1

1 Materials Management
1.1 Materials Management Overview
De focus van de Plant Maintenance en Material Management team was om FFFF’ business requirements te confirmeren en om standard business models te ontwikkelen die het best aansluiten op de doelstellingen van FFFF.
This document describes, in detail, the proposed business decisions to be used for managing procurement functions in the VVVV solution.
A series of workshops were organized to discuss FFFF’ existing purchasing activities, and to develop future business models defining how FFFF will operate under the VVVV solution. These workshops included members of the VVVV team and various subject matter experts from different FFFF funds who are intimately in­volved in activities relating to purchasing. The results of the workshop discussions have been communicated in minutes from the workshops and are summarized in this document. For each section outlined in this document, there has been a corresponding Functional Area Review (FAR) that has been presented to FFFF. The purpose of each FAR was to communicate to the wider audience of Subject Matter Experts, on decisions, recommendations, and open items resulting from the workshop activity.
During the workshops, functional business areas were decomposed into separate process activities and discussed as individual segments. Participants were asked to provide an overview of the current “As Is” process activities in their current business operations as defined by FFFF Procurement Code and Internal Fonds policies and procedures. Participants were then asked to identify potential areas for improvement and the business benefits for doing so. Project Team members subsequently described how these activi­ties are managed in SAP, and how SAP standard business models support or enhance these activities. Participants would then collectively decide on how best to integrate FFFF’ existing process activities using the SAP business model, and define the best and most efficient way to do business within FFFF.
Proposed business process design and requirements described herein are based on our understanding of FFFF functional requirements and inputs resulting from workshop activities, SME expertise and recommended best practices from past client experience. Team members have discussed requirement and process details among themselves and have collaborated with other teams, and subject matter experts (SMEs) before concluding and finalizing their recommendations to FFFF for the proposed Business Blueprint.
The following business process sections describe, at an enterprise level, the scope of business functions that are to be delivered as part of FFFF’ VVVV implementation. Its purpose is to provide a framework for the project team in defining the scope, effort, and timing of configuration and development tasks necessary to deliver the system.

Exhibit 3.1-1 VVVV Solution and Materials Management Business Processes
VVVV Solution
Business Process
Procurement
Purchase Requisitions
Invitations to Bid
Purchase Orders
Contracts

1.1.1 Use of Functionality
The functionality will be used to manage and report on all FFFF procurement activity. It will include full life cycle management so that FFFF and fonds procurement offices will be able to manage all of their procurement activities. The process will begin with a requisition and flow through the invitation to bid (source selection) into ultimately a procurement agreement with a vendor in the form of a purchase order or contract. During these processes there will be real time integration with finance functions for funds management encumbrances and financial code validations. The procurement processes will flow seamlessly into the accounts payable process to facilitate payment to FFFF’ vendors. This will allow for full life cycle reporting and spend analysis across all procurement activity.
Within each of the functional areas, master data is defined to support the recording and posting of the transaction. Some of the key master data items that support these processes will consist of organizational structure elements, vendor master and material master records. As the VVVV solution is intended to be a FFFFwide system and used by FFFF funds, the master data needs to be controlled to prevent unnecessary updates and ensure that integration with other components is maintained. It is recommended that a central master data maintenance group be used to manage and control additions and changes.
1.1.2 Interfaces
Interfaces will be developed to post activity from fonds legacy systems into the VVVV solution. The identification of the fonds legacy systems requiring an interface to the VVVV solution will be conducted as part of the analysis during the fonds implementation efforts. No central FFFFwide procurement or inventory management legacy systems have been identified for interfaces.
1.1.3 Data Conversion
Data conversion activities will be required to load master data items and open procurement documents within the fonds legacy systems at the time of implementation. For each of these types of conversions, a detailed plan will be developed with the fonds during the implementation. In general, detailed transactions will not be converted. The conversion activities will focus on open documents and open items as well as master data records. Historical transactions will not be converted. The following includes a set of guidelines to be used when reviewing data to be converted.
Exhibit 3.1.3-1 Data Conversion Activities
Conversion Item
Approach
FFFF Vendor Master
FFFF vendor master will be loaded into the VVVV solution. This will include the vendors that FFFF is currently conducting business with. An additional conversion will be required for employee records in support of travel-related payments.
Material Master / NIGP Commodity Code
The NIGP Commodity Code will be loaded into the VVVV solution. The initial load will include the total number of NIGP codes that FFFF is licensed for. This will require taking an electronic file from NIGP and mapping them to the appropriate material master data elements within VVVV. A secondary load will be required for each fonds as part of rollout to take a subset of the master NIGP list and extend it to their specific fonds business needs. The secondary loads are not additional data records in the solution, but are fonds specific extensions to the existing loaded records.
Open Procurement Documents
Open purchase orders and contracts for funds going live with the VVVV solution will be converted for each vendor. The vendor file and NIGP Commodity Code will be required in the initial wave of funds as a prerequisite for purchasing documents within the solution. For funds in following rollouts, a validation will be made to ensure that the central vendor file in VVVV has all vendors relevant to those funds. The volume of documents will need to be assessed to determine if it is more practical to do a manual conversion or utilize an automated conversion program.

1.1.4 Organizational Structures
Objective
This section describes the structure and organizational hierarchy elements that will support FFFF’s Materials Management functions. The organizational structure has been designed based on the existing FFFF Fonds model and the respective internal operations of the funds for procurement and Inventory Management. The organizational structure elements described in this section have been designed to support the Materials Management functional business processes that were developed from the workshops conducted.
Process Definition
The organizational structure is the framework in which all master data and transactional data are entered, stored, and reported. In essence, the organizational structure becomes a way of organizing and securing the data in the area of Materials Management. Each functional area requires that specific organizational structures and elements be defined. FFFF business processes and reporting requirements have dictated the Materials Management organizational structure. The key organizational structures in the VVVV Materials Management functionality are outlined below:
Plants – Plants will be created in the VVVV solution and will represent the existing FFFF funds, which abide by the FFFF Procurement Code and manage and account for their own inventories. Each fonds will be identified by its own Plant (Fonds) code. All Plants will be assigned to the Company Code (representative of FFFF, SC01), and Purchasing Organization as described below. Assignment of material inventories to the various funds will be determined on an fonds-by-fonds basis.
Purchasing Organizations – A Purchasing Organization for each fonds will be created in VVVV Materials Management (MM) and will serve as a facility through which all purchasing related activities occur. Since it has been determined that FFFF will be represented in the VVVV solution as a single Company Code (Legal Entity), there will be two central Purchasing Organizations, Material Management Office (MMO) and Information Technology Management Office (ITMO). A minimum of one Purchasing Organization per fonds will be established, so that the fonds can create fonds specific contracts. All Funds will be able to use these Central Purchasing Organizations for FFFFwide or Term Contract purchasing activities.
Purchasing Groups – Purchasing groups will be created in VVVV Materials Management (MM) and will serve as organizational elements to which various purchasing activities will be assigned. Pur­chasing groups will be created within each fonds to represent how an fonds allocates their day-to-day procurement activities for purchase orders and contracts. In effect, purchasing groups will represent how an fonds structures their buyers. Purchasing groups can be established to represent individual buyers, groups of buyers, commodity codes (per NIGP classification), dollar value or region/location. Purchasing groups will be fonds specific per their fonds Procurement organization and business operations.
Storage Locations – Storage locations will be created in VVVV Materials Management (MM) and will serve as the organizational elements allowing the differentiation between various stocks of material in plant. Storage locations can be set up either as a physical or logical location or a combination of both. The storage location is also important as it stores the address information that prints out on the purchase order to notify the vendor for delivery. Each fonds will be assigned at least one default storage location to be defined by the fonds. Additional storage location requirements will be determined on an fonds-by-fonds basis.
Valuation Area – Valuation area is the organizational unit in logistics that subdivides a company for the purpose of valuating material stocks in a uniform and consistent manner. Within FFFF, the valuation area will be defined at the plant (fonds) level. This means that a material will have the same moving average or standard price cost across different physical locations within an fonds but may be different between funds.
Business Requirements
Naming Conventions
The following table is a sample representation of the naming conventions for organizational structures within the VVVV Materials Management functionality. This is not a definitive list for each fonds as some of these codes will be fonds specific and will need to be defined as part of the Fonds Implementation Plan when an fonds is rolled out. The example below shows the central government funds and how they will be represented in the system.
Exhibit 3.1.4-1 Organizational Structures Naming Conventions
Organizational Element
Fonds
Description
Numbering Convention
Plant
CG
Comptroller General’s Office
E120

B&CB
Budget & Control Board
F030

STO
FFFF Treasurer’s Office
E160
Purchasing Organization

Materials Management Office
MMO


Information Technology Management Office
ITMO

CG
Comptroller General’s Office
E120

B&CB
Budget & Control Board
F030

STO
FFFF Treasurer’s Office
E160
Purchasing Groups
ALL
Purchasing Supervisor
001

ALL
Purchasing Buyer
002

ALL
Purchasing Group ($)
003

ALL
Purchasing Group (Commodity)
004

ALL
Purchasing Group (District or Area)
005

Storage Locations – At a minimum, one storage location will be created for each fonds. Storage locations are specific to an fonds and their business operations and will be numbered based on fonds design.
Assignment of Organizational Units
Assignment of organizational elements within FFFF for pur­chasing organizations will occur as follows.
Purchasing Organization MMO and ITMO – assigned to company code SC01
Fonds Purchasing Organization – assigned to each fonds. Each fonds will have a minimum of one Purchasing Organization that mirrors the plant (fonds) code i.e. Fonds F030 à Purchasing Organization F030.
Purchasing Groups – all purchasing groups related to each fonds will be numbered in sequence. The number assignments will be based on the fonds’s position on the rollout schedule. They will be assigned as support elements of the respective purchasing organization and company code as noted above.
Plants – Plant codes will be created and assigned for each fonds based on the STARS Fonds Code with an additional “0” added to the end of the code (Ex. Budget & Control Board - STARS Code = F03 – VVVV Plant (Fonds) Code F030). Plant attributes such as purchasing organization and purchasing group will be assigned to users based on their fonds affiliation and will act as default locations.
Storage Locations – Each fonds will consist of at least one storage location that will be assigned to the Fonds Plant code.
Additional Requirements
The following are additional business requirements that were identified during workshops that were conducted with the VVVV team and fonds representatives:
Exhibit 3.1.4-2 Organizational Structures Additional Requirements
Requirement
Proposed Solution
Each fonds will have FFFF-wide contracts that they can utilize.
RFP Section # 6.2 – 6.4
The VVVV solution will provide each fonds the ability to utilize FFFFwide, term, multi fonds contracts and individual fonds contracts. Refer to Section Materials Management – Purchase Orders for the specific details addressing this functionality.
Funds will be able to create and utilize their own contracts.
RFP Section # 6.2 – 6.4
The VVVV solution will provide each fonds the ability to utilize FFFFwide, Term, multi fonds and individual fonds contracts. Refer to Section Materials Management – Purchase Orders for the specific details addressing this functionality.
Each fonds will have the option to have their own Purchasing Organization and Purchasing Group structure based on the way they do business.
The VVVV solution will provide the ability for each fonds to be identified by their own fonds code. In addition, each fonds including MMO/ITMO will be set up in the system with their own Purchasing Organization Code. Each fonds upon rollout of the solution will define how their buyers and contract administrators are structured and will be set up accordingly. Refer to further details outlined above in this section on coding of Organizational Structure elements.
Purchasing Groups can be set up and requisitions routed based on the following:
- Buyer’s purchasing limits
- A specific buyer
- Buying specific commodities/services
- Buying for a region or a specific location
The VVVV solution will provide each fonds the ability to define how their buyers and contract administrators are set up in the system. Prior to the implementation rollout of the solution, each fonds will identify these values and will be set up in the solution as Purchasing Groups. Refer to further details outlined above in this section on coding of Organizational Structure elements.

Business Benefits
The following business benefits were identified during the workshops:
· Ability to support centralized and decentralized procurement
· Support access to information in real-time mode
· Allows funds to take advantage of centrally created contracts
· Purchasing groups will allow the automated routing of purchase requisitions to the correct buyer
· Allow the creation of a structured reporting hierarchy both FFFFwide and within an fonds

Open Items
Refer to Appendices for outstanding Business Blueprint open items.
Exhibit 3.1.4-3 Sample Purchasing Organization Chart
Reporting
The Organization Structure design will dictate the reporting hierarchy within the Materials Management functionality in the VVVV solution.
The VVVV solution will provide the following ways to report on Materials Management functionality:
· Standard reports that are delivered as part of the SAP software
· Customized reports per the reporting requirements defined in this Blueprint
· Ad-hoc query capabilities for select users
Standard reports will be available in the VVVV solution. The SAP ECC 5.0 and the SAP BW components of the VVVV solution will provide standard delivered reports and info cube structures for Materials Management. Reporting access in the VVVV solution will be profile driven, allowing access only to authorized users. As “User” profiles are developed for security roles it will be determined what reports are applicable to certain job functions and will be assigned to the security role as required.
A complete list of all Materials Management reports can be found in the Reporting Strategy component of the Technical section of this document.
No reporting requirements have been identified for Organizational Structures.
Workflow
No workflow requirements have been identified for Organizational Structures.
Imaging
No imaging requirements have been identified for Organizational Structures.
User Roles
Based on the business processes supporting Organization Structures, the following standard roles have been identified.
Exhibit 3.1.4-4 Organizational Structures Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other Functional and Technical requirements and that the changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.

