LA GRAD ACT 2.0PROCUREMENT

Faculty Senate

October 3, 2011

La Grad Acts

• Act 741 (2010) - effective: June 29, 2010• Grants increased autonomy and flexibility in

exchange for a commitment to meet clearly defined statewide performance goals.

• Act 418 (2011) - effective: July 12, 2011• Key focus on “Operational Autonomies”

• Procurement granted 3 levels (Base, Intermediate, and High)

• High level autonomies include:• Authority to participate in a pilot procurement code in lieu of the

state procurement code

Grad Act 2.0 - Procurement

• 5 Institutions qualified at high level– LSU– ULL– La Tech– Southern at Shreveport– McNeese

• LSU applied to initiate the pilot procurement code.

Pilot Procurement Code

• Proposed Schedule– System Approval – December 1, 2011– DOA Approval – January 1, 2012– Promulgation of Rules – March 31, 2012– Approval of JLCB – May 31, 2012– Execution of new Pilot Procurement Code –

July 1, 2012– Go Live for eProcurement – July 1, 2012– Pilot Procurement Code -

July 1, 2012 – June 30, 2015

FY 2011 – Spend Analysis

Spend Total Spend ≈ $320m Purchase Orders ≈ $275m PCard Spend ≈ $45m

Transactions Total Transactions ≈ 160,000 Purchase Orders ≈ 12,000 PCard Transactions ≈ 148,000

Transactions

Purchase OrdersPCard

Spend

Purchase OrdersPCard

Pilot Procurement Code

Freedom of bureaucratic processes that slow procurement down

Procurement acclimated to a Research and Academic Institution

More Selection at First Dollar of SpendMore Reasonable Competitive LimitsConvenience of One Stop ShoppingMulti-year Terms

Pilot Procurement Code

• Combines laws governing procurement of materials, professional services, and data processing– No more separate processes for different

types of contracts – Less Confusion– Templates that can be electronically

submitted and digitally signed – Simple– More Selection through more Strategic

Sourcing – Lower Costs

Pilot Procurement Code

• NEW Competitive Methods– Reverse Auctions– Best and Final Offers– Solicitation for Offers– Cooperative Purchasing Agreements– Electronic Purchasing (eProcurement)

eProcurement

• Easier methods to procure by using web-based system

• Real-time Competition• Better Vendor Sources• Can continue to use P-Card• Spend Analysis• Electronic bidding and signatures

Together Pilot Procurement Code and eProcurement Benefits

• Reduces Operating Costs• Hosted Technology

• Saves Users Time• Utilizing Automated Workflow

• Get More for Less• Better Supplier Contracts

• More Selection by Connecting Users to Suppliers• Accessible Contract Catalogs

THANK YOU FOR YOUR FEEDBACK

Marie C Frank, MPA, CPPB

Executive Director of Procurement and Property Management

(225) 578-2307

mfrank@lsu.edu

LSU Purchasing

213 Thomas Boyd Hall

Baton Rouge, La. 70803