PED Talks: August 2019

Lydia Dexter Author

09/03/2019 Added

18 Plays

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Fiscal Year-End Wrap Up

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[00:00:00.240]Welcome to our fiscal year end
[00:00:01.990]PED talk summary.
[00:00:03.270]This video will provide a brief highlight
[00:00:05.840]of key talking points from this past PED Talk season.
[00:00:09.660]If you are short on time but want to know a lot
[00:00:12.450]about a little, you are in the right place.
[00:00:15.360]First up is software procurement.
[00:00:17.450]Okay. Okay.
[00:00:18.980]Hello, I'm Scott Stremick
[00:00:20.360]and I'm gonna talk today
[00:00:21.320]about being red in your software purchases.
[00:00:24.570]My biggest takeaway today is to be red
[00:00:27.170]in your software purchasing ideas.
[00:00:29.160]And we will be going over that in a little bit.
[00:00:32.220]Reach out to a representative in IT procurement,
[00:00:35.140]ITS or the Contracts team with any questions.
[00:00:39.000]Any one of us can actually help you get through
[00:00:41.530]your contracts much easier, much quicker
[00:00:44.120]by giving you the information that we would need
[00:00:46.550]in advance to come through engagements with our vendors.
[00:00:50.810]The next part is that when you talk to us,
[00:00:53.890]we'll evaluate your software purchasing ideas.
[00:00:56.840]So if you have ideas for new software,
[00:00:58.720]we'll be able to tell you this as far as something
[00:01:02.210]that has to be given to us in advance.
[00:01:04.390]We need all that we need to follow in terms
[00:01:07.040]of policies, federal, state and university policies and law.
[00:01:11.780]And then we determine the best
[00:01:13.140]course of action for you to go so.
[00:01:15.810]If you come to us, we'll actually be able
[00:01:17.930]to tell you if you should be able to spy it as
[00:01:20.970]a regular contract or if you need to do accounts via quotes.
[00:01:26.200]If you need to go through the RFP process or an RFI
[00:01:29.890]or even if you could just do an RFQ or an ITV type process.
[00:01:34.110]It'll make it a lot easier for you
[00:01:35.790]by reaching out to us in advance.
[00:01:38.830]We're gonna help you and that's what our job is to do
[00:01:41.340]is to make it easier for everybody to purchase
[00:01:43.570]software on the system.
[00:01:46.420]What's needed for software purchases?
[00:01:51.840]Everything you buy has to have a purchase order against it.
[00:01:55.380]PO's come in before invoices and invoice is not a quote.
[00:01:59.770]We want our vendors to go ahead
[00:02:01.390]and give us a quote in advance.
[00:02:03.440]Statement that includes for renewals.
[00:02:06.580]Contracts and PO's go hand in hand.
[00:02:08.697]If you got just the signed agreement,
[00:02:12.060]that does not constitute a finished product in our eyes.
[00:02:15.260]You will need to have a purchase order that goes with it.
[00:02:18.170]Purchasing goes out to the suppliers,
[00:02:22.260]spend and helps in audit purposes.
[00:02:24.730]So you're showing that you have
[00:02:26.490]purchases that were out there.
[00:02:28.350]Some of the stuff is hidden when you use P card,
[00:02:30.710]so when you use that it's locked for us.
[00:02:34.230]A PO also helps against fraudulent invoices,
[00:02:36.770]something that we have had is that
[00:02:38.870]if you have a purchase order,
[00:02:40.190]and accounting has to marry it to an invoice
[00:02:42.810]that they have a complete chain taken care of.
[00:02:45.430]There are instances where we've had fraudulent invoices
[00:02:48.570]come into accounting and they've almost been paid
[00:02:52.100]because it wasn't an invoice and a PO matched against them.
[00:02:56.810]Then easy reporting for spend by vendors.
[00:03:00.020]We do want to make sure that we're taking care
[00:03:03.200]of the procurement itself.
[00:03:04.500]And when we go back and do reports,
[00:03:06.490]we do reports for different vendors.
[00:03:09.120]One thing that IPS will kind of touch on is that
[00:03:13.093]it's just a little bit of
[00:03:14.500]the compliance reviews for software.
[00:03:16.580]We do have to worry about some of the compliance reviews.
[00:03:19.720]Especially right now for new software.
[00:03:22.290]But coming up in the next couple months,
[00:03:24.050]we'll probably actually start looking at how
[00:03:27.060]we use all software in terms of compliance review.
[00:03:30.480]The compliance review includes our enterprise architecture,
[00:03:33.650]identity management, security accessibility,
[00:03:36.720]data and (cuts off).
[00:03:38.470]What we do in procurement contracts
[00:03:41.004]of doing business with the board of regents,
[00:03:45.060]which is the University of Nebraska.
[00:03:47.670]When you send any type of contract request in,
[00:03:51.040]we'd like for it to come in to this email address
[00:03:53.810]no matter what it is.
[00:03:55.130]If it's IT, IT related or a general contract.
[00:03:58.790]Whatever it is, we ask that you send it here
[00:04:01.370]because my team goes ahead and parses it out
[00:04:03.750]to the various end users that need to be looking at it.
[00:04:07.410]Some of the documents that we need to have sent in
[00:04:10.400]right off the bat should be the contract, obviously.
[00:04:14.240]We don't always have that right up front
[00:04:16.840]and you may not have it,
[00:04:18.550]that would be something that you're going to need
[00:04:20.380]to have on your radar and ask for.
