Diane Holley, Editor

Welcome to the September 1998 Issue
of the The Buyers Network!

West Virginia Purchasing Bulletin Now
Offered to State Agencies Via Intranet

The Problem

State agencies wanted to view the West Virginia Purchasing Bulletin online. However, due to the paid vendor fee, which includes the subscription to this publication, the Purchasing Division had to install certain access stipulations to ensure that only those paid vendors would view the online document.

The access fields included the vendor’s TEAM generated number and the check number which was used to pay the fee. Obviously, state agencies did not have this information.

Offer the West Virginia Purchasing Bulletin on the Intranet, which only computers connected to the state’s main server can access.

How can you reach the Intranet? The Intranet may be accessed at the following address: http://intranet.state.wv.us. Once you reach the main page, click onto "Administration" and then "Purchasing". At the Purchasing Division’s main Intranet page, a hotlink to the West Virginia Purchasing Bulletin is available with no access stipulations. Automated ‘fire walls’ are in place to prevent access from computers not connected to the main state server.

For the record, this issue was raised at the "Internet for Purchasing Professionals" workshop at the spring purchasing conference...Another example of the importance of two-way feedback at our conferences!

"Doing Business with the State" Video Available

The Purchasing Division conducted a teleconference via satellite transmission last fall to eleven different sites within ten cities in West Virginia. The goal was to provide information to state vendors who were interested in doing business with state government.

This presentation was converted into video format which may be viewed on a videocassette recorder. If your agency knows of any vendor who may be interested in borrowing this informational video, please contact Diane Holley at (304) 558-0661.

The Director's Comments
          Best Value Purchasing Targets Protest Process

By Dave Tincher
Purchasing Director

In last month’s issue of The Buyers Network, we explained "Best Value Purchasing," the new philosophy in state purchasing. We referred to this ‘re-engineering process’ as a step forward in efficiency and responsiveness.

Recently, this new way of ‘doing business’ changed the Request for Proposal process from a two step process to a one step. In addition, the Purchasing Division is now more involved in evaluation committee selection and training.

Another process which has changed is the protest procedures. The levels or steps of protests have also been reduced from two to one. This is expected to simplify the process, saving two to four weeks.

The Purchasing Director now has the option of stopping or continuing an award which allows important projects to continue while protests are being resolved. A formal hearing previously was at the option of the protestor at the second level; however, the new process requires the hearing to be the option of the Purchasing Director.

This new protest procedure expedites the mechanism that allows vendors to express their concerns to the Purchasing Division.

Division of Highways Implement Long Term
Plan to Close Agency Pumps

The West Virginia Department of Transportation (DOT) has began implementing a long-term plan to close the agency operated gasoline pumps throughout the state.

According to Danny Ellis, DOT's Business Manager, the Department operates a number of pumps within each county throughout the state. Thus far, approximately 12 stations have been closed, including the station on California Avenue on the State Capitol Complex.

The 25-year plan is to gradually phase out this business. "At one time, operating these facilities was a good idea. However, due to economic and environmental concerns as well as concerns of liability, we have decided to gradually close the agency's pumping stations," he said.

When the agency operated stations were started, private gasoline facilities were not as accessible as they are today. However, most communities have gasoline stations that now offer 24 hour service. According to Ellis, the Department liked the idea of offering their drivers a universal credit card. This idea was originated from the Purchasing Division, which uses PHH Vehicle Management Services for their Fleet Management Program. "For as many reasons why the Department got into the business, we have as many or more reasons for getting out of it," he said. "In the long run, it all comes down to simple economics."

Janice Boggs Selected to Serve as Fleet Manager

Janice Boggs, who has served the Purchasing Division as the State Capitol Parking Manager and assistant to the Fleet Management Office, recently was selected as the state's fleet manager.

Effective August 15th, Boggs took over this position which was recently vacated by Ken Miller. He accepted a position as full-time professor at the College of West Virginia in Beckley.

"I look forward to maintaining and building upon the relationships which have evolved over the years with the agency fleet coordinators," Boggs said. "Their continual support for the program and assistance in improving our business practices are always encouraged."

Fall Purchasing Conference Schedule Announced

Have you registered for the 1998 Fall Purchasing Conference yet? Time is ticking away, with the deadline for registration on September 19th.

The conference will be held on October 26-29, 1998 at Canaan Valley State Resort & Conference Center in Davis, West Virginia. The format will be consistent with previous purchasing conferences. The majority of the training will be offered in small workshop sessions. The cost for attending this conference is $75 per participant.

Topics of discussion deal with a wide range of services and programs administered by the Purchasing Division (see workshop grid below). In addition, the Purchasing Division has invited representatives from Prison Industries, West Virginia Association of Rehabilitative Services and the State Leasing Office to share information. For more details on the conference schedule or registration procedures, please contact our conference coordinators: Diane Holley (558-0661); Debbie Watkins (558-3568); Carol Jarrett (558-2309); and Vickie Goodall (558-7839).

