MyFloridaMarketPlace Roundtable February 19, 2003 9:00 a.m. – 11:00 a.m.
MyFloridaMarketPlace Roundtable September 3, 2003
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Transcript of MyFloridaMarketPlace Roundtable September 3, 2003
MyFloridaMarketPlace Roundtable
September 3, 2003
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda
Welcome / Overview of Today’s Session
FLAIR integration update
DMS Sourcing Lessons Learned
Strategic Sourcing
Resolution of Pending Issues / New Issues
Next Meeting Location / Time
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Welcome / Overview of Today’s Session
FLAIR integration update
DMS Sourcing Lessons Learned
Strategic Sourcing
Resolution of Pending Issues / New Issues
Next Meeting Location / Time
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda
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Welcome / Overview of Today’s Session
FLAIR integration update
DMS Sourcing Lessons Learned
Strategic Sourcing
Resolution of Pending Issues / New Issues
Next Meeting Location / Time
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda
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Event Owner
Aircraft Lease or finance purchase plan (ITN # 95-518-010-M) DMS
Adobe Software Products (ITB # 98-252-030-N Rebid) DMS
Real Estate Strategic Planning and Management (ITN # 1-973-700-M) DMS
Armored Car and Depository Banking Services DOT
Maintenance, Repair, & Operating (MRO) Supplies (ITB # 2-450-000-B) DMS
Boiler and Machinery Insurance (ITB # 94-477-450-D) DMS
A/C and Heating Equipment DOT
Office Consumables Lot A Phase II - eAuction (ITB # 80-618-001-E) DMS
Office Consumables Lot B Phase II - eAuction (ITB # 80-618-001-E) DMS
Installation of Fence along the South Florida Rail Corridor-D4 DOT
The Pilot Agencies conducted 10 sourcing events since the MyFloridaMarketPlace “go live” date on July 1, 2003.
Source: MyFloridaMarketPlace Sourcing Tool
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS Sourcing Lessons Learned
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS Sourcing Lessons Learned
DMS’ issues with sourcing can be grouped into two main issues:
• Access to bids: Vendor’s ability to view bids either because they were not registered at all, didn’t select ability to receive electronic solicitations, or didn’t select commodity codes
• Responding to bids: Knowing whether or not the vendor had responded to a bid before closing or if they were able to submit the proper attachments
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bidsDMS Sourcing Lessons Learned – Access to bids
Issue: • Public needs access to bids, and only registered vendors who
have selected sourcing and commodity codes within class of bid can access bid in MyFloridaMarketPlace
Short-term resolution: • Agency must advertise bids on VBS
– Print and scan bid as it appears in MyFloridaMarketPlace on VBS
– Don’t post PUR form on VBS if you don’t want paper bids
Long(er)-term resolution: • Considering design for public access to MyFloridaMarketPlace
once VBS goes away (must be registered for sourcing today)
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bidsDMS Sourcing Lessons Learned – Access to bids
Issue: • Vendors who registered before sourcing was added (6/15) were
unable to select ability to receive solicitations and therefore can’t view bids
Resolution: • An e-mail was sent to vendors to ask them to select sourcing
and their commodity codes on June 26, 2003 at 4:30 p.m.
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bidsDMS Sourcing Lessons Learned – Access to bids
Issue: • Vendors who registered before (7/1) who did not click refresh
after each class of commodity codes was selected is not registered for any or all commodity codes and therefore unable to view bids pertaining to that commodity code
Resolution: • Modification was made on 7/15 which no longer requires vendor
to click on refresh after each class of commodity codes• An e-mail will be sent to vendors (9/2) asking them to re-select
their commodity codes– E-mail notification to vendors will be sent staggered in
groups in order to ensure adequate Help Desk support• Vendor can view which commodity codes they have selected at
the end of registration on a summary page which can be accessed at any time
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Access to bidsDMS Sourcing Lessons Learned – Access to bids
Issue: • Can a vendors who registers after a solicitation is launched view the bid?
Resolution: • Vendor will be able to access solicitation once system is refreshed (may
take up to 24 hours but no longer than)– Vendor needs to select at least one commodity code with in the class
of codes for that solicitation– Vendor must also agree to receive solicitations
• Will receive e-mail notification if any updates are made to bid– Vendors will receive an update e-mail for each update you make
unless you disable the e-mail notification– If you are planning to make several updates, try to bundle updates to
minimize the number of e-mail notifications sent by the system (vendors might complain)
• Agency can add vendor to bid regardless whether they selected commodity code, but must have selected ability to receive solicitations
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Responding to bidsDMS Sourcing Lessons Learned – Responding to bids
Issue: • After a bid was closed, it only showed one vendor had replied
although six responses were received.
