meeting september 9, 2010. 2 agenda 1.materials updates – walt quade, jp duvall 2.services updates...

Meeting

September 9, 2010

2

Agenda

1. Materials Updates – Walt Quade, JP Duvall

2. Services Updates – Dennis Fellin, Rich Gaul

3. Vendor Presentation – ARBILL – Donna Brown, Business Development Manager and Marcelo Rodriquez, Manager of Specialty Products

4. eMarketplace Updates – Sue Plecker

5. Other Procurement Updates – Cheryl Kleeman, Stephanie Fetter

6. Legal – Chuck Anderson

7. Training Updates – Joan Kraft

Appendix

3

MRO Contract• 10 total lots (2010) versus 7 (2005)

• 4 suppliers currently going through approval

• Will remain in SRM/ cXML as punch-out catalogs; R/3 for MRP users

• DB participation ~ 8 %; 0% currently

• December 1, 2010 target for new contracts

– Current contracts have all been extended for 90 days

• Continued push for energy efficient (“green”) products

• Continued cost cutting (Market Basket & process improvement) and SKU consolidation - $2.2M

• Inventory management & reduction (including tie-ins to SRM – Grainger)

• Continued contract compliance improvements

• On-going quarterly supplier business reviews with agencies

Contacts:Lilly Mangan, Commodity Specialist, MRO

717-346-3846 or [email protected]

JP Duvall, Associate Commodity Manager, MRO717-346-8175 or [email protected]

4

MRO Contract continued

LOT DESCRIPTION Supplier

One a) b)

ElectricalElectrical Square D

Schaedler/ Yesco DistributionGrainger Industrial Supply

Two a) b) c)

Lighting (Lamps/Ballasts/Fixtures) -2a) Sylvania Lighting (Lamps/Ballasts/Fixtures)2b) General Electric Lighting (Lamps/Ballasts/Fixtures) 2c) Phillips Lighting (Lamps/Ballasts/Fixtures)

Schaedler/Yesco DistributionGrainger Industrial SupplyWesco Distribution

Three General Hardware, Metal working, Test Equipment, & Security Grainger Industrial Supply

Four Material Handling Grainger Industrial Supply

Five Safety Arbill Safety

Six Hand & Power Tools Grainger Industrial Supply

Seven HVAC Grainger Industrial Supply

Eight Filters, excluding Automotive & Truck filters Grainger Industrial Supply

Nine Pumps & Plumbing Grainger Industrial Supply

Ten Motors & Power Transmission Grainger Industrial Supply

5

Electricity Procurement Update

• Preparing to begin the bidding process for the electric generation for all non-PPL utilities.

• Deregulation will impact balance of PA 01/11

• Budgets will continue to be impacted with cost increases based on experiences with PPL early this year.

• The PUC has granted PPL another 1.6% increase in their transmission rates for all customers effective 01/11

6

Water Alternatives

7

Environmental Facts

• Americans purchased 8.8 billion gallons of bottles water in 2007

• Avg. U.S. cost to treat, filter and deliver water to ratepayers is 0.2 cents per gal.

– Roughly 750-2,700 times cheaper than bottled per gallon. Rates vary regionally.

• 90% U.S. municipal water systems regularly meet or exceed EPA regulatory/monitoring requirements.

• In 2005 , 96% of bottled water sold in U.S. was packaged in PET containers, most single serve bottles.

• For each gallon of water that is bottled, an additional two gallons are used in processing.

• In 2004, only 14.5% of non-carbonated beverage bottles made from PET were recycled.

• Producing PET bottles uses the equivalent of more than 17M barrels of oil and produces over 2.5M tons of carbon dioxide.

– Same amount as emitted by over 400k passenger vehicles.

• Bottle-less coolers use 30 to 50% less energy than average bottled coolers.

• Major reduction in green-house gas emissions as truck deliveries are eliminated.

8

•Bottled water is environmentally damaging and wasteful. •Wide availability of safe, low-cost tap water, wide array of appropriate and cost-competitive filters and other drinking water dispensing equipment-switching to tap water saves money•Dramatically reduces environmental impacts

Greenhouse gas emissionsWater consumptionWaste generation

•Negative publicity about taxpayer funding going into expensive bottled water

Think Outside the Bottle

A growing number of buyers, both public and private, are thinking outside the bottle and making the switch.

9

Water Dispensing Equipment• DGS issued solicitation that resulted in a multiple award hierarchy contract # 4400007371 for lease of Water

Dispensing Equipment.

• Effective 8/15/10, 5-year contract awarded to 3 suppliers:

– Aqua Pure Technologies SRM Contract # 4400007372

– DS Waters of America SRM Contract # 4400007373

– Quench USA Inc. SRM Contract # 4400007374

• Pcard enabled: N

• Pcard accepted: Y

• MSCC: No

• Validity Period 8/15/2010 to 8/14/2015

Contact:Richard Bahl, Commodity Specialist717-787-5427 or [email protected]

This cost effective alternative to bottled water should reduce costs by approx 30%.

