Continued recognition for excellence in government procurement through Our Best. Nothing Less dedicated public service.

Valued for excellence in public procurement by establishing a body of standards that are indicative of a solid purchasing operation through the demonstration of best practices and high standards of performance.

Finance and Administrative Services Department Purchasing Division Broward County Board of County Commissioners www.broward.org/Purchasing

Continually promoting access and transparency to Broward County’s procurement process through our website of current solicitations, solicitation results, recommendations for award, RLI/RFP repository, public notices, public meetings and many more.

FY 2012 Annual Report Purchasing Division

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Table of Contents

Message from the Director of Purchasing ...........................................................................................3

Mission Statement .............................................................................................................................4

Organizational Structure ....................................................................................................................5

Section Introduction ..........................................................................................................................6

Special Projects Team/Administrative Support Team .............................................................................. 6

Commodities/General Services and Central Warehouse/Logistics Sections ............................................ 6

Centralized Services Section ..................................................................................................................... 6

Information Technology Section ............................................................................................................... 6

Negotiations Section ................................................................................................................................. 7

Construction Section ................................................................................................................................. 7

Statutory Authority ............................................................................................................................8

Purchasing Division Accomplishments ................................................................................................9

Recognitions, Awards, Accreditations, and Certifications ........................................................................ 9

Technology .............................................................................................................................................. 10

Organizational Improvements ................................................................................................................ 10

Customer Service and Outreach ............................................................................................................. 12

Financial Statistics/Procurement Activities for Fiscal Year 2012 ......................................................... 14

Master Agreement Awards ..................................................................................................................... 14

Awards by Agency ..................................................................................................................... 17

Vendor Participation ............................................................................................................................. 18

Contracts Awarded to Vendors by State, County and City ..................................................................... 18

Statistical Comparison with Previous Years ....................................................................................... 22

Contract Awards ..................................................................................................................................... 22

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Vendor Awards by Region ....................................................................................................................... 24

Value Added Cost Savings ....................................................................................................................... 25

Procurement Operations .................................................................................................................. 26

Procurement Processing Times............................................................................................................... 26

Protests and Objections .......................................................................................................................... 29

Delegated Purchasing Authority Audit Program ..................................................................................... 31

Organizational Development Program ................................................................................................... 31

Central Warehouse Operations ........................................................................................................ 33

Surplus Property Disposal ....................................................................................................................... 33

Emergency Preparedness Operations ..................................................................................................... 33

Community Economic Development ................................................................................................. 34

Certified Vendor Participation Program ............................................................................................ 34

Living Wage Program .............................................................................................................................. 35

Organizational Focus for Fiscal Year 2013 ......................................................................................... 38

BPMVARD , g COUNTY

FLORIDA

Finance and Administrative Services Department PURCHASING DIVISION 115 S. Andrews Avenue, Room 212 • Fort Lauderdale, Florida 33301 • 954-357-6066 • FAX 954-357-8535

Message from the Director of Purchasing

Our nation is slowly recovering from one of the most difficult economic situations it has encountered.

Locally, Broward County is leading these recovery efforts by investing in its capital improvement

program. Major capital outlay projects, involving the airport expansion program, construction of a new

courthouse, and improvements to the County's infrastructure, such as its water and sewer systems

paved the way for Fiscal Year (FY) 2012 becoming an historic and unforgettable year for the County. For

the first time, we surpassed the $1 billion mark in contract awards.

During FY 2012, the total contract dollars awarded to vendors conducting business with Broward County

was $1,145,793,373, in which 58.3% or $667,757,515 was awarded to vendors located within the

County; 87.4% or $1,001,080,215 within the tri-county area (Broward, Palm Beach and Miami-Dade);

and 90.2% or $1,033,949,789 within the State of Florida. The previous figures demonstrate the vital role

Broward County plays in stimulating our local, regional, and state's economy. Programming capital and

general fund dollars have a direct and indirect positive impact on our economy and on the number of

jobs created. As of September 2012, the Broward County unemployment rate decreased to 7.6% from

9.3% over the same period last year.

It is my pleasure to present to you, the Purchasing Division Annual Report for Fiscal Year 2012. The

Annual Report contains extensive data and comprehensive information regarding the services provided

by the Purchasing Division. Overall, the Annual Report will support the fact that our team not only

processed approximately 5,000 more transactions this fiscal year over last fiscal year, but also carried

out a procurement program where contract dollars awarded were twice the previous fiscal year, as well

as, the two previous fiscal years (FY 2010 and FY 2011) combined. Despite the aggressive procurement

demands experienced by staff based upon the amount of procurement activities, processes and

timelines imposed, our performance met those challenges!

The Annual Customer Satisfaction Survey supports "Our Best. Nothing Less." customer service

commitment. The Purchasing Division achieved an overall rating of 4.12, out of a possible rating of 5.

These and other Division's achievements, recognition, awards, business intelligence, performance, and

benchmarking, including organizational structure, responsibilities, and focus are included in this report.

In closing, this would not be possible without the support of the Broward County Commission, County

Administration, and all of our great partners throughout the County. I am grateful to those who

contributed to this report, and to my entire staff for their relentless effort and dedication in providing

"Their Best. Nothing Less service to Broward County".

2— Brenda J. Billings y, Director A Service of the Broward County Board of County Commissioners

Excellence in Government Procurement— Our Best. Nothing Less.

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Mission Statement The Purchasing Division provides a unified purchasing system that ensures integrity and fairness, with centralized responsibility for oversight of solicitations, vendor selection, negotiation, award, contract management, reporting, disposal of surplus property and emergency logistical support for the benefit of Broward County agencies.

The major objectives are:

• to comply with the comprehensive federal, state and county procurement and contracting laws which govern expenditure of public funds

• to provide timely responsive support to client agencies • to generate broad participation and competition among potential suppliers and contractors • to ensure quality products and services at competitive prices • to ensure equal opportunity to all qualified vendors and contractors wishing to compete for Broward

County contracts • to ensure that small and disadvantaged businesses have the maximum opportunity to participate in

Broward County contracts • to monitor vendor performance to ensure accountability • to provide Procurement Code guidance and training to client agencies • to keep abreast of current developments in the field of purchasing, market conditions, and new

products, and • to formulate and recommend purchasing policy and procedures.

These objectives allow professional procurement specialists to responsibly ensure that Broward County receives the best value obtainable for each tax dollar spent.

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Organizational Structure The Purchasing Division functions are implemented within three general interrelated Lines of Business: Executive Management, Administrative Services and Operations. These Lines of Business are put into action through seven business units.

Executive Management includes management of Broward County’s procurement practices, planning for future purchasing challenges, maintaining internal quality assurance and recommending policy. The Executive Management line of business consists of the Administration business unit.

Administrative Services provides administrative, fiscal and human resource guidance, budget management, information technology development, training, audit of delegated purchases, purchasing card (hereinafter referred to as P-Card) program administration and audits, quality control of agenda reports, Living Wage guidance, special projects, and educational and outreach programs to facilitate efficient and effective achievement of the Operations and Executive Management Business Units. The Administrative Services line of business is executed through the Special Projects/Administrative Support and Information Technology business units.