Short-term resolution: • Create permission for people who need access to bids• Another tab called “items” can allow anyone to view
Long(er)-term resolution:• Accenture and their engineers are working to fix this issue so
that all vendors who have submitted bids will be displayed on the Suppliers tab
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Short tem resolution for viewing all bids enteredShort tem resolution for viewing all bids enteredItems Tab Items Tab
Items -> Responses
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Short tem resolution for viewing all bids enteredShort tem resolution for viewing all bids enteredNew Proposals Tab New Proposals Tab
New Proposal -> View Responses
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned – Responding to bidsDMS Sourcing Lessons Learned – Responding to bids
Issue: • Sometimes a vendor can’t view when they’ve responded to a
bid right away because it could be in a “cache” (temporary holding area)
Short-term resolution: • Automatic cleaning of “cache” has been increased to every 10
minutes• Let Accenture know via the help desk when a bid is closing so
that they can provide adequate support (have someone standby when the bid is closing so that they can manually clear out the “cache” files on the server)
Long(er)-term resolution:• Accenture is continuing to monitor events for cache issues while
performing extensive testing and analysis to resolve issue
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS Sourcing Lessons Learned
Issue: • The bid was not configured to allow attachments in areas where
they had been requested. When the vendor tried to attach the bid, there was no spot for them to stick the attachment.
Resolution: • This issue will be addressed in the Sourcing Event tool kit. The
Tool Kit will be distributed to the Agency liaisons when completed.
• The limitation on the uploaded file is 20 MB per attachment
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS Sourcing Lessons Learned
Issue: • What happens when a bid is not awarded to anyone at all?
Resolution: • System will not let you close a bid (it is pending selection until it
is awarded). Agency must contact Accenture via the help desk to close a bid.
• Alternatively, include in your comments why the bid was not awarded.
• Accenture will work with DMS to close a market with Buyer permission only.
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MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons Learned - SummaryDMS Sourcing Lessons Learned - Summary
• Develop a list of targeted vendors for each bid and send out an e-mail prior to the bid opening to remind them to: – To confirm that they have registered and are able to logon– To confirm that they have selected the ability to receive solicitations and
the proper commodity codes.
• Standard bid templates exist, standard language to be developed– The Sourcing Event Tool Kit will provide recommended timeline to
include mock training events for vendors. In addition the Tool Kit will include a reminder to configure bid to allow attachments in all areas where they had been requested and to notifying Accenture when bid is to open and close
– Agencies will have ability to edit everything, including General Conditions, and add technical specs
• Advise vendors to get their bids in early – don’t wait until the last minute– They have the ability to change without the Agency seeing what they’ve
changed until the bid is closed
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Several resources are available to help vendors and buyers successfully use the MyFloridaMarketPlace Sourcing Tool.
Service Description Location
Vendor Training On-Demand web-based, interactive training application for Vendors to learn how to respond to an event using the MyFloridaMarketPlace sourcing tool
https://marketplace.myflorida.com/vendor/vendor_training.htm
Agency Training Session
1.5 days of Buyer training before they come onboard
Please contact your Buyer Adoption liaison for the schedule
Communication Tool Kit
Tools for Agencies to communicate with their employees on various aspects of the initiative
http://marketplace.myflorida.com/toolkit/toolkit.htm
Sourcing Events Services
Help with specific questions regarding the tool functionalities and how to set-up and load events in the MyFloridaMarketPlace tool
MyFloridaMarketPlace Help Desk @ (866) 352-3776Sourcing Event tool kit will be available on MyFloridaMarketPlace to help Purchasing Analyst conduct the event correctly.
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable DMS Sourcing Lessons LearnedDMS Sourcing Lessons Learned
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Welcome / Overview of Today’s Session
FLAIR integration update
DMS Sourcing Lessons Learned
Strategic Sourcing
Resolution of Pending Issues / New Issues
Next Meeting Location / Time
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda
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MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Current StatusStrategic Sourcing – Current Status
The first three categories involved in Strategic Sourcing are in various stages of the sourcing process. New State Term Contracts (STCs) are expected to be effective in the October / December 2003 timeframe.