[00:04:23.210]If there's a quote and we'd like to see that,
[00:04:26.340]we do also like to have your supporting email documentation.
[00:04:31.500]Like when maybe you have a faculty that's requesting
[00:04:36.270]this purchase for a very specific reason.
[00:04:39.650]It always helps us to understand better
[00:04:41.990]when we go to reviewing the entire thing,
[00:04:44.370]if we know that the contract and
[00:04:46.750]the context of what that is.
[00:04:53.490]Next we will continue into IT procurement,
[00:04:56.150]but the hardware side.
[00:04:59.160]Hi this is Claudette.
[00:05:01.720]I want to talk about general hardware information.
[00:05:05.890]Some of the hardware is audio and visual components,
[00:05:10.780]so that does include cameras and associated supplies.
[00:05:15.840]Computers, monitors, peripherals and servers.
[00:05:21.600]So purchases made via the bid process,
[00:05:25.490]either a request for proposal or a request for a quote
[00:05:29.970]could take anywhere from three to four months,
[00:05:33.660]depending on contract negotiations,
[00:05:36.800]final procurement details that need to be allowed,
[00:05:43.180]all sorts of information.
[00:05:46.740]We will talk more in depth about the eBid process
[00:05:50.640]in another PED talk.
[00:05:55.450]So you want to know what's needed for hardware purchases?
[00:05:59.880]We want to utilize the eSHOP.
[00:06:03.950]You know, this is university-wide
[00:06:05.610]and we really encouraging end users
[00:06:08.240]to go out there and use the tiles
[00:06:11.840]for the technology and audio visual.
[00:06:15.340]They include Dell, Connection,
[00:06:18.380]formerly known as GOV Connection,
[00:06:20.870]B and H Photo and Video, CDW, HP and Newegg.
[00:06:28.680]So you'll always want to request a quote from the supplier
[00:06:32.630]if it's over the particular threshold
[00:06:35.720]that has been mentioned.
[00:06:39.610]So requisition happens first and then
[00:06:43.800]a purchase order will be created.
[00:06:46.300]And then an invoice comes through the portal.
[00:06:49.920]We always encourage everybody to do
[00:06:51.780]their goods receipt on the necessary equipment.
[00:06:57.030]They mention the punch out for Technology and Audio Visual
[00:07:00.320]is on the eSHOP main page.
[00:07:05.807]This is Scott Stremick
[00:07:07.440]So the system does have computer standards.
[00:07:11.220]There are computer standards listed for Dell,
[00:07:13.890]Connections and CDW which carries the Noble product.
[00:07:18.220]Connections carries the HP product.
[00:07:21.540]One of the things that we use,
[00:07:23.400]is why do we use computer standards within our system?
[00:07:25.697]And there's various reasons for it.
[00:07:28.850]As you can see up on the board,
[00:07:29.990]there's one of quicker ship times,
[00:07:32.970]factory asset tagging, factory imaging,
[00:07:36.880]hardware validated for support.
[00:07:40.030]There was an RFP that was completed in the summer.
[00:07:43.460]There will be another one being completed
[00:07:45.620]this following fall, that'll give you
[00:07:47.580]new standards for the system.
[00:07:50.044]Our standards that distributed IT and ITS has created
[00:07:54.230]on a various campuses,
[00:07:56.130]so they are validated for use at all the campuses
[00:07:59.500]and for the departments at this time.
[00:08:04.070]Thanks Scott.
[00:08:05.180]So I just kind of want to mention the computer standards,
[00:08:09.390]so if you're looking for Dell equipment,
[00:08:13.200]you will want to go out to the Dell outside
[00:08:16.370]to purchase any of their computer standards.
[00:08:19.420]If you are looking for HP equipment,
[00:08:22.750]that was awarded to Connection or GOV Connection,
[00:08:26.180]so that's where you will go for the standards.
[00:08:29.080]And Lenovo equipment was awarded to CDW-G.
[00:08:34.370]So while there are system standards,
[00:08:37.400]of course, if the situation dictates
[00:08:40.050]we want to make sure that you know
[00:08:42.340]that individuals can purchase non-standard hardware.
[00:08:46.250]To fit their unique situation for their criteria.
[00:08:50.270]Make sure it meets the needs for your work.
[00:08:54.920]Another component of the procurement process
[00:08:57.160]is inventory, surplus and asset management.
[00:09:02.120]Fixed assets are tangible property owned by the University
[00:09:06.040]that meets a threshold of at least $5000 or more in cost.
[00:09:10.070]And has a life expectancy of at least one year.
[00:09:13.610]On a monthly basis, I am running two different reports.
[00:09:16.970]One report is strictly Capital GL's
[00:09:19.410]and it tells me everything that was purchased a month prior.
[00:09:23.230]I review this report and find that
[00:09:25.120]the majority of the PO's that are listed on this report
[00:09:28.020]will be created as assets.
[00:09:30.440]The other report that I run consists
[00:09:32.610]of purchases not coded to a capital GL.
[00:09:35.810]This is where we can catch items that were purchased
[00:09:38.350]for $5000 or more but maybe they were just coded
[00:09:41.710]to an incorrect GL.
[00:09:43.940]Usually off that report, I can identify two to five PO's
[00:09:47.730]that we will capitalize.
[00:09:49.750]Once I review all of the details of these PO's
[00:09:52.470]and decide what will or won't be an asset,
[00:09:56.190]I give them to John Willmire.
