Welcome to the November Issue
of The Buyers Network!
Articles in this issue:
Purchasing Settles into their New Offices
With Boxes Unpacked and Workstations Reassembled...Work's Back to Normal
Director's Comments
Purchasing Card Program
Procurement Officer of the Year Award Planned to Continue in 1998
Purchasing Division's ODDS & ENDS
It's a Dirty Job, But Somebody Has To Do It...
Moving Required Patience and Some Elbow Grease
THANK YOU...for Responding to our Conference Survey
MONEYWISE...
Tips for the Thrifty
Fleet Conference Offers Two-Way Feedback with Agency Coordinators
What is a Direct or Sole Source Purchase?
Be Cautious in Determining if Competition Exists
Questions Could Be Answered In-House
NIGP Sponsors Scholarship Fund
Governor Appoints Joseph Markus Administration Cabinet Secretary
Current Statewide Contract Update
After much anticipation and preparation, several staff members of the Purchasing
Division have finally moved into their new offices at 2019 Washington Street, East within
the State Capitol Complex in Charleston. Nearly 30 employees of the Acquisition and
Contract Administration Section, Administrative Services Section and the Director's Office
were affected by this move.
The transition was planned concisely to avoid any excessive reduction in productivity. Employees were using loaded boxes as chairs and desks or sitting in vacant nearby offices for a few days while the existing modular workstations were disassembled and moved to the new office space.
"The Purchasing Division staff made every effort to conduct business as usual; however, with files packed away, computers down, and telephones being switched from our old system to our new system, business was far from usual," according to Purchasing Director Dave Tincher. "Fortunately, the needs and schedules of all parties involved in this project were coordinated so that after one task was completed, the next task began."
In January of 1998, the second floor, which is currently being
renovated, will be the new office space for members of the Finance Division of the
Department of Administration.
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"We want to see more in-state vendors competing for products and services that state agencies need," according to Purchasing Director Dave Tincher. "By giving these vendors a `how-to' course on doing business with state government, they most likely found that the business opportunities here in state government are quite appealing." For fiscal year 1997, West Virginia vendors received 69% of the state dollars spent, approximately $337 million. Out-of-state vendors received about $152 million (31%) for products and services purchased by our state government agencies.*
In accordance with Gov. Cecil H. Underwood's commitment to technology, the Purchasing Division used satellite transpondency to downlink to 12 different locations throughout the state. Gov. Underwood, Administration Secretary Joe Markus, and State Auditor Glen Gainer III offered pretaped messages to the participants.
`Live' at West Virginia State College's Educational Network, Tincher moderated the presentation with the assistance of three representatives from the Purchasing Division (Jo Ann Dunlap, Administration Unit Manager; Curt Curtiss, Acquisitions and Contract Administration Director; and Dick Estill, Purchasing Buyer) and five agency procurement officers (Doug Knorr, WVU; Stephanie Smith, Marshall University; Greg Nicholson, Department of Health & Human Resources; Bob Bragg, Division of Highways; and Lendin Conway, Division of Environmental Protection). The topics discussed included vendor registration, the bid and award process, the Purchasing Card Program, and agency purchases.
"We are very pleased with not only the success of this teleconference, but how we were able to use satellite technology to reach out to a large number of state businesses at the same time," Tincher said. After some editing, the presentation will be available on videotape for future use to encourage state businesses to pursue state government business.
*Source: TEAM automated purchasing system
The Purchasing Division offers a variety of programs and services; however, the program which stands out as the most positively received, especially by the vendor community, is the Purchasing Card Program. There is a good reason for its popularity businesses get quick payment for the goods and services rendered.
Currently, the state has issued nearly 1,000 purchasing cards which authorizes employees to make purchases of $500 or less per transaction. The dollar volume for this program is averaging over $500,000 monthly, which is approximately 25% of what this program is expected to reach once fully implemented statewide.
An extensive training initiative for this program has progressed since the initial 10 agencies kicked off the pilot program in October of 1996. Currently, 70 agencies are now participating.
The days of waiting for the `check in the mail' are long gone as it
pertains to payments to vendors doing business with the state. The Purchasing Card Program
has proved that government can work efficiently and expediently by implementing innovative
programs to benefit the state and its business partners.
