1

Phase 1Data Collection*

• Reviewed FLAIR and SPURS data and item-level data received from vendors• Categorized and analyzed vendor item-level data and grouped into 17 lots

Phase 3ITB

• Conducted 17-lot event within MyFloridaMarketPlace Sourcing tool • Bidders used provided offline bidder pricing tool to capture pricing on core items

listed (approximately 80% of demand) and discount off catalog price for non-core items (20% of demand) not listed

• 25 questions were submitted by vendors using the Q&A board• Official answers posted on Sourcing tool as addendum• Optional bidder training conference call sessions provided to help vendors learn

how to use Sourcing tool• Bids were submitted via Sourcing tool, including pricing workbooks and forms• Bid award posted in Sourcing tool and VBS

* MyFloridaMarketPlace Tool was not yet live

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – MRO Materials EventStrategic Sourcing – MRO Materials Event

DMS recently leveraged the MyFloridaMarketPlace Sourcing tool and a multi-phased process to establish a new State Term Contract for MRO (Maintenance, Repair and Operating) Materials.

Phase 2RFI*

• Distributed RFI to 60 targeted vendors and posted on VBS an Excel-based workbook containing approximately 10,000 SKUs across 17 lots (provided Mfg. Part Number, Item Description and Unit of Measure)

• Requested vendors to indicate which items they could provide statewide within specific delivery time

• Received RFI responses indicating that at least two vendors could provide every item listed in 17 lots

2Note: MM = Million

The MRO Materials ITB generated identified annual savings of $1.7 million, or 13%.

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – ITB ResultsStrategic Sourcing – ITB Results

LotCommodity

CodeAwarded Vendor

Baseline Spend

Awarded Value

Savings $Savings

%

Lot 1: Compressors & Pumps 025 & 720 Grainger $731,615 $670,277 $61,338 8.4%Lot 2: Air Filters 30 Andrews Filter $200,000 $188,726 $11,274 5.6%Lot 3: HVAC/Heating & Ventilation 030 & 455 Grainger $661,205 $610,323 $50,882 7.7%Lot 4: Lighting & Lamps 285 Marpan $450,000 $400,500 $49,500 11.0%Lot 5: Electrical Equipment 285 Mayer Electric $3,175,167 $2,691,713 $483,454 15.2%Lot 7: Hardware 450 Grainger $2,229,636 $2,103,026 $126,610 5.7%Lot 10: Material Handling Equipment 560 Grainger $363,895 $338,526 $25,369 7.0%Lot 11: Paint Supplies 630 Grainger $194,514 $178,170 $16,344 8.4%Lot 14: Plumbing Equipment 670 Grainger $652,723 $632,094 $20,629 3.2%Lot 15: Safety Equipment 773 My 2 Angels $3,530,915 $2,733,643 $797,272 22.6%Lot 16: Testing Equipment 845 Mayer Electric $751,838 $683,277 $68,561 9.1%

Total $12,941,508 $11,230,275 $1,711,233 13.2%

3

TimePeriod

How Agencies on MyFloridaMarketPlace Order

How Agencies on SPURS Order

After new STC is effective but before contract is enabled**

Non-Catalog Purchase from new STC

As currently done (Purchase Order/P-Card) on new STC

After new STC is enabled Punch-out or MyFloridaMarketPlace Catalog

MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Ordering InstructionsStrategic Sourcing – Ordering Instructions

The new MRO Materials State Term Contract is effective 11/14/2003 and has a 2-year term.

* New STC is effective 11/14/2003** New STC is estimated to be enabled by 1/2004

Please call Chuck Beall at (850) 487-0635 with questions or email him at beallc@dms.state.fl.us

State Term Contract #450-000-04-1