10

Contract Number

Description Value Type of Contract

4400007413,

7414,7415,7416,

7417

Misc Lab Supplies $1,000,000 One Year with two renewals

4400007372,

7373,7374

Water Dispensing Equipment

$400,000 5 Year

4600014390,

14407

Aftermarket Vehicle Parts

$4,000,000 Two Year with three extensions

4600012686,

14348,

4400005801,

6413

Tires $10,000,000 One year

4400006580 Medium Duty Trucks $3,000,000 One Year

Contracts-Last 30 Days

11

Contract Number

Description Value Type of Contract

4400002702 Electric PECO $40,000,000 One Year

4600010918 Sign Stiffeners $100,000 One Year

4600013299,

13302, 13301

Sign Sheet $2,000,000 One year

4600013845,

13844,14411,

13847

Traffic Delineators $500,000 One Year

4600014416 thru-14451

Plant MIX $70,000,000 One Year

4600014459-Thru 4600014479

Bitu Patch $10,000,000 One Year

Contracts-Last 30 Days

12

Bid Number Description Value Type of Contract

9140-02 Fuels $20,000,000 IFB

9120-02 Propane $1,000,000 IFB

NA Bio-Mass Fuel $400,000 IFB

New Commissary $20,000,000 IFB

N/A Industrial Plumbing $2,000,000 IFB

6100016165 Traffic Control Tech $100,000 ITB

6100016142 Fitness Equip $750,000 IFB

New Solicitations Next 60 Days

13

Services Team New ContractsProject Title Agency Commodity

Specialist/ Issuing Officer

PO/Contract Number

Supplier Name DB Type DB Commit %

Original Contract Start Date

Original Contract End Date

5011 Boat Registration ID Card & Decal

PFBC Noss, Toniann 4400007261 Moore Wallace North America Inc

0.00% 7/7/2010 6/30/2012

Actuarial Analyses of Proposed Legislation

PERC Williams, Emanuel

8413 Actuarial Services PERC

Various 0.00% 7/1/2010 6/30/2011

Actuarial Service DOI Williams, Emanuel

4400007231 Mercer Health & Benefits LLC 0.00% 7/1/2010 6/30/2011

Advertising-Marketing Services ALL Poepperling, Hilary

4400006934 Neiman Group 20.00% 7/1/2010 6/30/2011

Audit Services OB Williams, Emanuel

4400006811 KPMG LLP WBE 30.00% 5/18/2010 3/31/2013

Automated Mail Processing Service ALL Bowers, Wanda

4400007056 Pitney Bowes-Presort Services MBE 7.90% 8/9/2010 8/8/2012

Boating Safety Certificates PFBC Noss, Toniann 4400007115 Moore Wallace North America Inc

0.00% 7/1/2010 6/30/2012

Broadcast Satellite Maintenance Services - CMS

DGS Yagle, Brandi 4400007133 Skyline Communications, Inc. 0.00% 7/1/2010 6/30/2013

Certified Insurance Brokers L&I Williams, Emanuel

8413 Structured Brokerage Settlement

Various MBE 100.00% 7/26/2010 7/25/2013

Commercial Print, Forms and Stationary Lot #1 Flat and Folded Lot #2 Carbonless/Carbon Forms

ALL Noss, Toniann 5510 Commercial Offset Forms Print

Digital Ink Inc WBE 30.00% 8/1/2010 7/31/2012

Digital Fingerprinting & Federal Criminal Background Investigation (IN PROTEST)

DGS Baltimore, Georgina

4400007247 Cogent Systems MBE 30.70% 7/1/2010 6/30/2015

Educational Banner Mats PDE Noss, Toniann 4400006997 Superior Business Solutions 0.00% 5/4/2010 3/31/2012

Enterprise Software (Software) ALL Teprovich, Tom

4300241659 Acclaim Systems Inc MBE 100.00% 8/23/2010 8/22/2012

14

Services Team New ContractsProject Title Agency Commodity

Specialist/ Issuing Officer

PO/Contract Number

Supplier Name DB Type DB Commit %

Original Contract Start Date

Original Contract End Date

Food Safety and Laboratory Services IT DOAGeegee-Dugan, Christina

4300233195 Computer Aid Inc WBE 43% 5/17/2010 4/30/2013

HVAC Service Roadside &Welcome Centers District 4

DOTBonner, Danielle

4400007297 Troy Mechanical Inc 0.00% 8/1/2010 7/31/2012

Insurance Brokerage and Consultant DGSWilliams, Emanuel

4400007323 Aon Risk Services Central Inc 0.00% 7/26/2010 7/25/2013

Internet Based News & Information Services

ALLHabowski, Jennifer

4400006936 Various 0.00% 6/1/2010 5/31/2013

Investment Consulting Services DOIWilliams, Emanuel

4400006746Morgan Stanley Smith Barney LLC

0.00% 7/1/2010 6/30/2015

Media Displays ALL Noss, Toniann 4400007017 Purpose 1 Inc 0.00% 5/6/2010 6/30/2012