Operations encompass the mandated core business of the Division – procurement and disposition of surplus property. The Operations line of business is executed through the Commodities/Services and Central Warehouse/Logistics, Construction, Centralized Service Centers, and Negotiations business units. These units procure goods, including operational supplies and capital equipment, construction services, general and professional services. Additionally, the Commodities/Services and Central Warehouse/Logistics business unit disposes of surplus property and serves as the logistics center in emergency events in accordance with state and federal mandates.

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Section Introduction Special Projects Team/Administrative Support Team Special Projects Team/Administrative Support Team is a business unit of the Division’s Administrative Services line of business.

Special Projects Team performs a wide range of administrative activities including research, analysis, data tracking and reports, employee development training, budget management, policy development, organizational analyses, operational performance evaluations and delegated purchasing audits, quality control, and other specialized tasks in support of procurement-related special projects and programs.

Administrative Support Team provides a myriad of office support activities and customer assistance for both internal and external customers including all website postings for the Division’s procurement solicitations and results, front desk reception, mail delivery, contract file room and records retention management, document security and chain of control, forms management, legal advertising, public records requests, supplies, purchasing and payroll.

Commodities/General Services and Central Warehouse/Logistics Sections The Commodities/General Services and Central Warehouse/Logistics Sections are support groups responsible for the procurement of goods and services required by the various Broward County Agencies to accomplish their responsibilities, including operational supplies and capital equipment, general and professional services. Additionally, the Commodities/Services and Central Warehouse/Logistics business Sections is responsible for the disposal of surplus property through auctions, Invitations For Bid and/or donations, all in accordance with Florida State Statute. This Section also serves as the logistics center in emergency events for the County.

Centralized Services Section The procurement requirements of Aviation and Port Everglades Departments (Aviation and Port) are managed by a unit of Purchasing Agents based at the respective Agency locations. Each Purchasing Unit is comprised of three agents. Supervision of both units is the responsibility of the Purchasing Manager, Aviation and Port Everglades Departments, assisted by a senior agent. All agents and the Purchasing Manager are members of staff in the Purchasing Division and are responsible to ensure the integrity of the procurement process is in compliance with the Broward County Procurement Code and the Purchasing Division’s Internal Control procedures.

At the present time Aviation and Port solicitations that require the alternate procurement process of a Request for Letters of Interest or Request for Proposal may be handled by the Negotiations Section of the Purchasing Division or by the Centralized Services team. Agents in Centralized Services are capable of managing the procurement of construction projects, general service requirements and commodities, utilizing the appropriate procurement process.

Information Technology Section Information Technology (IT) Business Unit supports the Division to achieve its overall goal of reduction of purchasing price and the total cost of procurement by providing support in the creation of internal process

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efficiency. Besides storing and processing of information, Information Technology Business Unit provides support for central coordination, efficient distribution of information, faster process flow, and monitoring areas that are not utilizing resources efficiently.

Negotiations Section Negotiation Section is responsible for processing and coordination of Committee-based procurements such as the Request for Letters of Interest (RLI) and Request for Proposals (RFP). Both of these procurement processes result in a negotiated Agreement approved and executed either by the Board of County Commissioners or the Director of Purchasing depending on the amount of the services negotiated. The staff of the Negotiation Section coordinates the Committee-based procurements beginning with the request for procurement method approved by the Director of Purchasing, through all of the scheduled Selection Committee and Evaluation Committee Meetings, through the various Board Agendas for approval of the initial solicitation document to the approval of the Ranking Order to the approval of the Agreement.

The Negotiation Section serves as a training resource for County agency project staff and make themselves available to facilitate the process as required to ensure the success of the project.

Construction Section Construction Section provides services related the procurement of general, professional and construction services for various Broward County agencies. The Construction Section provides advice to using agencies, contractors and engineering and architectural consultants on various stages of procurement and contract administration. The Purchasing Agents process bids, change orders, work authorizations and amendments to various contracts to ensure compliance with applicable Florida Statutes and Broward County Procurement Code requirements.

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Statutory Authority The Purchasing Division was created and its duties outlined in Broward County’s Procurement Code (Code) for the purpose of providing Broward County with a unified purchasing system, with centralized responsibility for processing of delegated purchases. The Code provides for increased economy in procurement activities and enables the County to maximize to the fullest extent practicable, the purchasing value of public funds by fostering effective broad based competition within the free enterprise system, while ensuring fair and equitable treatment of all vendors who deal with Broward County Procurement. The Code provides safeguards for the maintenance of a procurement system of quality and integrity and also is intended to provide for increased public confidence in the procedures followed by public procurement. All procurement by Broward County is governed by and construed under the laws and codes as outlined below.

Source Regulation Federal Regulations Disadvantaged Business Enterprises, 26 CFR Part 49

State of Florida Statutes

Integrity of Public Contracting, Section 287.132 Consultant's Competitive Negotiations Act (CCNA), Section 287.055 Public Meetings Section 286.011 Scrutinized Companies Certification, Section 287.135 Employment Eligibility Verification Program Contractor Certification,

Governor Scott’s Executive Order 11-02, issued January 4, 2011 Prompt Payment Law, Section 218.70 Public Records Law, Chapter 119 Drug-free Work Place, Section 287.087 Uniform Commercial Code, Chapter 672 Construction Bonding Requirements, Section 255.05 Public Construction Competitive Bidding, Section 255.20 Code of Ethics, Chapter 112 County authorized to sell real and personal property and to lease real

property, Section 125.35 Sale of county property to United States, or State, Section 125.38 Tangible Personal Property Owned by Local Governments, Chapter 274 Surplus property, Section 274.05 Alternate procedures, Section 274.06 Energy Efficient and Sustainable Buildings, Section 255.2575 Lost or Abandoned Property, Chapter 705

Broward County Codes and Ordinances

Code of Conduct, Ordinance No. 2007-02 Broward County Employee Code of Ethics Act, Ordinance No. 2010-64 Cone of Silence, Ordinance No. 2001-15 Drug Free Workplace, Ordinance No. 92-8 County Business Enterprise Act, Ordinance No. 2012-13 Business Opportunity Act, Ordinance No. 2004-07 Living Wage Ordinance, Ordinance No. 2008-45 Local Preference, Ordinance No. 2004-29 Domestic Partnership, Ordinance No. 1999-18

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Source Regulation Prompt Pay, Ordinance No. 89-49 Procurement Code, Chapter 21 Procurement Code, Section 21.113, Disposal of Surplus Personal Property

Purchasing Division Accomplishments During the past year, the Purchasing Division renewed its commitment to being partners in procurement. The division’s focus on professionalism resulted in a number of recognitions, awards, accreditations and certifications. The Division continued implementing technology and organizational improvements to make procurement actions more effective and Division’s responsibility for providing customer care and outreach also remained a high priority.

Recognitions, Awards, Accreditations, and Certifications The Broward County Purchasing Division was recently recognized by National Association of Counties for its’ efforts to go green. The Broward County Purchasing Division affirms the County’s commitment to:

procure green products and services

lead by example

assist County agencies reduce the ecological impact of business operations

• Achieved the Award of Excellence in Public Procurement from the Florida Association of Public Purchasing Officers, Inc. for the 16th year in a row. The award recognized the Purchasing Division for organizational excellence in procurement by measuring its innovation, professionalism, e-procurement, productivity and leadership. Additionally, the Purchasing Division attained its re-certification from the National Institute of Governmental Purchasing’s (NIGP) for the Outstanding Agency Accreditation Achievement Award. This award recognizes excellence in public procurement by establishing a body of standards that are indicative of a solid purchasing operation through the demonstration of best practices and superior performance.

