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Purchasing Division Annual Report
Finance and Administrative Services Department
Purchasing Division
Broward County Board of County Commissioners
FY 2010
FY 2010
Table of Contents Table of Contents ................................................................................................................................. 1
Message from the Director of Purchasing ............................................................................................. 3
Mission Statement ............................................................................................................................... 4
Organizational Structure ...................................................................................................................... 5
Statutory Authority .............................................................................................................................. 6
Purchasing Division Accomplishments ................................................................................................. 7
Awards, Accreditations, and Certifications ............................................................................................... 7
Technology ................................................................................................................................................ 7
Organizational Improvements .................................................................................................................. 8
Customer Service and Outreach ............................................................................................................... 9
Financial Statistics for Fiscal Year 2010 ............................................................................................... 11
Procurement Activities............................................................................................................................ 11
Awards by Agency ................................................................................................................................... 12
Vendor Participation ............................................................................................................................... 13
Contracts Awarded to Vendors by State, County and City ..................................................................... 14
Statistical Comparison with Previous Years ........................................................................................ 17
Contract Awards ..................................................................................................................................... 17
Vendor Awards by Region ....................................................................................................................... 18
Cost Savings ............................................................................................................................................ 19
Procurement Operations.................................................................................................................... 20
Procurement Processing Times ............................................................................................................... 20
Protests ................................................................................................................................................... 22
Sterling Initiatives ................................................................................................................................... 24
Delegated Purchasing Authority Audit Program ..................................................................................... 25
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Organizational Development Program ................................................................................................... 25
Central Warehouse Operations .......................................................................................................... 27
Surplus Property Disposal ....................................................................................................................... 27
Emergency Preparedness Operations ..................................................................................................... 27
Community Economic Development .................................................................................................. 28
Certified Vendor Participation Program ................................................................................................. 28
Job Order Contracting Program .............................................................................................................. 28
Living Wage Program .............................................................................................................................. 29
External Funding Sources/Stimulus Funds .............................................................................................. 31
Organizational Focus for Fiscal Year 2011 ........................................................................................... 32
Mission Statement The Purchasing Division provides a unified purchasing system that ensures integrity and fairness, with centralized responsibility for oversight of solicitation, vendor selection, negotiation, award, contract management, reporting, disposal of surplus property and emergency event support for the benefit of Broward County agencies.
The major objectives are:
• to comply with the comprehensive federal, state and county procurement/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 good quality products and services at competitive prices
• to ensure equal opportunity to all qualified vendors and contractors wishing to compete for County contracts
• to ensure that small and disadvantaged businesses have the maximum opportunity to participate in 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 the professional procurement specialists to responsibly ensure that the County receives the best value obtainable for each tax dollar spent.
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Organizational Structure The Purchasing Division’s 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 includes management of the County’s procurement practices, planning for future purchasing challenges, maintaining internal quality assurance and recommending policy. 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, audit of delegated purchases and purchasing cards, agenda quality control, Living Wage guidance and education and outreach programs to facilitate efficient and effective achievement of Operations and Executive Management. The Administrative Services line of business is executed through the Special Projects/Administrative Support and Information Technology 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 and Central Warehouse/Logistics, Construction, Centralized Service Centers, and Negotiations 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 State and Federal mandates.
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Statutory Authority The Purchasing Division was created and its duties outlined in Broward County’s Procurement Code for the purpose of providing Broward County with a unified purchasing system, with centralized responsibility for processing of some work by delegation. This 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 persons who deal with County Procurement. This 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 the 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 Sunshine Law, Section 286.011 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
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. 2001-15 Drug Free Workplace, Ordinance No. 92-8 County Business Enterprise Act, Ordinance No. 2009- 40 Business Opportunity Act, Ordinance No. 2004-07 Living Wage Ordinance, Ordinance No. 2008-45 Local Preference, Ordinance No. 2004-29 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
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Purchasing Division Accomplishments The Purchasing Division has advanced several process improvements over the past year and significant progress has been realized in making the procurement actions more effective. Sterling process actions were initiated including improvements to the Request for Letters of Interest, Request for Proposals, Quote/Bid, Sole Source, Sole Brand, and Emergency procurement methods. Mapping of these procurement methods and Voice of the Customer focus group discussions served to develop workable plans, designed to reduce processing time, streamline procedures and improve communication with clients.
Organizational improvements included the review of several internal control procedures and related processes in order to improve all facets of Purchasing Division operations and optimize employee knowledge, skills, and abilities to meet changing workforce needs and challenges.
Customer service and outreach focused on collaborating with client agencies at Libraries, Traffic Engineering, Human Services, Transportation, Water and Wastewater Services, Waste and Recycling Services, Facilities Maintenance, Construction Management, Port Everglades, Seaport Construction and Aviation to develop a strategic procurement plan to better serve operational needs with improved efficiency and cost effectiveness.
