ICT Procurement ICT Coordinators Information Day – September 2008 Peter Dowling A/ Commercial Director – Strategy DET Procurement Directorate ICT Fleet Manager Ph 1800 654 310 Fx 1800 808 385 Email [email protected]
Dec 30, 2015
ICT Procurement
ICT Coordinators Information Day – September 2008
Peter Dowling A/ Commercial Director – StrategyDET Procurement Directorate
ICT Fleet Manager Ph 1800 654 310 Fx 1800 808 385Email [email protected]
Agenda• ICT procurement in context
• ICT procurement process change
• ICT fleet desk statistics
• ICT hardware
• IWB Standards
• Imaging devices
• Open forum / Issues / Questions
Though small relatively to construction and labour hire, ICT procurement has wonderful opportunities for savings
2006-2007 expenditure DET Hardware Software Telephony ICT
Expenditure - schools $1,067.8M $79.2M $1.2M $8.4M $88.8M
Expenditure - TAFE $456.6M $23.1M $5.5M $7.6M $36.2M
Expenditure - corporate $1,270.9M $87.7M $20.5M $67.2M $175.4M
Expenditure - total $2.85B $190M $27.2M $83.2M $300.4M
Suppliers - schools 67,768+ 140 8 7 155
Suppliers - TAFE 36,504 484 399 217 1,100
Suppliers - corporate 17,268+ 128+ 100+ 100+ 328+
Suppliers - total 121,540+ 752+ 507+ 324+ 1,600+
Invoices - schools 201,403 2,472 104 233 2,809
Invoices - TAFE 424,588 5,192 2,184 6,098 13,474
Invoices - corporate 94,197+ 1,019+ 328+ 7,515 8,862+
Invoices - total 720,188+ 8,683+ 2,616+ 16,462 25,145
ICT procurement in context
Delivering procurement reform• DET is one of the largest procurers of ICT hardware, software
and telephony by any measure
• ICT unit pricing has been coming down and therefore worthwhile to explore through volume commitment
• ICT achieved economies of scale through T4L program
• DoC has recently created better SCCB contracts – Panel eg GTAs, electronic whiteboards, imaging devices
– ITS 2007 with unit pricing
• DET volume commitment with compliance through programs has been given respect by suppliers eg whiteboards, PCs, imaging devices, video conferencing
ICT procurement process change
Delivering procurement reformCoordinated planned Procurement• State based contracts regardless of location/source of funds
• Divide and conquer by suppliers is diminishing eg Fuji has given better pricing by removing the need for marketing programs
• Total lifecycle costing evaluation based on social, economic and environmental evaluations
• Reduced ICT hardware suppliers from 27 to 8 and ordering to a single central location
• Fit for purpose standard classes of device.
• Central source of all DET standard ICT items across DET/TAFE
• Greater accountability from core DET vendors through KPI management
• Roadmap to full asset management, tracking and fleet management for ICT hardware.
ICT procurement process change
ICT Procurement RoadmapHistorically April 16th 2008 + Future
Buying process Ad-hoc/central Central Automated
Asset identification Ad-hoc Central Automated
Asset utilization measurement
When available When available Automated
Asset management
Automated
ICT consumables Ad-hoc/ decentralised
Ad-hoc / decentralised
Centralised
Field service Ad-hoc and localised
Ad-hoc and localised
Direct/Partner model
Help desk and support
Combination of local and central
Combination of local and central
Combination of local and central
Vendor management
Relationship based, unpredictable
Formalising engagement standards
Standards and behaviours across all lines
ICT procurement process change
Needs analysis
Requirements analysis
Requisition
Approval
Purchase order
Delivery
Installation
Training
Audit, leases terminating, growth, replacements
A.Form & expenditure approved
Web check, A.Form raised
A.Form reviewed by vendor
A.Form check, PO raised & sent
Vendor delivers PO to site
Fleet Manager arranges install
Vendor device instruction
Order process
ICT procurement process change
Ordering Process – Imaging(Copiers, Printers, Faxes)
DET Intranet site
- Select Department Resources
- Select A–Z Directorates
- Select Procurement
Selecting Device
- Select Supplier: Fuji Xerox, Hewlett
Packard, Ricoh or Canon
- Select device required and
complete Information Requirements
Form (IRF)
Final Stage
- Supplier checks completed
authorisation form which is then
processed by the ICT Fleet Desk
Supplier
- Supplier will contact customer
- Email is sent with an authorisation
form that needs to be completed and
sent back to the supplier
For assistance at any time call the DET Fleet desk on 1800 654 310
ICT procurement process change
Ordering Process - Discretionary(Interactive Whiteboards and Peripherals)
DET Intranet site
- Run a search for ‘Global Parts List’
(GPL)
- All equipment is listed here for
Connected/Interactive Classrooms
Ordering
- Call/Email ICT Fleet Desk:
- 1800 654 310
- Ensure quantity and model are
included
Processing
- ICT Fleet Desk will send out a
checklist and site assessment to be
completed and returned
- Once returned an Authorisation
Form and Quote will be sent for
signature
Acceptance & Delivery
- On receipt of Authorisation Form
the order will be processed and
delivery ETA is 10 working days
- ETA to installation is approximately
3/4 weeks after delivery.