• Maintained active membership in the National Institute of Governmental Purchasing (NIGP), Florida

Association of Public Purchasing Officers, Southeast Florida Chapter of NIGP Inc. and Southeast Florida Governmental Purchasing Cooperative Group.

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• A majority of Purchasing Division agents hold national certification as Certified Professional Public Buyers (CPPB) or Officers (CPPO) through the Universal Public Procurement Certification Council. In FY 2011, 22 of 39 (or 56%) of professional purchasing staff were certified. For FY12, three additional purchasing agents attained CPPB professional certification; an increase of 14%, that resulted in 64% total certification for the Division. Additionally, five purchasing agents attained state certification as Florida Certified Contract Negotiators (FCCN).

Technology • Enhanced the Purchasing Division’s internal website in support of the Division’s efforts to provide

information to client agencies which includes: Domestic Partnership Ordinance Q’s and A’s; standardization web page; pre-solicitation web page; creation of a new Request for Letters of Interest / Request for Proposals repository; and a protest tracking web page.

• Created an on-line video tutorial for the Vendor Self-Service (VSS) application which serves as a virtual

walk-thru of the VSS application. The easy-to-use audiovisual tutorial allows the County to train the first time VSS users on their own time.

• Created ContractsCentral Procurement Module and converted data from the stand-alone Procurement

Milestone application data to ContractsCentral, providing Purchasing Division staff with a dashboard view to in process procurements and pending requisitions.

• Created ContractsCentral Vendor Performance Evaluation Module allowing client agencies to enter

vendor performance evaluation directly into the system and enabling users to view vendors past performance history.

• Re-designed the Prime Vendor Dashboard which integrates real time data between ContractsCentral,

Advantage, Small Business Directory, and Disadvantage Business Enterprise directory. The amalgamation of data from various sources allows users to have access to all completed performance evaluations with calculated averages. It also provides a view of all the sub-vendors that are used by the prime contractors.

• Created ContractsCentral Office of Economic and Small Business Development (OESBD) module which

provides the OESBD staff direct access to Vendor Goal Performance Evaluation for their assignments. It also provides for entry of the County Established Goals against requisitions by the OESBD staff.

• Created Task/Phase level reporting and evaluating capabilities for Fixed Contracts, Open-end Contract

Prime Vendors and Work Authorizations.

Organizational Improvements To enhance transparency and utilize technology, the Purchasing Division has established a Purchasing Division internet website link to a portal containing information documents utilized by Selection and Evaluation Committee members (a repository) in evaluating all proposers and ranking shortlisted

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proposers for final award of County contracts, resulting from the Committee-based procurement process. Some of the information documents contained in the portal are: Request for Letters of Interest/Request for Proposals submittals, Evaluation Matrix, Director of Purchasing Recommendation Memorandum, Office of Economic and Small Business Development Compliance Memorandum, Financial Review Memorandum, Litigation Review Memorandum, Shortlisting Ballot Tally Sheet and Individual Ballots, Presentation - Ranking Ballot Tally Sheet and Individual Ballots, Audio Recordings of Selection and Evaluation Committee Meetings, and Summary Meeting Minutes of Selection and Evaluation Committee Meetings.

• Continued expanding the P-Card program in partnership with Bank of America leveraging the 160 (or

1.6%) rebate basis points resulting in a rebate payment to the County in the amount of $329,005.78. • Increased professional development through strategic planning retreats with staff which included

segments to enhance purchasing processes and operational effectiveness. • Participated in a statewide hurricane exercise with the State of Florida Division of Emergency

Management. The Division’s Logistics Team also conducted a comprehensive hurricane tabletop training exercise in conjunction with the Broward County Emergency Management Division as part of the Division’s ongoing comprehensive emergency response training. With a combination of classroom instruction, Federal Emergency Management Agency courses, and tabletop exercises, the Purchasing Division has taken an active role in ensuring that staff is prepared to respond in the event of a required emergency activation.

• Specification Writing - Specifications are the cornerstone of all good solicitations. There are five types of

specifications: brand name or equal, performance, design, combination and qualified product lists. It is incumbent upon the Purchasing Agent to understand the various type of specifications to assist and collaborate with client agencies to create specifications that will allow all potential bidders to bid on a level playing field. A bid that is restrictive may prevent bidders with quality products or services from submitting a bid, or being rejected as non-responsive. A bid with specifications not adequately describing the County’s requirements, will possibly result in products or services bid that will not meet the County’s needs. It is critical that the purchasing agent distinguishes between restrictive specifications and ambiguous specifications to consistently ensure open and fair competition.

• Revised internal policies and procedures to provide guidance on when to reduce or waive bid bonds or performance and payment guarantees in an effort to support small businesses and increase participation in County projects, where the County has determined that a project is not of a critical nature and non-performance will not endanger public health, safety, property or economic loss to the County.

• Rightfax – The implementation of a centralized and organized fax delivery system replacing the prior

system. The system allows staff of the Purchasing Division to have their own fax number. All Purchasing

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Agents can manage the items they wish to receive directly. This saves time of other staff members, relieves duplication of work, and ensures responsibility for and security of documents.

Customer Service and Outreach • Achieved an overall rating of 4.12, out of a possible rating maximum of 5, utilizing a strategy of

collaboration with emphasis on accessibility, quality, and service. This improvement can be attributed to the concerted efforts by the Purchasing Division to find cost savings for our client agencies, reduce processing times and improving communications with our client agencies.

FY 2012 Annual Customer Satisfaction Survey Results by Section

** The Central Warehouse Operation was consolidated into Commodities and General Services in FY 2011.

• Held pre-advertisement meetings for the benefit of potential contractors and subcontractors about

future capital construction contracting opportunities with Broward County. Representatives from client agencies partnered with representatives from the Purchasing Division to discuss the Transit Division’s Bus Shelter Program that will result in multiple contracts and to provide information on the County’s requirements for construction contracts, conditions specific to using federal funding sources, and to educate contractors on how to avoid submitting flawed bid responses.

• Conducted monthly workshops in conjunction with the Office of Economic and Small Business Development on How to Do Business with Broward County. The workshops afforded an interactive environment for purchasing agents and small business owners to share information.

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• Participated in professional purchasing associations that emphasize education and best practices for purchasing professionals as well as continual vendor outreach efforts and networking events. The most recent vendor outreach and education effort was the Southeast Chapter of National Institute of Governmental Purchasing Reverse Trade Show.

• The Purchasing Division continues to provide customer service and outreach in support of the Living Wage Program by providing information through various channels of communication with client agencies, service contractors, other government and non-profit entities, service employee unions, the Living wage Advisory Board and other interested parties. In FY 2012, program activities continued to include:

o training presentations and informational sessions to Broward County staff and vendors o participated in client agency contractor start-up meetings for new Living Wage service

contracts o assistance, guidance, research, and reports to the Living Wage Advisory Board o living wage informational link updates on the Purchasing Division’s website and BC-Net to

keep client agencies and the vendor community informed, and o “help desk” services for Purchasing Agents, contract administrators, project managers and

service contractors requiring clarification or guidance on Living Wage contract compliance issues.

