purchasing Recommendation Memorandum, Office of Economic and
Small Business Development Compliance Memorandum, Financial Review Memorandum, Litigation
Review Memorandum, Shortlisting Ballot Tally Sheet and Individual Ballots, Presentation - Ranking
Ballot Tally Sheet and Individual Ballots, Audio Recordings of Selection and Evaluation Committee
Meetings, and Summary Meeting Minutes of Selection and Evaluation Committee Meetings. This
improvement is an award winning innovation recognized by NACo and FAPPO as noted previously.
To further enhance transparency and keep the Purchasing Division’s clients better informed as to the
status of their procurement requests, a report of all open requisitions is now available by using agency
which is hyperlinked to the Milestones (chronological tracking of procurement activities) in Contracts
Central (the Purchasing Division’s software program that stores all procurements requested, Purchasing
Agents’ assignments, progress of each step of the process, and contract administration) enabling
Department, Division Directors and Project Managers to see the current status and any impediments in
the procurement process which may be addressed.
The Purchasing Division conducted (internal staff) Process Improvement Workshop/Retreat to
recommend efficiencies to streamline the procurement process. As a result of the workshop, the
Quotation Request, Invitation for Bids, quotation/bid process, the Request for Proposals (RFP) and
Request for Letters of Interest (RLI) processes were reviewed, improvements identified, and
implemented.
Page 11
A countywide cross-functional Procurement Task Force has been formed to expand upon the Purchasing
Division’s Process Improvement Workshop/Retreat to conduct an extensive review of procurement
policies and procedures, application of best practices, effectiveness and efficiencies and make
recommendations for further progressive and streamlined process improvements. The information
gathered from the Procurement Task Force will also be incorporated into the Enterprise Resource
Planning (ERP) software system, which is in the inception stage of being acquired.
The Division continues to serve as the Logistics Section in Emergency Management and participated in
the State of Florida statewide hurricane tabletop exercise. The exercise concluded that the Logistics
Section has excellent control and understanding of its roles and functions to be performed during a state
of emergency. The Logistics Section also conducted a comprehensive tabletop exercise in conjunction
with the Broward County Emergency Management Division. With the combination of classroom
instruction, Federal Emergency Management Agency courses, the Purchasing Division has taken a lead
role in ensuring staff is prepared to respond in the event of an emergency activation.
The Purchasing Division’s procurement documents are now submitted electronically for digital signature.
This process improvement continues to improve the paper trail and approval process significantly.
Documents are tracked throughout the approval process and approved documents are stored in an
electronic directory throughout their retention period.
Increased Purchasing Card single transaction limit from $2,000 to $3,000 to further reduce the
administrative cost of processing purchase orders and payments and to expand the P-Card program with
Bank of America to leverage the 160 (or 1.6%) rebate basis points resulting in an increase rebate
payment to the County in the amount of $394,129 for FY 2013.
To effectively administer contracts to obtain best value and efficiency from the awarded vendor a
training program was developed for Project Managers on Contract Administration. The curriculum
consists of some of the various topics, such as contract terminology and clauses for understanding,
identifying and managing potential risks, collaborating with contractors throughout the contract life-
cycle, effective performance monitoring and contract enforcement.
Assisted with revising the adopted Broward County Business Opportunity Act of 2012 to efficiently
administer and ensure compliance with the Act, which is intended to provide maximum opportunities for
small and county business enterprises to compete for Broward County contracts.
Streamlined the Work Authorization (WA) Process to improve processing timelines within the Director of
Purchasing authority by reducing non value added requirements by not requiring the Office of County
Attorney and Risk Management Division approval when the WA does not substantially differ from the
originating contract.
Page 12
Administration
Implemented a Countywide Procurement Taskforce to review current policies and procedures that
govern Broward County procurement in order to seek efficiencies in the County procurement cycle.
Re-organization of the Purchasing Division.
Successfully space planned Purchasing staff based on the re-organization to improve on communication
and synergy with the level of work assigned.
Increased use of Purchasing Card resulted in generating $394,129 of revenue to the County.
Departments/Offices receive Purchasing Card Monthly Expenditure Reports to use as a management tool
for enhanced transparency and fiscal controls of the P-Card program.
Revised the Local Preference Ordinance and Inter-Local Reciprocity Agreement between Broward County
and Miami-Dade County.
Implemented a Countywide Federal Transit Administration (FTA) policies and procedures for compliance
purposes and incorporated it into the County Administrative Policies and Procedures (CAPP) Manual.
Professional Services
Successfully transitioned the Office of Communication Technology contracts from Broward Sheriff’s
Office to Broward County. The Purchasing Division has incorporated the needs of the Office of
Communications Technology into its schedule throughout this past year. Purchasing Division staff has
assisted in transferring numerous contracts for communication and technology equipment and services
from BSO to the County Government. At the end of the fiscal year, Purchasing Division staff solicited two
large projects for the Office of Communication Technology: Next Generation Computer Aided Dispatch
System and Local Government UHF Trunking 400 MHz Radio System.
Successful procurement and negotiation of Kronos Contract (a/k/a Easy Pay) - After concluding the
Selection Committee Meetings and negotiating an Agreement with Kronos, Inc., the past year has seen
implementation of the Easy Pay electronic time clock system in Broward County. At the end of FY 2013,
the implementation is close to completion.
Disaster Recovery Services Contract for Enterprise Technology Services - After research and review of the
market for disaster recovery services for information technology, the Purchasing Division staff in
partnership with Enterprise Technology Services contracted with SunGard for disaster recovery
protection.
Procurement of an Enterprise Business Application for Human Services Department Concluding an
extended period of stakeholder information meetings by the Human Services Department, the
Purchasing Division advertised a solicitation for a Human Services Department Enterprise Business
Application. After conclusion of Selection Committee Meetings including Demonstration Meetings to
see hands-on performance of various software products, a company was selected and successful
negotiations concluded for an Agreement with The Echo Group.
Page 13
Goods/Services/Construction
Coordinated the sale and removal of abandoned aircraft at the airport for the Aviation Department,
which generated $51,215.34 in revenue.
Disposal of the County owned assets (scoreboard) at the arena occupied by main tenant, Florida
Panthers.
Organized and conducted a hurricane logistic exercise at the Emergency Operation Center.
Assisted Emergency Management Division with the procurement of grant funded Federal Emergency
Management Administration rescue supplies.
Effectively collaborated with the Water and Wastewater Engineering Division to process and award a
high-profile Pump Station Relocation project in a short time-frame and substantially below budget. The
Pump Station was estimated at approximately $3,500,000 and was subsequently awarded at $3,184,000,
a savings of $316,000.
Coordinated with Water and Wastewater Operations Division to provide expanded training to Water and
Wastewater Services’ personnel on procurement processes, in order to foster a more productive working
relationship, thereby resulting in a greater understanding of the County’s procurement processes and
increased efficiencies.