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Implement AgreementsAssess
Opportunities
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Kick-Off &
Profile Internally
& Externally
Develop Strategy
Develop Selection Factors &
Screen Vendors
Conduct Competitive
Event
Prepare Value
Proposition & Award
Implement Agreements
Kick-Off & Assess
Opportunities
- Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Implement AgreementsAssess
Opportunities
Profile Internally & Externally
Develop Strategy
Screen Suppliers &
Selection Factors
Conduct Auctions &
Shape & Negotiate
Value Propositions
Kick-Off &
Profile Internally
& Externally
Develop Strategy
Develop Selection Factors &
Screen Vendors
Conduct Competitive
Event
Prepare Value
Proposition & Award
Implement Agreements
Kick-Off & Assess
Opportunities
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Office Cons.
• DMS Lead – Tom Butler• Sourcing Event – Auction • Target STC Date – Oct. 2003
MROSupplies
• DMS Lead – David Comer• Sourcing Event – ITB (RFQ) • Target STC Date – Oct. 2003
Printing• DMS Lead – Charles Day• Sourcing Event – RFP • Target STC Date – Dec. 2003
Office Consumables
Printing Services
MRO Supplies
Definition: Strategic Sourcing is a proactive process to leverage demand and select vendors that offer the best value, to achieve savings.
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Major Types of Reverse Auctions
Type DescriptionEffect on
Time
Visible Price
Price is know by the all the participants but the identity of the other bidders is unknown
Time constrained (minutes-hours)
Ranked Bidder
Price is not shown to the bidders. Instead they are only aware of where they are in order relation to the “winner”
Time constrained (minutes-hours)
MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction OverviewStrategic Sourcing – Reverse Auction Overview
There are several different varieties of auctions, with a key differentiator being the way in which information is revealed around price between the bidders.
Reverse Auction
Bid
Price
Time
In reverse auctions, prices decrease over time.
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Phase 1Pre-
Qualification*
• Posted Phase 1 ITB instructions on VBS• Used Intent to Participate form• Contained various critical and information only questions, potential market
basket items, geographical capability• Q&A for 95 questions (VBS posting of answers)
Phase 2Reverse Auction
(2 Stages)
• 17 vendors pre-qualified from Phase 1• Conducted within MyFloridaMarketPlace Sourcing Tool**• Provided Phase 2 ITB instructions, SLAs, general conditions, forms• Offline bidder pricing tool provided to bidders• Preview period of 2 weeks to allow bidders to download documents and price
items• 35 questions were submitted via the Q&A board• Official answers posted on Sourcing tool as addendum• Optional bidder training sessions and mock reverse auction events provided
to help vendors learn how to use Sourcing tool• After close of Reverse Auction event, second stage within Sourcing required
bidders to upload final detailed item pricing to support final bid price entered in the live auction
* MyFloridaMarketPlace Tool was not yet live
** See Appendix for summary of Reverse Auction parameters used for Office Consumables Paper and Non-Printed Envelopes Lot (Lot B)
MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Office Consumables EventStrategic Sourcing – Office Consumables Event
DMS recently leveraged the MyFloridaMarketPlace Sourcing tool and a two-phase process to establish a new State Term Contract for Office Consumables.
23Note: Bidders names excluded until award finalized.Source: MyFloridaMarketPlace Sourcing Tool.
MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ResultsStrategic Sourcing – Reverse Auction Results
Eleven vendors entered a combined 232 bids over the 132 minutes duration of the Office Supplies & Toner Cartridges event.
24Note: Bidders names excluded until award finalizedSource: MyFloridaMarketPlace Sourcing Tool
MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ResultsStrategic Sourcing – Reverse Auction Results
For the Paper and Non-Printed Envelopes event, 106 bids were entered by 9 vendors over 74 minutes time period.
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Summary
Lot A – Office Supplies & Toner Cartridges
Lot B – Paper & Non-Printed
Envelopes
Spend Base Line (3-Year Value) $51.5MM $8.7MM
# of Vendors Invited / Participated 15 / 11 (73%) 16 / 9 (56%)
Initial vs. Extended Duration 0:45hr / 2:12hr 0:45hr / 1:14hr
# of Bids 232 106
Spreadsheet Training 34 People
Practice / Mock Auction Training 28 People
Potential 3-Year Savings $ $16.8MM $1.5MM
Potential 3-Year Savings % 33% 17%
Note: MM = Million
The Office Consumables reverse auction generated identified savings of $18.3 million.
MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ResultsStrategic Sourcing – Reverse Auction Results
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MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ResultsStrategic Sourcing – Reverse Auction Results
Looking at ten commonly ordered Office Consumables items provides specific examples of the savings generated for Agencies.
Product Manufacturer
Product ID Product Description UOMHistorical Wt. Avg.
Price
New Price
% Savings
Generic Copy Paper N/A White Copy Paper, 8 1/2" x 11", 20 Lb., 84 Brightness, Case Of 10 Reams
Case $21.57 $19.50 10%
HEWLETT PACKARD HEW51645A INKCART,DJ750C/1600C,BK Each $27.30 $23.03 16%
UNIVERSAL PRODUCTS UNV20630 PAD,LGL RULD,PERF,LTR,WE Dozen $6.37 $3.90 39%
3M MMM8103412 TAPE,MAGIC 3/4X1296 Roll $1.59 $0.58 64%
SMEAD MANUFACTURING CO.
SMD28040 FOLDER,ENDTAB,LGL,BE50BX Box $16.42 $8.29 50%
AT-A-GLANCE AAGSK2400 CALENDAR,DSK PD/WALL,BK Each $2.41 $1.57 35%
PILOT CORP. OF AMERICA
PIL31020 PEN,RBALL,RT,G2,GEL,FN,BK Each $1.10 $0.61 45%
TEXAS INSTRUMENTS TEXTI83PLUS CALCULATOR,GRAPHING Each $99.42 $80.36 19%
3M MMM654YW NOTE,POST-IT,3X3,1C/PD,YW Dozen $8.09 $2.36 71%
UNIVERSAL PRODUCTS UNV96920 BOOK,STENO,GREGG,80SH,WE Each $0.99 $0.49 51%
SANFORD INK COMPANY
SAN22420 PENCIL,EAGLE #2 Dozen $0.99 $0.34 66%
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TimePeriod
How Agencies on MyFloridaMarketPlace Order
How Agencies on SPURS Order
Before new STC is effective*
Non-Catalog Purchase from current STCs
As currently done (Purchase Order/P-Card) on current STC
After new STC is effective but before contract is enabled**
Non-Catalog Purchase from new STCs
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 Office Consumables State Term Contract is expected to be effective within 30 days and will have a 3-year term.
* New STC is estimated to be effective 10/1/2003; current STC will be terminated** New STC is estimated to be enabled by 11/1/2003
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Welcome / Overview of Today’s Session
FLAIR integration update
DMS Sourcing Lessons Learned
Strategic Sourcing
Resolution of Pending Issues / New Issues
Next Meeting Location / Time
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda
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Welcome / Overview of Today’s Session
FLAIR integration update
DMS Sourcing Lessons Learned
Strategic Sourcing
Resolution of Pending Issues / New Issues
Next Meeting Location / Time
MyFloridaMarketPlace Roundtable MyFloridaMarketPlace Roundtable Session AgendaSession Agenda
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Next Meeting: Time / LocationNext Meeting: Time / Location
September 17th
9:00 a.m. – 11:00 a.m.
Carr Building, Room 170
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AppendixAppendix
Appendix
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Auction Parameters DefinitionOffice Consumables Lot B
Actual Parameters
Reverse Auction Type Visible Price or Ranked Bidder Ranked Bidder
Open Date and Time Date and time the auction will open and be available for bid 8/13/2003 – 10:00 AM (ET)
Close Date and Time Date and time the auction will CLOSE, and NO LONGER be available for bid
8/13/2003 – 10:45 AM (ET)
Opening Price The price at which this offering is listed at when the auction opens
Initial Bid Entered by Vendors prior to Opening of Event
Bid Decrement The minimum difference between the last accepted bid, and the next bid which will be accepted by the system from any bidder
$50,000
Bid Improvement Rule Specifies whether vendor’s bid must be lower than the overall best bid to be accepted or just their last submitted bid (by the minimum bid decrement or greater)
Must only improve on own last bid
Extension Allowed Indicates if the auction can be extended if bids are coming in Yes
Extension Interval The duration of the auction extension (if auction extensions are enabled) in minutes
5 minutes
Extension Limit The maximum total number of extensions which can be applied to an auction for any reason
No limit
Accept Proxy Bids Indicates if Host will allow users to set proxy bids No
MyFloridaMarketPlaceMyFloridaMarketPlaceStrategic Sourcing – Reverse Auction ParametersStrategic Sourcing – Reverse Auction Parameters
Reverse Auction set-up involves many decisions, including determining auction type, event duration, extensions and bid improvement parameters.