fy2011 iso purchasing performance measures 063011 v2.0

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Seven times awarded of the National Purchasing Institute AchievementOf Excellence in Procurement Award (2005-2011).

ISO 9001:2008 Certified

The Baltimore County Public Schools Office of Purchasing is a recipient ofthe “Outstanding Agency Accreditation Achievement Award” from theNational Institute of Governmental Purchasing (NIGP), which recognizesour Purchasing Office as a leader in the public procurement profession.

Baltimore County Public Schools Office of Purchasing

FY2011


Mission Statement

The mission of The Office of Purchasing is to provide a quality education that develops the contentknowledge, skills, and attitudes that will enable all students to reach their maximum potential asresponsible, life-long learners and productive citizens, through direct support to the Baltimore CountyPublic Schools Faculty, Staff, and Business Community for all of their procurement needs in a mannerthat is ethical, impartial, open, fair and honest and sustains a continuous and measurableimprovement in student performance.

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Vision Statement

The Office of Purchasing contributes to the delivery of a cost efficient education by endeavoring toensure that BCPS and the taxpayers receive full value through our procurement expertise to assurethe timely acquisition, and distribution of goods and services at the best possible price on the basis ofa competitive solicitation process from the most responsive and responsible bidders considering cost,quality, suitability, service and delivery.

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Values Statement

The Office of Purchasing coordinates and issues all solicitations for commodities, construction andrenovations, equipment, furnishings, instructional materials, and services in compliance with allapplicable federal and state statutory regulations, Board of Education policies, procedures andrules. They ensure that all bid specifications and contract documents are designed to optimize thequality of goods and services while at the same time minimizing the financial risk to the school systemand increasing public trust in the procurement process. The Office of Purchasing acts in accordancewith the highest standards of ethics, and is accountable for the quality of their technical assistance,exceptional service, and continuous improvement in their process. The Office of Purchasing iscommitted to a fair and equitable bidding environment that encourages economic growth in theminority and small business community through their participation in all BCPS contracts.

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Significant Achievements• In 2001 BCPS became the first public school system in Maryland to implement eProcurement as their

primary means of procuring goods and commodities.• First Public School System in Maryland to conduct a Reverse Auction in 2002 and the First to use the

Reverse Auction Method for the procurement of Construction Materials in 2006.• Led the legislative initiative to raise the bid threshold for LEA’s from $15,000 to $25,000 in 2006.• First LEA to establish performance contracts for Textbook Publishers and to actively negotiate pricing and

shipping costs. This lowered shipping costs from 10-15% to 2-6% saving BCPS $92K in FY 2010 alone.• First LEA to establish an on-line plan room for all construction projects within the system.• First LEA to implement an on-line vendor evaluation system.• First Lea to establish on-call time and material bid contracts allowing for construction projects not to

exceed $300K to be quoted or bid with-in 48 hours by pre-approved vendors thus reducing the bidding time by at least 12 days.

• One of six School Districts in the United States to become ISO 9001:2008 Certified in 2010.• In FY 2011 received the National Institute of Governmental Procurement Outstanding Agency

Accreditation Achievement Award – OA4. • Seven times awarded of the National Purchasing Institute Achievement of Excellence in Procurement

Award (2005-2011).

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2005,2006,2007,2008 2009, 2010 and 2011 National Purchasing InstituteAchievement of Excellence in Procurement Award

Winner!

The Baltimore County Public Schools Office ofPurchasing has been awarded The NationalPurchasing Institute's Achievement ofExcellence in Procurement award for the seventhyear in a row (2005 - 2011)! The NationalPurchasing Institute, the public sector affiliate ofthe Institute for Supply Management (ISM),exists to promote the achievement of excellencein governmental and institutionalProcurement through education, certification,professional development and networking oftheir members and other professionalsassociated with public sector procurement andsupply management. This prestigious award isearned by those organizations that demonstrateexcellence in innovation, professionalism,productivity, e-procurement, and leadershipattributes of the procurement organization.

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2010-2011Goals• Expand the use of eCommerce and online purchasing, especially with

Third Party Billing and Grants.• Expand the number of catalogs on our eCommerce system by adding

Frey Scientific, Fisher Scientific, SportsTime, Childcraft, Abilitations, Sax Arts & Crafts, Dick Blick, Clayworks, Service Photo, CDW, Grainger, Home Depot, Graybar, and ZEP.

• Implement eSchool Mall as the new generation shopping Platform and expand the usage of electronic procurement to including the issuing and receiving of electronic bids.

