University Procurement 101 University Procurement FY 07 STATISTICS

University Procurement 101

University Procurement FY 07 STATISTICS Ø 1, 700 Purchase Orders; over $73 M Ø 118, 000+ PCard Transactions; over $40 M Ø 2, 700 of those placed by University Procurement

Drexel and Drexel College of Medicine STATS ØRoughly 20, 000 FT & PT Students Ø 5, 000 Employees Ø 889 M+ Operating Budget Ø 1, 000 Active Research Projects/100 M ØReal Estate Management ØPhysician Practices

University Procurement Strategies ØE-Procurement (aka - Business-to. Business, E-Commerce, Marketplace) ØPurchasing Cards ØDistributed Requisitioning ØContract Compliance ØSupplier Diversity ØGreen Initiative

University Procurement Guidelines ØUse University Procurement as a resource ØUtilize existing contracts (e. g. , E&I, Broadlane, etc. ) ØSolicit competitive bidding

University Procurement Guidelines ØMaintain quality relationships with vendors ØAccept no private benefits ØAvoid conflict of interest

University Procurement Guidelines ØPurchase within available budget ØNEVER use College purchases for personal use ØReference National Association of Educational Procurement (NAEP) Code of Ethics at: http: //www. naepnet. org/ Content/Navigation. Menu/About. NAEB/Go vernance. Policy/Codeof. Ethics/Code_of_Eth nics. htm

Quotes & Bids ØMaintain the confidentiality of all quotes and bids Ø$2, 500 - $4, 999 compare two (2) or more quotes (web, telephone or fax quotes are acceptable) – Exception Vendor with contract/pricing agreement Ø$5, 000 - $25, 000 three (3) written bids (even if it is a preferred vendor with whom we have a contract or pricing agreement).

Quotes & Bids Ø$25, 000 and above – a good business practice would be to involve University Procurement to help prepare a formal Request for Proposal or Request for Quotation ØUniversity Procurement is available to help you obtain your quotes/bids

Quotes & Bids ØUtilizing a preferred vendor with whom we have a pricing agreement or a contract doesn’t negate the bid requirements EXCEPT at the $2, 500 to $4, 999 range (e. g. , E&I, Office Depot, Broadlane)

WHAT IS Sole Source? ØSpecific products or services available from only ONE source; also called sole provider, sole supplier, sole vendor, or sole distributor

Competitive Bid Exception Guidelines ØEmergencies ØUniqueness ØProprietary ØAvailability ØCompatibility

Sole Source/Competitive Bid Exception Guidelines ØJustification letter required denoting all of the criteria that apply with a full explanation. ØBecause the requestor is asking for an exception, due diligence requires that we ensure the next level approver is aware of this exception request; in other words, they countersign the justification statement.

CONSULTANTS ØJustification required before engaging consultants ØHere too, must be countersigned by next level approver ØInformation on the consultant selected, along with a justification for the selection based on the technical details of the project.

Before You Buy. . . ØVerify your available funds ØReview Spending Guidelines (http: //www. drexel. edu/procurement/guidelines/ spending. html) ØEnsure Request has valid signatures ØEnsure Requests using grant funding are routed to Office of Research & Compliance Administration

Common Problems with incoming Purchase Requests □ □ □ □ □ Missing Signature(s) Invalid Approval Signature Needs Office of Research Approval Quotes Required______________ Invalid/Missing Cost Center-FUND/ORGN/ACCT Needs Bid Exception Letter Insufficient Funding Bid Exception Letter Missing Next Level Approver Missing/Insufficient Requestor Information Missing Vendor Information

December 11 & 13, 2007 Drexel University Drexel Purchasing Services Equipment Management Program

Equipment Maintenance Program § The Specialty Underwriters Equipment Maintenance Program (EMP) was launched at the Medical School in April 2007 § A new and innovative business model that provides an opportunity for Drexel University to: – Continue to utilize current service providers while reducing annual equipment maintenance costs up to 30%

Equipment Maintenance Program --About the Program-- § Replaces traditional equipment maintenance agreements that are based on worst case scenario § Enables departments to better manage risk resulting in lower cost for service § Provides a single point of contact for all service requirements § Enables departments to continue to utilize existing service providers

Equipment Maintenance Program --Key Program Features-- § Offers significant cost savings opportunity § Equipment can be added or deleted as required § Provides review and audit capabilities for service performed § Inventory of Equipment § Provides online management reports § Single Source for Dispatch of Vendors

Equipment Maintenance Program --Benefits to Customers-- § Reduced administrative burden resulting from one supplier for all requirements § Lower service costs versus traditional maintenance contracts § Fixed cost for term of contract § Preventive maintenance monitoring of equipment, inventory management & online reporting capabilities

SU / E&I Equipment Maintenance Programs 2007 Cost Savings Report § 15 Universities § Existing service cost for FY 2006 – $3, 279, 893 § Specialty Underwriters service cost for FY 2006 – $2, 477, 279 § Cost Savings – $802, 614

Customers SU and E&I Serve § § § § Drexel ↑ University of Penn ↑ University of Pittsburgh ↑ University of West FL ↑ University of Oklahoma ↑ Texas Tech ↑ Rosalind Franklin University ↑ University of Iowa ↔ Northwestern ↔ New Mexico State ↔ LA Bio. Med ↔ Rio Hondo ↔ Mount Union ↔ University of WI ↔ Penn State University ↔

Equipment Maintenance Program FY 2007 Participation Department Contact QTY of Equip. Maintenance Contract Cost SU Cost Annual Savings Biochemistry & Molecular Chaiken 2 $21, 261 $14, 883 $6, 378 Biochemistry & Molecular Sherwood 24 $34, 980 $27, 823 $7, 157 Pharmacology & Physiology Chaiken 2 $21, 261 $14, 883 $6, 378 27 $66, 716 $50, 886 $15, 830 TOTAL:

Equipment Maintenance Program FY 2007 Open Quotes Departments M/C Cost SU Proposed Cost Annual Opportunity Savings Drexel University 14 $205, 622 $146, 014 $59, 608 School of Med 13 $215, 919 $139, 305 $56, 614 27 $421, 541 $305, 319 $116, 222 Total:

Communication Equipment • Audio/Visual Systems • Emergency Systems • Overhead Paging Systems • Intercom Systems • Radios • Telephone Systems • Voice Mail Systems Data Processing Equipment • Bridges • Controllers • Hubs • Multiplexors • PCs and PC Peripherals • Routers • Scanners • Servers Mail Equipment Inserters Labelers Machines (Not System) Openers Scales Stackers Laboratory Equipment • Autoclaves • Cell Savers • Cell Washers • Centrifuges • Chemistry Analyzers • Chromatography Equipment • Computers • Densitometers • DNA Analyzers • Electrolyte Analyzers • Electron Microscopes --Electrophoresis Equipment • Gamma Counters • Hematology Analyzers • Immunoassay Analyzers • Microbiology Analyzers • Microscopes • Scales and Balances • Spectrophotometers • Tissue Analyzers Security Alarm Equipment • Alarm Systems • Card Access Systems • CCTV Systems • Electronic Gates and Doors • Electronic Library Security Systems • Fire Alarms • Protection Systems Office Equipment • Binders • Bursters • CAD and CAM Systems • Card Readers • Cash Registers • Check Signers • Coin Sorters and Packagers • Copiers • Currency Counter • Dictation Equipment • Electric Rotary Files • Electronic/Electrical Print Equipment • Electronic/Electrical Press Equipment • Electronic Typewriters • Embossers • Facsimile Machines • Folders • ID Card Readers • Laminators • Microfilm Equipment • Printers • Retail Scanners • Shredders • Time Clocks • Transient Voltage Protection Equipment • Uninterrupted Power Supplies

