MyFloridaMarketPlace Contracts 101 Webinar

MyFloridaMarketPlace Contracts 101 Webinar

• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

Prerequisite Review

• Prerequisite: Requisitioning 101 Training

• Covered:

– MyFloridaMarketPlace procure-to-pay process

– Creating requisitions, invoices, and receipts

– Method of procurements, commodity codes, and object codes

– MFMP catalogs and non-catalog items

– Receiving commodities and approving services

Do you have any questions?

MyFloridaMarketPlace

• MyFloridaMarketPlace (MFMP) is the State of Florida’s eProcurement system and has been in operation since 2003

• The system is a source for centralized procurement activities; streamlining interactions between vendors and state government entities and providing tools to support innovative procurement for the State of Florida

MyFloridaMarketPlace provides:

• Centralized procurement data for state and agency departmental purchasing

• Web-based, paperless application with 24/7 access

• All applications have a similar look and feel

• Electronic quoting features

• Reduced error rates

• Faster order processing time

• Electronic, automated approval flows

• Storage of all content related to the transaction in one place

Benefits of Using MFMP

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Upon completion of this training, you will be able to:

• Understand when and how to create an MFMP contract

• Identify the difference between the legal contract, the MFMP contract and the contract in Florida Accountability ContractTracking System (FACTS)

• Create a MFMP contract release and a contract-based invoice

• Discuss the differences between supplier, commodity, and item level contracts

Key Learning Objectives

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• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

Contract Overview

Legal Contract

Contract in FACTSMFMP Contract

Legal Contracts

Agreements where two parties agree on standard terms and conditions pursuant to applicable laws, for example a state term contract between a vendor and the State of Florida.

Contract Overview

Legal Contract

MFMP Contract Contract in FACTS

Contracts in FACTS

FACTS provides transparency for all two-party agreements such as, contracts and grant awards. Agency customers may also view release/purchase order (PO) information that is tied to contracts in MFMP.

Contract Overview

Legal Contract

MFMP Contract Contract in FACTS

MFMP Contracts

Operational documents that support the legal contracts between vendors and the State of Florida. In MFMP, contracts facilitate the operational procure-to-pay processes, which allows customers to track and manage their two-party agreements.

Things to know:

• Ability to track contract spend

• Define the scope of a purchase

• Manage blanket purchase orders (BPO)

• Document multi-year agreements

• MFMP only routes the contract release to the vendor for release required contracts

• MFMP contracts do not auto-encumber

‒ Funds should be encumbered in the Florida Accounting Information Resource system (FLAIR), then recorded on the MFMP contract request (CR)

MFMP Contracts

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An MFMP contract can be used to facilitate:

• Agency Term Contracts: Agreements between an agency and a vendor

• Interagency Contracts: Agreements between agencies

• Alternate Contract Sources: Federal, state or local government contracts that have been deemed by the Department of Management Services (DMS) as cost-effective

• State Term Contracts: Used by DMS, State Purchasing to track state term contracts

MFMP Contracts

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• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

Contact is the person who:

• Owns and manages the contract in MFMP

‒ Note: If someone other than the owner of the contract enters the data into MFMP, they are considered the Preparer

• Approves service invoices

• Attaches documentation required by Department of Financial Services

Agency Role

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What is an MFMP contract request?

The initial contract information a customer populates in MFMP about the contract. Agencies use the contract request (CR) function to establish and approve the contract (C) in MFMP similar to the way you would use a requisition to establish a PO.

MFMP Contract Request

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Allows any order of goods/services from a specific supplier. Select when the contract has a high-level description of products. Example: General maintenance BPO

Allows orders of goods/services by commodity code from a supplier. Select when the contract has similar commodity types. Example: Pharmaceuticals

Choosing the Contract Level

Allows orders of only specific goods/services from a supplier. Select when the contract line items are well-defined. Example: Auto parts or printer leases

Item

Commodity

Supplier

MFMP offers three different contract levels (item, commodity, and supplier). Here are some general guidelines on how to choose the appropriate level.

Things to know:

There are several considerations to keep in mind when deciding which contract level to use. Before selecting a level ask the following questions:

✓ How many items are on the contract?

✓ Are the items specific and well-defined?

✓ Does each item have a fixed unit price or rate?

MFMP Contract Level

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What is an MFMP contract release?

A release is a request to “release” funds against an MFMP contract. Releases are similar to POs in that customers will need to create a requisition that is tied to a contract; the release is often referred to as a PO.

Note: In order for funds to be released from a contract, the MFMP contract number must be tied to the requisition.