Media Planning & Purchasing Services ALLPoepperling, Hilary

4400006978 Harmelin Media WBE 3.00% 7/1/2010 6/30/2011

Medical Specialist Services (NSH) DPW Kramer, Nicole 4400007196 Montgomery Hospital 0.00% 7/1/2010 6/30/2015

Municipal Statistics System Services DCEDWilliams, Emanuel

4400006729Pennsylvania State Association of Twp Supv.

MBE 15.50% 7/1/2010 6/30/2015

Municipal Waste Services ALL Yagle, Brandi 4400006854 Various 7/1/2010 6/30/2013

PC / Technical Support Services DEPTeprovich, Tom

4300241659 Acclaim Systems Inc MBE 100.00% 8/23/2010 8/23/2012

Pharmacy Services DOC Gaul, Rich 4400007074 Diamond Drugs Inc MBE 30.00% 6/15/2010 7/31/2015

Quality Control Review Services ALLWilliams, Emanuel

4400006994 Zelenkofske Axelrod LLC 0.00% 5/12/2010 5/11/2011

Relocation Consulting Services Contract

ALLBowers, Wanda

4400006908 Various 0.00% 7/1/2010 6/30/2012

Staff Augmentation Services ALLTeprovich, Tom

4400007198 Computer Aid Inc MBE 70.00% 6/30/2010 6/30/2012

Tree Removal & Stump Cutting ITQ ALL Jackson, Tonja 4400006436 Various 6/1/2010 5/31/2015

Underground Storage Tank Repair Services

DGS Yagle, Brandi 440007430 Keystone Petroleum Equipment 0.00% 9/1/2010 2/28/2011

15

Services Team Current SolicitationsProject Title Agency Commodity Specialist

Solicitation Number

Bid IssuedBid

OpeningAdvocacy Services DPW Whitsel, Kay 7/8/2010 7/29/2010

Alcohol and Other Drug (AOD) SCI Chester and Pittsburgh DOC Kramer, Nicole

BWC Automation and Integration Initiative L&I GeeGee-Dugan, Christina 6100013597 10/21/2009 1/12/2010

CADD Support-DOT DOT Jaime, Ray 6100016139

Central Control Computer System DOR Mistretta, Tami 6100013574 7/7/2010 8/13/2010

Commercial Drivers License Info System (DCLIS) DOT Corish, Angela 6100014467 7/1/2010 8/4/2010

Courier Services ALL Bowers, Wanda 6100016510 8/30/2010 9/13/2010

DOT Infrastructure Support Client/Server Network Support Services DOT Goertz, John 4400006974 7/6/2010 8/23/2010

Drafting & Engineering ALL Jaime, Ray

Electronic Payment Processing (Merchant Services) ALL Habowski, Jennifer 6100014332 4/1/2010 5/13/2010

Elevator Services ALL Jackson, Tonja 6100012706 7/9/2010 8/17/2010

eTranscripts and Student Record Exchange Solution PDE Mistretta, Tami

External Quality Reviews for Office of Medical Assistance Programs DPW Williams, Emanuel 6100016162 8/23/2010 9/30/2010

Independent Verification & Validation Services L&I Corish, Angela 6100014127

Information Technology Equipment Maintenance and Storage DOT Jaime, Ray 6100012979 4/12/2010

Information Technology Services of DPW (Unbundling) DPW Shaffer, Kay DPW 16-09 6/21/2010 9/7/2010

Learning Management Service (LMS) Solution ALL Teprovich, Tom 6100016085 8/23/2010 10/13/2010

Lottery Procurement DOR Shaffer, Kay 6100014689

Nurse Aide Registry; DOH and PDA DOH/PDA Teprovich, Tom 6100016087

PA Health Information Exchange (PHIX) OA Fellin, Dennis 6100009286 4/1/2010 5/24/2010

PA Information Management System (PIMS) PDE Goertz, John 6100016106

PACE Program Aging Shingara, Syline 6100011363 6/24/2010 8/10/2010

PADOT Customer Call Center DOT Shingara, Syline 6100013048 12/15/2009 2/11/2010

PASCSES Client Infrastructure Network DPW GeeGee-Dugan, Christina 6/25/2010 8/27/2010

