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The New IT ITQ Dennis Fellin

Commodity Manager, IT and Telecommunications

09/10/2010

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Agenda

• What is the IT ITQ• Guiding Principles for New ITQ• Notes on Contract Structure• ITQ Tiers• Evaluation Criteria• Terms & Conditions• Service Category Structure• IT ITQ Qualification Requirements

What is the IT ITQ

• Contracting vehicle for IT Services– Deliverables based

• Allows degree of flexibility– Multiple service categories

• 15 main categories• 32 subcategories

– Terms and Conditions already agreed upon

• Qualified Suppliers– References– Financials– Organization/Management Summary

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Guiding Principles for New ITQ

• Optimized performance • Utilize Best Value as evaluation methodology• Minimize Risk to Commonwealth and Suppliers• Maximize Competition

– More defined: Clarified service categories– Narrow the qualification process

• Better, more tangible information• Easier to Administer

– Agency/DGS/OIT/Supplier: Process standpoint• Timeliness (RFQ to PO to work start)• Align with BMBWO goals

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Notes on Contract Structure

• T&M can be part of the deliverables contract when the following conditions apply: No more than 40% of PO amount for T&M

• Updating and maintaining current software, in support of the contract

• Work will be needed for varying projects in support of the contract that have no definitive timetable or deliverable that can be realistically projected.

• The use of alternative maintenance or development in support of the contract

• Allow use of p-card under $5000. • Allow use of Auto POs • Agencies to rate supplier performance on each project. • Continue to allow “piggybacking” under the new ITQ based on the

continuing inquiries received from local public procurement units• Add new service categories guided by changing technologies,

enterprise requirements and agency business needs• Retain Open enrollment & add new categories as technology and

business needs change

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ITQ - Tier 1

• 0-$50,000– Statement of work (model)– ITQ T&Cs– Allow for mixed T&M and deliverables – Use established rate card for

T&M work. • T&M can not be greater than 40% of Purchase Order (PO) value

– Agency makes selection of supplier– No Competitive solicitation required– $100,000 cap per supplier in same category

• In same fiscal year by agency• No limit on PO quantity• To exceed $100K max requires waiver from DGS

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ITQ – Tier 2

• $50,001 - $250,000– Statement of work (model)– ITQ T&Cs– Allow for mixed T&M and deliverables – Use

established rate card for T&M work. • T&M can not be greater than 40% of PO value

– Expedited RFQ Process– Sent to all suppliers in category– Team selects based on best value– Expected time from receipt of proposals: 2-3 weeks

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ITQ – Tier 3

• Greater than $250,000– Statement of work (model)

• 70% Rule in effect for technical– ITQ T&Cs– Allow for mixed T&M and deliverables – Use established rate card for

T&M work. • T&M can not be greater than 40% of PO value

– Standard RFQ Process (mimics RFP Process)– Sent to all suppliers in category– Agencies must request DGS delegation authority (Same as RFP

requirement)– Team selects based on best value– Uses recommended percentage allocations

• Cost, DB, Technical (Same as RFP requirement)– Minimum Point Allocations:

» Cost: 30%, MBE/WBE: 20%» Technical provision

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IT ITQ Evaluation ProcessBest Value Evaluation Criteria

• Technical Proposal• Supplier Prior Experience• Personnel & Experience• Work Plan

• Strategic Alignment• Approach to Deliverables

• Meet requirements• Goals and tasks

• Performance metrics• Domestic Workforce Utilization• DB Participation• Cost

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New Terms and Conditions

• Terms and Conditions developed as cooperative effort with IT Suppliers

• T&Cs are more business friendly– Allows for wider participation

– T&Cs are nonnegotiable– Will expedite negotiations and approval process– Faster to PO award

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Service Category Structure• Cabling Services

– Internal Premise Voice Wiring Support– Internal Premise for Residential Voice and Data Wiring Support – LAN Development/Upgrade and LAN Integration (Planning, Design, Implementation) both Hardwire and

Wireless Technologies• Consulting Services - IT General

– Customer Relationship Management (CRM) – Electronic Document Management Systems (EDMS) – eGovernment – Financial – Operational – Organizational – Planning – Research

• Consulting Services - IT Security – Managed Security – Vulnerability Scan – Ethical Hacking & Penetration Testing – Independent Services Assessments – Regulatory Compliance Solutions

• Consulting Services - IV&V • Consulting Services - IT Project Management • Consulting Services - Radio Services

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Service Category Structure• Consulting Services - Network Services & Telcom Services