• Develop and implement improved purchasing database and prepare reports that enable the scheduling of renewals, track bids and contracts, etc.

• Evaluate terms & conditions for bid specifications to support performance standards and enhance quality of goods and services.

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2010-2011Goals Continued• Complete review and update of Board policies and Superintendent Rules as well

as revise and publish our procurement procedures manual to include the new procedures from Financial Advantage 3.8 and ISO 9001.

• Maintain a “continuous improvement” program comprised of the following:– At least two meetings of formal procurement focus group– Formal procurement customer survey– Vendor training with scheduled training workshop

• Enhance our professional “Staff training” program allowing staff members to obtain their Professional Procurement Certification with the National Institute of Governmental Purchasing (NIGP)(CPPB & CPPO) and The Institute of Supply Management (ISM) (C.P.M.).

• Continue to implement and expand our current pilot for vendor performance evaluation process for construction-related projects with a value of $500,000 and greater. Evaluations, whether positive or negative, will be shared with all team members involved. Team members can include Purchasing, Facilities, Construction Manager, General Contractor, subcontractors and suppliers.

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SUPERINTENDENT

BOARD OF EDUCATION

CURRICULUM &

INSTRUCTION

BUSINESS

SERVICESPRINCIPALS

AREA ASSISTANT SUPERINTENDENTS

RESULTS - STUDENT ACHIEVEMENT

SERVICE FOR THE SCHOOLS

SERVICE

SERVICE

BCPS Service Model

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Purchasing Functions• Issue and distribute purchase order documents.• Encourage fair and equal treatment of all prospective bidders and

vendors.• Maintain a list of qualified vendors and their respective vendor codes.• Observe procedures to identify and prohibit business transactions with

any vendor whose past performance has disqualified their status by BCPS, county, state or federal policies, procedures and statutes.

• Assure that purchases meet appropriate local, state, and federal safety and health standards.

• Facilitate the prompt procurement of goods and services for schools and offices.

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Purchasing Functions• Administer and Coordinate all agreements for the purchase of supplies,

materials, equipment and (contracted services).• Enter into contracts with vendors to establish a fixed price to be used by

all schools and offices for a specified period of time.• Distribute information on existing state, county and BCPS contracts to

schools and offices.• Process all requisition/purchase order forms and catalog requests in

accordance with established contracts to approved vendors.• Identify purchases which require the use of established quotations and/or

bid policies or procedures.• Select potential award vendor in cooperation with the account manager.

Submit the recommendation for award of contract to the Board of Education when appropriate.

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Purchasing ISO Performance MeasuresPerformance measures provide benchmarks that allow management to evaluate its performance over time.Some sample performance measures for three key purchasing areas are as follows: Cycle Time and Productivity

• Purchase order cycle -average number of days needed to fill purchase requisitions. • Volume - average number of purchase orders processed (by office and/or per purchasing employee). • Total volume of purchases by type per purchasing employee. • On time processing or delivery.• Receipt of incorrect purchase order items or quantities as percentage of total orders.

Cost Savings and Quality

• New suppliers found.• Less costly substitute items used.• New contracts signed and/or lower prices negotiated with existing vendors.• Cheaper delivery methods.• Vendor performance evaluations.

Purchasing Improvements

• Efficiencies in the method used in the purchasing department.• Percent of total purchases spent with minority-owned suppliers.• Cost of operating purchasing services.• Transportation/delivery improvements.• BOE contract approval rate.

November 17, 2011

BCPS Office of PurchasingOrganization

as of July 1, 2011

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Purchasing ManagerRick Gay, CPPO,

RSBO

Purchasing Agent IIJack Nichols

Purchasing Agent IIMelvin Burley, C.P.M., CPPO,

CPPB

Purchasing Agent IIPaul Cramer, C.P.M.

Purchasing Agent IIJeff Miller, C.P.M.

Purchasing Agent II /MBE Liaison

Melanie Webster, CPPB

Purchasing AssistantClarence Clawson

Lead Purchasing Clerk

Monica Dunkle

Purchasing ClerkSharon Berzins

Purchasing ClerkGeorgia Stavrou

Purchasing ClerkBarbara Hiser

Purchasing ClerkLisa Goldberg

ReceptionistShirley Martin

Purchasing Associate

Carol Yingling

Data Analyst IJoanne Debelius

Purchasing AssistantPatti Onheiser

MBE ConsultantBob Ball

Administrative Secretary

Carole Johnson

SecretaryJean Taylor

Governing Authorization

The annotated Code of Maryland sections 5-112 and 7-106, and the Maryland State Department of Education Financial Reporting Manual for Maryland Public Schools.