Radio Tower Space Rentals OA Bowers, Wanda 6100015246 5/3/2010 6/28/2010

Revenue Independent Verification & Validation DOR Goertz, John 6100016105 8/18/2010 9/23/2010

Snow Removal Services - DOT Driver Liscense Centers DGS Bowers, Scott 6100016179 7/29/2010 9/9/2010

Snow Removal Services - Harrisburg Capitol Complex DGS Baltimore, Georgina 6100016150 7/21/2010 8/20/2010

State Parks Reservation and Revenue Program DCNR Corish, Angela 6/3/2010 8/5/2010

UnArmed & Armed Security Guard Supplement #2 ALL Bonner, Danielle 6100016148 7/28/2010 8/18/2010

Uniform & Mat Rental/Cleaning Services DGS Baltimore, Georgina

16

Enterprise IT Staff Augmentation Services

•Awarded to Computer Aid, Inc. Contract 4400007198 –Effective 8/4/2010 - 6/30/2012, with option for three (3) additional years.

–Yearly projected savings $6.1M, 12.4% average reduction in rates.

–DB committed24.7% Contract mgt70 % Staffing spend

–People Click users can run Business Intelligence reports based on the users login information.

Can view real time data specific to their agency.

–PO’s against current contract (4400023137) remain valid until 12/31/10.

If agency wishes to utilize new rate structure for current engagements, must issue a new requisition against contract 4400007198 and upon receiving a new quote, cancel the current PO and issue a new PO.

17

Enterprise Software Contract

•Lot 1 – COTS Software, includes Microsoft Products;–Awarding to Dell–Projected savings of $330k/ yr based on the reduction in supplier mark-up on new license and renewals. –Mark-up – from average of 1.1% to avg. flat rate of 0.5%.

•Lots (2 – 10) – IBM Enterprise, includes Applications, include FileNet, Optim, Cognos, and iLog.

– Awarding to IBM.

•Contracts routing for approval.

•Current Contract expires September 30, 2010

18

Print Contract

•Supplier – Digital Ink•Line Item Specific Print:

–SRM Contract Number: 4400007122Select MSCC Catalog from Contract

–R3/SAP Contract 4600014412 For use only by DOT for MRP items

•Matrix-Based &Process-Based Print: –SRM Contract Number: 4400007122

•Select “Product Category” (Line item 9) from Contract.

•Print Specification Approval–Bureau of Publications is responsible for approving all printing specs for matrix-based or process-based print (i.e., non-document specific line items) prior to submitting to Digital Ink.

19

Print UpdatesCONTRACT EXPIRATION

DATEPREVIOUS BID TYPE

FUTURE BID TYPE

NOTES

Bound Print 2/28/2011 RFP RFP Procurement & PublicationsEnvelopes 2/28/2011 RFP RFP Procurement & PublicationsTax Booklets / Documents 2/28/2011 RFP IFB Procurement Maps 2/28/2011 RFP IFB Procurement & Publications

(reviewing types of maps)Disability Placards (PennDOT Only) 2/28/2011 RFP IFB ProcurementVehicle Decals 9/30/2010 IFB IFB ProcurementSilk Screening 10/31/2010 RFP IFB Procurement JIT Forms (Continuous Cut Card Forms) (Currently Penn DOT Only)

6/30/2011 IFB IFB Procurement

Ethics Commission Forms / Fulfillment Expired IFB IFB Will be added to Lot 2 of new Print Contract with Digital Ink.

Fine Art Prints New Procurement (reviewing specs)

Variable Data Print (L&I 1099, Rev 1099, SERS 1099, SERS Member Statements, SERS Annuitant Statements, etc.)

New RFP IFB Procurement & Publications (Process Bid lotted by Agency. Total option of 5 years but renewed at 1 year intervals.

Publications will be reviewing specs and trying to standardize the agencies involved.)

Labels New Publications will do one-off bids until information can be gathered for a state-wide contract.

Inspection & Safety Devices (3 Current Contracts)

Inspection / Emission Stickers 4/30/2011 IFB IFB ProcurementInserts 5/31/2011 IFB IFB Procurement

Mass Transit / School Bus Stickers 5/31/2011 IFB IFB ProcurementMass Mailings

MA Bulletins, SERS Qtrly Newsletters, etc.

New RFP IFB Procurement & Publications ( Publications working out details and timeframe.

42

Procurement Forms Website Redesign

• Procurement Forms website has been redesigned– Shows which forms should be used for each transaction (i.e. IFB, RFP,

Sole Source, Contract)

– Provides definition or use for each form

43

New SRM Punch-out

New SRM Punch-out Catalog

Supplier: Pomeroy IT Solutions

Supplier #: 169472

• Contract 4400007143, IT Hardware (Peripherals)

– Please note this contract replaces 4400002810

• Contract 4400002814, IT Hardware (Networking Gear)

• Auto-PO Functionality enabled on orders $10,000 or less

• Go-Live: August 19, 2010

• Pomeroy Punch-out Catalog User Guide

44

ACM & CS Contract Alert Program

Notification will occur via outlook and in the alerts tab in the universal work list (UWL).