Awards, Accreditations, and Certifications • Achieved the Award of Excellence in Public Procurement from the Florida Association of Public
Purchasing Officers, Inc. Additionally, the Purchasing Division received the Best Practices Award for its weekly webcast of the Bid Opening meeting in the category: Innovation in the Purchasing Process. The award recognized the Purchasing Division for innovation, professionalism, e‐procurement, productivity and leadership. “The County is one of only twelve (12) Florida agencies to receive the Award of Excellence.”
• 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.
• Increased to 55% the number of Purchasing Division agents holding national certification as Professional Public Buyers or Officers through the National Institute of Governmental Purchasing.
Technology • Upgraded the Purchasing Division’s public website as part of the County’s conversion of broward.org
to SharePoint. The new site is more dynamic and configurable resulting in a reduction of the time to post solicitation announcements to the Purchasing Division’s website.
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• Converted the majority of the Project Management Information System (PMIS) to Contracts Central with only one module remaining for conversion in Fiscal Year 2011 (hereinafter referred to as FY 2011). Additionally, the Purchasing Division made significant contributions to the development of a vendor portal accessible through Vendor Self Serve to be used for the electronic submission of Monthly Utilization Reports from prime vendors.
• Enhanced the Purchasing Division’s BC‐Net site in support of the Division’s efforts to provide information to client agencies.
Created archives for the Procurement Workshop presentations, Procurement Matters Newsletter and the Purchasing Division Annual Report.
Developed a dynamic Standardization library which provides the actual standardization documentation and is searchable using the key document identifiers.
Provided a page which shows all reported Cone of Silence violations with the vendor involved and the final determination.
Created an online version of the Request for Letters of Interest/Request For Proposals Status Report accessible from the Purchasing BC‐Net page.
• Automated routine reports through Web Intelligence (WEBI) to ensure timely availability of the daily, weekly and monthly reports, and to increase labor efficiency. Improved and developed internal management reports to provide meaningful data.
Organizational Improvements • Established a division‐wide cross‐training program improving agent skills and streamlining workflow.
• Increased professional development through strategic planning retreats with staff which included segments to enhance purchasing processes and operational effectiveness.
• Implemented monthly client agency and vendor surveys, providing immediate feedback, by project, from stakeholders allowing the Purchasing Division to benchmark service and improve quality of services in FY 2011.
• Served as a Sterling project model: reviewed and mapped the Quote/Bid, Request For Letters of Interest/Request for Proposals, and special procurements; executed the Quote/Bid action plan.
• Implemented a process to streamline the procurement of sole source procurements where it can be demonstrated that there are no sub‐contracting opportunities, reducing processing times by five to six weeks.
• Partnered with the Risk Management Division to establish a central repository for Certificates of Insurance, making the certificates accessible county‐wide utilizing the Contracts Central application.
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• Revised Chapters 7, 8, 9, 10 and 11 of the Purchasing Internal Control Handbook. These Chapter revisions were developed in alliance with client agencies and now provide a high level framework that delineates critical control points in procurement processes for professional and general services, delegated purchasing, vendor performance and evaluation, and threshold calculations for change orders. Furthermore, these changes align procedures with operational needs, quality assurance and efficiency in procurement practices.
Customer Service and Outreach • Maintained overall customer service satisfaction in Fiscal Year 2010 (hereinafter referred to as FY
2010) utilizing a strategy of a collaboration with emphasis on accessibility, quality and service. Improved overall rating to 4.25; 5.0 being the highest measure.
Figure 1 FY 2010 Annual Customer Satisfaction Survey Results by Section
1
• 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 associations that emphasize education and best practices for purchasing professionals as well as continual vendor outreach efforts. The most recent vendor outreach and education effort was the NIGP Reverse Trade Show held on November 9, 2010 at the Broward County Convention Center.
• Launched a training program series for Evaluation Committee members and project managers who handle Request for Proposals procurement.
• Conducted 23 agency presentations and 77 classes, training 880 employees, on delegated purchasing, Requests for Letters of Interest, Request for Proposals, Advantage Procurement, Purchasing Card
1 Started collecting information for Aviation and Port and Special Projects in FY 2009
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procurement, Project Management Information Management System (PMIS) and Purchasing Division policies and procedures.
• Converted 10% (3,204) of registered vendors to Vendor Self‐Service providing vendors with a 24/7 on‐ne registration service.
electronic quarterly newsletter‐‐ Procurement Matters which is distributed widely throughout the County. The newsletter continues to provide timely and relevant information
li
• Continued producing an
to the client agencies and Purchasing staff has received numerous comments from client agencies regarding the usefulness of the newsletter.
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Financial Statistics for Fiscal Year 2010 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. Procurement documents represent a commitment by Broward County to procure goods and services. With the exception of Purchasing Card (hereinafter referred to as P‐Card) transactions, all procurement documents are inclusive of Delivery Orders, Delegated Purchases, Exempt Purchases and Central Purchases which are defined in the table below.
