PUBLIC PURCHASING IN FLORIDA

PURCHASING MANAGEMENT
(REV. 09/07/05)

PURCHASING MANAGEMENT
MISSION LEADERSHIP VENDOR & CUSTOMER RELATIONS PERFORMANCE STANDARDS & MEASUREMENT ADDING VALUE PROFESSIONAL DEVELOPMENT FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS INTERNET RESOURCES

PURCHASING MANAGEMENT

MISSION LEADERSHIP

MISSION LEADERSHIP
Mission Leadership is a program introduced to DMS by Secretary Bill Simon, and consultant McKinney Rogers International. Mission Leadership draws on a military model for its inspiration. It defines the mission of each level within an organization, and for that matter, for each individual.

MISSION LEADERSHIP
The mission of each level in an organization is to support the mission of the next level up. Each levels mission is set forth in a Mission Analysis document which contains five main parts.

MISSION ANALYSIS
1. MISSION STATEMENT (which itself has two parts)
MISSION WHAT and WHY: What is your mission. Why is the mission of the level ABOVE.

2. GOALS (measures): Objectives and dates (SMART acronym).

MISSION ANALYSIS

3. STRATEGIC INTENT
One Level Up Two Levels Up Your part in the plan (I commit to ..)

MISSION ANALYSIS
4. TASKS: A four-column table showing
Specified tasks Implied tasks Resources Time (date to accomplish)

MISSION ANALYSIS

5. FREEDOMS & CONSTRAINTS

Freedoms (things that help you accomplish your mission) Constraints (things that impede)

MISSION STATEMENTS
SECRETARY OF DMS
To provide effective program support to all state agencies in order to deliver resource saving solutions to our customers.

MISSION STATEMENTS
DIRECTOR OF STATE PURCHASING
To gladly deliver useful and innovative purchasing services in order to provide effective program support to all state agencies.

MISSION STATEMENTS
CHIEF PURCHASING OPERATIONS OFFICER
To deliver effective operational support to state agency purchasing personnel in order to deliver useful and innovative purchasing services.

MISSION ANALYSIS
Each of the preceding mission analyses includes goals (measures) and dates by which they are to be accomplished, as well as specified and implied tasks along the way, and identification of the resources to accomplish them.

MISSION ANALYSIS
The value of Mission Analysis is to keep the focus on the desired outcome, and tailor the day-to-day activities in a conscious manner to accomplish the mission, instead of just working each issue which pops up, with whatever time and other resources it seems to require.

PURCHASING MANAGEMENT

VENDOR & CUSTOMER RELATIONS

VENDOR & CUSTOMER RELATIONS Vendor Guides Purchasing Manuals Desk Procedures Customer Surveys

VENDOR GUIDES
PURPOSE: A concise reference to assist vendors wanting to know what the agency buys, who to contact for marketing, and what the buying and selling procedures are.

VENDOR GUIDES SHOULD INCLUDE

1. The size, organization and purpose of the agency. 2. A summary of items and services typically purchased. 3. Purchasing and related procedures. 4. Contact information, including web site(s), telephone numbers and email addresses.

Table of Contents, Fla. DHSMV at www.hsmv.state.fl.us/purchasing

1. 2. 3. 4. 5. 6. AGENCY PROFILE OFFICES OF PURCHASING AND LEASING GUIDING PRINCIPLES PURCHASING ACTIVITY PURCHASE METHODS MINORITY BUSINESS ENTERPRISE UTILIZATION 7. LEGAL AND ETHICAL REQUIREMENTS 8. VENDOR REGISTRATION 9. MARKETING APPROACH 10.BID INFORMATION 11.SPECIAL PROBLEMS 12.DIRECTORY

VENDOR & CUSTOMER RELATIONS

PURCHASING MANUALS

PURCHASING MANUALS
PURPOSE: A policy & procedures reference to assist INTERNAL customers wanting to know how to buy their requirements, how to resolve problems with vendors, what the governing laws, rules and policies require, where to find necessary forms and information, who to contact for purchasing assistance, and timelines.