1.1.5 Master Data
Objective
The objective of this section is to identify the key master data elements that form the foundation for the Materials Management functionality within the VVVV solution. It is important to define these elements and demonstrate where they fit into the functional processes. The first step in establishing the VVVV solution will be to identify all of these master data elements and how they will be loaded into the system either via conversion, interface or manual entry.
Vendor Master
Process Definition
In today’s environment, there is a central vendor file within FFFF that is maintained by the Office of FFFF Comptroller General for processing payments. In addition to this, each fonds maintains their own vendor file for processing business transactions. Within the VVVV solution, all vendor functions and data will be consolidated under one centralized vendor file. It is recommended by the VVVV Workshop Team that a centralized group, whose functions are described later in this section, perform all vendor creation and ongoing maintenance.
Vendor master records contain information about the vendor account that controls how transactions are posted and managed. Although the VVVV solution will maintain a single vendor record, vendor master data can be segmented through security such that financial data can be maintained through the FI module and purchasing data can be maintained through the MM module. For FFFF, vendor master records will be maintained centrally through a single transaction. Maintaining vendor master records centrally and permitting common access ensures that data will only be entered once.
The vendor master records within the VVVV solution will contain information about the vendors that supply goods and services to FFFF. This information is stored in individual vendor master records. A vendor master record contains important details to identify an individual or business entity that is doing business with FFFF. Vendor master records in the VVVV solution will contain, at a minimum, but is not limited to the following detail:
· Vendor ID
· W-9 Specific Information
· Name of Individual or Company (ownership & DBA)
· Address (Street, City, FFFF, ZIP Code, County, Country)
· Alternate address
· Remit address
· Business Type/Industry Profile/Commodity Code
· Contact person (Name, Phone number, Fax, E-mail)
· Status
· Payment block indicator
· Offshore/International Indicator
· Vendor business profile (Minority, Women-owned, etc.)
· SC Minority Vendor Certificate Number
· Federal Minority Vendor Certification Number
· Tax ID information (Federal ID or SSN)
· Vendor tax status (1099, exempt)
· Payment terms
· EDI Capability
Account groups serve a similar purpose on the vendor master as general ledger account groups to a general ledger account. The group is used for selection purposes in the various processes to determine which fields will appear on entry screens and to designate one-time vendors. Each vendor master record can be assigned to only one account group. FFFF will use the VVVV solution standard account groups; however, a need for additional account groups may arise from the Fonds Implementation Plans.
The vendor master includes bank details to support electronic payment requests. The fields include Bank Key and Bank Account. FFFF will utilize the bank data of a vendor within the payment program to support the generation of an electronic payment to a vendor.
Payment terms are conditions established between business partners to settle the payment of invoices. The conditions define the invoice payment due date and the cash discount offered for early settlement of the invoice. The VVVV solution is delivered with standard payment terms; however, new payment terms can be defined in configuration. FFFF will use the standard VVVV solution payment terms (Net 30) that may support specific vendor terms; however, an additional payment term to support the requirement for a 30-business day payment term (versus 30 calendar days) will be created. Payment terms enable the system to calculate a cash discount and invoice due date.
There are several types of tolerances in the VVVV solution. Tolerances are defined per company code. Employees are assigned to an Employee Tolerance Group. All FFFF tolerances will be set at zero.
Vendor master records will be centrally created and maintained in the VVVV solution. FFFF anticipates that approximately 90,000 vendor master records will be converted from the existing legacy system STARS, Standard Accounting and Reporting System, into the VVVV solution as part of the initial central government rollout. These vendors are comprised of the last 2.5 years of procurement and accounts payable activity. An additional 55,000 employee files will be loaded as vendors for payroll processing.
The conversion will consist of exporting vendors from STARS, scrubbing the data for duplicates, and importing them into the VVVV solution. Although FFFF generally keeps 2.5 years of active vendors, the VVVV team recommends that this time period be reevaluated prior to conversion to reduce the quantity of vendors requiring scrubbing and to eliminate unnecessary vendor files within the VVVV solution.
It is recommended by the VVVV team that all vendors will have the ability to do business with FFFF through a Centralized Procurement Portal. This portal will provide a vendor with a place to register online for doing business as well as the ability to access all current FFFF procurement solicitations. Any ven­dor who chooses to register online must provide complete information as prescribed by FFFF in order to establish a vendor master record. Vendor registration functions are offered exclusively to those vendors with whom FFFF intends to have a relationship through purchasing and does not include vendors that are created solely for accounts payable. All vendor registrations need to be approved by the Central Vendor Group (discussed below) before they are given access to utilize the portal for bidding and maintenance functions.
It is recommended by the VVVV Workshop Team that all vendor creation and maintenance functions be centralized. All minority business functions and vendor functions are recommended to be consolidated into a central vendor group whose role will be to service all FFFF government for any vendor related matters. The vendor administrators within the central group will be responsible for setting the policies and guidelines for vendor creation and maintenance. The vendor administrators will be responsible for maintaining the integrity of the data in the vendor master record to support all procurement activities and reporting requirements. The central group will provide a timely and efficient service to the funds within FFFF. Each fonds will be required to establish a vendor liaison who will work closely with the central vendor group to ensure their individual business needs are supported. The fonds vendor liaison will be responsible for coordinating with the central vendor group to ensure that any new vendor masters are created and maintained correctly with all supporting detail in a timely manner so that normal procurement functions of their fonds are not restricted.
Vendor Numbering
A number range must be specified for every account group. The number range specifies a lower and upper value of a group of master record numbers. The value interval of a number range cannot overlap with that of another. There are two ways to number master records:
· Internally - The system assigns the numbers and retains the last number assigned in the Current Number field.
· Externally - The user enters an account number manually. The system determines whether the number is within the defined interval, and if it is available.
FFFF will allow the system to internally assign vendor numbers and will define its number ranges as part of the Realization activities. The Tax Identification Number (either EIN or SSN) will be a secondary reference number in the master record and will not be the primary number for vendors.
Process Flow
Exhibit 3.1.5-1 Vendor Creation Process
Business Requirements
The following are Business Requirements that were identified during workshops that were conducted with the VVVV team and fonds representatives:
Exhibit 3.1.5-2 Vendor Master Requirements
Requirement
Solution Capability
Ability for vendors to register online and perform self maintenance of profile data
See recommendation below for a FFFFwide Procurement Portal. If the recommendation is adopted then the VVVV solution will provide the capability for vendors to register online and maintain their profile data.
Centralized Vendor File
The VVVV solution will provide a central vendor file for all procurement and payables activity.
Centralized Vendor Maintenance Group
See recommendation below for Central Vendor Maintenance Group.
Ability to capture and report against minority business enterprises
The VVVV solution Vendor Master record will be capable of flagging vendors as Minority Business and then reporting against that vendor activity.
Ability to modify and change vendor master data
The VVVV solution will provide the capability to modify the vendor records but this function will be restricted to the Central Vendor Maintenance Group.
Record history of changes made to the vendor master record
The VVVV solution will capture all change history for the vendor master record.
Ability for vendors to register at the 5 digit commodity code level
The VVVV solution will allow for vendors to register online and capture all commodity codes they deal with at the 5-digit level.
Ability to access solicitations from a single FFFFwide procurement portal
See recommendation below for a FFFFwide Procurement Portal. If the recommendation is adopted then the VVVV solution will provide the capability for all vendors to see FFFF procurement solicitations.
Ability to submit bids online
See recommendation below for a FFFFwide Procurement Portal. If the recommendation is adopted then the VVVV solution will provide the capability for registered vendors to participate in online bidding.
Ability to assign multiple locations to one vendor master record
The VVVV solution will provide the capability to assign multiple locations to the vendor master.
Forwarding of electronic confirmations via e-mail to vendors after confirmation
The VVVV solution will provide the capability to communicate with Vendors via email, fax and EDI.
Multi-parameter search functions
The VVVV solution will provide standard search capabilities for vendor searches.

Recommendations
The following is a list of recommendations that have been developed through the Business Blueprint process. Recommendations that are a product of the workshops have been provided and agreed upon by the VVVV Workshop Team and are noted as such.
Exhibit 3.1.5-3 Vendor Master Recommendations
Recommendation
Made By
Follow Up
Centralized Vendor Maintenance Group
VVVV Workshop Team
The VVVV solution will provide the capability to have a centralized vendor file. The VVVV team has recommended that the vendor is a key master data element and can be better maintained by a Central Group. This central group would control all maintenance such as creation, change and deletions of vendor records. In addition, other vendor related functions such as the Minority Business Office should be integrated into this group to maximize efficiency and control of the vendor file. This group would need to work closely with the Fonds Vendor Liaisons to meet the needs of the fonds.
Look at time period for archiving Vendor Records from Legacy systems.
VVVV Workshop Team
The VVVV solution will require the conversion of Vendor records from legacy systems. The current retention period is 2.5 years. The VVVV team recommends that this retention period be reviewed during the Realization phase so that the optimum number of vendor master records are converted into the VVVV solution.
Central Procurement Portal
VVVV Workshop Team
The VVVV Workshop Team has recommended that a Central Procurement Portal be established to enable one point of business for all FFFF vendors. This will allow for one common model for individuals and organizations doing business FFFF. This will also be required to allow for online vendor registration functions and for online bidding including reverse auctioning.
Reporting
The VVVV solution will provide the following ways to report on Materials Management functionality:
· Standard reports that are delivered as part of the SAP software
· Customized reports per the reporting requirements defined in this Blueprint
· Ad-hoc query capabilities for select users
Standard reports will be available in the VVVV solution. The SAP ECC 5.0 and the SAP BW components of the VVVV solution will provide standard delivered reports and info cube structures for Materials Management. Reporting access in the VVVV solution will be profile driven, allowing access only to authorized users. As “User” profiles are developed for security roles it will be determined what reports are applicable to certain job functions and will be assigned to the security role as required.
A complete list of all Materials Management reports can be found in the Reporting Strategy component of the Technical section of this document.
No reporting requirements have been identified for the Vendor Master Record. Reports have been identified for vendor procurement activity and can be found in the Purchase order and Contracts sections of this document.
Workflow
Workflow functionality will be provided as part of the VVVV solution to provide efficiency to the Vendor Creation and Maintenance processes. The following are Workflow processes that will be defined in the system to support the vendor process.
Vendor Creation (Minority), Blockage, Deletion
A notification to the vendor administrator within the Central Vendor Group is made whenever there is a creation of a new vendor master or a change is made to an existing vendor master. A prospective vendor wishing to do business with FFFF or an existing vendor will log on to the central procurement portal to create or modify their details. Upon saving, a workflow notification will route the information to the appropriate administrator in the central vendor group to review and approve. If the administrator approves the creation or modification, the changes will be made in the VVVV solution and a notification email will be forwarded to the vendor to notify them of their successful submission. If, however, the administrator rejects the vendor submission, then the vendor will be notified by email of the reason for rejection and asked to resubmit. In the cases where vendor creation or modification is requested by a vendor who does not have internet and email capabilities, then the workflow process described above will not be applicable. All communications and notifications will need to be either written or via phone.
Imaging
Imaging requirements have been identified for the documents that impact the Vendor Master creation process. Imaging within the Vendor Master refers to the scanning and capturing of information that is required to be maintained to support the Vendor Creation sub-process. The following table identifies the types of documents and information to be included in the imaging process and the point in the process to which the imaging activities would generally occur.
Exhibit 3.1.5-4 Vendor Master Imaging Integration Points
Scanned Documentation
Approval Process
Imaging Integration Point
W-9 Vendor Profile
Yes
The Central Vendor Group will attach the W-9 documentation that they receive from the vendor. This will occur after the vendor master record has been initiated through the online portal by the vendor. This information must be completed and approved prior to issuing purchase orders to the vendor.
Minority Business Certificate
Yes
The Central Vendor Group will attach the Minority Business Certificate to the vendor master record. This will include the acceptance and/or the rejection letter associated with the vendor’s minority business application.

User Roles
Based on the business processes supporting vendor master, the following standard roles have been identified.
Exhibit 3.1.5-5 Vendor Master Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, change and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and adequately testing these changes before any migration into a production environment. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
Central Vendor Master Administrator
The Central Vendor Master Administrator will be responsible for the creation, change and deletion of vendor master records in the VVVV solution. They will be responsible for maintaining the integrity of the data in the vendor master record to support all procurement activities and reporting requirements. The central vendor administrator will provide a timely and efficient service to the funds within FFFF.
Fonds Vendor Master Liaison
The Fonds Vendor Master Liaison will be responsible for coordinating with the central vendor administrator to ensure that any new vendor masters are created and maintained correctly with all the supporting detail in a timely manner so that normal procurement functions of their fonds are not restricted.
Online Vendor
The Online Vendor will be associated with vendors who register through FFFF Procurement Portal. They will maintain their personal details online, such as name, address and commodities. They will be able to participate in online bidding and online solicitation submittal.
Vendor Master Display
The Vendor Master Display user will have the ability to display all vendors and run reports for their fonds.

Material Master
Process Definition
FFFF has chosen to implement a commodity driven classification system in conjunction with the rollout of VVVV. The product that has been decided upon is the NIGP (National Institute of Government Purchasing) Commodity and Service Code system. The NIGP Code is a proprietary product comprised of an extensive library of descriptive codes assembled and organized into a coding structure to identify and describe a wide variety of products and services. The Code is utilized for tracking purchasing activity, for budgeting and management reporting, for tracking and controlling inventory, and for classifying suppliers by the types of products they provide. The coding structure utilized by NIGP is an 11-digit structure that can be broken down into a 3, 5, 7 or 11 digit hierarchy. FFFF is currently licensed for the full 11-digit structure.
Within this implementation, Material Master records will be created in the VVVV solution, utilizing the NIGP Code as the material number. The material master records will contain descriptions of all the materials that FFFF will procure and keep in stock as inventory. It will be the central repository of information on materials for FFFF and will be the predominant reporting mechanism for FFFF to perform spend analysis on FFFFwide procurement. Some other important aspects of the material master will be that it provides a central material data file in a single materials database. This will eliminate problems of data redundancy and permits the data to be used not only by Purchasing, but also by other applications (such as Inventory Management, Materials Planning and Control, Invoice Verification, and so on).
It is recommended by the VVVV Workshop Team that all material master creation and maintenance functions be centralized. All Material Master records will be centrally created and maintained in the VVVV solution by a Central Material Group whose role will be to service all FFFF government funds for material master & NIGP related matters. The material master/NIGP administrators within the central group will be responsible for setting the policies and guidelines for dealing with the NIGP classification system and corresponding creation and maintenance within the VVVV solution. The material master/NIGP administrators will be responsible for maintaining the integrity of the data in the material master record to support all procurement and Inventory Management activities and reporting requirements. The Central Material Group will provide a timely and efficient service to the funds within FFFF. Each fonds should establish a Material Master liaison, who will work closely with the central material master group to ensure their individual business needs are supported. The fonds material master/NIGP liaison will be responsible for coordinating with the Central Material Group to ensure that any new material masters and/or NIGP codes are created and maintained correctly with all supporting detail (i.e. bin location and min/max data) in a timely manner so that normal procurement functions of their fonds are not restricted.
General users will not have maintenance access to the material master record in the VVVV solution. All creations and maintenance should be performed by the Central Material Group or dedicated liaison. Requisitioners will have the ability to search and select items from the material master list within their fonds for requisitioning purposes. Material master records will be created and extended to an fonds for all NIGP classified codes and inventory items that pertain to that fonds. All inventory items will be created as valuated stock. Material master records will be structured and organized as follows:
Organization Structure
The NIGP Commodity Code Structure will be loaded into a reference plant, which will be maintained by the Central Group defined above. This will be FFFF’ master list of all NIGP Commodity Codes and will be a complete listing of the all the commodity codes for which FFFF is licensed. As an fonds determines what subset of the NIGP applies to their business needs, the Central Material Group will extend those material master records to the plant assigned to that fonds. This process will ensure that system search capabilities and system performance are not affected by each fonds having to utilize the full NIGP Commodity listing. As each fonds is rolled out, a subset of those commodity codes that pertain to that fonds’s business will be determined.
Material Views
Information stored in material master records will be organized into “views.” The following is an example of available functional views that will be maintained at a minimum for each material:
§· Basic Data
§· Purchasing
§· MRP – Material Resource Planning
§· Accounting
§· Plant / Storage Location Data
Material Types
FFFF will utilize standard delivered material types within the VVVV solution, but may require the creation of additional material types as requirements warrant. Some of the standard delivered materials types that will be available are:
· Operating supplies
· Raw materials
· Finished products
· Services
· Perishables
Each material type has unique characteristics to define the functions that can be performed in the system with materials of that type. During the next phase when the NIGP Commodity Code structure is loaded into the system it will be determined to what material type each NIGP will be mapped.
Object Numbering Scheme
Material numbers will be externally assigned using the NIGP code number. New numbers will be registered with NIGP before being created as a Material Master record. Purchases will be done at the 7-digit code level for goods and services and at the 11-digit code level for inventory items.
Note: (Capgemini has advised FFFF to utilize the system generated internal numbering functionality with the NIGP number being referenced in the “Old Material Number” field within the Material Master Record).
Process Flow
Exhibit 3.1.5-6 Material Creation Process
Additional Business Requirements
The following are business requirements that were identified during workshops that were conducted with the VVVV team and fonds representatives:
Exhibit 3.1.5-7 Material Master Requirements
Requirement
Solution Capability
Ability to modify and change material master data by plant and material master view
The VVVV solution will provide the capability to change material by fonds (plant) for the data elements that are fonds level. This will be controlled by the Central Material Master Maintenance Group and the Fonds Material Master Liaison.
Record the history of changes made to the material master record
The VVVV solution will provide a complete change history for the Material Master record.
Allow for manual numbering assignment with proper validations to avoid duplicate code entries
The Material Master record will be numbered per the NIGP coding structure. The NIGP code will equal the Material Master number and the VVVV solution will not allow two records with the same number.
Ability to assign materials to multiple plants and storage locations
The VVVV solution will provide the capability for Material Master record to be created centrally and then extended to multiple funds (plants) and storage locations.
Search functionality
The VVVV solution will provide standard search capability for Material Masters.
MRP functions for planning replenishment of materials
The VVVV solution will provide standard MRP functionality. Funds will need to choose to activate this functionality for the relevant commodities in their fonds.
Pricing Control and valuation functions (Moving Average and Standard Pricing
The VVVV solution will provide the capability to utilize moving average or standard pricing of Material Masters. This setting can be by fonds, by commodity.
§
Service Master
Service Management is a sub-component of the Material Management functionality within the VVVV solution. The Service Management functionality allows for the procurement process to take place utilizing the standard procurement process described in this document. Instead of using a Material Master to procure a service from a vendor, a service master will be used. The service master is a key component of this functionality, which represents the data describing the service. Since the service master record and the NIGP classification system serve similar functions, the use of the service master will be determined during the realization phase of the project.
Recommendations
The following is a list of recommendations that have been developed through the Business Blueprint process. Recommendations that are a product of the workshops have been provided and agreed upon by the VVVV Workshop Team and are noted as such.
Exhibit 3.1.5-8 Material Master Recommendations
Recommendation
Made By
Follow Up
Centralized Material Master Maintenance Group
VVVV Workshop Team
The VVVV solution will provide the capability to have centralized material master maintenance. The VVVV team has recommended that the material master is a key master data element and can be better maintained by a Central Group. This central group would control all maintenance such as creation, change and deletions of material records. The Central Group will be responsible for ensuring all naming and numbering conventions adhere to the NIGP Coding Structure. This group would need to work closely with the Fonds Material Master Liaisons to meet the needs of the fonds.
Utilize the NIGP Coding Structure as FFFF’ Classification System for Goods and Services
VVVV Workshop Team
The VVVV solution will utilize the NIGP coding structure as the classification system for goods and services. Each good or service that is used in FFFF will be created as a Material or Service master. The Material Master will be numbered according to the corresponding commodity code within NIGP.
NIGP Level of Detail
VVVV Workshop Team
The VVVV team has recommended that purchases of goods and services be done at the 7-digit NIGP level and that inventory items be done at the 11-digit level.
NIGP Numbering Scheme
VVVV Workshop Team
The VVVV team has recommended that the unique numbering for the Material Master be equivalent to the NIGP number. Note:- Capgemini has advised that internal sequential numbering be used with NIGP as a secondary number in the Material Master. FFFF SME’s have chosen to recommend that the Material number = NIGP number.