P‐Cards All credit card purchases made through Broward County’s P‐Card program up to $2,000
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 Purchases Purchases made by the Central Purchasing Division greater than $3,500
Procurement Activities A total of 61,341 purchases were processed in FY 2010, for a total award amount of $585,182,5402. The Board of County Commissioners approved $452,776,033 in purchases and the Director of Purchasing approved $117,995,274 in purchases. Included in the total are purchases processed with P‐Cards which totaled $14,411,233 for FY 2010, of which Broward County received rebates totaling $143,9153. Figures 2a and 2b summarize the methods utilized for the Purchasing Division’s activity for FY 2010.
Figure 2a FY 2010 Number of Purchasing Awards
(Total 61,341)
Figure 2b FY 2010 Purchasing Awards by Dollars
(Total $585,182,540)4
2 This amount does not include expenditures and transfers to other governmental agencies made through direct vouchers which totaled an additional $1,092,888,391. This amount also does not include subsequent change orders, amendments or cancellations. 3 When calculating P-Card expenditures, the date range used is 10/4/09 – 9/5/10 but the calculation for the 1% rebate uses the date range 10/1/09 – 9/30/10 resulting in a slight difference between the actual rebate and 1% of the P-Card expenditures during the date range utilized. 4 Value differences due to rounding
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Awards by Agency
The following chart delineates the transactions categorized by client agencies during FY 2010.
Figure 3a Contract Awards by Agency
Agency Count5 Award $ $ in
Millions % Public Works Department 3,507 $197,766,312 $197.8 33.8%Aviation Department 558 $115,387,136 $115.4 19.7%Department of Transportation 2,263 $91,790,218 $91.8 15.6%Port Everglades Department 437 $50,064,922 $50.1 8.6%Finance & Administrative Services Department 648 $48,522,671 $48.5 8.3%Community Services Department 1,008 $33,661,023 $33.7 5.8%Boards & Other Agencies6 323 $18,787,308 $18.8 3.2%Human Services 1,124 $8,168,438 $8.2 1.4%Environmental Protection & Growth Management 536 $3,031,047 $3.0 0.5%All Other Agencies7 798 $2,739,424 $2.7 0.5%County Administration8 192 $852,808 $0.8 0.1%All P-Card Purchases 49,947 $14,411,233 $14.4 2.5% Total 61,341 585,182,540 $585.2 100.0%
Figure 3b
Contract Awards by Agency
5 The Count includes P-Card transactions, Delivery Orders, Delegated Purchases, Exempt Purchases and Central Purchases 6 Boards & Other Agencies includes: Management & Efficiency Study Committee, Historical Commission, Metropolitan Planning Organization, Planning Council, Board of Rules & Appeals, Medical Examiner & Trauma Services, and Greater Fort Lauderdale Convention & Visitors Bureau. 7 All Other Agencies includes: County Commission, Elected Officials, Judicial, etc.
8 County Administration includes: County Administration, Office of Management and Budget Services, Emergency Management Operations, Office of Economic and Small Business Development, Office of Public and Governmental Relations, Office of Public Communications, Office of Equal Opportunity, and Office of Housing Finance.
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Vendor Participation The following chart delineates the expenditures with the top ten vendors during FY 2010.
Figure 4a Contract Awards by Vendor
Vendor Name Count9 Award $ $ in
Millions % North American Bus Industries (NABI) 72 $31,969,616 $32.0 5%Broward County Sheriff's Office 22 $27,867,452 $27.9 5%Southwest Airlines 1 $26,325,752 $26.3 4%Arthur J Gallagher Risk Management Services 12 $25,502,705 $25.5 4%Lanzo Construction Company Florida 3 $18,560,630 $18.6 3%Post Buckley Schuh & Jernigan 1 $17,033,474 $17.0 3%Sunshine Cleaning Systems Inc 22 $15,114,093 $15.1 3%Ocean Bay Construction Inc 1 $14,982,391 $15.0 3%James B Pirtle Construction Company Inc 1 $14,006,533 $14.0 2%Giannetti Contracting Corp 1 $13,305,118 $13.3 2%MBR Construction Inc 3 $10,245,700 $10.2 2%All Other Vendor Awards10 61,202 $370,269,076 $370.3 64% Total 61,341 $585,182,540 $585.211 100%
Figure 4b
Contracts Awards by Vendor
9 The Count includes P-Card transactions, Delivery Orders, Delegated Purchases, Exempt Purchases and Central Purchases 10 Includes P-card purchases 11 Value differences due to rounding
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Contracts Awarded to Vendors by State, County and City During FY 2010, the County awarded 76% of its contract dollars within the State of Florida. Fifty‐four percent of the County’s total contracts were within Broward County to support our local businesses. P‐Card purchases are not included in the percentages for the State of Florida and Broward County. 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 includes the dollars spent in various cities within Broward County.