• Conducted 99 training classes, for approximately 1,000 employees, on delegated purchasing,

Requests for Letters of Interest, Request for Proposals, Advantage System Procurement, P-Card procurement, Contracts Central and Purchasing Division policies and procedures.

• Enrolled 1,273 new vendors in Vendor Self-Service (VSS) during FY 2012, providing vendors with a

24/7 online registration service. We currently have 6,269 vendors in VSS, which is 18% of our vendor total. There are currently a total of 34,837 vendors registered in the Broward County Vendor List.

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Financial Statistics/Procurement Activities for Fiscal Year 2012 For the purposes of this report, the terms award and purchases are used interchangeably and refer to any procurement document issued during the fiscal year (hereinafter referred to as FY). Procurement documents represent a commitment by Broward County to procure goods and services. The table below provides a detail explanation of the various types of purchases. With the exception of P-Cards, delivery orders, delegated purchases, exempt purchases and central purchases results in procurement documents being issued.

P-Cards All P-card purchases made through Broward County’s program Delivery Orders Purchase Orders from master agreement contracts issued by client agencies Delegated Purchases Purchases made by authorized Certified Agency Buyers up to $3,500 Exempt Purchases All procurements exempt from the Procurement Code Central Purchases1 Purchases made by the Purchasing Division greater than $3,500

Master Agreement Awards Strategic sourcing is a practice for continuously improving and re-evaluating the purchasing activity. It analyzes and assesses the components of a procurement to determine the best method of soliciting for the required supply or service. The use of Master Agreements (open-end) contracts is one of the methods utilized by the Purchasing Division to implement strategic sourcing and take advantage of economies of scale. It is critical for all intended users to participate when data is being gathered to develop the scope of services and determine the estimated quantities.

The Purchasing Division emphasizes the value of Master Agreements because they offer an efficient and economical method for purchasing frequently requested items. Once awarded, the client agencies are able to issue purchase orders (Delivery Orders) to the awarded vendor(s). Master Agreements are usually issued with an initial term of one year and a stated number of optional renewal periods, usually two one-year periods, subject to vendor acceptance and determination that renewal is in the best interest of the County.

During FY 2012, three hundred fifty-eight (358) replacement or new Master Agreements were awarded by either the Board of County Commissioners or the Director of Purchasing for a potential initial spend on these contracts within the first year of $135,467,816. Figure No. 1a and 1b shows the quantity and initial term value of the Master Agreements awarded during that period.

1Open-end, multi-year contract awards are not included.

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The number of DO’s issued from established Master Agreements, as shown in Figure 2a is 8,656, and the actual expenditures (total dollars issued on DO’s) is $312,500,000, as shown in Figure 2b (see below).

Besides Master Agreements issued during FY 2012, there are those Master Agreements issued in prior fiscal years still active, due to its multi-year optional renewal term has been exercised. As of September 30, 2012, there were 816 active Master Agreements available for use by Broward County agencies, providing for the purchase of commodities, construction, general and professional services.

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A total of 62,3332 purchases were processed in FY 2012, for a total award amount of $1,145,793,3733. The Board of County Commissioners approved $1,003,965,724 in purchases and the Director of Purchasing approved $121,264,788 in purchases. Included in the total are purchases processed with P-Cards which totaled $20,562,861 for FY 2012, of which Broward County received rebates totaling $329,0064. Figures 2a and 2b summarize the methods utilized for the Purchasing Division’s activity for FY 2012.

2This figure does not include Master Agreement awards.

3This amount is actual expenditures based on contract awards; it does not include Master Agreements potential award dollars, expenditures and transfers to other governmental

agencies made through direct vouchers which totaled an additional $1,047,108,147 and subsequent change orders, amendments or cancellations. 4The basis points for the FY 2012 P-Card rebate is 1.6% (60 basis points) and rebate figure includes both P-Cards and e-payables.

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Awards by Agency The following chart delineates the transactions categorized by client agencies during FY 2012.

Figure 3a Contract Awards by Agency

Agency Count5 Award $ $ in Millions % Aviation Department 1,218 $520,947,518 $520.9 45.5% Public Works Department 3,891 $375,707,473 $375.7 32.8% Department of Transportation 1,869 $75,381,126 $75.4 6.6% Finance & Administrative Services Department 649 $53,152,921 $53.2 4.6% Port Everglades Department 453 $47,753,940 $47.8 4.2% Boards & Other Agencies 241 $18,379,401 $18.4 1.6% Libraries, Parks and Cultural 1,019 $17,493,077 $17.5 1.5% Human Services 485 $9,110,676 $9.1 0.8% Environmental Protection & Growth Management 501 $3,876,538 $3.9 0.3% All Other Agencies 667 $2,600,677 $2.6 0.2% County Administration 92 $827,165 $0.8 0.1% All P-Card Purchases 51,248 $20,562,861 $20.6 1.8% Total* 62,333 1,145,793,373 $1,145.8 100.0%

Figure 3b

Contract Awards by Agency

5Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.

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Vendor Participation The following chart delineates the awards and expenditures with the top ten vendors during FY 2012.

Figure 4a Contract Awards and Expenditures by Vendor

Vendor Name Count6 Award $ $ in

% Odebrecht - CFE Joint Venture 1 $225,914,661 $225.9 19.7% Tutor Perini Fort Lauderdale-Hollywood Joint Venture 1 $179,868,000 $179.9 15.7% James A Cummings Inc. 1 $178,760,000 $178.8 15.6% Moss & Associates LLC 1 $54,729,063 $54.7 4.8% North American Bus Industries (NABI) 106 $29,267,660 $29.3 2.6% Arthur J Gallagher Risk Management Services 27 $27,958,618 $28.0 2.5% Turner Construction Company 1 $25,175,738 $25.2 2.2% Stiles Corporation 1 $23,000,000 $23.0 2.0% Broward County Sheriff's Office 12 $22,389,694 $22.3 1.9% Sunshine Cleaning Systems Inc. 48 $22,209,602 $22.2 1.9% All Other Vendor Awards 62,134 $356,520,337 $356.5 31.1% Total* 62,333 $1,145,793,373 $1,145.8 100%

Figure 4b Contracts Awards and Expenditures by Vendor

Contracts Awarded to Vendors by State, County and City Broward County awarded 90% of its contract dollars to vendors located within the State of Florida and 58% to local, Broward businesses in FY 2012.

6Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.

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Figures 5a and 5b below represent the dollars spent by Broward County within the State of Florida and other jurisdictions across the United States and Canada. Figures 5c and 5d represent the dollars spent within Broward County in comparison with other Florida Counties. Figures 5e and 5f represent the dollars spent in various cities within Broward County.

Figure 5a Contracts Awarded to Vendors by State*

State Count7 Award $ $ in Millions % Florida 9,102 $1,033,949,789 $1,033.9 90.2% Alabama 124 $29,319,012 $29.3 2.6% Maryland 40 $10,033,288 $10.0 0.9% California 210 $8,548,825 $8.5 0.7% Texas 350 $7,103,340 $7.1 0.6% North Carolina 68 $6,420,371 $6.4 0.6% Ohio 63 $5,988,329 $6.0 0.5% All Other States and Jurisdictions 1,128 $23,867,558 $23.9 2.1% All P-Card Purchases8 51,248 $20,562,861 $20.6 1.8%

Total** 62,333 $1,145,793,373 $1,145.8 100.0%

Figure 5b

Contracts Awarded to Vendors by State

7Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.