MFMP Contract Releases

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Release Required

• Allows direct invoicing from the contract without requiring a specific release

• Select No if releases are not necessary and they can be invoiced directly

• Requires authorized users on the MFMP contract to create releases for all purchases

• Select Yes if the vendor requires a release for each purchase

VSRelease Required No Release Required

To release funds from a contract, MFMP gives agencies two contract options.

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Create a Contract Request

In the Common Action section, select the Contract Request link

Contract Request Pages

1. Definitions – Defines the contract

2. Limits – Sets limits to the contract

3. Pricing Terms – Allows for specific information for the contracted goods and/or services

4. Access Control – Allows control of who has access to the contract such as, making an edit or creating a release

5. Appendixes – Allows customers to upload any supporting documentation for the contract

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Definitions Page

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• Title: Enter the title

• Method of Procurement (MOP): Select the applicable MOP. Click here to learn more

• Form of Contract: Select the contract form (e.g., agency term)

• Contract ID: Enter an agency-specific ID (if applicable)

• Contract Type: Select the general type of contractual good or service

• Effective/Expiration Dates: Enter the contract’s start and end dates

• Supplier/Vendor Location: Select the location for the contracted supplier

• Release Required: Select Yes or No

Limits Page

• Minimum Commitment: Enter the minimum amount the agency will spend for the entire contract

• Maximum Limit: Enter the maximum amount the agency will spend for the entire contract

• Item Limits: Set line item limits by amount or quantity

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Limits Page

• Release Limits: Set a minimum and/or maximum allowance per release. This field only applies to release required contracts

• Additional Approvers List: Add additional approvers for releases that do not meet the established release limits

• Expiration Date Notification: Select to notify the Contact and additional authorized customers that the contract expiration date is approaching

• Notification List: Send notifications to additional users when the contract does not meet these specified limits

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What should you do?

You need to enter a two-party agreement in MFMP that will allow you to create a release every time

you need to make a purchase.What should you do?

A: Create a contract request and select No in the Release Required field.

B: Create a contract request and select Yes in the Release Required field.

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Things to know:

• The Pricing Terms page tracks the terms agreed upon in the two party agreement

• The agency establishes the contract’s accounting details such as, the encumbrance number and split accounting (if applicable)

• The options on the Pricing Terms page differ based on the MFMP contract level selected (supplier, commodity, or item) on the Definitions page

• To learn more, see the MFMP Buyer Manual

Pricing Terms

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Item Level Pricing

For item level contracts, pricing terms will populate based on the selection of Release Required Yes orNo on the Definitions page. Below is an example of a release required contract request.

• Item level contracts require that you add line items for all goods/services detailed in the contract

• Click the Add Items button to create a line item

• Select the non-catalog link to continue

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Pricing Terms

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• Description: Enter the line item information such as, the full description, commodity code, and supplier part number

‒ Contract Encumbrance #: Enter the FLAIR encumbrance number

‒ Contract Encumbrance Line #: Enter the FLAIR encumbrance line number

• Limits: Set a minimum/maximum limit for the specific line item

• Pricing and Discounts: Set a discount percentage type for the specific line item (if applicable)

‒ Tiered Pricing: Set and define multiple discount rates

‒ Term Based Pricing: Set and define a specific start date and percentage discount

Pricing Terms Accounting Details

• Key accounting fields to focus on are the following:

‒ Organization Code: Enter the applicable organization code

‒ Expansion Opt: Enter the applicable expansion option

‒ Object Code: Enter the applicable object code. Click here to learn more

‒ Contract: Enter the FACTS contract number. Click here to learn more

• See the MFMP Buyer Manual, to learn more about the Accounting section

• Note: Entering the accounting details is not required; however, if the details are entered on the CR, the information will populate on subsequent releases and/or invoices

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Item Level Pricing

• To add additional line items, click the Add items button

• Once you have completed adding your line items, click the yellow Next button to continue

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Access Control Page

On the Access Control page, the Contact/Preparer can specify which customers are authorized to edit and/or create releases against the contract.

• Edit Access: Select the customers that have the authorization to make changes to the contract. The Contact automatically has edit access

• Release Access: Select the customers who are authorized to create releases and/or invoices against the contract. Customers can be selected by name, role, supervisor, or entity

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Appendixes Page

• Use the Appendixes page to upload all contract-related documentation

• Each attachment has a 4 MB limit

• Upload common file types such as Excel, Word, or PDF

• Click on Add Appendix to upload the document(s)

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What should you do?

You created a release for a contract and you are waiting to

receive the invoice; however, you are about to go on vacation.

What should you do?

A: Create an invoice for the total amount of the release, before you leave for vacation.

B: Give an authorized co-worker release access.

C: Go on vacation, and create the invoice when you return.