Six Step Quote & Implementation Process 1. SU collects customer equipment data 2. SU analyzes information 3. SU provides quote to user • • • Service contracts Contract proposal Vendor invoice Purchase Order Make, model, serial number Review pricing, terms Compare vs. industry standards Compare vs. actuarial data Identify savings opportunities • 7– 10 business day turn around time • Identify SU vs. current costs • Identify exclusions, additional services, coverage options • Group equipment: risk transfer and contract-to-contract 4. Customer determines what equipment to add • Not all or nothing quotes • Prefer minimum 30 -day window prior to start date to ensure a smooth transition • Staggered renewals/start dates tracked in SU Warranty Watch 5. SU notify customer’s Preferred Vendors 6. SU forwards Invoice, paperwork, and Equipment Tags • Customers receive copy of agreement, schedule of equipment, Equipment Tags ON GOING SUPPORT • Users can add/remove equipment without penalty • Real-time management reports are available online • SU will provide updated schedules of equipment and renewal notices 60 days prior to the renewal date

Coverage's • Corrective Maintenance Coverage: – Electrical Breakdown – Mechanical Breakdown – Parts/Labor/Travel – Hours of coverage per vendor contract. – Consumables per vendor contract.

Coverage's • Preventative Maintenance Coverage: – Per vendor contract • • • Rental of Substitute Equipment In-House Payments on repairs at $35/hr Equipment Inventory and Tagging Work Order & Vendor Pay Process Management Reports

Equipment Maintenance Program --Next Steps-- § Obtain copies of current maintenance contracts § Identify items suitable for Equipment Maintenance Program § SU provides quote § Identify equipment start dates § Inventory / Tag items

SU Contact Information Chad Frank or Tim Peterson 800 -558 -9910

1251 Metropolitan Ave. Thorofare, NJ 08066 (856) 853 -5160 Tel (856) 853 -5164 Fax DENVER ▪ PHILADELPHIA-DELAWARE VALLEY ▪ COLORADO SPRINGS “Your Cradle to Grave Records Management Service” Joe Menzano -Operations Manager 856 -853 -5160 ext 302

Introduction • • Records Management Secure Shredding Media Vaulting Imaging and Archiving Services • Docu. Vault is a full service “cradle to grave” records management company that give its clients personalized services.

Docu. Vault Secure Shredding • 100% Secure Process • Utilize latest Technology • Employee Selection Process (AAA Certification) • • Driving record checks. Pre-employment drug tests On-going drug tests. Extensive criminal history checks. Joe Menzano-Operations Manager 856 -853 -5160 ext 302

The Process • A successful shredding process integrates the front end, the exchange and the back end while maintaining 100% security throughout. • All Containers will remain locked until seconds before destruction. Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Lockable Containers Console 96 Gallon Bin Dimensions: 20 x 20. 5 x 37 30. 5 x 36 x 45 Weight: 60 lbs Weight: 37 lbs Material: Melamine Construction Material: Hardened Plastic Capacity approx 100 lbs Capacity approx 300 lbs 64 gal (24 x 32. 5 x 44) Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

The Process • Containers are then locked inside Docu. Vaults real time GPS Tracked vehicles. Joe Menzano-Operations Manager 856. 853. 5160 ext 302

Process Containers are then unloaded at Docu. Vaults enclosed shredding plant and escorted directly to the shredder for immediate destruction. n Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Certification • A Destruction Certificate for you files will be mailed directly to you. • Certificate will include dates and amount of containers exchanged. Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Key Points to Consider – Scheduled Service/No need to call for pick up. – Pay for what you shred – No Hourly/minute fees and no stop minimums. – Customer preferences are built into our service. – GPS tracking of vehicles