Figure 5a Contracts Awarded to Vendors by State
State Count12 Award $ $ in
Millions % Florida 9,392 $445,641,816 $445.6 76.2% California 230 $44,071,032 $44.1 7.5% Texas 315 $31,433,878 $31.4 5.4% Pennsylvania 115 $14,920,193 $14.9 2.5% Oregon 26 $5,018,610 $5.0 0.9% Minnesota 72 $4,218,047 $4.2 0.7% North Carolina 56 $3,631,966 $3.6 0.6% All Other States 1,188 $21,835,765 $21.8 3.7% All P-Card Purchases*13 49,947 $14,411,233 $14.4 2.5%
Total* 61,341 $585,182,540 $585.214 100.0%
Figure 5b
Contracts Awarded to Vendors by State
12 The Count includes P-Card transactions, Delivery Orders, Delegated Purchases, Exempt Purchases and Central Purchases 13 P-Card includes purchases made with vendors who are in Florida as well as outside Florida. 14 Value differences due to rounding
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Figure 5c Contracts Awarded to Vendors by County
Florida Counties Count15 Award $ $ in
Millions % Broward 7,228 $315,093,306 $315.1 53.7%Miami-Dade 1,067 $63,735,160 $63.7 10.9%Palm Beach 383 $41,852,253 $41.9 7.2%Other Florida Counties 729 $25,075,640 $25.1 4.3%Outside Florida 1,987 $125,014,948 $125.0 21.4%All P-Card Purchases16 49,947 $14,411,233 $14.4 2.5% Total 61,341 $585,182,540 $585.2 100.0%
Figure 5d
Contracts Awarded to Vendors by County
15 The Count includes P-Card transactions, Delivery Orders, Delegated Purchases, Exempt Purchases and Central Purchases 16 P-Card includes purchases made with vendors who are in Broward County as well as outside Broward County.
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Figure 5e Contracts Awarded to Vendors by City
Broward County City Count17 Award $ $ in
Millions % Fort Lauderdale 2,366 $112,762,061 $112.8 19.3%Pompano Beach 699 $43,834,682 $43.8 7.5%Deerfield Beach 447 $37,008,808 $37.0 6.3%Hollywood 451 $21,918,962 $21.9 3.7%Oakland Park 229 $17,894,718 $17.9 3.1%Davie 395 $16,063,147 $16.1 2.8%Sunrise 544 $15,924,958 $15.9 2.7%Other Broward County Cities 2,097 $49,685,970 $49.7 8.5%Outside Broward County 4,166 $255,678,001 $255.7 43.6%All P-Card Purchases18 49,947 $14,411,233 $14.4 2.5% Total 61,341 $585,182,540 $585.2 100%
Figure 5f
Contracts Awarded to Vendors by City
17 The Count includes P-Card transactions, Delivery Orders, Delegated Purchases, Exempt Purchases and Central Purchases 18 P-Card includes purchases made with vendors who are in Broward County cities as well as outside Broward County.
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Statistical Comparison with Previous Years
Contract Awards Figures 6a through 6c reflect the comparative data for contract awards since Fiscal Year 2008 (hereinafter referred to FY 2008). Overall, trends are consistent with the fluctuations in the economic environment.
Figure 6a Comparison of Contract Award Dollars by Method
Purchasing Contract Award Dollars FY 2008 FY 2009 FY 2010
Delivery Orders $302,896,239 $287,380,921 $314,238,320Delegated Purchases $6,264,464 $3,779,273 $2,551,114Exempt Purchases $6,858,437 $6,473,468 $6,382,768Central Purchases $274,656,320 $320,686,174 $247,599,105P-Cards $13,462,831 $15,551,328 $14,411,233 Total $604,138,292 $633,871,164 $585,182,540
Figure 6b
Comparison by Approval Authority
Authority Level FY 2008 FY 2009 FY 2010Board approved $448,795,176 $486,548,046 $452,776,033Director of Purchasing approved $141,880,285 $131,771,790 $117,995,274P-Cards $13,462,831 $15,551,328 $14,411,233 Total $604,138,292 $633,871,164 $585,182,540
Figure 6c
Comparison of Contract Award Dollars over Time
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Vendor Awards by Region Awarding contracts to vendors within the County and State has remained a focus for the Purchasing Division to support economic vitality within our region. Of the total procurement dollars expended in FY 2010, 76% was awarded to vendors within the State of Florida; 54% of the total procurement awards went to local Broward County vendors.
Figure 7a Comparison of Regional Contract Award Dollars
Vendor Awards FY 2008 FY 2009 FY 2010Expenditure within Florida $464,420,368 $521,661,803 $445,641,816Expenditure within Broward County $320,602,137 $375,088,207 $315,093,306
Figure 7b
Comparison of Regional Contract Award Dollars
Page 18
Cost Savings The Purchasing Division realized a 53% increase in documented cost savings from FY 2009. FY 2010 cost savings totaled $23,443,923. These cost savings resulted from staff initiatives in seeking voluntary reductions, cooperative purchasing, rebates, skilled negotiations involving a number of large contracts particularly dealing with Airport Expansion projects, and due diligence in researching the open market for the best product at the best value.