Reporting
The VVVV solution will provide the following ways to report on Materials Management functionality:
· Standard reports that are delivered as part of the SAP software
· Customized reports per the reporting requirements defined in this Blueprint
· Ad-hoc query capabilities for select users
Standard reports will be available in the VVVV solution. The SAP ECC 5.0 and the SAP BW components of the VVVV solution will provide standard delivered reports and info cube structures for Materials Management. Reporting access in the VVVV solution will be profile driven, allowing access only to authorized users. As “User” profiles are developed for security roles it will be determined what reports are applicable to certain job functions and will be assigned to the security role as required.
A complete list of all Materials Management reports can be found in the Reporting Strategy component of the Technical section of this document.
No reporting requirements have been identified for the Material Master Record. Reports have been identified for commodity procurement activity and can be found in the Purchase order and Contracts sections of this document.
Workflow
No workflow requirements have been identified for Material Master.
Imaging
No imaging requirements have been identified for Material Master.
User Roles
Based on the business processes supporting Material Master, the following standard roles have been identified.
Exhibit 3.1.5-9 Material Master Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
Central Material Master Administrator
The Central Material Administrator will be responsible for the creation, change and deletion of Material Master records in the VVVV solution. They will be responsible for maintaining the integrity of the data in the material master record to support all procurement activities and reporting requirements. The central material administrator will provide a timely and efficient service to the funds within FFFF.
Fonds Material Master Liaison
The Fonds Material Master Liaison will be responsible for coordinating with the central material administrator to ensure that any new material masters are created and maintained correctly with all the supporting detail in a timely manner so that normal procurement functions of their fonds are not restricted.
Material Master Display
The Material Master Display user will have the ability to display all materials and run reports for their fonds.

Material Groups
Functional Scope
Material Groups will be centrally created and maintained in the VVVV solution. Material groups will be created on the basis of the National Institute of Government Purchasing (NIGP) standard classification for goods and services and will be defined at the 5-digit code class level. All material groups will be represented, as such, in numbering and description per the NIGP code. The Central Organization described in the Material Master section above will maintain responsibility for material groups.
Object Numbering Scheme
Numbering assignments will be externally assigned and will reference the 5-digit classification code reference assigned by the NIGP (e.g., 80005 – Boots And Shoes, Athletic And Sportsman).
Reporting
No reporting requirements have been identified for the Material Group Record. Reports have been identified for commodity procurement activity and can be found in the Purchase order and Contracts sections of this document.
Workflow
No Workflow requirements have been identified for the Material Group.
Imaging
No imaging requirements have been identified for Material Group.
User Roles
Based on the business processes supporting Material Group, the following standard roles have been identified.
Exhibit 3.1.5-10 Material Group Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.

Vendor Lists
Functional Scope
Vendor lists will be centrally created and maintained in the VVVV solution. While the system provides for separate creation and maintenance of vendor lists, FFFF intends to maintain a single vendor list which will contain a mapping of all vendor material group relationships (based upon the NIGP standard commodity and services classification). The vendor list will provide the following functionality:
§· Support bidding functions by highlighting potential sources of supply based on commodity
§· Highlight potential sources of supply to users when creating a requirement coverage request (shopping cart)
A vendor list will be available at the purchasing organization level and will not be restricted by fonds. The vendor list should be maintained in accordance with the following guidelines based on role of supplier:
· Bidders – Vendor list that includes all prospective vendors based on category of commodities they provide
· Vendors – Vendor list should include only active vendors with which FFFF currently engages in purchasing activities
Object Numbering Scheme
Vendor list numbering will be internally assigned by the VVVV solution from a predefined number interval.
Reporting
No reporting requirements have been identified for vendor lists. Reports have been identified for vendor procurement activity and can be found in the Purchase order and Contracts sections of this document.
Workflow
No Workflow requirements have been identified for Vendor Lists.
Imaging
No imaging requirements have been identified for Vendor Lists.
User Roles
Based on the business processes supporting Vendor Lists, the following standard roles have been identified.
Exhibit 3.1.5-11 Vendor Lists Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
Central Vendor Master Administrator
The Central Vendor Administrator will be responsible the creation, change and deletion of Vendor Master records in the VVVV solution. They will be responsible for maintaining the integrity of the data in the vendor master record to support all procurement activities and reporting requirements. The central vendor administrator will provide a timely and efficient service to the funds within FFFF.
Fonds Vendor Master Liaison
The Fonds Vendor Master Liaison will be responsible for coordinating with the central vendor administrator to ensure that any new vendor masters are created and maintained correctly with all the supporting detail in a timely manner so that normal procurement functions of their fonds are not restricted.

Info Records
Functional Scope
A Purchasing Info Record (also referred to in abbreviated form as the "info record") contains information on a specific material and a vendor supplying the material. For example, the vendor's current pricing is stored in the info record. Other additional data can be maintained in the info record to control specific detail about a vendor and a material. Some of these would include delivery quantities, delivery tolerances, special texts, shipping instructions and contact details. The purchasing info record will be maintained in the VVVV solution at the fonds level. The purchasing info record can be maintained down to the individual plant (fonds) or purchasing organization. The info record can be created in 2 ways:
· Manually. A procurement user will create an info record for a material and vendor combination within their respective fonds. This will allow for different funds procuring the same commodity from the same vendor to have different info records.
· Automatic. The “Info update” indicator needs to be set when maintaining a quotation, a purchase order, or an outline agreement. Upon doing this, ordering data is recorded/updated automatically in an info record.
The info record functionality will be optional for an fonds to use. If they do choose to use this functionality, then they will be required to establish these records to identify the relationship between one vendor and one commodity. If multiple vendors supply one commodity, then the VVVV solution will require a different info record for each combination of vendor and commodity. If this relationship cannot be established, then info record master data should not be created and utilized.
Reporting
No reporting requirements have been identified for Info Records.
Workflow
No Workflow requirements have been identified for Info Records.
Imaging
No imaging requirements have been identified for Info Records.
User Roles
Based on the business processes supporting Info Records, the following standard roles have been identified.
Exhibit 3.1.5-12 Info Record Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
Fonds Info Record Administrator
The Fonds Info Record Administrator will be responsible for creating, changing and deleting Info Records in the VVVV solution. They will need to be knowledgeable of the vendor master record and the NIGP commodity code structure.

1.2 Procurement
1.2.1 Purchase Requisitions
Objective
This section will describe the business process requirements for FFFF’ procurement requisitioning process. The goal is to streamline and expedite the process of documenting and approving end user requests for materials and services from external suppliers. The requisitioning process will create a single point of entry for all requisitioning, utilizing automation and imaging in a paperless environment. The requisitioning process will be real time and integrated with Finance functions to allow FFFF to encumber funds at the earliest time possible while capturing spend data for future analysis.
Process Definition
Overview
This process is used to request any material or service. A user determines a need (either a service or product). The user may choose their need from online catalogs (i.e., FFFFwide, Term, Multi-Fonds and Fonds Contracts), product master (which includes both materials and services), or type the description of the specific need. The information above will be used to create the purchase requisition along with the information listed below. The system will automatically default some information into each user’s document (i.e. codes for purchasing organization, fonds (plant) and/or storage location) based on their fonds user parameters. Upon completion of the necessary requisition detail, the requisition will be routed via workflow through the necessary approval steps to ultimately get to a complete document that can be processed by a buyer within procurement. If the requisition is in the amount above the fonds certification, the requisition will be routed via workflow to MMO or ITMO for processing.
Process Flows
Requisition Basic Data
· Requisition number
· NIGP Commodity Code identifying service or product
· Short description
· Quantity
· Unit of measure
· Estimated cost
· Desired delivery date
· Plant/Storage location
· Requisitioner’s name
· Desired or potential vendor
· Financial elements (account assignment details such as Cost Center, GL account and Fund. Other budgetary elements in Funds Management can be derived from the these financial attributes)
· Additional documentation including but not limited to specifications and justifications
To accurately capture FFFF’ total spend, a requisition will require the use of a NIGP Commodity Code for services and products. The capability to utilize free text requisitions will be available but should only be used in extenuating circumstances. The use of free text requisitions will limit FFFF’ ability to have accurate reporting data on commodity spend.
Requisitioners who purchase the same items throughout the year will have the capability to create and save templates for these recurring requests. The template will save information typed into the information fields as well as the material or service.
Requisitioners will have the ability to put a requisition on hold and be able to process the additional information at a later time. This functionality allows for a requisitioner to build a requisition and be able to stop at any point without losing their work or causing any financial impacts in the system. The requisition is temporarily stored in the VVVV solution for future processing. Financial documents will only be created upon the actual “save” of the requisition.
For users with no VVVV system access, a paper copy of the standard requisition form that contains all appropriate fields will be available for their use. This standard requisition form will be forwarded to a staff person who has system access for input. This standard requisition form will need to be developed during the next phase and the data contained within the form will replicate the online requisition document. The following are negative impacts of the paper requisition process:
· Original requisitioner has no visibility of online requisition
· Data will be created twice (once manually and once on the system)
· Loss of automated workflow connection with original requisitioner
Process Scenarios
Assets
It has been recommended by Capgemini that the identification of an asset be completed as early in the process as possible. Thus, it is incumbent upon the requisitioner to identify an item as an asset (per FFFF’s definition) and notify the Asset Custodian who will create an asset master record with the appropriate information. Once the asset master record is completed, the asset custodian will notify the requisitioner. The requisitioner will add the Asset Master Record Number to the requisition and continue its creation. Refer to Finance – Asset Accounting section of this document for further details on the asset process.
Additional Functions
Procure from catalogs – Users will have the ability to create a requisition by browsing locally staged and / or remote catalogs. Selected items are returned directly to the VVVV solution and included as line items in an online requisition. Note: This functionality is unique to the SAP SRM module included in the scope of the VVVV solution.
Create an ad-hoc request – Users will have the ability to create a request for items (goods and services) that are not cataloged, by entering a text description of goods and or services required.
Procure on behalf of other users – Users will have the ability to create a request document (requisition) on behalf of other purchasing organizations within their fonds and/or users within their purchasing organization.
Favorites & Templates – Users will have the ability to utilize “favorites” and “template” functions that provide for quick access and standardizing of frequently purchased items.
Public Templates – Select users will have the ability to create public templates that provide standardized attributes for specific items purchased by users belonging to the same fonds.
Basic data defaults – When creating a purchasing document, the user’s basic organizational data such as cost center, address, and purchasing data will default automatically into the request document based on their user parameters.
Account Assignment – Specification of accounting objects to be charged when goods / services are purchased for direct usage or consumption as opposed to procuring into inventory. Account assignment is defined on the requisition and purchase order at the item level. For one line item, one or several account assignments can be specified.
The following account assignment objects will be available for assignment and allocation of costs for purchasing activities:
Exhibit 3.2.1-1 Account Assignment Objects
Account Assignment
Required Accounting Object
Cost Center
Cost Center Number
Fund
Fund Number
Fund Center
Fund Center Number
Functional Area
Functional Area Code
Commitment Item
Commitment Item Number
Internal Orders
Internal Order Number
Assets
Asset number
Project
Work Breakdown Structure (WBS) Elements.

