Purchasing Directors’ Meeting May 21, 2009

Purchasing Directors’ MeetingMay 21, 2009

• Agenda

• Office Depot

• Get Lean Florida Program

• Governance

• MFMP

• Commodity Sourcing and Contracting Bureau

• Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau

• Reminder About Next Meeting Date

• Agenda

• Office Depot

• Governance

• MFMP

Confidential

State of FloridaSavings Opportunities

May 21, 2009

Confidential

Agenda Topics

• Office Depot Introductions• Savings Opportunities

– Office Depot Design Print and Ship

– New State of Florida Core

– Florida Minority Toner

– Demand Management

• Questions/Next Steps

Confidential

Office Depot Introductions

• Jim Pollman-VP Southeast Region• Billy Grimmett-Director Public Sector• John Riley-Regional Sales Director North Florida• Linda Sykes Director-Design Print and Ship• Morrie Norwood-District Manager

Confidential

Design, Print, & Ship Services

May 21, 2009

Confidential

Can we talk? Digital Printing Savings

• Focus on Quick Print/ Digital Printing/ Copy Jobs

• State has significant savings opportunities – Vendor consolidation – Leveraged buying– Waste reduction/ Green effect– Shipping – Florida is a big state! – Reduced administrative costs– Virtual File Cabinet saves time and effort

• Leveraged Price Savings– Print pricing programs are benchmarked against key Public Sector

contracts to maintain industry leading pricing

• Uniqueness of each Agency/Department– Met with 4 Departments– Print and Process cost assessment

Confidential

• Focus on Quick Print/ Digital Printing/ Copy Jobs– Closed Door Regional Print Facilities

– 137 Stores Digital Copy Centers/ Florida

– Networked Web based Virtual File Cabinet

– Unique Xerox Certification

Confidential

Can we talk? Digital Printing Services

• Print on Demand Services

• Digital Black and White & Color Printing

• Wide Format Black and White & Color Printing

• Binding and Finishing Services

• Document Archiving & Storage

• Web-based ordering via Online Print Center

• Expedited Shipping

Confidential

Can we talk? Digital Print Order Process Comparison

• Contact Print Shop– Yes, send file– No, multiple options

• Source vendors• Get quotes/ 2

– Individual job is quoted– Lose leveraged spend– Apples to oranges?– Shipping fees

• Submit job, various methods– Email, file size issues,– Instruction communicated, – Take to printer– Picked up

• Receive job• Approve separate invoice

– Total usage/spend tracking difficult

• Contact Print Shop– Yes, send file– No, Office Depot

• Online order– Online quote– Leveraged pricing– No shipping fees– Order confirmation call

• Receive job• Integrated invoice

– Usage/ spend tracking

Current Proposed

Confidential

Can we talk? Additional Benefits

• Virtual File Cabinet offers consistency– Instantly latest documents available

– Pre Configured documents

– Approvals same as Office Supplies

• Time– “Want it yesterday” syndrome

– Just in time = waste reduction

– Delivered where you want it – free!

Confidential

Can we talk? Cost Analysis

Note: Results may vary for different HW, annual usage and infrastructure costs.

TOTAL COST OF OWNERSHIP

Calculation for TCO per BW click

Item Purchasing cost

Annual CostAmortization over 6 years

Est. annual volume

Cost per click

HW Cost 24,300 4,050 500,000 0.00810Click 0.00340Paper 0.00612Subtotal 0.01762

Salary Teacher %Waste 17% 0.00300Labor 40,000 0.00916Power 0.00000Space costs 0.00000

Total Customer Cost 0.02978

Volume Rebate

OD Price 0.022 6% 0.02068

Savings 30.5%

Confidential

Next Steps:

Meet with you to explore your unique Agency/ Department

Print Assessment – Total cost of ownership

Process Review

Virtual File Cabinet demonstration

Confidential

Savings OpportunitiesNew State of Florida Core 5/04/09

• Office Depot and DMS Utilized Private Brand and Demand Management principles to create a revised core– Reviewed 2008 Agency usage trends

– Focused on high volume Agency usage items

– Consolidated spend on best value items where possible

– Goal of providing better value, same quality items that can reduce overall State spend