Figure 8a Comparison of Cost Savings
Cost Savings FY 2008 FY 2009 FY 2010
Commodities $22,448 $179,031 $120,024Construction $895,054 $2,191,365 $342,277Negotiations $3,130,271 $7,468,831 $21,532,603Centralized Centers (Aviation/Port Everglades) $319,263 $1,046,134 $41,872P-Card Rebates $134,628 $155,513 $143,915Office Depot Rebates19 $11,800 $11,209 $7,018Living Wage Escalation Exclusion $2,365,569 Not Applicable Not Applicable Total 20 $6,879,033 $11,052,083 $22,187,711
Figure 8b Comparison of Cost Savings
19 Excludes electronic payment rebates. 20 Value differences due to rounding.
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Procurement Operations
Procurement Processing Times Over the past several years, the Purchasing Division has focused improvement efforts on procurement processing efficiency. Fundamental to that goal is the timely procurement of goods and services. Since FY 2008, the Division has realized an overall reduction of 9% in procurement processing times.
Procurement methods utilized and related processing times vary dependent upon the scope and complexity of the procurement request, the nature of the goods and services being purchased, the responsiveness of client agencies and the level of available agent resources. The fluctuation in processing time for the various procurement methods is within reasonable standards given the variables inherent to the processes.
Figure 9a Comparison of Processing Times by Award Amount
FY 2008 FY 2009 FY 2010 # of
Awards Average Days
to Process # of
AwardsAverage Days
to Process # of
Awards Average Days
to Process Less than $30,000 575 65.49 603 56.90 542 59.86 Non-Construction $30,000 to $250,000 293 132.48 248 106.55 227 101.19
Construction $30,000 to $250,000 36 143.58 36 173.08 33 177.00
Non-Construction Greater than $250,000 60 199.62 65 228.09 53 291.40
Construction Greater than $250,000 40 363.43 38 306.92 38 266.08
Total21 1004 107.73 990 94.40 893 97.65
Figure 9b Overall Average Processing Times
21 Because this data focuses on the Purchasing Division processing times, only a subset of the overall awards are included in this analysis. Therefore, the number of awards shown here will not match the numbers provided in the Financial Statistics area of the report. The summation of the average days to process is the average of the raw data not the average of the above categories.
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Process improvements have benefitted individual process methods. The Construction Conventional and Construction Two‐ Step Hybrid were both positively affected by improvements in the County Attorney Form process. Process improvements as well as proper staffing levels allowed the Purchasing Division to complete a number of lengthy procurements in FY 2009 and 2010. Since processing time is counted in the year that the procurement is completed, FY 2009 saw an increase in the average processing time for the process method Request for Letters of Interest or Request for Proposals and Construction Two‐Step Hybrid, which uses the Request for Letters of Interest to short‐list vendors.
Figure 9c Fiscal Year Comparative
Processing Times by Process Method
FY 2008 FY 2009 FY 2010 # of
Awards Average Days
to Process # of
AwardsAverage Days
to Process # of
Awards Average Days
to Process Construction Conventional County Attorney Form (Design/Bid/Build)
27 341.26 21 214.24 19 216.48
Construction Two Step Hybrid (Construction Manager @ Risk Modified)
2 459 6 517.17 9 434.89
• Step 1 - Short Listing 191 212.67 208.89 • Step 2 - Bid Proposal 268 304.5 226
In-house Construction (Invitation For Bid) 34 149.82 37 193.27 45 205.58
Quote/Bid Process 564 80.85 730 86.73 565 94.33 Request for Letters of Interest or Request for Proposals 26 301.69 39 446.82 35 386.46
Figure 9d
Average Processing Times by Process Method over Time
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Protests Inherent to any open competitive process are two constants: 1) applied decision making that adheres to a prescribed process with decisions rendered in an equitable, ethical, and consistent manner; 2) those who challenge the decision and the process.
The Broward County procurement process is not exempt from those who perceive that they have been aggrieved and protest the procurement decision. The Purchasing Division has received 24 protests during Calendar Year 2010. Two of these protests were carried over from Calendar Year 2009. Of the total 24 protests, the Purchasing Division has resolved 23 of them and prevailed in the one protest that went to a hearing. This validates consistent adherence to established procurement policy and regulations in the procurement processes. Since the Purchasing Division began keeping records in 2003 Broward County has prevailed in all protest rulings except two which is less than 1% of all protests received.
In 2009, the Board of County Commissioners approved the Purchasing Division’s recommendations for changes in the Procurement Code affecting the processing of protests. The Procurement Code was again refined in 2010 to further clarify the process for handling protests. In both cases, the Procurement Code revisions were designed to expedite award of County projects while providing vendors with due process for redress of grievances.
From Calendar Year 2009 to Calendar Year 2010, the number of protests has dropped by 40%.
Figure 10a Protests by Calendar Year (1/1/2010 through 12/31/2010)22
Calendar Year
# Received and Carried
Over #
Resolved# Of
Hearings
# For Broward County
# Against Broward County
# Carried
Over 2003 28 28 3 3 0 0 2004 34 34 3 3 0 0 2005 44 42 5 5 0 2 2006 27 24 2 1 1 3 2007 48 45 3 2 1 3 2008 34 30 5 5 0 4 2009 40 38 5 5 0 2 2010 24 23 1 1 0 1 Total 279 264 27 25 2 15
22 Includes adjustments from what was reported in 2009.
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Figure 10b Protest by Calendar Year
# Received and Carried Over
# Of Hearings
# Against Broward County
# Resolved
# For Broward County
# Carried Over
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Sterling Initiatives In our ongoing commitment to continually improve delivery of service to our client agencies, the Purchasing Division, in concert with all the Finance and Administration Services Divisions, is in full swing to deliver “Our Best. Nothing Less.” through customer focused process improvements.
