eMARS User Group MeetingMarch 17, 2011

Go Cards!

Go Eagles!

Go Cards!Go Cats!

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AgendaOpening Remarks Ed RossSmart Government Initiative Don SpeerEO1/LOI/RFP Recap Don SpeerFixed Assets Jennie WolfeRecent eMARS Issues Rachelle WilkinsKHRIS Data Rachelle WilkinseMARS Upgrade Rachelle WilkinsThe New Face of eMARS Barbara Aldridge-Montfort

Financial Management Service Barbara Aldridge-Montfort

Misc Items Barbara Aldridge-MontfortQ & A

Smart Government Initiative (SGI)Procurement Work Group

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IT Contract Renegotiation Renegotiate or rebid information technology

contracts to achieve savings through the following means:– Ask vendors to reduce billing rates or commodity prices

by an appropriate percentage, depending on the contract• To Date: AT&T has agreed to make significant payments to the

Commonwealth (instead of providing discounts) on two statewide master agreements ($2 million savings)

Renegotiated Wireless contract - AT&T has sent payments to the Commonwealth totaling more than $367,000

Renegotiated Kentucky Information Highway contract – AT&T has sent a payment of more than $492,000

More than $1.2 million expected over the next two years

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IT Contract Renegotiation - ContReview existing task orders to determine if

the use of contractors for systems’ design and development services is appropriate.– Commonwealth spent approximately $34 million

on 340 such contractors in FY10.

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Temporary WorkersAgencies should be required to establish task

orders with vendors that outline specific work duties and defined lengths of work established for all temporary workers– Agencies should have to justify all temporary

labor workers that have been in the same department or position for more than two years

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Janitorial Services Contracts for janitorial services and supplies should

be re-examined with the following recommendations:– Require the vendor to provide cleaning products and

supplies– Reduce the frequency of floor care and pay for such

service only when requested– Use inmate labor where practical/feasible– Develop a new solicitation for Janitorial Supplies Master

Agreements to be used by agencies that have a need to provide their own products and supplies

– Consolidate service contracts based on building proximity

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Janitorial ServicesThe Cabinet for Health and Family Services

(CHFS) reviewed their facilities statewide and reduced the number of Janitorial MA’s from 170 to 28 or a savings of about $350,000 annually– 14.3% savings by consolidating janitorial

contracts for all CHFS owned or leased buildingsUnlikely that a smaller cabinet with fewer

locations could achieve double digit percentage savings without a coordinated effort across several cabinets

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Reverse AuctionsUtilize the reverse auction method of

procurement when appropriateIssue a competitive procurement to establish

a Master Agreement with a vendor to conduct reverse auctions

Realized savings for other states using this method of procurement is 25 to 40 percent of commodity expenditures

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Personal Service Contracts (PSC) The Commonwealth spends in excess of $1.2 billion

annually in PSCs– The cost of the services should be the primary evaluation

factor in selecting a PSC vendor whenever appropriate– OPS should train agencies on the best practices for

evaluating bid responses and procurement negotiations– Eliminate the requirement that a PSC terminate at the end

of the biennium to garner greater savings for longer contracting periods

• Eliminating this requirement for commodity and non-professional services has shown 5 to 10 percent savings

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“Exceptions” Process Adjust the Administration’s “exceptions” process

under which the Finance Cabinet reviews procurements of all agencies in excess of $1,000

Finance will delegate to the agencies the review of their own expenditures < $25,000, except:– IT– Printing– Fleet– Postal Services– Leases– Building Maintenance & Renovation

Agencies required to maintain an internal review process to provide data for compliance and audit

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Office SuppliesThe Commonwealth currently spends $14

million annually on office supplies (81% going to Cardinal Office Supply).

Recommendations to maximize the purchasing power for office supplies include:– Vendors should discontinue printing the office

supply catalog• Commonwealth would receive approximately $30,000

in the year it is discontinued• Future savings would come from lower contract prices

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Office Supplies Agencies should review their copier contracts before

ordering toner cartridges– Cartridges are included in the lease agreement, in most cases– Agencies should implement a recycling program for toner cartridges– Estimated savings of $95,000 per year

Agencies should set copiers to default to the 2-sided print setting

Agencies should print only the cover page and affected line items for all internal files on new contracts, modifications and renewals

OPS should review additional commodities to determine what items may be removed from the office supply master agreement– UK expects to save between $600,000 and $1.4 million annually

through a similar process

EO1/LOI/RFPRecap

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EO1 Process Changes Thresholds - changes for all types of requests

except those managed by FAC

Approvals- some types of requests will have other agency approvals before the EO1 document will go to final

Action status changes- some types of requests’ action status will automatically change to approved

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EO1- Type of Request

The type of request field will drive the rules for the process changes so it is imperative that agencies make the correct selection. This field has been changed to a pick list instead of a drop down list.

