Procurement – Vendor Briefings

Clive Eastwood

August 2009

Commercial in Confidence

2August 2009MAF Commercial in Confidence

Background

Work History• Ministry of Education 2002 – 2008• Ministry of Agriculture and Forestry 2008 – now

– Roles: Infrastructure Services Manager, Acting CIO, Management Consultant

Procurement Experience• Infrastructure

– Hosting, Storage, PC’s, Servers, Network equipment, Video Conferencing, Microsoft, LAR’s

• Services– IT Services

• Sector Collaboration – Schools Software– Schools Payroll

3August 2009MAF Commercial in Confidence

MAF – Information Management

MAF Business • Three main customers – Biosecurity, Policy, NZFSA• Border transactions dropping• Changes in Government environment policy• Translate to declining business

MAF IM• Microsoft shop – some other …Unix / Power Builder• 2000 PC’s, 250 Intel Servers, 15 Unix, 25 locations, 180 single user sites• Largely outsourced – Service Providers, Unisys, Telstra, and Revera• Locked into existing commercial arrangements

Plans Going Forward• Optimise technology / streamline services / variablize cost structures• Work with current providers where possible• Embark on a transition journey• Position ourselves for take up of ‘Cloud Computing’ – 18 month timeframe

Planned Tenders • Panel Supply Contract – Software Development Services

4August 2009MAF Commercial in Confidence

Our Preferred Style – Right Sourcing

• Outsource complete segments or silo’s • Set scope broadly • Clear accountability - Service Providers• Long term relationships• Services not product

5August 2009MAF Commercial in Confidence

Cloud Computing

• What is it ? – Virtual Infrastructure

• Consolidates, Servers, Storage, Hosting, Networking

• Removes life cycle management, warranties, under uitilisation

• Economies of scale

• Suits us ?– Variabilise cost structure– Removes complexity – No. of dimensions

multi vendors, support, cost

• Is it there yet ? – No - but see signs of it being established … is

maturing– We aren’t ready either..– Positioning ourselves to take advantage

6August 2009MAF Commercial in Confidence

Cloud Computing - Considerations

• Government Wide Facility ?– Government Shared Network #2 – Syndicated procurement– Future potential but possibly a long way off

• Requirements – Demonstrable policy and process

• Security– Performance / availability– Life cycle management– On shore

• Sharing existing virtualised resources– Yes – but not so easy– Facilitated by a vendor

7August 2009MAF Commercial in Confidence

Procurement Process

• The process - Its not easy !– Plan, Plan, Plan– Develop the plan– Confirm resources

• Prescriptive RFP– Dry run..– Sample contract

• Short sharp snappy evaluation process– 2 -3 weeks– The contract

• How can vendors help ?

8August 2009MAF Commercial in Confidence

Evaluation Criteria / Weightings Well thought through !

• Commodity vs customised Service• Legitimate opportunity to influence outcome• Method

– Product• Often it either complies or it doesn’t • Value for benefits above or below requirements

– Cost• Lowest Cost• X % off lowest cost loose marks• Weightings range from 15% - 75%

– Service• Support capability, similar experience, spares, etc etc• What would the value of that be ?• Less work, quicker delivery, better level of support

9August 2009MAF Commercial in Confidence

Term of Contract • Longer rather than shorter but ..

– Appropriate right of renewal– Exit clauses– Maintaining competitiveness over life of contract

• Life Cycles x Number• Crystal Ball Gazing

– Future Direction – Industry / Vendors / products– Gartner and other commentators

10August 2009MAF Commercial in Confidence

Do’s

• Respect our decisions– Govt Guidelines / internal sign-offs / financial & technical

constraints• Understand where we sit in the life cycle

– Procurement renewals• Help us think about ‘ways of working’

– Real life case studies• Similar agencies using product or services to add value

– Examples of how to describe RFP requirements• Facilitate Cross Government Collaboration

– Vendor Updates / User Forums– Sharing facilities

• Put Your best foot forward during tenders

11August 2009MAF Commercial in Confidence

Don’t’s

• Perpetual bugging

• Divide and Conquer– Government agencies all talk

• Private conversations inside our organisations• Ignore the chain of command

• Approach us during tender processes• Drag the chain on contract sign-off

12August 2009MAF Commercial in Confidence

The Model Vendor

• Seen some very good examples• Best one – Commodity

– Engrained themselves into our business processes

– Completed surveys across the country on our behalf

– Compiled data, organised purchase schedules– Ran implementation project – liaised direct with

our staff– Monthly reporting / updates– Governance model– All done as a ‘Value Add’

13August 2009MAF Commercial in Confidence

Thanks You

Questions ? Thoughts ? Comments