8Includes purchases made with vendors who are in Florida as well as outside Florida.

*Vendor locations per the Advantage Procurement System at the time of purchase order issuance.

**Value differences due to rounding.

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Figure 5c

Contracts Awarded to Vendors by County* Florida Counties Count9 Award $ $ in Millions %

Broward 6,837 $667,757,515 $667.8 58.3% Miami-Dade 898 $297,814,600 $297.8 26.0% Outside Florida 1,973 $91,675,790 $91.7 8.0% Palm Beach 395 $35,508,100 $35.5 3.1% Other Florida Counties 982 $32,415,765 $32.4 2.8% All P-Card Purchases 51,248 $20,621,603 $20.6 1.8% Total** 62,333 $1,145,793,373 $1,145.8 100.0%

Figure 5d Contracts Awarded to Vendors by County

9Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.

*Vendor locations per the Advantage Procurement System at the time of purchase order issuance.

**Value differences due to rounding.

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Figure 5e Contracts Awarded to Vendors by City

Broward County City Count10 Award $ $ in Millions % Fort Lauderdale 2,372 $541,179,276 $541.2 47.2% Oakland Park 242 $25,696,331 $25.7 2.2% Pompano Beach 698 $22,482,600 $22.5 2.0% Deerfield Beach 210 $19,309,429 $19.3 1.7% Hollywood 533 $13,691,685 $13.7 1.2% Dania Beach 152 $7,714,872 $7.7 0.7% Davie 693 $6,138,992 $6.1 0.5% Other Broward County Cities 1,937 $31,544,330 $31.5 2.8% Outside Broward County 4,248 $457,472,997 $457.5 39.9% All P-Card Purchases 51,248 $20,562,861 $20.6 1.8% Total* 62,333 $1,145,793,373 $1,145.8 100%

Figure 5f Contracts Awarded to Vendors by City

10

Includes: P-Card transactions, delivery orders, delegated purchases, exempt purchases and central purchases.

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Statistical Comparison with Previous Years Contract Awards Figures 6a through 6c reflect the comparative data for contract awards since FY 2010. Overall, trends are consistent with the economic environment over the past three fiscal periods for the most part. Major Broward County capital outlay projects such as the construction of a new courthouse, airport improvements and renovations, and water and sewer improvements contributed to the sharp incline in the numbers for FY2012.

Figure 6a Comparison of Contract Award Dollars by Method

Purchasing Contract Award Dollars FY 2010 FY 2011 FY 2012 Delivery Orders* $314,238,320 $321,627,332 $312,493,792 Delegated Purchases $2,551,114 $2,142,995 $2,207,865 Exempt Purchases $6,382,768 $5,965,901 $5,647,700 Central Purchases $247,599,105 $215,924,417 $804,881,155 P-Cards $14,411,233 $14,018,518 $20,562,861 Total* $585,182,540 $559,679,163 $1,145,793,373

Figure 6b

Comparison by Approval Authority Authority Level FY 2010 FY 2011 FY 2012 Board approved $452,776,033 $424,856,980 $1,003,965,724 Director of Purchasing approved $117,995,274 $120,803,664 $121,264,788 P-Cards $14,411,233 $14,018,518 $20,562,861 Total** $585,182,540 $559,679,163 $1,145,793,373

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Figure 6c Comparison of Contract Award Dollars Over Time

**Value differences due to rounding.

*Delivery Orders come from Master Agreements, refer to page 16

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Vendor Awards by Region Awarding contracts to vendors within Broward County and the State of Florida has remained a focus for the Purchasing Division to support economic vitality within our region. Of the total procurement dollars expended in FY 2012, $1,033,949,789 or 90% was awarded to vendors within the State of Florida and $667,757,515 or 58% of the total procurement awards went to local Broward County vendors.

Figure 7a Comparison of Regional Contract Award Dollars

Vendor Awards FY 2010 FY 2011 FY 2012 Expenditure within Florida $445,641,816 $438,597,579 $1,033,949,789 Expenditure within Broward County $315,093,306 $308,616,418 $667,757,515

Figure 7b Comparison of Regional Contract Award Dollars

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Value Added Cost Savings The Purchasing Division undertook the initiative to realize additional cost savings above and beyond those savings realized through its standard procurement activities. This was accomplished through various value added procurement strategies and staff initiatives such as strategic sourcing, cooperative purchasing voluntary price reductions, rebates, skilled negotiations, cost avoidance and due diligence in researching the open market for the best product at the best value. The opportunities for value added cost savings in FY 2012 improved due to:

• an upward trend on the number of fixed contract awards and transactions from the previous year, • an upward trend on the number of open-end, multi-year (Master Agreements) contract awards from

the previous year, and • an increase in the number of larger complex, capital outlay projects.

Figure 8a Comparison of Value Added Cost Savings

Value Added Cost Savings FY 2010 FY 2011 FY 2012 Commodities $120,024 $88,943 $131,412 Construction $342,277 $33,928 $4,093,386 Negotiations $21,532,603 $3,128,347 $13,288,684 Centralized Centers (Aviation/Port Everglades) $41,872 $43,237 $2,516,029 P-Card Rebates $143,915 $360,358 $329,006 Office Depot Rebates $7,018 Total* $22,187,711 $3,654,814 $20,358,517

Figure 8b

Comparison of Value Added Cost Savings

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Procurement Operations Procurement Processing Times The Purchasing Division continues to focus on strategic procurement strategies to improve and optimize efficiency to its’ operations and processes. Fundamental to efficiency is the timely procurement of goods and services. The procurement method utilized and related processing time vary dependent upon the scope and complexity of the procurement request, the nature of the goods and services being purchased, the responsiveness of the client agency and the level of available agent resources.

The processing times in Figure 9a are based on a procurement cycle from the entry of requisitions by client agencies to the issuance of a transactional/ordering document, i.e., delivery order, purchase order.

As seen in Figure 9b, procurement processing time in FY 2012 improved by 14% or 14 days since FY 2010, and by 8% or 7 days since FY 2011. In comparing the data for all fiscal periods, it is most noticeable that process improvements were achieved in the majority of all areas, with the greatest improvement represented in the formal competitive process arena where the dollar threshold is $50,000 and greater.

In comparison to FY 2010, strategic sourcing initiatives, benchmarking and reporting mediums, incorporation of best practices into our governance code, and policies and procedures have served to decrease the number of awards required to be processed and has improved overall procurement processing time.

Figure 9a Comparison of Processing Times by Award Amount

FY 2010 FY 2011 FY 2012 # of

Awards Average Days to

Process # of

Awards Average Days to

Process # of

Awards Average Days to

Process

Less than $50,000* 542 59.86 373 56.42 466 59.72 Non-Construction $50,000* to $250,000 227 101.19 183 96.41 295 83.25 Construction $50,000* to $250,000 33 177 15 138.27 24 114.13 Non-Construction Greater than $250,000 53 291.4 38 174.95 70 151.90 Construction Greater than $250,000 38 266.08 45 265.53 44 220.43 Total 893 97.65 654 90.76 899 83.94

*The Procurement Code was amended on March 8, 2011, increasing the formal solicitation threshold from $30,000 to $50,000. This fiscal year is the first year the number of awards and average days to process purchases on a per category basis only includes the revised threshold of $50,000.