Assisted with the emergency A1A Beach re-nourishment project due to erosion caused by Hurricanes
Isaac and Sandy.
Centralized Services
Continue to participate (on weekly basis) in the ‘Change Review Committee’, which considers requests
for changes to contracts that are in effect for the Airport Expansion Program
Milestones are established to ensure that enabling projects fit within an overall timeline which meets the
objectives of the Aviation Department and in particular the timely opening of the new South Runway,
and improved terminal facilities.
Assisted with the successful transition of the Emergency Parking Management Agreement for Aviation
avoiding interruption of service to traveling customers, airline companies, guests, and general public.
Technology
Continued to enhance the Purchasing Division’s internal website in support of the Division’s efforts to
provide information to client agencies which includes: Automation of daily reports from Advantage
Procurement System, solicitation web page, and ability to archive selected files from the Request for
Letters of Interest (RLI)/Request for Proposals (RFP) Supporting Documents Repository and from the
Results web page.
Page 14
The Division won FAPPO’s 2013 Best Practice in Public Procurement Award for its RLI-RFP Supporting
Documents Repository. The website makes RLI/RFP electronic documents now available on-line both
internally and externally and provides a centralized location for storage of electronic documents to
eliminate the mass production of copies of agenda exhibits for consumption by the various the Broward
County Board of County Commissioners (Board), County personnel and the public. Once the Board takes
action on an agenda item, the repository becomes an archival record for each individual procurement
action.
National Association of Counties (NACo) Achievement Award for the RLI/RFP Supporting Documents
Repository.
Upgraded Contracts Central from Microsoft .NET 2.0 to .NET 4.0 Framework. The upgrade will allow the
Purchasing Division to utilize new technology resulting in increased efficiency and faster development.
Created Contracts Central Technical Database and Application Documentation to ensure that the
organizational schema, data objects, and other related information are captured for documentation and
programming purposes to address program failures, errors, upgrades, and interfaces (e.g.
Financial/Procurement Modules of ERP).
Developed New Contracts Central Procurement Milestones Module to identify procurement and non-
procurement processing times. It delineates the amount of time Purchasing Agents spend on a contract
and the time that Client Agencies take to provide supporting documents. The module provides on-screen
graphs to visually depict the procurement and non-procurement processing times.
Enhanced various components of the ContractsCentral Application based on end-users feedback which
include: Quarterly Procurement Performance Reports, database structure to increase database speed,
and new Quarterly Procurement Performance Reports based on proposed award categories.
Enhanced iContractsCentral for efficiency based on feedback from the vendors and made it more user-
friendly. The iContractsCentral Module allows prime vendors to report sub-vendor’s payment
information on projects, and allows the sub-vendor to verify payment information reported by the prime.
Resource Services
Coordinated and facilitated process improvement workshop addressing the Request for Letters of
Interest/Request for Proposals and Quote/Bid processes. Several quick win recommendations have been
adopted, helping to streamline these processes and make them more efficient.
Facilitated and conducted special Federal Transit Administration training for the Transportation
Department to ensure procurements utilizing federal grants were in compliance with all rules and
regulations.
Updated Delegated Quotation Request procedure and retrained authorized staff. The revised procedure
provides for authorized agencies to solicit quotation requests up to $30,000 and prepare the
Recommendation for Award. All delegated quotation requests, solicitation documents, and award
recommendations are reviewed by the Purchasing Division for adherence to the procurement policy.
Page 15
Developed training program for newly hired Purchasing staff on Broward County’s processes, policies,
and ordinances to reduce their learning curve and time so that they may contribute to the success of the
Division quickly.
Conducted countywide training to promote efficiencies, enhance the organization body of knowledge of
procurement processes and continue working relationships with client agencies; i.e. Purchasing Software
Systems, Delegated Purchasing, Advantage, Purchasing Card Refresher, RLI/RFP Training, Libraries of
Professional Services, Contract Administration, Construction Contracting, Specification Writing, Vendor
Performance Evaluations, etc.
Held individual agency classes in procurement practices, processes, and requirements to multiple outside
agencies, i.e., Water and Wastewater Services, and Parks and Recreation to improve upon procurement
processing timelines.
The Purchasing Division has implemented a green procurement program to attain the County’s goal of a
sustainable environment. Green procurement includes energy use, recycled content, recyclability, reuse,
resource conservation, and greenhouse gas emissions. This program supports the effort and recommends
a series of additional actions to substantially increase the recycling rate and promote full utilization of
existing infrastructure for waste-to-energy conversion.
Page 16
Customer Service and Outreach
Achieved an overall rating of 4.14, out of a possible rating maximum of 5, utilizing a strategy of
collaboration with emphasis on accessibility, quality, and service. This improvement can be attributed to
the concerted efforts by the Purchasing Division to find cost savings for our client agencies, reduce
processing times and improving communications with our client agencies.
FY 2013 Annual Customer Satisfaction Survey Results by Section
Held pre-advertisement meetings for the benefit of potential contractors and subcontractors about
future capital construction contracting opportunities with Broward County.
Conducted monthly workshops in conjunction with the Office of Economic and Small Business
Development on How to Do Business with Broward County. The workshops afforded an interactive
environment for purchasing agents and small business owners to share information.
Participated in professional purchasing associations that emphasize education and best practices for
purchasing professionals as well as continual vendor outreach efforts and networking events. The most
recent vendor outreach and education effort was the Southeast Chapter of National Institute of
Governmental Purchasing Reverse Trade Show.
The Purchasing Division continues to provide customer service and outreach in support of the Living
Wage Program by providing updated information through various channels of communication with client
agencies, service contractors, other government and non-profit entities, service employee unions, the
Living Wage Advisory Board and other interested parties. In FY 2013, program activities continued to
include:
Page 17
o training presentations and informational sessions to Broward County staff and vendors
o vendor awareness via “How to Do Business with Broward County” monthly seminars
o participated in client agency contractor start-up meetings for new Living Wage service
contracts
o assistance, guidance, research, and reports to the Living Wage Advisory Board
o living wage informational link updates on the Purchasing Division’s website and BC-Net to
keep client agencies and the vendor community informed, and
o “help desk” services for Purchasing Agents, contract administrators, project managers and
service contractors requiring clarification or guidance on Living Wage contract compliance
issues.
Conducted 102 training classes, for approximately 1,098 employees, on delegated purchasing, Requests
for Letters of Interest, Request for Proposals, Advantage System Procurement, P-Card procurement,
Contracts Central and Purchasing Division policies and procedures.
Enrolled 1,265 new vendors in Vendor Self-Service (VSS) during FY 2013, providing vendors with a 24/7
online registration service. We currently have 7,815 vendors in VSS, which is 22% of our vendor total.
There are currently a total of 36,076 vendors registered in the Broward County Vendor List.
