Purchasing Directors’ Meeting May 24, 2011

Purchasing Directors’ Meeting May 24, 2011

Purchasing Directors’ MeetingMay 24, 2011 • Agenda • DMS/State Purchasing Organizational Changes • Bureau of Transportation, Facilities & Supplies • Bureau of Technology, Office Equipment & Support Services • Bureau of Services, Supplies, Insurance & Special Programs • Training and Certification • State Purchasing Operations/MyFloridaMarketPlace • Governance • Reminder About Next Meeting Date

DMS/State Purchasing Organizational Changes Chief of Staff – Brett Rayman • Assuming duties most recently handled by David Faulkenberry, DMS Deputy Secretary. State Purchasing Point of Contact – Tony Garcia • Assuming duties most recently handled by Ellen Potts. • DMS is actively interviewing candidates for the Chief Procurement Officer position.

Bureau of Transportation, Facilities andSupplies Team 1 – Transportation & Energy • Construction, Industrial, Agricultural & Lawn Equipment • Annual product and pricing adjustment requests are under review. • Boat Motors: • Product updates for Evinrude. • Motor Vehicles • Production cut-offs are impacting all manufacturers. • Please remember to: • Follow-up on outstanding orders to check status. • Watch the STC website regarding production cut-offs and follow-up with dealers.

Bureau of Transportation, Facilities andSupplies Team 2 – Institutional Furnishings & Supplies • Ice Making Machines: • Renewed through April 29, 2012. • No price changes. • Office Furniture: • Responses to ITB are in review. • Educational/Institutional Furniture : • Processing GSA modifications, so check the STC website for updated price pages.

Bureau of Transportation, Facilities andSupplies Team 3 – MRO & Law Enforcement • Can Liners: • Reviewing pricing adjustment request from Calico. • Body Armor: • Added new products. • MRO Industrial Supplies (WSCA): • Finalizing recommendation for next contract. • Contact Greg Hill at 850-922-1214 • Personnel: • Congratulations to Greg Hill! He was promoted to the Purchasing Analyst position. Greg has assumed management of all contracts previously assigned to Chuck Beall. • We are seeking approval to advertise the team Purchasing Specialist position.

Bureau of Technology, Office Equipment & Support Services • Current Solicitations: • Mail Services • RFP on the Street • Intent to Award est. 6/7/2011 • Contract Effective Date est. 7/1/2011

Bureau of Technology, Office Equipment & Support Services • Completed Solicitation: • Land Mobile FM or PM Comms Equipment ITB • ITB Launched 1/12/2011 • Intent to Award posted 5/10/2011 • Contract Effective Date est. ?

Bureau of Technology, Office Equipment & Support Services • Contracts Renewed: • IT Research and Advisory ACS (Gartner) • Expires 5/10/2012 • COTS Software ACS • Expires 5/01/2012 • SAIR (Situational Awareness Incident Response) – Cyber Security, GSA • Expires 5/26/2012

Bureau of Services, Supplies, Insurance, and Special Programs Team 6 – Services, Special Programs, & Insurance • State Term Contracts/ACS Under Review During the Next Six Months: • Online Legal Database Services—expires August 18, 2011, working on next action recommendation. OPPAGA currently reviewing agency use of this contract. • Insurance Policies Under Review During the Next Six Months: • Broker of Record – Excess Property: Expires 9/30/11. Renewal in process. • Nuclear Property (UF): Expires 6/1/11. Renewal in process. • Electronic Data Processing Equipment: Expires 6/5/11. Renewal in process. • Contractor’s Equipment: Expires 7/1/11. Recommend renewal. • Ocean Marine: Expires 7/2/11. Recommend renewal. • Catastrophic Accident Insurance for FSDB: expires 8/15/11 – Recommend renewal. • Rail Corridor coverage for FDOT is in process. • Special Programs: • New items approved for RESPECT and PRIDE. Questions, please contact Frank Miller. • PRIDE freight charges updated on our website.

