Sourcing Event Tool Kit Multiline Sourcing Market Baskets

Contents Overview Multiline Item Sourcing Market Baskets Bundles © 2004 My. Florida. Market. Place.

The My. Florida. Market. Place Sourcing tool streamlines the sourcing process by combining a solicitation’s items into Groups, Market Baskets and Bundles. Overview • Multiline Item Sourcing – enables the Purchasing Analysts to offer a set of items for purchase as a Group (e. g. a lot), and invite participants to place bids on some or all of these items as part of a single, coordinated event • Market Baskets – a group of line items that are designated as a bidding unit. A single price is entered for the entire Group. Vendors enter a single price that represents the sum of the prices for all items in the Group. • Bundles – a group of line items that are designated as a purchasing unit, in order to solicit discounted prices from vendors. In addition to bidding on line items, Vendors may optionally submit prices for Bundles of line items that represent a discount in exchange for more of the Agency’s business. © 2004 My. Florida. Market. Place. All rights reserved. 3

Market Baskets and Bundles have distinct properties and features to allow Purchasing Analysts the ability to achieve their solicitation objectives. Key Differences Market Baskets Bundles • Used to Streamline Bidding Process • Used to solicit discounted pricing • Created from a single Group of items • Can include items from different Groups • Only Purchasing Analysts can create • Vendors can create • Replaces items as the bidding unit • Bid separately from Items • Item pricing not required • Requires Item Pricing © 2004 My. Florida. Market. Place. All rights reserved. 4

Multiline (mulitiple item) Sourcing enables Purchasing Analysts to offer a set of items for purchase as a Group, and invite participants to place bids on some or all of these items as part of a single, coordinated event. Multiline Sourcing Overview / Benefits • Fundamental idea in a multiline RFX is to solicit bids on multiple items in one or more Groups rather than one line item at a time • Related purchases can be consolidated into a single RFX to reduce time and cost of sourcing • Line items can be organized into Groups to provide clarity, separate distinct categories of items (Lots) • Multiline Sourcing can be used in conjunction with Market Basket and Bundling features to collect single prices on multiple items © 2004 My. Florida. Market. Place. All rights reserved. 6

To better organize Multiline items in an RFX, a Purchasing Analyst can create a hierarchical structure of Groups and Items. Organization of Line Items • Hierarchy supports multiple levels, meaning you may have large Groups that contain subgroups made up of smaller groups and line items • Groups and items may exist at the same level of the hierarchy. A Group may contain items as well as other Groups • The item number is the key to determining an item or Group’s position in the hierarchy • Numbering sequence for the hierarchy is identical to the system in the RFX Info section • Decimal places are used to indicate levels in the hierarchy • Groups always have a zero in the final decimal place of their item numbers, while items always have a number greater than zero © 2004 My. Florida. Market. Place. All rights reserved. 7

To better organize Multiline items in an RFX, a Purchasing Analyst can create a hierarchical structure of Groups and items. Organization of Line Items - Example Item Number Position in Hierarchy Top Level of Group 1. 0 1. 1 First Item in Top Level of Group 1. 2 Second Item in Top Level of Group 1. 3. 0 Second level Group member of Group 1. 0 1. 3. 1 First Item in Group 1. 3. 0 1. 3. 2 Second Item in Group 1. 3. 0 1. 3. 3 Third Item in Group 1. 3. 0 © 2004 My. Florida. Market. Place. All rights reserved. 8

Groups can be used to represent a logical groupings of line items. After Groups are created, the items in those Groups can be managed as a unit. Streamlining Data Entry Process • Purchasing Analysts can enter values for a Group that will be automatically applied across all items in the Group. Values include: – Price – Quantity – Bidding rules • Changes can be made at the Item level to override these settings if necessary © 2004 My. Florida. Market. Place. All rights reserved. 9

Line Item Hierarchy Group Item in a Group Separate Item © 2004 My. Florida.