Page 18
Financial Statistics/Procurement Activities for Fiscal Year 2013 For the purposes of this report, the terms award and purchases are used interchangeably and refer to any
procurement document issued during the fiscal year (hereinafter referred to as FY). Procurement
documents represent a commitment by Broward County to procure goods and services. The table below
provides a detail explanation of the various types of purchases. With the exception of P-Cards, delivery
orders, delegated purchases, exempt purchases and central purchases results in procurement documents
being issued.
P-Cards All P-card purchases made through Broward County’s program
Delivery Orders Purchase Orders from master agreement contracts issued by client agencies
Delegated Purchases Purchases made by authorized Certified Agency Buyers up to $3,500
Exempt Purchases All procurements exempt from the Procurement Code
Central Purchases1 Purchases made by the Purchasing Division greater than $3,500
Master Agreement Awards
Strategic sourcing is a practice for continuously improving and re-evaluating the purchasing activity. It
analyzes and assesses the components of a procurement to determine the best method of soliciting for the
required supply or service. The use of Master Agreements (open-end) contracts is one of the methods
utilized by the Purchasing Division to implement strategic sourcing and take advantage of economies of
scale. It is critical for all intended users to participate when data is being gathered to develop the scope of
services and determine the estimated quantities.
The Purchasing Division emphasizes the value of Master Agreements because they offer an efficient and
economical method for purchasing frequently requested items. Once awarded, the client agencies are able
to issue purchase orders (Delivery Orders) to the awarded vendor(s). Master Agreements are usually issued
with an initial term of one year and a stated number of optional renewal periods, usually two one-year
periods, subject to vendor acceptance, and determination that renewal is in the best interest of the County.
During FY 2013, three hundred fifty five (355) replacement or new Master Agreements were awarded by
either the Board of County Commissioners or the Director of Purchasing for a potential spend on these
contracts within the initial term of $96,847,244. Figure No. 1a and 1b shows the quantity and initial term
value of the Master Agreements awarded during that period.
1Open-end, multi-year contract awards are not included.
Page 19
The number of DO’s issued from established Master Agreements, as shown in Figure 2a is 8,782, and the
actual expenditures (total dollars issued on DO’s) is $275,922,051, as shown in Figure 2b (see below).
In addition to Master Agreements issued during FY 2013, there are those Master Agreements issued in prior
fiscal years that remain active, due to the multi-year optional renewal term having been exercised. As of
September 30, 2013, there were 809 active Master Agreements available for use by Broward County
agencies, providing for the purchase of commodities, construction, general and professional services.
Page 20
A total of 66,8762 purchases were processed in FY 2013, for a total award amount of $663,922,7003. The
Board of County Commissioners approved $511,844,575 in purchases and the Director of Purchasing
approved $127,653,144 in purchases. Included in the total are purchases processed with P-Cards which
totaled $24,424,982 for FY 2013, of which Broward County received rebates totaling $394,1294. Figures 2a
and 2b summarize the methods utilized for the Purchasing Division’s activity for FY 2013.
2This figure does not include Master Agreement awards.
3This amount is actual expenditures based on contract awards; it does not include Master Agreements potential award dollars, expenditures and transfers to other governmental
agencies made through direct vouchers which totaled an additional $1,098,441,609 and subsequent change orders, amendments or cancellations. 4The basis points for the FY 2013 P-Card rebate are 1.6% (60 basis points) and rebate figure includes both P-Cards and e-payables.
Page 21
Awards by Agency
The following chart delineates the transactions categorized by client agencies during FY 2013.
Figure 3a Contract Awards by Agency
Agency Count
5 Award $ $ in Millions %
Aviation Department 1,153 $286,493,351 $286.5 43.2%
Public Works Department 3,417 $144,143,611 $144.1 21.7%
Department of Transportation 1,920 $49,473,190 $49.5 7.5%
Finance & Administrative Services Department 825 $47,221,406 $47.2 7.1%
Port Everglades Department 492 $46,593,235 $46.6 7.0%
Boards & Other Agencies 230 $19,329,722 $19.3 2.9%
Libraries, Parks and Cultural 1,006 $19,144,842 $19.1 2.9%
County Administration 203 $10,219,470 $10.2 1.5%
Human Services 314 $6,969,424 $7.0 1.0%
Environmental Protection & Growth Management 647 $6,508,245 $6.5 1.0%
All Other Agencies 632 $3,401,224 $3.4 0.5%
All P-Card Purchases 56,037 $24,424,982 $24.4 3.7%
Total 66,876 663,922,700 $663.9 100.0%
Figure 3b
Contract Awards by Agency
5 Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.
Page 22
Vendor Participation
The following chart delineates the awards and expenditures with the top eleven vendors during FY 2013.
Figure 4a Contract Awards and Expenditures by Vendor
Vendor Name Count6 Award $ $ in Millions %
Archer Western Construction, LLC 1 $87,697,296 $87.7 13.2%
Tutor Perini Fort Lauderdale-Hollywood Joint Venture 1 $37,964,000 $38.0 5.7%
Munilla Construction Management LLC 1 $32,578,241 $32.6 4.9%
DMJM Aviation Inc 1 $30,576,930 $30.6 4.6%
Delta Airlines Inc 1 $25,019,285 $25.0 3.8%
Arthur J Gallagher Risk Management Services 26 $23,661,734 $23.7 3.5%
Broward County Sheriff's Office 25 $21,974,024 $22.0 3.3%
Engineered Arresting Systems Corp 2 $17,190,200 $17.2 2.6%
Morganti Group Inc (THE) 1 $14,370,000 $14.4 2.2%
Sunshine Cleaning Systems Inc 33 $13,859,919 $13.9 2.1%
PCL-Pirtle, A Joint Venture 1 $12,377,570 $12.4 1.9%
All Other Vendor Awards 66,783 $346,653,502 $346.7 52.2%
Total 66,876 $663,922,700 $663.9 100%
Figure 4b
Contracts Awards and Expenditures by Vendor
6 Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.
Page 23
Contracts Awarded to Vendors by State, County and City
Broward County awarded 78% of its contract dollars to vendors located within the State of Florida and 42%
to local, Broward businesses in FY 2013.
Figures 5a and 5b below represent the dollars spent by Broward County within the State of Florida and
other jurisdictions across the United States and Canada. Figures 5c and 5d represent the dollars spent
within Broward County in comparison with other Florida Counties. Figures 5e and 5f represent the dollars
spent in various cities within Broward County.
