BROWARD COUNTY COMMISSION
2 0 1 PURCHASING DIVISION FISCAL YEAR ANNUAL REPORT
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Table of Contents Message from the Director of Purchasing ...........................................................................................3 Mission Statement .............................................................................................................................5 Organizational Structure ....................................................................................................................6 Section Introductions .........................................................................................................................7 Goods/Services, Construction and Central Warehouse/Logistics Unit................................................... 7 Centralized Services Unit .......................................................................................................................... 7 Professional Services Unit ........................................................................................................................ 7 Administrative/Operational Support Services Unit ................................................................................ 7 Information Technology Unit ................................................................................................................... 8 Resource Center Unit ................................................................................................................................ 8 Statutory Authority ............................................................................................................................9 Purchasing Division Accomplishments .............................................................................................. 10 Recognitions, Awards, Accreditations, and Certifications .................................................................... 10 Organizational Improvements .......................................................................................................... 11 Administration........................................................................................................................................ 11 Professional Services .............................................................................................................................. 12 Goods/Services/Construction ................................................................................................................ 12 Centralized Services ................................................................................................................................ 13 Information Technology ......................................................................................................................... 13 Resource Center...................................................................................................................................... 14 Customer Service and Outreach ............................................................................................................. 16 Electronic Bidding ............................................................................................................................ 18 Financial Statistics/Procurement Activities for Fiscal Year 2014 ......................................................... 19 Master Agreement Awards .................................................................................................................... 19 Page 1
Awards by Agency .................................................................................................................................. 22 Vendor Participation .............................................................................................................................. 23 Contracts Awarded to Vendors by State, County and City ................................................................... 24 Statistical Comparison with Previous Years ....................................................................................... 27 Contract Awards ..................................................................................................................................... 27 Vendor Awards by Region ...................................................................................................................... 28 Value Added Cost Savings ...................................................................................................................... 29 Procurement Operations .................................................................................................................. 30 Procurement Processing Times .............................................................................................................. 30 Purchasing Cards (P-Cards) .................................................................................................................... 31 Delegated Purchasing Authority Audit Program .................................................................................. 34 Organizational Development Program ................................................................................................. 34 Central Warehouse Operations ........................................................................................................ 36 Surplus Property Disposal ...................................................................................................................... 36 Emergency Preparedness Operations .................................................................................................... 36 Social Responsibility......................................................................................................................... 37 Certified Vendor Participation Program ................................................................................................ 37 Living Wage Program ............................................................................................................................. 37 Major Projects ................................................................................................................................. 38 Organizational Focus for Fiscal Year 2015 ......................................................................................... 41
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Message from the Director of Purchasing Procurement of goods and services plays a critical role in government and the Purchasing Division continues to assure fairness in the procurement process while continuing to provide the highest quality of products at the most economical price. During fiscal year 2014 the Purchasing Division undertook initiatives that will improve services to both our internal and external clients. This past year’s focus was on process improvements. The Division in collaboration with County Administration and all departments of the County established a Procurement Taskforce to review the current procurement processes to determine best practices in procuring goods and services for the County. Through this collaborative effort we were able to identify opportunities to streamline and improve processing times for purchases, create a more transparent procurement process, and create a team approach to procurement. Review the following links, as the reports have been developed by the various teams; some of the recommendations have been vetted and approved for implementation: RFP Process Improvement Report and Quote Process Report. These are exciting times for Broward County!! As part of our commitment to accountability and transparency, the Purchasing Division enhanced the Procurement Milestones application. Through this application, our client agencies are able to track the status of their procurements in an effort to plan for their day-to-day operations. There is more to come for this application. As part of the Taskforce review, there are plans to further develop Procurement Milestones, by programming the application to agencies regarding specific milestones. This is a great management tool for the Division and our clients. If you have not received a copy of this report contact the Resource Center of the Purchasing Division to be added to the list. I encourage you to view the Purchasing Division Accomplishments and the Organizational Focus for Fiscal Year 2015. As a result of the County’s strategic approach to fiscal responsibility, our local economy is gaining strength. Broward County businesses have been able to create more jobs and more residents are employed today than last year. Broward County businesses have been able to create more jobs and more residents are employed today than last year for the period of August 2013 through September 2014. As reported by the U.S. Bureau of Labor Statistics the unemployment rate plummeted by 10.3%, from 5.8% to 4.5%. All of this does not occur by accident, but occurs because of the County’s commitment to reinvest the revenues collected from our taxpayers’ back into our community. In FY 14 the Board of County Commissioners approved the “Workforce Investment Program,” a program designed to assist the residents of the community in securing jobs that are being created from projects that are approved by the Board. Visit our website to read about the program. Each year we report the financial data regarding our total dollars spent on goods and services for the County. During FY 2014 the total dollars awarded to vendors conducting business with Broward County was $607,948,936, in which 50.7% or $308,303,324 was awarded to vendors located within Broward County; 68.9% or $419,155,709 within the tri-county area (Broward, Palm Beach and Miami-Dade); and $460,145,161 within the State of Florida. Of the total dollars spent, $43,953,795 or 7% was awarded to Page 3
vendors who are certified in one of the County’s approved local small business and County business certification programs. Our future looks prosperous as we continue to focus on the major projects that are in progress and others nearing completion. You are encouraged to view the Major Projects section of this report to see the list of projects that are underway. In closing, I would like to extend my sincere appreciation to the Broward County Commission, the County Administrator and her entire team, and all of our great partners throughout the County for their support. Thank you to those who contributed to this report, and to my entire staff for their commitment, effort and dedication to providing excellent professional services to the County. It is my distinct honor to present to you, the Purchasing Division Annual Report for Fiscal Year 2014, as it illustrates, “Our Best. Nothing Less.” service to Broward County.
Brenda J. Billingsley, Director
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Mission Statement The Purchasing Division provides a unified purchasing system that ensures integrity and fairness, with centralized responsibility for oversight of solicitations, vendor selection, negotiation, award, contract management, reporting, disposal of surplus property and emergency logistical support for the benefit of Broward County agencies. The major objectives are:
to comply with the comprehensive federal, state and county procurement and contracting laws which govern expenditure of public funds to provide timely responsive support to client agencies to generate broad participation and competition among potential suppliers and contractors to ensure quality products and services at competitive prices to ensure equal opportunity to all qualified vendors and contractors wishing to compete for Broward County contracts to ensure that small and disadvantaged businesses have the maximum opportunity to participate in Broward County contracts to monitor vendor performance to ensure accountability to provide Procurement Code guidance and training to client agencies to keep abreast of current developments in the field of purchasing, market conditions, and new products, and to formulate and recommend purchasing policy and procedures
These objectives allow professional procurement specialists to responsibly ensure that Broward County receives the best value for each tax dollar spent.
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Organizational Structure The Purchasing Division functions are implemented within three general interrelated Lines of Business: Executive Management, Administrative Services and Operations. These Lines of Business are put into action through seven business units. Executive Management Administration Section
Administrative Services
Information Technology
Administrative/ Operational Support
Operations
Resource Center
Goods/Services Construction Central Warehouse Logisicstics
Professional Services
Centralized Services
Executive Management manages Broward County’s procurement practices in the areas of commodities, general services, construction, and professional services; management of logistics, central warehouse, and disposition of surplus; strategic planning and managing, utilizing resources, business intelligence, and performance metrics; maintaining internal quality assurance; dispute resolution; and recommending policies and procedures. The Executive Management line of business consists of the Administration business unit. Administrative Services provides administrative, fiscal and human resource guidance, budget management, information technology development, training, auditing of purchasing card (P-Card) and delegated purchases, Program administration, quality control of agenda reports, special projects and educational and outreach programs to facilitate efficient and effective achievement of the Operations and Executive Management business units. The Administrative Services line of business is executed through the Information Technology, Administrative/Operational Support and Resource Center business units. Operations encompass the mandated core business of the Division – procurement and disposition of surplus property. The Operations line of business is executed through the Goods/Services, Central Warehouse/Logistics and Construction, Professional Services, and Centralized Service Centers business units. These units procure goods, including operational supplies and capital equipment, construction services, and general and professional services. Additionally, the Goods/Services and Central Warehouse/Logistics business unit disposes of surplus property and serves as the logistics center during emergency events in accordance with federal and state mandates.