The My. Florida. Market. Place Sourcing tool contains certain features to handle RFXs with large numbers of items. Features to Handle Large Number of Items • Import from Excel using the My. Florida. Market. Place Excel Import/Export feature • Group into Market Baskets (Next portion of this document) • Allow vendors to submit pricing using the Excel Bidding functionality (reference the Buyer Excel Import User Guide: https: //marketplace. myflorida. com/buyertraining/buyer_excel_import_user_guide. pps • Useful Tools – Paging (Navigating Multiple Pages): – Find (Search Tool): © 2004 My. Florida. Market. Place. All rights reserved. 11

Market Baskets are a Group of line items that are designated as a bidding unit; vendors enter a single price that represents the sum of the prices for all items in the Group. Why Use a Markets Basket? • A Market Basket is a group of line items that are priced as a Group rather than individually. Use a Market Basket when: – You want vendors to compete on a set group of line items – You expect to award all of the line items in the Group to a single vendor – You want to buy many items, but want to make it easy for vendors to make competitive bids • Market Baskets can help vendors bid on large numbers of line items without being overwhelmed, since they do not need to enter information for each line item • The My. Florida. Market. Place Sourcing tool lets you define a Market Basket easily, in any combination of line items, as long as each item does not appear in more than one Market Basket. After bidding, you can prompt vendors to enter individual line prices if you want. © 2004 My. Florida. Market. Place. All rights reserved. 13

Purchasing Analysts can easily set up and organize Market Baskets. How to Set Up a Market Basket • A Market Basket is created on the Items-Organization page • Create a Group containing all of the items that will be in the Market Basket. Use the Add Group button to create the Group, then use the Move button to move the items into it – Note: Alternatively, you can enter groups of items in an Excel spreadsheet and import the spreadsheet data into the RFX. Reference the Buyer Excel Import User Guide: https: //marketplace. myflorida. com/buyertraining/buyer_excel_import_user_guide. pps • Check the box next to the Group name to select it, then click the Create Basket button. An icon appears next to the Group name to indicate that it is a Market Basket. © 2004 My. Florida. Market. Place. All rights reserved. 14

Market Baskets are denoted by a basket icon. How to Set Up a Market Basket (continued) Group is also a Market Basket Group 1 2 © 2004 My. Florida. Market. Place. All rights reserved. 1. Select the Group you wish to make into a Market Basket 2. Click the “Create Basket” button 3. A basket Icon will appear next to the Group name. 15

When a vendor previews the RFX, the Items tab lists all Market Baskets. Vendors may familiarize themselves with the Market Basket(s) and formulate appropriate bidding strategies before bidding begins. Market Basket in Preview Period 1 1. Group/Market Basket Name & Number 2. Quantity of Market Baskets requested 3. During Preview period, bids cannot be submitted by vendors (No entry fields) 2 3 © 2004 My. Florida. Market. Place. All rights reserved. 16

A vendor can also view details (Items) of each Market Basket by clicking on the Market Basket name. This opens a new screen with Item level information. Market Basket in Preview Period (continued) 1. Items 2. Quantity of Individual Items Requested 1 2 NOTE: The sum of the quantities of individual items does not equal the Quantity of Market Baskets © 2004 My. Florida. Market. Place. All rights reserved. 17

After bidding begins, vendors bid a price for a Market Basket, but not for any of the items in it. The screens do not include any information for items in a Market Basket, keeping the vendor’s view as simple as possible. Market Basket During Bidding 1. Group/Market Basket 2. Quantity of Market Baskets requested 3. Bids are submitted by vendors at the Basket (Group) level 3 1 2 © 2004 My. Florida. Market. Place. All rights reserved. 18

After bidding closes, The My. Florida. Market. Place Sourcing tool provides a way to get the individual prices for Market Basket items from vendors, as long as the RFX is not closed (Pending Selection status). Line Item Pricing • You can reconcile line item prices offline or in another online system • Individual item prices must be submitted by vendors before you submit your award proposal to advance to the next stage. (i. e. , Intent to Award) • It is also recommended that you incorporate the Line Item pricing submittal in the RFX Info portion of the solicitation, as well as the Event Calendar • Vendors are not required to submit individual prices for line items during the Open for Bidding period. You will be notified through the Message Center and email (if activated) when the vendor has provided the individual Line Item prices for Market Baskets. • Bid Evaluation - After bidding closes, a Purchasing Analyst can use the decision support tools, such as bid comparison and optimization, to evaluate bids. These tools handle Market Baskets in the same way as line items. © 2004 My. Florida. Market. Place. All rights reserved. 19

Bidding Closed (Pending Selection) View Line Item Pricing (continued) 1. Vendor has entered Line Items Pricing 2. Original Market Basket pricing entered in the open bidding period 3. Extended Pricing: Basket Price * Requested Quantity 1 2 3 © 2004 My. Florida. Market. Place. All rights reserved. 20