Figure 5a Contracts Awarded to Vendors by State*
State Count
7 Award $ $ in Millions %
Florida 8,701 $518,630,176 $518.6 78.1%
Georgia 124 $27,322,689 $27.3 4.1%
New Jersey 69 $20,003,857 $20.0 3.0%
California 198 $11,606,895 $11.6 1.8%
Texas 379 $9,856,816 $9.9 1.5%
Maryland 33 $7,708,470 $7.7 1.2%
North Carolina 56 $6,898,795 $6.9 1.0%
All Other States 1,279 $37,470,020 $37.5 5.6%
All P-Card Purchases8 56,037 $24,424,982 $24.4 3.7%
Total** 66,876 $663,922,700 $663.9 100.0%
Figure 5b
Contracts Awarded to Vendors by State
7 Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.
8 Includes purchases made with vendors who are in Florida as well as outside Florida.
*Vendor locations per the Advantage Procurement System at the time of purchase order issuance. **Value differences due to rounding.
Page 24
Figure 5c Contracts Awarded to Vendors by County*
Florida Counties Count9 Award $ $ in Millions %
Broward 6,483 $275,150,233 $275.2 41.5%
Other Florida Counties 817 $128,536,912 $128.5 19.3%
Outside Florida 2,132 $120,638,137 $120.6 18.2%
Miami-Dade 935 $65,435,470 $65.4 9.8%
Palm Beach 472 $49,736,967 $49.7 7.5%
All P-Card Purchases 56,037 $24,424,982 $24.4 3.7%
Total** 66,876 $663,922,700 $663.9 100.0%
Figure 5d Contracts Awarded to Vendors by County
9 Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.
*Vendor locations per the Advantage Procurement System at the time of purchase order issuance. **Value differences due to rounding.
Page 25
Figure 5e Contracts Awarded to Vendors by City
Broward County City Count
10 Award $ $ in Millions %
Fort Lauderdale 2,623 $117,546,865 $117.5 17.7%
Dania Beach 161 $47,842,397 $47.8 7.2%
Pompano Beach 517 $33,002,498 $33.0 5.0%
Hollywood 459 $18,463,384 $18.5 2.8%
Oakland Park 230 $17,625,025 $17.6 2.6%
Deerfield Beach 201 $6,298,710 $6.3 0.9%
Plantation 166 $5,203,716 $5.2 0.8%
Other Broward County Cities 2,126 $29,167,638 $29.2 4.4%
Outside Broward County 4,356 $364,347,485 $364.3 54.9%
All P-Card Purchases 56,037 $24,424,982 $24.4 3.7%
Total* 66,876 $663,922,700 $663.9 100%
Figure 5f
Contracts Awarded to Vendors by City
10
Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.
*Value differences due to rounding.
Page 26
Statistical Comparison with Previous Years Contract Awards
Figures 6a through 6c reflect the comparative data for contract awards since FY 2011. The trend for the past two fiscal years is higher than in prior fiscal years consistent with the economic environment. While, in FY 2012, major Broward County capital outlay projects such as the construction of a new courthouse, airport improvements and renovations, and water and sewer improvements contributed to the sharp incline in the numbers, procurements continued for these major projects in FY 2013; however, not at the same expenditure rate in comparison to the previous year.
Figure 6a Comparison of Contract Award Dollars by Method
Purchasing Contract Award Dollars FY 2011 FY 2012 FY 2013
Delivery Orders $321,627,332 $312,493,792 $275,922,051
Delegated Purchases $2,142,995 $2,207,865 $1,345,892
Exempt Purchases $5,965,901 $5,647,700 $7,595,563
Central Purchases $215,924,417 $804,881,155 $354,634,213
P-Cards $14,018,518 $20,562,861 $24,424,982
Total* $559,679,163 $1,145,793,373 $663,922,700
Figure 6b
Comparison by Approval Authority
Authority Level FY 2011 FY 2012 FY 2013
Board approved $424,856,980 $1,003,965,724 $511,844,575
Director of Purchasing approved $120,803,664 $121,264,788 $127,653,144
P-Cards $14,018,518 $20,562,861 $24,424,982
Total $559,679,163 $1,145,793,373 $663,922,700
Figure 6c
Comparison of Contract Award Dollars Over Time
**Value differences due to rounding.
*Delivery Orders come from Master Agreements, refer to page 19
Page 27
Vendor Awards by Region
Awarding contracts to vendors within Broward County and the State of Florida has remained a focus for the
Purchasing Division to support economic vitality within our region. Of the total procurement dollars
expended in FY 2013, $518,630,176 or 78% was awarded to vendors within the State of Florida and
$275,150,233 or 42% of the total procurement awards went to local Broward County vendors.
Figure 7a Comparison of Regional Contract Award Dollars
Vendor Awards FY 2011 FY 2012 FY 2013
Awards within Florida $438,597,579 $1,033,949,789 $518,630,176
Awards within Broward County $308,616,418 $667,757,515 $275,150,233
Figure 7b Comparison of Regional Contract Award Dollars
Page 28
Value Added Cost Savings
The Purchasing Division undertook the initiative to realize additional cost savings above and beyond those
savings realized through its standard procurement activities. This was accomplished through various value
added procurement strategies and staff initiatives such as strategic sourcing, cooperative purchasing
voluntary price reductions, rebates, skilled negotiations, cost avoidance and due diligence in researching the
open market for the best product at the best value. The opportunities for value added cost savings in FY
2013 is not at the same level as last year as a result of the decrease in dollar expenditures.
a downward trend on the dollar amount of fixed contract awards and transactions from the previous
year,
a downward trend on the number of open-end, multi-year (Master Agreements) contract awards
from the previous year, and
a decrease in the dollar amount of larger complex, capital outlay projects.
Figure 8a Comparison of Value Added Cost Savings
Cost Savings FY 2011 FY 2012 FY 2013
Commodities (Goods & Services) $88,943 $131,412 * $1,765,448 Construction $33,928 $4,093,386
Sub-Total $122,871 $4,224,798 $1,765,448
Negotiations $3,128,347 $13,288,684 $5,398,296
Centralized Centers (Aviation/Port Everglades) $43,237 $2,516,029 $101,324
P-Card Rebates $360,358 $329,006 $394,129
Total $3,654,814 $20,358,517 $7,659,197 *The categories of commodities and construction were combined in October 1, 2012 due to the re-organization.
Figure 8b Comparison of Value Added Cost Savings
Page 29
Procurement Operations Procurement Processing Times
The Purchasing Division continues to focus on strategic procurement strategies to improve and optimize
efficiency to its operations and processes. Fundamental to efficiency is the timely procurement of goods
and services. The procurement method utilized and related processing time vary dependent upon the scope
and complexity of the procurement request, the nature of the goods and services being purchased, the
responsiveness of the client agency and the level of available agent resources.
The processing times in Figure 9a are based on a procurement cycle from the entry of requisitions by client
agencies to the issuance of a transactional/ordering document, i.e., delivery order, purchase order.
As seen in Figure 9a and 9b, procurement processing time in FY 2013 improved by 12% or 9 days since FY
2012, and by 18% or 16 days since FY 2011. In comparing the data for all fiscal periods, it is most noticeable
that process improvements were achieved in the majority of all areas, with the greatest improvement
represented in the non-construction, formal competitive process arena where the dollar threshold is
$50,000 and greater.
