Why Does my Procurement care about your Payment?

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2 Why Does my Procurement care about your Payment? (And all of the other questions you've always wanted to ask about creating a transparent and efficient automated procure to pay process) Breakout Session #: F04 Presented by: Kimberley Langston, Director, CACI BSS Kimberly Jones, Sr. Project Manager, CACI BSS Date: 7/23/2013 Time: 4:00pm- 5:15pm

3 Share Your Knowledge Joe Wants to Know Industry Wants to Know 2

4 CONGRATULATIONS! You just WON the largest lottery jackpot in HISTORY so let s spend it Winnings $560M Your One-time payout $370M 3

5 Game Logistics You will be using the packet in front of you to play the game You will have 3 min to complete each task We will ask for feedback from the group after each task You will earn points based on how well you complete each task Score yourself at the bottom of each page There is a prize for the winner with the most points 4

6 Budget / Planning Turn to the first page in your packet Write down some ideas of how you would choose to spend $370M. (This is your winnings so think BIG) 5

7 Budget / Planning Give yourself one point for each of the following: If you categorized your winnings in any way If you allocated a dollar value (to the categories) If you consulted past research, your neighbor, or any external source when deciding dollar values 6

8 Budget / Planning By doing the following, Planning procurements at a detailed level Leveraging past buying history to inform future estimates Incorporating industry input early You ll benefit in these ways: Better able to trace procurements to the executed budget throughout the process Have more accurate estimates 7

9 Requirements Turn to the next page in your packet Pick one or two things from your wish list that you want to buy in this game and describe it/them 8

10 Requirements Give yourself one point for each of the following: If you provided descriptive details about your wish list (things, services, charities, etc.) If you used quantities, units, specific tasks, etc. If you defined constraints or assumptions 9

11 Requirements By doing the following, Defining what you want/need in severable, actionable, tangible items (e.g., separate line items) Being very specific number of hours, labor categories, deliverables, defined outcomes, tangible items with a count, unit of issue/measure, etc. Defining and stating constraints required IT infrastructure, building access/clearance, qualifications/ certifications, etc. You ll benefit in these ways: More accurate requirement definition to the procurement community Fewer disagreements with suppliers about unstated constraints Traceability to budget lines / spending plan for each line item 10

12 Sourcing/Selection Turn to the next page in your packet Write down how you are going to go about finding this in the market and how you make a selection between choices. 11

13 Sourcing/Selection Give yourself one point for each of the following: If you further refined what is important about your wish list (24x7 support, safety rating, tax deductible, etc.) If you wrote down anything (criteria) that would help you decide between multiple providers If you thought about how a provider should give you their price / pitch their offering If you defined a process for making your decision 12

14 Sourcing / Selection By doing the following, Communicate detailed requirements and accurate constraints Tying evaluation criteria directly to requirements and objectives Providing RFP/RFQ drafts to industry for early comments Allowing for flexibility in proposal/quote submissions balance apples to apples comparison with ability for industry to provide most advantageous offering You ll benefit in these ways: More accurate/compliant responses from industry Fewer questions / ambiguities from industry Faster submission, evaluation, selection process with fewer amendments Innovative vendor offerings that lead to better overall value 13

15 Award Turn to the next page in your packet Now that you have selected what/who you want, describe what type of agreement you will put in place and what should be in the agreement. 14

16 Award Give yourself one point for each of the following: If you outlined any deliverables, milestones, checkpoints before acceptance If you created incentives/penalties If you set an expectation of your involvement If you tied this to a budget category If you outlined a payment schedule and/or process If you outlined other terms and conditions 15

17 Award By doing the following, Capturing detailed data along the way and in advance of the award phase Setting clear performance objectives with incentives/disincentives, milestones, deliverables, etc. Clearly defining constraints, thinking through what if scenarios, and determining resultant actions Tying the award to your original budget You ll benefit in these ways: Less ambiguity during performance leading to better performance and met objectives Electronic capture of shared data budget, obligation, incentives/disincentives, timelines, key points of contact, etc. Ensuring that your budget can accommodate the cost Efficient and accurate data call results 16

18 Contract Administration Turn to the next page in your packet Describe what will happen while you wait for what you bought. Include who is doing what during this time. 17

19 Contract Administration Give yourself one point for each of the following: If you did some incremental monitoring before completion If you had something tangible to monitor If you outsourced any of the tasks to a staff If your staff had enough details in the Award to make decisions about progress on your behalf If you had a process for correcting things that were not going well / not as expected 18

20 Contract Administration By doing the following, Tying performance to something tangible good or deliverable Connecting with vendor electronically post award for incremental progress and monitoring Outsourcing administration to qualified staff who can reference a comprehensive Award for context You ll benefit in these ways: Have something tangible to compare against the award and be able to outsource the acceptance to other staff Enable more automated downstream process for invoice, receipt, automated matching, payment Anticipate delivery with proactive updates from the vendor rather than manual tracking of progress 19

21 Invoice/Receipt/Payment Turn to the last page in your packet When what you ordered is ready, describe how you are going to take ownership and how you will pay for it. 20

22 Invoice/Receipt/Payment Give yourself one point for each of the following: If you defined any type of receipt/acceptance process that matched to the Award If you had checks and balances in your process, multiple roles, exceptions for large $ value, etc. If you required any sort of record to be kept If you traced the money back to a particular account, budget category, etc. If you used a special payment type in order gain additional benefit (e.g., earning Amex Black card points) 21

23 Invoice/Receipt/Payment By doing the following, Sharing common data across systems (vendors, contacts, office addresses, budget accounts, etc.) Utilizing a review process with a set of checks and balances, different roles Automating some review, matching, and communication with the vendor You ll benefit in these ways: Auditable records Accurate payments, avoiding duplicate or erroneous payments Easier compliance with award payment terms Streamlined staff doing more than paperwork 22

24 And the WINNER is Add up your total points from all of the pages 23

25 Summary Points Capture information as early in the procurement process as it is known so the payment process is more accurate Focus on sharing the details throughout the procurement and payment processes Automate steps where human input is not value-added Capture as much information as data as possible in your systems When connecting more than one system: Establish one system of record Do not duplicate more information than required in each system 24

26 Thank You for attending! Don t forget to fill out and turn in your Joe and Industry Want to Know forms 25

27 Contact Information Kimberley Langston Kimberly Jones 26