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The Bid Solicitation Process

• Bids must be advertised for two weeks.• The Purchasing Agents:

- Assist schools and offices in developing bid specifications. - Evaluate bids received and submit recommendations to the Board for contract approval.

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The Bid Solicitation Process

• The Office of Purchasing coordinates all BCPS bids and vendor contract negotiations

• State law and Board policy require public bidding procedures to be followed for certain purchases.

• The threshold for requiring bids is $25,000 – single item or system-wide annual needs

• Curriculum and books are chosen through an evaluation process administered by the Department of Curriculum & Instruction

Bid/Contract Workload ComparisonAgents 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007 –

20082008-2009

RGA 4 26 28 28 23 32 55PCR 26 35 43 47 35 50 43JMI 56 59 52 58 43 68 60MBU 50 53 39 39 38 43 67JNI 83 26 55 35 34 43 65MWE 0 0 0 20 52 52 30

TOTAL 219 199 217 227 225 288 320

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Bid/Contract Workload ComparisonAgents 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

RGA 82 74PCR 60 28JMI 41 50MBU 35 33JNI 42 30MWE 41 33

TOTAL 291 248

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The Procurement Process

• Other alternatives to bidding include: - “Piggybacking” on contracts awarded by other public entities that follow public bidding procedures. - “Sole-Source” if proprietary or only available from one source. A sole source determination is made by the Office of Purchasing – and still must be submitted to the Board for approval. - Purchasing consortiums/cooperatives

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Purchasing Procedures• Notify the Office of Purchasing of any goods, commodities or

services that may need to be solicited or procured.• Plan in advance! - From start to finish the process of

preparing, advertising, issuing, evaluating and Board approval can take 2 months or more!

• If No Current Approved Contract Exists for the Item:• get two written quotes from vendors If a purchase is > $15,000 and <

$25,000 • If a purchase is < $15,000 get one written quote

• Use on-line catalogs for available items• If less than $1,000 use a P-card• Contact Office of Purchasing if any assistance is needed

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36%

1%

63%

PO Online Cataloge Pcard

Number of Purchase Orders, Online Catalog Orders and Pcard Transactions Processed Per YearFY 2001 – FY 2011

FY 2001 FY 2011

11%

10%

79%

PO Online Cataloge Pcard

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73%

17%

4% 2%4%

<$1000 $1000 - $4999 $5000 - $9999

$10000 - $14999 >$15000

73%

17%

4%

2%

4%

<$1000 $1000 - $4999 $5000 - $9999

$10000 - $14999 >$15000

Number of Purchase Orders Processed Per YearFY 00 – FY 11

FY 2000 FY 2011

24%

42%

13%

5%16%

<$1000 $1000 - $4999 $5000 - $9999

$10000 - $14999 >$15000

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Total Number of Procurement Card Transactions Per YearFY 2001 – FY 2011

0

10000

20000

30000

40000

50000

60000

70000

80000

48632 52138

54469 57977 57953

62024 66914 66011

71788 70331 69340

Comparison of Orders

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

PcardOnline CatalogPO

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Number of Purchase Orders Processed Each Fiscal YearFY 2000 – FY 2011

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

0

5000

10000

15000

20000

25000

30000

3500031,189

28,228

20,018

16,356

11,502 11,046 10,815 10,754 10,280 9,089 9,373 8,104

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Number of On-Line Orders Per YearFY 2001 – FY 2011

0100020003000400050006000700080009000

863

1951

2550

4846

7154 6774

6232 6235 6766

5939

8849

Comparison of PO’s vs. Online PO’sProcessed Each Fiscal Year

FY 2000 – FY 2010

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 20110

5000

10000

15000

20000

25000

30000

3500031189

28228

20018

16356

11502 11046 10815 10754 102809089 9373

8104

32863 1951 2550

4713

7154 67746232 6235 6766 5939

8849

PO Electronic

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November 17, 2011 28

Cost Reduction Per Transaction

The average administrative cost of procuringand paying for a good or service via thetraditional purchase-order based process isreported by respondents to be about $89,while the average cost associated with theirpurchasing card transactions is estimated tobe about $22 – a net savings attributable topurchasing card use of over $67 pertransaction. (Based on the 2005 PalmerStudy)

PO’s Processed by QuarterFY 2011

27%

20%

19%

34%

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

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Ordering Cycle By MonthFY 2000 – FY 2009