SUGGESTED TABLE OF CONTENTS

Purpose Authority Standards of Conduct Definitions Requirements of Law, Rule & Policy, including Procurement Methods General Process Special Processes Problem Resolution Contact Information

VENDOR & CUSTOMER RELATIONS

DESK PROCEDURES

DESK PROCEDURES
PURPOSE: A procedures reference guide to assist purchasing personnel in processing requisitions, understanding and applying various procurement methods, analyzing and planning for purchasing success, and problem resolution.

DESK PROCEDURES
Mission Office organization & workflow Evaluating a requisition for clarity, completeness, justification & authority How to handle various deficiencies

DESK PROCEDURES
Selecting contracting options, including standalone process or order consolidation Data gathering and analysis Choice of procurement method Composition of the solicitation Purchase Order Issuance Record keeping

DESK PROCEDURES
Problem resolution  Customer Issues: Adding value, and marketing problem resolution  Vendor performance  Change orders  Addenda to solicitations  Receipt of bids  Public Records requests  Protests

VENDOR & CUSTOMER RELATIONS

CUSTOMER SURVEYS

CUSTOMER SURVEYS

TWO PURPOSES
 Find ways to improve  Educate the customer

A GENERAL SURVEY FOR YOUR WEB SITE

1. Service issue (perhaps drop down) & date 2. Were you treated in a professional & courteous manner by staff? 3. Was response timely? 4. Was your transaction processed accurately & in accordance with law & rule? 5. Rate overall satisfaction with your experience (provide a scale). 6. Please provide any additional comments.

CUSTOMER SURVEYS
From DMS State Term Contracts: Rating the Contractor, 1-5 scale  Performance to specifications  Delivery  Invoicing  Customer Service

CUSTOMER SURVEYS
Rating the Division of State Purchasing, 1-5 scale
   
Pricing Ease of use Product selection & quality Customer Service

Comment box Do you want to be contacted?

PURCHASING MANAGEMENT

PERFORMANCE STANDARDS & MEASUREMENT

PERFORMANCE STANDARDS & MEASUREMENT

WHY DO THIS?

PERFORMANCE STANDARDS & MEASUREMENT

EXAMPLES FINANCIAL MEASURES STATE OBJECTIVES MEASURES CUSTOMER SERVICE MEASURES PROFESSIONAL DEVELOPMENT MEASURES ISSUES & INITIATIVES

PERFORMANCE STANDARDS & MEASUREMENT

1. 2. 3. 4. ANOTHER VIEW: DEFINE & MEASURE EFFECTIVENESS EFFICIENCY ECONOMY MISSION DELIVERY

FINANCIAL MEASURES
Savings achieved, dollars and percentages (economy) Cost of the purchasing operation as a % of contract values (efficiency) Return on investment (efficiency) Percentage of spend on centrally awarded contracts (effectiveness) Cost as a % of agency budget (efficiency) Centralized vs. Decentralized transactions (efficiency & effectiveness)

STATE OBJECTIVES MEASURES (effectiveness)

1. Equity in Contracting

2. 3. 4. 5.

Environmental Considerations Certification of Drug-Free Workplace RESPECT PRIDE Examples of measurement: % of contracts contributing to each objective, % of contracts improved or declined vis--vis previous contract for each objective.

CUSTOMER SERVICE MEASURES (effectiveness)

For example, number and percentage of customer survey results reflecting a satisfactory to excellent rating.

PROFESSIONAL DEVELOPMENT MEASURES (effectiveness)

 For example, number and percentage of staff who have attained professional certification.  In Florida now, can include UPPCC and State certifications.

ISSUES & INITIATIVES (mission delivery)

For example, a list of accomplishments and challenges addressed during the reporting period. Can include status on a major negotiation or process improvement. Can also be in the area of one of the 3 Es.

PURCHASING MANAGEMENT

ADDING VALUE

ADDING VALUE

WHAT IS VALUE?