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Figure 9b

Overall Average Processing Times

Figure 9c Comparison of Processing Times by Process Method

FY 2010 FY 2011 FY 2012

# of Awards

Average Days to Process

# of Awards

Average Days to Process

# of Awards

Average Days to Process

Conventional Construction and Two-Step (Design/Bid/Build) 19 224.16 21 182.19 26 192.38

• Step 1 - Short Listing 208.89 128 249 • Step 2 - Bid Proposal 226 162 226

Construction Two Step Hybrid (Construction Manager @ Risk Modified) 9 434.89 3 290 1 475 In-house Construction (Invitation For Bid) 45 205.58 27 172.56 36 132.88 Quote/Bid Process 565 94.33 418 86.59 589 99.46 Request for Letters of Interest or Request for Proposals 35 386.46 25 356.6 41 264.15 Total 673 125.18 494 110.25 693 114.97

Figure 9c provides an in-depth comparative analysis of processing time by source selection method. Despite a 40% increase on the number of awards this fiscal year from last fiscal year, the Purchasing Division managed to process the total of amount of issued solicitations at almost the same pace as last year. This analysis illustrates and supports sustainability of a process improvement trend since FY 2010. For FY 2012, the highest level of optimization in processing time is being achieved in Request for Letters of Interest or Request for Proposals procurements. In particular, a comparison between FY 2011 and FY 2012 demonstrates improvement in processing time for the procurements utilizing:

• In-house Construction (Invitation for Bid) - 40 days or 23% improvement • Request for Letters of Interest or Request for Proposals - 92 days or 26% improvement

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Furthermore, in FY 2012 the process times for procurements involving Conventional Construction and Two-Step (Design/Bid/Build), Construction Two Step Hybrid (Construction Manager @ Risk Modified), and Quote/Bid Process, increased by 37% due to the fact that the Purchasing Division processed 39% more of these types of procurements compared to last fiscal year. So the increase in processing times is commensurate to the increase of workload.

The processing times in Figure 9c are based on a procurement cycle from the issuance of a sourcing competitive document to award, i.e., Quotes, Invitation for Bids, Request for Proposals and Request for Letters of Interest. The number of awards in Figure 2a, Figure 3a, Figure 4a, Figure 5a, Figure 5c and Figure 5e are only transactional based/ordering documents, i.e., P-Cards, delivery orders, delegated purchases and exempt purchases.

Figure 9d

Average Processing Times by Process Method Over Time

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Protests and Objections Inherent in any open competitive procurement process are two constants: 1) decision making that aligns with prescribed ordinances, policies and processes including decisions rendered in an equitable, ethical, and consistent manner; and 2) respondents to solicitations who may challenge the decisions and the process.

On March 8, 2011, the Board of County Commissioners revised the Procurement Code to provide for a three business-day Objection Period in addition to the five business-day Protest Period which had already existed. Objections can involve matters of grievance concerning a ranking decision, similar to a protest of the ranking decision, or they can bring new or additional information which the objector has determined to be useful to the process. Objection communications do not require a filing fee, nor is standing an eligibility issue to file an objection. In 2011, 5 Objections were filed. In 2012 also, 5 Objections were filed.

Beyond the Objection communication, the longstanding Protest procedure incorporates specific requirements for validity and eligibility including a filing fee as well as an appeal fee should that provision be exercised by a proposer. The Purchasing Division has processed 16 new protests during Calendar Year 2012, with 5 previous protests already in process for a total of 21. Sixteen protests were resolved in 2012 with the County prevailing in all 16 cases. This 100% protest success experience in 2012 validates consistent adherence to established procurement policy and regulations in the procurement processes. Since the Purchasing Division began keeping records in 2003 Broward County has prevailed in all protest rulings except two, which is less than 1% of all protests received.

In 2009, the Board of County Commissioners approved the Purchasing Division’s recommendations for changes in the Procurement Code affecting the processing of protests. The Procurement Code was again refined in 2010 to further clarify the process for handling protests. In both cases, the Procurement Code revisions were designed to expedite award of Broward County projects while providing vendors with due process for redress of grievances.

The number of protests being filed continues to reflect a declining trend. From calendar year 2009 to 2012, there has been a substantial decrease in the number of protests continuing an overall downward trend from the high water mark for protests in 2007 when 48 were processed. From 2009 through 2012, protests have decreased steadily each year establishing a cumulative 60% decrease in protests since 2009.

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Figure 10a Protests by Calendar Year

Figure 10b Protest by Calendar Year

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Delegated Purchasing Authority Audit Program The Delegated purchasing authority by the Director of Purchasing is a tool used to increase efficiency in the Certified Agency Buyer (CAB) and the P-Card Programs. As part of its oversight responsibility, the Purchasing Division conducts audits to manage the CAB and P-Card programs in accordance with the Procurement Code and the Purchasing Division’s internal control procedures. The audit program also allows the Purchasing Division to continuously evaluate how to improve and expand delegated authorities. In addition to compliance, the physical audit of delegated purchasing is conducted for CABs and P-Card holders and approvers, in order to provide for ongoing training to help employees meet and maintain audit standards. CAB audits are performed on an annual basis with the exception of those client agencies that obtained a satisfactory audit finding in the previous audit year. Agencies that receive satisfactory or minor audit finding are audited bi-annually, rather than on an annual basis.

Purchasing staff conducted 16 CAB audits in FY2012. The findings for the completed CAB audits follow:

• two agencies (12.5%) were found to be fully compliant with procurement policies,

• four agencies (25%) were found to have minor procurement policy violations,

• two agencies (12.5%) were found to have major procurement policy violations, and

• eight agencies (50%) audits in process.

The P-Card auditor reviews P-Card purchases continuously on a monthly basis. The P-Card audit program ensures cardholder and approver compliance with policy and identifies violations, such as splitting purchases, using the P-Card for personal use or not buying appropriately from an existing Master Agreement. In FY 2012, P-Card audit reviews were performed for 906 active card holders. Violations identified during these audits resulted in the cancellation of 23 P-Cards. Fifteen P-Cards previously cancelled were reinstated during FY 2012.

The Delegated Authority Audit Program minimizes the risk of financial loss to Broward County. Most importantly, this audit program is the Division’s principle method for evaluating, collecting data and information, interacting with and educating client agencies on appropriate purchasing practices that uphold the procurement standards established in Broward County’s policies and procedures.

Organizational Development Program The purchase of goods and services is almost always a collaborative process between the initiating client agency and the Purchasing Division. To support this collaboration, the Division provides specialized training and outreach to ensure consistency in procurement activities. The Purchasing Division’s training program is committed to tailoring learning to client agency needs and is focused on building competent, consistent and responsive purchasing staff. In FY 2012, the Purchasing Division conducted 79 classes and trained 752 Broward County employees. This 31% decrease in the number of employees receiving Purchasing-related training represents a return to previous training levels because no new training were introduced during FY 2012. The classroom training schedule was further augmented by 20 presentations delivered by purchasing managers and agents to client agencies and external

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organizations, which was attended by approximately 250 members of the vendor community and County employees.

Centralized, instructor-led procurement training is delivered by purchasing experts. The Purchasing Division’s training program:

• increases knowledge of procurement processes, • enhances productivity and quality of work, • improves individual and organizational performance; getting the goods and services into the

hands of employees as efficiently as possible, • communicates purchasing policy requirements to Broward County agencies, and • Instructs outside agencies (e.g. small businesses) “How to Do Business with Broward County”.