Bureau of Services, Supplies, Insurance, and Special Programs Team 7 – SPAs and Special Projects • State Term Contracts under review during the next six months: • Paper: Tissues and Towels – expires July 31, 2011. • Finalizing solicitation. • Recycling Services: End of Life Electronics Equipment – expires July 21, 2011. Next action recommendation is in process. • Potable Water and Food Grade Ice – expires August 2, 2012. Finalizing draft solicitation. • Other agreement and project updates: • Defibrillators, Related Equipment & Supplies - All vendors agreed to Florida terms. ACS approval in process. • Security Officer Services - Renewal for remaining three year term in progress.

Training and Certification Program Procurement Training Schedule 2010-2011 • Before July 1, 2011, the Division of State Purchasing plans to offer the following recertification classes: • Advanced Negotiation in Florida (On Site); • Advanced Contract Management in Florida (Virtual); and • Advanced Purchasing in Florida (Virtual) *We have a limited amount of funding for the Advanced Negotiation Workshop through June 30, 2011. No funding money was appropriated for next year. Let Jennifer Prime or me know as soon as possible if you’re interested in the funding money and classes. To check for updates to the Training Schedule please go to: http://dms.myflorida.com/upcoming_procurment_training

Training and Certification Program PMP Training Schedule 2010-2011 • Critical Thinking and Problem Solving – June 1-3, 2011 To check for updates to the Training Schedule please go to: http://dms.myflorida.com/upcoming_pmp_training

State Purchasing Operations/MyFloridaMarketPlace Year-End Activities • We plan to take MFMP down Friday, July 1, as we have done the past three years. • This helps us complete the MFMP year-end processing as smoothly as possible. • Includes “Certified Forward” and “Delay Purchase Until” processing. • We will send emails to keep you updated on the downtime.

State Purchasing Operations/MyFloridaMarketPlace Year-End Certified Forwards • Early morning July 1, MFMP receives the file update from FLAIR noting which encumbered requisitions to mark with a Certified Forward Indicator. • This process marks only encumbered requisitions. • We need you to initiate change orders to mark unencumbered requisitions manually.

State Purchasing Operations/MyFloridaMarketPlace Buyer 3.0: Updated Catalog Searches

State Purchasing Operations/MyFloridaMarketPlace Buyer 3.0: Compare Like Catalog Items

State Purchasing Operations/MyFloridaMarketPlace • In preparation for the upgrade: • Complete /delete approvables in an “ing” status • Requisitions in composing status • Invoice Reconciliations in approving / reconciling status • Inactivate user accounts that are no longer valid • Develop a training / communication plan for your agency • Spread the word

State Purchasing Operations/MyFloridaMarketPlace • Buyer 3.0 Training Approach • “What’s New” classroom training • Topic specific webinar training • Office Hours • Interactive online training tours • The MyFloridaMarketPlace View eNewsletter • Job Aids and Manual updates

State Purchasing Operations/MyFloridaMarketPlace • Buyer 3.0 Training Approach • Readiness Training (2) for Agency Liaisons (160 max.) mid-July • Training begins in late July through September • Webinar (18, max. 100 per) and Classroom (10, max. 550) • Office Hours Webinars (4) post “go-live”

State Purchasing Operations/MyFloridaMarketPlace • W-9 / 3 Percent Withholding Initiative • Congress delayed the IRS 3 Percent Withholding mandate by one year • Implementation scheduled for January 1, 2013 • Department of Financial Services (DFS) will implement FLAIR edits November 2011 to prevent payments / encumbrances to vendors without a valid W-9. • 2,350 MFMP vendors have a valid W-9 on file with DFS (as of May).

Governance Recap of the purchasing related bills from 2011 Session: • HOUSE BILL 427/SENATE BILL 574 : Preference in Award of State Contracts (compare to 1258/1079/386) • The bills amend s. 287.084, F.S. and extend the authority of state and local agencies to provide a reciprocal preference for Florida vendors during a competitive solicitation for construction services in addition to purchases of personal property which are already permitted by the statute. Died in Subcommittee.