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Section Introductions Goods/ Services, Construction and Central Warehouse/Logistics Unit The Goods/Services, Construction and Central Warehouse/Logistics Unit is responsible for the procurements required by the various Broward County agencies to provide their respective municipal services, including general goods and services, operational supplies, maintenance services, capital equipment, construction and construction related professional services governed by applicable federal, state, and local laws. This unit also manages the disposition of surplus property through public auctions (e.g. on-line, onsite, and third party site auctions), competitive sealed bids and donations, all in accordance with Florida State Statute; and, serves as the logistics center in emergency events for the County. Centralized Services Unit The Centralized Services Unit is responsible for procurements for the Aviation, Port Everglades, Public Works and the Transportation Departments. Purchasing staff for the Aviation and Port Everglades are located onsite at the respective locations to support these enterprise agencies operating as revenue generating businesses. Some specialized procurements for these agencies include construction and related professional services to accommodate the business growth and demands of the traveling public. Procurement services provided for these agencies include, but are not limited to the following projects: the South Runway Expansion, redevelopment and improvement of airport terminals and concourse gates, new airport maintenance facilities, and parking garage upgrades; improvements to Port Terminals, landside infrastructure and berths; construction of wastewater treatment plant injection wells, engineering services for reclaimed water plant expansion; transit shelters, benches, solar lighting and trash receptacles. Professional Services Unit The Professional Services Unit is responsible for processing and coordinating Committee-based, qualitative, best value procurements, such as the Request for Letters of Interest (RLI) and Request for Proposals (RFP). Neither of these procurement processes requires pricing to be the sole determining factor. Other factors, such as experience, qualifications, past performance, and proposed solutions may be considered in selecting the most qualified firm. The selection will result in a negotiated agreement approved and executed either by the Board of County Commissioners or the Director of Purchasing, depending on the dollar level of the services procured. Administrative/Operational Support Services Unit The Administrative/Operational Support Unit handles a wide range of activities for the Purchasing Division including budget management, P-Card Program administration, customer assistance for both internal and external customers, including website postings of solicitation results, live-webcast of bid openings, master agreement renewal program, contract files and records retention management, document security and chain of control, forms management, legal advertising, public records requests, front desk reception, mail delivery, purchasing of supplies, human resources coordination and payroll. In addition, the Administrative Section handles other specialized tasks in support of procurement related projects, including vendor protests and appeal hearings, Pre-Board Meeting Inquiries (PBMIs) and Commission Response System inquiries (CRS).
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Information Technology Unit The Information Technology Unit (ITU) provides the operational units the functionality they need to perform effectively. It provides support through automated informational systems, data collection and reports to assess performance output and to identify areas for improvement. The informational systems allow for entry of requisitions, issuance of purchase orders and master agreements, contract administration, monitoring of contractors’ performance and payments to subcontractors, tracking of procurement cycle timelines and distribution of assignments. ITU works collaboratively with the business units to support the newly implemented e-procurement system which allows for vendor registration, and issuance of online solicitations and electronic submittals by vendors. Resource Center Unit The Resource Center Unit performs a wide range of activities, including policy research and analysis, benchmarking; data collection; tracking and reporting; employee development training; organizational analyses; review of vendor performance evaluations; delegated purchasing audits; quality control, processing and scheduling agenda reports, non-competitive procurement review (e.g. sole source); and other specialized tasks in support of procurement-related special projects and programs.
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Statutory Authority The Purchasing Division is governed by Broward County’s Procurement Code (Code). The Code provides a unified purchasing system for the County and designates centralized responsibility for processing of delegated purchases and disposal of surplus property. The Code provides for increased economy in procurement activities and enables the County to maximize the purchasing value of public funds by fostering effective broad based competition within the free enterprise system, while ensuring fair and equitable treatment of all vendors who deal with Broward County procurement. The Code provides safeguards for the maintenance of a procurement system of quality and provides for increased public confidence in the procedures followed by public procurement. In addition to the Code, Broward County is governed by the laws and codes as outlined below, including Federal and State laws. Source Federal Regulations
State of Florida Statutes
Regulation
Integrity of Public Contracting, Section 287.132 Consultants’ Competitive Negotiations Act (CCNA), Section 287.055 Public Meetings Section 286.011 Scrutinized Companies Certification, Section 287.135 Employment Eligibility Verification Program Contractor Certification, Governor Scott’s Executive Order 11-02, issued January 4, 2011 Prompt Payment Law, Section 218.70 Public Records Law, Chapter 119 Drug-free Work Place, Section 287.087 Uniform Commercial Code, Chapter 672 Construction Bonding Requirements, Section 255.05 Public Construction Competitive Bidding, Section 255.20 Code of Ethics, Chapter 112 County authorized to sell real and personal property and to lease real property, Section 125.35 Sale of county property to United States, or State, Section 125.38 Tangible Personal Property Owned by Local Governments, Chapter 274 Surplus property, Section 274.05 Alternate procedures, Section 274.06 Energy Efficient and Sustainable Buildings, Section 255.2575 Lost or Abandoned Property, Chapter 705 Non Collusion Statement, Section 112.3135(1)(c) Code of Conduct, Ordinance No. 2007-02
Broward County Employee Code of Ethics Act, Ordinance No. 2010-64 Cone of Silence, Ordinance No. 2011-06 Drug Free Workplace, Ordinance No. 92-8 County Business Opportunity Act, Ordinance No. 2012-13 Living Wage Ordinance, Ordinance No. 2008-45 Local Preference, Ordinance No. 2004-29
Broward County Codes and Ordinances
Disadvantaged Business Enterprises, 26 CFR Part 49 Federal Transit Administration, Title 49, United States Code, Chapter 53 Federal Aviation Administration, Title 49, United States Code, Chapter 106
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Source
Regulation
Domestic Partnership, Ordinance No. 1999-18
Prompt Pay, Ordinance No. 89-49 Procurement Code, Chapter 21 Procurement Code, Section 21.113, Disposal of Surplus Personal Property
Broward County Workforce Investment Program, Resolution 2014-235
Purchasing Division Accomplishments During the past year, the Purchasing Division continued its commitment to all stakeholders involved in the procurement process. The Division’s constant focus on professionalism resulted in a number of recognitions, awards, accreditations and certifications. Recognitions, Awards, Accreditations, and Certifications State and National professional organizations have recognized the Purchasing Division for its efforts on best practices, reflecting the Division’s level of excellence. The awards included:
Awarded 2014 Best Practice Award in the category of “Innovation in the Purchasing Process” for the Procurement Milestones application from the Florida Association of Public Purchasing Officers (FAPPO) for the second year in a row.
Awarded Excellence in Public Procurement Award for 2014 from FAPPO for the 18th year in a row. The award recognizes the Purchasing Division for organizational excellence in procurement by measuring its innovation, professionalism, e-procurement, productivity and leadership.
Maintained active membership in the National Institute of Governmental Purchasing (NIGP), FAPPO, Southeast Florida Chapter of NIGP Inc. and Southeast Florida Governmental Purchasing Cooperative Group.