WHAT IS VALUE?
SERVICE LEVEL TIMELINESS EFFECTIVE DELIVERY FINANCIAL LEVEL (Purchases & Processes) COST REDUCTION COST AVOIDANCE REVENUE PROCESS LEVEL LEGALITY ETHICS PROFESSIONALISM STAFF LEVEL ADVICE, PLANNING, EDUCATION & PROCEDURES

ADDING VALUE THROUGH PROCESS CHANGES

TWO WAYS TO CONSIDER THIS OPPORTUNITIES TO RE-ENGINEER, ADDING PROCESSES, STEPS AND HANDLING WHERE VALUE CAN BE ADDED OPPORTUNITIES TO RE-ENGINEER, DROPPING PROCESSES, STEPS, AND HANDLING WHERE NO VALUE IS ADDED

ADDING VALUE
CONSIDER PROCESSES: WHAT OPPORTUNITIES MAY BE MISSED BY PRESENT PROCESSES? ARE COSTS MANAGED? IS PERFORMANCE MANAGED? IS MISSION ACCOMPLISHED? DO ALL STEPS, PARTICIPANTS, APPROVALS, ETC. CONTRIBUTE TO ONE OF THE VALUES?

ADDING VALUE

EVERYTHING MAY BE JUST THE WAY YOU WERE TAUGHT BUT

ADDING VALUE

THERE IS NOTHING PUT IN PLACE BY HUMAN BEINGS THAT CAN NEVER BE IMPROVED, OR REPLACED BY SOMETHING BETTER. IS THERE?

ADDING VALUE
REVIEW YOUR MISSION & YOUR MEASURES CONSIDER WHAT ACCOMPLISHMENTS WOULD REALIZE THEM CONSIDER THE PROCESSES AND INPUTS NEEDED, AND COST VS. VALUE ADDED OF EACH INPUT & PROCESS DELETE OR REPLACE THE REST

PURCHASING MANAGEMENT

PROFESSIONAL DEVELOPMENT

PROFESSIONAL DEVELOPMENT
Inspector General Derry Harpers Report Road Map to Excellence in Contracting, June, 2003, recommended a statewide training initiative led by DMS be undertaken using the foundation developed in some agencies.

PROFESSIONAL DEVELOPMENT
The Report noted that The National Institute of Governmental Purchasing, Inc. offers several certification programs for procurement professionals (Certified Professional Public Buyer and Certified Public Purchasing Officer).

PROFESSIONAL DEVELOPMENT
State Purchasing has contracted with NIGP to offer both NIGP and Florida courses.

PROFESSIONAL DEVELOPMENT
NIGP COURSES 1. Sourcing in the Public Sector 2. Planning, Scheduling & Requirement Analysis 3. Developing and Managing RFP's 4. Legal Aspects of Purchasing 5. Negotiation Strategies 6. Contract Administration

PROFESSIONAL DEVELOPMENT
NIGP REVIEW CLASSES 7. CPPO Review Class 4/7-8/05 8. CPPB Review Class

PROFESSIONAL DEVELOPMENT
DIVISION OF STATE PURCHSAING
1. Public Purchasing in Florida 2. Negotiation in Florida 3. Contract Management in Florida

PROFESSIONAL DEVELOPMENT
NIGP has 13 local chapters in Florida Tallahassee has a very active chapter, with about 200 members The Tallahassee chapter sponsors luncheon meetings the second Tuesday of every month at the Tallahassee Leon County Civic Center

PROFESSIONAL DEVELOPMENT
Membership applications for the Tallahassee Chapter of NIGP are available from the instructor at the conclusion of the class, or online at the Chapter website, www.tallynigp.org Information on other chapters is available on line at http://www.nigp.org/member_services/Cha pters.htm Information on the Florida Association of Public Purchasing Officers is available on line at http://www.fappo.org

PURCHASING MANAGEMENT

FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS

FLORIDA CERTIFICATIONS FOR PURCHASING AGENTS

Florida Certified Florida Certified Manager Florida Certified Manager Florida Certified Purchasing Agent Purchasing Contract Negotiator

FLORIDA CERTIFIED PURCHASING AGENT

This designation requires CPPB or CPPO certification Completion of the Public Purchasing in Florida seminar A minimum of twelve (12) months experience in a full time purchasing position for the State of Florida or one of its political subdivisions.