In comparison to FY 2011, strategic sourcing initiatives, benchmarking and reporting mediums,
incorporation of best practices into our governance code, and policies and procedures has improved overall
procurement processing time.
Figure 9a Comparison of Processing Times by Award Amount
FY 2011 FY 2012 FY 2013
# of Awards
Average Days to Process
# of Awards
Average Days to Process
# of Awards
Average Days to Process
Less than $50,000 373 56.42 466 59.72 579 53.55
Non-Construction $50,000 to $250,000 183 96.41 295 83.25 209 71.68
Construction $50,000 to $250,000 15 138.27 24 114.13 29 132.34
Non-Construction Greater than $250,000 38 174.95 70 151.90 73 141.55
Construction Greater than $250,000 45 265.53 44 220.43 43 214.67
Total 654 90.76 899 83.94 933 74.37
Page 30
Figure 9b
Overall Average Processing Times
A Change of Methodology for Procurement Processing Times commencing in FY 2014
The Purchasing Division in FY 2014 will commence changing the methodology in measuring its procurement
processing times to create new categories of procurement activities. Those new categories are currently
included within the processing times in Figures 9a and 9b. If categories were to be removed this year based
on next year’s change in methodology, the timeframes would reflect the following for Fiscal Year in 2013.
FY 2013
# of Awards
Average Days to Process
Less than $50,000* 364 76.13
Non-Construction $50,000* to $250,000 132 103.67
Construction $50,000* to $250,000 28 136.18
Non-Construction Greater than $250,000 46 210.02
Construction Greater than $250,000 42 209.29
Total 612 104.02
Figure 9c
Comparison of Processing Times by Process Method
FY 2011 FY 2012 FY 2013
# of Awards
Average Days to Process
# of Awards
Average Days to Process
# of Awards
Average Days to Process
Conventional Construction and Two-Step (Design/Bid/Build) 21 182.19 26 192.38 20 215.95
Construction Two Step Hybrid (Construction Manager @ Risk Modified) 3 290 1 475 1 342
In-house Construction (Invitation For Bid) 27 172.56 36 132.88 36 153.25
Quote/Bid Process 418 86.59 589 99.46 523 85.67
Request for Letters of Interest or Request for Proposals 25 356.60 41 264.15 32 271.09
Total 494 110.25 693 114.97 612 104.02
Page 31
Figure 9c provides an in-depth comparative analysis of processing time by source selection method. The
Purchasing Division experienced a 12% decrease on the number of awards this fiscal year from last fiscal
year, while decreasing the overall processing times by approximately 10% or 11 days. This analysis illustrates
and supports sustainability of a process improvement trend since FY 2011. As a matter of fact, a comparison
between FY 2012 and FY 2013 demonstrates improvement in processing time for the procurements utilizing
the Quote/Bid Process with a 15% or 14 day improvement and the Construction Two Step Hybrid
(Construction Manager @ Risk Modified) with a 28% or 133 day improvement. These two process
improvements accounts for 86% (524 out of 612) of the total number of awards.
The processing times in Figure 9c are based on a procurement cycle from the issuance of a sourcing
competitive document to award, i.e., Quotes, Invitation for Bids, Request for Proposals and Request for
Letters of Interest. The number of awards in Figure 2a, Figure 3a, Figure 4a, Figure 5a, Figure 5c and Figure
5e are only transactional based/ordering documents, i.e., P-Cards, delivery orders, delegated purchases and
exempt purchases.
Figure 9d
Average Processing Times by Process Method Over Time
Purchasing Cards (P-Cards)
According to the Journal of Public Procurement (2003, Volume 3, Issue 1), a P-Card program is an innovative
approach for cost-savings measures for municipal government. P-Cards allows for municipal agencies to
effectively manage resources and improve decision-making and operational practices by utilizing advanced
technologies and best practices, which results in improve services and preservation of limited fiscal
resources. There is evidence that a P-Card program generates substantial operational and transactional
savings, greater flexibility, and can be strategically used during emergencies for rapid acquisition of needed
resources. Overall, P-Cards improve the purchasing cycle timelines for routine low dollar volume
transactions.
The inception of the Purchasing Card (P-Card) Program to Broward County has resulted in many benefits
both to the vendor community and our client agencies. The vendor community benefits from accelerated
payments while providing a means for Broward County agencies to procure goods on an expedited basis.
Additionally, the use of P-Cards streamlines the process to procure, receive and pay individual vendors for
Page 32
small dollar purchases. The P-Card allows for payments to be made to a financial institution contracted with
the County rather than individual payments made to each contractor. A secondary benefit of the program is
that the County receives 1.6% rebate on all County procurements made using the P-Card. During FY 2013,
the County received a rebate of $394,129. The charts below provide details of the P-Card spend by vendor,
state and county.
The use of the P-Card by individuals within County agencies is audited by the Purchasing Division on a
quarterly basis to ensure proper use in accordance with the promulgated procedures. In addition to the
audits conducted by the division, reports are generated on a monthly basis and forwarded to all Department
and Office Directors so that they are aware of all purchases initiated by all card holders within their
prospective agency. The chart below shows the list of top ten vendors that the County spends the majority
of its funds through the P-Card.
Figure 10a P-Cards Purchases by Vendor
Vendor Name Award $ $ in
Millions %
Sprint Wireless $999,226 $1.0 5.0%
EMC Office Supplies $703,527 $0.7 3.5%
Office Depot #1165 $500,239 $0.5 2.5%
WW Grainger $437,923 $0.4 2.2%
DMI Dell K-12/Govt $249,261 $0.2 1.3%
Ufirst Unifirst Corp $189,821 $0.2 1.0%
Transportation Security $120,000 $0.1 0.6%
Graybar Electric Company $112,183 $0.1 0.6%
Sunpass Operations $109,851 $0.1 0.6%
Mazzone Foods $104,875 $0.1 0.5%
All Other Vendors $16,288,816 $16.3 82.2%
Total $19,815,722 $19.8 100%
Figure 10b
P-Cards Purchases by Vendor
Page 33
Figure 10c
P-Cards Purchases by State
*Dollars may not total exactly, due to rounding.