Most of our purchasing agents and managers hold national certification as Certified Professional Public Buyers (CPPB) or Officers (CPPO) through the Universal Public Procurement Certification Council. In FY 2014, ten additional purchasing agents attained their CPPB or CPPO professional certification resulting in 87% certification for the Purchasing Division. Additionally, five purchasing agents hold state certifications as Florida Certified Contract Negotiators (FCCN) and four hold State Purchasing Manager certificates.
Achieved the National Institute of Governmental Purchasing Outstanding Agency Accreditation Achievement (OA4) Award. This three-year reaccreditation recognizes the Division for leadership in the public procurement profession through the implementation of best practices.
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The Purchasing Division is the proud recipient of the 2014 Achievements of Excellence (AEP) Award from the National Procurement Institute, Inc. (NPI). The AEP is a prestigious award earned by organizations that demonstrate excellence based on standardized criteria designed to measure innovation, professionalism, productivity, and leadership attributes of the procurement organization.
Organizational Improvements The Purchasing Division strives for continual organizational improvements to support strategic planning and goal-setting, strengthen accountability, enhance decision-making, and improve customer service making the most effective use of its resources.
The Purchasing Division continues to enrich its ContractsCentral application with new features to further enhance transparency and keep its clients better informed as to the status of procurement requests and performance tracking, such as adding functionalities for Workforce Investment Act Vendor Performance Evaluations, making evaluation summary and detail information available to vendors via the Internet, and sending notification email to prime vendors after vendors’ evaluations are completed.
The Purchasing Division implemented an electronic bidding system, BidSync, which allows for vendor registration, solicitation notification and receipt of quotations, bids, or other types of solicitations over the Internet. The system is more efficient than previous manual processes, reducing the cost of bidding on County contracts, and reducing costly bidding errors by allowing vendors to submit their solicitation responses electronically. Additionally, this new system received the Go Green Seal of Sustainability as it will reduce paper used in the solicitation process.
Enhanced the Division’s records management system through our home built application, ContractsCentral, by implementing the use of bar codes to inventory, track and archive procurement files in accordance with the State of Florida Administrative Code for Public Records.
Administration Created a Procurement Taskforce consisting of Department heads from multiple County Agencies to evaluate the County’s procurement processes.
Procurement Taskforce suggested improvements for the RFP procurement process and the quotation process (small dollar purchases) which were recommended to County Administration, Department and Division Directors in August 2014. Implementation of these recommendations is underway.
The use of P-Card transactions resulted in $418,919 in rebate revenue for the County, an increase of 1.6% from FY 2013.
Realized a 9% increase, from 42% to 51%, of contracts awarded to local, Broward County businesses in FY 2014.
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Awarded approximately 30% more contracts this fiscal year in comparison to last fiscal year.
The Purchasing Division presented multiple outreach sessions to local vendors on how to use BidSync. These sessions were hosted in an effort to ensure that vendors were aware of the new electronic bidding system in order to do business with the County.
Major contributor to the successful award of the Enterprise Resource Planning contract.
Professional Services Implemented the Request for Proposals (RFP) procurement as the preferred method for professional consultant contracts rather than the Request for Letters of Interest (RLI) method. As a result, the Purchasing Division reduced the time in the negotiation portion of the procurement from average of 210 days to 112 days per project. As a result of the expedited negotiation times for RFP procurements, in FY 2014 a total of 58 contracts were awarded compared to 37 contract awards in FY 2013 which yielded a 57% increase in productivity. Additionally, many contracts which had originally resulted from a RLI procurement, when replaced by a contract resulting from an RFP procurement resulted in significant cost savings. For example, three contracts for parking garage management operations and one contract for transportation of deceased persons which have been procured for the first time through the RFP procurement method saved the County $8,442,926 from the costs of expiring contracts which had resulted from the RLI procurement method five years ago. The fact that the RFP procurement method requires price information to be evaluated and numerically scored, as well as evaluating information regarding the vendors’ quality of service and experience, allows the County reliable information with which to complete negotiations efficiently and resulting in a successful outcome.
Negotiated cost savings of $21,975,019 over eighteen projects. More than 38% ($8,442,926) of this cost savings is derived from four projects representing replacement contracts in which the RFP procurement method replaced the previous RLI method. The RFP procurement method requires objectively scored prices as one of several evaluation criteria. The previous contracts were based on the RLI procurement method in which price was only a matter of consideration and not numerically scored as part of the evaluation process.
Goods/Services/Construction The successful launch of P-Card use for master agreements and certain fixed contracts has resulted in increased rebates, revenue and administrative efficiencies for the County.
Evaluating an initiative to implement a Community Benefits Program into the RFP projects as a means of providing economic development support to the impacted location of the project.
Evaluating the feasibility of implementing a Job Order Contract (JOC) for use on federally funded projects.
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Centralized Services Solicited and awarded a pilot program for leasing of vehicles for County-wide use for a five-year period. The contract will cover a portion of the required replacement vehicles to the existing fleet, and allow for the evaluation of a pilot leasing program that provides maintenance-free, more fuel-efficient vehicles for various County agencies. Purchased 130 propane powered vehicles for the Paratransit Transportation Services Program. Vehicles will be in use starting January 1, 2015 servicing the Broward County service area providing ADA Paratransit Services.
Continued to focus on ensuring that priorities for enabling projects are established and addressed in a timely manner to meet the objectives of the Aviation Department and in particular, the completion of the new South Runway and improved terminal facilities.
Assisted with the successful award of a contract for a Port project that will improve access for the public to the Convention Center.
Participated in the procurement process for the important upgrade of systems for dispatching and managing fixed and non-fixed bus routes that will benefit the traveling public in the near future.
Information Technology To reflect the responsibility structure of the organization, and to provide the ability for fast maintenance of an organizational chart in a changing environment, the Purchasing Division developed an innovative, home-built, electronic organizational chart tool, providing the ability to import data from a SharePoint list to automatically build or update the Purchasing Division’s Organizational Chart on the County’s websites. Advanced features include adding employees’ pictures, telephone numbers, email addresses, and ability to change the look by modifying the visual elements such as color themes, background and fonts. Accrued benefits are reduction in maintenance time, better communication with the using agencies, and clear delineation of relationships between the Purchasing Division’s staff members.
The Purchasing Division continues to improve its Procurement Milestones Application to further track progress and to keep the stakeholders fully informed as a procurement proceeds through its planned cycle, adding new features to identify procurement and non-procurement processing times, calculating the period of time over which a procurement is completed, breaking down the number of processing days a procurement is in Purchasing Division’s control or in an agency. A pie chart depicts the percentage of time a procurement is in Purchasing Division and the respective client agencies.