[00:09:58.250]He reviews and assigns the life
[00:10:00.610]and identifies the type of asset that it is
[00:10:03.230]and then logs where it is located.
[00:10:05.570]After John has completed this process
[00:10:07.760]I am able to get them up in SAP.
[00:10:11.670]Once I create all the assets, I send all of the PO's
[00:10:15.160]and the reports to accounting.
[00:10:17.290]Accounting then applies cost to each asset
[00:10:20.300]and then they set up the depreciation schedules in SAP.
[00:10:23.870]Once they give me the okay,
[00:10:25.370]I can then run a tag memo for each one of those assets.
[00:10:29.070]On a monthly basis, that can run anywhere
[00:10:31.200]from 60 to 120 new tags that will sent out to departments.
[00:10:36.364]When this memo is received by the departments,
[00:10:39.200]it will have a little metal tag attached.
[00:10:41.680]We are asking the departments to verify
[00:10:43.560]that all that information is correct and complete.
[00:10:46.650]Please be sure to provide pertinent information
[00:10:49.450]that may be missing, such as serial numbers
[00:10:51.540]and room numbers.
[00:10:53.490]They will then take the metal tag
[00:10:55.819]and attach it to the equipment that it was assigned to.
[00:10:58.040]Then please sign the memo and return it to inventory.
[00:11:05.950]With over 330 million dollars of moveable fixed assets
[00:11:10.600]at the University of Nebraska-Lincoln,
[00:11:12.760]we definitely need to be held accountable for these items.
[00:11:16.220]How we keep track of and verify these assets
[00:11:19.060]is done in a couple ways.
[00:11:21.060]The first being our annual equipment verification listing
[00:11:23.703]that is sent out to each department
[00:11:26.240]and secondly through our biannual physical audit.
[00:11:30.590]The annual verification equipment listing
[00:11:32.890]is sent to every departmental property manager.
[00:11:36.170]We request the listing be reviewed
[00:11:38.020]and all assets be verified.
[00:11:40.260]After verification is complete,
[00:11:42.100]the listing needs to be signed and dated
[00:11:44.610]by the departmental director or chair person.
[00:11:47.950]The date is of utmost importance,
[00:11:52.123]as it will be populated in the fixed-asset module,
[00:11:54.200]thus showing the annual verification.
[00:11:56.980]Once signed, a complete copy needs
[00:11:58.880]to be sent back to our department.
[00:12:01.130]This may be done via campus mail
[00:12:03.230]or you can send a PDF of the listing.
[00:12:06.470]For departmental property managers
[00:12:08.180]who have taken our fixed-asset training class,
[00:12:11.330]you may go into SAP fixed-asset module
[00:12:16.070]and make updates on your own.
[00:12:17.920]After you save these updates,
[00:12:19.450]you may download SAP listing to an excel spreadsheet.
[00:12:23.260]Attach it and send it to me electronically.
[00:12:27.290]The benefit of this training is it allows you
[00:12:30.180]to make updates as they occur throughout the year.
[00:12:33.600]Biannually it's always our pleasure to visit you folks
[00:12:36.540]to conduct our 25 percent physical audit
[00:12:39.390]of your department's equipment.
[00:12:41.480]The one thing we promise we will never do
[00:12:43.410]is surprise you with this.
[00:12:45.230]Depending on the number of assets we need to audit,
[00:12:47.801]will determine the notification date given
[00:12:51.470]to allow you ample time to prepare.
[00:12:53.520]As we never want to make these audits a tense situation.
[00:12:57.910]Please remember this subject
[00:13:00.154]and the procedures that go with it
[00:13:01.617]are mandated by state and federal regulations
[00:13:03.900]and that we are here to help you,
[00:13:05.290]not hinder you with asset verifications
[00:13:08.060]so our university stays in compliance.
[00:13:14.530]Mid-year we covered a variety of small topics
[00:13:17.170]during our popcorn session including Microsoft fees,
[00:13:20.390]Contract Management and GL codes.
[00:13:25.460]Hi this is Claudette.
[00:13:26.730]And I wanted to talk about the Microsoft Fees.
[00:13:30.300]You might know that when you purchase a new computer
[00:13:34.090]you get assessed the Microsoft fees
[00:13:36.080]for the operating system in the office
[00:13:38.430]that you can put on there.
[00:13:39.960]Well these charges have not been increased since 1999.
[00:13:45.025]Previously, Windows machines the rate was 130
[00:13:50.500]and it went up to $146.
[00:13:53.740]And on the Mac side, it went from
[00:13:57.131]$40 to $48 per device.
[00:13:59.980]So effective January of 2020,
[00:14:04.160]Windows will be going from $146 to $162.
[00:14:11.500]And the Mac devices will be going from $48 to $56.
[00:14:17.630]That includes on the Mac side, iMac, iPad,
[00:14:21.810]MacBook Pros those type of devices.
[00:14:26.120]And of course all the Windows machines.
[00:14:28.930]It does not include servers.
[00:14:33.670]It's been a few years since we've touched base
[00:14:36.000]about what was known as LB429.
[00:14:39.620]At the time it was a new bill that went into affect in 2013.
[00:14:44.350]You can see right here, it's now called
[00:14:46.170]the State Statute 84-602.03.
[00:14:51.550]I think I still call it LB429, but anyway.
[00:14:55.730]So this bill was passed in order
[00:14:57.520]to be compliant with the Taxpayer Transparency Act.