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EO1s = > $1000 No changes in process below

– Construction Services– Postal Services and Equipment *– Printing *– Real Property Leases– Vehicles *– IT Hardware, Software, Services, Maintenance,

Task Orders– ARRA- Federal Stimulus

* These types of requests will have a FAC office as the final approval. Upon approval, the action status changes to “Pending Review” and the EO1 will be placed on the agenda for the weekly meeting.

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EO1s >= $25,000EO1s >= $25,000 will follow the current

process – Memorandum of Agreement (MOAs)– Grant Agreements– University Agreements– Temp Labor Task Order (Non-IT)– Other Services, Non-Professional– Furniture– Equipment (Not IT)– Other Goods

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EO1s < $25,000 Each agency is responsible for reviewing & approving EO1s

< $25,000 – Memorandum of Agreement (MOAs)– Grant Agreements– University Agreements– Temp Labor Task Order (Non-IT)– Other Services, Non-Professional– Furniture– Equipment (Not IT)– Other Goods

The action status of EO1s < $25,000 will change to “Approved” upon final approval by the agency

The approved EO1 should be attached to the header of the initial procurement document

FAC will audit to ensure agencies are compliant

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Important ReminderThe approval of an EO1 means the items or services have been authorized to begin the procurement process. Agencies must procure these items or services according to procurement policies and procedures, administrative regulations, and statutes.

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PSC – Letter of Intent (LOI) Agencies shall use the EO1 document to file the LOI with

FAC Agency shall file a LOI with FAC for PSCs >= $10,000

– Select “Personal Service Contract” from “Type of Request” pick list to route to OPS

– Select “Architectural & Engineering PSC” from the “Type of Request” pick list to route to DECA

– LOI shall be submitted no less than Two (2) weeks prior to the intended RFP issue date

– LOI will be reviewed and final approval given by FAC Agency is responsible for all approvals on PSCs < $10,000

NOTE: The agency is still required to have the Cabinet Secretary or designated agency head sign off on the expenditure. An original, signed by the Cabinet Secretary or authorized agency head, must be maintained at the agency level, unless the agency head applies an electronic approval in eMARS. Records will be audited for compliance.

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(LOI) Purpose and Justification The “Purpose and Justification” field of LOI (EO1) must

contain the following:– Description of needed service– Brief explanation of why the service cannot reasonably be

provided by a state agency or state university– Estimate of planned amount of work involved– Estimate of contract cost per fiscal year-including

anticipated amendments– Agency contact person, if other than the requestor on the

document If additional space is required a Word document may be

attached to the header– Enter “Additional information attached at the Header” in the “Purpose

and Justification” field

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Request for Proposal (RFP) ALL RFPs for PSCs, regardless of the dollar

amount, shall be submitted to FAC for review prior to issuance

When appropriate, cost shall be the primary evaluation factor in the awarding the contract– Scoring criteria shall be communicated to the prospective

offerors in the RFP Procurement Type must be changed to:

– 17 Personal Service Contract• Will route to OPS for final approval

– 3 Architectural & Engineering• Will route to DECA for final approval

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Request for Proposal (RFP)

The RFP shall be submitted to FAC at least 7 days prior to the intended RFP “Let Date” (published date)

The agency shall enter the approved EO1/LOI Document Number in the Document Comments– DO NOT attach the EO1 to the RFP header

Upon approval by FAC the RFP will be posted to the Vendor Self Service (VSS) website

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Additional Info

More details on processes for EO1s, LOIs and RFPs, can be found in the presentations located:

http://finance.ky.gov/business/procurementservices/procurementhowto.htm

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Fixed Assets

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Physical Inventory is Underway Due Thursday, May 26, 2011 Print and use report from infoAdvantage – Fixed