The Purchasing Division has enhanced its iContractsCentral, an application that allows prime vendors to report sub-vendors’ payment information on projects, and allows sub-vendors’ to verify payment information reported by the prime. The application had relied heavily on a vendor registration portal, Advantage Vendor-Self-Service (VSS), to authenticate the sub-vendors during the login process, which was decommissioned with the implementation of the electronic bidding system, saving the County an Page 13
estimated $28,000 annually. To eliminate the reliance on VSS and to further enhance efficiency, new security features were added for sub-vendors’ authentication, allowing vendors to reset their own password or request a password reset. New functionalities allow the application to automatically send monthly reminders to prime vendors and notifications to sub-vendors for payment confirmation. Resource Center The Purchasing Division provided the lead for the Procurement Improvement Taskforce to review current practices and suggest improvements. The Procurement Improvement Task Force operated with three sub-committees: RFP Improvement Sub-committee; Bid/Quote Improvement Sub-committee; and Information Technology Systems Sub-committee. Each dealt with the various procurement processes to suggest efficiencies. To date, the Procurement Improvement Taskforce completed a review of the Request for Proposals process and the Bid/Quote process with substantive suggestions for improvement. Recommendations of the RFP Improvement Sub-committee are: To expedite the completion of the Evaluation Matrix, the RFP solicitation template will contain fill-in and yes/no areas as well as response areas for concise answers to the Evaluation Criteria requirements. This is expected to save 5 – 10 calendar days. To expedite the gathering of references, the RFP solicitation template will contain a Reference Form and will require proposers to provide their completed references with the RFP submittal at the time of the opening deadline. This improvement is expected to save another 5 – 10 calendar days. RFP Improvement Committee research revealed that more than half of the time expended in the RFP or RLI process is in the negotiations phase. The RFP Improvement Taskforce is recommending a benchmark of 45 days be established for negotiations. This improvement will eliminate 85 days in the RFP or RLI process. Recommendations of the Bid/Quote Improvement Sub-committee are: Increase P-Card limit to $5,000. Increase the Delegated Purchasing limit to $7,500. As a result, Certified Agency Buyers (CAB) are given increased authority, allowing the centralized Purchasing Agents to devote their skills to more technical procurements. Create an on-line tutorial and certification for staff other than CABs, field workers and their approvers to obtain quotations to speed the procurement of small purchases for client agencies. This will allow field staff to obtain quotations for materials unfamiliar to CABs, thus, providing for speedier procurements. Provide standardized templates to CABs for required forms in order to create uniformity as well as speed up the award process. Create templates for commonly required insurance in order to eliminate the need to go to Risk Management for standard requirements and to seek approval from Risk Management if the returned insurance form meets those requirements.
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Conducted comprehensive training program for all newly hired Purchasing staff on Broward County’s processes, policies, and ordinances to reduce their learning curve so that they may contribute to the success of the Division quickly.
Revised CAB Audit procedures. The audit methodology was revised from reviewing a random selection of delegated purchase orders to a review of solicitations above the single quote limit for alternating agencies. This specifically targets all solicitations above the single quote threshold for all agencies thereby ensuring comprehensive review of competitive solicitations conducted by all agencies. Additionally implemented a final auditor recommendation and manager review process to determine audit recommendations based on the overall audit rather than the single audit deviation failure process. This ensures audit findings are reasonable and follow-up actions appropriately address any corrective actions and learning needs of the delegated agency.
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Customer Service and Outreach Achieved an overall rating of 4.22, out of a possible maximum rating of 5, utilizing a strategy of collaboration with emphasis on accessibility, quality, and service. This improvement is attributed to the concerted efforts by the Purchasing Division to find cost savings, reduce processing times and improve communications with our client agencies. FY 2014 Annual Customer Satisfaction Survey Results by Section
Held pre-advertisement meetings for the benefit of potential contractors and subcontractors to provide information about future capital construction contracting opportunities with Broward County.
Conducted monthly workshops in conjunction with the Office of Economic and Small Business Development on “How to Do Business with Broward County”. The workshops afforded an interactive environment for purchasing agents and small business owners to share information.
Participated in professional purchasing associations that emphasize education and best practices for purchasing professionals as well as vendor outreach efforts and networking events. The most recent vendor outreach and education effort was the Southeast Chapter of National Institute of Governmental Purchasing Reverse Trade Show.
The Purchasing Division continues to provide customer service and outreach in support of the Living Wage Program by providing updated information through various channels of communication with client agencies, service contractors, other government and non-profit entities, service employee unions, the Living Wage Advisory Board and other interested parties. In FY 2014, program activities included: Page 16
training presentations and informational sessions to Broward County staff and vendors participation in client agency contractor start-up meetings for new Living Wage contracts assistance, guidance, research, and reports to the Living Wage Advisory Board updating living wage informational links on the Purchasing Division’s website and BC-Net to keep client agencies and the vendor community informed, and “help desk” services for Purchasing Agents, contract administrators, project managers and service contractors requiring clarification or guidance on Living Wage contract compliance issues.
Conducted 54 training classes, for approximately 568 employees, on delegated purchasing, Request for Proposals, Advantage System Procurement, ContractsCentral and Purchasing Division policies and procedures. Additionally, 209 employees completed on-line training on P-Card procurement.
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Electronic Bidding This year the Purchasing Division embarked on a new initiative to implement an electronic bidding system. Electronic bidding (e-bidding) is the term used to describe electronic methods of providing solicitation notification and receiving selected quotations, bids, or other types of solicitations over the Internet. The Division previously utilized a partially automated solution for preparing, posting and receiving solicitations. The old system was labor intensive and costly for the County and its vendors. An e-bidding system is more efficient, reduces the cost of bidding on County contracts, and prevents costly bidding errors. The Purchasing Division implemented BidSync’s electronic bidding system. The functionality provided by the system improves processing time and efficiency for the Division. The system allows Purchasing Agents to post solicitations and addenda faster, respond to vendor questions in one location, tabulate quotations and bid responses automatically, and quickly post results for vendors (and using agencies). The system also provides more information on each solicitation, allowing agents to track the number of vendors viewing or the number of submittals received for a solicitation. This not only helps the Division, but also benefits the vendors. Vendors are able to complete forms online and submit responses electronically. Vendors no longer have to hand carry their bids to the Purchasing Division office to get in their bid by 2:00 p.m.! In addition to allowing electronic responses, the system also includes additional functionality for vendors on notifications, addenda acknowledgement, and tracking of solicitations. To further support transparency, the BidSync system will incorporate Certified Agency Buyers (CABs), allowing advertisement of small dollar purchases on the County’s website, furthering competition on small dollar purchases and increasing participation by Small Business Enterprises. The Purchasing Division will be creating a pilot program in Spring 2015 to assess CABs using the BidSync system to issue small dollar purchases. As with any new system and procedures, there are obstacles to overcome and learning curves to master, but with continued support and focus on the future, we are looking forward to continued success in implementing this system and providing “Our Best. Nothing Less”.
Electronic Bidding System Received the Go Green Project Seal of Sustainability! This project received the County’s “Go Green Project Seal of Sustainability” as using the system will reduce paper use, and shipping and transportation costs associated with submitting solicitation responses, further demonstrating the County’s commitment to sustainable business practices.
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Financial Statistics/Procurement Activities for Fiscal Year 2014 For the purposes of this report, the terms award and purchases are used interchangeably and refer to any procurement document issued during the fiscal year (hereinafter referred to as FY). Procurement documents represent a commitment by Broward County to procure goods and services. The table below provides a detailed explanation of the various types of procurement documents. With the exception of PCards, delivery orders, delegated purchases, exempt purchases and central purchases result in procurement documents being issued. Document Types P-Cards Delivery Orders Delegated Purchases Exempt Purchases Central Purchases1
Procurement Document Description All P-card purchases made through Broward County’s program Purchase Orders from master agreement contracts issued by client agencies Purchases made by authorized Certified Agency Buyers up to $3,500 All procurements exempt from the Procurement Code Purchases made by the Purchasing Division greater than $3,500
Master Agreement Awards Strategic sourcing is a practice for continuously improving and re-evaluating the purchasing activity. It analyzes and assesses the components of a procurement to determine the best method of soliciting for the required supply or service. The use of Master Agreements (open-end) contracts is one of the methods utilized by the Purchasing Division to implement strategic sourcing and take advantage of economies of scale. It is critical for all intended users to participate when data is being gathered to develop the scope of services and determine the estimated quantities. The Purchasing Division emphasizes the value of Master Agreements because they offer an efficient and economical method for purchasing frequently requested items. Once awarded, the client agencies are able to issue purchase orders (Delivery Orders) to the awarded vendor(s). Master Agreements are usually issued with an initial term of one year and a stated number of optional renewal periods, usually two, one-year periods, subject to vendor acceptance, and determination that renewal is in the best interest of the County. During FY 2014, three hundred sixty-seven (367) replacement or new Master Agreements were awarded by either the Board of County Commissioners or the Director of Purchasing for a potential initial term spend on these contracts of $490,174,335. Figure No. 1a and 1b shows the quantity and initial term value of the Master Agreements awarded during that period.