[00:15:01.090]And per the law in the state of Nebraska,
[00:15:03.660]and in order to be compliant,
[00:15:06.412]you need to be able to upload or you need to upload
[00:15:09.330]any contract expenditures of a penny or more.
[00:15:13.460]And so if you're doing a contract
[00:15:15.410]that's actually going to be expending money
[00:15:18.070]that would qualify.
[00:15:20.040]Purchase orders are considered to be contracts as well
[00:15:23.170]but they automatically load through different process.
[00:15:26.780]So today we're just talking about contract documents.
[00:15:30.860]Here's the state website.
[00:15:33.040]And this is where pretty much all
[00:15:34.680]of the state entities upload their contracts.
[00:15:38.190]It's pretty intuitive,
[00:15:39.330]if you go out there and look around,
[00:15:41.020]there's drop-down boxes that will kind
[00:15:43.050]of walk you through what you're looking at.
[00:15:46.270]So what defines a contract
[00:15:48.000]in the eyes of the state of Nebraska?
[00:15:50.720]Well, it's accepted and signed by two parties.
[00:15:53.690]So it's an agreement that has two signatures
[00:15:56.990]and it creates and obligation enforced by law.
[00:16:00.510]So somebody's gonna offer us something
[00:16:02.510]and we promise to pay for that offering.
[00:16:05.460]If includes amendments and documents
[00:16:08.000]that are incorporated by reference
[00:16:09.980]which means that if we extend something
[00:16:12.120]or we change the scope of work, we need an amendment
[00:16:15.290]to change that contract and that document.
[00:16:18.700]Sometimes an amendment will not be for increase of money
[00:16:22.330]so you wouldn't necessarily need
[00:16:23.930]to worry about uploading that.
[00:16:26.370]But oftentimes, if the scope is changed
[00:16:28.900]or the term of the contact changes
[00:16:31.200]it also effects the money that is being expended.
[00:16:39.230]So what are commodity codes,
[00:16:42.340]which are also known as GL
[00:16:44.360]or general ledger account numbers.
[00:16:47.420]These are standard classification codes that are used,
[00:16:50.830]established by the university
[00:16:52.790]and frankly, any other organization, we all do this.
[00:16:57.530]It's a best practice for several reasons.
[00:17:00.170]And primarily it helps and assist an organization
[00:17:04.461]in understanding what people are buying,
[00:17:06.100]what you are buying, from whom,
[00:17:08.630]and how we can leverage spend for the university at large.
[00:17:13.450]So commodity codes help us basically understand
[00:17:16.110]where money is being spent.
[00:17:18.600]There's a list of these current codes
[00:17:20.800]that are available for you in Sapphire.
[00:17:22.960]I also believe there might be a copy
[00:17:25.080]of that same report in Vox.
[00:17:27.220]The numbering scheme is probably
[00:17:29.816]fairly familiar to everyone.
[00:17:31.040]And you know, you don't have to be a scientist
[00:17:33.440]to understand how it goes together.
[00:17:35.550]Once you look at the list,
[00:17:37.690]it's fairly self explanatory.
[00:17:39.140]I think there's also some instructions
[00:17:41.142]to request a new code if you think
[00:17:44.330]there isn't a GL to match the product you're purchasing.
[00:17:47.930]But I urge you to get familiar with the current ones.
[00:17:50.800]Because it's likely the codes you need is already there.
[00:17:54.950]We have found that when we start to go back in
[00:17:57.500]and do analysis on spend prior, year over year
[00:18:00.710]and using the GL codes as a search feature,
[00:18:04.070]we find that sometimes purchases get stuck
[00:18:06.290]or classified in categories where they don't belong.
[00:18:09.600]So I urge you to take a look first
[00:18:11.170]before you ask for a new one.
[00:18:13.060]In fact, procurement can even assist you if you're not sure.
[00:18:17.190]So what we're really trying to do here
[00:18:18.940]is just help you understand the importance
[00:18:21.080]of a proper selection of a GL code,
[00:18:23.650]and what they can do for us at large.
[00:18:26.960]These codes tell us what's bought the most
[00:18:29.830]and we can build better contracts as a result of that
[00:18:32.030]to better serve the university and your departments needs.
[00:18:39.326]The purchase of new software
[00:18:41.060]involves many additional touch points,
[00:18:43.080]covered in this next segment.
[00:18:46.350]Hello.
[00:18:47.183]Today I want to talk about what you need to buy software.
[00:18:50.530]The first step that you want to take
[00:18:52.590]is to talk to either your IT resources
[00:18:54.820]that's in your college, reach out to IT procurement
[00:18:58.610]or talk to the ITS Strategic Sourcing representative
[00:19:01.640]in your area.
[00:19:03.180]You need to know if we have the software already.
[00:19:06.270]If we do have the software, it will be found
[00:19:09.020]in the anywhere store in the eSHOP tile.
[00:19:11.690]From there you could just make your purchase
[00:19:13.490]right through the online store.
[00:19:15.810]If it's not actually in the store,
[00:19:17.620]you're always welcome to reach out to IT procurement
[00:19:20.200]for the next step.
[00:19:22.220]By reaching out to IT procurement,
[00:19:24.530]we also can see what can be done
[00:19:26.130]to get you on to an existing contract
[00:19:28.640]or have you fill out a request form that is in eSHOP.
[00:19:33.440]And that will help us to get the quotes
[00:19:35.000]and get you on to the software of your choice.