CONFERENCE WORKSHOP SCHEDULE

Monday, October 26th
Conference Registration 5:00 p.m. - 8:00 p.m.

Tuesday, October 27th
Conference Registration 7:30 a.m. - 9:00 a.m.
Conference Commencement & Breakfast 9:00 a.m. - 10:15 a.m.

Breakout Sessions
Travel Management, Vendor Registration, PURCHASING JEOPARDY!, Introduction to Purchasing

Breakout Sessions
Purchasing Card Program, Information Technology Contracts, PO Encumbrance Module, Introduction to Purchasing

Breakout Sessions
Request for Proposals, Prison Industries, Internet for Purchasing Professionals, WV Association of Rehabilitative Facilities

Conference Banquet 6:30 p.m.

Breakout Sessions
Leasing Property, Fixed Assets, Purchasing Legal Issues, WV Association of Rehabilitative Facilities

Breakout Sessions
Purchasing for Experienced Professionals, Prison Industries, PURCHASING JEOPARDY!, Surplus Property

Group Luncheon 11:45 a.m. - 1:00 p.m.

Breakout Sessions
Request for Proposals, Statewide Contracts, TEAM, Surplus Property

Breakout Sessions
Purchasing Card Program, Information Technology Contracts, PO Encumbrance Module, Consolidated Publishing Facility

Thursday, October 29th

Breakout Sessions
Travel Management, Statewide Contracts, Purchasing Legal Issues, Consolidated Publishing Facility

Breakout Sessions
Purchasing for the Experienced Professional, Prison Industries, TEAM, Leasing Property

Conference Conclusion

Chief Technology Office's Role and Objectives Defined

During Gov. Cecil H. Underwood’s administration, five key issues have continued to be emphasized: economic development, health care, education, government and technology. Although all of these issues affect the purchasing process, technology seems to have made the biggest impact.

On July 1, 1997, the governor proposed, and the State Legislature passed, a law that would establish a chief technology officer (CTO). Historically, Information Services & Communications (IS&C) Division under the Department of Administration served as the state’s sole technical resource. The CTO was to provide a more universal look at technology in state government, according to John McClure, CTO Senior Technology Officer. The charge of their office highlights five main points:

1. Develop an organized approach to information systems;

2. Evaluate information processing procurement for efficiency and justification. Review purchases, leases and acquisitions of information processing equipment;

3. Eliminate paper forms;

4. Provide better ways to link information systems;

5. Recommend all resources needed to centralize information processing in state government.

The CTO’s office recently celebrated its first year of existence. What has been their biggest obstacle? You guessed it!...the Year 2000 dilemma. "Vendors that we deal with don’t like how we require them to comply with our standard," McClure said. "The CTO has a standard for Year 2000, but we are willing to negotiate certain aspects. If acquisitions are delayed directly or indirectly, it is most likely due to the Year 2000 language."

McClure explains that technology is changing so rapidly that agencies should expect to experience many changes over the next couple years. "A big thrust has been in electronic commercing (electronic signatures), which the Legislature passed. This offers transactions between state government, within state government and outside state government," he said.

Another area of change is in communiations. Many of us have access to the Internet (communication between you and the world). The Intranet offers communication in a more secured operation (between users of a particular server). And, an Extranet provides communication between you and your business partners. All of these windows to the world are part of business today and tomorrow.

Other issues currently under the CTO's review include:

1. Approval Process: Modifying the approval process through automation (reduction of paper forms). Currently testing online approvals among agencies, IS&C, the CTO’s office and the Purchasing Division.

2. Email: Increasing the usage and access of email to state employees.

3. WV2000 (aka, the Courtroom of the Future): Currently used and tested in several areas (corrections and education). Offers electronic attendance for classes, hearings and other opportunities.
   

Printing Resources Consolidated as Part of Plan

A recent agreement between the Department of Administration and the Division of Corrections have resulted in the consolidation of two state printing resources. For years, two separate print shops, Consolidated Publishing Facility's (CPF)offset printing operation and Prison Industries’ printing facility, have competed for state business.

CPF’s offset operation is organizationally structured under the Purchasing Division. CPF also operates four Quick Copy Convenience Centers at various locations within the Kanawha Valley. These operations and approximately 12 employees who work at these centers will not be affected in this consolidation agreement.

"With two state agencies in essentially the same business, consolidation was a logical option," according to Dave Tincher, Purchasing Director. "By pooling resources from each, customers will benefit from more high quality service and deliverables."

