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
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