MyFloridaMarketPlace Buyer FAQs

Frequent Questions & Answers

1. What is eProcurement?
   

   eProcurement combines the use of Internet technology with procurement best practices to streamline the purchasing process and reduce costs. The State of Florida is creating MyFloridaMarketPlace where government buyers (State Agencies and Eligible users) and vendors will have the opportunity to conduct business over the Internet.

2. Why has the State started an eProcurement initiative?
   

   The State of Florida is implementing MyFloridaMarketPlace in order to provide a more efficient, more effective government that fully harnesses the power of technology by creating an electronic method for conducting procurement.

3. Why is eProcurement good for the State?
   

   The MyFloridaMarketPlace system will create an online, statewide marketplace for government buyers and vendors to conduct business, which will result in increased opportunities and operational efficiencies for both. The eProcurement initiative does not require any state appropriated funds for implementation or operation of the system. Additionally, MyFloridaMarketPlace provides the State the opportunity to leverage its purchasing power because the State will be acting as one purchasing entity, with the objective of reducing cost of goods and services purchased. MyFloridaMarketPlace also provides the State with better visibility to what is being purchased, and as a result will be able to make better purchasing decisions and negotiate better prices with suppliers.

4. Which entities can participate?
   

   The pilot agencies, the Department of Management Services and the Department of Transportation, will be the first agencies to start using the MyFloridaMarketPlace system. Following the pilot agencies, all Executive Branch agencies will begin participating. Subsequently, other eligible users, such as local governments, universities, colleges, and public schools will also have the opportunity to participate.

5. Who is undertaking this project?
   

   The Department of Management Services (DMS) is undertaking this project in consultation with the State Technology Office and the State Chief Financial Officer.

6. Who is providing the eProcurement solution?
   

   The State has contracted with Accenture, a management consulting and technology services organization, to design, build and manage the MyFloridaMarketPlace system.

7. When will State buyers start using MyFloridaMarketPlace?
   

   The system will be implemented in a phased approach, beginning with a pilot period in the April-May, 2003 timeframe. The Department of Management Services (DMS) and the Department of Transportation (DOT) will be the two agencies participating in the pilot. Subsequently, the system will be provided to other Executive Branch agencies, followed by other eligible users (public schools, universities, community colleges, and local governments). Contracts will be loaded in the system and purchases will begin with the new fiscal year on July 1, 2003. At this time, all agency purchases will be completed using the MyFloridaMarketPlace system. Then, as each new agency begins using the system, they will purchase through MyFloridaMarketPlace as well.

8. What are the benefits for buyers?
   

   The benefits to buyers of using MyFloridaMarketPlace include:

   • Leveraging the State?s purchasing power. eProcurement provides the State the opportunity to leverage its purchasing power because the State will be acting as one purchasing entity, with the potential of reducing cost of goods and services purchased.
   • State-of-the-art tools. (Electronic, Internet-based transacting) The system will permit users to conduct activities such as access to online catalogs, online quoting and sourcing, automated workflow and online approvals and receiving.
   • Standardization with the State?s purchasing practices. The MyFloridaMarketPlace system will be designed using a combination of purchasing best practices and existing State purchasing processes, and will help guide the user through various purchasing decisions.
   • Improved reporting. By consolidating all of the State?s purchasing activity into MyFloridaMarketPlace, state purchasing professionals will have the ability to generate detailed reports and track contract compliance to identify opportunities for further purchase price savings.
   • Faster and More Accurate Ordering. From the time a buyer enters a purchase request into the system to the time the invoice is paid, the entire process is one seamless transaction. This reduces the risk of errors caused by duplicate entry.
9. How will buyers be supported in coming up to speed on the new system?
   

   Buyers will receive instructor-led training prior to their agency going live with the MyFloridaMarketPlace system, and will have the opportunity to participate in upcoming information sessions. There will also be a help desk available to answer questions and provide guidance in using the system.

10. Can I still buy from my current vendors if they choose not to participate in MyFloridaMarketPlace?
    

    No. The State has made a firm commitment to making MyFloridaMarketPlace as the one procurement solution used by the State. Cost savings with an eProcurement system are realized through an aggregation of buying power, and through increased process efficiencies. In order to achieve the benefits of MyFloridaMarketPlace, broad and consistent participation is required and expected.

11. What are the benefits for vendors?
    

    The benefits to vendors of using MyFloridaMarketPlace include:

    • A single point for vendor registration. Vendors will register once and their information is then available to all buyers using the system. Vendors also have the ability to maintain their information.
    • State-of-the-art tools. (Electronic, Internet-based transacting) The system will allow vendors to provide a consistent and more efficient way of doing business with the State.
    • Increased access to government buying entities; and enhanced economic development opportunities for small businesses and Certified Minority businesses (CMBE?s).
    • Online, interactive quoting and bidding. Vendors will be able to submit electronic responses to informal quotes (quotes less than $25,000) and formal sealed bids (over $25,000).
12. Why do vendors have to pay the 1% fee to the State?
    

    In an effort to provide the State and Business community with state-of-the-art tools and technology in the area of purchasing, the State has instituted a 1% transaction fee for procurement transactions. Actually, the 1% fee is not new. It has been in existence for a number of years. State Term Contract vendors currently pay a 1% fee to the State, and will continue under the MyFloridaMarketPlace system. The State of Florida will apply a 1% fee to all transactions processed through the MyFloridaMarketPlace system in order to provide vendors with electronic access to State buyers and to provide vendor support activities. There is no initial registration or ongoing subscription fee charged to vendors. The 1% fee only applies to contracts and payments processed.

13. Won?t vendors just increase prices to offset the 1% fee they pay?
    

    We know that Vendors will incorporate the 1% fee into their pricing. That is a fact. However, we believe that prices will actually stay the same or decrease due to a number of factors including:

    • Vendors are incented to get paid faster and are willing to take a ?discount? for faster payment
    • Vendors are currently paying 2-3% today for PCard processing to get payments faster. eProcurement will enable faster payment and electronic processing for only 1%.
    • Experience in other States (NC ? of over 200 contracts, no one raised prices) and in Florida (DOH ? negotiated w/ largest Vendor and they agreed to incorporate fee w/o price increase)
    • Vendors will see increased benefit in the system through access to more bid opportunities, more efficient electronic interaction and consistency across the State enterprise for procurement activities.

    Pricing will still be determined based on market competition for contracts, and all vendors will incur the same fee.

14. What does the 1% fee get used for?
    

    The 1% fee will help pay for the acquisition, development, implementation and operations of the MyFloridaMarketPlace system; this includes the services required to effectively implement an initiative of this size, develop and execute training required for both buyers and vendors, and provide the ongoing maintenance and services needed to sustain the system?s success.

15. Why do State Agencies and Vendors begin participating on July 1, 2003?
    

    On July 1, 2003, the statewide rules that govern the use of MyFloridaMarketPlace will take effect. The Statutes outlining eProcurement require the Department of Management Services to define these rules and the governance model. To ensure that the system is fair and equitable (treating all Vendors the same) and to enable the most efficient transition from the old to the new system, beginning July 1, 2003 all solicitations and State business will require:

    • Vendors to register through MyFloridaMarketPlace
    • Agencies to include MyFloridaMarketPlace terms and conditions

    This approach will enable and position Vendors and Agencies for the implementation of the automated solution and processes being rolled out after July 1, 2003 and into 2004.

16. Some bids are large and create an inappropriate windfall to the State when the 1% transaction fee is applied, shouldn?t there be a cap?
    

    The 1% fee is not new to the State. It has been applied equally (regardless of size) across all State Term Contract transactions for a number of years. We plan to continue this practice as we expand the program to all purchasing done by the State. There are literally thousands of transactions processed by the State of Florida. Some transactions will cost more (the majority) and some will cost less than the fee that is applied. We recognize that some transactions will generate more fees than others, but in the end, we anticipate that this is the most equitable approach to implement the program.

17. Do all agency contracts have to be placed on or run through the MyFloridaMarketPlace system?
    

    Yes, all Executive Branch agencies are expected to buy all of their goods and services through the MyFloridaMarketPlace system.

18. I am a MyFloridaMarketPlace user administrator and have corrected the spelling of a user's name, but their Username remains unchanged. How can I make the correction a universal change?
    

    The username is a key that cannot be modified. First remove the user completely from the system, and then re-create the user from scratch with the correct spelling.