Account determination – The system will perform GL account determination for line items based on commodity code and type of account assignment. The GL account defaulted through commodity mapping may be changed, if necessary. The ability to perform split accounting functions will be available to allow users to distribute line item costs to multiple accounting objects and GL accounts.
Asset creation – The Requisitioner will be responsible for identifying whether an item is an asset. If the item qualifies as an asset, they will contact the Asset Custodian who will create the asset master record. The requisitioner is then notified of the asset master record number and applies it to the requisition. See Finance – Asset Accounting section of this document for further details.
Source Determination – The following data objects will be available for use in determining source of supply information for various products and material items.
§· Catalogs (including locally staged and remote)
§· Purchase contracts (including FFFFwide, Term, multi-fonds and fonds contracts)
§· Vendor lists
The system will automatically determine or suggest a source of supply when an item that has been sourced is added to a requisitioner’s request as a line item (i.e. a requisitioner will be notified on the screen if a commodity has an existing contract).
Notes & Attachments – Users will have the ability to create notes for internal or external (vendor) use and have the ability to upload attachments to request documents.
Availability Check – When requesting inventory items, the system will check availability of requested items within their assigned plants. The system will create a Reservation for items that are available in in­ventory and an external demand document (e.g., requisition) when items are not available or cannot be fulfilled within the prescribed delivery date. Automatic replenishment through the use of Materials Requirement Planning functionality will be a determination made by each fonds by commodity.
Validation functions – The system will be configured to perform real-time validation against MM/FI/CO objects in the VVVV solution as a condition to release including but not limited to:
§· Accounting objects
§· Budgeted objects
§· Purchasing objects (Purchasing Organizations, Plants, Storage Location)
Upon creation of a requisition, the VVVV solution will perform an online budget availability check. Pre-encumbrances will be recorded in the Funds Management module of the VVVV solution.
Document Type and Numbering Requirements
The VVVV solution will utilize special and standard document types to define purchase requisitions. The special type will be created for central procurement, ITMO and MMO, to allow them to create requisitions without encumbering funds. It will act as an internal requisition for central procurement allowing them to utilize the VVVV solution to start the solicitation process. These requisitions could originate within ITMO, MMO or from an fonds that has not been rolled out to the VVVV solution.
Requisition numbers will be internally assigned by the system from a predefined number range for each document type.
Note: Document heading functions will be available for users to define specific naming conventions for requisition documents at their discretion. These headings may be used as a source of reference for future query or reporting needs.
Exhibit 3.2.1-2 Purchase Requisition to Check Process
Exhibit 3.2.1-3 Purchase Requisition Creation Process
Exhibit 3.2.1-4 Purchase Requisition Creation for Asset Process
Business Benefits
· Full integration between financial and procurement/inventory applications
· Purchase requisitions will be stored and retrieved electronically with information available to anyone in the fonds with the proper authorization
· Purchase requisitions will have one uniform process throughout all FFFF funds
· A complete audit trail of all purchase requisitions will be available for review
· Texts from the material master records will populate on purchase requisitions
· Material Master Record represents the central source of material-specific data and eliminates the problem of data redundancy
· Online validation and funds availability control at purchase requisition creation
· Pre-encumbrance accounting transactions at the requisition level will ensure that funding is available at the time of invoice payment
· Ability to have multiple purchase requisition release strategies based on the individual fonds needs
· Online processing allows for easy approval, with little or no paper flow to slow down the process
· Automated routing of purchase requisitions for approval
· Ability of the owner of the budget to approve the purchase requisition
· Allow centralized and decentralized reporting
· FFFFwide or fonds wide visibility of procurement activity in real time
· Better workload distribution across buyers
· Elimination of manual data collection for reporting

Recommendations
The following is a list of recommendations that have been developed through the Business Blueprint process. Recommendations that are a product of the workshops have been provided and agreed upon by the VVVV Workshop team and are noted as such.
Exhibit 3.2.1-5 Purchase Requisition Recommendations
Recommendation
Made By
Follow Up
Create an electronic requisition with a unique requisition number.
VVVV Workshop Team
The VVVV solution will provide electronic requisitions with a system generated sequential number. Only in extraordinary circumstances where an Fonds has limited access to VVVV because of technology limitations will there be need for a paper based requisition. This is described in the process section above.
Track life cycle of a requisition including creation, modification, execution, or cancellation, including returns and credits.
VVVV Workshop Team
The VVVV solution will provide full life cycle transaction capabilities for the procurement cycle.
Allow requestor to suggest multiple potential vendors (utilizing notes section of requisition).
VVVV Workshop Team
The VVVV solution will provide the requisitioner one field for identifying a potential vendor. For multiple vendors the requisitioner will need to utilize the noted/free text section of the requisition.
Notification if the requested commodity is on FFFFwide or Term contracts.
VVVV Workshop Team
The VVVV solution will provide online notification if the commodity on the requisition is currently on an existing FFFFwide or term contract or purchase order. This will occur when a buyer is processing a requisition.
Cross-referencing of requisitions to the corresponding purchase order and vice versa.
VVVV Workshop Team
The VVVV solution will link all associated documents automatically. The requisition, purchase order, contracts, delivery/goods receipt and invoice will all be linked. Users will have the capability to drill from one document to another as long as their security profile permits access.
Each Fonds will have purchase requisition release dollar limits.
VVVV Workshop Team
The VVVV solution will provide each fonds the capability to establish their individual release strategies. Each strategy will be unique to the fonds and include dollar limits as well as other predefined approvals e.g. IT approval. See Purchase Requisition Workflow section for complete list of approvals.
Examples of purchase requisition approval routing could be based on the following: Commodity Type, Purchasing Group or Dollar Value.
VVVV Workshop Team
The VVVV solution will provide each fonds the capability to establish their individual release strategies. Each strategy will be unique to the fonds and include dollar limits as well as other predefined approvals e.g. IT approval. See Purchase Requisition Workflow section for complete list of Approvals.
When creating a purchase requisition the requisitioner will need to know or search for the material number and accounting information.
VVVV Workshop Team
The VVVV solution will utilize the NIGP coding structure to classify goods and services. There will be full search capability in the solution to find materials or account codes. The VVVV Workshop Team recommends that all users be provided with adequate training on NIGP and Finance codes, before they are required to use the system.

Business Requirements
The following are business requirements that were identified during workshops conducted with the VVVV team and fonds representatives:
Exhibit 3.2.1-6 Purchase Requisition Requirements
Requirement
Solution Capability
Paperless Requisition process that is automated
RFP Section # 6.4.2
The VVVV solution will provide each fonds the ability to create purchase requisitions in an automated solution. The solution will allow for a requisition to flow through to invoice processing in a paperless environment.
Ability to split the funding source on the purchase requisition
RFP Section # 6.4.2
The VVVV solution will provide the capability to split funding multiple ways on a purchase requisition (i.e., quantity or percentage)
Ability to track changes on the purchase requisition
RFP Section # 6.4.2
The VVVV solution will provide the capability to capture all change history on a purchase requisition.
Budget owners need to approve the purchase requisition
RFP Section # 6.4.2
The VVVV solution will provide multiple release strategies per Fonds. The defined Purchase Requisition process in the section will require the budget owner to provide final approval for requisition before it is routed to a buyer.
A material classification system needs to be in place
RFP Section # 6.4.2
The VVVV solution will utilize the NIGP coding structure as the material classification system. This decision was agreed upon by the VVVV Workshop Team.
Workflow for purchase requisitions will be required
RFP Section # 6.4.2
The VVVV solution will provide standard workflow capabilities including all requisition approval processes.
Attach/Open documents (i.e., Word)
RFP Section # 6.4.2
The VVVV solution will provide the ability to attach/open word documents as well as other documents including but not limited to (pdf’s, excel spreadsheets, html)
Create Purchase Requisition from created and approved purchase requisition
RFP Section # 6.4.2
The VVVV solution will provide the ability to create purchase requisitions with reference to existing requisitions and to existing requisition templates.
Create Purchase order from multiple lines created in different purchase requisitions
RFP Section # 6.4.2
The VVVV solution will provide the ability to create purchase orders from multiple requisition line items.
Attach Notes to the purchase requisition document
RFP Section # 6.4.2
The VVVV solution will provide the ability to attach documents as well as free text in the notes section of the requisition.
Route Purchase Requisition line items automatically and manually to buyers
RFP Section # 6.4.2
The VVVV solution will require that requisition line items be assigned to a purchasing group code. This will allow for automatic routing of the requisition to the correct buyer.
Create text templates
RFP Section # 6.4.2
The VVVV solution will provide the ability to create and maintain standard texts within the solution. The standard texts can be incorporated in the notes or long text section of the requisition.

Open Items
Refer to Appendices for outstanding Business Blueprint open items.
Reporting
The VVVV solution will provide the following ways to report on Materials Management functionality:
· Standard reports that are delivered as part of the SAP software
· Customized reports per the reporting requirements defined in this Blueprint
· Ad-hoc query capabilities for select users
Standard reports will be available in the VVVV solution. The SAP ECC 5.0 and the SAP BW components of the VVVV solution will provide standard delivered reports and info cube structures for Materials Management. Reporting access in the VVVV solution will be profile driven, allowing access only to authorized users. As “User” profiles are developed for security roles it will be determined what reports are applicable to certain job functions and will be assigned to the security role as required.
A complete list of all Materials Management reports can be found in the Reporting Strategy component of the Technical section of this document.
The following is a list of the Purchase Requisition Reports identified during workshops.
Exhibit 3.2.1-7 Purchase Requisition Reporting Needs
Report Name
Description
Standard Report/ InfoCube
Active Requisitions with Fund Expiration
This report will list all purchase requisitions that have an expiring funding source within a specified time range by requisition, commodity, date, fund and location.
Custom Report or InfoCube to be developed.
WIP Purchase Requisition by Buyer
This report will list all purchase requisitions assigned to a buyer that have yet to be turned into contract or purchase order by buyer code, requisition number, commodity, quantity and date.
Standard Report – List Display of Purchase Requisitions
Processing Time Report
This report will list the processing time to take a purchase requisition through the full procurement cycle to invoice completion by document type by location.
Custom Report or InfoCube to be developed. 3 Standard InfoCubes exist which could provide basis for customization.
InfoCube – Service Level Purchase Orders
InfoCube – Service Level Purchase Order Qty
InfoCube - Service Level Purchase Order Items

InfoCubes represent predefined sets of data that will be accessible for authorized users from the VVVV Business Warehouse. The InfoCubes contain information that is transferred from the production system into a repository on a predefined basis. The cubes are standard cubes within the solution and will be reviewed by the project team to confirm applicability for the specific functional reporting needs as identified above.
Exhibit 3.2.1-8 Purchase Requisition InfoCubes
InfoCube Name
Purpose/Description
Service Level - Purchase Orders
This Cube enables you to evaluate the service level on the level of purchase orders. You can thus analyze, for example, the total number of purchase orders for the share of the purchase orders delivered late.
Service Level - Purchase Order Items
This Cube enables you to evaluate the service level on the level of purchase order items. You can thus analyze, for example, the total number of purchase items for the share of the purchase order items delivered late.
Service Level - Purchase Order Quantities
This Cube enables you to evaluate the service level on the level of purchase order quantities. You can thus analyze, for example, the entire purchase order quantity for the share of the purchase order quantities delivered late.

Workflow
The system will provide the ability to create various approval strategies based on combinations of different criteria such as dollar value, commodity type or funding source. Workflow will be used to electronically route requisitions to different individuals/positions for approval and ultimately to a buyer for processing. General workflow requirements have been determined, insofar as their degree of relevance to all funds across FFFF and can be found in the “Purchase Order and Contracts” sections of this document. Workflow strategies will be addressed specifically during that particular fonds’s rollout to meet their needs. Requesters can add additional approvers and reviewers to the workflow to meet review and oversight requirements that are specific to their fonds.
Assigned spending and approval limits will be used as an initial basis of workflow determination. Specific spending and approval limits will be assigned by role and fonds hierarchy. All workflow routing will be based on the standardized procurement process documented in the flowcharts. Fonds specific approval strategies will be defined during the fonds rollout. If any fonds determines that they have a unique requirement based on their procurement processes that differs from the standard process identified in this document, then they will be addressed during the fonds roll out. Any modifications to the Procurement Code during the implementations of the VVVV solution will have an impact on the approval and workflow process and will need to be addressed.
In addition to utilizing dollar limit controls for requisition approval, approvers will be added on the basis of type of commodity code. Commodities that have been identified to require additional approval are as follows:
§· IT Hardware / Software
§· Furniture
§· Vehicles
§· Telecommunications equipment
§· Hazardous materials
§· Services
- Architechtural
- Accounting
- Legal
- Construction
§· Drugs / Pharmaceuticals
· Guns and Ammunition
· Lab equipment
· Chemicals
· Alcohol
· Underground storage tanks
· Auxiliary Law Enforcement Equipment and Supplies
· Security systems
· Exempt items
· Sole source
· Emergencies
Requisitions that contain items belonging to any of the specified categories of commodities will be routed to approvers responsible for their oversight and approval. As an example, items mapped to IT commodities will be routed to IT Planning for approval.
The system will add special approvers to the workflow on the basis of specified account assignment category. Account assignments that require special approval are as follows:
· Grants
· Internal Orders
· WBS Elements
· Fund or Fund Center
Requisitions that contain items that are assigned to any of the above account assignment categories will be routed to individuals responsible for their oversight and approval (e.g., Item costs assigned to a grant will be routed to the “Grants Office” or other appropriate office for approval).
Requisitioners will utilize the “Check Status” function within the VVVV solution as a primary medium to monitoring the status of their re­quests that are pending approval and may at anytime prior to final approval, change or withdraw a request.
The following mediums will be available for use in approving requisitions:
§· VVVV Integrated Inbox
· Details View
Approvers will be permitted to make changes to the requisition. The system will recalculate the work­flow and add incremental approvers, as changes require. Changes made by an approver will require resubmission back to the original approver to go through the approval process again. As changes are made, users will be notified of changes to their original request and be given the opportunity of accepting, modifying and resubmitting, or withdrawing their requests before they are final.
Imaging
Imaging requirements have been identified for the documents that impact the Purchase Requisition processes. Imaging within Purchase Requisitions refers to the scanning and capturing of information that is required to be maintained to support the requisitioning of goods and services. The following table identifies the types of documents and information to be included in the imaging process and the point in the process to which the imaging activities would generally occur.
Exhibit 3.2.1-9 Purchase Requisition Imaging Integration Points
Scanned Documentation
Approval Process
Imaging Integration Point
Informal Quote (<$10,000)
Yes
Fonds personnel would attach the documentation where they have received quotes to the requisition. These quotes would be used in the approval process as the requisition is routed through the approval steps to the buyer. This document will be attached to the requisition upon creation before the requisition is workflowed for approval.
Drawings (CAD, etc.)
No
Fonds personnel would attach this supporting documentation to the requisition. This document will be used to assist the buyer in identifying the correct goods or service and the appropriate vendor. This document will be attached to the requisition upon creation before the requisition is workflowed to the buyer.
Specifications (received by paper, disk or CD)
No
Fonds personnel would attach this supporting documentation to the requisition. This document will be used to assist the buyer in identifying the correct goods or service and the appropriate vendor. This document will be attached to the requisition upon creation before the requisition is workflowed to the buyer.
Finality of Determinations (Procurement Code § 11-35-2410)
Examples:
- Conditions for Use
- Request for Qualifications
- Cancellation of Awards

No
Fonds personnel would attach this supporting documentation to the requisition. This document will be used to assist the buyer in determining the appropriate procurement method and vendor. This document will be attached to the requisition upon creation before the requisition is workflowed to the buyer.
List of Suggested Vendors
No
Fonds personnel would attach this supporting documentation to the requisition. This document will be used to assist the buyer in identifying the appropriate vendor. This document will be attached to the requisition upon creation before the requisition is workflowed to the buyer.
Vendor Quotes on Letterhead (>$5,000 <=$10,000)
Yes
Fonds personnel would attach the documentation where they have received quotes to the requisition. These quotes would be used in the approval process as the requisition is routed through the approval steps to the buyer. This document will be attached to the requisition upon creation before the requisition is workflowed for approval.
User Roles
Based on the business processes supporting Inventory Management, the following standard roles have been identified.
Exhibit 3.2.1-10 Purchase Requisition Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
Fonds Requisitioner
The Fonds Requisitioner will be responsible for creating, changing and deleting requisitions in the VVVV solution. They will be knowledgeable of the NIGP commodity code structure and the relevant VVVV financial data. i.e. Fund, Fund center, GL account and Cost Center. They will be responsible for coding the requisitions correctly to minimize recoding the requisition.
Fonds Requisition Approver
The Fonds Requisition Approver will be responsible for viewing, modifying and approving the purchase requisition. They will be knowledgeable of the NIGP coding structure and the VVVV financial coding structure. They will have a good understanding of the VVVV release strategy process to know how a requisition is routed through the approval steps before it gets to a buyer.
Fonds Purchase Requisitions Display
The Fonds Inventory Display user will have the ability to display all purchase requisitions and run reports for their fonds.
1.2.2 Invitations to Bid
Objective
This section describes the business process requirements for FFFF’ Source Selection process. The goal is to provide the necessary tools within the VVVV solution to provide efficient and timely processes for selecting the appropriate procurement method and selecting vendors to do business with FFFF. The VVVV solution will provide an integrated solution to automate the process of taking a requisition through the procurement cycle. The VVVV solution will provide FFFF the ability to take the existing source selection process that is manual and cumbersome in today’s environment and replace it with an automated paperless system. The VVVV solution will give FFFF the ability to have a centralized view of all FFFF’ vendor activity at one time.
Process Definition
Overview
For the purposes of this documentation, the VVVV team and fonds representatives reviewed the FFFF Procurement Code and identified the criteria used for sourcing materials/services and bid solicitations. Methods of Source Selection can be made utilizing the following sourcing sub-processes:
· Fonds Warehouse
· FFFF Warehouse
· FFFFwide, Term or Fonds Contract
· Multi-Fonds Contract
· Exemptions
· Sole Source
· Emergency
· Inter Fonds
· Auction
· Reverse Auction
· Solicitation
- Request for Quotation (RFQ)
- Competitive Sealed Bids
- Competitive Best Value Bids
- Competitive Fixed Price Bids
- Competitive Sealed Proposals (RFP)
- Small Purchases
Process Flows
A Request for Quote (RFQ) in the VVVV solution is an invitation to vendors to bid on the required service and or materials. An RFQ contains the materials and services, quantities and delivery dates, so that the suppliers can provide their prices and a vendor or multiple vendors can be selected. If a vendor is blocked, the VVVV solution will disallow issuance of an RFQ. In the case of emergency purchase orders, no requisitions or RFQ’s are required.
The Invitation to Bid process starts with the buyer and or purchasing agent running a report on outstanding/open requisition(s) that need to be sourced. The buyer will then assign a source of supply. If the source of supply is already pre-determined (existing contract, fixed source, etc), the buyer will proceed with the creation of the contract or purchase order as applicable.
For all those requisitions where multiple sources are available and the expected value exceeds $5,000, a RFQ will be created in the system with reference to the requisition. For all those items under $5,000, the buyer will search for a source of supply in the system and then generate a purchase order or contract as needed, but must document 3 phone-quotes within the purchase order for those greater than $1,500.
On the RFQ, all the additional information that is needed is maintained before sending it to the vendors (specifications, special requirements, bid due date, etc). Once the RFQ is finished, it is sent to the vendors according to the output method specified on the vendor master. The responses are received back from the vendors and the prices and conditions are entered into the system as a quotation. Once all the quotations are maintained, the price comparison function is performed with quotes listed from lowest to highest in a report that will act as the tab sheet. The prices are compared and vendor preferences are calculated. These preferences are weighted based on the preference (i.e., FFFF or Recycling Vendor). Once the preferences have been factored, the buyer determines the awarded vendor or multiple vendors per line item or for the entire quote.
The following functions will be available to facilitate the RFQ process:
· Extract requirement details from source document (requisition/shopping cart)
· Vendor selection based upon commodity
· Vendor selection and de-selection functions in addition to source list recommendations
· Use of bid opening dates and submission deadlines
· Public Invitation functions (i.e., SCBO)
· Restricted Invitation functions (i.e., e-mailed solicitations)
· Template / Copy functions
· Notes & Attachment functions
· Query Functions
· Ability to aggregate multiple requirements into a single bid invitation
· Ability to modify and update bidding requirements for resubmission
In addition to automatic document conversion, purchasing will provide additional inputs to define and complete required parameters relative to the bid invitation (e.g., opening date, submission deadline, partner selection).
Document Output Medium
Bid requirements will be published to prospective bidders through one of the following delivery mediums:
· US Mail
· e-Mail
· Fax
· FFFF Website
· FFFF Business Opportunities
Document Type and Numbering Requirements:
Special document types will be used to define bid invitation documents in the VVVV solution. The following document types will be created to reflect FFFF Procurement Code’s methods for solicitation and meet FFFF’ reporting needs:
- Request for Quotation (RFQ)
- Competitive Sealed Bids
- Competitive Best Value Bids
- Competitive Fixed Price Bids
- Competitive Sealed Proposals (RFP)
- Small Purchases
The document numbers will be assigned internally by the system from a predefined number interval.
The exhibits below show, at a high level, how the sourcing sub-processes are integrated as part of the overall Invitation to Bid and Source Selection process.

Exhibit 3.2.2-1 Overall Invitation to Bid Process

Exhibit 3.2.2-2 Continuation of Overall Invitation to Bid Process

Exhibit 3.2.2-3 Continuation of Overall Invitation to Bid Process
Process Scenarios
Bid Responses
Central and Fonds Purchasing will have the ability to analyze and process bid responses by utilizing functions available in the VVVV solution. These functions will not be made available to the general user community. The following functions will be available to facilitate the process:
· Analyze and compare bid offers from vendors
· Generate bid tabulation detail
· Convert open bids into a reverse auction
· Notify bidders of reverse auction conversion
· Accept or decline bid offers on-line
· Notify bidders of sourcing decision
Standard correspondence templates will be used for both bid acceptance and rejection notices. Official universal language for notification will be developed and approved by FFFF’ legal advisors and made available to the development team for inclusion in e-mail. The intent of the bid acceptance notification is to convey FFFF’ binding intent to accept the terms (price and delivery) of the vendor’s approved bid. Message prompts for justification documentation will be required based on the type of solicitation being conducted.
Document Type and Numbering Requirements
Standard document types will be used to define bid documents in the VVVV solution. The document numbers will be assigned internally by the system from a predefined number interval.
Sole Source
When items are determined to be sole source, a special RFQ with a specific document type is created (Approval strategy to be determined by fonds). This document will contain the written price and commodity quotation needed from the vendor. The RFQ can be sent to the vendor by the buyer via e-mail and then uploaded into the VVVV solution though the use of standard forms. If the vendor does not have e-mail capabilities then the form will be sent manually and the information will be manually updated into the VVVV solution. After the document has been completed it will be routed for approval to the fonds head or designee. If a sole source RFQ is not approved by the fonds head or designee, the buyer will then have to create a non-sole source RFQ document with the regular sourcing procedure being followed. If the sole source is approved, the RFQ is sent to the sole source vendor to gather their pricing information and then the quotation is maintained. From there, the contract or purchase order is created.
Off-Contract Sourcing (Procurement Code § 11-35-310(35))
If contract items are sourced off-contract, a special RFQ with a different document type will be created. This occurs if an item can be secured from a vendor at a price of at least 10% less than the contract price. The buyer must give the vendor with the contract an opportunity to meet the new price. Thus, the RFQ will be sent to the contract vendor in order to get their quotation. Once the price is received, the buyer will make the final decision to award, the quotation is maintained, and the purchase order or contract will be generated.
Formal Bids
Requests over $25,000 for any supply or service are bid via the formal bidding process. Formal bids must be advertised within SCBO or other electronic means approved by General Services to allow public access of the information.
Publishing the Bid Information
A transaction will be created in order to generate the bid reference number or collective number of the bid to be published. The buyer will be required to enter the bid general description, user id, purchasing group, contact information and estimated bid closing date. Once they have input all this information, the system will generate a collective number for them. This collective number and general description of the solicitation are then posted on the current website using an upload process.
A query will exist for searching collective numbers. This will be used in cases where the buyer has forgotten their collective number, or to see how many collective numbers have not yet been processed.
The bidders that respond indicating their intention to bid are then sent a Request for Quote. Vendors will register, maintain their intent to bid, and maintain the commodities they can provide. For bidders who wish to receive a Request for Quote and are not on the VVVV solution database, a form will be filled in by the buyer or vendor and sent to the Central Vendor Management organization so that the new vendor can be created. The bids are received and opened on the bid opening date. When bids are opened the quotation is maintained by the buyer in the VVVV solution and then the price comparison function is performed in order to generate the tab sheet. The prices are compared and vendor preferences are calculated. These preferences are weighted based on the preference (i.e. FFFF or Recycling Vendor). This sheet is then printed and signed by the appropriate parties.
Reverse Auctions (Procurement Code § 11-35-1529)
Central and Fonds Purchasing will have the ability to create reverse auctions by utilizing functions available in the VVVV solution. These functions will not be made available to the general user community and will be the responsibility of purchasing. The following functions will be available to facilitate the process:
· Vendor selection based upon commodity
· Establish rules
· Define opening and end dates
· Restricted Invitation functions
· Public Invitation functions
· Real Time bidding activity
· Notes & Attachment functions
· Query Functions
Where auction has been initiated as a result of a sourcing request, purchasing should notify the responsible fonds of the auction event. The decision to initiate an auction event however remains solely at the discretion of purchasing.
Document Type and Numbering Requirements
Standard document types will be used to define auction documents in the VVVV solution. The document numbers will be assigned internally by the system from a predefined number interval.
Note: Document heading functions will be available for users to define specific naming conventions for auctioning documents at their discretion. These headings may be used as a source of reference for future query or reporting needs.
Tabular Sheets
Within the VVVV solution, there is a price comparison function that will be used as the tab sheet. The price is compared from all quotations received and is ordered from lowest to highest. Tab sheets must be archived for retrieval based on the number of years dictated by the FFFF Archives and History Retention schedule. The bid tab can be reviewed on-line at any time when approving a contract or purchase order. Also, this tab sheet can be re-run at any point in time if required. Preferences (Resident Vendor, US Manufactured, FFFF Manufactured, Recycled) will be considered at this point of the process. It will be determined during the Realization phase if the handling of preferences will be done in the VVVV solution or outside the solution in a manual process. The person listed as the creator of the bid tab will act as the approver. There will be reason codes for the award maintained on the tab sheet as well. The selected vendor will receive a notification of the award via the purchase order or contract. The VVVV solution can be set up to automatically send rejection letters to the non-awarded vendors after the contract or purchase order has been approved. These letters will contain information referencing the awarded vendor.
Business Benefits
The following business benefits resulted from the new business process and workshop discussions:
· ITMO and MMO will have accurate reporting on dollars spent against FFFF contract for those funds using the VVVV solution
· Electronic storage and retrieval of the bid solicitation document
· Bid solicitation information is available to anyone in the organization with the proper security
· Audit trail of all bid solicitation and quotation processes available in real time
· Automated bid tabulation and recommendation on all quotations
· Auctioning
- Drive costs down
- Shorten cycle time
- Pre-qualification of vendors and commodities
- Better variety and quality of vendors
- Possibly fewer protests
- Better quality solicitations
- Better buyer/vendor communications
- Streamline vendor’s process
Additional benefits that were not identified in workshops includes:
· Standard Request for Quote - A standard request for quote will ensure that all funds are bidding in the same manner and make bids easier to compare
· Standard Terms & Conditions - This will provide a quicker approval process
· Common Vendor database - All funds will be able to see vendors that other funds have used to purchase like items. Data such as minority certification will be visible to all funds
· Better visibility of purchasing information - This will help to provide better sourcing which will lower prices and increase availability of vendors to all funds
· Wider dissemination of bids - This will help to lower costs and help small and disadvantaged businesses
Business Requirements
Each form of bid solicitation was evaluated during the workshops conducted. The following are the business requirements that were identified during workshops that were conducted with the VVVV team and fonds representatives:
Exhibit 3.2.2-4 Invitation to Bid Requirements
Requirement
Solution Capability
Competitive Sealed Bids (Procurement Code § 11-35-1520)
The VVVV solution will provide standard RFQ procurement functionality to satisfy this requirement. An RFQ/solicitation document will be created within the VVVV solution from an approved purchase requisition. The solution will provide the ability to capture texts, attach documents, and capture solicitation - specific details. All solicitation methods will be integrated into the recommended Central Procurement Portal for communication with vendors. Note - Pending the outcome of open item # 729, there will be 2 possible scenarios for solicitation document creation. If FFFF acquires and implements SRM Document Builder then solicitation documentation (e.g. standard terms and conditions) will be constructed within the solution. If not, then the RFQ will only be used as a tracking tool and all documentation will need to be prepared outside of the solution and attached to the RFQ.
Competitive Best Value Bids (Procurement Code § 11-35-1528)
Same as Competitive Sealed Bids.
Competitive Fixed Price Bids (Procurement Code § 11-35-1525)
Same as Competitive Sealed Bids.
Competitive Sealed Proposals (Procurement Code § 11-35-1530)
Same as Competitive Sealed Bids.
Small Purchases (Procurement Code § 11-35-1550)
Same as Competitive Sealed Bids. For items not requiring a formal solicitation a purchase requisition can be converted into purchase order without an RFQ. In these cases the standard VVVV purchase order process will apply.
Sole Source
The VVVV solution will provide the ability to create a special Purchase Order coded as sole source. This will allow reporting of all FFFF sole source procurement activity. Written determinations, approvals, and other documentation will be attached to the purchase order.
Emergency
The VVVV solution will provide the ability to create a unique Purchase Order coded as emergency. This will allow reporting of all FFFF emergency procurement activity. Written determinations, approvals, and other documentation will be attached to the purchase order. Funds availability check will not apply to this order type.
Exemptions
The VVVV solution standard procurement process will apply to exemptions. The exemption number will be required on the purchase order.
FFFFwide, Term and Fonds Contract
The VVVV solution will provide the ability for FFFFwide, Term, Multi-fonds and Fonds Contracts. See Purchase Order and Contracts for details.
Solicitation Issuance and Tracking:
RFP Section # 6.4.3
The VVVV solution will provide the ability to track and issue solicitations. Part of the recommended solution is to include a Central Procurement Portal. All solicitations would be posted on this portal for vendor access. The solution will also provide the capability to receive and transmit solicitations electronically. All documentation required during the solicitation creation and/or modification will be attached to the RFQ document in the solution. Note - Pending the outcome of open item # 729, there will be 2 possible scenarios for solicitation document creation. If FFFF acquires and implements SRM Document Builder then solicitation documentation (e.g. standard terms and conditions) will be constructed within the solution. If not, then the RFQ will only be used as a tracking tool and all documentation will need to be prepared outside of the solution and attached to the RFQ.
Cancel a solicitation or award
The VVVV solution will provide the ability for all solicitations to be cancelled. The corresponding RFQ would be cancelled and supporting documentation removed from the Central Procurement Portal if required. Any subsequent documents required to notify vendors of the status will either be communicated via email or the procurement portal.