[00:19:38.070]If you're unsure, we always want you to reach out
[00:19:40.670]to IT procurement and we can take a look at,
[00:19:44.680]if it's already in the system
[00:19:47.846]but it's just not being shown on a tile for some reason,
[00:19:51.120]or if it's something that we can purchase as a university
[00:19:54.580]through a quote process.
[00:19:56.630]At the present time,
[00:19:57.500]we can acquire quotes to make the purchases
[00:19:59.840]or your request through the eSHOP store.
[00:20:05.880]So what if you need a contract to do this purchase?
[00:20:09.580]All contracts should route to
[00:20:11.440]procurementcontracts@unl.edu
[00:20:14.660]regardless if they're IT or anything else.
[00:20:18.590]We'll distribute them but it's easier
[00:20:20.330]to have just one point of entry for a contract.
[00:20:23.560]Some of the documents that we need
[00:20:25.450]included with the contracts,
[00:20:28.360]especially to purchase software,
[00:20:30.460]could include things like quotes or order forms.
[00:20:34.040]Sometimes either one of these things
[00:20:35.880]may have a signature line on it or two signature lines.
[00:20:40.190]Enterprise User License Agreement
[00:20:42.980]need to accompany the contract if the vendor has one.
[00:20:47.070]Terms and conditions, obviously we need those.
[00:20:50.410]And we'd like for them to use our terms and conditions
[00:20:53.417]but sometimes that won't work.
[00:20:55.690]So if they have a set of terms and conditions,
[00:20:58.050]we want to see those too.
[00:21:00.510]If you skip down a couple where it says click-throughs.
[00:21:03.280]A lot of times vendors or suppliers terms and conditions
[00:21:06.872]can be hidden in a kind of hyperlink
[00:21:09.370]within the quote or the order form.
[00:21:11.890]So we ask that you specifically ask
[00:21:14.130]for the terms and conditions
[00:21:15.860]that relate directly to the product that you are purchasing.
[00:21:19.860]Sometimes there will be a need for license agreement,
[00:21:23.180]so we would want to see that.
[00:21:25.740]The scope of work tells us what we're getting,
[00:21:28.120]the bang for our buck here,
[00:21:29.313]so what are our deliverables.
[00:21:32.480]And what are we buying here?
[00:21:34.380]And then whatever else you've been given
[00:21:36.470]by the supplier for signature.
[00:21:38.920]This is just an example of the most common ones.
[00:21:42.470]Often times too, you might have all of these.
[00:21:46.170]We ask that when the first inkling comes around
[00:21:48.850]that you're going to buy some software,
[00:21:50.640]if you could please just ask for any
[00:21:52.740]of the necessary paperwork to get the ball rolling.
[00:21:56.300]And then that way, we can have everything that we need
[00:21:58.980]when we need to start to review.
[00:22:04.670]The workflow process begins.
[00:22:07.140]First of all, procurement contracts,
[00:22:09.590]things come to us and we begin the review and the edits
[00:22:13.217]and the negotiation with the supplier.
[00:22:16.400]We have three entities that we have to keep
[00:22:18.640]in the back our minds as we look at the contracts
[00:22:21.310]and negotiating them.
[00:22:23.020]And that is the Board of Regents, Purchasing Policy,
[00:22:26.810]State Statutes, and Federal Laws.
[00:22:30.100]Once procurement contracts gets everything in
[00:22:32.600]and they start to look at it,
[00:22:34.100]the last thing that we do
[00:22:35.550]is send it over to general counsel.
[00:22:39.190]At the same time ITS Subject Matter Experts
[00:22:42.390]are looking at the various different parts
[00:22:44.530]of the software purchase as it pertains to them.
[00:22:48.170]We've talked about PCI and ADA, which is accessibility.
[00:22:52.590]But there's also enterprise architecture, data,
[00:22:55.900]security and identity management.
[00:22:59.050]Those things all have to be looked at
[00:23:01.440]to make sure that once it's on our network,
[00:23:03.740]it's not going to be detrimental to us.
[00:23:06.870]The subject matter experts have to review,
[00:23:09.490]revise, edit and negotiate that as well.
[00:23:13.340]Once all of the edits, the contract review
[00:23:15.980]and the subject matter expert language has been negotiated,
[00:23:19.650]our CFO and our Vice Chancellor Business and Finance asks
[00:23:23.437]that General Counsel take a look and review it
[00:23:26.310]before any signatures go on it.
[00:23:28.720]So we always have to send it over to general counsel
[00:23:31.110]to make sure that we in fact have caught
[00:23:33.540]what we needed to catch.
[00:23:35.770]We answer any questions and sometimes
[00:23:38.120]we have to get on a call with
[00:23:39.390]our attorney from general counsel
[00:23:41.440]and the suppliers and supplier's attorney.
[00:23:44.090]Large purchases, bids and non-competitive
[00:23:46.560]sourcing is covered in this next section.
[00:23:49.900]Here is a quick review of the dollar thresholds
[00:23:52.080]that we have in place for the purchases of goods
[00:23:54.450]and services here on our campus and across our system.
[00:23:58.070]Anything 10000 up to our bid limit
[00:24:00.710]of 150000 is under uniform guidance rules.
[00:24:04.460]We need to have some comparative quotes
[00:24:07.099]for the purchase of any goods or services,
[00:24:09.400]three quotes if possible for that competitive aspect.
[00:24:13.180]In some instances, one quote can be sufficient.