“Our Best. Nothing Less.” is Broward County’s official business model for performance excellence, endorsed and approved by the Board of County Commissioners. This model provides a framework and an assessment tool for understanding organizational strengths and opportunities for improvement. The model is based on research and best practices of high performing organizations across the nation.
As part of a department‐wide implementation plan, the Purchasing Division has implemented a phased approach toward achieving performance excellence:
• Phase 1: Identify Key Processes for improvement
• Phase 2: Map the processes as they currently exist
• Phase 3: Gather customer feedback on the processes
• Phase 4: Develop process improvements based on customer feedback and
• Phase 5: Measure the effectiveness of improvements. These five phases will be routinely cycled to ensure our processes continue to meet the current need of our client agencies.
The Purchasing Division has identified and mapped several key procurement methods for our initial round of process improvements including: Quote/Bid, Request for Letters of Interest, Request for Proposals, Sole Source, Sole Brand, and Emergency procurements.
The Purchasing Division is currently engaged in Phase 3 of the plan: gathering customer feedback on the process. To capture customer feedback on service, two new ongoing survey programs have been implemented, the Vendor Feedback Survey on Broward.org/Purchasing, and the Client Agencies Procurement Follow‐up e‐mail survey. Both these tools have already provided valuable feedback and suggestions for improvements which are being implemented. In addition, focus group meetings are being held with client agencies to acquire detailed feedback on our Key Processes.
As the Purchasing Division continues its efforts to perpetually improve the delivery of service and to provide clients with a WOW experience, feedback from our client agencies will continue to be encouraged through surveys and focus groups. This feedback is invaluable in ensuring the procurement system is the very best it can be.
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Delegated Purchasing Authority Audit Program The Delegated Purchasing Authority Audit Program provides oversight of Certified Agency Buyers and the Purchasing Card (P‐Card) Program. Delegated purchasing authority by the Director of Purchasing is a tool used to increase efficiency in the procurement process for client agencies. As part of its oversight responsibility, the Purchasing Division audits the Certified Agency Buyers (CAB) and P‐Card Program to ensure client agencies are managing delegated authority correctly and consistently with the Procurement Code and the Purchasing Division’s Internal Control procedures. The audit program also allows the Purchasing Division to continuously evaluate how to improve and expand delegated authorities. Because a physical audit of delegated purchasing is conducted for CABs and P‐card holders and approvers, the Purchasing Division provides ongoing training to help employees to meet and maintain audit standards.
In FY 2010, the CAB Audit Program was further revised to improve the criteria matrix used to evaluate performance. Four Purchasing staff members were assigned to complete audits for 21 client agencies. The 21 agencies represented those agencies that had received major or minor violations in FY 2009. Any agency that achieved a satisfactory audit finding was not audited in FY 2010. Four agencies (19%) were found to be fully compliant with procurement policies, ten agencies (48%), had minor violations, and two agencies (9%) had major procurement policy violations. All agencies with minor or major violations were required to submit a corrective action plan and one agency with major violations was required to send their CABs for retraining. The remaining five agencies have had their audits postponed to FY 2011 because there was not enough delegated purchase orders issued to warrant an audit. Audit of the Purchasing Card Program reviewed the activities of 847 card holders and identified violations resulting in the cancellation of seven P‐cards in FY 2010.
The information gathered from the delegated purchasing authority audit program shows improvement in the implementation of delegated procurement practices county‐wide. The percentage of client agencies with major deficiencies decreased from 49% in FY 2009 to 9% in FY 2010; which is an 81% decrease. The delegated authority audit program continues to be a principle way in which the Division interacts and educates client agencies.
Organizational Development Program Because the purchase of goods and services is almost always a collaborative process between initiating client agencies and the Purchasing Division, the Division provides specialized training and outreach opportunities to enhance this collaboration and to ensure consistency in procurement actions. 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. The Purchasing Division scheduled 77 classes and trained over 880 County employees in FY 2010. The Division’s classroom training schedule was further augmented by 23 presentations delivered to client agencies by purchasing managers and agents in FY 2010.
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The Purchasing Division’s Organizational Development Program continues to provide centralized, instructor‐led procurement training for all client agencies in Broward County. The training is unique in that it is delivered by purchasing experts. The training the Purchasing Division delivers:
• 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 County employees as efficiently as possible and
• communicates purchasing policy requirements to County agencies.