•View from Universal Work list Alerts Tab:

•The alert must be “Completed” by the recipient (right click the item and choose Complete) for the item to be removed from the alerts tab.

•View from outlook email:

45

Liquidated Carts Showing in BW/BI

Question:

When reducing purchase orders that have carts associated with them the cart balance shows in the purchaser’s worklist. When going in to check them off - the checkmark changes from green to gray; but they still show up on BW/BI reports as open shopping carts. Users cannot go into monitor shopping carts and delete it from there as it shows there is a PO attached to it, so a remedy ticket is needed.

Response:

There are times when the shopping cart report data gets out of sync with the BW/BI reports because of the timing of the extract as well as the various processes used to create purchase orders.

Resolution:A new transaction has been added to the purchaser role that allows the liquidation of the open value and the next day the BW/BI reports will reflect those changes. An end user procedure (Shopping Cart Complete Program in the Purchasing Agent Role) has been developed– the transaction is very simple and requires just the PO number and line item.

46

MSCC Contracts Update

Textiles• 4400000971 Cotswold Industries Inc• 4400000987 Ragold Corporation• 4400000991 J Weinstein & Sons Inc• 4400000992 Tabb Textile Company Inc• 4400000993 Carolina Textiles• 4400000999 Jason Mills LLC• 4400001172 Comade Inc• 4400005913 Lafayette Textile Industries LLC

Work Gloves• 4400003085 Stauffer Manufacturing Co• 4400003660 Saf-T-Guard International Inc

Existing DGS Contracts converted to Material/Service Contract Catalogs

Printing/Envelopes• 4400006807 MeadWestvaco

47

MSCC/Auto-PO Policy

New DGS policy:

• All MSCC catalog contracts will be set up as auto-PO

• Currently there are 216 MSCC catalogs

– 54 are auto-PO enabled

• Converting all existing

– Tire Contracts: Goodyear & Bridgestone

• Notification will be sent to all agencies with go-live date

• All new MSCC auto-PO, effective 8/6/10

Auto-generated POs:

• A supplier enablement functionality

• System faxes a PO directly to a supplier upon completion/release

• Suppliers are set up for auto-PO based on established criteria

– Creation of a MSCC catalog

48

Invoices received in agency reconciler workflow

Issue:Invoices in agency reconciler’s workflow that do not belong to that agency.

Review of Issue:Upon review of PO’s, determined that, while some of the line items on the PO are for this particular agency, other line items are set up for the agency that truly should be getting the invoices.

Background:Invoice routed, via workflow, for a particular PO, system ID’s 1st 7 digits of Funds Center on LAST line item of the PO, and determines from that line item where invoice transaction should be routed.

–Invoice routed to agency reconciler only when it was unable to be posted/cleared after Invoice Processing (“R” Blocks, rejections, etc.).

Unable to have system route invoice based on more than one line item, thus last line item is logic utilized.

Solution:In order for invoices received against PO’s to route correctly, agency users should ensure that the last line item on the PO has the Fund Center of the agency that should be receiving the invoices.

49

Procurement Handbook Progress Report: Completed

Chapter Description Location ChangeDefinitions Pt I Ch 02 Added the term and definition for Funds Commitment.

Methods of Award Contracts Pt I Ch 06 Section E.2.e. was revised to: •Clarify that a source justification form is not required but that a brief written justification is required. •Language was added to indicate agency shall limit contracts under the exemption to hourly rate contracts.•Travel by contractors during normal business hours would not be reimbursed.•Travel outside normal business hours by contractors must be preapproved by the agency and will be reimbursed in accordance with M.D. 230.10; all other requirements set forth in part III, Chap 05 of the handbook are applicable to procurements of chaplaincy services.

Methods of Awarding Contracts(August 13, 2010)

Pt I Ch 06 Changed B.11. (Offeror Notification) from: "The issuing office will notify all offerors in writing of the selection of an offeror for contract negotiation or that it has rejected all offers, as applicable." to: "The issuing office will notify the selected offeror only in writing of its selection for contract negotiation." ANDAdded section c under B.12. (Negotiations with selected offeror.): "Notification of Non-Selected Offerors. When negotiations have been successfully completed and the issuing office has received the negotiated contract signed by the selected offeror, the issuing office will notify the other offerors in writing of the selection and of the opportunity for a debriefing."

50


Chapter Description Location ChangeContractor Responsibility Pt I Ch 14 •Added the words "which are comprehensive, measurable and

enforceable" to Section J. •Added new Section M, Titled Immediate Action for Poor Performance and renumbered the chapter. •Added language on monitoring to the end of Section P, Good Project Oversight/Management is Essential. •Added new Section V.6.