Jul

Aug Sep Oct

Nov DecJa

n Feb

Mar Apr

May Ju

n0

500

1000

1500

2000

2500

3000

550 0 0 0 0 0 0 0 0 40

768

562

324

76 58 12 20 26 26 11 16 6

814

1040

365

126 114 88 51 79 47 63 62 88

427

1635

676

308

167278

112 148 125 129 102 118

915

2600

1349

504

369255

147

296 265141

349

52

827

1985

1104

580

291399

203287 259

399 392

131

744

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

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eProcurement Ordering Cycle By MonthFY 2000 – FY 2011

Series10

2000

4000

6000

8000

10000

1200011326

5813

25891789 1645 897 1443 1225 1361 1992

693

5731

Jul Aug Sep Oct Nov DecJan Feb Mar Apr May June

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Number of Purchase Orders Processed Per YearFY 00 – FY 11

FY 00

FY 01

FY 02

FY 03

FY 04

FY 05

FY 06

FY 07

FY 08

FY 09

FY10FY11

0

5,000

10,000

15,000

20,000

25,000

<$1000 $1000 - $4999 $5000 - $9999 $10000 - $14999 >$15000

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Bids vs. Bid Protests FY 2002 – FY 2011

0

50

100

150

200

250

300

350

214236

200223 227 225

288

321

291

216

3 3 9 5 4 10 1 5 11 5

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99%

1%

Bids Protests

Percentage of Bids vs. Vendor Protests Per YearFY 2002 – FY 2011

FY 2002 FY 2011

98%

2%

Bids Protests

Dedicated Professionals committed to Excellence yield Qualitative Results

FY 2001 – FY 2011 As of FY 2011 Purchasing has Processed 2,761 bids valued at $2.9 Billion 56 of the Agent’s recommendation for award have been appealed by

bidders. These bid protests represent 2.1% of total bids solicited. Of the 56 Appeals, 39 (69.6%) of the Agents’ decisions have been

appealed to the Purchasing Manager. Of the 39 appeals to the Purchasing Manager, only 7 (17.9%) appeals of an

Agent’s decision has been overturned. Of the 39 Appeals to the Purchasing Manager, as of FY 2011 only 5 (12.8%)

of his decisions have been appealed to the CFO and the Executive Director of Physical Facilities.

All appeals except one (1) to the CFO and the Executive Director of Physical Facilities of the Purchasing Manager’s decisions have been sustained

No award has been appealed to the Board of Education of Baltimore County since 2001

04/12/2023 35

BIDS & CONTRACTS PROCESSED

FY 2001 Processed 245 bids/contracts valued at $145,808,709 Million FY 2002 Processed 214 bids/contracts valued at $198,452,730 Million FY 2003 Processed 236 bids/contracts valued at $174,878,485 Million FY 2004 Processed 200 bids/contracts valued at $178,644,677 Million FY 2005 Processed 223 bids/contracts valued at $214,775,000 Million FY 2006 Processed 227 bids/contracts valued at $300,196,226 Million FY 2007 Processed 225 bids/contracts valued at $368,720,863 Million FY 2008 Processed 288 bids/contracts valued at $340,969,455 Million FY 2009 Processed 321 bids/contracts valued at $330,703,022 Million FY 2010 Processed 291 bids/contracts valued at $308,450,950 Million FY 2011 Processed 248 bids/contracts valued at $363,550,933 Million

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Total Dollar Amount Spent With BCPS Procurement Cards Per Year

FY 97 – FY 11

0

5,000,000

10,000,000

15,000,000

20,000,000

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04/12/2023 38

On-Line Orders Summary ReportTotal Dollar Value of Orders Per Year

FY 00 – FY 10

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$9,089 $322,540

$668,173 $831,337

$1,696,329

$2,328,847 $2,561,205 $2,521,756

$2,812,948

$3,803,951 $3,589,685

$5,095,309

Series1

39

FY2011 Operating, Grants, Capital, and Food Services Expenditures

Items Subject to Competetive Procurement

Process15%

$217 million

Items not Subject to Bid(Ex: utilities, salaries, benefits,

copyrighted materials [texts], insurance, rent, maintenance fees)

85%$1.42 billion

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Annual Reporting Results FY 2007 - FY2011Contract Awards That Include MBE/SBE Participation

July 1, 2006 through June 30, 2011

Note: A single contract award may include multiple MBE/SBE subcontracts

41

Annual Reporting Results FY 2007 - FY2011Contract Awards That Include MBE/SBE Participation