The Purchasing Division is the only County agency currently providing instructor‐led training in Advantage Procurement. In FY 2010, six Advantage Procurement classes were held and 35 people were trained. Advantage classes are required for those performing delegated purchasing within client agencies. Delegated purchasing is done by CABs who serve under the authority of the Director of Purchasing. CABs must attend certification training and in FY 2010, 52 employees attended the certification training. The Purchasing Division also coordinates the P‐Card Program and recommends that all P‐card holders and approvers meet an annual training requirement; an online tutorial was developed for this purpose. Over 100 employees received classroom P‐card training and 405 employees successfully completed the online tutorial in FY 2010.
In FY 2010, the Purchasing Division focused on developing and promoting internal personnel to fill key organizational positions through the establishment of a cross‐training program. The Purchasing Division also launched a new training series for Evaluation Committee members and project managers who handle Request for Proposals (RFP) procurement. In FY 2010, 11 RFP classes were held for 87 employees. The Purchasing Division is routinely on the agenda of the Contract Administrator/Project Manager Workshops hosted quarterly by the Public Works Department. Project Managers in Broward County are required to track their construction‐related projects in the Project Management Information System (PMIS) and Contracts Central. Since PMIS and Contracts Central are managed by the Purchasing Division, the Division held 28 PMIS/Contracts Central classes in FY 2010 to support this mandate.
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Central Warehouse Operations
Surplus Property Disposal The Purchasing Division’s Central Warehouse serves as the centralized processing center for sale and disposal of surplus property. The centralized processing of surplus provides accurate disposal records for all County property while also ensuring that the County is in compliance with Florida Statutes relating to the disposal of surplus. The Central Warehouse Operations also manages the County’s donation program making property available to local non‐profit organizations. Computers donated to local non‐profit organizations are being utilized to provide educational and career opportunities to Broward County residents.
The Central Warehouse Operations coordinated and processed $1,124,015 in surplus property sales in FY 2010. The decrease in surplus sales from the previous year is attributable to fleet vehicles being held longer resulting in the disposal of fewer vehicles.
Figure 11 Surplus Sales Dollars by Fiscal Year
Emergency Preparedness Operations Much of Broward County’s emergency logistics operations are centered through the Purchasing Division’s Central Warehouse Operations. During hurricane activation, the Purchasing Division is responsible for the activation and operation of the County’s emergency supply staging areas and for the receipt and distribution of FEMA supplies. 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 with logistical support for the storage and distribution of supplies and equipment needed to activate the County’s Special Needs Shelters.
During FY 2010, Purchasing Division staff participated in a statewide hurricane exercise with the State of Florida Division of Emergency Management and the Division’s Logistics Team conducted a comprehensive hurricane field training exercise in conjunction with the Broward County Emergency Management Division and other agencies. With a combination of classroom instruction, FEMA courses, and tabletop and field exercises, the Purchasing Division has taken an active role in ensuring that staff is prepared to respond in the event of a required emergency activation.
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Community Economic Development The Purchasing Division supports Broward County’s Vision Goal‐‐ Economic Opportunities are Endless ‐‐ through several procurement program initiatives designed to stimulate the growth of local small business and advance employment stability and equitable wage rates. 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 A total of $65,749,411 was awarded to prime contractors that are certified businesses. Certified businesses fall into one of the following participation programs: Small Business Enterprises, County Business Enterprises or Disadvantaged Business Enterprises. This is 11% of total awards ($585,182,540), a 21% decrease from FY 2009. This decrease is consistent with the central and delegated spending trends.
Figure 12 Awards to Certified Prime Vendors
Job Order Contracting Program The pilot program for the Job Order Contracting (JOC) was initiated in May, 2008 for use by the Public Works Department, Facilities Maintenance Division. Contracts with four County Business Enterprise (CBE) firms were approved by the Board with a maximum potential spend of $20 million. A CBE goal of 35% was also established. In August 2009 the Board approved the expansion of the JOC program to include construction work performed by all of the major County agencies. The program is no longer exclusive to certified CBE firms as the prime contractors.
The program has continued successfully to provide a method of accelerating the contracting and completion of small construction and repair projects utilizing pre‐priced tasks identified in the JOC Construction Catalog. For the FY 2010, the encumbered expenditure totaled $9,197,590 of which
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$6,004,905 (65.29%) was committed to CBE certified firms. The four prime contractors self performed work in the amount of $4,043,887, and sub‐contracted $1,961,018 to CBE certified firms.
On August 28, 2010, the Board awarded one open‐market firm contract and one certified CBE firm contract, for use by the Aviation and Port Everglades Departments. The contracts to the open‐market firms have a maximum potential expenditure of $12,000,000 over three years with a CBE participation goal of 25%. The contracts to certified CBE firms have a maximum potential expenditure of $9,000,000 over three years, and the firms have agreed to the 25% participation goal.
Living Wage Program The Living Wage Ordinance was enacted by the Board of County Commissioners on October 8, 2002 and 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 County taxpayers and services provided to its residents. A total of 77 Living Wage applicable contracts are open and active.
In FY 2010, the Purchasing Division Living Wage Program activity and reports focused on the following topics and matters of interest including: new contract awards, budget and fiscal impacts, administrative efficiencies, and customer service and agency outreach.