Recognizing excellence in public purchasing was the motto behind the development of the Purchasing Division's "Agency Procurement Officer of the Year" program. This award honors one individual who works in public procurement and attains certain quality characteristics, such as high performance, valuable experience, enhanced training efforts, cooperative nature, and positive image.
Edi Barker of the Bureau of Employment Programs was the first recipient of this recognition in 1996. This spring, Susie Teel, who at the time worked for the Division of Environmental Protection but has since transferred to the Department of Health & Human Resources, was selected as the 1997 Agency Procurement Officer of the Year. Who will be next year's recipient? This award is presented each year at the Purchasing Division's spring agency purchasing conference. The 1998 spring conference will be held at Canaan Valley State Resort & Conference Center on May 4 through 7, 1998.
A special mailing with the nomination form will be distributed in early
1998 to agency procurement officers. Start thinking of individuals who demonstrate high
quality performance in the purchasing profession. More details will be reported soon on
the nomination procedures in The Buyers Network!
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Purchasing Division's ODDS & ENDS
FIXED ASSETS
Reminder...State agencies are required to have all of their fixes assets entered into the
WVFIMS Fixed Assets System for reportable equipment with an acquisition cost of $1,000 or
more.
For more information regarding this requirement, please contact Jo Ann Dunlap, Administration Unit Manager, at 558-0059.
PO MODULE
Training continues on the WVFIMS Purcahse Order Module, which allows for the centralized
tracking of payments on purchase orders within the West Virginia Financial Information
Management System (WVFIMS).
The Department of Administration's Accounting Section, the Division of
Enironmental Prection, the Governor's Office, Criminal Justice & Highway Safety, and
Tourism have all received formal training.
For many of the Purchasing Division staff, the week of October 6th was spent packing and unpacking boxes. But...we are finally ready to welcome our customers to our new office space on Washington Street, East, one block from the State Capitol Building.
Please make note of our Division's new mailing address:
WV Purchasing Division
State Capitol Complex
2019 Washington Street, E.
P.O. Box 50130
Charleston, WV 25305-0130
All telephone and fax numbers have remained the same.
Our new location includes a conference room for bid openings and other
meetings, and an enhanced TEAM Training Facility. Please feel free to stop by and visit
our new offices.
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A special thank you to those who completed the survey for our upcoming state purchasing
conference. Your feedback will be helpful in selecting workshop topics and the program
format. Our next conference will be at Canaan Valley State Resort & Conference Center
on May 4 through 7, 1998.
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Check the Per-Ounce Cost
Shoppers often purchase a large container of a food product (even if
they can't use it for some time) because they are convinced they pay less per ounce than
they would for a smaller size. But a study published by the Tufts University Diet &
Nutrition Letter shows that larger sizes in several types of products often cost more
per ounce. These products included certain brands of tuna, ketchup, vegetable oil, peanut
butter, preserves, frozen juice, tomato sauce, and breakfast foods.
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Over 100 fleet coordinators for state agencies attended the second annual "Fleet
Management Conference" on October 1st in South Charleston. According to Purchasing
Director Dave Tincher, the conference focused on educating the participants on fleet
issues; however, the state's fleet management team also gained great insight from the
coordinators as to how the fleet program would be enhanced.
"We are always exploring new ways of managing the state's fleet," Tincher said. "We need this two-way exchange in order to continue to make positive changes."
State Fleet Manager Ken Miller explained that the state's centralized fleet was legislatively created in 1991 to provide transportation services to all executive branch agencies, with exception of a few agencies that have received Legislative approval to maintain their own fleet. "Because of the number of vehicles we manage, we are able to use that volume to obtain better services for our money and to obtain financing for new vehicles," Miller said.
Currently, the fleet policy requires that agencies retire their vehicles after five years of use or 100,000 miles; however, Miller indicated that these terms are being reviewed. "We would like to see agencies retire their vehicles earlier for both safety reasons and for increased resale gain," he said.
Other speakers at the conference included Ron Price, Purchasing Senior Buyer who has responsibility for bidding the statewide contract for motor vehicles and police cruisers; Janice Boggs, State Fleet Assistant; Greg McIntyre, Vice President of PHH Vehicle Management Company; Debbie Pierson, State Accounting Section; and David White, West Virginia State Agency for Surplus Property.