Procurement Card Pt I Ch 27 •Section B.5. was added indicating purchases via p-card are authorized based on transaction limits established in M.D. 310.23. •Language was added to indicate requests to exceed these limits on a statewide contract will be evaluated and waivers granted on an individual basis by DGS BOP.

Contractor Performance & Legal Remedies

Pt I Ch 57 New Section D and Section F.1.a., b. and c. were added.

Emergency Procurements Pt II Ch 06 •Revised chapter to reflect the agencies requirement to use the on-line emergency approval request form and process. •Combined the emergency procurement of materials and services into one chapter.

Modified Emergency Procurement of Production Materials for Correctional Industries

Pt II Ch 06A Chapter was rescinded.

51


Chapter Description Location ChangeProcurement of Used Equipment Pt II Ch 14 Revised chapter to reflect the agencies requirement to use the

on-line source justification form and process vs. the manual form and process.

Procurement of Materials or Services through a Cooperative Purchasing Agreement (Including Purchasing From GSA Schedule Contracts)

Pt II Ch 21 New Chapter . This was previously a reserved chapter.

Sole Source Procurement of Services Pt III Ch 05 •Revisions to on-line sole source approval process that was issued in May 2010. •Added language to Section D.2.g. to clarify that the total dollar amount of the sole source shall include costs associated with the original contract period plus all subsequent renewal periods.•Additional language indicating, “Any contracts shall not exceed 10% of the total dollar amount. A new sole source justification form must be submitted for any increased in excess of 10%.”

Emergency Procurement of Services Pt III Ch 06 Chapter has been revised to instruct users to refer to Part II, Chapter 06 for procedures on Emergency Procurements.

52

Procurement Handbook Progress Report: In Progress

Change Description Location StatusDefinition and use of RFEI Pt I Ch 02

Pt I Ch 06In Development (Legal)

RFP process distinction between BAFO and Pre-selection Negotiation

Pt I Ch 06 In Development (BOP)

Update to section on Debriefings (B.13 & B.12) This change will be published as soon as complete

Pt I Ch 06 Draft Language Under Review

Adding language on Established Catalog Price Contract Types


Chapter being revised to remove obsolete forms and add new forms.


Use and approval of Funds Commitments Pt I Ch 30 In Development (BOP)

Chapter being revised to remove obsolete forms, unused terminology and to reflect current processes


53

Procurement Handbook Progress Report: In Progress

Change Description Location StatusRevising entire chapter on Records Retention Pt I Ch 52 Draft Language Under Review (Legal)

Revisions to reflect the proper use of the Delegation Request and Notice of Forthcoming Procurements and requirement to complete the automated Source Justification Form

Pt II & IIICh 04

Draft Language Under Review

Sole Source Procurement of Materials: Entire chapter being revised

Pt II Ch 05 Draft Language Under Review

Revisions to reflect the proper use of the Delegation Request and Notice of Forthcoming Procurements

Pt II Ch 07 Draft Language Under Review

Revisions to processes associated with the procurement of vehicles

Pt II Ch 18 & 19

In Development (DGS BVM)

New chapter on the Acquisition of Federal Surplus Property

Pt II Ch 27 To Be Drafted (BOP & BSSO)

54

Contracts Greater than 5 Years

• Form BOP-012, Request for Contract Term Greater than Five Years Waiver Review Form

55

Contract Validity Dates on POs

• Contract validity dates printing on Purchase Orders

– Is this creating an issue for other agencies or their suppliers?

– Requires development and testing to remove

56

Zoomerang Survey Tool: Forms Survey

• BOP purchased a Zoomerang license; what this means for agencies:

– Expect to receive various Zoomerang surveys from BOP, i.e. Goods Receiver Survey

– This tool will not increase spam email

– Employees should NOT click on link to “opt out” of surveys

Upcoming Surveys:– Use of Manual Procurement Forms: Procurement Handbook, Part I

Chapter 10• Independent Agencies only• Expected date: September 17, 2010

- BOP Instructor Led Training Courses• All agencies• All courses

57

Records Management

• Document Naming Conventions and Records Management – Outlines naming conventions applicable to SRM procurement documents in the

SAP Records Management (“RM”) System.

• Electronic file naming conventions are critical to managing an effective records management environment.

• User searching for and/or reviewing documents, will be able to locate and decipher exact documents in minimal time and effort.

• PART I – Document Naming Conventions-Electronic/Scanned Document Naming Conventions

• PART II – Records Management Overview -Manage records of procurements made on behalf of the Commonwealth. Records Management Folder Structure

• PART III – Attachments in SRM/Records Management Folder Contents-Files required to be electronically attached to SRM Procurement Documents.

