Division of Purchasing & Materials Management

1. Division of Purchasing & Materials Management Study Commission for Consolidation of Services Purchasing Committee Briefing Monday, August 29, 2005

2. Presentation Outline • Comparison of Services • Who We Are • Cooperative Purchasing • What We Do • How We Do It • Cost of What We Do (Budget) • Selected Performance Measures & Quality of Service • Public Works Responsibilities

3. ORANGE COUNTY Purchasing & Contracts Division Administrative Services Department Manager : Johnny Richardson Total Staff FY 2004-05 : 29 Staff covered by Collective Bargaining : None Budget FY 2003-04 : $1,819,956 ------------------------------------------------------------- Services Provided Procurements & Specifications / Encumbrances & Releases / Contracts Administration Where Services Provided Internal division servicing all Orange County Departments Agreements with the City YES CITY OF ORLANDO Purchasing & Materials Management Division General Services Administration Department Manager : Jon Mead Total Staff FY 2004-05 : 38 ( 2 appointed, 2 non bargaining, 34 SEIU) Budget FY 2004-05 : $2,545,809 ------------------------------------------------------------- Services Provided Purchasing of goods & services incl. professional services / Contract Administration / Develop and establish standards & specifications for all city departments / Provide interoffice & external mail services / Operate city stores warehouse & delivery service / Operate vehicle & equipment parts warehouse incl. pick up & delivery. / Maintain 23 fuel distribution centers incl. 3 major centers / Conduct auctions of city vehicles, equipment, and other surplus items / Provide supply support for Facilities Management Division’s requirements for goods & services incl. ordering expediting, issuing & inventory control. Where Services Provided All city departments, DDB, CRA, CNL mail Agreements With Orange CountyYES

4. ORANGE COUNTY Division : Business Development Department : Administrative Services Manager : Fitzhugh Long Total Staff FY 2004-05 : 9 Staff covered by Collective Bargaining : 0 Budget FY 2003-04 : $716,529 ------------------------------------------------------------- Services Provided Field Investigations Contract Compliance Business Assistance Marketing Outreach Where Services Provided Internal division servicing all Orange County Departments Agreements with the City NO CITY OF ORLANDO Division : Purchasing & Materials Mgmgt. Department : General Administration Manager : Kevin Walsh Total Staff FY 2004-05 : Four (**) Covered By Collective Bargaining : 4 Budget FY 2004-05 : $255,999 (**) (**) -- These figures are included in Purchasing & Materials Management ------------------------------------------------------------- Services Provided Field Investigations Contract Compliance Business Assistance Marketing Outreach M/WBE Certifications . Where Services Provided All city departments Agreements With Orange CountyNO

5. PurchasingDivision -- Who We Are MISSION STATEMENT The mission of the Office of Purchasing and Materials Management is to purchase, rent, lease or otherwise acquire goods and services at the lowest possible cost, consistent with the quality needed ; to provide the best possible service to the public, utilizing the taxpayers money most efficiently, through increased competition

6. Purchasing & Materials Mgmt. Organization Chart General Administration Director201 Purchasing/Materials Mgmt. Director160 166 -- City Stores (4) 160 -- Purchasing (16) 161 -- Minority/Women Business Enterprise (4) 163 - Property Control(3) 164 - City Mail Services(2C+3SC) 165 -- Fleet FacilitySupply/Support (9)

7. Purchasing Division -- Who We Are Purchasing Ordinance The City of Orlando Purchasing Code, Chapter 7 of the City Code, governs the purchase of goods and services by the City. This ordinance : • Places authority and responsibility for all city purchases under the General Administration Department. Purchasing develops policies, procedures, and rules to fulfill the requirements of the law. • Permits Purchasing to delegate authority for purchases to other city departments. • Ensures that fair and open competition exists in all procurement activities in order to avoid the appearance of and prevent the opportunity for favoritism and to inspire public confidence that contracts are awarded equitably and economically.