The following are specific tasks to be performed with each business requirement above:
· Competitive Sealed Bids (Procurement Code § 11-35-1520)
- Create Invitation for bids at FFFF and fonds levels
- Require an approved requisition
- Ability to capture specifications within text fields
- Ability to attach documentation such as drawings and specifications
- Ability to check for an existing FFFF or fonds contract
- Ability for large volume purchase override
- Time limit and opening date for bid submission (opening date & time)
- Advertise solicitation (such as FFFF Business Opportunities) via e-mail
- Standard terms and conditions are required across funds
· Competitive Best Value Bids (Procurement Code § 11-35-1528)
- Needs justification document for condition for use
- Weight evaluation criteria (Price evaluated with at least 60% of Total)
- Must submit criteria and weighted percentages to vendor as per Procurement Code
- Standard terms and conditions are required across funds
- Time limit and opening date for bid submission (opening date & time)
- Advertise solicitation (such as FFFF Business Opportunities) via e-mail
· Competitive Fixed Price Bids (Procurement Code § 11-35-1525)
- Needs justification document for condition for use
- Multiple awards
- Standard terms and conditions are required across funds
- Time limit and opening date for bid submission (opening date & time)
- Advertise solicitation (such as FFFF Business Opportunities) via e-mail
· Competitive Sealed Proposals (Procurement Code § 11-35-1530)
- Needs justification document for condition for use
- Need ability to attach documentation for drawings and specification (sometimes large)
- Standard terms and conditions are required across funds
- Time limit and opening date for bid submission (opening date & time)
- Advertise solicitation (such as FFFF Business Opportunities) via e-mail
· Small Purchases (Procurement Code § 11-35-1550)
- <=$1,500 Purchases
o Price is fair and reasonable (no competition is required, though it is encouraged)
o Purchases awarded equitably among qualified suppliers
- >$1,500 <=$5,000
o Minimum of 3 verbal or written quotes requested and documented
o Vendor selection - lowest responsive and responsible bidder
- >$5,001 <=$10,000
o Minimum of 3 written quotes requested and documented
o Vendor selection - lowest responsive and responsible bidder
o Bid opening/closing dates required
- >$10,001 <=$25,000
o Minimum of 3 Written Request for Quotation
o Vendor Selection –Award to lowest responsive and responsible bidder
o SCBO Advertisement Documented
o Bid Opening/Closing Dates Required
· Sole Source
- Written determination prepared and approved by authorized official
- Approved purchase requisition
- Transaction reported to MMO
- Flag the purchase order as sole source
- No $ cap
· Emergency
- Written determination prepared and approved by authorized official
- Competition, as practicable was sought
- Transaction reported to MMO in a standard report
- No $ cap
- Requisitions may or may not be created, depending on type/level of emergency
- Lack of funds should not stop the creation of a purchase requisition or purchase order
· Exemptions
- Competition might not be required
- Reference to FFFF exemption number and other requirements by MMO and ITMO
- Requisitions are not required by all funds
· FFFFwide, Term and Fonds Contract
- Purchase requisition required
- Purchase order required
In addition to FFFF Procurement Code’s Methods for solicitation, the VVVV solution will provide the following capabilities to help buyers make source determinations:
· Source List
- Pre-determined source for a material or service
- Buyer cannot use any other source of supply but the ones maintained on the source list
- Source lists are maintained by material/service code at the fonds level
- Fonds material/service group will maintain source lists
· Source lists can be used for the following:
- For defining a vendor or contract as a fixed source of supply
- For defining a vendor as a blocked source of supply. For example, a particular contract or vendor may not be used for a certain period of time.
· Source Lists contain the following data:
- Material number
- Vendor number
- Contract number
- Validity period
· Information Record
- Master data that contains information for a given material and vendor
- Store particular conditions or specific data related to that vendor
- Maintained at the fonds level and purchasing organization level
- Available for viewing by all funds if the security is granted
- Info records can be created automatically or maintained manually
· Info Records contain the following data:
- Material/Service number
- Vendor number
- Specific vendor information (conditions, vendor material number, etc)
- Fonds
- Purchasing organization
· Requirements for Solicitation Issuance and Tracking:
- Justification Capability – All listed in Finality of Determination (Procurement Code § 11-35-2410)
- Electronically send solicitations and receive bids
- Print and send solicitations via mail
- Document all amendments to solicitation
- Scan all documents related to the official file for a bid solicitation
- Flag, track, and report on sole source and emergency procurements
- Electronic record of vendors who were sent solicitations and submitted bids
- Freight to be included in the award process
- Capture FFFF vendor preference
- FFFFment of award
- FFFFment of Intent to Award for awards over $50,000
- Line item awards
- Vendors should be purged after 2 years of inactivity
- Uniform vendor registration process across all funds
· Bidding consideration for a large number of line items
- Create and update quotation in a timely manner
- Utilize vendor websites for quotation creation
· In case of protest of an award or the need to cancel a solicitation or award, the system should have ability to perform the following:
- Notice of protest
- Suspension of award
- ReinFFFFment of award
- Rejection of bid (19-445-2065)
- Cancellation of bid or proposal (Procurement Code § 11-35-1710)
- Withdrawal of Bids; Cancellation of award (Procurement Code § 11-35-1520, R 19-445-2070, R 19-445-2085)
Reporting
The VVVV solution will provide the following ways to report on Materials Management functionality:
· Standard reports that are delivered as part of the SAP software
· Customized reports per the reporting requirements defined in this Blueprint
· Ad-hoc query capabilities for select users
Standard reports will be available in the VVVV solution. The SAP ECC 5.0 and the SAP BW components of the VVVV solution will provide standard delivered reports and info cube structures for Materials Management. Reporting access in the VVVV solution will be profile driven, allowing access only to authorized users. As “User” profiles are developed for security roles it will be determined what reports are applicable to certain job functions and will be assigned to the security role as required.
A complete list of all Materials Management reports can be found in the Reporting Strategy component of the Technical section of this document.
No reporting requirements have been identified for Invitations to Bid.
Workflow
No workflow requirements have been identified for Invitation to Bid.
Imaging
Imaging requirements have been identified for the documents that impact the Invitation to Bid processes. Imaging within invitation to bid refers to the scanning and capturing of information that is required to be maintained to support the sourcing of goods and services. The following table identifies the types of documents and information to be included in the imaging process and the point in the process to which the imaging activities would generally occur.
Exhibit 3.2.2-5 Invitations to Bid Imaging Integration Points
Scanned Documentation
Approval Process
Imaging Integration Point
Solicitation (Terms &Conditions)
No
Fonds personnel would attach the Terms and Conditions documentation to the solicitation (RFQ) in the VVVV solution. This document will be attached to the RFQ before issuance to prospective vendors.
Vendor/End User Correspondence (e-mails, faxes)
No
Fonds personnel would attach the correspondence documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open.
Evaluation Score sheets
No
Fonds personnel would attach the evaluation score sheets documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open. This document will be used to support the selection of a vendor.
Conflict of Interest
No
Fonds personnel would attach the conflict of interest documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open.
Tabulation of Bid Opening
No
Fonds personnel would attach the bid opening documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open. This document will be used to support the selection of a vendor.
Attendance Roster
No
Fonds personnel would attach the bid opening documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open.
Memo for Records (Non-Responsive, etc.)
No
Fonds personnel would attach the memo for record documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open.
FFFFment of Award/Intent to Award
No
Fonds personnel would attach FFFFment/intent to award documentation to the solicitation (RFQ) in the VVVV solution. This document will be attached to the RFQ after all vendor responses have been received and evaluated and a selection made.
Determination of Responsibility
No
Fonds personnel would attach the determination of responsibility documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ at any time that the RFQ is open.
Bid Responses
No
Fonds personnel would attach the bid response documentation to the solicitation (RFQ) in the VVVV solution. This document can be attached to the RFQ after it has been created and issued to prospective vendors.
Protest Documentation
No
Protest documentation received from the vendor will be attached to the RFQ once it is received. Once this documentation is received and imaged, the RFQ can be blocked from contract or purchase order creation.

User Roles
Based on the business processes supporting invitation to bid, the following standard roles have been identified.
Exhibit 3.2.2-6 Invitations to Bid Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that the changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
FFFF Buyer
FFFF Buyer will be responsible for creating, changing and deleting solicitations in the VVVV solution for FFFFwide, Term, multi-fonds, and fonds contracts. They will process purchase requisitions that are assigned to MMO/ITMO. They will identify whether existing FFFFwide and Term contracts or whether new contracts need to be established can satisfy these requisitions. They will be responsible for the overall bid solicitation process. In addition, they will manage functions Contract creation and maintenance described in the purchase order and contract section of this document.
Fonds Buyer
The Fonds Buyer will be responsible for creating, changing and deleting solicitations in the VVVV solution for fonds contracts. They will process purchase requisitions that are assigned to their fonds. They will identify whether these requisitions can be satisfied by existing contracts or whether new contracts need to be established. They will be responsible for the overall bid solicitation process. In addition they will manage functions for purchase order and contract creation and maintenance described in the purchase order and contract section of this document.
Online Vendor
The Online Vendor will be associated with vendors who register through FFFF Procurement Portal. They will maintain their personal details online, such as name, address and commodities. They will be able to participate in online bidding and online solicitation submittal.
FFFF RFQ Display
FFFF RFQ Display will have the ability to display and report on all solicitations (RFQ’s) FFFFwide.

1.2.3 Purchase Orders and Contracts
Objective
This section will describe FFFF’ business process requirements for establishing legal procurement relationships with vendors. The VVVV solution will provide an integrated solution to automate the process of taking a requisition through the procurement cycle. The goal is to streamline and provide and efficient process to manage legally binding procurement documents in one centralized system. The procurement process will be integrated with Finance and Inventory Management functions to allow FFFF real-time automatic posting of accounting documents and material receipts from vendors.
Process Definition
Overview
This section describes the future FFFF for the purchase order functionality that is used for a variety of procurement purposes. FFFF procures materials for direct consumption and for inventory. The procurement tool for supplies and services will be via purchase orders, or via contracts, in the case of MMO and ITMO. Furthermore, funds will have the ability to request vendors to provide shipping notification and/or order acknowledgement.
FFFF purchasing is carried out using external sources (i.e., a vendor supplies a material or performs a service) and internal sources (i.e., materials are procured from FFFF warehouse and from other funds). The activities following purchase orders (such as the receipt of goods or services and invoices) are logged, enabling the monitoring of the complete procurement process.
“Contracts” will refer to long-term arrangements with suppliers for specific materials and/or service purchases, with defined start and end dates and/or defined quantities or $ values. FFFF process for generating a material or service contract in the VVVV solution will generally reference an approved requisition and/or RFQ/quotation. The contract process will put greater capabilities into the hands of the fonds and MMO/ITMO purchasing personnel to enter into strategic relationships with suppliers for the procurement of materials and services.
Purchasing Process
With the exception of emergency purchase orders, the process begins with the assignment of a vendor to the purchasing request. There are two options on how the assignment can occur:
· A source of supply (vendor, contract, info record) is assigned to the purchase requisition. The purchase requisition is converted into a purchase order.
· A purchase order is created with reference to the awarded quotation.
The VVVV solution allows for attachments and/or standard text from the quotation and/or requisition to be copied into the purchase order. Some examples of these would include FFFFments of work, terms & conditions and specifications.
This process comprises the creation of the purchase order. The next step is the purchase order approval.
FFFF uses the following purchase order types:
· Standard Purchase Order for all supplies and services that do not fall into the categories below. Most likely, these purchases have been bid.
· Service Purchase Order for all orders that utilize the service master.
· Blanket Purchase Orders are evaluated for purchasing services and supplies. Funds will retain the ability to create blanket orders for the purchase of materials to be delivered throughout the fiscal year, e.g. forms, gasoline, food, and incontinent undergarments. (R19-445-2100)
· Release Orders are used for purchase against FFFFwide or fonds contracts.
· Sole Source Purchase Orders are utilized to order materials from a sole source vendor. Justification will be required to be attached to the electronic purchase order in the system.
· Emergency Purchase Orders are primarily created in the system after the order is placed with the vendor verbally or by fax. The emergency purchase order created in the VVVV solution is transmitted to the vendor even though the vendor may have been given the purchase order number. The purchase order may be created or completed after the service/supply or the invoice is received. Its sole purpose is to capture the emergency purchase and to automate the process. The justification of the emergency must be attached to the electronic purchase order document.
Message prompts for justification documentation will be required based on the type of purchase order being created.
To effect a change to a purchase order, the original purchase order is changed accordingly. The VVVV solution will maintain data that details the changes made by date, person responsible for making the change, etc. This functionality will be utilized when there is a need to track changes to a purchase order or if a purchase is audited. In the event the vendor needs to be formally notified of the change, the changes will be sent to the vendor via the same output as the original purchase order.
Adding line items or quantity increases must be initiated through a requisition (amendment or modification), as the supervisor and budget holder must approve the change of the materials/service. All changes to the financial coding on a purchase order (e.g. Fund, Fund Center, GL Account), needs to also go back through the requisition so that it can be rerouted back through the approval process and the budget holder. All other changes (e.g. price changes, material description, terms & conditions) may occur on the purchase order document. Price changes will be subject to a determined threshold that has yet to be determined. If the price change exceeds the threshold, the document must then be re-submitted for approval.
Assets
It has been recommended that the identification of an asset be completed as early in the process as possible. Thus, it is incumbent of the requisitioner to identify an item as an asset (per FFFF’s definition) and notify the Asset Custodian who will create an asset master record with the appropriate information. Once the asset master record is completed, the asset custodian will notify the requisitioner. The requisitioner will add the Asset Master Record Number to the requisition and continue its creation. Refer to Finance – Asset Accounting section of this document for further details on the asset process.
Accounting
Released purchase orders will automatically create a funds encumbrance in the VVVV solution. Open purchase orders that are cancelled will automatically reverse the encumbrance for open items not received.
Document Type and Numbering Requirements
Purchase order and contract numbers will be internally assigned by the system from a predefined number range.
Document Output Medium
Purchase orders will be sent to vendors via one of the following output mediums as defined in the ven­dor master record:
· FAX
· E-mail
· Print
· US Mail
The standard VVVV purchase order document will be used as a template for transmitting purchase order documents. No custom changes to the document templates will be made except to include FFFF logo or Fonds logos and standard processing instructions or language as required by FFFF.
Note: Open items from the Department of Mental Health Pilot implementation, which relate to the purchase order print program will also be taken into consideration.
Order Acknowledgements
Order acknowledgements will be forwarded to the requestor by the vendor as required and indicated in the purchasing document instructions.
Advance Ship Notifications
Advanced Ship Notifications (ASN) will be forwarded to the requestor by the vendor, as required, and indicated in the purchasing document instructions. ASN will continue to be received outside of the VVVV solution (via fax or e-mail) and will not be electronically interfaced.
Change Orders/Modifications
Users requiring changes to open purchase orders must notify purchasing of change order requirements. Purchasing officials will carry out all changes to purchasing documents. Only open purchase orders may be changed insofar as they have not been fully received or invoices posted. Change orders that exceed authorization levels of the highest approver will require approval. The system will utilize version controls and capture a history of all changes made to original purchasing documents. Change orders will be transmitted to vendors by the medium described in the vendor master record.
FFFF requires that change orders and version control documents be available upon request. These requirements will be handled through change history reports that reflect dates and content of previous purchase order revisions.
Approval Process
The approval process is triggered through the creation of a purchase requisition. Once the bid process has been completed and an award has been made, the purchase order is created utilizing the system generated request for quote. The appropriate buyer will save the purchase order, and a copy of the order will be sent to the vendor. The vendor will then send an order acknowledgement. Once the order has been released, the delivery of goods and initiation of service may begin except for the emergency purchase order process.
There have been funds that have expressed the need to have additional purchase order release strategies. The additional approval steps will be discussed and documented during each fonds rollout. The release strategies will be configured during the rollout.
The exhibits below show, at a high level, how purchase orders will be created. The emergency purchase order process has also been included due to its unique process requirements.
Exhibit 3.2.3-1 Purchase Order Creation Process
Exhibit 3.2.3-2 Emergency Purchase Order Creation Process
Purchasing Card Process
The Purchasing Card (P-Card) may be used for various types of purchases. It is being used as a procurement and payment tool today. The expansion of the P-Card program is an initiative of FFFF only if FFFF can be assured that historical reporting and 1099 requirements are met. Thus, various types of purchases, such as utilities and subscriptions, will be examined for approval across all funds as the program expands.
Depending on the fonds levels of approval, cardholders can purchases materials under $1,500 utilizing the P-Card without having to create a purchase requisition. For items greater than $1,500, a purchase requisition and purchase order will be required.
All purchases will be reported through the contractor’s proprietary software. Today, the contractor is Bank of America and the proprietary software is EAGLS. The P-Card liaison at each fonds reviews purchases made with the P-Card, assigns the appropriate budgetary information, and creates reports of the monthly charges.
It is recommended by Capgemini that the liaison be responsible for adding not only the appropriate budgetary information but also the NIGP commodity code and purchase order if the item is greater than $1,500. Once this information has been added to the P-Card transaction, the transaction is triggered to be uploaded into the VVVV solution as an invoice. The upload of P-Card transaction data will require an interface between the VVVV solution and the P-Card vendor software. The frequency of this upload has yet to be determined, but it is recommended that this occur nightly.
The upload into the VVVV solution will result in an invoice that is created with the credit card contractor as the vendor. The types of information that will be uploaded are the following:
· Card holder
· Vendor
· Dollar amount
· Budget information
· NIGP Commodity Code
· Purchase order (if purchase > $1,500)
The exhibits below show, at a high level, how the P-Card will be integrated and utilized within the procurement process.
Exhibit 3.2.3-3 P-Card Integration with Procurement Process
Exhibit 3.2.3-4 Continuation of P-Card Integration with Procurement Process
Exhibit 3.2.3-5 Continuation of P-Card Integration with Procurement Process
Contracts Process
In general, a contract will be created only for supplies and services that come from the bidding process.
Once the awarded vendor is selected, the contract is created with reference to the awarded quotation. This will copy all the information already existing on the quotation, like FFFFment and scope of work, the terms and conditions, all the items or services ordered, the prices and quantities for each of them, etc.
When creating the contract with reference to the quotation, all or some line items depending on the type of award may be copied. When multi-award contracts are required, several contracts will be created, one for each awarded vendor. Only selected line items are required for each vendor. The process will be repeated when selecting the second quotation of the next multi-award vendor.
When creating a non-multiple award contract, the buyer will reference the quotation of the selected vendor and copy all line items to generate the contract. After the contract is saved, it is automatically routed for approvals.
When the approval process is complete, the contract is released and it can then be transmitted to the awarded vendor. The contract will be sent to the vendor by one of the following methods:
· Fax
· E-mail
· Print out (hard copy)
The method for transmitting the contract to the vendor will be automatic or manual depending on the vendor capabilities.
After the contract is sent to the vendor, release orders (purchase orders) need to be created against it by each Fonds utilizing the VVVV solution. School districts and counties will be able to utilize FFFF and Term contracts via other means in order to receive the supplies or services contained on the contract.
At any point in time, the contract can be monitored to determine the amount or quantity left on the contract, the total expenditures to date, total of purchase orders created against it, total of goods and services received against it and also the total amount of invoices paid against it.
There are also a number of standard reports available that can provide different information on contract status.
Here is a sample of some of the standard reports that can be generated in the VVVV solution:
· Total quantity order against contract
· Total value order against contract
· Contracts by vendor
· Contracts by material/service group
· Contracts by purchasing group (buyer or group of buyers)
· Contracts by material/service number
· Purchase orders created against contract
· List of expiring contracts
The following section describes the future FFFF of the contracting process for FFFF.
Outline Agreements
The VVVV solution provides different types of contracts. Those that are value and quantity are generally known as outline agreements. Both types of contracts are going to be used by FFFF when ordering services and supplies.
Once a contract is created, whether it is a quantity or a value contract, release orders (purchase orders) need to be generated against it when the goods or services need to be delivered or performed by the vendor for which the contract is created. The receipts are made against the release orders (purchase orders); therefore, the receiving activity cannot be performed against a contract. Contracts will not be encumbered since the release orders against them will be encumbered.
Most contracts will not have account assignments specified since the release order will require these account assignments during creation.
The structure of a contract consists of items defining the individual materials or services with prices and, in many cases, quantities. A contract determines the relationship between FFFF and the selected or awarded vendor designated at the end of the bidding process; therefore, there will be one contract per awarded vendor. So, in those cases where a multiple award is made, there will be multiple contracts created in the VVVV solution. Each one will correspond to one vendor and will contain only those items awarded to that particular vendor.
Here is a general explanation regarding the different types of contracts:
Quantity Contracts
FFFF will use this type of contract if the total quantity to be ordered during the validity period of the contract is known in advance. The contract is regarded as fulfilled when release orders (purchase orders) totaling the contract total quantity have been issued. At any point in time, we can monitor the contract completion against the total quantity specified on it.
Examples of quantity contracts could be a FFFFwide contract for vehicles initiated by MMO or a local fonds contract for units of a cleaning service at a particular location.
Value Contracts
FFFF will use this type of contract if the total quantity of all release orders (purchase orders) issued against the contract is not to exceed a certain predefined value. The contract is regarded as fulfilled when release orders (purchase orders) totaling the predefined value in the contract have been issued. At any point in time, the contract can be monitored for completion against the total value on it.
Examples of value contracts could be a FFFFwide or Term contract for information technology services or a local fonds contract for landscaping services.
All contracts can be monitored against their expiration date at any time. Therefore, reports can be run listing all contracts that are expiring on a certain date.
FFFFwide and Term Contract
FFFFwide contracts can be created as either value or quantity contracts. These contracts will not relate to a particular plant (fonds), since the entire FFFF will be able to order against them. The particular plant (fonds) will not be specified until the release order (purchase order) is created against the contract.
Multi-Fonds Contracts
Multi-Fonds contracts can be created as either value or quantity contracts. These contracts will be created by ITMO/MMO to support a requirement from multiple funds. A purchase requisition will be required to initiate the solicitation process. After contract creation, the related funds will be able to create release orders (purchase order) against the contract.
Fonds-Wide Contracts
In those cases in which an fonds negotiates a contract for which the entire fonds will be able to order goods or services against it, a value or quantity contract will also be created. Funds will specify the fonds code on the contract at the time of creation. The usage restriction against fonds-wide contracts will be resolved with the security team.
Local Contracts
Contracts for goods and services for a particular location will be handled using “Blanket Orders”. A blanket order (Framework Order) is a purchase order with a validity period. The purchase order will look like a contract and no further releases (purchase orders) will need to be created against it.
Contract Changes
The authorized users can change (or amend) a contract at any point in time. Depending on the type of change, dollar amount, quantity, prices, etc. the contract may or may not go back for approval. For example, if there are price increases, validity period changes, quantity increases, or text changes, the contract will be routed automatically to the same approver levels defined for contract creation. After the appropriate approvals have been obtained, the contract will be ready for printout or electronic transmission to the vendor.
Change orders or version control documents are not generated in the system. Once the contract is changed, the current version (latest version) is the only version available for printout.
FFFF requires that change orders and version control documents be available upon request. These requirements will be handled through change history reports that reflect dates and content of previous purchase order revisions.
Approvals
Once the contract is created and saved it will automatically be routed for the appropriate approvals depending on whether it is a service contract or a supplies contract and if it is an fonds, FFFFwide, or term contract.
If the contract has a combination of services and supplies, the creator of the contract can specify, via a special item category, which purchase (supply or service) is more predominant and should be used to determine the approvals.
Approvers will receive a message in their “inbox”. From there they will select the message and go directly into the approval screen. Once in the approval screen they can drilldown and see all the details of the contract that they need to approve.
Once the first workflow approver approves the contract, the workflow will route it to the next approver, which will need to perform the same activity as the first reviewer and so on, until all the approvals are made.
Conditions
Conditions are used in contracts to indicate vendor discounts or surcharges that may be applicable during the validity period of the contract. Conditions can be created at the header level and, therefore, will be applicable to every line item of the contract or can be specified individually at the line item level.
Conditions can also be specified as a percentage or as a fixed value. In general, conditions for contracts will be copied from the selected vendor quotation. But if needed, they can also be entered directly into the contract.
Taxes will be calculated automatically based on FFFF’s tax definition. FFFF sales and use tax rates will be loaded into the system and conditions will calculate the applicable tax amount per line item on the purchase order or contract. Tax rates will be maintained in the VVVV solution and no third party software will be utilized. At the time of invoice receipt the sales tax amount on the invoice will be entered into the system for matching purposes. In the cases where there is no purchasing document to match an invoice, the tax amount on the invoice will be entered with no match. (FFFF Department of Revenue, FFFF Sales and Use Tax Publication #3 and Form ST-431).
Shipping and handling will be the responsibility of the buyer to negotiate. If it is known, it will be added to the purchase order. If it is unknown, it will be added at invoice creation.
The exhibits below show, at a high level, how contracts will be created and utilized within the procurement process.
Exhibit 3.2.3-6 Contract Creation Process

Exhibit 3.2.3-7 Contract Creation Central

Benefits
· Eliminates multiple contract numbers (fonds level) associated with same fonds term contract
· Have all FFFF contract expenditures captured in system, so FFFF knows what is being purchased and how much
· Automate existing manual processes
· Avoid relying on vendor data for FFFF contract purchase reporting
· Encumbrance of correct funding string at requisition level will create process efficiency
· Process streamlined by having electronic repository of documents grouped by functional area (imaging)
· Imaging eliminates need for storage space of paper documents
· Purchasing documents can be routed to anyone in the system through release strategies and can be routed to more than one person for any one function (example: more than one budget holder)
· Release strategies can be based on a variety of values (ex. Role, $ level, commodity level)
· Purchase requisition provides single point of entry
· E-Procurement
- Greater efficiency through use of a single procurement system/web site
- Accurate contract usage reporting
- Leverage FFFF contracts for more commodities
- Possibly consolidate the function of the SCBO system
· P-Card
- Convenience
- Reduced processing time
- Encumbrance occurs at time of posting to account
- Immediate transaction and receipt of goods
Additional benefits that were not identified in workshops includes:
· Ability to search for any contract real-time
· Ability to search for FFFFment and scope of work for previous contracts
· One contract per vendor (one-to-one relationship)
Recommendations
The following is a list of recommendations that have been developed through the Business Blueprint process. Recommendations that are a product of the workshops have been provided and agreed upon by the VVVV Workshop Team and are noted as such.
Exhibit 3.2.3-8 Purchase Order & Contract Recommendations
Recommendation
Made By
Follow Up
Encumber funds with a purchase order when using contracts that do not have funding codes
VVVV Workshop Team
The VVVV solution will provide the ability for contracts to have no funds availability checking. All purchase orders released against these contracts will encumber funds upon release.
Encumbrance Tracking
· Need to be able to add or change budget authority
· If change is needed in funding, the requisition should go back to the budget holder for approval
· No access into the system without adequate training
· Allow small fonds personnel to release budget and procure materials

VVVV Workshop Team
The VVVV solution will require that changes for funding be sent back to the budget holder for approval. The changes will be made at the requisition and rerouted through workflow for approval.
Adequate training will be provided to ensure that the users are knowledgeable of the process and any new coding structures that may be implemented.
Small fonds personnel that fill dual roles will have the ability through security roles, to have access to different functions. However this will ultimately be determined by internal audit requirements for segregation of duties.
Direct Payment, Direct Requisition and Direct Purchase Order methods need to be considered - policies and procedures will govern these methods
VVVV Workshop Team
The VVVV Workshop Team recommends that a requisition be utilized at all times for purchases (not including p-card transactions) and the standard procurement process be followed. If during implementation, it is determined that a process can be more efficient and still meet reporting needs, then the team will address the needs for utilizing direct payment or direct purchase order.
Assets will be created as early as possible in the procurement process.
Capgemini
The Capgemini Team recommends that it is best business practice to create the asset master record before or at the same time as the purchase requisition. See Asset Accounting section of this document.
The P-Card liaison responsible for coding transactions will enter budgetary information and NIGP Commodity Code.
Capgemini
The Capgemini Team recommends that the P-Card liaison enter NIGP commodity code information for each P-Card transaction. This will provide FFFF accurate reporting on P-Card spend by commodity code by fonds.
The P-Card data load from the bank be loaded into the VVVV solution on a daily basis.
Capgemini
The Capgemini Team recommends that the data feed for P-Card transactions be loaded into the VVVV solution on a nightly basis. This will be determined by the banks ability to provide the data. This will provide timely encumbrance of funds and better reporting capabilities.

Business Requirements
The following business requirements were identified during the workshops conducted with the VVVV team and fonds representatives:
Exhibit 3.2.3-9 Purchase Order & Contract Requirements
Requirement
Solution Capability
Procurement Master Data
RFP Section # 6.4.1
The VVVV solution will provide unique purchase order types to be able to capture activity and report against sole source and emergency purchases. Minority vendor activity will be captured vie the minority business indicator on the vendor master record.
It is recommended that the VVVV solution provide a Central Procurement Portal for vendors to be able to access their profile data to make changes as necessary. (See Master Data section of this document)
Fonds Purchase Order Fields (see list below)
The VVVV solution will provide the ability to capture all Fonds procurement for the fields listed below. Data for these fields will be captured in the following VVVV documents: Purchase Order, Vendor Master, Material Master, Purchase Requisition, Purchase Order and Contract.
Purchase Order Types (see list below)
RFP Section # 6.4.1
The VVVV solution will be configured to provide varying types of purchase orders. The list can be found in the “Purchase Order Type” section listed below.
Contract Issuance and Administration
The VVVV solution will provide the ability for Contracts to be established with no funds management requirements. All release orders against a contract will contain the funds details. The solution will allow for multi-term contracts or purchase orders to carry forward funds to the next fiscal year. See Funds Management section of this document for further details.
Contract Creation
RFP Section # 6.4, 6.2.16
The VVVV solution will provide the ability to manage all aspects of contracts. See details above for the different contract types and functions the solution will provide.
Central Contracts
RFP Section # 6.4, 6.2.16
The VVVV solution will provide the ability to manage all aspects of contracts. See details above for the different contract types and functions the solution will provide.
Procurement Card
The VVVV solution will provide the ability to accurately report on the P-Card spend. See details above on future P-Card processes. For P-Card transaction of type sole source or emergency, it will be required that a purchase order of that type be created to support the transaction and provide accurate reporting. In the case of P-Card purchases for assets, the current FFFF policy does not allow this.
Encumbrance Tracking
RFP Section #6.2.8
The VVVV solution will provide the ability for contracts to be established with no funds management requirements. All release orders against a contract will contain the funds details. The solution will allow for multi-term contracts or purchase orders to carry forward funds to the next fiscal year. See Funds Management section of this document for further details.
Miscellaneous Purchasing/Services
The VVVV solution will provide the ability for valid quotes that have been submitted by the requisitioner to be attached as documents to the requisition. This has been identified as an imaging requirement in the Purchase Requisitions section of this document.
Procurement Workflow and Reporting
See Reports section for list of required reports.
E-Procurement and Communications
RFP Section # 6.4.1, 6.4.3
A recommendation has been provided that the VVVV solution provides a Central Procurement Portal. This will enable vendors the ability to register online, retrieve solicitations, submit bids and maintain their profile data. The portal will also contain a listing of the most up-to-date FFFFwide and Term contracts. The system will provide full search capabilities and the ability to transmit procurement documentation through email and fax.