• PART IV – Records Management Version Management-Document version management is required for attachments within the Additional Documents Folder and the Protests Folder

58

Records Management

• Appendices: (web links)

• Records Management Policy

• SAP Records Management Training Course

• Locating & Viewing a Bid Invitation & Attachments in RM (End User Procedure)

• Locating & Viewing a Contract & Attachments in RM (End User Procedure)

• Locating & Viewing a Purchase Order & Attachments in RM (End User Procedure)

• Comprehensive Guide to Versioning in RM (Reference Guide for Users)

• Editing & Maintaining Versions of Attachments in Records Management (RM) (EUP)

• Management Directive 205.36 Right to Know

• Webposting Checklist for eMarketplace Treasury

• Commonwealth Email Retention Policies

• M.D. 210.5 Commonwealth Enterprise Records Management Program

• Management Directive 215.16 Contract Compliance Program

• Right to Know Checklist

59

•(DGS/BOP Web links)

•Webposting Folder Setup and ACM Review

•Records Management Folder Process Flow Chart

Records Management

60

Legal Updates

There are several new contract clauses to make you aware of:

SBR - When issuing an RFP that is to be set aside for award to small businesses only (Small Business Reserve), Purchasing Agents and Commodity Specialists should utilize the newly created RFP template (for SBR’s). This template can be located in PU Forms for BOP personnel and at link below for agency personnel.

DGS Small Business RFP Template

http://www.dgsweb.state.pa.us/comod/CurrentForms/RequestforProposals_SBR.doc

For IFB’s issued as SBR’s a reminder to attach the certification form below which can also be found in PU Forms and at link below for agencies.

Small Business Certification Form

http://www.dgsweb.state.pa.us/comod/CurrentForms/SmallBusCert.doc

61

Legal Updates continuedContractor integrity and non-discrimination clauses

These clauses were recently approved and should be added to new solicitations. Doc Builder changes/updates will be made in the near future to include these clauses. These forms can be located in PU forms for BOP personnel and at link below for agency personnel.

Contractor Integrity Provisions

http://www.dgsweb.state.pa.us/comod/CurrentForms/ContractorIntegrityProvisions.doc

Nondiscrimination/Sexual Harassment Clause (Grants)

http://www.dgsweb.state.pa.us/comod/CurrentForms/Nondiscrimintation_Grants.doc

Nondiscrimination/Sexual Harassment Clause (Contracts)

http://www.dgsweb.state.pa.us/comod/CurrentForms/Nondiscrimination_Contracts.doc

Nondiscrimination/Sexual Harassment Clause (Deposit of Commonwealth Funds)

http://www.dgsweb.state.pa.us/comod/CurrentForms/Nondiscrimintation_DepositofFunds.doc

•

62

Draft of RFP vs. IFBDETERMINATION TO USE COMPETITIVE SEALED PROPOSALS (RFP)

METHOD OF PROCUREMENT

The _________________________________________ [NAME OF PURCHASING AGENCY] has decided to use the competitive sealed proposal method for the selection and award of Contract ___________ for the procurement of _______________________________________ _________________. In accordance with 62 Pa.C.S. § 513(a), the contracting officer has determined that the use of competitive sealed bidding is:

[check all that apply]

___ Not practicable because:

___ The agency is seeking a contractor's solution to a purchasing agency need.

___ The agency wants to provide offerors with flexibility in the contents of their proposals in terms of the materials, services, or construction offered.

___ The scope/statement of work/specifications lack clarity and specificity in terms of a detailed procurement description.

and/or

___Not advantageous to the Commonwealth because:

___ The agency wants to consider criteria other than price in the award process and, in particular, criteria that are subjective in nature:

___ disadvantaged business ___ domestic workforce ___ enterprise zone participation

___ contractor qualifications, experience and financial capability

___ service and delivery capability

___ other criteria _______________________________________________________.

___ It is not in the agency’s or the Commonwealth’s best interest to use competitive sealed bidding (explain)____________________________________________________

_____________________________________________________________________________.

Explain the nature of the contract: __________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________

Explain more fully and with specificity the reasons indicated above: ________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________

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CRP

Contractor Responsibility Program (CRP) System Upgrade– Management oversight of the project is with Revenue and OB

– Project goals include the following Standardize CRP checks across the commonwealth by building a central database to

store liability, suspension, debarment and performance related information

Create a user interface that will allow agencies to query the central database for a single vendor or batch of vendors

Utilize a web service that can be consumed by any commonwealth agency as part of their contract/grant approval process and/or payment process

Improve the accuracy of CRP checks by updating the CRP file on a daily basis instead of the current weekly process

Include federal suspensions/debarments through consuming the EPLS Web service

Reduce the costs related to the current manual process for unblocking payments to vendors who have cleared their liability