Assets – Equipment (CAFR) Give the auditor’s office 10 days advance notice of

the date you plan to conduct the inventory Inventory procedures and Document Samples are on

the Office of the Controller Web site at:

http://finance.ky.gov/ourcabinet/caboff/OOC/inventorycontrol.htm

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Due by May 26Information due to the Office of the Controller

by May 26– Certification memo signed by the Property Officer

and Fiscal Officer– Fixed Assets – Equipment CAFR report printed

from infoAdvantage• Mark with F or M

– Document log showing all Fixed Asset documents processed during the inventory period

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SGI Vehicle Inventory Newly required fields within the Component Line for

vehicle FA’s– Surface Area – County code of vehicle assigned– Manufacturer – Make of the vehicle– Model Number – Model of the vehicle– Plat Number – Model Year of the vehicle– Serial Number – VIN number of the vehicle – Tag Number – License Plate Number on vehicle– Description Field Two – Gross Vehicle Weight– Description Field Three – Fuel Type of vehicle– Description Field Four – “Take Home” vehicle ?– Description Field Five – Class of vehicle determined by

insurance

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Component Line

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SGI Vehicle InventoryProperty Officers will be contacted by Kim

Moore, Office of the ControllerPlease DO NOT make any changes until

contacted by Kim Spreadsheets will be utilized to make

changes on existing eMARS documentsOnce changes are in place each agency will

be responsible for entering this information on future documents

Recent eMARS Issues

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Recent eMARS IssuesProduction delay - “Blinking” - VCUST

Sections Freezing– IE8 recommended browser– Still researching with CGI and COT

infoAdvantage data not updated 3/8/2011– Error in nightly cycle– Data corrected the following evening

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Recent eMARS Issues ePAY

– Unavailable on 3/11/11 12:00 am until 12:30 pm• Problem with connection between ePAY Gateway server and FIS

(ePAY merchant services provider)– Unavailable 8:20 pm (3/15) until 10:20 am (3/16) for

agencies outside state network/firewall• Firewall issues

infoAdvantage – “An error occurred while trying to locate infoAdvantage Portal….”– Resulted from time change– Clear Cache - Instructions for IE8 and IE7 can be found

on the eMARS News and Alerts Pagehttp://mars.ky.gov/alerts/marsnewsalerts.htm– Contact CRC if you still have issues

KHRIS Data

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KHRIS infoAdvantage Data New Class (folder) within PER Universe (Personnel)

– Sub-classes include• KHRIS Personnel Data• KHRIS Payroll Data• KHRIS Position Data• KHRIS Personnel Data Archive

Data Fields have been modified to match KHRIS data structure

Class scheduled for March 24, 1:00pm at KYTC Auditorium– Contact your Training Team Lead (TTL) for registration

• Registration is limited to those who have access to personnel data

eMARS 3.9 Upgrade Update

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3.9 Upgrade Update3.9 Training going on currently3.9 Beta software to be installed in mid-April3.9 Beta Testing will begin late-April through

mid-June3.9 Kentucky “Shakedown” testing will begin

after year-end close outAnticipated Go-Live April 2012

The New Face of eMARS

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Logging In

•Larger Font

•No overlap of text and picture

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Basic Navigation

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New “Archetypes”

•More contrast in text

•New color scheme

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Navigation Bar

•Bigger Font

•More contrast

•Highlight for active bar

•Collapsible!

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Navigation Icons

•Icons (and text) instead of text only

•New “About” link

•“Jump to” feature

•Must know full Page Code

•Pick List available

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Document Navigation

•Document Title Bar

•Key Information

•Quick Links

•Document Navigator

•Sections of the document only

•Collapsible!

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Accordions

•Maximized – only see current section

•Best for data entry

•Expanded – current section expanded, others collapsed

•Good for reviewing

•Collapsed – all section on one line (below)

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Tab View vs. List View

•Tab view vs. List view

•Tab View avoids scrolling vertically

•List View still provided “classic” view

•Documents default the Tab View

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Document Navigation - Buttons•Display buttons will vary based on:

•Status – Is the document in “Edit” mode?

•Location – What section are you working?

•Show Details setting – Is there one line or many?