Bundles are a group of line items that are designated as a purchasing unit in order to solicit discounted prices from vendors. Bundles - Definition and Purpose • Bundles are similar to Market Baskets in that they present a group of line items for bidding that can be awarded as a Group to the selected vendor(s) • Main difference from Market Baskets is that Bundles still collect line item prices, not a single price for the entire Bundle. • Intent is to encourage vendor discounts by awarding the entire Bundle instead of individual items • Vendor submit item level pricing, but are given the option of submitting a price for the Bundle(s) • Gives flexibility to vendor – Bid line items or Bundles • Gives flexibility to the Purchasing Analyst – Award Bundles – Award individual line items © 2004 My. Florida. Market. Place. All rights reserved. 22

There are two types of Bundles supported in the My. Florida. Market. Place Sourcing tool: Owner and Participant. Types of Bundles • Owner Bundles – Bundles created by the Purchasing Analyst (RFX initiator) when creating an RFX – Includes line items and associated quantities presented to the vendor for bundled prices • Participant Bundles – Bundles created by the vendor when bidding – Provides the vendor the ability to decide how items are grouped to provide the best discount © 2004 My. Florida. Market. Place. All rights reserved. 23

There are some restrictions on the creation and use of Bundles. Restrictions When Using Bundles • Items already in a Market Basket cannot be individually selected to be in a Bundle – Bundles require item level pricing before a bundled price can be entered, while a Market Basket does not allow Line Item pricing during the open bidding period • Bundle prices must be lower than the sum of the line item prices. The purpose of Bundles is to obtain discounted prices. • To bid on a Bundle a vendor must bid on individual line items of the Bundle first. This is to ensure the Purchasing Analyst has the flexibility to award individual line items or Bundles to vendors. © 2004 My. Florida. Market. Place. All rights reserved. 24

There are two places in the My. Florida. Market. Place Sourcing tool to construct Bundles Creating / Editing Bundles in an RFX • On the Rules-Bidding page, the parameter Allow Bundles determines whether or not Bundles of any kind are allowed in the RFX. • Purchasing Analysts have the flexibility to create and determine if vendors can create their own Bundles on the Items-Bundles page. Vendors cannot see other vendor created Bundles © 2004 My. Florida. Market. Place. All rights reserved. 25

Setting Up Bundles in an RFX Creating / Editing Bundles in an RFX (continued) 1. Item-Bundles Page 2. Click “New Bundle” Button 3. Select if vendors can create their own Bundles 1 2 3 © 2004 My. Florida. Market. Place. All rights reserved. 26

Setting Up Bundles in an RFX Creating / Editing Bundles in an RFX (continued) 1. Name your Bundle 2. Select the items you want to include in you Bundle 3. Set the initial quantity you require 1 2 3 © 2004 My. Florida. Market. Place. All rights reserved. 27

Setting Up Bundles in an RFX Creating / Editing Bundles in an RFX (continued) 1. Name of your new Bundle 2. Number of Items included 3. Select if vendors can create their own Bundles 1 2 3 © 2004 My. Florida. Market. Place. All rights reserved. 28

Use of Bundles by vendors is optional during the Open for Bidding period. Bidding on an RFX • Once the event has been launched by the Purchasing Analyst – Vendors submit pricing at the Item level – Vendors are not required to bid on Bundles; however if they do, their bid for the Bundle(s) must be less than the sum of their bids for all items included in the Bundle • If the Purchasing Analyst selected to allow vendors the flexibility to create and determine their own Bundles: – Vendor can select items to incorporate into their own Bundles – Vendor’s bid for the Bundle(s) must be less than the sum of their bids for all items included in the Bundle © 2004 My. Florida. Market. Place. All rights reserved. 29

The My. Florida. Market. Place Sourcing tool can be used to analyze vendors submitted bids Reviewing Bids with Bundles • Bids can be viewed on the Items Tab or the Suppliers Tab during the Pending Selection period • The Items page will allow the Purchasing Analyst to view all Item level bids and Bundles • All information is exportable to Excel for further analysis • Refer to the My. Florida. Market. Place Buyer Solicitation Help for further help in navigating and evaluating responses: https: //marketplace. myflorida. com/buyer_solicitation_help. htm © 2004 My. Florida. Market. Place. All rights reserved. 30

There are several methods to analyze a vendor’s response in an RFX with Bundles to determine an award scenario Awards • Winning bids can be selected by: – Item level – Bundle level – Awards can be split between Item level and Bundles level – Awards can be split between vendors – Awards can be split between Items, Bundles and vendors • The My. Florida. Market. Place tool will automatically select an optimized winner based on all bid inputs. This optimized award can be viewed under the proposal tab © 2004 My. Florida. Market. Place. All rights reserved. 31