For assistance at any time call the DET Fleet Desk on 1800 654 310
ICT procurement process change
Progress / Changes
Product
• Removed requirement for all items to have installation (with conditions)
• Allowed for conditional direct ship
• Componentised large, complex product lists to single SKU’s
Process
• Streamlined process of many smartbuy activities (product add, ordering)
• Building reports
• Requested interface for daily live vendor data links.
• Made vendors accountable for full KPI’s
ICT procurement process change
Known teething problems
Systems• Introduction of NSW
Commerce “Smartbuy” program as core catalogue source.
• Updating core DET systems in progress to meet new standards.
• Backlog
Services• Addressing small
service/install item comparisons
• Non aligned vendor marketing.
• Re-training aligned vendor behaviours to meet DET Standards.
A process of constant enhancement and refinement.
ICT procurement process change
The Backlog
Why?
• Delays in standard development
• Non “Fit for Purpose” purchasing
• Opportunistic Supplier marketing
• Delays in vendor shipments.
Expediting
• Backlog cleared 1st week of Term 4
• Additional 50+ install staff, flying squads.
• Inventories / supplier rules
• All business as usual (BAU) require site surveys / self assessments
ICT procurement process change
Telephone Statistics
Number of calls coming into the DET Fleet Desk 3,766
Average time spent on incoming calls 3:01 mins
Number of calls made to sites, from the DET Fleet Desk 10,775
Average time spent on outgoing calls 2:02 mins
Number of abandoned calls 155
SLA 80% Number of calls answered <20 secs) 69%
The following data is from a reflective date range of between the 31st March 2008 to 27th August 2008
ICT fleet desk statistics
Processing Statistics
Total number or orders placed through the DET Fleet Desk 1,706
Total number of Imaging (printers, faxes, etc) orders 1,021
Total number of discretionary orders 685
Total number of emails into “ICTFleetOrders”
(All queries, quotes, orders & site assessments) 2,236
Total number of emails from DET Fleet Team3,106
Printer Order Value $10.1m
IWB / Connected Classroom Value $6.3m
The following data is from a reflective date range of between the 16th April 2008 to 27th August 2008 and shows all orders placed by the
DET Fleet Desk for discretionary and imaging orders
ICT fleet desk statistics
Pricing test
• If a vendor is offering similar product, model and warranty across the state, vendors on program will be required to match this.
Please send comparison data for review to [email protected]
ICT hardware
When comparing value . . .
EG: low cost long throw Epson X5 Consider
• Is this the same type or class of device
• What is the warranty?
• Is service to DET standard across NSW?
• Am I bundling up service and components correctly?
Is not equivalent to
High quality short throw Epson 400w
ICT hardware
Why have approved standards
Standards provide
• Uniformity in service delivery.
• Least risk of unpredictable outcomes.
• Reduced purchase and support costs
• Known platforms to create outcomes.
Standards mean
• Testing and approving products and solutions
• Adopting standards for a time period until they are superseded.
• Training and enforcing usage across the enterprise
• Helping to predictably grow service to the department
IWB standards
Approved Interactive Whiteboards
Stylus Touch (recommended)
Panasonic UB-T780
• 77” diagonal
• Pen/Stylus interface
• Fine point accuracy
• PET-coated metal plate surface
• $1443 ex GST
Finger Touch (optional)
Smartboard SB680
• 77” diagonal
• Touch & stylus interface
• Finger point accuracy
• Polyester surface
• $1958 ex GST
• 64” model available ($1728 ex GST)
IWB standards
Approved Data ProjectorsUltra Short Throw
(8cms - recommended)
Sanyo PLC-XE50• Little to no eye
contact, located above board
• Installs on wall above board
• $2443 ex GST
Short Throw(1-2 metres)
Long Throw(2-9 metres)
Epson EMP-400W• Some eye contact,
located above/in front of teacher
• Install on wall or roof mount
• $1983 ex GST
Dell 1409x• Some eye contact,
located in front of teacher
• Install on roof or free standing
• $1063 ex GST
IWB standards
Ultra Short Throw Projector
• Projects square from 8cms
• Flush mount to wall, less material required
• Low/no glare as bulb is closer to board than teacher
• Alarm/secure
The UST is the DET preferred projector solution
IWB standards
Why were these chosen?