– Replace non stocked items with our current product assortment

– Minimize price increases, maximize savings opportunity

Confidential

Savings Opportunities Florida Certified Minority Toner

• Magnetic Imaging Systems– Miami Fl

• Current State Agency sales of over $1M annually• High Quality, Product is Guaranteed• ISO 9000; 2000 Certified• Qualified spend toward Certified Florida Minority Businesses• Provides 10% to 45% savings over OEM Toner

Confidential

Savings OpportunitiesDemand Management

• Demand Management is the process of concentrating spend on the lowest cost product that performs the function

• Demand Management provides a greater savings opportunity than any other method (10%-15% of total spend)

• Demand Management can be “Suggestive”, or “Mandated” and requires a willingness to change past purchasing habits.

• Demand Management Opportunities– State of Florida Core-focus spend on high use, private brand and

lower cost products– Florida Minority Toner- Guaranteed Product, Minority Spend– Office Depot Brand Remanufactured Toner-additional product

selections

• Demand Management requires a significant amount of analysis, and is best done at an Agency/Department level

• Contact your Office Depot Account Manager for additional information

Confidential

Questions/Next Steps

• Agenda

• Office Depot

• Governance

• MFMP

Get Lean Florida Program

Mary Ann Nealy

Get Lean Program Administrator

Florida Department of Financial Services

www.GetLeanFlorida.com

1-800-GET-LEAN (438-5326)

Get Lean Suggestion

Gatekeeper

Gatekeeper View

Agency Log-in

Agency Form

Divisions – What’s expected:

•Answers expected within 60 days of referral (update on activities or final answer)

•Info received will be reported monthly to the Legislature and posted to the Get Lean website so submitters can see answers to their suggestions.

•Submitter’s name redacted – statute is clear on name being kept confidential

•Biggest challenge - deciphering suggestions and determining best ways to respond.

•For DFS – Reporting savings. Taking advantage of opportunities. Following through on implementing the good ones.

Scheduled Application Improvements – June 3,2009:

•Interagency Division Contacts – We need from you…

•Suggestion Attachment Capabilities

•Questions

www.GetLeanFlorida.com

1-800-GET-LEAN (438-5326)

• Agenda

• Office Depot

• Governance

• MFMP

Governance

• Session concluded May 8, 2009.

• State Purchasing analyzed more than 25 bills.

GovernanceSB 2574

• The SSRC is tasked with creating, hosting, and managing a statewide email system.

• The SSRC is also tasked with developing enterprise Information Security standards.

• Agency heads are required to submit documentation evidencing compliance with the Information Security standards.

• Provides special districts, municipalities, and counties with the ability to “piggyback” off of each others’ contracts if the original contract was competitively procured.

GovernanceSB 712

• Requires Joint Legislative Auditing Committee to oversee website containing each appropriation by state agency, expenditures, budget amendments, position and rate information for all positions provided in the General Appropriations Act.

• The Committee will suggest including additional state agency information such as operating fund balance, trust fund balance, fixed capital outlay project information, 10 year history of appropriations, links to audits, and descriptions of programs upon which funds may be expended.

GovernanceSB 1796

• Limits state agency authority to enter certain types of contracts unless granted specific authority in the General Appropriations Act.

• Requires the state agency to notify the Governor and Legislature prior to executing certain contracts.

• Requires certain provisions to be included in every contract.

• Requires certain approvals/actions by the agency.

• Requires deferred payment commodity contracts and consolidated financing agreements in excess of $500,000 to be expressly authorized by the legislature.

• Provides limited exceptions for specific agencies from provisions in subsection 1 and 2.

GovernanceSB 2694

• Bill creating Enterprise Financial Business Operation Office within DFS.

• Creates process to review proposed modifications for related subsystems (like MFMP).

• This bill did not pass.

GovernanceSB 2574

Governance

• Rule revision update for Rule 60A-1.044, F.A.C.

• No opportunity for changes through legislation during this session.

• Insightful comments received as a result of Rulemaking Workshop.

• Incorporating the comments/suggestions and revising language.

• Revised version to be posted in F.A.W.

GovernanceE-verify

• E-verify is an Internet based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA) that allows participating employers to electronically verify the employment eligibility of their newly hired employees.