July 1, 2006, through June 30, 2011

42

Annual Reporting Results FY 2007 - FY2011Dollar Value of Participation That Includes MBE/SBE


43

MBE Participation for State-Funded Construction Projects by CategoryJuly 1, 2006, through June 30, 2007

Total State MBE Goal - 25% Total Achieved – 22.2%African-American Goal - 7% Achieved – 6.9%Woman Goal - 10% Achieved – 11.5%

22.2%

Annual Reporting Results FY2007State-Funded Contracts – Total $210.2 million

77.8% Other Non-

MBE$163.5M

6.9% African American

$14.5M

0.0% Native

American$0.1M

2.0% Asian

$4.3M1.7%

Hispanic$3.6M

11.5% Women$24.2M

44

69.6% Other Non-MBE

$13.3M


$0.7M

15.7% Asian

$3.0M

1.0% His-

panic$0.2M 9.9%

Women

$1.9M


MBE Participation for State-Funded Construction Projects by Category


Total State MBE Goal - 25% Total Achieved – 30.3%African-American Goal - 7% Achieved – 3.7%Woman Goal - 10% Achieved – 9.9%

30.3%

45




Total State MBE Achieved – 24.2%African-American Achieved – 4.1%Woman Achieved – 12.3%

75.8% Other

Non-MBE$48.2M


$2.6M

7.2% Asian

$4.6M0.6%

Hispanic$0.4M

12.3% Women$7.8M

24.2%

46




26.5%

73.4% Other

Non-MBE$85.5


$10.4

1.0% Asian$1.2

2.1% Hispanic

$2.5 14.5% Women$16.9


47


July 1, 2010 through June 30, 2011


36.3%

63.8% Other

Non-MBE$79.9


$13.3

1.8% Native American

$2.2

4.4% Asian$5.5

4.2% Hispanic

$5.215.2% Women$19.0


48

74.6% Other

Non-MBE$193.2M


$15.4M

0.0% Native American

$0.1M

1.8% Asian

$4.7M

1.4% Hispanic$3.7M

10.5% Women$27.1M

0.1% Persons

w/Disabili-ties

$0.1M5.7% Small

Businesses$14.7M

MBE and SBE Participation for All Contracts by Category

Total Contracts - $258.9 million


Board MBE/SBE Goal - 14%Total Achieved – 25.4%

25.4%

Annual Reporting Results FY2007

49






55.2% Other Non-

MBE$77.0M


$2.1M

3.7% Asian

$5.2M

4.3% Hispanic$6.0M

5.4% Women$7.5M

29.9% Small Busi-

nesses$41.8M

44.9%

50






64.5% Other Non-

MBE$154.7M


$10.5M

2.3% Asian

$5.6M

1.3% Hispanic$3.2M

7.0% Women$16.8M

0.5% Persons

w/Disabili-ties

$1.1M

20.0% Small

Businesses$47.9M

35.5%

51






67.9% Other

Non-MBE$139.1M


$17.7M

0.0% Native

American$0.1M

0.8% Asian

$1.6M

2.0% Hispanic$4.2M

9.9% Women$20.2M

10.7% Small

Businesses$22.0M

32.1%

52






36.7%

53

MBE Outreach EffortsThe MBE Officer and MBE Outreach Consultant for BCPS have:

• Participated in the Southern Maryland Regional Purchasing and Procurement Expo.

• Attended Blue Book networking events.• Participated in the Baltimore Washington

Corridor Council Government Procurement Fair.

• Attended the MWMCA annual awards breakfast meeting.

• Participated in MWMCA trade show and one-to-one contractor meetings.

• Participated in MD/DC Minority Supplier Development Council Business Conference.

• Participated in Prince George’s County Public Schools’ Regional Construction Event.

• Participated in Baltimore County Procurement Outreach Events.

• Hosted a Meet & Greet for general contractors and MBE subcontractors.

• Hosted a MBE School Days event for MBE subcontractors.

• Hosted an event for women-owned small businesses.

• Visited 50+ prime contractors to discuss their participation in the MBE program.

• Offered contractors assistance with – Identifying MBE subcontractors– Sending ads to solicit subcontractor bids– Completing forms correctly

• Participated in the MSDE pilot for new reporting procedures for state-funded public school construction projects.

• Attended a MDOT application assistance workshop.

fy2011 iso purchasing performance measures 063011 v2.0

Documents

office of purchasing

public procurement profession

procurement process

online purchasing

public school system

public trust

procurement awardwinner

procurement expertise