DISTRICT II ANNUAL MEETING EXPO OCTOBER 14 17
DISTRICT II ANNUAL MEETING & EXPO OCTOBER 14 - 17, 2018 OCEAN CITY, MD 1
INNOVATIVE CONTRACTING FOR RESEARCH GOODS AND SERVICES 2
THE CHALLENGE • • • 3 PURCHASING TAKES TOO LONG DON’T TELL ME HOW TO SPEND MY MONEY WHY DO I NEED A JUSTIFICATION SOLE SOURCE IS EASIER THAN COMPETITION COLLABORATIVE – DON’T WANT PURCHASING TO IMPACT RELATIONSHIP CONTRACTS DON’T COVER NEW RESEARCH
Process Improvement Balancing research needs with legal requirements Problem Statement: How can we reduce unnecessary administrative burden while following the law? 4
DISCOVERY – LEAN PROCESS 5
Process improvement Balancing research needs with legal requirements 6 Challenge Observations Takes too long Entire cycle time from funding to delivery (includes PI negotiations and collaboration) Collaboration Invested Justification No value to PI –supplier created Sole source easier Supplier created – RFP takes months No contract Buyers negotiating terms
Process Improvement Balancing research needs with legal requirements 7 Researcher identifies and negotiates for highly specialized product/equipment Admin resubmits requisition Admin enters high dollar requisition PSDS buyer rejects requisition – law requires quotes or sole source form Frustrated researcher completes sole source form PSDS buyer negotiates complex terms & conditions for each purchase PSDS buyer completes PO and product/equipment lead time begins Researcher receives item
Process improvement Balancing research needs with legal requirements 8 Observations Objectives Entire cycle time from funding to delivery (includes PI negotiations and collaboration) Create contracts to reduce purchase cycle time Collaboration/Invested Engage more suppliers – more often (Open Enrollment) Justification/ No value to PI Eliminate Supplier created – RFP takes months Contract purchases autocreate PO’s Buyers negotiating terms Include terms as condition of award
Process Improvement Our Solution Researcher identifies and negotiates for highly specialized product/equipment 9 Admin enters high dollar requisition – System autocreates PO and delivers to supplier Researcher receives item
Process Improvement Our Solution The number of sole source POs has dropped 97%. Sole source procurements take up to two weeks to complete [VALUE]% FY 15 10 FY 16 [VALUE]% FY 17 FY 18
Process Improvement Our Solution R&D Contracts: • 120 publicly competed contracted vendors – and growing. This means: • 3 rd generation of open enrollment allows us to keep pace with R&D • Competition requirements met - reducing administrative burden of sole source • Contract purchases under $50 k automatically approve - reducing PO cycle time • Suppliers agree to terms & conditions - eliminating unnecessary negotiation • Suppliers are managed – minimum discounts, negotiated shipping and payment terms • Bonus: Added 10 catalogs - enabling P 2 P 11
Process Improvement Innovations • Open enrollment – Addresses rapidly changing needs or removes barriers to SWa. M’s • Signed agreement with response – condition of award • No additional contracts - reduction of administrative burden • Quickly enables P 2 P program • Supplier relationship management • Additional services – executive search, transition consulting, etc 12
Process Improvement Our Solution 13
Process Improvement Our Solution 14
NAEP Journal Article 15
- Slides: 15