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What is eProcurement?
eProcurement
combines the use of Internet technology with procurement best
practices to streamline the purchasing process and reduce costs. The
State of Florida is creating MyFloridaMarketPlace where government
buyers (State Agencies and Eligible users) and vendors will have the
opportunity to conduct business over the Internet.
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Why has the State started an eProcurement initiative?
The State of
Florida is implementing MyFloridaMarketPlace in order to provide a
more efficient, more effective government that fully harnesses the
power of technology by creating an electronic method for conducting
procurement.
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Why is eProcurement good for the State?
The
MyFloridaMarketPlace system will create an online, statewide
marketplace for government buyers and vendors to conduct business,
which will result in increased opportunities and operational
efficiencies for both. The eProcurement initiative does not require
any state appropriated funds for implementation or operation of the
system. Additionally, MyFloridaMarketPlace provides the State the
opportunity to leverage its purchasing power because the State will be
acting as one purchasing entity, with the objective of reducing cost
of goods and services purchased. MyFloridaMarketPlace also provides
the State with better visibility to what is being purchased, and as a
result will be able to make better purchasing decisions and negotiate
better prices with suppliers.
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Which entities can participate?
The pilot
agencies, the Department of Management Services and the Department of
Transportation, will be the first agencies to start using the
MyFloridaMarketPlace system. Following the pilot agencies, all
Executive Branch agencies will begin participating. Subsequently,
other eligible users, such as local governments, universities,
colleges, and public schools will also have the opportunity to
participate.
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Who is undertaking this project?
The Department
of Management Services (DMS) is undertaking this project in
consultation with the State Technology Office and the State Chief
Financial Officer.
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Who is providing the eProcurement solution?
The State has
contracted with Accenture, a management consulting and technology
services organization, to design, build and manage the
MyFloridaMarketPlace system.
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When will State buyers start using MyFloridaMarketPlace?
The system will
be implemented in a phased approach, beginning with a pilot period in
the April-May, 2003 timeframe. The Department of Management Services (DMS)
and the Department of Transportation (DOT) will be the two agencies
participating in the pilot. Subsequently, the system will be provided
to other Executive Branch agencies, followed by other eligible users
(public schools, universities, community colleges, and local
governments). Contracts will be loaded in the system and purchases
will begin with the new fiscal year on July 1, 2003. At this time, all
agency purchases will be completed using the MyFloridaMarketPlace
system. Then, as each new agency begins using the system, they will
purchase through MyFloridaMarketPlace as well.
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What are the benefits for buyers?
The benefits to buyers of using MyFloridaMarketPlace include:
- Leveraging the State’s purchasing
power. eProcurement provides the
State the opportunity to leverage its purchasing power because the
State will be acting as one purchasing entity, with the potential of
reducing cost of goods and services purchased.
State-of-the-art tools. (Electronic, Internet-based transacting) The
system will permit users to conduct activities such as access to
online catalogs, online quoting and sourcing, automated workflow and
online approvals and receiving.
Standardization with the State’s
purchasing practices. The
MyFloridaMarketPlace system will be designed using a combination of
purchasing best practices and existing State purchasing processes,
and will help guide the user through various purchasing decisions.
Improved reporting. By consolidating all of the State’s purchasing
activity into MyFloridaMarketPlace, state purchasing professionals
will have the ability to generate detailed reports and track
contract compliance to identify opportunities for further purchase
price savings.
Faster and More Accurate Ordering.
From the time a buyer enters a purchase request into the system to
the time the invoice is paid, the entire process is one seamless
transaction. This reduces the risk of errors caused by duplicate
entry.
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How will buyers be supported in coming up to speed on the new
system?
Buyers will
receive instructor-led training prior to their agency going live with
the MyFloridaMarketPlace system, and will have the opportunity to
participate in upcoming information sessions. There will also be a
help desk available to answer questions and provide guidance in using
the system.
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Can I still buy from my current vendors if they choose not to
participate in MyFloridaMarketPlace?
No. The State
has made a firm commitment to making MyFloridaMarketPlace as the one
procurement solution used by the State. Cost savings with an
eProcurement system are realized through an aggregation of buying
power, and through increased process efficiencies. In order to
achieve the benefits of MyFloridaMarketPlace, broad and consistent
participation is required and expected.