• Short throw / UST projectors give best teacher/student experience.
• Best price/performance and fit for purpose.
• Product compatibility with core systems, future roadmap.
• Warranty and coverage capability across NSW for 4 years
IWB standards
Calculating equity - productContracted item Cost Oct 07 (or
market equiv)Contract cost
Saving in $
Saving in %
Smartboard 680 IWB $3109 $1958 $1381 44%
Panasonic TB780 IWB $1732 $1433 $299 17%
Sanyo PLC XE50 $3799* $2433 $1366 35%
Epson EMP 400w $2599* $1983 $616 24%
Dell 1409x (equiv) $2530 $1063 $1467 58%*unavailable in 2007, pricing based on current non DET market
Also calculate new statewide SLA’s:• 4 year warranty• 10 day delivery SLA’s anywhere in NSW• NBD/2BD Warrantee Service anywhere in NSW
IWB standards
Approved Flat Screen Monitors42 inch flat panel monitor
• LG-42LG30 (recommended)
• High Definition Tuner
• 1366 x 768 resolution
• 2 HDMI & component inputs, 1 S-video
• PC Input and RS232 Control port
• $1618 ex GST
42 inch flat panel monitor
• Phillips BDL4231C
• HDMI input
• 1366 x 768 resolution
• 2 HDMI & component inputs, composite, S-video, smartcard
• PC Input and RS232 Control port
• $1823 ex GST
IWB standards
Video Conferencing Equipment
• Tandberg selected as chosen VC Vendor– Meet equitable service
standards across state
– Best price/fit for purpose
– Compatibility with core applications
– Final pricing and SKU’s to be announced imminently
IWB standards
When do I need installation
Is required for ordering• Full Interactive Classroom
• Ultra Short Throw projectors
• Any fixed cable infrastructure (except in TAFE)
• If you are building the basis for a Full connected Classroom (and this is the first components)
• The fleet desk will always recommend installation
Is not required for• Demountables
• If it makes economic sense for a GA/Parent/CC who carries insurance and qualifications and can follow standards of installation.
• If the school procures installation externally it must be through DET Fleet Manager.
IWB standards
Calculating equity - installation
•Set fixed prices across all NSW regardless of location•Previous pricing varied significantly dependant on location, impacting equity.
•Previously many sites attracted tariff’s / flag falls for services
•Standards of service varied depending on local relationships
•Uniformity across state was not achieved, impacting statewide education delivery.
•Fleet Management will onboard regional NSW VAR’s to continue to refine statewide service model and provide equity**.
IWB standards
Hunter TAFE (5yr life)
• Completed fleet audit
• 45% reduction in fleet
• device improvement
• cost/print reduced $4.9m
PROCUREMENT – IMAGING DEVICES - EXAMPLES
Silverwater High School (5yr life)
Completed fleet audit
• 54% reduction in fleet
• device improvement
• cost/print reduced $200k
PRINT PROCESS REDESIGN
Imaging devices
Of the first 675 devices sold since the moratorium was lifted
Buyers paid $3million LESS
‘Harvested’ $565,000 in margin
$3.565m total savings
• Priority – to rightsize the fleet through changing leases to purchases and selecting the best machines!
• We need your help to “bring out the dead”
Imaging Devices – Savings
Imaging devices
More Information
Please send questions or comments to:
DET ICT Fleet Manager
Ph: 1800 654 310
Fax: 1800 808 385
Email: [email protected]
IT Product PurchaseIT Product Purchase
Buying guidance
Complete Authorisation
Form
AssessRequirement
Review Authorisation
Form
Receives PO/Despatches
Order
ReceivesProduct
Receives& Checks
Invoice/GRN
ProcessInvoices
InvoiceSchools
SCHOOL
FLEET MANAGER
SUPPLIER
PROCUREMENT
FINANCE
Reviewsinvoice
DebitsSchools
ReceivesTraining
ProvideInformationOn Intranet
Approves Debit
Expediting
SiteAudit/
Assessment
DeviceInstallation/
Training