"Most of the audience for this conference were familiar
faces," Miller said. "Because we frequently deal with many of these people
individually, they felt comfortable asking questions and raising some valid points which
we must now take back with us and evaluate their feasibility. We need this input from the
agency coordinators so that we may continue to maintain the high quality of the state
fleet program."
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Direct or sole source purchases are those items which perform a certain
function for which no other items are known to exist. These purchases require considerable
attention.
Only two situations lend themselves to sole source purchasing. One is a patented, copyrighted or franchised (proprietary) product. The other is for a truly superior product which is not available from other sources.
For example, consider a proprietary situation where your agency owns equipment requiring the use of a certain brand and type of patented lubricant. Use of any other brand or type of lubricant would void the warranty. The lubricant is only available from the franchised dealer who sells the lubricant at an escalated price. You have no other choice but to enter into a sole source or direct purchase.
In the case of a superior product, for instance, you have been using a brand and type of photographic film in an expensive and unique x-ray machine. You have experimented with other film, but you just do not get the needed results with other film. Again, you are paying a premium price for the film you are currently using. Again you have no other choice but to make a sole source purchase.
But let's use a different example. You have a duplicating machine that uses a paper that gets good results. You are satisfied with the price you pay. The dealer gives good service. You are happy with the arrangement. Other dealers claim to have just as good of paper and service. You have been reluctant to try the other sources. But you must competitively bid. Why? It is more cost-effective and, most importantly, it is the law!
If you have doubts that a sole source situation exists, then you must use competitive bid procedures to test the market. If only one bid is received, you can be relatively sure that competition does not exist.
When requesting a direct purchase, prepare a written justification
stating factually why no other items are known to exist. Direct purchases require
considerable attention.
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Got a question about vendor registration? Ask your agency's procurement officer
first. Many of the guidelines and procedures are outlined in a booklet which was
distributed at the state purchasing conference. Although not every individual in each
agency has access to the TEAM automated purchasing system, most likely the agency
procurement officer does have this access.
What information does TEAM offer? This system provides all information regarding requisitions, purchase order and registered vendors. If you need to know if a vendor is properly registered with the State Purchasing Division, ask your procurement officer to access TEAM to find out this information.
If the vendor is in the system, but has not paid the appropriate $45 annual fee or has reached $1,000 in purchase orders without paying the fee, this vendor will be tagged as `on hold'. This vendor may not receive any purchase orders until the fee has been received and processed.
If you need access to TEAM, please contact Dan Miller, Automation
Manager, at 558-2314.
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According to Angela White-Negley, Chapter Vice-President, the chapter will be selling cookbooks, "Recipes from the Heart", which promote family mealtime traditions. The cookbooks, which contain over 200 recipes, cost $10. The proceeds will go to the scholarship fund which will assist active members in participating in NIGP educational seminars or conferences. For more details, call White-Negley at (304) 558-0530.
Mark your calendars! The next NIGP meeting will be held December
3rd at The Greenbrier in White Sulphur Springs. For additional information, call Skip
Amole, Chapter President, at 759-0510.
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Gov. Cecil H. Underwood appointed Joseph Markus as cabinet secretary for the Department of
Administration, effective October 1st. His selection was based on Markus' business
accomplishments in the private sector. He will be replacing Jim Teets who became the
Governor's Chief of Staff on September 2nd.
"The Department of Administration is one of the most critical operations in state government and I believe we must have qualified, capable leadership in that department," Gov. Underwood said. "Joe Markus has distinguished himself as an able executive and administrator in his work in the private sector, and he will be a great asset to state government." The Purchasing Division is organizationally structured under the Department of Administration.
Secretary Markus served as president and chief executive officer of Sturm Engineering Products in Barboursville from 1993 to 1996. He also held executive positions with several other companies nationwide.
His direction for the Department targets increased efficiencies with continued valued service to our customers. Three high priority areas include consolidation of statewide services, security at the State Capitol Complex, and customer satisfaction.
