fy2012 iso purchasing performance measures 063012

06/30/12 1

Eight times awarded of the National Purchasing Institute AchievementOf Excellence in Procurement Award (2005-2012).

ISO 9001:2008 Certified

The Baltimore County Public Schools Office of Purchasing is a recipientOf the “Outstanding Agency Accreditation Achievement Award”

fromThe National Institute of Governmental Purchasing (NIGP), whichRecognizes our Purchasing Office as a leader in the public procurementprofession.

Baltimore County Public Schools Office of Purchasing

FY2012


Mission Statement

The mission of The Office of Purchasing is to provide a quality

Education That develops the content knowledge, skills, and attitudes that will enable all students to reach their

maximum potential as responsible, life-long learners and productivecitizens, through direct support to the Baltimore County

PublicSchools Faculty, Staff, and Business Community for all of

theirprocurement needs in a manner that is ethical, impartial,

open,fair and honest and sustains a continuous and measurableimprovement in student performance.

06/30/12 2


Vision Statement

The Office of Purchasing contributes to the delivery of a

cost efficient education by endeavoring to ensure thatBCPS and the taxpayers receive full value through our procurement expertise to assure the timely

acquisition, anddistribution of goods and services at the best possible

priceon the basis of a competitive solicitation process from

themost responsive and responsible bidders considering

cost,quality, suitability, service and delivery.

06/30/12 3


Values Statement

The Office of Purchasing coordinates and issues all solicitations for commodities, construction and renovations, equipment, furnishings, instructional materials, and services in compliance with all applicable federaland state statutory regulations, Board of Education policies, procedures andrules. They ensure that all bid specifications and contract documents aredesigned to optimize the quality of goods and services while at the same timeminimizing the financial risk to the school system and increasing public trust inthe procurement process. The Office of Purchasing acts in accordancewith the highest standards of ethics, and is accountable for the quality of their technical assistance, exceptional service, and continuous improvement in theirprocess. The Office of Purchasing is committed to a fair and equitable biddingenvironment that encourages economic growth in the minority and small business community through their participation in all BCPS contracts.

06/30/12 4

Significant Achievements In 2001 BCPS became the first public school system in Maryland to implement

eProcurement as their primary means of procuring goods and commodities. First Public School System in Maryland to conduct a Reverse Auction in 2002

and the First to use the Reverse Auction Method for the procurement of Construction Materials in 2006.

Led the legislative initiative to raise the bid threshold for LEA’s from $15,000 to $25,000 in 2006.

First LEA to establish performance contracts for Textbook Publishers and to actively negotiate pricing and shipping costs. This lowered shipping costs from 10-15% to 2-6% saving BCPS $92K in FY 2010 alone.

First LEA to establish an on-line plan room for all construction projects within the system.

First LEA to implement an on-line vendor evaluation system. First Lea to establish on-call time and material bid contracts allowing for

construction projects not to exceed $300K to be quoted or bid with-in 48 hours by pre-approved vendors thus reducing the bidding time by at least 12 days.

One of six School Districts in the United States to become ISO 9001:2008 Certified in 2010.

In FY 2011 received the National Institute of Governmental Procurement Outstanding Agency Accreditation Achievement Award – OA4.

Eight times awarded of the National Purchasing Institute Achievement of Excellence in Procurement Award (2005-2012).

06/30/12 5

2005,2006,2007,2008 2009, 2010, 2011 and 2012 National Purchasing Institute

Achievement of Excellence in Procurement Award Winner!

The Baltimore County Public Schools Office ofPurchasing has been awarded The NationalPurchasing Institute's Achievement ofExcellence in Procurement award for the seventhyear in a row (2005 - 2011)! The NationalPurchasing Institute, the public sector affiliate ofthe Institute for Supply Management (ISM),exists to promote the achievement of excellencein governmental and institutionalProcurement through education, certification,professional development and networking oftheir members and other professionalsassociated with public sector procurement andsupply management. This prestigious award isearned by those organizations that demonstrateexcellence in innovation, professionalism,productivity, e-procurement, and leadershipattributes of the procurement organization.

06/30/12 6

2010-2012Goals

Expand the use of eCommerce and online purchasing, especially with Third Party Billing and Grants.

Expand the number of catalogs on our eCommerce system

Implement eSchool Mall as the new generation shopping Platform and expand the usage of electronic procurement by improving the Workflow process and the search process.

Develop and implement improved purchasing database and prepare reports that enable the scheduling of renewals, track bids and contracts, etc.

Evaluate terms & conditions for bid specifications to support performance standards and enhance quality of goods and services.

Maintain a “continuous improvement” program comprised of the following: At least two meetings of formal procurement focus

group Formal procurement customer survey

06/30/12 7

2010-2012Goals Continued Complete review and update of Board policies and

Superintendent Rules as well as revise and publish our procurement procedures manual to include the new procedures from Financial Advantage 3.8 and ISO 9001.

Enhance our professional “Staff training” program allowing staff members to obtain their Professional Procurement Certification with the National Institute of Governmental Purchasing (NIGP)(CPPB & CPPO) and The Institute of Supply Management (ISM) (C.P.M.).

Continue to implement and expand our current pilot for vendor performance evaluation process for construction-related projects with a value of $500,000 and greater. Evaluations, whether positive or negative, will be shared with all team members involved. Team members can include Purchasing, Facilities, Construction Manager, General Contractor, subcontractors and suppliers.

06/30/12 8

06/30/12 9

SUPERINTENDENT

BOARD OF EDUCATION

CURRICULUM &

INSTRUCTION

BUSINESS

SERVICESPRINCIPALS

AREA ASSISTANT SUPERINTENDENTS

RESULTS - STUDENT ACHIEVEMENT

SERVICE FOR THE SCHOOLS

SERVICE

SERVICE

BCPS Service Model

Purchasing Functions

Issue and distribute purchase order documents. Encourage fair and equal treatment of all prospective

bidders and vendors. Maintain a list of qualified vendors and their respective

vendor codes. Observe procedures to identify and prohibit business

transactions with any vendor whose past performance has disqualified their status by BCPS, county, state or federal policies, procedures and statutes.

Assure that purchases meet appropriate local, state, and federal safety and health standards.

Facilitate the prompt procurement of goods and services for schools and offices.

06/30/12 10

Purchasing Functions

Administer and Coordinate all agreements for the purchase of supplies, materials, equipment and (contracted services).

Enter into contracts with vendors to establish a fixed price to be used by all schools and offices for a specified period of time.

Distribute information on existing state, county and BCPS contracts to schools and offices.

Process all requisition/purchase order forms and catalog requests in accordance with established contracts to approved vendors.

Identify purchases which require the use of established quotations and/or bid policies or procedures.

Select potential award vendor in cooperation with the account manager. Submit the recommendation for award of contract to the Board of Education when appropriate.

06/30/12 11

12

Purchasing ISO Performance Measures

Performance measures provide benchmarks that allow management to evaluate its performance over time.

Some sample performance measures for three key purchasing areas are as follows: Cycle Time and Productivity

• Purchase order cycle -average number of days needed to fill purchase requisitions. • Volume - average number of purchase orders processed (by office and/or per purchasing employee). • Total volume of purchases by type per purchasing employee. • On time processing or delivery.• Receipt of incorrect purchase order items or quantities as percentage of total orders.

Cost Savings and Quality

• New suppliers found.• Less costly substitute items used.• New contracts signed and/or lower prices negotiated with existing vendors.• Cheaper delivery methods.• Vendor performance evaluations.

Purchasing Improvements

• Efficiencies in the method used in the purchasing department.• Percent of total purchases spent with minority-owned suppliers.• Cost of operating purchasing services.• Transportation/delivery improvements.• BOE contract approval rate.