Figure 10d P-Cards Purchases by State
State Award $ $ in Millions %
Florida $10,396,599 $10.4 52.5%
Kansas $1,044,233 $1.0 5.3%
California $832,192 $0.8 4.2%
Texas $784,069 $0.8 4.0%
Arizona $742,662 $0.7 3.7%
Illinois $694,344 $0.7 3.5%
Pennsylvania $557,912 $0.6 2.8%
Georgia $514,495 $0.5 2.6%
Massachusetts $499,735 $0.5 2.5%
All Other States $3,749,482 $3.7 18.9%
Total* $19,815,722 $19.8 100%
Page 34
Figure 10e P-Cards Purchases by County
Broward County City Award $ $ in Millions %
Broward County $7,878,865 $7.9 76.0%
Other Florida Counties $2,517,734 $2.5 24.0%
Total $10,396,599 $10.4 100%
Figure 10f P-Cards Purchases by County
Page 35
Delegated Purchasing Authority Audit Program
The procurement code allows the Director of Purchasing to delegate various departments the authority
to purchase specific items or classes of items, below mandatory bid amount, if the Director of
Purchasing deems it more advantageous to the County for such designated items to be purchased by an
agency rather than by the Central Purchasing Division. There are two major delegated purchasing
programs; the Certified Agency Buyer (CAB) program and the Purchasing Card (P-Card) Program.
The Purchasing Division conducts regular audits of delegated purchases in order to ensure that
delegated agencies conduct purchasing in accordance with all applicable rules, regulations and codes.
The audit program also allows the Purchasing Division to continuously evaluate how to improve and
expand delegated authorities.
CAB audits are performed on an annual basis with the exception of those client agencies that obtained a
satisfactory audit outcome in the previous audit year. Agencies that receive satisfactory or minor audit
findings are audited on a biennial basis, rather than on an annual basis. Purchasing staff conducted 19
CAB audits in FY 2013.
The findings for the completed CAB audits follow:
Two agencies (11%) were found to be fully compliant with procurement policies
Four agencies (21%) were found to have minor procurement policy violations, and
Thirteen agencies (68%) were found to have major procurement policy violations
Although 68% of the CAB audits conducted found major policy violations in many cases only a single
major policy or documentation error was found. The current CAB audit policy has a zero tolerance for
policy or documentation errors. CAB agencies were counseled during audit debriefings and in most
instances, it was determined that no follow-up audit was necessary. The Purchasing Division is currently
revising CAB policies and the CAB Audit procedures to ensure compliance with critical policy items,
eliminate unnecessary requirements and improve the overall CAB procurement process.
The P-Card auditor reviews P-Card purchases on a quarterly basis. The P-Card audit program ensures
cardholder and approver compliance with policy and identifies violations, such as splitting purchases,
using the P-Card for personal use or not buying appropriately from an existing Master Agreement. In FY
2013, P-Card audit reviews were performed for 947 active card holders. Violations identified during
these audits resulted in the cancellation of six P-Cards. Five P-Cards previously cancelled were
reinstated during FY 2013. We continue to provide quarterly reports to the County Auditor for review.
Page 36
Organizational Development Program
The purchase of goods and services is a collaborative process between the initiating client agency and
the Purchasing Division. To support this collaboration, the Division provides specialized training and
outreach to ensure consistency in procurement activities. The Purchasing Division’s training program is
committed to tailoring learning to client agency needs and is focused on building competent, consistent
and responsive purchasing staff. In FY 2013, the Purchasing Division conducted 102 classes and trained
approximately 1098 Broward County employees. This 46% increase in the number of employees
receiving purchasing-related training is due to several new courses being introduced and/required
during FY 2013, i.e. Contract Administration for all project managers and P-Card refresher for all P-Card
approvers. The classroom training schedule was further augmented by 50 presentations delivered by
purchasing managers and agents to client agencies and external organizations, which were attended by
approximately 250 members of the vendor community and county employees.
Centralized, instructor-led procurement training is delivered by purchasing experts. The Purchasing
Division’s training program:
increases knowledge of procurement processes,
enhances productivity and quality of work,
improves individual and organizational performance; getting the goods and services into the hands of employees as efficiently as possible,
communicates purchasing policy requirements to Broward County agencies, and
Instructs outside agencies (e.g. small businesses) “How to Do Business with Broward County”.
The Purchasing Division is the only Broward County agency currently providing instructor-led Advantage
System training. Demand for Advantage Procurement I and II classes increased from six classes held in
FY 2012 to twelve held in FY 2013; the number of employees completing this training increased from
160 in FY 2012 to 189 in FY2013. Advantage Procurement I and II classes are required for designated
CABs and approvers performing delegated purchasing within client agencies. Designated CABs and
approvers must additionally complete CAB certification training. In FY 2013, 80 employees received CAB
certification training.
In FY 2013, 443 employees received classroom P-Card training; 18 employees completed the online
tutorial, which is a 49% decrease from FY2012. To improve efficiency P-Card training will be primarily
offered through the revised online P-Card tutorial in FY 2014. Additionally, participant in the P-Card
program will be required to take the online tutorial annually to remain in good standing.
The Purchasing Division continues to invest in the professional development of its personnel. In FY 2013,
Purchasing Division staff attended 36 training classes sponsored by the National Institute of
Governmental Purchasing (NIGP). The NIGP is a nonprofit educational and technical organization of
governmental buying agencies across the United States. As a result of staff participation in NIGP
Page 37
sponsored training, six purchasing staff achieved Certified Professional Public Buyer (CPPB) designation
and four purchasing staff achieved Certified Public Procurement Officer (CPPO) designation.
Central Warehouse Operations
Surplus Property Disposal
The Purchasing Division’s Central Warehouse serves as the centralized processing center for sale and
disposal of all Broward County surplus property. The centralized processing of surplus provides accurate
disposal records for all property while also ensuring compliance with Florida Statutes relating to the
disposal of surplus. The Central Warehouse Operations also includes the management of Broward
County’s donation program, making property available to local non-profit organizations as well as other
governmental entities. Computers donated to local non-profit organizations are being utilized to provide
education and career opportunities to Broward County residents.
The Central Warehouse Operations coordinated and processed $606,848 in surplus property sales in FY
2013, which is an increase from FY 2012. This increase in surplus sales is attributable to greater revenue
generated at the two live public auctions for vehicles, aircraft and other equipment.
Figure 11 Surplus Sales Dollars by Fiscal Year
Emergency Preparedness Operations
Much of Broward County’s emergency logistics operations are coordinated through the Purchasing
Division’s Central Warehouse Operations. During hurricane activation, the Purchasing Division is
responsible for the preparedness and operation of Broward County’s emergency supply County Staging
Area (CSA), which includes the receipt and distribution of Federal Emergency Management Agency
(FEMA) supplies that are used to stock multiple Points of Distribution located throughout the County for
Page 38
distribution to the public. In addition, the County’s hurricane supply locker and Emergency Distribution
Center warehouse operation is maintained. Direct support is provided to the Broward County Human
Services Department by Central Warehouse Operations by providing logistical support for the storage
and distribution of supplies and equipment needed to activate the County’s Special Needs Shelters.