The following are specific tasks to be performed with each business requirement above:
· Procurement Master Data
- Identify sole source, emergency, minority vendor purchases
- Allow vendor to add/change information
· Fonds Purchase Order Required Fields
- Material Number
- Item Description
- Short Text
- Large Text Attachments
- Quantity
- Price
- Unit of Measure
- Delivery Date
- Payment Terms
- Vendor Name
- Vendor Address
- Vendor Number
- Ship To
- Deliver To
- Remit Address and contact
- Receiver Notes
- Payables Notes
- Internal Notes
- Header Description of PO
- Material Group / Commodity
- PO Type
- Deliver-to Person
- Accounting Information
- Cost Center
- General Ledger
- Fund
- Fund Center
- Contract Dollar Limit
- Contract Limit Notifications
- Recycle Code Fields
- Exemption Number Fields
- Contract Reference Number
- Contract Start and End Date
- Subrecipient Vendor Field
· Purchase Order Type
- Standard Purchase Orders
- Sole Source
- Exemption
- Emergency
- Trade-in
- Direct Expenditure Invoice
- Blanket POs
- Services
- Unauthorized POs
- Confirming POs
· Contract (Issuance and Administration)
- Ability to establish contracts without funding codes (Fonds, ITMO and MMO)
- Ability to release funds and roll to the next year on multi-term contracts
- Ability to have IT approval for IT purchases built into the process, preferably at the front-end or as a release strategy
· Contract Creation
- Unique contract number
- Quantity/value based without guarantee of purchase by FFFF
- Scheduling agreement, goods/services
- Basic terms and conditions
- Special conditions
- Specifications
- MMO 136 for Inter-fonds contracts
- Encumber upon purchase order release referencing contract
- Ability to block/delete/add items
- Documentation of change order
- Quantity, price, scheduling conflict
- Release strategy for change orders
- Terms
o 1-5 yrs w/o Board approval
o 5-7 yrs – GS Director approval
o >7 yrs – B&CB approval
· Central Contracts
- Ability to capture purchases from FFFFwide and term contracts
- Ability to capture all expenditures from FFFFwide and term contracts
- Ability to have scheduling agreement at FFFF contract level
- Notification of contracts that other funds have established
- Ability to capture tiered pricing on contracts
· Procurement Card
- Encumber P-card funds (as soon as possible)
- Efficient/low cost means of small purchase
- Accurate reporting
- Minority business spend
- Gathering commodity codes
- Sole Source, if >$1,500
- Emergency, if > $1,500
- Transaction level reporting, if possible
- Fixed Assets, if approved
· Encumbrance Tracking
- When using contracts with no funding codes, ability to encumber funds with the purchase order
- Create purchase requisitions in system without accounting details such as a holding account with zero balance. Need to go to budget owner for approval.
- Need process to make an award without a loaded budget prior to July 1st. Large federally-funded contracts might begin July 1 and the money has been promised but not yet been received
- All funds must be budgeted in FFFF fiscal year (authority to spend)
- Create FFFFment of award document without creating a purchase order
· Miscellaneous Purchasing/Services
- Validate quotes obtained by the requisitioner (signature)
- Internal requisitions (in some form)
· Procurement Workflow and Reporting
- Add to the required reports: certified minority business; negotiated savings; interfonds (MMO136)
· E-Procurement and Communications
- A single web site for procurement function with up-to-date information
- On-line vendor registration in a central location
- Vendor search capability including available products
- Punch-out functionality to vendor’s products in one location
- Notification to funds when new contracts are added and up-to-date prices and terms
- Ability for creator of contract to make and track changes
- Capability to download solicitations from one central location
- Communication including ability to fax, print, and e-mail
Reporting
The VVVV solution will provide the following ways to report on Materials Management functionality:
· Standard reports that are delivered as part of the SAP software
· Customized reports per the reporting requirements defined in this Blueprint
· Ad-hoc query capabilities for select users
Standard reports will be available in the VVVV solution. The SAP ECC 5.0 and the SAP BW components of the VVVV solution will provide standard delivered reports and info cube structures for Materials Management. Reporting access in the VVVV solution will be profile driven, allowing access only to authorized users. As “User” profiles are developed for security roles it will be determined what reports are applicable to certain job functions and will be assigned to the security role as required.
The following is a list of the Purchase Order and Contract Reports identified during the workshops.
Exhibit 3.2.3-10 Purchase Order & Contract Reporting Needs
Report Name
Description
Standard Report/ InfoCube
Aging Purchase Orders (Management Report)
This report will list purchase orders that have open receipts and/or invoices outside of a specified time frame.
InfoCube – Purchasing Data
Minority Progress Report (Required by Procurement Code)
This report will list business activity against minority vendor by commodity, quantity, value, date and location.
Custom report or InfoCube
Sole Source
This report will list sole source procurement activity by vendor, commodity, quantity, value, date and location.
InfoCube – Purchasing data
Emergency
This report will list emergency procurement activity by vendor, commodity, quantity, value, date and location.
InfoCube – Purchasing data
Trade-Ins
This report will list all trade-ins by commodity, vendor, date, quantity, value, description, serial number and new cost.
Custom report or InfoCube
Recyclable
This report will list all procurement activity for all commodities that are flagged as recyclable.
Custom report or InfoCube
Preferences
This report will list all procurement activity for all FFFF preference vendors and show value difference with preference applied and not applied.
Custom report or InfoCube
Monthly Purchases by Buyer (Management Report)
This report will list all procurement activity per month per buyer code or grouping of buyer codes by commodity, quantity, value and location.
InfoCube – Purchasing groups
Lease Expenditures
This report will list all procurement activity for leases by commodity, quantity, date, value and location.
Custom report or InfoCube
Contract Expiration Report
This report will list all purchase contracts that will expire within a specified time range by contract number, vendor, commodity, date and location.
Custom Report or InfoCube. Will be based on standard InfoCube – Purchasing Data
WIP Purchase Order by buyer (Management Report)
This report will list all purchase orders assigned to a buyer that are still open and in progress by buyer code, purchase order number, commodity, quantity and date.
Standard Report – List Display of Purchase Orders
InfoCube – Purchasing Data
Processing Time Report (Management Report)
This report will list the processing time to take a purchase requisition through the full procurement cycle to invoice completion by document type by location.
Custom Report or InfoCube to be developed. 3 Standard InfoCubes exist which could provide basis for customization.
InfoCube – Service Level Purchase Orders
InfoCube – Service Level Purchase Order Qty
InfoCube - Service Level Purchase Order Items
Value Purchase Orders
This report will list value purchase orders and/or contracts to show remaining $ value left on the document by vendor, PO and/or contract number, by location.
InfoCube – Purchasing data
Offshore Vendor Activity
This report will list all procurement activity by offshore vendor, commodity, quantity, date, value and location.
Custom Report or InfoCube. Will be based on standard InfoCube – Purchasing Data
Vendor Contract Report
This report will list all contract procurement activity by vendor, contract number, commodity, quantity, date, value and location.
InfoCube – Purchasing data
Federal Fonds Reports
This report will list all procurement activity that has a Federal funding source by vendor, funding source, commodity, quantity, value, date and location.
Custom report or InfoCube
Vendor Compliance Reports
This report will list all compliance activity for vendors based on vendor evaluation criteria in the procurement documents.
InfoCube – Vendor evaluation
InfoCube – Vendor evaluation data
Unauthorized Purchasing
This report will list all unauthorized procurement activity by buyer, vendor, commodity, quantity, value, date and location.
Custom Report or InfoCube. Will be based on standard InfoCube – Purchasing Data
Certified Minority Business
This report will list all vendors that are a certified minority business by vendor name and minority business type.
Custom Report or InfoCube
Negotiated Savings
This report will list the negotiated savings for all contract and purchase order negotiations by buyer, vendor, commodity, value, date and location.
Custom Report or InfoCube
Interfonds (MMO136)
This report will list all procurement activity between funds which requires the completion of a MMO136 form by fonds, commodity, date, quantity and value.
Custom Report or InfoCube
Ad–hoc query capability
This is the ability to execute generic queries against procurement transactions within the system.
All available InfoCubes

InfoCubes represent predefined sets of data that will be accessible for authorized users from the VVVV Business Warehouse. The InfoCubes contain information that is transferred from the production system into a repository on a predefined basis. The cubes are standard cubes within the solution and will be reviewed by the project team to confirm applicability for the specific functional reporting need as identified above.
Exhibit 3.2.3-11 Purchase Order & Contract InfoCubes
InfoCube Name
Purpose/Description
Purchasing Groups
This InfoCube enables you to analyze the buying activities of your purchasing (buyer) groups. Data on effective order values, invoiced amounts, and number of deliveries is available to you for this purpose. Furthermore, you can obtain an overview of how many documents, document items, and (if applicable) document schedule lines have been created by the purchasing group.
Purchasing Data
This InfoCube enables you to carry out analyses of material groups, vendors, and materials. This data enables you to find answers to the following questions, for example: "Which materials and how much of each have been ordered from a certain vendor?" "How many PO items are there for a certain material group?"
Vendor Evaluation
This InfoCube enables you to display the scores from the vendor evaluation facility within Purchasing. On the basis of this data, you can compare your vendors with each other and also check whether a certain vendor delivers a material punctually and in the desired quantity for example. Since the scores from the previous period are available in addition to the current score, you can also check whether your vendors' performance is improving or deteriorating.
Vendor Evaluation Data
This InfoCube enables you to display the scores from the vendor evaluation facility within Purchasing and thus compare your vendors with each other. Since the scores from the previous period are available in addition to the current score, you can also check whether your vendors' performance is improving or deteriorating.
Service Level - Purchase Orders
This Cube enables you to evaluate the service level on the level of purchase orders. You can thus analyze, for example, the total number of purchase orders for the share of the purchase orders delivered late.
Service Level - Purchase Order Items
This Cube enables you to evaluate the service level on the level of purchase order items. You can thus analyze, for example, the total number of purchase items for the share of the purchase order items delivered late.
Service Level - Purchase Order Quantities
This Cube enables you to evaluate the service level on the level of purchase order quantities. You can thus analyze, for example, the entire purchase order quantity for the share of the purchase order quantities delivered late.

Workflow
The system shall provide the ability to create various approval strategies based on combinations of different criteria such as, dollar value, commodity type or funding source. Workflow will be used to electronically route requisitions to different individuals/positions for approval and ultimately onto a buyer for processing. General workflow requirements have been determined insofar as their degree of relevance to all funds across FFFF.
Below are the identified Workflow Opportunities that resulted from workshop activities that include fonds representatives and the VVVV team:
· Purchase requisition approval
· Contract renewals (Time Driven)
· Purchase order approval
· Funding changes & Re-Distribution
· New contract creation
· Mismatch invoice notification
· Material master creation (NIGP)
· P-Card usage
· Advanced delivery notification
· Late delivery notification
· Damaged receipt notification
Imaging
Imaging requirements have been identified for the documents that impact the Purchase Order and Contract processes. Imaging within Purchase Orders and Contracts refers to the scanning and capturing of information that is required to be maintained to support the procurement of goods and services. The following table identifies the types of documents and information to be included in the imaging process and the point in the process to which the imaging activities would generally occur.
Exhibit 3.2.3-12 Purchase Order & Contract Imaging Integration Points
Scanned Documentation
Approval Process
Imaging Integration Point
Business Associated Agreement
No
Fonds personnel would attach the documentation to the purchase order or contract. This document will be attached to the purchase order or contract upon creation.
Confidentiality Forms
No
Fonds personnel would attach the confidentiality forms documentation to the purchase order or contract. This document will be attached to the purchase order or contract upon creation.
Scope of Work/Specs
No
Fonds personnel would attach the scope of work/specs documentation to the purchase order or contract. This document will be attached to the purchase order or contract upon creation.
List of SSNs for meals/housing
No
Fonds personnel would attach the list of SSN’s documentation to the purchase order or contract. This document will be attached to the purchase order or contract upon creation.
Written Acknowledgement for Vehicle Shipment
Yes
Fonds personnel would attach the documentation to the purchase order or contract. This document will be attached to the purchase order or contract upon creation. This document will be attached to the requisition upon creation before the requisition is workflowed for approval.
Signed Contract Document
No
Fonds personnel would attach the original signed contract documentation to the purchase order or contract. This document will be attached to the purchase order or contract upon creation. This document will represent the original signed agreement between the vendor and FFFF.
Change Order/Modification
No
Fonds personnel would attach the change order/modification documentation to the purchase order or contract. This document will be attached to the purchase order or contract whenever a change or modification is put in place.

User Roles
Based on the business processes supporting Inventory Management, the following standard roles have been identified.
Exhibit 3.2.3-13 Purchase Order & Contract Standard User Roles
User Role
Description
Central Materials Management Configuration
The Central Materials Management Configuration users will maintain the configuration tables within the VVVV solution. They will be responsible for the creation, changing and deletion of any table entries as required. They will be responsible for ensuring that any configuration changes are coordinated with any other functional and technical requirements and that the changes are adequately tested before any migration into a production environment occurs. Funds will be responsible for providing their configuration requirements with appropriate justification to this group.
FFFF Buyer
FFFF Buyer will be responsible for creating, changing and deleting purchase orders and contracts in the VVVV solution for FFFFwide, Term and Multi-Fonds contracts. They will process purchase requisitions that are assigned to MMO/ITMO. They will create contracts after the solicitation has taken place. They will work in coordination with the Contract Administrators and Fonds Buyers to monitor contracts and compliance throughout the lifecycle of the procurement.
Fonds Buyer
The Fonds Buyer will be responsible for creating, changing and deleting purchase orders and contracts in the VVVV solution for Fonds contracts. They will process purchase requisitions that are assigned to their fonds. They will create purchase orders and contracts after the solicitation has taken place. They will work in coordination with the Contract Administrators to monitor contracts and compliance throughout the lifecycle of the procurement.
FFFF Contract Administrator
FFFF Contract Administrator will be responsible for managing all aspects of FFFFwide, Term, and Multi-Fonds Contracts after they have been established in the VVVV solution. They will be responsible for monitoring the vendor for compliance with the contract.
Fonds Contract Administrator
The Fonds Contract Administrator will be responsible for managing all aspects of Fonds Contracts after they have been established in the VVVV solution. They will be responsible for monitoring the vendor for compliance with the contract.
Fonds Purchase Order/Contract Display
The Fonds Purchase Order/Contract Display will have the ability to display and report on all purchase orders and contracts for their fonds.
FFFF Purchase Order/Contract Display
FFFF Purchase Order/Contract Display will have the ability to display and report on all purchase orders and contracts FFFFwide.