06/30/12

BCPS Office of PurchasingOrganizationas of July 1, 2011

06/30/12 13

Purchasing ManagerRick Gay, CPPO,

RSBO

Purchasing Agent IIJack Nichols

Purchasing Agent IIMelvin Burley, C.P.M., CPPO,

CPPB

Purchasing Agent IIPaul Cramer, C.P.M.

Purchasing Agent IIJeff Miller, C.P.M.

Purchasing Agent II /MBE Liaison

Melanie Webster, CPPB

Purchasing AssistantClarence Clawson

Lead Purchasing Clerk

Monica Dunkle

Purchasing ClerkSharon Berzins

Purchasing ClerkGeorgia Stavrou

Purchasing ClerkBarbara Hiser

Purchasing ClerkLisa Goldberg

ReceptionistShirley Martin

Purchasing Associate

Carol Yingling

Data Analyst IJoanne Debelius

Purchasing AssistantPatti Onheiser

MBE ConsultantBob Ball

Administrative Secretary

Carole Johnson

SecretaryJean Taylor

Governing Authorization

The annotated Code of Maryland sections 5-112 and 7-106, and the

Maryland State Department of Education Financial Reporting Manual for

Maryland Public Schools.

06/30/12 14

The Bid Solicitation Process

Bids must be advertised for two weeks.

The Purchasing Agents: - Assist schools and offices in developing bid specifications. - Evaluate bids received and submit recommendations to the Board for contract approval.

06/30/12 15

The Bid Solicitation Process The Office of

Purchasing coordinates all BCPS bids and vendor contract negotiations

State law and Board policy require public bidding procedures to be followed for certain purchases.

The threshold for requiring bids is $25,000 – single item or system-wide annual needs

Curriculum and books are chosen through an evaluation process administered by the Department of Curriculum & Instruction

06/30/12 16

Bid/Contract Workload Comparison

Agents 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007 – 2008

2008-2009

RGA 4 26 28 28 23 32 55PCR 26 35 43 47 35 50 43JMI 56 59 52 58 43 68 60MBU 50 53 39 39 38 43 67JNI 83 26 55 35 34 43 65MWE 0 0 0 20 52 52 30

TOTAL 219 199 217 227 225 288 320

06/30/12 17

Bid/Contract Workload Comparison

Agents 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

RGA 82 74 53PCR 60 28 24JMI 41 50 26MBU 35 33 20JNI 42 30 30MWE 41 33 17

TOTAL 291 248 170

06/30/12 18

The Procurement Process Other alternatives to bidding include:

- “Piggybacking” on contracts awarded by other public entities that follow public bidding procedures. - “Sole-Source” if proprietary or only available from one source. A sole source determination is made by the Office of Purchasing – and still must be submitted to the Board for approval. - Purchasing consortiums/cooperatives

06/30/12 19

Purchasing Procedures

Notify the Office of Purchasing of any goods, commodities or services that may need to be solicited or procured.

Plan in advance! - From start to finish the process of preparing, advertising, issuing, evaluating and Board approval can take 2 months or more!

If No Current Approved Contract Exists for the Item:

▪ get two written quotes from vendors If a purchase is > $15,000 and < $25,000

▪ If a purchase is < $15,000 get one written quote Use on-line catalogs for available items If less than $1,000 use a P-card Contact Office of Purchasing if any

assistance is needed06/30/12 20

Number of Purchase Orders, Online Catalog Orders and Pcard Transactions Processed Per YearFY 2001 – FY 2012

FY 2001

8%12%

80%

PO Online Cataloge Pcard

FY 2012

06/30/12 21

36%

1%

63%

PO Online Cataloge Pcard

Number of Purchase Orders Processed Per YearFY 00 – FY 12

FY 2000FY 2012

20%

42%15%

6%

17%

<$1000 $1000 - $4999 $5000 - $9999

$10000 - $14999 >$15000

06/30/12 22

73%

17%

4%

2%

4%

<$1000 $1000 - $4999 $5000 - $9999

$10000 - $14999 >$15000

06/30/12 23

Total Number of Procurement Card Transactions Per YearFY 2001 – FY 2012

0

10000

20000

30000

40000

50000

60000

70000

80000

4863252138

5446957977 57953

62024

66914 66011

71788 70331 69340 70281

Comparison of Orders

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

PcardOnline CatalogPO

06/30/12 24

06/30/12 25

Number of Purchase Orders Processed Each Fiscal YearFY 2000 – FY 2012

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

0

5000

10000

15000

20000

25000

30000

3500031,189

28,228

20,018

16,356

11,502 11,046 10,815 10,754 10,280 9,089 9,373 8,104

6,916

06/30/12 26

Number of On-Line Orders Per YearFY 2001 – FY 2012

0

2000

4000

6000

8000

10000

12000

863

1,951 2,550

4,846

7,154 6,774

6,232 6,235 6,766

8,341 8,936

10,422

Comparison of PO’s vs. Online PO’sProcessed Each Fiscal YearFY 2000 – FY 2010

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 20120

5000

10000

15000

20000

25000

30000

3500031189

28228

20018

16356

11502 11046 10815 10754 102809089 9373

81046916

32863 1951 2550

4713

7154 67746232 6235 6766

8341 8936

10422

PO Electronic

06/30/12 27

Cost Reduction Per Transaction

90.77

73.53

17.24

The average administrative Cost of procuring and paying for a good or service via the Traditional purchase-order based process is reported by respondents to be about $91, while the average costassociated with their Purchasing card transactions is estimated to be about $17 – a net savings attributable

to purchasing card use of

over $74 per transaction.(Based on the 2012 PalmerStudy)

06/30/12 28

PO’s Processed by QuarterFY 2011

27%

20%

19%

34%

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

06/30/12 29

Ordering Cycle By MonthFY 2000 – FY 2009

Jul

Aug Sep Oct

Nov DecJa

n Feb

Mar Apr

May Ju

n0

500

1000

1500

2000

2500

3000

550 0 0 0 0 0 0 0 0 40

768

562

324

76 58 12 20 26 26 11 16 6

814

1040

365

126 114 88 51 79 47 63 62 88

427

1635

676

308

167278

112 148 125 129 102 118

915

2600

1349

504

369255

147

296 265141

349

52

827

1985

1104

580

291399

203287 259

399 392

131

744

FY 2000

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

06/30/12 30

eProcurement Ordering Cycle By MonthFY 2000 – FY 2012

Series10

2000

4000

6000

8000

10000

1200011326

5813

25891789 1645 897 1443122513611992

693

5731

Jul Aug Sep Oct Nov DecJan Feb Mar Apr May June

06/30/12 31


FY 00

FY 01

FY 02

FY 03

FY 04

0

5,000

10,000

15,000

20,000

25,00021295

19592

12701

9669

48204874 4586 4602 4342 4272

1203 1149 1094 948 1016461 527 457 404 4101166 1490 1165 998 984

<$1000 $1000 - $4999 $5000 - $9999 $10000 - $14999 >$15000

06/30/12 32


FY 05

FY 06

FY 07

FY 08

FY 09

0500

100015002000250030003500400045005000 4703

4243

4686

3640

2758

40944221 3882 3877

3530

948 1014 917 992 953

342 377 350 402 350

959 960 919

13681498

<$1000 $1000 - $4999 $5000 - $9999 $10000 - $14999 >$15000

06/30/12 33


FY10FY11

FY120

500

1000

1500

2000

2500

3000

3500

4000

21731929

1385

3660

3431

2897

956 1022 1008

408 434 441

13551188 1185

<$1000 $1000 - $4999 $5000 - $9999 $10000 - $14999 >$15000

06/30/12 34

Bids vs. Bid Protests FY 2002 – FY 2012

0

50

100

150

200

250

300

350

214236

200223 227 225

288

321

291

216

170

3 3 9 5 4 10 1 5 11 5 3

06/30/12 35

Percentage of Bids vs. Vendor Protests Per YearFY 2002 – FY 2011

FY 2002

98%

2%

Bids Protests

FY 2012

06/30/12 36

99%

1%

Bids Protests

Dedicated Professionals committed to Excellence yield Qualitative ResultsFY 2001 – FY 2012

As of FY 2012 Purchasing has Processed 2,931 bids valued at $3.1 Billion

59 of the Agent’s recommendation for award have been appealed by bidders. These bid protests represent 2.1% of total bids solicited.

Of the 59 Appeals, 42 (71.2%) of the Agents’ decisions have been appealed to the Purchasing Manager.

Of the 42 appeals to the Purchasing Manager, only 7 (17.9%) appeals of an Agent’s decision has been overturned.

Of the 39 Appeals to the Purchasing Manager, as of FY 2011 only 5 (12.8%) of his decisions have been appealed to the CFO and the Executive Director of Physical Facilities.

All appeals except one (1) to the CFO and the Executive Director of Physical Facilities of the Purchasing Manager’s decisions have been sustained

No award has been appealed to the Board of Education of Baltimore County since 2001

06/30/12 37

BIDS & CONTRACTS PROCESSED

FY 2001 Processed 245 bids/contracts valued at $145,808,709 Million











FY 2012 Processed 170 Bids/Contracts valued at $213,450,904 Million

06/30/12 38

Total Dollar Amount Spent With BCPS Procurement Cards Per Year FY 97 – FY 04

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

06/30/12 39

Total Dollar Amount Spent With BCPS Procurement Cards Per Year FY 97 – FY 11

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

06/30/12 40

06/30/12 41

On-Line Orders Summary ReportTotal Dollar Value of Orders Per YearFY 00 – FY 06

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

$9,089

$322,540

$668,173 $831,337

$1,696,329

$2,328,847 $2,561,205

eCommerce Suite Purchases

06/30/12 42

On-Line Orders Summary ReportTotal Dollar Value of Orders Per YearFY 07 – FY 12

$0.00

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

$2,521,756 $2,812,948

$3,803,951 $3,589,685

$5,095,309 $5,639,355

FY2011 Operating, Grants, Capital, and Food Services

Expenditures

43

Items Subject to Competetive Procurement

Process15%

$217 million

Items not Subject to Bid(Ex: utilities, salaries, benefits,

copyrighted materials [texts], insurance, rent, maintenance fees)

85%$1.42 billion

06/30/12

Annual Reporting Results FY 2007 - FY2011Contract Awards That Include MBE/SBE ParticipationJuly 1, 2006 through June 30, 2011

44

Note: A single contract award may include multiple MBE/SBE subcontracts

06/30/12

Annual Reporting Results FY 2007 - FY2011Contract Awards That Include MBE/SBE ParticipationJuly 1, 2006, through June 30, 2011

4506/30/12

Annual Reporting Results FY 2007 - FY2011Dollar Value of Participation That Includes MBE/SBE July 1, 2006, through June 30, 2011

4606/30/12

Annual Reporting Results FY2007State-Funded Contracts – Total $210.2 million

MBE Participation for State-Funded Construction Projects by CategoryJuly 1, 2006, through June 30, 2007

47

Total State MBE Goal - 25% Total Achieved – 22.2%African-American Goal - 7% Achieved – 6.9%Woman Goal - 10% Achieved – 11.5%