[00:24:15.810]I highly recommend for any equipment, goods or services,
[00:24:19.330]that you get multiple quotes,
[00:24:20.700]even if obtaining from a private supplier.
[00:24:24.120]What we want to do for this requisition
[00:24:25.900]is to make sure that we're attaching
[00:24:27.320]those comparative quotes internally.
[00:24:29.260]That way we have that documentation for audit purposes.
[00:24:32.710]We want to show that we've done our due diligence.
[00:24:35.170]You can reach out to us at procurement for any assistance.
[00:24:38.390]If you have questions on suppliers
[00:24:40.074]that you do get quotes from.
[00:24:41.570]Moving over to the 150000 dollar and over threshold
[00:24:44.680]is where we see your bid limit come into play.
[00:24:47.220]As soon as you have an idea of goods or services
[00:24:49.730]that you know of or think are gonna be over 150000 dollars,
[00:24:53.490]give us a call or shoot us an email.
[00:24:55.670]We want to be involved as early and as often as we can.
[00:24:58.660]So at that point, we can discuss the variable options
[00:25:01.140]that we can use to move forward
[00:25:02.810]in procuring that good or services.
[00:25:05.210]The RFP or ITB process are going to be
[00:25:08.070]competitively bid processes.
[00:25:10.300]For the RFP you'll have an evaluation committee
[00:25:12.680]that's going to help you select
[00:25:13.910]the best proposal to fit your needs.
[00:25:16.050]Based on requirements and specifications
[00:25:18.090]that you develop early on to get that bid into play,
[00:25:21.100]that's where we're going to be evaluating on.
[00:25:24.230]This process allows multiple suppliers
[00:25:26.060]to bid on the good or services that you're requesting.
[00:25:28.750]There's a typical timeframe of six to eight weeks or longer
[00:25:31.990]depending on the good or services
[00:25:33.500]that you are trying to procure.
[00:25:36.830]So let's talk about non-competitive sourcing.
[00:25:40.330]What it is and what it isn't.
[00:25:43.810]Non-competitive sourcing is a term I also want
[00:25:46.260]to introduce to the group
[00:25:48.020]and help you understand that
[00:25:49.830]it's a more formal term, also known as a sole source.
[00:25:54.950]Something that we really don't want to be very common.
[00:25:59.760]And hopefully this criteria will help you understand
[00:26:03.700]more clearly the distinction.
[00:26:07.310]So what is a non-competitive source?
[00:26:10.710]One example at the top of the list
[00:26:12.500]is only one known source actually exists for this product.
[00:26:17.030]Now, if only one known source exists,
[00:26:20.690]that certainly needs to be proven and documented.
[00:26:24.090]And if only one source exists,
[00:26:26.290]then specifications and other things need to be stated
[00:26:30.540]so that they don't suggest
[00:26:32.830]that we're prohibiting competitive sourcing
[00:26:35.810]but rather the specifications for that product
[00:26:38.830]truly point to one source.
[00:26:42.600]Hopefully that's clear.
[00:26:45.120]Some of these other examples should help
[00:26:46.940]as we go through it.
[00:26:48.550]As I've said before, documented research is also critical.
[00:26:53.140]And by the way, all of these are federal guidelines,
[00:26:56.200]they push right down through uniform guidance to us.
[00:27:00.040]So I just want to make sure that I'm clear on these points.
[00:27:05.210]No other reasonable alternative source
[00:27:07.580]exists for the requirement.
[00:27:09.640]This reiterates a little bit about the top of the list,
[00:27:13.030]it says only one known source exists.
[00:27:16.810]The term reasonable here suggests
[00:27:19.620]that there may be some other requirements
[00:27:22.330]around the purchase, that may impact why the best
[00:27:26.137]and/or only true source for this product,
[00:27:30.299]there might also be some conditions about logistics
[00:27:34.750]and/or timing of the event that create that situation.
[00:27:41.710]Only one source meets the specified needs of the project.
[00:27:45.950]And again, that goes back to the second statement
[00:27:48.390]about specification.
[00:27:50.150]The clearer these are documented,
[00:27:52.360]the better the definition of the non-competitive source
[00:27:55.710]can be made.
[00:27:57.150]And a good example for these would be,
[00:27:59.720]public utility purchases, where you live in a zone
[00:28:04.560]where you can only get such and such service.
[00:28:08.360]Perhaps your electric cooperative or cable service provider
[00:28:13.460]is the only one that can deliver those services
[00:28:16.420]to your office or your location.
[00:28:19.870]So the bottom line is, competitive sourcing is there
[00:28:23.640]to ensure that we're evaluating the market
[00:28:26.820]to always get the best overall price
[00:28:29.240]and those conditions on the left-hand side here
[00:28:32.490]ensure we have a proper definition
[00:28:34.770]for what a non-competitive sourcing event would be.
[00:28:38.340]So let's now talk on the right-hand side of the screen,
[00:28:41.730]about what non-competitive sourcing is not.
[00:28:46.590]So first and foremost, just to suggest you have a preference
[00:28:50.020]for a brand-name product is not going to get you there.
[00:28:53.980]It's too generic, it doesn't accomplish the goals
[00:28:57.560]of what we're trying to accomplish
[00:29:00.240]with meeting policy compliance
[00:29:03.450]and what you're trying to do.
[00:29:05.480]Again, if the product is what you need,
[00:29:08.220]and if there is a competitive market,
[00:29:10.560]a bid or a quote will need to take place.
[00:29:13.600]By itself, a brand is not a specification.