• Contract Award Overview: In FY 2010, 25 new Living Wage service contracts were awarded with a total estimated contract value of $ $23,769,916.44. These contracts were for the following services covered under the Living Wage Ordinance including, but not limited to: routine maintenance services, janitorial services, security services, passenger transportation services, and landscaping, lawn, and agricultural services.
• Fiscal Impact: 71% of Living Wage applicable contracts awarded between December 2008 and June 2010 had no Living Wage fiscal impact. Vendors who reported an impact indicated that those impacts ranged from 3% ‐ 25%.
• Administrative Efficiencies: The Living Wage Ordinance, as amended in October 2008, now allows employers, who can demonstrate 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 that pay wages subject to a collective bargaining agreement, may obtain an exemption from the requirement to submit payroll reporting to the Contract Administrator every six months during the term of the contract. As a result, savings in both labor and materials (time and paper) have been realized by both the County and service contractors. While these savings have not been quantified, similar time studies and paper reduction initiatives have shown significant savings. In FY 2010, 17 vendors applied for the exemption and all 17 exemptions were granted.
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• Customer Service and Outreach: The Purchasing Division continues to provide customer service and outreach in support of the Living Wage Program by providing 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. FY 2010 activities included: Providing training presentations and informational sessions to County staff Participating in client agency contractor start‐up meetings for new Living Wage service
contracts Offering assistance, guidance, and reports to the Living Wage Advisory Board, Updating the Purchasing Division website and BC‐Net to keep client agencies and the vendor
community informed, and Serving as a help desk for contract administrators, project managers, and service contractors
requiring clarification or guidance on Living Wage contract requirements.
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External Funding Sources/Stimulus Funds The importance of external funding sources is vital in these challenging economic times as Broward County strives to continue offering the best services and facilities for its residents. The Purchasing Division works in tandem with client agencies to ensure projects are solicited and processed in compliance with state and federal grant funding guidelines to maximize the award of external funds to Broward County projects.
Since FY 2009, the Purchasing Division has partnered with the Aviation and Transportation Departments to process several Broward County projects funded through external sources. The following tables detail the current status of projects awarded to the County in FY 2009 and FY 2010.
Figure 13 Current and Future Federally‐Funded Projects Greater than One Million Dollars
Fund Department Project $ in
Millions Award Date
% Complete
FAA Aviation Rescue & Fire Fighting Truck $1.4 Feb ‘09 100%
ARRA Aviation Ramp Rehabilitation $4.4 May ‘09 90%
FAA Aviation Runway 13-31 Rehabilitation $1.6 Jun ‘09 100%
FTA Transportation Articulating Buses, Diesel Hybrid $12.6 Jul '09 93%
TSGP Transportation GE Mobile View Camera Systems $4.6 Mar ‘10 100%
ARRA Transportation Retrofit of Mini-Hybrid Thermal System on Buses $2 May ‘10 83%
FTA Transportation Diesel, Hybrid, Electric Buses $20 Jun ‘10 0%
ARRA Transportation Bus Shelter and Technology Improvements • Transit Infrastructure Shelter
Improvements • Ravenswood Maintenance Facility
Improvements • Paratransit Fleet Monitoring
Technology • Fixed Route Single Sign-on
Technology
$35
0%
$6.523 Nov ’10
TBD
FTA Transportation Mini Buses for Community Bus Program $2.5 TBD 0%
FTA Transportation Resurface Flooring $1 TBD 0%
ARRA American Recovery and Reinvestment Act
FAA Federal Aviation Administration
FTA Federal Transit Administration
TBD To Be Determined
TSGP Transportation Security Grant Program
23
The $6.5 million for the Transit Infrastructure Shelter Improvement project is included in the total $35 million grant received from ARRA.
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Organizational Focus for Fiscal Year 2011 Several trends will influence the Purchasing Division’s focus to ensure the successful execution of our mission. Our objectives, to advance improvements to the procurement process and service to our client agencies, to gain a better understanding of their needs, and to implement programs that increase efficiency and lower costs, ensure transparency, and have a positive effect on the environment, will focus on several key areas. The key focus areas include:
• the deployment of technology to meet current and future business needs of both internal and external customers with emphasis on the advancement of the Enterprise Resource Planning (ERP) initiatives
• the implementation of action plans to advance best practices in the key processes identified through the Sterling Phased Mapping for the Request for Letters of Interest/Request for Proposals and Bid/Quote procurement methods
• the review of internal control procedures and processes to revise and incorporate concepts and tenets of best management practices with emphasis on the review of standardized commodities to assure that all specifications issued by the County provide for free and open competition among all vendors and preclude a lock‐in of any brand or vendor
• the incorporation of business process management tools into all facets of procurement operations with specific emphasis on reducing processing time
• the identification and utilization of employee knowledge, skills, and abilities to meet changing workforce needs and economic challenges with emphasis on cross‐training
• the development of procurement policy and practices to support the County’s Climate Change Action Plan, and
• the enhancement of our communication systems that provide transparency and information exchange with our client agencies and external customers with emphasis on using the Voice of the Customer process to validate policies and procedures, improve customer service and improve purchasing procurement practices.