SURFnet. We make innovation work0. AGENDA -What’s important -Why does procurement matter -The role of procurement -Procurement within SURFnet -The Vendor.

SURFnet. We make innovation work1

AGENDA

- What’s important

- Why does procurement matter

- The role of procurement

- Procurement within SURFnet

- The Vendor rating initiative

- Q&A

TF-MSP, Wednesday 9 May 2012, Zagreb

SURFnet. We make innovation work

What’s important

10 9 8 7 6 5 4 3 2 1 00%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

4%

30%

47%

17%

1% 1% 0% 0% 0% 0% 0%

Certainly Certainly not

Mainly because- Reliability- Quality of

service- Expertise- Innovation

Source: SURFnet customer-satisfaction research 2011

Why would you recommend SURFnet?

Reasons to think about procument.

The way the world in changing, with commodity suppliers moving in on NREN business, NRENs face increased competition. Providing some economic benefits and efficiencies for their communities seems a good way forward.

NRENs are funded with public money which should be spend in the most efficient way possible.

It’s not just about money, but also about avoiding risks, getting the right conditions into the contract and making the right choices.

Procument phases

specify select Contract Order Control After care

Tactical Procurementsourcing

Operational Procurement

Purchasing

Buying

When should procurement get involved?

6

Specification phase RFP phase / POC Implementation phase Production phase

Cost

Time

Procurement room

Costs of technical changes

Degree in which spec’s are fixes

Input of procurement team

- Specify functionally instead of technically

- Take all costs into account, not just the initial

- Separate wishes from demands

- Allow as many as possible suppliers to offer services

- Get the right conditions into the contract.

- Provide legal assistance

Procurement within SURFnet

- Everybody procures…

- Mandatory procurement & legal advise above threshold values

- Quality above price

- All administration of services is outsourced

SURFnet procurement team

- Started May 2011

- 1 Legal advisor (0.2 FTE)

- 1 Procurement advisor (0.9 FTE)

- 1 Contract administrator (0.2 FTE)

- 1 Administrative support staff (0.2 FTE)

Spend analyses

We all do it…

- All European NREN organizations face the same IT procurements projects. Sharing information will aid risk awareness, lower costs and will increase transparency and quality.

- Awareness of upcoming procurement projects within other European NREN’s can lead to collaboration in areas like vendor selection and the creation of tender documents/scoring sheets.

- In short: why don’t we work together?

Adhoc collaberation

Goal: Create an immediately usable rating mechanism for IT vendors,

Who: HEAnet, UNINETT, Dante & SURFnet

How: Email, 4 VCs, 1 meeting, divide the workload

Planning: 1st VC last week, ready in September

Costs: 1 week work for each participant

Future: expand next year after gaining experience

And of course: Usable by all interested NRENs

Vendor rating initiative topics

• Risk management (financial status, vendor leadership,

resources). UNINETT

• What to rate them on, How to get the required info.

• Vendor Profile (Strategic, Legacy, Emerging, Tactical) HEAnet

• Delivery Track-record / SLA compliancy SURFnet

• Quality aspects (strategic), Quality aspects (operational),

Incidents, Changes, Reliability of delivery, Financial aspects

• Reporting track-record (all Communication aspects) HEAnet

• Sustainability (how green are they) Dante 

Report form: One Excel document with 1 tab per topic

Thank you!

Michel Wets

michel.wets@surfnet.nl

Q&A

1. How have other NRENs embedded procurement within their organization? Centralised, decentralised or coordinated?

2. If TF-MSP is not the right forum for procurement, what is?