1
Open-end, multi-year contract awards are not included.
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In addition to Master Agreements issued during FY 2014, there are those Master Agreements issued in prior fiscal years that remain active, due to the multi-year optional renewal term(s) being exercised. As of September 30, 2014, there were 839 active Master Agreements available for use by client agencies, providing for the purchase of commodities, construction, general and professional services.
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A total of 69,6942 purchases were processed in FY 2014, for a total award amount of $607,948,9363. The Board of County Commissioners approved $450,940,450 in purchases and the Director of Purchasing approved $130,826,049 in purchases. Included in the total are purchases processed with P-Cards which totaled $26,182,437 for FY 2014, of which Broward County received rebate revenue of $418,9194. Figures 2a and 2b summarize the methods utilized for the Purchasing Division’s activity for FY 2014. The number of DO’s issued from Master Agreements in FY 2014, as shown in Figure 2a is 9,282, and the actual expenditures (total dollars issued on DO’s) is $338,679,434, as shown in Figure 2b (see below).
2 3
This figure does not include Master Agreement awards. This amount is actual expenditures based on contract awards; it does not include Master Agreements potential award dollars, expenditures and transfers to other governmental
agencies made through direct vouchers which totaled an additional $1,006,124,459 and subsequent change orders, amendments or cancellations.
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The basis points for the FY 2014 P-Card rebate are 1.6% (160 basis points) and rebate figure includes both P-Cards and e-payables. The rebate amount for this Annual Report is for
the period of October 1, 2013 through September 30, 2014. The rebate amount issued to the County by the Financial Institution is based on the calendar year, January 1, 2014 through December 1, 2014. Therefore, the rebate figure for the respective periods may differ.
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Awards by Agency The following chart delineates the awards categorized by client agencies during FY 2014. Figure 3a Contract Awards by Agency
Agency Public Works Department Aviation Department Department of Transportation Finance & Administrative Services Department Port Everglades Department Boards & Other Agencies Libraries, Parks and Cultural County Administration Human Services Environmental Protection & Growth Management All Other Agencies All P-Card Purchases
Count 3,644 987 1,749 851 498 246 1,082 269 326 685 567 58,790
Total
69,694
$26,182,437
$ in Millions $204.9 $110.4 $105.5 $46.0 $45.7 $20.4 $20.0 $13.2 $8.4 $4.8 $2.5 $26.2
% 33.7% 18.1% 17.3% 7.6% 7.5% 3.4% 3.3% 2.2% 1.4% 0.8% 0.4% 4.3%
$607,948,936
$607.9
100.0%
Award $ $204,867,741 $110,378,591 $105,495,753 $46,034,194 $45,731,673 $20,402,273 $20,046,804 $13,160,963 $8,363,690 $4,818,220 $2,466,599
Figure 3b Contract Awards by Agency
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Vendor Participation The following chart delineates the awards and expenditures with the top eleven vendors during FY 2014. Figure 4a Contract Awards and Expenditures by Vendor Vendor Name Ric-Man Construction Florida Inc Moss & Associates, LLC Broward County Sheriff's Office Arthur J Gallagher Risk Management Services AECOM Technical Services Inc Bergeron Land Development Inc Kirlin Florida, LLC North American Bus Industries (NABI) New Flyer Industries Limited Munilla Construction Management, LLC Sunshine Cleaning Systems Inc All Other Vendor Awards
Count 2 1 48 34 1 1 2 134 1 1 68 69,401
Award $ $25,449,740 $24,062,008 $23,689,766 $22,709,981 $21,016,386 $15,781,373 $14,845,472 $14,497,769 $14,121,799 $13,576,195 $13,496,049 $404,702,398
$ in Millions $25.4 $24.1 $23.7 $22.7 $21.0 $15.8 $14.8 $14.5 $14.1 $13.6 $13.5 $404.7
% 4.2% 4.0% 3.9% 3.7% 3.5% 2.6% 2.4% 2.4% 2.3% 2.2% 2.2% 66.6%
Total
69,694
$607,948,936
$607.9
100.0%
Figure 4b Contracts Awards and Expenditures by Vendor
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Contracts Awarded to Vendors by State, County and City Broward County awarded 75.7% of its contract dollars to vendors located within the State of Florida and 50.7% to local, Broward County businesses in FY 2014. Figures 5a and 5b below represent the dollars spent by Broward County within the State of Florida and other jurisdictions across the United States and Canada. Figures 5c and 5d represent the dollars spent within Broward County in comparison with other Florida counties. Figures 5e and 5f represent the dollars spent in various cities within Broward County. Figure 5a Contracts Awarded to Vendors by State*
Florida Alabama Manitoba (Canada) California Ohio New York Illinois All Other States All P-Card Purchases
Count 8,827 158 42 215 67 45 67 1,483 58,790
Award $ $460,145,161 $15,614,405 $14,335,532 $9,663,293 $9,053,901 $8,237,892 $8,195,982 $56,520,333 $26,182,437
$ in Millions $460.1 $15.6 $14.3 $9.7 $9.1 $8.2 $8.2 $56.5 $26.2
% 75.7% 2.5% 2.4% 1.6% 1.5% 1.4% 1.3% 9.3% 4.3%
Total**
69,694
$607,948,936
$607.9
100.0%
State
Figure 5b Contracts Awarded to Vendors by State
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Figure 5c Contracts Awarded to Vendors by County* Florida Counties Broward Outside Florida Miami-Dade Other Florida Counties Palm Beach All P-Card Purchases Total**
58,790
Award $ $308,303,324 $120,912,685 $73,767,992 $41,698,105 $37,084,393 $26,182,437
$ in Millions $308.3 $120.9 $73.8 $41.7 $37.1 $26.2
% 50.7% 19.9% 12.1% 6.9% 6.1% 4.3%
69,694
$607,948,936
$607.9
100.0%
Count 6,327 2,054 1,231 801 491
Figure 5d Contracts Awarded to Vendors by County
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Figure 5e Contracts Awarded to Vendors by City
Broward County City Fort Lauderdale Deerfield Beach Hollywood Pompano Beach Oakland Park Dania Beach Davie Other Broward County Cities Outside Broward County All P-Card Purchases
Count
1,559 4,577 58,790
Total
69,694
2,451 258 575 545 280 94 565
$26,182,437
$ in Millions $155.5 $31.6 $23.2 $21.2 $20.9 $8.6 $8.5 $38.7 $273.5 $26.2
% 25.6% 5.2% 3.8% 3.5% 3.4% 1.4% 1.4% 6.4% 45.0% 4.3%
$607,948,936
$607.9
100.0%
Award $ $155,494,522 $31,588,287 $23,208,084 $21,214,960 $20,905,889 $8,644,647 $8,538,412 $38,708,523 $273,463,175
Figure 5f Contracts Awarded to Vendors by City