Two high-volume printing presses and 20 employees from the offset operation will be transferred from CPF to Prison Industries at either the Mount Olive Correctional Center in Fayette County or the Northern Correctional Center in Moundsville.

In May of this year, the former Thomas Jefferson Junior High School building in Charleston, which housed the offset printing function for many years, was sold to developer McCabe-Henley Properties.

The CPF offset workers are expected to make the transition to the Division of Corrections by mid-September.

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UPDATE: Capitol Parking Garage Awarded

An award for the construction of the new parking garage to be located on the Capitol Complex was made to Carlton Construction Company, a West Virginia vendor. Two vendors had submitted proposals for this project. Six options were offered by Carlton and two options were offered by the other vendor.

The total cost of the proposal submitted by Carlton for the option selected is $5,648,500. The proposal is for the design and construction of the garage, which will include over 750 vehicle spaces. Construction is scheduled to begin in October and those state employees who currently park in the construction zone will be reassigned to alternative parking areas. Approximately 250 spaces will be affected by this project. The time schedule which Carlton has provided for the construction of the garage details when each individual task will be performed. According to this schedule, the project should be completed by June of 1999. A ground-breaking ceremony is scheduled for October to officially begin the construction of the Capitol parking garage.

MONEYWISE...Tips for the Thrifty

Most Americans save only 3.8 percent of what they earn, but they could save more. Interesting money-savers for families:

• Take advantage of free local activities like kite-flying contests, parades and festivals. Have potluck dinners with friends instead of dining out.

• Keep long-range goals in mind and have a separate savings plan for big items like the kids' college education.

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REMINDER: Agency Purchasing Manuals Available

Copies of the Agency Purchasing Manual are still available at $10 each by contact Vickie Goodall at (304) 558-7839 or email (vgoodall@ gwmail.state.wv.us).

Please Note: Recent revisions were made to Sections 8 (Formal Bid Process) and 9 (Procurement of Professional Services) and were mailed to those who received the new manual (effective July 1, 1998).

If you did not receive a copy of these revised sections, please contact Vickie.

www.state.wv.us/admin/purchase
   What's New on the Purchasing Division's Website?

Need information on purchasing policies? Go to our website.

Need a telephone number or email address for a member of our staff? Go to our website.

Need a copy of the WV-96, Agreement Addendum, or WV-1, Vendor Registration & Disclosure Statement? Download these forms from our website.

Most of your needs can be met by visiting the Purchasing Division’s website (www.state.wv.us/admin/purchase). Recently, two new features were added to our Internet site: the Agency Purchasing Manual and the Staff Photo Gallery.

The manual can now be accessed online from our main homepage. A table of contents leads you through the various sections from general information to the formal bidding process to the receipt and invoicing processes.

Another addition to our site is our Staff Photo Gallery. Have you ever wanted to put a face to a name? This is your chance! Many of our professional staff members can now be viewed from our main page or by accessing our site map which can also be found our main page.

During the 1998 Spring Purchasing Conference, Purchasing Division webmasters Dan Miller and Diane Holley conducted a workshop, "Internet for Purchasing Professionals". Over 100 agency procurement officers attended the class and offered valuable suggestions. Several additions were made to our site after this workshop. A similar workshop showcasing our website is scheduled for the fall conference (see page 3 for details).

Please feel free to offer suggestions at the conference or at any time to Dan (558-2314 or email team@gwmail. state.wv.us) or Diane (558-0661 or email dholley@gwmail.state.wv.us).

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QUESTION OF THE MONTH

What happens if you receive an invoice that doesn't match with the total cost on the purchase order or contract?

Invoice unit prices may deviate from purchase order/contract prices and/or the extension of the unit prices times quality may be in error such that the total dollar amount of an invoice is greater or less than that specified by the purchase order/contract. An invoice deviation greater than that specified by the purchase order/contract is acceptable provided it does not exceed the lesser of $5.00 or 5 percent of the total invoice amount. When an invoice deviation exceeds the acceptable deviation, it is to be returned immediately to the vendor for correction.

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Purchasing Solicits Input for the
Planning of a Vendor Conference

The Purchasing Division plans to offer a Vendor Conference in the spring of 1999. In preparation of this training for West Virginia vendors, a questionnaire was distributed in the West Virginia Purchasing Bulletin for vendor feedback. Many positive, enthusiastic responses were received.

In providing this training, agency procurement officers will be solicited to help by serving as panelists or as presenters. From the feedback received thus far, most vendors indicated an interest in learning more about the award process, requests for proposals and agency purchases.

More details on this project will be reported soon in The Buyers Network.

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Current Statewide Contract Update

Information and dates (as July 16, 1998) included in this Current Statewide Contract Update are subject to change. If you need additional information, please contact the appropriate state buyer.

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 property is available? ... If you need information concerning any function within the Purchasing Division, complete the form below: