Wednesday, October 12, 2005

GSA/ARIBA: Virginia Procurement Operations Rated Best in Nation.

The State of Virginia is an Ariba Buyer and is connected to GSA Advantage - interesting.

Gov. Mark R. Warner announced that Virginia received the highest score among states in the nation for its procurement operations from the National Purchasing Institute and on behalf of six other major procurement professional organizations. Virginia was one of only five states recognized for excellence in procurement practices and took home top honors.

The Achievement of Excellence in Procurement award for 2005 was presented to the Virginia Department of General Services (DGS), Division of Purchases and Supply (DPS), for its demonstration of excellence in procurement operations by achieving excellence in innovation, professionalism, productivity, e-procurement and leadership attributes.

"This award recognizes the leadership Virginia has shown when it comes to applying business-proven practices to improving the operation of state government," said Warner. "I'm proud to see the commonwealth honored for the way it carefully spends $5 billion in taxpayer funds for goods and services each year."

"The commonwealth has achieved significant efficiencies and cost reductions through the procurement reforms undertaken during Governor Warner's administration," said Virginia Secretary of Administration Sandra Bowen. "The results and the awards are a tribute to state agency heads, managers and employees who have responded to the governor's leadership and high standards."

Procurement reforms include the following actions:

The commonwealth's Internet electronic procurement tool, eVA has received multiple national awards and is widely recognized as the most sophisticated, successful electronic buying system among the states. As of October 2005, 171 state agencies and institutions in Virginia and 492 local governments had placed over 785,700 orders through eVA for a total spend of $7.4 billion.

Purchasing data collected by eVA allows government to leverage its vast purchasing power in the marketplace to reduce costs. eVA also reduces the time required to process purchasing orders, bringing it nearer to that found in the best-run private businesses. Hundreds of government agencies and institutions now make purchases and transactions through eVA, including the purchase of items such as fuel, vehicles, maintenance services and office supplies.

With more than 9,000 registered users, this e-procurement program stimulates competition among the more than 29,000 private vendors registered. eVA has been expanded to provide access to local governments and school systems. Overall, eVA has effectively provided the commonwealth with cost reductions of $69 million in 2005 alone.

The Virginia Partners in Procurement (VaPP) initiative launched in 2002 resulted in the creation of a model spend management program in Virginia. Rather than each agency and institution purchasing independently, this program leverages the commonwealth's combined agency and higher education annual spend for goods and services by negotiating new contracts in areas where purchasing overlaps. The new contracts awarded in the VaPP program are generating annual savings of $30 million. These contracts are also available to local governments.

Virginia is the first and only state to achieve a state-federal partnership for electronic purchasing by linking its electronic procurement system, eVA, with the federal General Services Administration's (GSA) electronic procurement system, GSA Advantage. This partnership enables Virginia state and local governments to access GSA's Federal Supply Schedule for technology products and services.

The Virginia Distribution Center is another leveraged buying and distribution operation, generating savings by supplying over 1,200 government agencies and public institutions throughout Virginia with bulk food and housekeeping products. With over 950 items available, this operation provides a savings of 39 percent on average for bulk food and 51 percent savings for housekeeping supplies. Contract leveraging allows these items to be sold for less than market price, generating annual savings of over $10 million.

"Virginia's procurement officers are constantly exploring more efficient and innovative ways to purchase goods and services for the state," said James T. Roberts, director of the Department of General Services. "New approaches to contracts and modern technology have enabled the state to save time and money."

The other states honored were Arizona, Florida, Georgia and Michigan.

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