Governance • SENATE BILL 386: Procurement/Preference to Florida Businesses (compare to 1258/1079/427/574) • The bills amend section 283.35, F.S., and section 287.0084, F.S., to mandate that agencies, school districts, municipalities, and political subdivisions, when awarding a printed materials or a personal property contract, grant a 5% preference to the lowest bidder or highest ranked respondent to have a principal place of business in Florida against a lower bidder or higher ranked respondent having a principal place of business outside the state of Florida. Died in Budget.

Governance • HOUSE BILL 441/SENATE BILL 444: Scrutinized Companies • The bills create section 287.135, Florida Statutes, and prohibit a company on the Scrutinized Companies with Activities in Sudan List or on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List from bidding on, submitting a proposal for, or entering into or renewing a contract for goods or services of $1 million or more with a state agency or local governmental entity. Passed – presented to the Governor on 5/17/11.

Governance • SENATE BILL 1258 /HOUSE BILL 1079: Procurement/Preference to Florida Businesses • (HOUSE BILL # 427/SENATE BILL #574 are similar but the preference is not mandatory in in 427 and 574, as it is in 1258/1079; compare to 386 – where preference is mandatory but not reciprocal – flat 5%) The bills amend section 283.35, F.S., and mandate that agencies, school districts, municipalities, and political subdivision, when awarding a printed materials contract, to grant a preference to the “lowest responsible and responsive vendor” have a principal place of business in Florida. The preference granted is to be either: • equal to the preference granted in the home state of the “lowest responsible and responsive vendor” or • if no preference is granted in the vendor’s home state, then a 5% preference is to be granted to the in-state vendor if the work can be performed in state at a level of quality comparable to an out of state vendor.

Governance • SENATE BILL 1258 /HOUSE BILL 1079 cont.: • There is an exception in the Senate Bill for printing services performed by PRIDE – the preference does not apply to any contract awarded to PRIDE. Out of state vendors would be required to submit with their bids the written opinion of an attorney, licensed in their state, explaining the preferences that state provides vendors within their state, and for the vendor to commit to hire in-state residents to complete the services to the greatest extent possible Died in Subcommittees.

Governance • HOUSE BILL 7223/ SENATE BILL 2090: OGSR/Competitive Solicitations (Open Government Sunset Review required in 2011) • The bills amend section 119.071, F.S. to expand the public records exemption for competitive solicitation documents until an intended decision or until 30 days after bid opening or receipt of final replies. Section 286.0113, F.S. is also modified and expanded to include an exemption from the public meeting requirements for negotiation with vendors, meetings where a vendor is making oral presentations or answering questions about their sealed responses to solicitations. All meetings must be recorded in full. The recordings of such meetings are exempt from disclosure under public record requests until a decision or intended decision is posted or until 30 days after the responses are opened, whichever occurs earlier. The section is further expanded to provide an exemption for portions of meetings wherein solicitation team members are gathering to strategize for the solicitation. Passed – presented to the Governor on 5/17/11.

Governance • HOUSE BILL 923/SENATE BILL 1352 – Public Works Projects • Bills deal with certain public works construction. Prohibits state agencies and political subdivisions that contract for the construction, maintenance, repair, or improvement of public works from imposing certain conditions on certain contractors, subcontractors, or material suppliers or carriers, including conditions related to employee pay or benefits, enter proprietary training, recruit from a single source or designate a particular work assignment, or enter into a project labor agreement. Provides an exception where the conditions are required by state or federal law. Prohibits the state and political subdivisions from restricting qualified bidders from submitting bids, being awarded any bid or contract, or performing work on a public works project. Also, extends the protest period for a solicitation specification or amendment challenge from 72 hours to 7 business days. Amends computation of formal protest to 10 business days from 10 calendar days. Died in Committee.