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Statistical Comparison with Previous Years Contract Awards Figures 6a through 6c reflect the comparative data for contract awards since FY 2012. In FY 2012 major Broward County capital outlay projects (i.e. construction of a new courthouse, and airport expansion) contributed to the higher award amounts then succeeding years. Although the County has continued at the same pace to invest in capital projects in FY 2014, some of the projects are not comparable in size and in dollars to past projects, such as the airport runway and expansion. Figure 6a Comparison of Contract Award Dollars by Method FY 2012 FY 2013 Purchasing Contract Award Dollars Delivery Orders* Delegated Purchases Exempt Purchases Central Purchases P-Cards
Total
FY 2014
$312,493,792 $2,207,865 $5,647,700 $804,881,155 $20,562,861
$275,922,051 $1,345,892 $7,595,563 $354,634,213 $24,424,982
$338,679,434 $932,093 $9,280,156 $232,874,815 $26,182,437
$1,145,793,373
$663,922,700
$607,948,936
Figure 6b Comparison by Approval Authority FY 2012
Authority Level Board approved Director of Purchasing approved P-Cards
FY 2013
FY 2014
$1,003,965,724 $121,264,788 $20,562,861
$511,844,575 $127,653,144 $24,424,982
$450,940,450 $130,826,049 $26,182,437
Total
$1,145,793,373
$663,922,700
$607,948,936
Figure 6c Comparison of Contract Award Dollars Over Time
*Delivery Orders come from Master Agreements, refer to page 20
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Vendor Awards by Region Awarding contracts to vendors within Broward County and the State of Florida has remained a focus for the Purchasing Division to support economic vitality within our region. Of the total procurement dollars expended in FY 2014, $460,145,161 or 76% was awarded to vendors within the State of Florida and $308,303,324 or 51% of the total procurement awards went to local Broward County vendors. Figure 7a Comparison of Regional Contract Award Dollars Vendor Awards Expenditure within Florida Expenditure within Broward County
FY 2012
FY 2013
FY 2014
$1,033,949,789 $667,757,515
$518,630,176 $275,150,233
$460,145,161 $308,303,324
Figure 7b Comparison of Regional Contract Award Dollars
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Value Added Cost Savings The Purchasing Division increased cost savings in FY 2014 over FY 2013. This was accomplished through various value added procurement strategies and staff initiatives such as strategic sourcing, cooperative purchasing, request for voluntary price reductions, P-Card rebates, skilled negotiations and due diligence in researching the open market for the best product at the best value. The chart below indicates an increase in FY 2014 cost savings activities through the continued implementation of those strategies indicated above. Figure 8a Comparison of Value Added Cost Savings FY 2012 FY 2013 Cost Savings Commodities Construction Sub-Total Negotiations Centralized Centers (Aviation/Port Everglades) P-Card Rebates
$131,412 $4,093,386 $4,224,798 $13,288,684
Total
FY 2014
$1,765,448*
$5,200,608*
$1,765,448 $5,398,296
$5,200,608 $21,975,019
$2,516,029 $329,006
$101,324 $390,800
$10,332 $400,000
$20,358,517
$7,655,868
$27,585,959
*The categories of commodities and construction were combined in October 1, 2012 due to the re-organization.
Figure 8b Comparison of Value Added Cost Savings
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Procurement Operations Procurement Processing Times Figure 9 below reflects the total processing time for projects categorized by awards within the delegated authority of the Director of Purchasing and awards above the authority of the Director of Purchasing. It should be noted that higher dollar value awards made by the Board often times require more technical evaluation, lengthy negotiations and/or protests, delaying processing times. Figure 9a Comparison of Procurement Processing Times
Total Days Purchasing Director Award Authority Board of County Commissioners Award Authority
FY 2012
FY 2013
Average # of Days to Awards Process
Total Days
Average # of Days to Awards Process
FY 2014 Total Days
# of Awards
Average Days to Process
61,873
913
67.77
53,585
956
56.05
58,294
1,100
52.99
25,086
123
203.95
23,207
140
165.76
46,516
234
198.79
Figure 9b Comparison of Procurement Processing Times
In FY 2015 new performance measures will be introduced which will better reflect the output and efficiencies of the Purchasing Division. It will represent a more detailed analysis of the types of procurements made by the Purchasing Division which will enable the Purchasing Division to focus on specific process improvements.
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Purchasing Cards (P-Cards)
The P-Card Program benefits our community vendors as well as our client agencies with an efficient method of purchasing and paying for goods and services with a VISA credit card. Payments from PCard transactions are made through a contracted financial institution. This streamlined process reduces the use of purchase orders as well as the transaction processing time to pay specified vendors for their goods and services. A secondary benefit of this program is the County receives a 1.6% rebate on all County P-Card purchases which resulted in a rebate of $418,919 for FY 2014. The charts below provide details of the P-Card spend by vendor, state and county, as well as the top ten vendors that the County spends the majority of its funds through the P-Card. On a quarterly basis, the Purchasing Division audits County agency P-Card Holder transactions for proper use in accordance with the promulgated procedures. In addition, monthly expenditure reports are generated and forwarded to all Department and Office Directors for their review, concerns and feedback. Figure 10a P-Cards Purchases by Vendor Sprint Wireless Office Depot #1165 WW Grainger Innovative Software Solution Inc EMC Office Supplies UFirst UniFirst Corporation DMI Dell K-12/Govt Amazon Mktplace PMTS PCI Patterson Veterinary The Tools Man Industrial Supply All Other Vendors
Award $ $1,047,425 $583,504 $443,494 $360,295 $330,183 $185,295 $168,708 $160,063 $143,679 $143,274 $17,385,528
$ in Millions $1.0 $0.6 $0.4 $0.4 $0.3 $0.2 $0.2 $0.2 $0.1 $0.1 $17.4
% 5.0% 2.8% 2.0% 1.7% 1.6% 0.9% 0.8% 0.8% 0.7% 0.7% 83.0%
Total
$20,951,448
$21.0
100%
Vendor Name
Figure 10b P-Cards Purchases by Vendor
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Figure 10c P-Cards Purchases by State State Florida Kansas California Texas Pennsylvania Illinois Massachusetts Georgia Virginia All Other States Total*
Award $ 11,598,061.06 1,100,962.08 931,320.81 772,226.87 655,705.45 562,568.90 548,685.73 520,976.84 401,414.74 $3,859,526
$ in Millions $11.6 $1.1 $0.9 $0.8 $0.7 $0.6 $0.5 $0.5 $0.4 $3.9
% 55.4% 5.3% 4.4% 3.7% 3.1% 2.7% 2.6% 2.5% 1.9% 18.4%
$20,951,448
$21.0
100%
*Dollars may not total exactly, due to rounding.