[00:29:18.250]If there is more than one potential bidder
[00:29:20.990]or offer for a product or service,
[00:29:23.170]you'll have to remember that just because it's proprietary
[00:29:26.770]does not automatically justify a sole source either.
[00:29:31.640]Let's take the example of software
[00:29:33.920]or other types of technology.
[00:29:36.980]In this case, quite frequently,
[00:29:39.350]while the software might be manufactured
[00:29:42.150]by the name-brand cooperation or XYZ organization,
[00:29:47.970]software is often distributed by a variety of distributors,
[00:29:51.750]many of them who have the eligibility
[00:29:54.210]to compete for the business.
[00:29:56.010]And they may have advantages for pricing one over the other.
[00:30:00.350]There's also a market out there where some of them
[00:30:02.630]might have better advantage in addition to pricing,
[00:30:06.400]including service delivery.
[00:30:09.550]So that's the way the market works
[00:30:11.770]and we want to take advantage of that.
[00:30:14.870]And by itself as you seen in the last bullet,
[00:30:18.804]uniqueness alone may not qualify the producer
[00:30:23.020]or supplier as a sole provider or a good or service.
[00:30:27.130]Again, you need to spell out the needs
[00:30:29.890]and document what is required and the specifications
[00:30:33.690]and good documentation are really what help us ensure
[00:30:38.180]that anything that you are trying
[00:30:40.950]to sole source truly can be.
[00:30:44.140]The earlier you engage procurement
[00:30:46.140]to assist in this process,
[00:30:48.030]the better we can help guide your documentation.
[00:30:51.170]Okay, lastly we provide a look
[00:30:52.727]the the strategic procurement teams
[00:30:54.600]covering university-wide initiatives.
[00:30:59.720]The benefits a facility strategic team are many
[00:31:02.470]but I want to highlight a few.
[00:31:05.220]The second bullet point to promote consistency
[00:31:08.460]with ordering products through eSHOP.
[00:31:11.380]Procurement services strongly encourages
[00:31:13.360]our campus customers to procure all items
[00:31:16.470]or as many items as possible through eSHOP.
[00:31:20.340]Consistency of doing those orders through eSHOP
[00:31:23.650]help save the university money and time.
[00:31:26.890]It helps our suppliers understand exactly
[00:31:29.090]what the university is looking for in products and services
[00:31:32.660]and gives them an opportunity to fine-tune their operations
[00:31:36.150]to help serve the university better.
[00:31:39.890]The third bullet point is to review and standardize
[00:31:42.500]products using our campuses.
[00:31:44.730]Once we started the facilities strategic team,
[00:31:47.100]we realize that a lot of our campuses
[00:31:48.990]are utilizing different facilities related products.
[00:31:52.300]A couple examples being different prime suppliers
[00:31:54.870]for electrical supplies, plumbing supplies
[00:31:57.330]and custodial supplies.
[00:31:59.550]We want to try to standardize these products
[00:32:01.660]to help gain some addition spend
[00:32:05.270]and to maintain the consistency with the product
[00:32:08.860]that we're using on all of our systems.
[00:32:12.350]Another bullet point is to explore options
[00:32:14.670]for gaining pricing leverage with suppliers.
[00:32:18.020]The more power that we have as a whole university system,
[00:32:21.750]the more buying power we have with these suppliers.
[00:32:24.580]The more consistency that we have
[00:32:27.860]of using the same products on all of our campuses
[00:32:30.400]gives us more power for us with these suppliers
[00:32:33.530]to try to leverage some addition spend discounts
[00:32:36.720]for the quantity that we're purchasing.
[00:32:39.490]Lastly, to receive more accurate spend reporting
[00:32:42.380]for the University of Nebraska,
[00:32:44.800]spend reporting has been difficult
[00:32:46.720]and it hasn't been dependable in the past.
[00:32:49.560]Getting the suppliers put in eSHOP
[00:32:51.520]and being more consistent with the suppliers
[00:32:53.630]that we're using will help us gain
[00:32:55.700]more accurate spend reports,
[00:32:57.630]so we can leverage that spend detail,
[00:33:00.040]figure out where we're short on items
[00:33:02.744]and where our strengths are.
[00:33:07.570]Hello this is Scott Sternwick
[00:33:09.265]and I'm gonna talk about the benefits
[00:33:10.350]of an IT strategic team.
[00:33:12.630]The first benefit of the strategic team
[00:33:15.050]is the continuity or products across the campuses.
[00:33:18.260]This allows for us to have a state of stability
[00:33:21.380]for hardware and software purchases
[00:33:24.200]across all four campuses.
[00:33:26.440]Everybody is using similar tools
[00:33:28.300]for ease of business everyday.
[00:33:30.120]Not just for the users but also for ITS client services,
[00:33:33.740]to help service each of these products easier.
[00:33:37.320]By being collaborative, we can leverage vendor spend
[00:33:41.710]and be able to reduce what we spend on,
[00:33:44.523]with smaller suppliers, on different products.
[00:33:49.510]The more we spend with particular vendors,
[00:33:52.200]it helps leverage our prices.
[00:33:54.340]It allows us to utilize some of the different tiers
[00:33:56.970]that are within a certain provider
[00:33:58.940]and their pricing structures.
[00:34:01.710]Another point is the consolidation
[00:34:04.230]of suppliers on the campuses.
[00:34:06.630]We are always welcoming new suppliers
[00:34:10.040]but not having a whole bunch of suppliers
[00:34:12.240]makes it easier for us to have strategic,
[00:34:16.160]possible long-term conversations.
[00:34:19.020]When there's less suppliers we can actually build
[00:34:21.180]better relationships across all campuses.
[00:34:25.020]The next point is to help us establish standards.
[00:34:28.320]For us using the same software or hardware across campuses
[00:34:32.360]helps build the continuity and allows for campuses
[00:34:35.100]to have a more consistent product process and material
[00:34:39.080]and serve us much better to ensure better service
[00:34:42.750]from our end users.
[00:34:44.710]Next is creating a consistent practice
[00:34:47.900]for purchasing software and hardware.
[00:34:50.800]We want a policy that says how we should
[00:34:52.990]go about purchasing our hardware and software.
[00:34:55.880]Procurement is always looking at better ways to purchase.
[00:34:58.940]It is something that we're working on
[00:35:00.850]to make a little bit easier of a process.
[00:35:04.260]More especially for software, less so much for hardware.
[00:35:08.010]But definitely having something a more consistent practice
[00:35:11.130]that allows everyone to follow easily.
[00:35:14.440]Another big one is communication.
[00:35:16.720]Increasing our category knowledge.
[00:35:19.040]Knowing what other campuses know about a product
[00:35:21.540]and how they are using it and sharing
[00:35:23.600]that knowledge with each other
[00:35:25.490]will allow for a better use of the product.
[00:35:28.160]Using a standard product means information
[00:35:30.500]can be shared without distortion.
[00:35:33.170]The last one is security across the system.
[00:35:36.160]It would make it easier for them,
[00:35:38.110]IT security to manage on-campus use
[00:35:40.139]if we all were using a consistent, similar product.
[00:35:44.290]For example, when they put out their security patches.
[00:35:47.780]We're all using a similar product in a similar manner.
[00:35:51.260]The benefits are that we reap having a collaborative effort
[00:35:55.380]across the campuses for our products.
[00:36:01.070]Consolidating spend to our preferred
[00:36:02.870]and contracted suppliers is important.
[00:36:05.110]Within the scientific category, we have two major players
[00:36:07.810]at the top tier of our scientific suppliers.
[00:36:10.600]First your scientific and VWR.
[00:36:12.730]We have a vast selection between the two suppliers
[00:36:15.040]that will fit a lot of our laboratory
[00:36:16.750]and research needs here on campus
[00:36:19.058]for consumables, chemicals, and equipment.
[00:36:21.200]We want to drive a lot of spend for our consumables
[00:36:23.450]in standard laboratory usage supplies through these two.
[00:36:26.980]In addition, we want to make sure that we're trying
[00:36:28.920]to consolidate with our second tier of specialty suppliers
[00:36:33.010]so we're not having a lot of tail end spend
[00:36:34.810]that dilutes our spend across a lot of suppliers.
[00:36:37.970]The more spend that we drive onto our preferred
[00:36:39.950]and contracted suppliers, the better leverage we'll have
[00:36:42.400]with the suppliers that we have agreements with.
[00:36:45.630]So on our Fisher contract, as we derive more spend
[00:36:48.730]onto that contract, we meet certain thresholds of spend,
[00:36:52.680]we get certain percentages off,
[00:36:54.360]discounts off certain categories
[00:36:56.180]if we meet those thresholds.
[00:36:58.750]We want to enable a more diverse selection of suppliers
[00:37:01.530]to engage with eSHOP.
[00:37:03.200]I know it's kind of a conflicting statement
[00:37:05.210]with consolidating our spend
[00:37:06.770]but we want to make sure that we have
[00:37:08.180]the best selection possible for
[00:37:09.710]our end users to meet their needs.
[00:37:11.710]Scientific is a really diverse category
[00:37:14.550]and the campuses are very diverse in what they utilize.
[00:37:18.108]We also want to bring suppliers
[00:37:19.720]to our e-procurement platform
[00:37:21.240]to really streamline the process for our (cuts off).
[00:37:25.150]We're going to bring visibility
[00:37:26.230]to suppliers across the system.
[00:37:28.090]There may be a supplier that the other campuses
[00:37:30.590]didn't know was an option.
[00:37:32.260]A great example is Illumina.
[00:37:34.440]UNMC uses Illumina heavily.
[00:37:37.290]There's a little bit of small usage here on UNL campus
[00:37:40.120]but bringing them onboard to our e-procurement platform
[00:37:42.960]is going to bring visibility to all of our campuses
[00:37:46.430]and that way we are driving that spend
[00:37:48.200]into that supplier and coming back
[00:37:49.890]to leverage that pricing and consolidating that spend.
[00:37:54.040]We're also going to promote the open communication
[00:37:56.180]and collaboration among campuses.
[00:37:58.300]There's power in numbers and we're going to drive the spend,
[00:38:00.960]drive the leverage to ultimately benefit the U-wide system.
[00:38:04.950]There's going to be more precise reporting.
[00:38:07.170]We can have a better handle on our category
[00:38:09.230]by understanding our strength in our numbers
[00:38:11.220]as well as our strength in suppliers.
[00:38:13.780]We can engage with pricing agreements
[00:38:16.070]or engage in further negotiations to benefit our end users.
[00:38:24.080]Thank you for taking the time
[00:38:25.240]to learn a little more about the variety
[00:38:27.020]of procurement topics.
[00:38:28.250]We look forward to seeing you this next fiscal (cuts off).

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PED Talks: August 2019

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