Governance • HOUSE BILL 7229: Procurement • The bill deletes language relating to option of state agency purchases of commodities or contractual services from state term contracts. Also, specifies conditions for preference in award of contract under invitation to bid – lowest responsible/responsive bidder meeting the requirements of the ITB, and requires inclusion of renewal pricing, if renewal is contemplated, to be requested from a vendor in an ITN. The bill also revises conflict of interest language in section 287.057, F.S. Died on the Calendar.

Governance • SENATE BILL 1314/HOUSE BILL 939: State Financial Matters (changed significantly in Conference): • The bills would require that all agencies submit with any legislative budget request a description of each contract over $10 million in which the part of the consideration paid to an agency is part of the vendor’s revenue. The bills also create section 216.313, F.S., and prohibits any state official from two branches of government, judicial and executive, from entering into contracts over $5 million for services or tangible personal property unless the contract itself identifies the specific appropriation used to pay for the contract, unless expressly authorized by the Legislature. The bill amends section 287.056, F.S., and removes conflicting language which clarifies that agency use of state term contracts is mandatory. Passed and signed by Officers. Presented to the Governor – 5/17/11.

Governance • SENATE BILL 230/ House Bill 271: Enforcement of Immigration Laws • The bill prohibits agencies from entering into contracts for services unless the contractor registers and participates in a “federal work-authorization program” (example: E-Verify). The bill also prohibits a contractor from executing a contract awarded under section 287.057, F.S., unless the contractor and any subcontractors register and participate in a federal work-authorization program, and the contractor is required to certify compliance with the statute. The statute provides timelines for applicability based upon the number of people employed by the contractor. The bill is effective July 1, 2011. The Department of Management Services is granted rulemaking authority to administer the new section. Died in Senate Judiciary, withdrawn in House.

Governance • HOUSE BILL 871/ Senate Bill 1510: Procurement of Personal Property and Services • The bills broaden the definition of “commodity” in section 287.012, F.S., to include a definition of “off-the-shelf-commodity” as a good or merchandise that is consumable but is not proprietary in nature and expands the discretion granted agencies to use a “request for quotes” for purchases of “off-the-shelf-commodities” on purchasing agreements and State Term Contracts (“STC”) in order to obtain a better price than is available from a STC. Also, permits an agency to buy this type of commodity from another source if better price or term is found. Also, mandates that agencies purchase generic brands of “off-the- shelf commodities” unless an adequate justification is found. Died in Committees.

Governance • House Bill 0191/Senate Bill 374: Health and Human Services Contracts • Creates the Health and Human Services Contract Resource Center housed within DMS for administrative and fiscal contract management only for outsourcing of services for the Department of Children and Family Services, the Department of Elderly Affairs, the Department of Health, the Agency for Persons with Disabilities, the Department of Juvenile Justice, and the Agency for Health Care Administration. Also, provides an exemption for competitive bidding for services provided by an eligible lead community-based provider as described in s. 409.1671(1)(e) currently under contract with the Department of Children and Family Services and in compliance with the department’s performance, fiscal, and administrative standards. Died in Committees.

Governance • SENATE BILL 1280/ HOUSE BILL 903 - Inspectors General • Creates a centralized Office of Inspector General. Requires DMS to draft rule/procedures related to purchasing cards. Died in Committees. • SENATE BILL 1002/ HOUSE BILL 801 - State Agency Business Cards • Requires DMS to delegate authority to agencies for the purchase of Brailled business cards. Died in Committees.

Governance • HOUSE BILL 1211 - State Financial Information • Creates agency with DFS called Agency for Enterprise Business Services and a board to advise the agency regarding the Florida Financial Management Information System. A 5 year strategic plan is required to replace or enhance the System. All agencies will be required to conform with procedures developed by the DFS agency for use of the System. Also, a state contract management system will be established – all agencies will be required to update contract information immediately. Died in Committee (though the new agency will be created with many of the same requirements in SB 1738 - which passed, if signed).

Governance Other Topics: • Convicted vendor list • Rulemaking restart – coming soon

Purchasing Directors’ MeetingMay 24, 2011 Next Meeting July 21, 2011 2:00 – 4:00 pm

Purchasing Directors’ Meeting May 24, 2011