– Network Services – Customer Relationship Management (CRM) – Call Center/IVR – Voice over IP (VOIP) – Financial – Multimedia – Operational – Organizational – Planning – Research

• Commercial Off-The-Shelf (COTS) Software Services • IT Integrator Services • IT Training - Classroom/Non-Classroom • Modifiable Off-The-Shelf (MOTS) Software Services • Software Development Services

– SAP – JAVA – .NET – GIS

• Software Maintenance • Subscription Based Web Application Services • Geospatial Technologies/ GIS Services• Disaster Recovery Services

– Planning– Operational

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IT ITQ Qualification Requirements

• Must be a registered supplier with the Commonwealth of Pennsylvania

• Business entity trying to qualify must have a minimum of two (2) years in business prior to proposal submittal date

• Must complete IT ITQ Questionnaire– Requires Financial to be included– Requires Generic Resumes– Requires Organizational Chart

• Qualification must occur in one (1) or more of the service categories

• Must submit three (3) quality references for EACH service category• References must demonstrate relevancy to the service category

– Ensure size and scope• References must meet minimum scoring criteria

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Success So FarCurrently:

223 Suppliers RegisteredOver 200 suppliers working on their proposals for registrationOver $27,000,000 committed for in spend since July, 2009

ITQ Category Number of Suppliers

Consulting Services - IT General 108Software Development Services 96Consulting Services - IT Project Management 69Integrator 56IT Training - Classroom/Non-Classroom 46COTS Software Services 46Consulting Services - Telcom & Network Services 36Consulting Services - IT Security 34Consulting Services - IV&V 27Cabling 24Subscription Based Web Application Services 23MOTS Software Services 19Software Maintenance 7Consulting Services - Radio Services 7GT/GIS Services 5Disaster Recovery 3

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IT Service Category Qualified Suppliers Spend Total POs POs

0-50kPOs 50-250k

POs 250K+

Cabling 24 $ 723,024.25 81 81 Consulting Services - IT General 108 $ 6,866,801.11 44 34 5 5Consulting Services - IT Security 34 $ 199,219.60 4 3 1 Consulting Services - IV&V 27 $ 209,479.38 1 1 Consulting Services - IT Project Management 69 $ 1,503,524.31 11 5 3 3Consulting Services - Radio Services 7 $ 37,000.00 2 2 Consulting Services - Telcom & Network Services 36 $ 275,550.00 7 6 1 COTS Software Services 46 $ 582,207.00 10 8 1 1Integrator 56 $ 17,490.00 1 1 IT Training - Classroom/Non-Classroom 47 $ 490,319.60 59 58 1

MOTS Software Services 19 $ -

0 Software Development Services 96 $ 13,440,275.53 30 20 2 8

Software Maintenance 7 $ -

0 Subscription Based Web Application Services 23 $ 1,388,294.80 8 4 2 2

GT/GIS Services 5 $ -

0

Disaster Recovery 3 $ -

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Department of General Services

Procurement

eMarketplace Web Page

ITQ Web Page

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Updates

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Home of Supplier Profile

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Important Web Sites

• ITQ Document Library http://www.portal.state.pa.us/portal/server.pt/community/invitation_to_qualify/4641/document_library/566839

• ITQ Supplier Where to Start: http://www.portal.state.pa.us/portal/server.pt/community/invitation_to_qualify/4641/where_to_start/495422

• ITQ Supplier Search: http://www.portal.state.pa.us/portal/server.pt/community/invitation_to_qualify/4641/supplier_search/517139

• Sign-up for E-Alerts: http://www.dgsweb.state.pa.us/EAlerts/Default.aspx

• Procurement Handbook: http://www.portal.state.pa.us/portal/server.pt?open=512&objID=1277&&SortOrder=100&level=3&parentid=1271&css=L3&mode=2&in_hi_userid=160867&cached=true

• eMarketplace: http://www.emarketplace.state.pa.us/

IT ITQ Document Library

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Enterprise ITQ Website

• Link on PA eMarketplace at www.emarketplace.state.pa.us. ( view all contracts)

To get to the new Enterprise ITQ website:

– Suppliers: www.pasupplierportal.state.pa.us • Follow links to ITQ Web Site (on left side of page)

• For New COPA Suppliers: Registered at www.pasupplierportal.state.pa.us and obtain SAP Supplier number.

– Then access the ITQ application, through the bidder tab in the supplier portal

Point of contact for questions: Don Bauer, ITQ Manager (717)787-4719

dbauer@state.pa.us