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DMB, Acquisition Services
Doing Business with Michigan
CommoditiesSean L. Carlson, Director of Acquisition Services
Tony Des Chenes, Commodities Division Director
Doing Business with Michigan
CommoditiesSean L. Carlson, Director of Acquisition Services
Tony Des Chenes, Commodities Division Director
DMB, Acquisition Services
Great time to work with state governmentReforming the way we do business is excitingHeadlines are even starting to reflect the changes
Detroit News – March 9, 2005 Editorial “Ending No Bid Contracts Will Save Taxpayer Dollars”Governing Magazine – February, 2005 Grading the States Issue cited Michigan’s contracting and purchasing as a strength for the state. The study, by the Government Performance Project, states “A distinctive feature of Michigan’s procurement and contracting procedures is its emphasis on ethics…”
Acquisition Services
DMB, Acquisition Services
Acquisition Services
Handle Solicitations for Goods and Services on Behalf of State Agencies
General RuleContracts valued at $25,000 or more are handled through Acquisition Services
Contracts valued at less than $25,000 are handled by agency buyers
www.michigan.gov/doingbusiness
DMB, Acquisition Services
Manage and Oversee a Portfolio of $11.6 Billion Each YearSolicitations in a Diverse Range of OpportunitiesEthics and IntegrityCompetitionInclusion and Openness
Acquisition Services
DMB, Acquisition Services
Commodities Categories
Food Freight
Pharmaceuticals Clothing
Furniture Office Supplies (Boise)
Lab Equipment Gas/Diesel
Medical Supplies Janitorial Supplies
Homeland Security Aggregate/Sand and Gravel
Energy Steel
Salt/Ice Control Carpet/Tile
Fleet/Vehicles Michigan State Industries
Printing (Xerox and IKON)
Alarm Systems
DMB, Acquisition Services
Top CommoditiesTotal of Top
Commodities$ 986,966,653.27
Total Value of Contracts
$1,030,397,486.81
Total number of Contracts: 275
1 Food $ 187,315,472.61
2 Pharmaceuticals $ 138,045,532.00
3 Prisoner/Commissary $ 133,186,416.04
4 Furniture/Files/Chairs $ 113,635,727.00
5 Copiers $ 98,591,931.59
6 Office Supplies $ 75,110,000.00
7 Medical/Surgical $ 68,853,587.86
8 MSI Products $ 64,377,660.16
9 Gasoline & Fuel Oil $ 23,172,484.60
10 Road Salt/Ice Control $ 21,768,506.67
11 Busses $ 11,686,004.65
12 Clothing $ 11,004,736.04
13 Carpet Tile/Installation $ 10,146,069.00
14 Uniforms/Rentals $ 8,121,198.44
15 Paper $ 7,326,857.70
16 Janitorial Supplies $ 6,880,512.00
17 Laboratory Equipment $ 5,705,892.91
18 Mailing Equipment $ 2,038,064.00
DMB, Acquisition Services
Commodities BuyersTony Des Chenes, Division Director
Joan BosheffDarlene BurnhamSue CieciwaLaurie GyorkosTerry HarrisJennifer HundtRebecca NevaiSeleana SamuelBill WalshJeff White
DMB, Acquisition Services
Innovative Commodities Projects
Homeland Security
FoodWill be discussed at length today as an example
Pharmaceuticals
Medical Supplies
Fleet
Energy
Emerald Ash Borer
State Fair
DMB, Acquisition Services
Getting Started
Become a Registered State of Michigan Vendor
www.michigan.gov/doingbusinessSelect “Becoming a Business Partner”
Check Bid Website regularlywww.michigan.gov/doingbusiness
Contact Acquisition Services with [email protected]
Additional ResourceProcurement Technical Assistance Centers (PTACs) www.michigantac.org
DMB, Acquisition Services
Upcoming Invitations to Bid
Vehicles: Compact to medium to heavy trucks. This will be a two-year contract. Due out in Mid-August.Clothing: This is a contract for various types of clothing used by multiple agencies. Due out in October.Personal Hygiene: This contract is for items such as shampoo, soap, toothpaste, etc. Due out in September.
DMB, Acquisition Services
Upcoming Invitations to Bid
Homeland Security Services: Planning, Training and Exercises. Due out in the Fall of 2005.Patrol Vehicles: This includes the Dodge Magnum, Dodge Charger, Chevy Impala, Ford Crown Victoria, and Tahoe.
DMB, Acquisition Services
Example – Food Contracts
Purchasing Strategy for Food ContractsDepartment of CorrectionsFY04 Expenditures totaled $43.5 Million for Corrections, which does not include Prisoner Stores or Food Service ContractsValue of Current Contracts = $98.3 Million, with 41 Contracts and 11 Contractors
DMB, Acquisition Services
Original Program
Process steeped in formal review required extensive travel, staff time & resources, and vendor time & resources
Three Acquisition Services Food BuyersBids solicited by Food Commodity
DMB, Acquisition Services
Original Program
Formal Joint Evaluation CommitteeMethod of Award = Best ValueObtain State Administration Board Approval for Each
New ContractContract Period ExtensionContract Value Increase
DMB, Acquisition Services
New Program
Goal to eliminate or decrease administrative burdens for both agencies and vendorsPre-Qualify Contractors
Pass/Fail Selection CriteriaEnsure Product Quality (HACCP, QA, Recall, Sanitation)Obtain Service Capabilities (Customer Service, Distribution/Warehousing, Order Processing, Staffing, Reporting)
Single State Administrative Board Submission
Total Program Value over Three Year PeriodSpecify Pre-Qualified Vendors
DMB, Acquisition Services
Pre-Qualification process adds credibility for vendors who are approved for the pre-qualification listChange in Submission and Award processes decreases time and resources for both vendor and agenciesOpportunities with agency level buyers still exist for orders of less than $25,000
50+ Regional Facilities, each with buyers who have delegated purchasing authority for orders of less than $25,000Produce, Shortening, Oils, Etc.
New Program Vendor Benefits
DMB, Acquisition Services
Delegated Purchasing Authority
To get a list of Corrections Buyers – or any other agency buyer
Go to www.michigan.gov/doingbusiness Select “Becoming a Business Partner” from the left sideSelect “Agency Procurement Staff” from the right side
DMB, Acquisition Services
Delegated Purchasing Authority
DMB, Acquisition Services
Visit the DMB table for a general flowchart that shows the steps from registration to awardVisit www.michigan.gov/doingbusiness
To download a copy of today’s presentationTo link to vendor registrationTo review current Invitations to Bid
Final Notes
Q & A