FLORIDA CERTIFIED PURCHASING MANAGER

This designation requires CPPB or CPPO certification Completion of the Public Purchasing in Florida seminar A minimum of three years experience in a full time purchasing position for the State of Florida or one of its political subdivisions, of which at least one year must be in a Florida public purchasing management position.

FLORIDA CERTIFIED CONTRACT MANAGER

This designation requires A certificate of completion of the NIGP Contract Management or Contract Administration seminar A certificate of completion of the Contract Management in Florida seminar A minimum of either twelve (12) months experience in a full time purchasing position for the State of Florida or one of its political subdivisions, or twelve months cumulative experience managing one or more contracts for a Florida state agency or political subdivision.

FLORIDA CERTIFIED NEGOTIATOR

This designation requires Certificates of completion of the NIGP General Public Procurement or Sourcing in the Public Sector seminars And the NIGP Negotiation Strategies seminar A certificate of completion of the Negotiation in Florida seminar A minimum of twelve (12) months experience in a full time purchasing position for the State of Florida or one of its political subdivisions Leading a team through at least one procurement through negotiation.

PURCHASING MANAGEMENT

INTERNET RESOURCES

INTERNET RESOURCES
PROFESSIONAL ASSOCIATIONS  National Institute of Governmental Purchasing, www.nigp.org  Tallahassee Chapter, NIGP, www.tallynigp.org  National Association of State Purchasing Officers,

http://www.nssn.org/

PROFESSIONAL ASSOCIATIONS (cont.)

 Florida Association of Public Purchasing Officers, www.fappo.org  Institute of Supply Management, www.ism.ws  National Contract Management Association, http://www.ncmahq.org

INTERNET RESOURCES
MARKET INFORMATION
 Bureau of Labor Statistics, Producer Price Index http://www.bls.gov/ppi/#data  Bureau of Labor Statistics, Consumer Price Index http://www.bls.gov/cpi/  Dun&Bradstreet http://www.dnb.com/us/

INTERNET RESOURCES
MARKET INFORMATION  Purchasing Central http://www.purchasingcentral.com  Standard & Poors http://www.spglobal.com  State procurement websites at: http://www.nigp.org/stwebsit.htm Arizona, California, Connecticut, Massachusetts, Minnesota, Pennsylvania, Texas and Virginia are good candidates to start your search

INTERNET RESOURCES
MARKET INFORMATION

 GSAs website is located at http://www.gsa.gov/Portal/gsa/ep/chann elView.do?pageTypeId=8199&channelPa ge=%2Fep%2Fchannel%2FgsaOverview. jsp&channelId=-13263

INTERNET RESOURCES
STANDARDS & SPECIFICATIONS
 American National Standards Institute http://www.nssn.org/  ASTM International http://www.astm.org  See also NIGP tech specs at www.nigp.org

INTERNET RESOURCES
FLORIDA STATE WEBSITES
 Florida Administrative Code http://fac.dos.state.fl.us/  Florida Statutes http://www.flsenate.gov/statutes/index. cfm?Mode=ViewStatutes&Submenu=-1  Florida Dept. of Financial Services https://flair.dbf.state.fl.us/  Florida Division of Corporations http://www.sunbiz.org/

INTERNET RESOURCES
FLORIDA STATE WEBSITES
 Division of State Purchasing http://dms.myflorida.com/dms/purchasi ng  MyFloridaMarketPlace http://dms.myflorida.com/dms/purchasi ng/purchasing_quick_links/myfloridamar ketplace

INTERNET RESOURCES
FLORIDA STATE WEBSITES
 Office of Supplier Diversity http://dms.myflorida.com/dms/office_of _supplier_diversity_osd

INTERNET RESOURCES
DIRECTORIES
 Thomas Register http://www.thomasregister.com  Verizon Yellow Pages http://www.bigyellow.com/  AT&T Directories http://www.att.com/directory/

INTERNET RESOURCES
PUBLICATIONS & EDUCATIONAL SITES
 Purchasing Magazine http://www.manufacturing.net/pur/  Center for Advanced Purchasing Studies http://www.capsresearch.org