The Measure of Our Prosperity: The Test and Chance of State Acquirement Measures.


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The Measure of Our Prosperity: The Test and Chance of State Acquisition Measures NASPO Yearly Meeting August 30, 2005 Headings from the NASPO Board Name a little, deft advisory group to direct the task.
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The Measure of Our Success: The Challenge and Opportunity of State Procurement Measures NASPO Annual Meeting August 30, 2005

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Directions from the NASPO Board Appoint a little, deft council to supervise the undertaking. As its beginning undertaking, study our participation asking them what execution measures they utilize at present. Second, set up a paper to address the history and practices of benchmarking and additionally its advantages and pitfalls. With that scenery, the overview results will be the report\'s center to inform the enrollment concerning the execution measures being used now by our participation. Target = 2005 Annual Meeting.

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Directions from the NASPO Board Third, use the data gathered from the enrollment and in addition industry practices to recognize and suggest a set number of regular execution measures that we may all utilization to benchmark our projects. Target = December 31, 2005. Fourth, once the benchmarking measures are resolved, overview the enrollment with respect to those benchmarking measures. For states that decide to partake, the outcomes will be assembled in synopsis, mysterious manner reporting just the measurable outline, without state names. Target = June 2006.

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Directions from the NASPO Board Fifth, the review will be revived twice per year as a Survey\'s component of the States. Not at all like the rest of the information gathered for the State\'s Survey, this execution information won\'t be for production.

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The Committee Vern Jones, Alaska Doug Richins, Utah Fred Springer, Florida Kent Allen, Minnesota Mike Smith, Illinois Voight Shealy, South Carolina With AMR members, Matt Trail and Michelle Sisler

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The Brief - The Measure of Our Success: The Challenge and Opportunity of State Procurement Measures Primary creator, Michelle Sisler, AMR Reviewed and affirmed by the board of trustees

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What is benchmarking? Benchmarking is a procedure utilized as a part of key administration that permits you to assess and look at genuine execution against targets or set objectives all through the cycle of a procedure to figure out where change is required. For state obtainment executives, benchmarking is a key errand in turning into an acquisition execution pioneer .

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What is benchmarking? By and by, benchmarking more often than not includes: consistently measuring and looking at quantitative and subjective parts of execution (capacities or procedures) crosswise over time and/or between comparative elements.

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Characteristics of a "Good" Performance Measure Easily comprehended by imminent bidder, offices and the overall population Focused on the outcomes or craved changes and characterized with a particular objective or level of execution expected Well-characterized and considers both the quantitative (how much?) and the subjective (how well?) parts of an administration Developed by drawing in however many partners as could reasonably be expected as ahead of schedule in the process as could be allowed Developed with a composed definition and all around characterized computation on how information will be accounted for Realistic as far as accessible assets, subsidizing and convenience and perceives externalities outside the ability to control of the framework Source: Commonwealth of Massachusetts, Operational Services Division (2005)

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SMART Specific Measurable Attainable Results situated Time bound

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Types of Performance Measures Inputs (i.e., orders handled), Outputs (i.e., sales prepared), Outcomes (i.e., percent of state term contract investment funds).

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Why Benchmark? For some states, it is getting to be compulsory. Government Reforms (i.e. A-76) and individual state enactment require most acquisition projects to quantify execution. Give a convincing contention to enhancing and executing changes Provide an in number promoting device to empower open backing of state government. Help state acquirement workplaces in averting both inner and outer outsourcing.

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"I believe we\'re measuring the wrong things - and taking a bunches of time and assets to do it. What we have to do is make sense of what\'s truly vital to our prosperity and measure that." - - mysterious Purchasing Director (NY)

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Benchmarking Methods Internal Benchmarking - looking at between changed bureaus of the same state or between capacities inside of one office Competitive Benchmarking - examination between diverse states or all the more particularly, state acquisition divisions Functional/Generic Benchmarking - contrasts the state’s practices and others thought to be best practices

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Top Chief Procurement Officers Measures Price transactions Creating influence through joining volumes Past-conveyance execution Monitoring of conveyance execution Requirements that suppliers have a dependable quality and anxiety persistent change Department spending plan versus genuine consumptions Source: 1997 CAPS Research, Measures of Purchasing Effectiveness

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Top CEO Measures Quality of acquired things Key supplier issues that could influence supply Supplier conveyance execution Internal consumer loyalty Purchase stock dollars Purchase cost investment funds Source: 1997 CAPS Research, Measures of Purchasing Effectiveness

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Question to be Answered Should we benchmark what we need to benchmark for our own particular purposes or look for data from our CEO\'s and others on what they think we ought to benchmark?

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Benchmarking as a Four Phase Process Phase One - Planning Identify clients Identify assets Determine the reason for the data to be utilized Determine the timetable Determine the expenses Determine what will be benchmarked

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Benchmarking as a Four Phase Process Phase Two – Collecting Create an information accumulation arrange First gather inside information to make a standard to help add to the last arrangement of measures Research potential accomplices Establish uniform gathering routines

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Benchmarking as a Four Phase Process Phase Three – Analyze Review and study the information Produce a crevice examination Identify key execution markers Identify open doors for development Develop change activities

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Benchmarking as a Four Phase Process Phase Four - Adapting Monitor results and advancement for proceeded with achievement and distinguishing proof of future open doors Report results and advancement Continue to assemble assets when essential Recalibrate the measure

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The Pitfalls Inadequate readiness Developing either excessively shortsighted (measuring the self-evident) or excessively complex (making the procedure so troublesome and asset escalated that it never completes or never gets utilized). Contrasting “apples with oranges.” Faulty understanding of benchmarking information or, more regrettable, the utilization of benchmarking information for different finishes (political, “gotcha” amusements, and so forth). Insufficient finish

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Toward Common Measures NASPO’s overview recommends that the accompanying are only a forms\' portion and pointers at present being measured and benchmarked by the states: Efficiency of the acquirement process Technical or framework improvement Professional advancement Cost investment funds/cost evasion Economic development and advancement

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Efficiency of the Procurement Process Processing Time for RFP, IFB, RFQ’s, and so forth. Number of Commodity, Technical and Professional Service Contracts Developed/year State Contract Lapses Customer Satisfaction Protest Activity

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Technical or System Development Website or Electronic System Functionality Innovation – Actions Taken, Rules Promulgated to Improve Performance Rate of Reverse Auction Online Registered Vendors Online Bid Responses Contracts with Online Pricing and Ordering Capabilities

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Professional Development Training and Development Hours Number of Certified Staff

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Cost Savings/Cost Avoidance Multi-State Contract Savings Multiple Award Contract Savings State Agency Usage of State-Wide Contracts Revenue per Employee in Office Supplies and Surplus Operations Price Benchmarking Negotiated Savings - Offered Price versus Arranged Price State P-Card Rebate and Volume of P-Card Spend

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Economic Growth and Development Minority and Small Business Outreach Environmentally Preferable Contracting Redistribution Activities (% came back to state organizations) Customer Base Growth Registered Vendors

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Next Step Utilize the data gathered from the enrollment and in addition industry practices to distinguish and suggest a predetermined number of regular execution measures that we may all utilization to benchmark our projects. Target = December 31, 2005.

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Conclusion: Benchmarking and the Value of Public Procurement One of the key assignments for today’s open obtainment officer is helping both government and subjects comprehend that open acquirement is not an expense focus, yet rather, an income and worth place for the ven

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