Figure 10d P-Cards Purchases by State
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Figure 10e P-Cards Purchases by County Broward County City Broward County Other Florida Counties Total
Award $ $8,857,603 $2,740,458
$ in Millions $8.9 $2.7
% 76.7% 23.3%
$11,598,061
$11.6
100%
Figure 10f P-Cards Purchases by County
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Delegated Purchasing Authority Audit Program The Procurement Code allows the Director of Purchasing to delegate various departments the authority to directly purchase items or classes of items, if the Director of Purchasing deems it more advantageous to the County for such designated items to be purchased by an agency rather than by the Central Purchasing Division. There are two major delegated purchasing programs: the Certified Agency Buyer (CAB) program and the Purchasing Card (P-Card) Program. The Purchasing Division conducts audits of delegated purchases in order to ensure that delegated agencies conduct purchasing in accordance with all applicable rules, regulations and codes. The audit program also allows the Purchasing Division to continuously evaluate how to improve and expand delegated authorities. In FY 2014, the Purchasing Division revised CAB Audit procedures. Audit methodology has been revised from random selection and review of solicitations above and below the single quote limit for alternating agencies to specifically target all solicitations above the single quote threshold for all agencies, thereby ensuring comprehensive review of all delegated competitive solicitations conducted by all agencies. A final auditor recommendation and manager review process was implemented to determine audit recommendations based on the overall audit rather than the single audit deviation failure process. This ensures audit findings are reasonable and follow-up actions appropriately addresses any corrective actions and learning needs of the delegated agency. The P-Card Auditor reviews random quarterly P-Card transactions. The P-Card Audit Program ensures cardholder and approver compliance with policy and identifies violations, such as splitting purchases, using the P-Card for personal use or not making the appropriate purchasing decision from an existing Master Agreement. Violations were identified during these audits and P-Cards were cancelled where appropriate. P-Cards previously cancelled during FY 2014 were reinstated as appropriate. Quarterly reports are provided to the County Auditor. Organizational Development Program The purchase of goods and services is a collaborative process between the initiating client agency and the Purchasing Division. To support this collaboration, the Division provides specialized training and outreach to ensure consistency in procurement activities. The Purchasing Division’s training program is committed to tailoring learning to meet the client agency needs and focused on building a competent, consistent and responsive purchasing staff. Educating County staff, increases knowledge of procurement processes, enhances productivity and quality of work, improves individual and organizational performance, facilitates the delivery of goods and services into the hands of employees as efficiently as possible, communicates purchasing policy requirements to Broward County agencies, and instructs outside agencies (e.g. small businesses) “How to Do Business with Broward County”. In FY 2014, the Purchasing Division conducted 54 instructor-led classes and trained approximately 568 Broward County employees. Centralized, instructor-led procurement training is delivered by purchasing experts. To improve efficiency, the Purchasing Division replaced instructor-led P-Card training with an Page 34
online tutorial. In FY 2014, 209 employees completed the P-Card Tutorial to meet the mandatory training requirement for participation in the P-Card program. In FY 2014, the Purchasing Division conducted ten Advantage Procurement I and II classes and trained approximately 75 Broward County employees. Advantage Procurement I and II classes are required for designated CABs and approvers performing delegated purchasing within client agencies. Designated CABs and approvers must additionally complete CAB certification training. In FY 2014, 63 employees received CAB certification training. The Purchasing Division continues to invest in the professional development of its personnel. In FY 2014, the Division conducted a comprehensive training program for all newly hired Purchasing staff on Broward County’s processes, policies, and ordinances to reduce their learning curve so that they may contribute to the success of the Division quickly. Additionally, Purchasing Division staff continues to take training classes sponsored by the National Institute of Governmental Purchasing (NIGP) to further their professionalism. The NIGP is a nonprofit educational and technical organization of governmental buying agencies across the United States. As a result of staff participation in NIGP sponsored training, an additional ten purchasing staff achieved Certified Professional Public Buyer (CPPB) or Certified Public Procurement Officer (CPPO) designation during FY 2014.
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Central Warehouse Operations Surplus Property Disposal The Purchasing Division’s Central Warehouse serves as the centralized processing center for sale and disposal of all Broward County surplus property. The centralized processing of surplus provides accurate disposal records for all property while also ensuring compliance with Florida Statutes relating to the disposal of surplus. The Central Warehouse also includes the management of Broward County’s donation program, making property available to local non-profit organizations as well as other governmental entities. Computers donated to local non-profit organizations are utilized to provide education and career opportunities to Broward County residents. The Central Warehouse Operations coordinated and processed $464,907 in surplus property sales in FY 2014. Figure 11 Surplus Sales Dollars by Fiscal Year
Emergency Preparedness Operations Much of Broward County’s emergency logistics operations are coordinated through the Purchasing Division’s Central Warehouse. During hurricane activation, the Purchasing Division is responsible for preparing and operating the County’s emergency supply County Staging Areas (CSA). Federal Emergency Management Agency (FEMA) supplies are received and distributed to stock multiple Points of Distribution located throughout the County for distribution to the public. In addition, the Purchasing Division maintains the County’s hurricane supply locker and Emergency Distribution Center warehouse operation. The Central Warehouse Operations provides logistical support to the Human Services Department for the storage and distribution of supplies and equipment needed to activate the County’s Special Needs Shelters. Page 36
Social Responsibility The Purchasing Division supports Broward County’s Vision for Unlimited Economic Opportunities through several procurement program initiatives designed to stimulate the growth of local small business and advance employment opportunities and equitable wage rates. In FY 2014, the Purchasing Division continued to actively participate in outreach programs with the Office of Economic and Small Business Development’s 2014 Business Development Workshop Series for local businesses and provide a monthly report to the Small Business Advisory Board on matters relevant to the Board’s mandate. In addition, procurement programs include strategies to unbundle large contracts, reducing bonds, securing state and federal funding sources to stimulate the advancement of local projects in support of economic growth, while improving services to the citizens of Broward County. Certified Vendor Participation Program Certified businesses fall into one of the following participation programs: Small Business Enterprises, County Business Enterprises or Disadvantaged Business Enterprises. A total of $43,953,795 was awarded to prime contractors that are certified businesses. This amount represents 7% of total awards of $602,315,488. Figure 12 Awards to Certified Prime Vendors5
Living Wage Program The Living Wage Ordinance was enacted by the Board of County Commissioners on October 8, 2002 and fully implemented on October 1, 2003 to promote the creation of full-time, permanent jobs that allow Broward County citizens working in the service industry to support themselves and their families with
5
Includes vendors certified prior to the 2012 recertification process.
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dignity while also benefitting the local economy. The Ordinance seeks to address the high costs of employee turnover that negatively impacts Broward County taxpayers and the services provided to its residents. As of September 30, 2014, a total of 86 Living Wage applicable contracts were open and active. Services covered under the Living Wage Ordinance including, but not limited to: routine maintenance services, janitorial services, clerical office work (temporary personnel services), passenger transportation and automobile parking services, and landscaping, lawn, and agricultural services. In FY 2014, the Purchasing Division Living Wage Program activity and reports focused on the following topics and matters of interest including: new contract awards, fiscal impacts, administrative efficiencies, and customer service and agency training. New Contract Awards — In FY 2014, 29 new Living Wage open-end service contracts were awarded with a total estimated contract value of $153,531,780. Fiscal Impact — Of the 29 new Living Wage contracts awarded in FY 2014, no fiscal impacts to the County were determined attributable to Living Wage requirements based upon the bid/proposal submittal data provided by the awarded vendors. Exemptions from Reporting — The Living Wage Ordinance allows service contractors to obtain an exemption from the requirement to submit payroll reporting to the using agency’s Contract Administrator every six months during the term of the contract, if it demonstrates to the satisfaction of the Director of Purchasing that they have consistently paid their employees the Living Wage rate for at least one year prior to entering into the service contract or wages subject to a collective bargaining agreement (e.g. union contract). In FY 2014, all seven vendors who applied for the exemption were approved. To date, 52 vendors have been granted exemptions from reporting by the Director of Purchasing.
Major Projects A few of the major projects processed by the Purchasing Division during FY 2014 were: Design-Build Mast-Arm Conversion Program - This project is to convert approximately twenty (20) existing span-wire and pole-supported traffic signals to structural mast-arm assemblies at Countyowned signalized intersections. Solar Street Charge Unit- Government Center West (GCW) Green Showcase – The Purchasing Division collaborated with the County’s Planning and Redevelopment Division and Facilities Management Division to acquire and install a solar powered Street Charging Station at the entrance of Government Center West (GCW) as part of the County’s green technology initiative. The Solar Street Charging Station is the first of its kind in Broward County and allows for the usage of clean, renewable energy technology, to allow Broward County residents and visitors to GCW to charge their mobile devices. The Solar Street Charging Unit was acquired through a unique program with Bros Global Technologies and Actavis PLC, which encourages public-private partnerships.