"I would like to see further consolidation of statewide services that are provided by a multitude of agencies, both in-house and out-of-house," he said. An example is the Consolidated Publishing Facility (CPF), which was created to bring together various agencies' print shops in order to offer better quality and service. On December 31st, the Division of Personnel's print shop will close with their staff and equipment moving to CPF. Markus indicated that other areas, which may also benefit from consolidation, will be pursued.
In regard to safety, Markus has met with legislators as well as other state officials concerning improving security at the Capitol.
Enhancing our service to our customers is yet another priority issue.
"We have two sets of customers; one is our constituents, such as vendors and the
public, and the other essentially is the entire state government," Markus said.
"We have to work at meeting the needs of both of these entities in a cost efficient
manner."
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Information and dates (as of October 16, 1997) included in this Current Statewide
Contract Update are subject to change. If you need additional information, please
contact the appropriate state buyer.
Contracts Awarded
Contract: TEMP
Description: Temporary Services
File: 22
Effective Date: 11/01/97
Vendor: Various Vendors
Contract: PC
Description: Police Cruisers
File: 33
Effective Date: 10/14/97
Vendor: Dils Motors, R.H. Peters
Contracts to be Bid or Under Evaluation
Contract: EL-TOOLS
Description: Portable Electric Handtools
File: 22
Bid Opening: 07/02/97
Under Evaluation: Yes
Contract: MH-TOOLS
Description: Mechanic Handtools
File: 22
Bid Opening: 07/02/97
Under Evaluation: Yes
Contract: SAFETY
Description: Safety Equipment
File: 22
Bid Opening: 12/03/97
Under Evaluation: To Be Opened
Contract: FLOORPAD
Description: Floor Buffing Pads
File: 22
Bid Opening: 12/03/97
Under Evaluation: To Be Opened
Contract: IV/SOL
Description: I.V. Solutions and Accessories
File: 31
Bid Opening: 09/17/97
Under Evaluation: Yes
Contract: C-PIPE
Description: Corrugated Pipe
File: 33
Bid Opening: 09/10/97
Under Evaluation: Yes
Contract: R-SHEET
Description: Reflective Sheeting
File: 33
Bid Opening: 09/16/97
Under Evaluation: Yes
Contract: ALUM
Description: Aluminum Coil and Flat Sheets
File: 33
Bid Opening: 09/16/97
Under Evaluation: To Be Opened
Contract: A/E FILTERS
Description: Filters: Oil, Air & Fuel
File: 33
Bid Opening: 12/17/97
Under Evaluation: To Be Opened
Contracts Renewed
Contract: DISKETTE
Description: Computer Diskettes
File: 21
Effective Date: 10/31/97
Vendor: G.I. Tech
Contract: ISC57369
Description: Disaster Recovery Services
File: 21
Effective Date: 10/31/97
Vendor: IBM
Contracts Extended
Contract: SAT
Description: Satellite Transponder Services
File: 21
Expiration Date: 08/14/98
Vendor: Keystone
Contract: FOOD
Description: Canned Foods and Staple Groceries
File: 42
Expiration Date: 11/30/97
Vendor: Standard Foods
Contracts to be Reviewed
NOVEMBER
SYSFURN
Modular Systems Furniture
CEREAL
Cereal Breakfast Foods
CALC
Desktop Calculators
SAN-PAP
Sanitary Paper Supplies
LWN-MTN
Lawn Maintenance Equipment
DECEMBER
CATH
Catheters and Related Items
LS
Chemical Glassware
COMFURN
Computer/Word Processing Furniture
OSTOMY
Ostomy Products and Accessories
Purchasing Division Buying Staff
For questions concerning these contracts listed, please contact the appropriate buyer:
File 21
Pam Jones
(558-0067)
File 22
Jim Jackson
(558-0468)
File 31
Charlyn Miller
(558-2596)
File 33
Ron Price
(558-0492)
File 41
Evan Williams
(558-2316)
File 42
Dick Estill
(558-2744)
Are you unsure of certain purchasing procedures? ... Do you need to know what printing
services Consolidated Publishing Facility provides? ... Do you have a question regarding
travel requests? ... Would you want to know what surplus proeprty is available? ... If you
need information concerning any function within the Purchasing Division, complete the form
below: