Financial Administrator Development Program Procurement-Goods and Services. January 15, 2018 Kimberly Kokenakes-Director, University Services

Transcription

1 Financial Administrator Development Program Procurement-Goods and Services January 15, 2018 Kimberly Kokenakes-Director, University Services

2 PURCHASING IN CONTEXT Purchasing is one of several units within University Services. These units work collaboratively as a single, integrated supply chain organization. Purchasing Logistics Capital Asset Management Accounts Payable University Stores Mail Services 2

3 PURCHASING S ROLE Purchasing is a support unit with responsibility for the execution of external commitments for goods and services on behalf of campus departments. Be responsive Objectives Protect MSU from foreseeable procurement risk Ensure MSU requirements are met Be responsible stewards of the university s resources 3

4 Analytics PURCHASING ACTIVITIES Professional Service Contracts Bidding Collaboration Conflict of Interest Contract Management Contract negotiation and signature Cost Containment and Savings Import Compliance Pcard Administration Regulatory and Policy Compliance Strategic Sourcing Sourcing Small Business Subcontracting Plans Supplier Diversity Supplier Management Sustainability Vendor Maintenance in KFS 4

5 PROCUREMENT AND PAYMENT METHODS Customer/End User Disbursement Voucher Purchase Order Spartan Marketplace Pcard Supplier 5

6 MSU HAS A NUMBER OF STRATEGIC ALLIANCES and CONTRACTS The Big 10 Educational and Institutional Cooperative (E & I) State of Michigan-MIDeal contract participation Provista Novation US Communities Sustainable Purchasing Leadership Council Michigan Minority Supplier Development Council Alliances allow us to identify sources and obtain goods at the best price 6

7 STRATEGIC CONTRACTS When do I use a strategic contract and how do I access them? Whenever the needed items are available on one Through Spartan Marketplace for commonly used items Why should I use strategic contracts and Spartan Marketplace? Because it saves MSU money and time 7

8 STRATEGIC CONTRACT EXAMPLES Office Max Contract-this is a Big 10 agreement VWR and Fisher Scientific Contracts-these are Big 10 agreements Dell Computer-MSU strategic contract with orders issued by the Computer Store Airgas Great Lakes-MSU strategic contract for cylinder gases Conlin Travel-MSU strategic contract National and Enterprise Car Rental Agreement-Big 10 contract For a list of available contracts visit 8

9 Sourcing HOW WE CAN HELP Budgetary v. Final Quotations RFI, RFP, Sealed Bid, RFQ Single and Sole Source Justifications Contract Review, Signature, Award Freedom of Information Requests 9

10 CONTRACT REVIEW/SIGNATURE AUTHORITY Physical Plant Risk Management Office of Sponsored Programs Office of the General Counsel Purchasing Campus Departments Contract and Grant Administration Environmental Health and Safety Office of Export Control 10

11 SIGNATURE AUTHORITY Signature authority is the authority an individual has to make external commitments on behalf of the university. These commitments include, but are not limited to contract, agreements, software licenses, etc. At MSU, signature authority is delegated by the Board of Trustees and President Simon. Delegation is limited to a few key individuals and the Purchasing staff. Deans, Directors, Chairpersons, and Principal Investigators do not have authority to sign contracts. Individuals who make external commitments without signature authority, may face serious consequences. 11

12 ETHICAL CONDUCT AND CONFLICTS OF INTEREST IN PROCUREMENT MSU employees are considered as public servants and are subject to State of Michigan Laws regarding contracts with public servants, as well as MSU policy. MSU defines a conflict of interest as: A conflict of interest exists when an employee's financial interests or other opportunities for personal benefit may compromise, or reasonably appear to compromise, the independence of judgment with which the employee performs his/her responsibilities at the University. Recent audit findings 12

13 KEYS TO MANAGING CONFLICTS Disclosure Exercising good judgment Perception Positive Outcomes 13

14 WHAT IS A CONFLICT OF INTEREST? Conflicts of Interest in procurement may include the following: Soliciting business from MSU for a company you have an interest in. Soliciting business from MSU for a relative s company Hall%20Presentation%20-%20Summer%202012_1.pdf see page 16 for definition of relative. Accepting gifts or gratuities from a supplier. Developing an external relationship with a supplier your unit does business with. 14

15 MSU S REVIEW AND APPROVAL PROCESS FOR A PROCUREMENT CONFLICT OF INTEREST Conflict Identified Conflict Disclosed to Purchasing Purchasing determines availability through other sources or options Item or Service available through other sources at better price Service Offered- Explore HR options Conflict of Interest Source Determined as best option Procure through alternate source Project Pay or other HR payment used Purchasing provides Conflict of interest Officer with support confirming as best option Conflict of Interest Officer prepares documentation for Board of Trustees Approval Board of Trustees Approval Obtained Note: each situation is a unique action and other safeguards also exist Purchase is completed to Conflict of Interest Company 15

16 FY University Services Generated Savings for MSU Departments by Functional Area 11% 3% Purchasing, $10,458,352 Mail Services, $1,320,110 Accounts Payable, $317,556 86% 16

17 Purchasing Cumulative Cost Savings Comparison by Fiscal Year $12 Cumulative Savings and Avoidance in Millions $10 $8 $6 $4 $2 $0 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun FY FY FY FY GOAL 17

18 Spartan Marketplace Cumulative Spend and PO Count by Supplier 11/15/15-12/31/17 18

19 Top Ten Organizations by GL Spend FY

20 Top Commodities on Spartan Marketplace 20

21 Recent Process Improvements Supplier Performance Review Program Personal Services Contract process (MBP Section 76) updated to provide greater clarity and now includes a decision tree for guidance on obtaining contract services include a decision tree for obtaining Contract Services and Updated the Moving and Relocation process to simplify it for users Implemented a Contract Management Tool for improved contract management 21

22 Upcoming Process Improvements Bidding and Sourcing Tool to standardize and improve the RFx process (Target timeline=december 2018) Departmental Purchasing Analytics (Target timeline=march 2018) Print Procurement Process Mapping/ Improvement project (starts ) IT Security Review Process Mapping/ Improvement project (starts ) Cylinder Gas Purchasing and Management Process Mapping/Improvement project (starts ) 22

23 Key Contacts for University Services Kim Kokenakes Director, University Services Douglas Glaser Assistant Director-Procurement Nathan Maher Assistant Director-Logistics Rekha Khetarpal Supervisor, Accounts Payable Glenn DeYoung Supervisor, Capital Asset Management Additional contacts available at 23

24 LINKS TO THE MANUAL OF BUSINESS PROCEDURE Section 74 (Accounts Payable) Section 76 (PSC) Section 220 (University Stores & Logistics) 220/index.html Section 224 (CAM) Section 270 (Purchasing) Section 271 (P-Card) Section 325 (Mail Services) 24