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Extension of Pembroke Road From SW 145 Avenue to Silver Shores Boulevard – This project provides for the 1.1 mile construction of new four-lane roads of Pembroke Road, in the Cities of Pembroke Pines and Miramar. The construction will also include drainage improvements, interconnector pipes and dry detention ponds, sidewalks, bike lanes, lighting, landscaping, irrigation and signalizations. The Florida Department of Transportation (FDOT) will provide grant funding in the amount of $8.4 million as part of the FDOT’s I-75 expansion project. Demolition of Hilton Hotel and Nautical Ventures – This project provided the demolition of the Hilton Hotel, Hilton Parking Garage and Nautical Ventures (f/k/a Dania Boat Sales), including hazardous material abatement and disposal, in order to safeguard the flight path for the new South Runway at the Fort Lauderdale-Hollywood International Airport. Automated Passport Control Kiosks – This project provided ten automated passport control kiosks to more expeditiously process arriving international travelers through United States Customs and Border Protection (CBP) in Terminal 4 at the Fort Lauderdale-Hollywood International Airport. The kiosks capture and validate travel documents and customs declaration data, capture an image of the passenger processing the entry passport, and print a receipt for the passenger to present to a CBP Officer. Since the ten kiosks went into service, they have helped reduce passport processing wait times by 40% and passenger missed connection flights by 62%. These kiosks have reduced international passenger processing times so significantly that the Aviation Department purchased ten additional kiosks in October 2014. Palm Garage Structural Repairs – This project includes replacement of existing expansion joints, routing and sealing of cracks in elevated slabs, expansion joint sealant replacement, concrete and curb repairs, wall crack repairs, joist bearing connection repairs, and installation of waterproof coatings in order to successfully extend the service life of the Palm Garage at the Fort Lauderdale-Hollywood International Airport. Extension of Terminal 1 Curbside Canopy and New Pedestrian Canopies – This project provides for the extension of the Terminal 1 canopy and new pedestrian canopies between Terminals 1, 2, 3 and 4 at the Fort Lauderdale-Hollywood International Airport. This includes the demolition of the existing umbrella canopy steel frames on the upper deck of the terminal area, the construction of a 150-foot extension of the upper deck curbside canopy on Terminal 1 and 1,210foot upper deck pedestrian canopies connecting Terminals 1, 2, 3 and 4, including drainage leaders and lighting. Page 39
Terminal 3 Paralleling Switchgear Replacement – This project provides for the replacement of the existing paralleling switchgear in Terminal 3 at the Fort Lauderdale-Hollywood International Airport, with equipment that is more efficient to operate and maintain. In the event of a power failure, the paralleling switchgear equipment transfers operational electric loads to existing generators as an alternate power source. Seaport and Convention Center Security Improvement Project – This project is for construction services for secured and unsecured roadway sections, including grading, paving, drainage, lighting, pavement markings, etc. The contract also provides for the construction of a new security checkpoint and the demolition of the existing checkpoint on Eisenhower Boulevard and the relocation of the Port security fiber optic network. Additionally, the contract provides for the installation of a security mesh (screen) at the Northport Parking Garage, improvements to N.E. 20th Street Sally Port and relocation of a dock access security gate. The completion of this work will allow for the Convention Center to be carved out of the Port’s security perimeter. The original title of the project was changed from Spangler Boulevard Bypass Road – Phase 1 to Seaport and Convention Center Security Improvement Project. Gantry Rail and Support System Replacement/Rehabilitation – This project is for the replacement and rehabilitation of gantry rails utilized by gantry container cranes located at Port Everglades. The Port’s ship to shore container cranes travel alongside the berths on rails that are anchored into concrete girders. The majority of the rail systems were originally installed in 1991. Throughout the years the rails and their supporting foundation system have suffered significant wear and tear from the crane’s massive weight (1,600 tons each) and corrosion from the surrounding elements. The failed rail system is 22 years old and has exceeded its useful service life. Next Generation Computer Aided Dispatch System - Broward County has operated for some years with the current Emergency 9 -1-1 System, but area growth and the necessity to operate a multi-jurisdictional and multi-agency Computer-Aided Dispatch System (CAD) have made this an important project. This contract allows the County to implement an Emergency 9-1-1 Computer-Aided Dispatch System with automated vehicle location, multiple law and fire records systems, paging and toning, mobile data and in-vehicle mapping, all with enhanced features to operate multi-jurisdictionally and with multiple police and fire agencies, web-based configuration, optimized performance and continued reliability. Construction Project Manager for Terminal Modernization at the Fort Lauderdale-Hollywood International Airport – With 23 million passengers annually, the Fort Lauderdale-Hollywood International Airport is ranked 21st in the U.S. in total passenger traffic. Fort Lauderdale-Hollywood International Airport, as one of the nation’s busiest airports supporting Port Everglades cruise traffic as well as international, business and visitor traffic is currently implementing an airport improvement program involving Terminal Modernization. Master Banking Services – The Master Banking Services contract offers a wide range of banking services for the County: Basic treasury services including controlled disbursements, account reconcilement, depository services, electronic balance reporting, lockbox services, Fedwire/ACH originations and electronic data interchange. Page 40
Engineer, Install and Maintain a UHF 400 MHz Digital Trunking Public Safety Radio System – To facilitate the County’s move to a regional communications network, a UHF Trunking 400 MHz Radio System was solicited and awarded to provide the features and capacity required for additional communication traffic loading from other municipalities as they join the County’s regional communications network. Engineering and Design Services for Southport Phase IX Container Yard at Port Everglades - The Port container yards are integral to the expansion of Port Everglades’ Southport Turning Notch area. This project involves the design, permitting and construction administration for an estimated 23 acres of new container yard and ancillary buildings to be constructed west of McIntosh Road (Phase IX-B). A second component of the project will include demolition of the existing Foreign Trade Zone warehouse building and conversion of the site into a cargo handling container yard facility (Phase IX-A).
Organizational Focus for Fiscal Year 2015 It has been another successful year of organizational development, growth and achievements. The Division successfully re-organized, implemented a business plan, implemented an electronic bidding system and enhanced the web-based P-Card management software solution. In this upcoming year, the Division will continue to focus on aligning staff’s performance with organizational goals. For this to materialize, our employees must have an understanding and a direct line of sight between performance expectations, performance evaluations and achieving results that support the Division’s strategic plan, goals and objectives. Evolving as a Division, continuing to be an agile, fluid organization to meet the constant demands and expectations of our customers is the perpetual challenge that we must respond to. Thus, our organizational focus will closely examine, identify, and implement business improvements. This will require an effective and ongoing training curriculum for all County employees and vendor community to provide them with the necessary knowledge and competencies regarding policies and procedures, processes, and software systems. Hence, the key focus for FY 2014 includes:
Continuing a Procurement Taskforce to identify new best practices to incorporate into our policies and procedures, various procurement processes, Procurement Code, and technology platforms that support the business operations
Continuing with the implementation of an electronic bidding system to improve upon bid notifications and transforming to an e-procurement solutions for sourcing all contracts to ensure compliance, increased productivity, and achieve cost savings
Conducting Vendor Outreach and “How to do Business with Broward County” Seminars
Participating as functional lead and subject matter experts for procurement matters to implement an Enterprise Resource Planning (ERP) software system
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Executing succession plan strategies to hire, train, and develop new employees to replace employees scheduled to retire within the next several years to prevent gaps in operational effectiveness, and
Investing in current staff by providing training, growth opportunities and equitable compensation to maintain employee retention.
Developing a web-based application to manage the time-consuming manual process of renewing master agreements. The system will send notification out to all stakeholders 270 days prior to expiration; provide workflow and capture how long it takes at different stages in the process; allow contract administrators to reply; generate notification to purchasing agents about contract administrator’s non-response; generate notification to vendors with intent to renew or not to renew and deliver reports regarding master agreement renewal decisions to all stakeholders.
Expanding the Procurement Milestone Application to add new scheduling features to establish baseline schedules; comparing actual task completion dates against baselines; delivering reports regarding delays to appropriate staff members.
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