Procurement – Vendor Briefings Clive Eastwood August 2009 Commercial in Confidence.

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


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


Our Preferred Style – Right Sourcing

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


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


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


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 ?


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


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


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


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


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’


Thanks You

Questions ? Thoughts ? Comments

Procurement – Vendor Briefings Clive Eastwood August 2009 Commercial in Confidence.

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Transcript of Procurement – Vendor Briefings Clive Eastwood August 2009 Commercial in Confidence.