What this means… Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

What this means… Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Records Management Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Store and Manage Your Info • Setting Up the Customer – Docu. Vault provides customers with all labels and forms. – Personal training on Docu. Vault procedures. • Indexing Procedures – Train customers/advise customers on how to organize files for retrieval. Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Store and Manage Your Info • Order files over the phone, on the web or via facsimile. • Phone – (856) 853 -5160 • Fax – (856) 853 -5164 • Web Retrieval: www. docuvault. com Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Store and Manage You Info • Web Retrieval – – Log onto www. docuvault. com Enter username and password Manage your entire inventory via secure server Request files, pickups, deliveries, order boxes, labels Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Store and Manage Your Info • Your files can be delivered: – Next Day – Same Day – Rush (within 2 hours) – After Hours – Weekends – Holidays Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Store and Manage Your info • Set up retention schedule – All boxes will be assigned a destruction date. – Upon destruction date Docu. Vault will contact you for approval. – Once approved in writing Docu. Vault will pull documents for the archive and destroy them. Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Security • Security company monitors 24/7/365 • Sensors: motion, glass break, water, temperature • Digital color video surveillance Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Key Points to Consider – – – Training for customers 24 hour access to files Same day delivery standard pricing Web Retrieval No double delivery charges for pickups Access to key personnel • Direct lines as well as cell phones – No charges for Reports – No charges for Labels – Records Retention Schedules Required

How do I get started? • Call Joe and set an appointment. – Your department will be set up as a Docu. Vault customer. – Andrew will bring all labels and forms to your office for training. – Your department will be trained on: • • • Indexing your information Organizing your boxes for pick up How to request files and boxes How to send files and boxes back to Docuvault Setting up a records retention program Joe Menzano-Operations Manager – 856. 853. 5160 ext 302

Website Øwww. drexel. edu/depts/procurement/

Presented by: Joanne L. Whitby Director of Corporate Services

Preferred Moves Program. SM and Drexel University • • Who is this for? The benefits of this program How to access the program www. du. preferredmoves. com Present Affinity Partners and Service Providers Evaluations The Perfect Partnership

Who is This Program For? Faculty, Employees, Alumni, Students, Family and Friends

Benefits • Absolutely no cost to use the Preferred Moves. SM service • Experienced high-touch counseling and nationally recognized service partners • Cash-back rewards which are 10% of the transaction side of the commission Examples are on a 3% commission scale $150, 00………. $450 $200, 000 -……$600 $400, 000……. $1200 Some state regulations do not allow cash back in some states

Access • Visit www. du. preferredmoves. com • Call our toll free number, 866 -786 -5512 and speak with a Preferred Moves. SM counselor to learn more about the benefits and to enroll

www. du. preferredmoves. com • Visit www. du. preferredmoves. com and take a look at the menu of tremendous benefits and services available • Enroll using the drop down menu and a Preferred Movessm Counselor will contact you and assist you through your transaction • Come back and use the services as many times as you like

Present Affinity Members • • • Glaxo. Smith. Kline Lockheed Martin Clemens Uniform Crown Cork & Seal Foamex Blue Cross Jacobswyper Bentley Systems Kistler Tiffany Locus Pharma Pep Boys MEDecision • • • Rosen Group Sun. Gard Tengion Teknion The County of Chester Manayunk Sports and Social Club • University of Scranton Alumni • Vanguard • YMCA of the Brandywine Valley

Service Providers • • Countrywide Mortgage PHH Mortgage Wells Fargo Reads Atlas UB Pack Travelers Insurance Auto. Driveaway Pet. Relocation • • PODS Korman Home. Net Solutions First American Home Buyers Protection Corporation • Korman Suites • Marriott Execustay

Evaluations • Mark S. with GSK, Oakdale, PA Great experience! I greatly enjoyed working with all in this program and would recommend it to others • Melanie G. with Lockheed Martin, Littleton, CO This was a really great experience! I have never had such a smooth move and closing before. I will most certainly recommend Preferred Moves. SM to friends and I will seek you out again should I need to relocate in the future.