•Buttons are carefully placed:

•Section-specific Buttons

•Document Buttons – always in view

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Federal Management ServiceFMS

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Financial Management Service (FMS)Reciprocity agreement between

Commonwealth and U.S. Treasury– U.S. Treasury (Financial Management Service)

will intercept federal payments if vendor owes funds to Commonwealth

– Commonwealth will intercept state payments where vendor owes funds to the U.S. Treasury

– Only payments currently eligible for intercept will be subject to intercept by U.S. Treasury

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Federal Reciprocity Program Overview

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TOP

State Payments (SADO)§ Vendor§ Tax Refunds§ All Other (as authorized

by state law & the reciprocal agreement)

Other State Debts (OS)Exceptions:§ Child Support§ Other Governments (state, local, foreign)

State Income Tax Debts (ST)Federal

Non-Tax Debts

Federal Payment Offset

State Payment Offset

Federal Non-Tax Payments (TDO)

§ Vendor§ Travel§ Misc. Vendor

Debts

Payments

FMS: Financial Management Service(U.S. Treasury Department)

Commonwealth of Kentucky

Federal Reciprocity Program

KYDOR Collection System

eMARS Advantage Financial System

SADO: State Agency Disbursing Office

TOP (Treasury Offset Program) contains a centralized database of delinquent debts, including nontax debts owed to the United States

TDO: Treasury Disbursing Office

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Intercept Activity (INTA)FMS intercepts will show on the INTA table

and are searchable by check number

INTA table does not give details on FMS intercepts

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New eMARS TablesFour new tables were added to accommodate

the FMS functionality and provide details– Federal Vendor Intercept Activity (FEDACTV)– Federal Vendor Intercept Extract (FEDEXT)– Federal Vendor Intercept Header (FEDHDR)– Federal Vendor Intercept Match (FEDMTCH)

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FEDACTV Table Searchable by Check Number

FEDMTCH Table

Note Amount

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FEDMTCH Table Locate record by amount

Contact info located under Federal Debt InformationVendor receives reduced or voided check with information on check stub

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Program CollectionsCollected by Commonwealth

for Feds

Collected by Feds for Commonwealth

$247,413.36

$4,449,166.15

Miscellaneous Items

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General Depository Banking Contract

Farmer's Bank contract expires June 30, 2011 (will be extended as supplementary). JP Morgan Chase becomes primary depository bank July 1, 2011.

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eMARS Outage

eMARS, infoAdvantage, KBUD and FAS2 will be unavailable on Sunday, March 20, 2011 for necessary maintenance. Please note that ePAY and VSS are NOT included in this outage.

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2011 Closing Memo

The 2011 Fiscal Year Closing Memo has been posted

http://finance.ky.gov/internal/eMARS/

http://finance.ky.gov/ourcabinet/caboff/OOC/

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Agency ContactsVerify all agency contacts on the Agency

Contact Listing Update any contact using the Agency

Delegation & Contact Information Packet located @ http://finance.ky.gov/internal/eMARS/Agency+Contacts.htm

AIL to e-mail or fax updates to the Customer Resource Center

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Why complete a Vendor Performance Evaluation (PE)?

To document a Vendor’s performance at meeting their contractual obligations

To provide a basis for consideration for the award of future Contracts

To provide justification to discontinue contract or to exclude consideration on future Contracts– Documentation to backup poor performance is

very important

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Completing the PE Criteria is based on a ranking system

– Enter any specific information in the Notes section to support the rank entered in the Criteria section

• The Notes section can be used to record specific comments or anecdotal information supporting your evaluation/assessment

• Holds up too 1500 characters of information per Note• Supporting documentation on evaluations are especially

important for Unsatisfactory or Poor rankings Supporting documentation may be attached to the

document Users may need to be set up on the Vendor

Performance Evaluator (PEEVALR) table in order to complete a PE– Contract Buyers are able to set users up on this table

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Important ReminderDO NOT remove assembled documents from solicitations. All assembled documents should remain attached for historical purposes. In addition removing the assembled items will cause problems with other attachments in the Vendor Self Service (VSS) system.

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eMARS TrainingeMARS Training has been on a long hiatus

– Recent hardware migration– CRC staff involved with 3.9 Upgrade

Training to be scheduled in AprilLook for the eMARS Training Schedule to be posted on the eMARS Website:http://finance.ky.gov/internal/eMARS/

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CRC AvailabilityAll CRC Staff is involved in the 3.9 Upgrade

ProjectPhone coverage may be slim at timesBrief closures may be needed for meetingseMail Finance.CRC@ky.gov when possible

Thank you for your patience

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Questions ?