Realize greater efficiencies and reduce costs by eliminating the need for paper clearance certificates

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CRP Continued

Contractor Responsibility Program (CRP) System Upgrade– User roles:

• CRP User (to search & check)

• Performance Issue (PI) Creator

• Performance Issue (PI) Approver

– Training Courses and Delivery Methods• Web-Based course for each role

Contractor Responsibility Program (CRP) System Upgrade– Re-write of MD 215.9, CRP, is drafted and going out for review soon – Training Schedule

• “Just In Time” training estimated to occur between September 27 and October 15

• All courses will be made available for self-enrollment in ELMS

– Go Live date October 18

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Certification• 125 PA’s attended Certified PA Purchasing Agent training

– 97 Receiving their CPPA certification

– 59 Purchasing Agents still require certification Excludes Corrections and Transportation

• Procurement Policy and Process

– Purchasing Agent Course is scheduled for October 4-7, 2010

– Enrollment is available through ELMS

• Latest Certification recipients:

Cheryl Gee – CorrectionsMary Hein – DPWRose Heller – DPWAnn Kimmel – DMVABrenda Lower – DMVAColeen Manum – Inspector GeneralCynthia Marencic – Game Comm.Amber Shinskie – DPWSteven Smith – DCNRSharon Wessner - DMVA

From February:Joan Folmer - BudgetCheryl Heishman – L&IVictoria Lengel – DMVASusan Murphy – L&ILawanza Poteat – EducationMichele Rhody – DMVAKaren Sattazahn – DMVAJosephine Somogyi – L&IColleen Sonder – DGSKaren Turns – DMVAKenneth Zakraysek – L&I

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Contact Information

Chuck Anderson, DGS Attorney, Strategic Source 717-214-7739 [email protected]

JP Duvall, Associate Commodity Manager, Materials 717-346-8175 [email protected]

Dennis Fellin, Commodity Manager, Services 717-346-2675 [email protected]

Stephanie Fetter, Associate Commodity Manger 717-787-7526 [email protected]

Rich Gaul, Commodity Manager, Services 717-783-8578 [email protected]

Cheryl Kleeman, Strategic Development Manager, BOP 717-346-4326 [email protected]

Joan Kraft, Director, Business Process Improvement 717-705-0564 [email protected]

Jeff Mandel, Chief Procurement Officer 717-787-5862 [email protected]

Susan Plecker, Systems Manager, BOP 717-346-2678 [email protected]

Walter Quade, Director, Materials Procurement 717-787-4775 [email protected]

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Appendix

• Appendix – A, ERS Changes

68

Monitoring GR entry for ERS suppliers

• PO Overview Report

– Requested delivery date

– Compare against entry of GR

ERS Changes

69

ERS Changes

Notice: Effective July 26, 2010, the SRM system began generating two hard stop error messages. The error messages below occur when entering Goods Receipts for ERS suppliers and the “Delivery Note” field in R/3 (MIGO) or the “Reference Document” field in SRM are not populated.

R/3 "MIGO" Delivery Note Message SRM Reference Document

Solution: When entering a Goods Receipt users must enter the supplier’s Bill of Lading Number into the “Delivery Note” field or “Reference Document” field. If no Bill of Lading number was provided with the shipment then enter a number provided by the supplier, such as packing slip number, shipping number, etc.

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ERS Changes

Background:

The information from “Delivery Note” and “Reference Document” fields is then populated into the “Invoice Reference” field of the system generated ERS invoice when the automated Invoice Receipt program is Run. The data from the “Invoice Reference” field is included in the Supplier’s Remittance Advice.

The Remittance Advice is sent to the supplier to reconcile Automated Clearing House (ACH / electronic) payments from the Commonwealth.

In addition, the “Delivery Note” and “Reference Document” fields are designated by the SAP system as the “Reference” field of the Purchase Order History in R/3. This provides users with another tool to use when trying to reconcile payment and processing information.

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ERS Changes

Example:

Purchase Order 4500010342, Procurement Invoice #5105706524 the Invoice Reference Field shows “0714_7890123”. This is derived from the “Delivery Note” field of the Goods Receipt (5000010811) which triggered this payment.

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ERS Changes

• The Reference field in the PO History of the Invoice and the Goods Receipt (MIGO Delivery Note or SRM Reference Document fields) contains the same data.

Goods Receipt in PO History

Invoice Receipt in PO History

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ERS Suppliers

Vendor # Company Name

114953 POTTERS INDUSTRIES INC

129240 LARRYS LUMBER & SUPPLY INC

163483 FLOR DRI SUPPLY CO INC

170194 CORRECTIONAL INDUSTRIES

170885 ENNIS PAINT INC

210125 GREENWOOD MANUFACTURING INC

319859 GREENSTAR ALLENTOWN LLC