The Purchasing Division is the only Broward County agency currently providing instructor-led AMS Advantage System training. Demand for AMS Advantage Procurement I and II classes fell from 20 classes held in FY 2011 to six held in FY 2012; however, the number of employees completing this training increased from 120 in FY 2011 to 160 in FY2012. Advantage Procurement I and II classes are required for designated CABs and approvers performing delegated purchasing within client agencies. In FY 2012, 90 employees received CAB certification training.

The P-Card Program, also coordinated by the Purchasing Division, encourages all cardholders and approvers take the online tutorial to remain in good standing. In FY 2012, 197 employees received classroom P-Card training; 35 employees completed the online tutorial, which is a 38% decrease from FY 2011. The online tutorial is primarily being used by card holders and approvers who are required to provide proof they’ve attended retraining to get their P-Card privileges reinstated.

The Purchasing Division continues to invest in the professional development of its personnel. In FY 2012, Purchasing Division staff attended 70 training classes sponsored by the National Institute of Governmental Purchasing (NIGP). The NIGP is a nonprofit educational and technical organization of governmental buying agencies across the United States. As a result of staff participation in NIGP-sponsored training, three purchasing staff achieved Certified Professional Public Buyer designation.

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Central Warehouse Operations

Surplus Property Disposal The Purchasing Division’s Central Warehouse serves as the centralized processing center for sale and disposal of all Broward County surplus property. The centralized processing of surplus provides accurate disposal records for all property while also ensuring compliance with Florida Statutes relating to the disposal of surplus. The Central Warehouse Operations also includes the management of Broward County’s donation program, making property available to local non-profit organizations as well as other governmental entities. Computers donated to local non-profit organizations are being utilized to provide education and career opportunities to Broward County residents.

The Central Warehouse Operations coordinated and processed $527,326 in surplus property sales in FY 2012, which is a decrease from FY 2011. This decreasing trend in surplus sales is attributable to the reduction in the amount of vehicles and equipment designated for replacement during the fiscal period.

Figure 11 Surplus Sales Dollars by Fiscal Year

Emergency Preparedness Operations Much of Broward County’s emergency logistics operations are coordinated through the Purchasing Division’s Central Warehouse Operations. During hurricane activation, the Purchasing Division is responsible for the preparedness and operation of Broward County’s emergency supply County Staging Area (CSA), which includes the receipt and distribution of Federal Emergency Management Agency (FEMA) supplies that are used to stock multiple Points of Distribution located throughout the County for distribution to the public. In addition, the County’s hurricane supply locker and Emergency Distribution Center warehouse operation is maintained. Direct support is provided to the Broward County Human

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Services Department by Central Warehouse Operations by providing logistical support for the storage and distribution of supplies and equipment needed to activate the County’s Special Needs Shelters.

Community Economic Development The Purchasing Division supports Broward County’s Vision for Unlimited Economic Opportunities through several procurement program initiatives designed to stimulate the growth of local small business and advance employment opportunities and equitable wage rates. In FY 2012, the Purchasing Division continued to actively participate in outreach programs with the Office of Economic and Small Business Development for local businesses and provide a monthly report to the Small Business Advisory Board on matters relevant to the Board’s mandate. In addition, procurement programs include strategies to secure state and federal funding sources to stimulate the advancement of local projects in support of economic growth, while improving services to the citizens of Broward County.

Certified Vendor Participation Program Certified businesses fall into one of the following participation programs: Small Business Enterprises, County Business Enterprises or Disadvantaged Business Enterprises. A total of $51,042,021 was awarded to prime contractors that are certified businesses. This amount represents 4% of total awards of $1,145,793,373.

Figure 12 Awards to Certified Prime Vendors11

11 Includes vendors certified prior to the 2012 recertification process.

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Living Wage Program The Living Wage Ordinance was enacted by the Board of County Commissioners on October 8, 2002 and fully implemented on October 1, 2003 to promote the creation of full-time, permanent jobs that allow Broward County citizens working in the service industry to support themselves and their families with dignity while also benefitting the local economy. The Ordinance seeks to address the high costs of employee turnover that negatively impacts Broward County taxpayers and the services provided to its residents. As of September 30, 2012, a total of 73 Living Wage applicable contracts were open and active.

In FY 2012, the Purchasing Division Living Wage Program activity and reports focused on the following topics and matters of interest including: new contract awards, fiscal impacts, administrative efficiencies, and customer service and agency training.

New Contract Awards — In FY 2012, 19 new Living Wage service contracts were awarded with a total estimated contract value of $19,128,807. These Master Agreements were for the following services covered under the Living Wage Ordinance including, but not limited to: routine maintenance services, janitorial services, clerical office work (temporary personnel services), passenger transportation and automobile parking services, and landscaping, lawn, and agricultural services.

Fiscal Impact — Of the 19 new Living Wage Master Agreements awarded in FY 2012, no fiscal impacts were determined attributable to Living Wage requirements based upon the bid/proposal submittal data provided by the awarded service contractors.

Exemptions from Reporting — The Living Wage Ordinance allows service contractors to obtain an exemption from the requirement to submit payroll reporting to the using agency’s Contract Administrator every six months during the term of the contract, if it demonstrates to the satisfaction of the Director of Purchasing that they have consistently paid their employees the Living Wage rate for at least one year prior to entering into the service contract or wages subject to a collective bargaining agreement (e.g. union contract). In FY 2012, all 11 vendors who applied for the exemption were approved. Up-to-date, 40 vendors have been granted exemptions from reporting by the Director of Purchasing.

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Major Projects

Site Preparation and NAVAIDs Infrastructure – This project provides for the embankment and major utility infrastructure for the new South Runway at the Fort Lauderdale-Hollywood International Airport. The project includes approximately 8,000,000 cubic yards of embankment and a mechanically stabilized earth wall system; installation of storm drainage structures; pavement demolition; dynamic compaction; removal of water, sewer, natural gas and jet fuel pipelines; and the installation of airfield electrical duct banks and conduits associated with the development of future navigational aids

in support of the overall South Runway Expansion program.

The bid was advertised in January 2012; throughout February and March, 11 in-depth Addenda were issued, answering approximately 400 vendor questions. The bids were opened on March 21, 2012 and despite receiving two protests, this project was fast-tracked and awarded by the Board on April 24, 2012 in the amount of $225,914,661. The Aviation Department, Purchasing, OESBD, Risk Management, and many others worked diligently to move this project through the bid process to award in order to maintain the schedule and meet the goal of commissioning the Airport’s new South Runway in September 2014.

Taxiway C West and South Apron Reconstruction – This project provides for the reconstruction of Taxiway C from the end of Runway 9L to Taxiway D. It also includes the mill and overlay of a portion of Taxiway D and will add pavement, pavement markings, signage, and the demolition and protection of existing utilities. The reconstruction of Taxiway C West is critical for the Airport because its completion is tied to the decommissioning of Runway 13-31, when the Airport becomes a single runway functioning Airport. This project is imperative to allow the new South Runway contractor to proceed without delay and provide a dual taxiway system for Runway 9L-27R, which reduces congestion on the airfield. The Board awarded this project on June 5, 2012 in the amount of $8,309,214.