Preferred Moves. SM and Drexel University -The Perfect Partnership…… This benefit is a remarkable option in attaining the American dream of homeownership. Community initiatives are a strong force in the University Mission Statement, with Preferred Movessm the pride of homeownership gives everyone the opportunity for a greater connection to the community.

Travel Portal www. campustravel. com/university/drexel/ • Hotels – Local Contracted Rates • Club Quarters, Sheraton City Center, Inn at the Union League and Windsor Suites • Car Rentals – Contracted Rates • Avis, Budget, and Enterprise

Travel Portal • Agencies - MARATHON TRAVEL For More Travel Information Visit Our Website www. campustravel. com/university/drexel/

PCard

JP Morgan Chase VISA www. Payment. Net. com

How Does DU Purchasing Card Work? • • • Much like a personal credit card University liability Reassign charges to cost centers Print statement of account and verify all charges Data is imported into Banner Finance on a monthly basis

Budget Charges Ø Card default: Departmental cost center (fund/org). All charges will be posted there unless you reassign them via Payment. Net. TM. Ø. Charges will be uploaded into Banner Finance at month end.

Benefits Ø Reduced paperwork: requisitions, check requests, and purchase orders Ø Reduces petty cash funds and cash exposure Ø Allows a cardholder to deal directly with suppliers Ø Faster processing time for end users

Benefits Ø Personal funds are no longer needed for purchases Ø Reduces processing for the cardholder, Purchasing and Accounts Payable Ø Because it is consolidated invoicing for a single monthly payment: saves time, stationery, checks, postage and filing

Good Uses Ø For use of low dollar purchases under $2000 Ø Dues, memberships, licenses, application fees Ø Conference and seminar registration fees Ø Stamps, postage fees Ø Books, publications, periodicals, subscriptions, reprints, newsletters, videos and audio recordings Ø Advertisements

Good Uses – cont. Ø Business Travel: Airline, hotel, rental car reservations and meal expense within departmental guidelines

Restrictions Ø Absolutely No Personal Charges Ø Traveler’s Checks or cash withdrawals from ATM machines. Ø On Campus purchases of any sort or for services that can be performed by another oncampus department

Restrictions Ø Alcoholic beverages. Ø Some grant purchases over $1000, must be pre-approved by the Office of Research prior to purchase. Ø Additional Restrictions can be found on the Procurement website.

Safeguards • Purchases are tracked to cardholder • Statement of Account reviewed for appropriateness monthly • Purchasing, Comptroller, and Internal Audit have access to all transactions

Card Security • Use of card by anyone other than the cardholder is prohibited • Secure the card and account number at all times • Set spending limits • Platinum Visa protection

Before Buying Ø Remember the NAEP Code of Ethics Ø Bid/Quote rules are consistent with the Purchase Request Process. Ø Utilize Preferred Vendors to receive negotiated benefits

At point of sale Ø Vendors must not charge higher prices for credit card purchases Ø Indicate this is a Drexel University Purchase Ø Indicate purchases are exempt from state sales tax; certificates are available from A/P

Read more about it! Ø Cardholder Responsibilities Ø Disputed Transactions Ø How do you get a Card? ØGo to: Procurement’s website: http: //www. drexel. edu/procurement/card/

Procurement Contacts Ø Ø Ø Ø Ø Joe Campbell, jac 47@drexel. edu Debbie Rizzo, dma 49@drexel. edu Anna Griffin, ag 87@drexel. edu Charlene Rice, ricec@drexel. edu Gwen Green, gg 33@drexel. edu John Dick; dickjj@drexel. edu Carmen Spears, spearsce@drexel. edu Una Massenburg, umm 23@drexel. edu Kathleen Maertzig, kam 39@drexel. edu Michele Arias-Ramos, ma 484@drexel. edu