8. PurchasingDivision -- Who We Are • Received the prestigious “Achievement of Excellence in Procurement Award” in 2000, 2003, 2004 and 2005 from the Institute of Supply Management. Only 61 of 2000 organizations received this accreditation four times. • First local government procurement entity to receive the National Institute of Governmental Purchasing (NIGP) “Outstanding Agency Accreditation Achievement Award” for the period of September 28th, 1999, through September 28th, 2005. While the NIGP membership represents over 2100 governmental agencies throughout the United States and Canada, only 58 governments have attained this distinction. • Achieved performance ratings in the top 20 percentileof the ICMA Annual Survey of Governmental Agencies..

9. Purchasing Division -- How We Cooperate To take advantage of the cost savings achieved through high volume purchasing power, the Division participates in cooperative purchasing programs with other governmental agencies including GSA, State of Florida, Orange & other counties, SICOP and School Boards. This cooperation significantly lowers the cost of goods and services and increases efficiency. In recent months, the Purchasing Division has cooperated with other governmental agencies in over 65 contracts. Some examples are shown below. GSA: City utilizes GSA Technology contracts which are the only ones GSA allows for use by other agencies. However, the City has been successful in negotiating GSA prices & terms for the purchase of heavy construction equipment and other items.

10. Purchasing Division -- How We Cooperate SICOP : This is a cooperative purchasing group comprised of government agencies within the six surrounding counties in Central Florida. Examples of cooperative contracts include Bulk Gasoline purchase, Agricultural Chemicals, Chlorine, and Asphalt Products. In some of these, the City is the Lead Agency. State of Florida Contracts: Computer Equipment, Networking Equipment, Software, Police Vehicles, Office Paper, Office Equipment, Carpet, Police Ammunition, Body Armor, Ice machines, Park Equipment, Cellular Services, Traffic Signals, Time Clocks, Tools, Street Surfacing, Excavator Purchases.

11. Purchasing Division -- How We Cooperate Orange & Other Florida Counties Contracts: Lot Cleaning, Job Order Contracts, Building Envelope Consultants, Furniture Movement, Road Base Material, Portable Office Equipment, Disaster Recovery Services, Polyurethane Materials, Safety Shoes, Radio Accessories, Coarse Aggregate, Tires. In addition, we cooperate with OUC for Copying Equipment and Tree Maintenance. With the School Board, we cooperated in Life & Accidental Insurance, Dental Insurance, Bus Service and Short Term Disability Insurance contracts. Examples of City contracts used by Orange County include Lumber & Plywood , Electrical Supplies and Herbicides.

12. Purchasing Division – What We Do • The Purchasing Office purchases a variety of commodities and services, including equipment, materials and supplies for all City departments by the most efficient and cost effective means while maintaining rigid quality standards set by the end users. • The latest technologies (e-bid, Internet) are utilized to improve customer service, efficiency, and quick response. . • Provide decentralization of authority by effective use of Pro Cards. • Initiate and administer over 700 Annual Contracts covering everything from nuts and bolts to technology services, operational and professionalservices.

13. Purchasing Division – What We Do • Develop and establish industry accepted standards and specifications for supplies, equipment and services, to ensure quality products and services from vendors. • Ensure Minority and Women-Owned Businesses have the maximum feasible opportunity to participate in the performance of City contracts. • Operate a City Stores and Vehicle Parts warehouse to provide customers readily available, commonly used parts and supplies. • Provide support to City’s Facilities Division by maintaining and managing commonly used parts inventory, processing order entries, including pick-up and delivery of supplies. • Provide timely and cost effective mail services to all City departments including inter-office mail service and U.S. mail services, shipping and courier services.

14. Purchasing Division – How We Do It Purchasing & Contracts Administration • This Program is currently authorized sixteen (16) positions including two appointed positions, primarily responsible for management of various programs, purchasing services and supplies for all city agencies and administering annual contracts. • Procurement methods used by this office include competitive sealed bidding, requests for proposals, telephonic and electronic quotations. • Purchasing has completed transition from a paper-driven process to a fully capable e-procurement environment. • Procurement Card purchases (up to $5,000 limit) expedites and streamlines the process of purchasing and provides delegation of authority to end user departments.