Social Responsibility The Purchasing Division supports Broward County’s Vision for Unlimited Economic Opportunities through
several procurement program initiatives designed to stimulate the growth of local small business and
advance employment opportunities and equitable wage rates. In FY 2013, the Purchasing Division
continued to actively participate in outreach programs with the Office of Economic and Small Business
Development for local businesses and provide a monthly report to the Small Business Advisory Board on
matters relevant to the Board’s mandate. In addition, procurement programs include strategies to
secure state and federal funding sources to stimulate the advancement of local projects in support of
economic growth, while improving services to the citizens of Broward County.
Certified Vendor Participation Program
Certified businesses fall into one of the following participation programs: Small Business Enterprises,
County Business Enterprises or Disadvantaged Business Enterprises. A total of $42,303,122 was
awarded to prime contractors that are certified businesses. This amount represents 6% of total awards
of $663,922,700.
Figure 12 Awards to Certified Prime Vendors11
11
Includes vendors certified prior to the 2012 recertification process.
Page 39
Living Wage Program
The Living Wage Ordinance was enacted by the Board of County Commissioners on October 8, 2002 and
fully implemented on October 1, 2003 to promote the creation of full-time, permanent jobs that allow
Broward County citizens working in the service industry to support themselves and their families with
dignity while also benefitting the local economy. The Ordinance seeks to address the high costs of
employee turnover that negatively impacts Broward County taxpayers and the services provided to its
residents. As of September 30, 2013, a total of 72 Living Wage applicable contracts were open and
active.
In FY 2013, the Purchasing Division Living Wage Program activity and reports focused on the following
topics and matters of interest including: new contract awards, fiscal impacts, administrative efficiencies,
and customer service and agency training.
New Contract Awards — In FY 2013, 16 new Living Wage open-end service contracts were awarded with
a total estimated contract value of $25,444,859. These Master Agreements were for the following
services covered under the Living Wage Ordinance including, but not limited to: routine maintenance
services, janitorial services, clerical office work (temporary personnel services), passenger transportation
and automobile parking services, and landscaping, lawn, and agricultural services.
Fiscal Impact — Of the 16 new Living Wage Master Agreements awarded in FY 2013, no fiscal impacts
were determined attributable to Living Wage requirements based upon the bid/proposal submittal data
provided by the awarded service contractors.
Exemptions from Reporting — The Living Wage Ordinance allows service contractors to obtain an
exemption from the requirement to submit payroll reporting to the using agency’s Contract
Administrator every six months during the term of the contract, if it demonstrates to the satisfaction of
the Director of Purchasing that they have consistently paid their employees the Living Wage rate for at
least one year prior to entering into the service contract or wages subject to a collective bargaining
agreement (e.g. union contract). In FY 2013, all 7 vendors who applied for the exemption were
approved. Up-to-date, 47 vendors have been granted exemptions from reporting by the Director of
Purchasing.
Page 40
Major Projects
Residential Sound Insulation Program - This project is one component of Broward County Aviation
Department’s Noise Mitigation Program, and provides for the installation of acoustical materials
designed to reduce interior noise levels in 77 residential homes located in close proximity to the Fort
Lauderdale-Hollywood International Airport. The goal of this project is to offset the aircraft noise
impacts that are anticipated as part of the South Runway Expansion Program. The work consists of
sound insulation measures including new windows, exterior and interior doors, weather stripping,
insulation, drywall, and painting, cooling and heating systems with related electrical work, and lead
paint and asbestos remediation. The Board awarded this project on December 11, 2012 in the amount
of $4,159,011.
Runway, Crossfield Taxiways, and Holdpad Paving, Lighting, and Signage – This project provides for
the paving of taxiways, holdpads and the new South Runway at the Fort Lauderdale-Hollywood
International Airport. The project includes site preparation, storm drainage, concrete and asphalt
pavement, lime rock base, electrical conduit system, airfield lighting and signage, pavement markings,
Engineered Materials Arresting System installation, and underground water and sewer service, in
support of the overall South Runway Expansion Program. The Board awarded this project on May 14,
2013 in the amount of $87,697,296.
Terminal 3 Concourse E Security Checkpoint Renovation and Reconfiguration – This project is for the
renovation and reconfiguration of Security Checkpoint E at the Fort Lauderdale-Hollywood International
Airport, in order to provide more efficient queuing and passenger screening at the checkpoint. The new
security checkpoint will provide six passenger screening lanes, TSA offices, platforms, high ceilings, and a
reconfiguration of the checkpoint to provide TSA personnel with a more secure way to screen
passengers. The project also includes renovations to bathrooms, new terrazzo flooring, new carpet, new
ceilings, new lighting, painting, and installation of new stairs and elevators. This project supports the
Board’s vision for “Unlimited Economic Opportunities” and the objective to enhance and renovate
Terminals 1, 2 and 3 at the Airport. The Board awarded this project on June 4, 2013 in the amount of
$12,377,570.
Terminal 4 Apron Expansion – This project is for the expansion and reconfiguration of the existing
Terminal 4 aircraft apron to accommodate the new T4 concourse. The project is comprised of site
preparation, grading, building and pavement demolition, construction of concrete and asphalt
pavement, base course, pavement markings, airfield lighting, electrical and communication ductbanks,
storm drainage, underground water and sanitary sewer services, landscaping, fencing and retaining
walls at the Airport. This project supports the Board’s goal to “increase the economic strength and
impact of Port Everglades, the Broward County Convention Center and the Fort Lauderdale-Hollywood
International Airport in a sustainable manner balancing economy, environment and the community” and
its objective to increase passenger facilities in Terminal 4 at the Airport. The Board awarded this project
on September 10, 2013 in the amount of $37,964,000.
Page 41
Public Auction at Fort Lauderdale-Hollywood International Airport - The Purchasing Division conducted
a public auction to dispose of an abandoned airline at the Fort Lauderdale-Hollywood International
Airport. The sale included six (6) aircraft as well as the contents of hanger filled with parts and supplies.
The sale was instrumental in freeing up valuable airport runway and hanger space as well as eliminating
hazardous conditions at the airport. The public sale was conducted on 11/28/12 and generated gross
revenues of $51,215.34.
Maintenance Facility for the Aviation Department - This project consists of a new multi-story 66,000
square foot, tilt-wall facility to be located on the northeast side of
the airport property adjacent to the fuel farm. The new facility
will be comprised of office space, maintenance work bays, storage
for materials and equipment, fueling station (two 12,000 gallon
tanks) and onsite employee/visitor surface and rooftop parking.
The project also includes complete site work improvements
including lighting, landscaping, drainage and underground storage
tanks. The Board awarded this project on June 4, 2013 in the amount of $14,370,000.
Beach Renourishment Project - An emergency declaration by the Board was declared in December 2013
due to damage to A1A and the beach around Sunrise Blvd.
due to tropical storms from 2012. Emergency Quote
T1113401Q1 was competitively solicited for “State Road
A1A Beach Repair Monitoring Services” and was awarded
by the Purchasing Director in the amount of $1,165,410.