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Summary Page

• Summary page/tab provides a view of the information entered on CR pages 1 – 5

‒ Scroll down to the bottom of the Summary tab to add applicable comments

• Pricing Terms tab provides a view of the pricing terms on page 3 such as, the selected commodity codes or line items

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Approval Flow

• Contract approval flows differ from standard requisition approval flows

• A CR requires a Contract Manager’s approval to become an active contract

‒ Agency customers should confirm that the necessary approvers are listed in the approval flow

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Contract Manager is the person who:

• Confirms that there is purchasing authority to create the contract

• Reviews the contract to confirm it is set up correctly to support the two-party agreement

• Verifies information such as the contract effective date, pricing terms, and accounting details

• Approves the MFMP contract

Agency Role

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Changing a Contract

• There may be situations where a contract needs to updated; for example, changes to the accounting information or to the two-party agreement

• Once a contract is fully approved the following fields are no longer editable:

Contract Fields Pricing Term Fields

MFMP Contract Type Description

Release Required Commodity Code

Currency Supplier Part Number

Supplier Auxiliary Part ID

Unit of Measure

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Changing a Contract

To make a change to a contract, open the CR and click the Change button.

Once the change is approved, the contract number will contain a “V” and the version number.

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Demonstration

1. MFMP Overview

2. Contracts Overview

3. Creating Contracts

4. Creating Contract Releases

5. Creating Contract Invoices

6. Vendor Performance Tracking (VPT)

7. Resources

I will now demonstrate how to create, approve, and change a contract in the

MFMP Buyer Training Environment.

• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

Creating Releases

• Release required contracts require the customer to create a release for every purchase. To begin the process:

- Create a requisition on the Home Dashboard

- Enter the MFMP contract number in the Contract box; or

- Select the drop-down arrow and click Search for more

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If you are unable find the desired contract, you may not be an authorized user or the contract may not be set up as release required.

Creating Releases

• Select the appropriate line item by entering the quantity and clicking the Add to Cart button

• Click the Checkout button and follow the standard requisition creation process

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Demonstration

1. MFMP Overview

2. Contracts Overview

3. Creating Contracts

4. Creating Contract Releases

5. Creating Contract Invoices

6. Vendor Performance Tracking (VPT)

7. Resources

I will now demonstrate how to create a release in the MFMP Buyer Training

Environment.

• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

PO-Based vs Contract Based Invoices

PO-Based Invoice • Created when the

contract is set up as release required

• Customers create PO-based invoices based on the release (PO) and the submitted invoice from the vendor

Contract-Based Invoice • Created when the

contract is set up as not release required

• Customers create Contract-based invoices directly against the contract once the vendor submits the invoice

Once a purchase has been made and the vendor submits their paper/email invoice, an authorized customer will need to create one of the following invoice types in MFMP:

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Creating Contract Invoices

• Select the PO-based Invoice link to begin creating an invoice for a release required contract

• Complete the required invoice fields such as, Supplier Invoice #, Vendor Location, and Purchase Order

Creating Contract Invoices

• Select the Contract-based Invoice link to begin creating invoices for contracts that are not release required

• Complete the required invoice fields such as, Supplier Invoice #, Vendor Location, and Contract

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Creating Contract Invoices

• Customers may also create contract-based invoices within the contract by clicking the Invoice button

• MFMP automatically enters the contract number and supplier information into the invoice

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What should you do?

You created a release against one of your MFMP contracts. The following week you received a paper invoice from the vendor

What should you do?

A: Create a PO-based invoice.

B: Create a contract-based invoice.

C: You do not have to create an invoice.

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Demonstration

1. MFMP Overview

2. Contracts Overview

3. Creating Contracts

4. Creating Contract Releases

5. Creating Contract Invoices

6. Vendor Performance Tracking (VPT)

7. Resources

I will now demonstrate how to create a contract-based invoice in the MFMP Buyer

Training Environment.

• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

Things to know:

• Vendor Performance Tracking (VPT) is a survey that customers complete to track vendor performance per transaction

• MyFloridaMarketPlace generates a VPT survey after an invoice reconciliation moves to ‘Paid’ status

• Surveys will generate for the following transactions:

– State Term Contracts (STC)– Agency Term Contracts– Transactions greater than or equal to

$2,500 (including governmental entities)

Vendor Performance Tracking

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Things to know:

Vendor Performance Tracking

• MyFloridaMarketPlace sends an email for purchase orders or contracts to the: • Requester/OBO; or • Contract manager/contact

• Agency customers will receive one email per day for all new pending surveys

• Surveys can be accessed through the Common Actions section on the dashboard

• Agency customers have 30 days to complete their VPT surveys

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This screen shot is an example of the email notification that customers receive. When you click the link, MFMP takes you to MFMP Buyer.