15. Purchasing Division – How We Do It Purchasing and Contracts Administration • A new “purchasing information on demand” system was implemented by Purchasing in an effort to lower the cost of purchasing and to streamline the bid process. The new web site provides 24-hour access to the latest Purchasing Office information. • City’s Internet web site was enhanced by adding document images of over 700 active annual contracts including contract terms, amendments, pricing and renewals. • Improved customer service by placing bids, bid notices, bid awards, vendor applications and quotes on the Internet, to provide a quicker response to user need, vendor satisfaction and a reduction in paper flow. • The City is a member of SICOP and we utilize State of Florida term contracts, Federal Supply Schedules, Orange County and other governmental agency contracts.

16. Purchasing Division – How We Do It Minority / Women Owned Business Enterprise • The M/WBE Program is currently authorized four (4) positions and is primarily responsible for ensuring that the City meets its goal of awarding at least twenty-four percent (24%) of the City’s annual monetary value of contracts and subcontracts for supplies, services and construction to city certified minority and women owned businesses. • Through consistent educational and outreach efforts to increase M/WBE participation, the City realized an increase of 73% in the number of certified M/WBE’s in the last 10 years, while awarding over $250 million in contracts to M/WBE firms • Due to outreach efforts, more minority firms are responding as prime consultants or partnering and joint venturing with non minority firms. • Over 600 M/WBE applications for certification and over 700 compliance audits and site visits were processed during FY03/04.

17. Purchasing Division – How We Do It Fleet & Facilities Support • The Fleet/Facility Supply Support Program is currently authorized nine (9) positions; five (5) to operate the Fleet Management parts warehouse on a two-shift basis and four (4) to provide procurement and supply support to the Facilities Management work crews. • A total of $3,416,000 was purchased for the Fleet operations this past year including $1.9 Million for fuel purchases. This section also maintains the City’s 22 fuel centers and a car wash facility at the Orlando Police Headquarters. • In an average 6 month period, this program processes six thousand six hundred forty-one (6,641) facilities maintenance requisitions with a value of $2,838,627.

18. Purchasing Division – How We Do It Property Control • Property Control is currently authorized three (3) positions primarily responsible for annually inventorying over 20,000 capital asset items worth more than $225 Million and conducting auctions/sales of surplus property; which result in an average of over $1 Million dollars per year in revenue for the City. • Expanded use of on-line auction services to advertise and sell the City’s surplus property through the Internet, has resulted in achieving better sales prices for the City’s assets.

19. Purchasing Division – How We Do It City Stores • City Stores is currently authorized four (4) positions primarily responsible for stocking and issuing common supplies to City agencies. Sales this past year were over $900,000 and the latest “market basket” survey found that prices charged by City Stores were over 17% lower than prices at selected retail stores. • City Stores initiated a wireless sales order system supported by the City’s financial software system reducing the time needed to complete sales transactions, inventory transfers and year-end inventory. Stock availability has gone up to ninety-five (95%).

20. Purchasing Division – How We Do It Mail Services • City Mail Services is currently authorized two (2) City positions and three (3) contracted positions. An average of 20,400 pieces of interoffice mail and 42,500 pieces of incoming U.S. Mail are processed monthly.   • Utilizing automation for production mail, folding/inserting equipment, address management/mailing software and inkjet printing capability, Mail Services has reduced the burden of mass mailings on clerical staff and assisted offices in reducing overall postage costs. • Extensive security measures have been implemented since the 911 tragedy including screening of all incoming mail. The screening process involves scanning all incoming mail, packages & parcels using an x-ray scanner and a quarantine workstation for bio-agent containment. This service was recently expanded to include all deliveries to the CNL Financial Services Group.

21. Purchasing Department – Cost of What We DoTotals By Program FY04/05 BudgetFTE’s #160 Purchasing $1,202,223 16 #161 M/WBE $255,999 4 #163 Property Control $167,493 3 #164 Mail Services $216,738 2 #165 Fleet / Facility Support $476,193 9 #166 City Stores $202,778 4 #995 Auctions . $24,385 -- … TOTAL $2,545,809 38 ** salary, benefits & operating supplies included in above figures

22. Selected Performance Measures

23. Selected Performance Measures

24. Selected Performance Measures.

25. Public Works Responsibilities Develops, advertises, awards and provides project management services for all contracts in the following categories …….. Major construction projects including buildings, roads, bridges, and other projects that involve public health and safety ……. Architectural and Engineering services ……. Land surveying services ……. All Wastewater Division Construction and Engineering Contracts

26. Questions ?