The work had to be completed after the Department of
Transportation completed the new shear wall at the beach
and prior to the start of turtle nesting season in April 2013. The project was completed ahead of
schedule and a similar project is expected in the next fiscal year. Pictures are attached.
Ravenswood Bus Maintenance Facility - Bid No. N1004304C1 for the Construction Management
Division in the total amount of $32,578,241. The purpose of this contract is to provide construction
services for renovation and reconstruction of the
Ravenswood Bus Maintenance Facility. The Ravenswood Bus
Maintenance Facility project will entail the construction of
the following new facilities: a 50,000 square-foot
maintenance building, a fuel and wash facility, a 13,000
square-foot operations facility and a three-story, 250-space
parking garage. Upgrading the facility will allow for maintenance and storage of 60-foot articulated
buses as well as providing improvements to the Facility. The new maintenance building will meet the
United States Green Building Council's requirements for Leadership in Energy and Environmental Design
(LEED) certification. The project will also require site work improvements including lighting, landscaping,
drainage and underground storage tanks. Construction will be carefully phased and planned to allow for
demolition and construction with minimal disruption of daily transit operations on-site in existing
structures and in temporary facilities.
Page 42
Temporary Personnel Services in the Total Amount of $6,336,153 - This contract provides blue collar,
white collar and special services personnel available to be used by all agencies reporting to the Board of
County Commissioners. Primary, secondary and tertiary vendors were selected for the each of the three
groups of staffing levels to ensure sufficient on-call staffing requests would be met on timely basis. Blue
collar positions include courier/mail room attendant, maintenance worker, concession attendant, park
aide and storekeeper. White collar positions include: office support clerk, secretary, legal secretary,
and data control operator, account clerk, customer service and accountant. Special services include
veterinary technician and animal care specialist. It was critical to separate the special services from blue
and white collar positions as special insurance requirements apply to those positions interfacing with
animals. The Human Resources Division is the Contract Administrator to insure compliance with state
and county guidelines, ordinances and the Fair Labor Standards Act.
All vendors must comply with the Immigration Reform and Control Act of 1986 (ICRA) which requires all
individuals hired after November 6, 1986 to provide employers with proof of citizenship or authorization
to work in the United States, all workers must have completed a drug and alcohol test and must conduct
criminal background checks of all personnel supplied to the County.
New Maintenance Building For Central Regional Park - Bid No. P1049503C1 for New Maintenance Building for the Central Regional Park in the amount of $1,139,227 awarded Feb 26, 2013. The purpose of this contract is to provide for the construction of a maintenance building, driveways, parking, walkways and an irrigation system. This is a new construction for a much needed maintenance building for maintenance of the entire park – that has a high volume of tourists and residents that visit the park for the fishing and boating, nature trails, playgrounds, water
park, a large multipurpose event field, etc.
Easterlin Park Administration Building - Bid No. Q1009816C1 for Easterlin Park Administration Building
in the amount of $910,500 awarded April 9, 2013.The purpose of this contract is to provide the
construction of a new administration building, driveways, walkways, irrigation system and landscape
restoration at Easterlin Park. The old administration building needed replacement as it is over 40 years
old, badly damaged and infected with termites.
Lodox Radiography For Medical Examiner’s Office - The Purchasing Division procured a LODOX
Radiography System for the Office of the Medical Examiner
and Trauma Services. The District 17 Medical Examiner’s
Office became the first in Florida, and one of only twelve
(12) forensic offices in the United States to acquire the
state-of-the-art imagery technology. The system can record
3 different views of a person’s body in approximately 15
seconds. The scanner will provide enhanced capability for
the Medical Examiner in forensic investigations, particularly
criminal investigations.
Page 43
Change Orders Process Improvements - Collaborated with the Purchasing Division’s Information Technology Group and Public Works Department to implement revision to the processing of change orders, thereby resulting in increased efficiencies. Historically, the change order process required the manual delivery of the required documentation to Purchasing staff. The manual process has now been improved through automation by allowing the using agency to submit the change order documents electronically via Purchasing’s software module. Provide CAB Training to Water and Wastewater Services and Parks & Recreation Division - Coordinated with Water and Wastewater Operations Division to provide expanded training to Water and Wastewater Services’ personnel on procurement processes, in order to foster a more productive working relationship, thereby resulting in a greater understanding of the County’s procurement processes and increased efficiencies.
Organizational Focus for Fiscal Year 2014 It has been another successful year of organizational development, growth and achievements. The
Division successfully re-organized, implemented a business plan, created the foundation to move
forward with an electronic bidding system and enhanced the web-based P-Card management software
solution. In this upcoming year, the Division will continue to focus on aligning staff’s performance with
organizational goals. For this to materialize, our employees must have an understanding and a direct
line of sight between performance expectations, performance evaluations and achieving results that
support the Division’s strategic plan, goals and objectives.
Evolving as a Division, so we can continue to be an agile, fluid organization to meet the constant
demands and expectations of our customers is the perpetual challenge that we must respond to. Thus,
our organizational focus will closely examine, identify, and implement business improvements. This will
require an effective and ongoing training curriculum for our own employees, County employees and
vendor community to have them acquire the necessary knowledge and competencies about new
policies and procedures, processes, and software systems. Hence, the key focus for FY 2014 includes:
Forming a Procurement Taskforce to identify new best practices to incorporate into our policies
and procedures, various procurement processes, Procurement Code, and technology platforms
that support the business operations
Developing on-line training for County employees on procurement processes (e.g. P-Card
Holders, P-Card Approvers).
Continuing with the implementation of a cloud-based software solution (BidSync) to improve
upon bid notifications and transforming to an e-procurement solutions for sourcing of Request
for Information, Request for Quotations, Request for Proposals, Request for Letters of Interest,
and Invitation for Bids; Contract Lifecycle Management; and Procure-to-Pay; to ensure
compliance, increase productivity, and achieve cost savings
Conducting Vendor Outreach and (BidSync) Registration Drives and How to do Business with
Broward County Seminars
Page 44
Creating new performance measures to capture processing times on sourcing events and post-
sourcing events, such as amendments, change orders, two-party agreements, and work
authorizations
Serving as functional lead and subject matter experts to implement an Enterprise Resource
Planning (ERP) software system
Completing the enhancement of Purchasing’s web-based enterprise-wide solicitation/contract
administration application (Contracts Central) to capture procurement related process
timeframes and non-procurement related process timeframes
Developing an interactive webpage on the Purchasing Division website for contact information
and organizational structure
Continuing with automating the approval transaction process and implementing receipt
imaging, commodity codes, and Master Agreements into the web-based P-Card management
software solution
Executing succession plan strategies to hire, train, and develop new employees to replace
employees scheduled to retire within the next several years to prevent gaps in operational
effectiveness, and
Investing in current staff by providing training, growth opportunities and equitable
compensation to maintain employee retention.
