Administration

Materials Management Division

Statewide Outcome(s):

The Materials Management Division (MMD) supports the following statewide outcome(s).

Efficient and accountable government services.

Context:

MMD strives to achieve the best value for taxpayers through strategic contracting and purchasing of goods and services. MMD facilitates and oversees state agency purchasing valued at approximately $2 billion annually. Primary customers are state agencies, local units of government, public health care facilities, and vendors doing business with the state. Services to state agencies are funded by an appropriation from the general fund. Services to local units of government and health-related facilities are funded by vendor-paid contract administration fees.

Strategies:

MMD utilizes two key strategies to achieve best value in state procurement:

·         Statewide leadership - Lead an enterprise approach, develop contracts for use by multiple government units, standardize and consolidate purchases, and aggressively negotiate contract terms and pricing.

·         Commitment to fairness and ethics - Assure that processes support fair and open competition among qualified vendors and adherence to the highest ethical standards in procurement.

Results:

To measure its success, MMD monitors traditional cost and efficiency metrics but also tracks the number of entities who choose, but are not required, to use MMD contracts. Entities such as local governments and health care facilities utilizing MMD administered cooperative purchasing contracts indirectly measures customer satisfaction as they have multiple contract options available to them. They can reasonably be expected to use contracts that will save them money and effort.

Performance Measures Notes:

1.     The contract processing time is a measurement of days showing the average for FY 2010 and FY 2011 (previous) and the average for FY 2012 (current).

2.     Savings and cost avoidance measures are totals from FY 2011 (previous) and FY 2012 (current). Negotiated savings and cost containment estimates are typically calculated as the difference between the top-ranked vendor’s proposed cost and the actual cost agreed to by the state in the contract as awarded.

3.     Governmental unit measures were taken on 6/30/2010 (previous) and 06/30/2012 (current).

4.     Participating healthcare facility measures are for FY 2010 (previous) and FY 2012 (current).