22.2%

77.8% Other Non-

MBE$163.5M

6.9% African American

$14.5M

0.0% Native

American$0.1M

2.0% Asian

$4.3M1.7%

Hispanic$3.6M

11.5% Women$24.2M

06/30/12


48

69.6% Other Non-MBE

$13.3M


$0.7M

15.7% Asian

$3.0M

1.0% His-

panic$0.2M 9.9%

Women

$1.9M

MBE Participation for State-Funded Construction Projects by Category

July 1, 2007, through June 30, 2008

Total State MBE Goal - 25% Total Achieved – 30.3%African-American Goal - 7% Achieved – 3.7%Woman Goal - 10% Achieved – 9.9%

30.3%

06/30/12


49



Total State MBE Achieved – 24.2%African-American Achieved – 4.1%Woman Achieved – 12.3%

75.8% Other

Non-MBE$48.2M


$2.6M

7.2% Asian

$4.6M0.6%

Hispanic$0.4M

12.3% Women$7.8M

24.2%

06/30/12


50




26.5%

73.4% Other

Non-MBE$85.5


$10.4

1.0% Asian$1.2

2.1% Hispanic

$2.5 14.5% Women$16.9

06/30/12


51


July 1, 2010 through June 30, 2011


36.3%

63.8% Other

Non-MBE$79.9


$13.3

1.8% Native American

$2.2

4.4% Asian$5.5

4.2% Hispanic

$5.215.2% Women$19.0

06/30/12

Annual Reporting Results FY2007

52

74.6% Other

Non-MBE$193.2M


$15.4M

0.0% Native American

$0.1M

1.8% Asian

$4.7M

1.4% Hispanic$3.7M

10.5% Women$27.1M

0.1% Persons

w/Disabili-ties

$0.1M5.7% Small

Businesses$14.7M

MBE and SBE Participation for All Contracts by Category

Total Contracts - $258.9 million


Board MBE/SBE Goal - 14%Total Achieved – 25.4%

25.4%

06/30/12


53





55.2% Other Non-

MBE$77.0M


$2.1M

3.7% Asian

$5.2M

4.3% Hispanic$6.0M

5.4% Women$7.5M

29.9% Small Busi-

nesses$41.8M

44.9%

06/30/12


54





64.5% Other Non-

MBE$154.7M


$10.5M

2.3% Asian

$5.6M

1.3% Hispanic$3.2M

7.0% Women$16.8M

0.5% Persons

w/Disabili-ties

$1.1M

20.0% Small

Businesses$47.9M

35.5%

06/30/12

55






67.9% Other

Non-MBE$139.1M


$17.7M

0.0% Native

American$0.1M

0.8% Asian

$1.6M

2.0% Hispanic$4.2M

9.9% Women$20.2M

10.7% Small

Businesses$22.0M

32.1%

06/30/12

56






36.7%

06/30/12

MBE Outreach EffortsThe MBE Officer and MBE Outreach Consultant for BCPS have:

Participated in the Southern Maryland Regional Purchasing and Procurement Expo.

Attended Blue Book networking events.

Participated in the Baltimore Washington Corridor Council Government Procurement Fair.

Attended the MWMCA annual awards breakfast meeting.

Participated in MWMCA trade show and one-to-one contractor meetings.

Participated in MD/DC Minority Supplier Development Council Business Conference.

Participated in Prince George’s County Public Schools’ Regional Construction Event.

Participated in Baltimore County Procurement Outreach Events.

Hosted a Meet & Greet for general contractors and MBE subcontractors.

Hosted a MBE School Days event for MBE subcontractors.

Hosted an event for women-owned small businesses.

Visited 50+ prime contractors to discuss their participation in the MBE program.

Offered contractors assistance with Identifying MBE subcontractors Sending ads to solicit

subcontractor bids Completing forms correctly

Participated in the MSDE pilot for new reporting procedures for state-funded public school construction projects.

Attended a MDOT application assistance workshop.

5706/30/12

fy2012 iso purchasing performance measures 063012

Documents

purchasing office

procurement award

procurement process

public sector procurement

office of purchasing

online purchasing

public procurement profession

institutional procurement