VPT Email Notifications

VPT Ratings

Ratings display to the right when selecting a vendor. To see the vendor’s rating by category and associated comments, click the Rating.

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Accessing VPT Surveys

Select Submit Pending Vendor Ratings

Access the VPT surveys from the Common Actions section under Manage or by clicking on Manage on the menu bar and selecting Vendor Performance.

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To access the survey, click on the name of the vendor that you are rating.

Accessing VPT Surveys

Rating anything more or less than Meets Requirements requires a brief explanation.

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• MyFloridaMarketPlace Overview

• Contracts Overview

• Creating Contracts

• Creating Contract Releases

• Creating Contract Invoices

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

Resources

• MyFloridaMarketPlace

• MyFloridaMarketPlace University Training Materials

• Agency Customer Training Registration

• State Contracts and Agreements

• Buyer Production Environment

• Buyer Training Environment

– Username: Customer’s MFMP username

– Password: train30

Contact the MFMP Customer Service Desk:

Phone: 866-352-3776

Email: BuyerHelp@MyFloridaMarketPlace.com

Hours: Monday – Friday, 8:00 a.m. – 6:00 p.m., ET

Contact Information

Thank you for participating!

Appendix

• Method of Procurement

• Commodity Codes

• Object Codes

• Contract Request Statuses

• Contract Statuses

• Contract Field

Things to know:

• A Method of Procurement (MOP) indicates the statutory authority an agency customer must have to make a purchase

• Florida provides several different procurement methods to state agencies to purchase commodities and services

• Agencies must follow procurement rules when determining which procurement method they will need to use

Method of Procurement

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Commonly used MOPs:

• State Term Contracts (MOP A or B)

• Alternate Contract Sources (MOP C)

• PRIDE (MOP N)

• RESPECT (MOP M)

• Discretionary Spend (MOP E)

• Purchases under Category II threshold that require informal quotes (MOP F)

To see a full list of MOPs, view the MFMP Buyer Manual

Method of Procurement

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Things to know:

• Florida uses the United Nations Standard Products and Services Code (UNSPSC) for commodity and service classification for state purchases

• UNSPSC codes are eight-digits long, with a four-level hierarchy:

* Segment – 00XXXXXX▪ Family – 0000XXXX

o Class – 000000XX⁺ Commodity – 00000000

Commodity Codes

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Hierarchy Code Description

Segment 47000000 Cleaning Equipment and Supplies

Family 47120000 Janitorial equipment

Class 47121700 Waste containers and accessories

Commodity 47121701 Trash bags

Things to know:

• Florida uses a six-digit code that represents a uniform classification of expenditures for use by all state agencies in the Florida Accounting Information Resource (FLAIR)

• MyFloridaMarketPlace populates an object code based on the commodity code selected

Object Codes

Commodity Code Object Code

80161801: Photocopier Rental or Leasing Service

442000: Equipment Rental –Copier

14111511: Writing Paper 341018: Suppliers Office Consumable

27152500: Tires and Tire Tubes

241038: Repairs/Maintenance – Commodities Vehicles

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Contract Request Statuses

Status Status Description

Composing Customer creates the Contract Request; also, a Contract Request can return to the Composing status if the preparer withdraws the request.

Submitted Customer submitted the Contract Request for approval.

Denied An approver denied the Contract Request.

Approved The appropriate approvers fully approved the Contract Request.

Processed The approvers approve the Contract Request and MFMP creates its associated Contract.

Status Status Description

Processed Contract has completed processing and is ready for use.

Open The Contract status moves to Open when one of the following events occurs:• Contract’s effective date starts• Current date is between the Contract’s effective and

expiration dates and has a valid available amount• Agency manually opens the Contract after it has been

manually closed

Inactive • Reached the Contract Expiration; however, has a remaining balance that allows processing of invoices.

Closed The Contract status moves to Closed when one of the following events occurs:• Reach Contract’s expiration date and there is no available

balance remaining on the Contract• Agency manually closes the Contract

Contract Statuses

Contract Field

• The Department of Financial Services requires that eligible two-party agreements be posted on the Florida Accountability Contract Tracking System (FACTS) website

• To attach the corresponding contract information that is located in the Florida Accounting Information Resource (FLAIR) and FACTS to the purchase order/release in MFMP, enter the FLAIR Contract ID in the Contract field in the Accounting – By Line Item section

• Updating the Contract field allows FLAIR to automatically include all PO, invoice and payment information in FACTS

FACTS Website Accounting Details

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