WNY Procurement Optimization Project Update State University Business Officers Association February 25, 2015

SUBOA/CCBOA February 5, 2014 Optimizing SUNY Procurement : Context:

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Current processes (structures, systems, process, and policies) for the procurement of goods in the SUNY System are rooted in 20th century practices and reflect an excessive total cost of ownership ($$$) of procured goods when compared to best practices

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SUNY’s Shared Service Initiative (2012/13) prioritized Strategic Sourcing and Procurement Processing as two top opportunities to advance shared services across the system

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Significant savings may be realized through a strategic transformation of SUNY’s procurement processes through reengineering current structures, systems, & process

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A number of impediments exist for moving these initiatives forward: • Lack of clarity around scope • Absence of sound business plan for all operational/financial aspects • Governance (decision making) and organizational culture • Prioritization against competing SUNY initiatives

SUBOA/CCBOA February 5, 2014 Western New York – e-Procurement Optimization Initiative Background: To advance Shared Services Procurement Initiatives, the WNY SUNY Campus Procurement staff took it upon themselves to develop a strategic procurement transformation plan to optimize and standardize the procurement process for SUNY campuses to improve efficiency and compliance and capture accurate spend data to support strategic sourcing. I. Where are we today?

II . Where do we need to be?

III. How will we get there?

Guiding Principles: • • • •

Base decisions on explicit best practices project management methodologies (e.g. ‘lean’ six sigma): Establish an explicit business case w/ ROI for the transformation initiative Understand, acknowledge, and address existing cultural realities and obstacles Recognize that potential solutions may result in changed staff role and responsibilities, thereby necessitating a system-wide work-force transition strategy (training, performance programs, change management, etc.)

SUBOA/CCBOA February 5, 2014

Western New York – eProcurement Optimization Initiative Project Team:

Project Goal:

Project Management:

 Alfred State  Alfred University  College at Brockport  Buffalo State  Erie Community College  Monroe Community College

 SUNY Fredonia  SUNY Geneseo  University at Buffalo  Stony Brook University  SUNY System Administration  Research Foundation  Niagara Community College

1. Develop the solution and business case for optimizing procurement (all funds) through process standardization and improved utilization of technology (e-procurement) 2. Inform system-wide decisions to proceed with Shared Service – Strategic Sourcing Initiative The Center for Industrial Effectiveness (TCIE) • • • •

Weekly meetings since mid-October Disciplined data-driven Six Sigma approach Assist w/ data collection, analysis, and translation Asses gaps and identify areas for improvement

SUBOA February 25, 2015

WNY Procurement Optimization Project Update 

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Jan 2014 - Request for Information (RFI), 10 vendors responded

Hired E&I Consulting to help the team draft a comprehensive RFP based on:    

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​RFP released in late December and has three stages of assessment; o o

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Phase 1: Administrative Review (Pass/Fail) Phase 2: Minimum Respondent Qualifications and Mandatory Technical and Security Specifications Review (Pass/Fail)​ Phase 3: Proposal Evaluation and Demonstration​   

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responses from the RFI, SUNY procurement expertise and self assessment; SUNY IT expertise (SUNY Admin engaged to ensure shared goals and confirm IT support and knowledge from the consultant to draft a comprehensive RFP

Financial Evaluation 25% Technical Proposal Evaluation 35% Product Demonstration 40%

​Seven vendors attended the mandatory pre-bid meeting in Buffalo o

Four submitted proposals that were opened last week 

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Evaluation teams assessing proposals completeness to determine responsiveness and adequate competition Clarification may be requested of vendors

RFP Overview:

SUBOA February 25, 2015

The RFP solicits an “end-to-end” eProcurement Software Solution and related maintenance, support, and professional services from a single vendor which:  interfaces efficiently with current financial systems at each campus (state operating, community colleges, campus foundations and research foundation) and at SUNY System Administration  provides a solution to allow WNY Campuses and other Authorized Users to efficiently manage their complete procurement and invoice business processes  lowers agency costs and optimizes efficiencies by reducing staff time and streamlining business processes

The contract resulting from this RFP may be extended to other SUNY campuses across all regions of the state

SUBOA February 25, 2015

RFP Overview, cont.: Minimum Respondent Qualifications:

 Be in the business of implementing higher education eProcurement Solutions with demonstrated ability in multi-campus, system-wide eProcurement implementations interfacing with multiple existing systems  Minimum of five (5) years in higher education eProcurement Solution experience  Provide, perform and support the full suite of services: •

Spend Analysis

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Contract Management

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Shopping (e-marketplace)

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Sourcing/Bidding

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Requisitions

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Purchase Orders

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Receiving

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Invoicing

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Reporting

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Workflow

SUBOA February 25, 2015

RFP Overview, cont.:  Installation and Implementation • Project Schedule • Training Plan  Maintenance and Support  Financial Proposal* • Software • Software Maintenance • Software Support • Implementation Costs *

(Respondents must provide details on the methodologies uses to arrive at costs that can be applied to other SUNY campuses that may choose to implement the solution)

Current Project Milestones:  RFP Evaluation Evaluate pass/fail technical requirements Proposal Review & Scoring Schedule vendor demonstrations

 Financial Analysis Procurement cost Maintenance Cost Identify sustainable funding source

 Develop implementation strategy plan  Identify sustainable funding model

 Pre-implementation planning  Presidents' decision to go forward  Vendor selection Negotiate contract Award contract AG review OSC review

 Integration

SUBOA February 25, 2015

SUBOA February 25, 2015

Risk Identification and Analysis (ongoing):  Identified approximately 20 risks • • • • •

Compliance Funding Process Standardization Cultural Training/support

 Scored (weighted) against five criteria: 1. 2. 3. 4. 5.

Project schedule Overall cost Savings Efficiencies Compliance

 Key Risks   

Implementation issues Funding model Management/Leadership alignment

SUBOA February 25, 2015

SUBOA Feedback:  Questions?  What’s missing at this point?

 Unidentified Risks?  Is the project on the right track?

WNY Procurement Optimization Initiative Lessons Learned:

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Respect the skills, knowledge and abilities of system-wide staff by engaging existing SUNY subject matter experts, stakeholders, and committees, in an integrated/collaborative planning and implementation processes

Base decisions on explicit best practices project management methodologies (e.g. ‘lean’ six sigma)

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Address issues at their root causes (structures, systems, processes, policies, and culture) Establish an explicit business case w/ ROI for the transformation initiative Understand, acknowledge, and address existing cultural realities and obstacles

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