Airstair Units and COBUS Airfield Buses – These two projects provide four Airstair Units and two COBUS Airfield Buses to allow passengers to quickly and safely enplane/deplane and travel between aircraft parked away from the terminals and the terminal buildings at Fort Lauderdale-Hollywood International Airport. The Terminal 4 Gate Replacement Expansion construction projects will close two concourse gates in December 2012 for approximately two years to permit work on Terminal 4 and surrounding areas. During the time these gates are unavailable, it is necessary to provide an alternative method to move passengers between remotely parked aircraft and the terminal buildings.

The sole source bid for Airstair Units was awarded by the Board on June 26, 2012 in the amount of $924,000. The sole source bid for COBUS Airfield Buses was awarded by the Board on August 21, 2012 in the amount of $1,080,000.

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Terrazzo Floors at Concourses B, C and E – This project provides for the removal of existing carpet and the installation of epoxy terrazzo flooring down the center aisles of the concourses, concourse exit lanes and restroom vestibules at the Fort Lauderdale-Hollywood International Airport. The terrazzo flooring in Concourses B and C will receive multiple terrazzo color patterns and Concourse E will incorporate artwork in the terrazzo floor.

This project supports the Board’s Vision of “Unlimited Economic Opportunities” and the objective to enhance and renovate Terminals 1, 2 and 3 at the Airport. The

Board awarded this project on June 26, 2012 in the amount of $1,379,171.

McIntosh Roadway Improvements - This project provides all labor, materials, equipment and services for improvements to McIntosh Road, located in Southport at Port Everglades; total contract value $7,016,385.66. This project consists of construction of additional traffic lanes, drainage, adjustment of utilities, striping, overhead sign structures, lighting and relocation of checkpoints to improve truck access to the container terminal operations in Southport as well as the proposed Intermodal Container Transfer Facility. This project is included in the 2009 Port Everglades Master/Vision Plan update approved by the Board on March 1, 2011 (Item No. 4), and is a critical element for the Port's three priority projects.

This project supports the Board's Vision of "Unlimited Economic Opportunities"; its Goal No. 3 to "increase the economic strength and impact of Port Everglades, the Broward County Convention Center and the Fort Lauderdale-Hollywood International Airport in a sustainable manner balancing economy, environment and the community.

The New Broward County Courthouse – This Project provides for the construction of a new Broward County Courthouse in downtown Fort Lauderdale. The project consists of a new high-rise tower (approximately 700,000 square feet), demolition of the existing Central and West Wings, and a new landscaped plaza. The construction of the project will be deliberately phased and planned so as to ensure there is minimal interruption of daily courthouse operations in the existing structures. The new Courthouse and east wing

renovations are scheduled for completion in 2015.

The Board approved the project on June 12, 2012 in the amount of $178,760,000. This project supports the Board’s Vision of “A Pristine, Healthy Environment” by the provision of open space, and a sustainable green building.

North County Neighborhood Improvement Project, Northeast Quadrant, Bid Package 10 – This project provides for the construction services (labor, materials and equipment) to install water and sewer systems, paving, drainage, sidewalks and landscaping improvements, as specified in the Annexation

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Agreement with the City of Pompano Beach, to implement the annexation of the area known as Pompano Beach Highlands, located within the boundaries of Dixie Highway on the west, NE 54 Street on the north, NE 17 Avenue on the east and NE 46 Street on the south. The Agreement enables the City of Pompano Beach to prepare for the provision of municipal services to the community and for the continuation of planned neighborhood improvement projects. The project was awarded by the Board on December 6, 2011 in the amount of $10,558,209.50.

UAZ 207 Lighthouse Point 12-Inch Water Main and 16-Inch Force Main Improvements – This project provides for all tools, equipment, materials, supplies and manufactured articles and all labor necessary for the replacement of approximately 4500 linear feet of 16-inch force main and fire protection enhancement through the installation of approximately 4,200 linear feet of 6 through 12-inch water main installation in the City of Lighthouse Point, Florida. The project will replace an existing faulty force main and water main to improve water pressure flow for fire protection in the City. The project was awarded by the Board on November 8, 2011 in the amount of $1,156,817.00. Park Improvements and Construction - This project provides an all-inclusive master agreement for the construction and/or improvements of parks facilities. Contract Amount: $4,668,171.32 per year. As a result of the County’s procurement method at least five municipalities are piggybacking the contract at this time. This is expected to result in cost savings to the County as administrative costs will be low as the County will not need to solicit quotations for these projects. The project was awarded by the Board on August 21, 2012 in the amount of $4,668,171.32 per year.

Test and Balance Services – This project provides test and balance of HVAC systems. These services include field testing, measuring, adjusting, balancing and recording of each component of the HVAC system until the system performs as it was intended. Benefits include reduced energy consumption, reduced maintenance costs, and improved indoor air quality. This is a new contract for the County as these services were previously subcontracted under other existing contracts. The project was awarded by the Board on September 27, 2012 in the amount of $229,013.74 per year.

Organizational Focus for Fiscal Year 2013 As we recognize and enjoy our major achievements, accomplishments, and milestones of the past fiscal year; implementing a business plan, streamlining processes, re-organization, and leveraging technology are the primary organizational objectives for this upcoming fiscal year. The collection of data and information through performance measures, procurement and contract management software systems and applications, customer service survey, self and organizational assessments, benchmarks and trends will continue in order to analyze and make the necessary improvements.

Future growing demands and expectations is anticipated, thus the status quo is not an option. The organizational focus is to continue to use strategic strategies to accomplish our mission, build flexibility and become a nimble, fluid organization to adapt and respond to time sensitive or increasing amount of procurements, and progress as a Division. Leveraging our current assets (operational dollars, personnel, technology, knowledge, experience, information) contained or allocated to the Division against our liabilities and needs (proper skill sets, resources, training, process, and systems integration) are critical

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to maximizing efficiency and performing at an optimum level. Anticipated results and outcomes are to incorporate best practices standards into our policies, procedures and processes that will guide and facilitate us to continue to be a high performing organization, foster a positive and productive work environment, and achieve cost savings for the County. Therefore, the key focus areas for FY 2013 include:

• creating a strategic business plan for the Division to identify and clearly define our objectives to meet the needs of our clients

• implementing an e-bidding system to electronically send out notifications, post solicitations, and receive responses over the internet to become more efficient, reduce cost, reduce errors, and increase compliance

• Improving our P-Card program by automating the approval transaction process for both the card

holder and approver

• Increasing P-Card single transaction limit

• Increasing delegated purchasing authority threshold

• completing the re-organization of the Division to enable transformation of procurement to support strategic sourcing objectives to leverage client agencies’ demands and achieve best value (meeting client agencies’ needs in the most cost effective, efficient, and timely manner)

• deploying technology to meet current and future business needs of both internal and external customers (e.g. Enterprise Resource Planning , public records request and monthly utilization reporting of prime contractors and subcontractors)

• enhancing the Purchasing’s web-based enterprise-wide contract administration application (Contracts Central) to support the Purchasing Division and client agencies’ staff with contract lifecycle management, i.e. managing contracts, contract compliance, contractor performance, contract amendments

• executing succession plan strategies to hire, train, and develop new employees to replace certain current employees that are scheduled to retire within the next several years to prevent gaps in operational effectiveness, and

• investing in current staff by providing training, growth opportunities and equitable compensation to maintain employee retention.