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What are the benefits for vendors?
The benefits to vendors of using MyFloridaMarketPlace include:
- A single point for vendor
registration. Vendors will register
once and their information is then available to all buyers using the
system. Vendors also have the ability to maintain their information.
- State-of-the-art tools. (Electronic, Internet-based transacting) The
system will allow vendors to provide a consistent and more efficient
way of doing business with the State.
- Increased
access to government buying entities;
and enhanced economic development opportunities for small businesses
and Certified Minority businesses (CMBE’s).
- Online, interactive quoting and
bidding. Vendors will be able to
submit electronic responses to informal quotes (quotes less than
$25,000) and formal sealed bids (over $25,000).
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Why do vendors have to pay the 1% fee to the State?
In an effort to
provide the State and Business community with state-of-the-art tools
and technology in the area of purchasing, the State has instituted a
1% transaction fee for procurement transactions. Actually, the 1% fee
is not new. It has been in existence for a number of years. State
Term Contract vendors currently pay a 1% fee to the State, and will
continue under the MyFloridaMarketPlace system. The State of Florida
will apply a 1% fee to all transactions processed through the
MyFloridaMarketPlace system in order to provide vendors with
electronic access to State buyers and to provide vendor support
activities. There is no initial registration or ongoing subscription
fee charged to vendors. The 1% fee only applies to contracts and
payments processed.
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Won’t vendors just increase prices to
offset the 1% fee they pay?
We know that
Vendors will incorporate the 1% fee into their pricing. That is a
fact. However, we believe that prices will actually stay the same or
decrease due to a number of factors including:
-
Vendors
are incented to get paid faster and are willing to take a ‘discount’
for faster payment
-
Vendors are
currently paying 2-3% today for PCard processing to get payments
faster. eProcurement will enable faster payment and electronic
processing for only 1%.
-
Experience in
other States (NC – of over 200 contracts, no one raised prices) and
in Florida (DOH – negotiated w/ largest Vendor and they agreed to
incorporate fee w/o price increase)
-
Vendors will
see increased benefit in the system through access to more bid
opportunities, more efficient electronic interaction and consistency
across the State enterprise for procurement activities.
Pricing will
still be determined based on market competition for contracts, and all
vendors will incur the same fee.
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What does the 1% fee get used for?
The 1% fee will
help pay for the acquisition, development, implementation and
operations of the MyFloridaMarketPlace system; this includes the
services required to effectively implement an initiative of this size,
develop and execute training required for both buyers and vendors, and
provide the ongoing maintenance and services needed to sustain the
system’s success.
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Why do State Agencies and Vendors
begin participating on July 1, 2003?
On July 1, 2003,
the statewide rules that govern the use of MyFloridaMarketPlace will
take effect. The Statutes outlining eProcurement require the
Department of Management Services to define these rules and the
governance model. To ensure that the system is fair and equitable
(treating all Vendors the same) and to enable the most efficient
transition from the old to the new system, beginning July 1, 2003 all solicitations and State business will require:
This approach
will enable and position Vendors and Agencies for the implementation
of the automated solution and processes being rolled out after July 1,
2003 and into 2004.
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Some bids are large and create an
inappropriate windfall to the State when the 1% transaction fee is
applied, shouldn’t there be a cap?
The 1% fee is
not new to the State. It has been applied equally (regardless of
size) across all State Term Contract transactions for a number of
years. We plan to continue this practice as we expand the program to
all purchasing done by the State. There are literally thousands of
transactions processed by the State of
Florida. Some transactions will
cost more (the majority) and some will cost less than the fee that is
applied. We recognize that some transactions will generate more fees
than others, but in the end, we anticipate that this is the most
equitable approach to implement the program.
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Do all agency contracts have to be placed on or run through the
MyFloridaMarketPlace system?
Yes, all Executive Branch agencies are expected to buy all of their
goods and services through the MyFloridaMarketPlace system.
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I am a
MyFloridaMarketPlace user
administrator and have corrected the spelling of a user's name, but
their Username remains unchanged. How can I make the correction a
universal change?
The username is a key that cannot be modified.
First remove the user completely from the system, and then re-create
the user from scratch with the correct spelling. | 