• Contractors for Federal government contracts are required to use E-verify and verify employees’ citizenship/immigration status for all persons hired during the contract term and all persons performing work within the U.S. on the federal contract. It’s designed to work in conjunction with the I-9 form.

• E-verify is free and voluntary and is an excellent means for determining employment eligibility of new hires and the validity of their Social Security Numbers.

• http://www.uscis.gov/everify 39

• Agenda

• Office Depot

• Governance

• MFMP

MyFloridaMarketPlace

• Legislative impact to MFMP

• SP Memo #3 (Not just a new push for MAs)

• Feedback on “checkbox” for attachments

• DFS Vendor-add Application – Update

• Demo use of “Vendor Admin Tool” to obtain MFMP vendors for bids

• Agenda

• Office Depot

• Governance

• MFMP

Commodity Sourcing & Contracting BureauContract Updates

• Contract Renewals– Carpet & Installed Flooring (through May 31, 2010)

• Solicitations in Progress:– Medium & Heavy Trucks (bids opened on May 6)– Bulk Fuel, Gasoline & Diesel (launched solicitation on May

12)– Security Officer Services

• Solicitations in Development– Tires– Construction, Industrial, Agricultural & Lawn Equipment

Commodity Sourcing & Contracting BureauActivity Updates

Team 1 – Energy & Transportation Team– Motor Vehicles:

• In April, we removed Caruso Dodge from 91 awards. We replaced 87 items with awards to Beck Auto Sales, Maroone Chrysler-Jeep, and Maroone Dodge.

• Notified on May 15 that Maroone Chrysler-Jeep and Maroone Dodge will be impacted by the Chrysler bankruptcy and will close. Next action will depend on the timeframe for closure.

• Beck Auto Sales will not be impacted.• GM will announce dealer closings soon. We will monitor for

impact to the STC.

Commodity Sourcing & Contracting BureauActivity Updates

Team 3 – MRO & Law Enforcement– Finalizing next action recommendations for : Tools, Lawn Care

Services, and X-ray & Metal Detectors.– Uniforms: we received over 90 responses to our customer

survey. BIG thanks for the feedback. We are finalizing the next action recommendation now.

– Drug Screening Services: survey closed April 30. We are in the process of reviewing and organizing results.

Team 7 – SPAs and Special Projects– Tissues & Towels: in negotiations with Dade Paper to reduce

pricing and enhance services.– Started quarterly update process for the Florida Climate-

Friendly Preferred Products List.45

• Agenda

• Office Depot

• Governance

• MFMP

Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau - Contract Updates

• Contract Renewals– Multi-Function Copier Devices – Management Consulting Services: Renewal amendments were sent

to vendors last week. Will post renewal prior to 5/31.– IT Consulting Services extension through 8/31/09. We will post

renewed companies on the bulletin board so you can issue PO’s for next fiscal year.

• New Contracts– Mainframe Software contract “Rolling Awards” includes:

Unisys, Information Builders and Allen Systems Group

• Solicitations in Development– Client/Server Software and COTS Software– Printing and Multi-Function Copying Devices– Mail Services (Mail Room)– P-Card Services

Team 4 – Information Technology and Telecommunications– Under negotiations with mainframe software providers– Team 4 will handle IT consulting: Launched last week. ALL

VENDORS MUST BID TO BE ON THE NEXT CONTRACT. New contract will start 9/1/2009 and avoid fiscal year-end activities in subsequent years.

Team 5 – Office Equipment and Services– FedEx has agreed to waive accessorial charges for:

• Commercial Ground• Residential for Express only (80% of residential is express)• Lower overall rates (lower than current WSCA but hirer than

previous DHL rates)– Rental Vehicles ITN is underway. Includes separate award for

trucks

Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau - Activity Updates

Team 6 – Property Insurance & Program Services

– New Team Members:• Holley Merrick, Team Lead ― 488-7804 • Abbe Justus ― 487-0417

– Ocean/Marine Insurance ITB is underway: Allison Norman ― 488-7996

Technology, Office Equipment and Special Programs Sourcing and Contracting Bureau - Activity Updates

• Agenda

• Office Depot

• Governance

• MFMP

Next Meeting

July 16, 2009

2:00 – 4:00 pm

Purchasing Directors’ Meeting May 21, 2009

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