PROCUREMENT SERVICES DIVISION (PSD) “Providing products and services to our schools and offices in the most cost effec7ve manner.” (Minimizing the administra7ve effort and 7me required to receive the order) PSD Administra:on (Management and Support Staff) Materiel Purchasing and Management Contracts (Distribu:on (Procurement Center) Professionals)
Acquire goods and services Deliver, pick up Distribute materials u:lizing various and process and supplies ordered compe::ve interoffice and through District methods U.S. Mail. Distribu:on Center Print, graphic design and project management services of instruc:onal materials, and other Pick up and delivery of District publica:ons. salvage, equipment, dona:ons, etc. Pick up/deliver salvage equipment, student tes:ng/ instruc:onal Provide supplies, materials, and dona:ons furniture and equipment for classroom and office opera:ons. Administer the District’s P‐Card Program Provide food for the student breakfast/lunch Coordinate the program processing/distribu:on of workbooks, prepared instruc:onal material and inventory of excess Deliver pre‐plated textbooks. meals to cafeterias (including delivery Distribu:on of bulk Maintain a General to Newman food products and Stores and foods Nutri:on Center). pre‐plated meals distribu:on center directly to schools 1/7/11 2
Budge:ng for Student Achievement PSD Budget 85‐90% of total budget consist of salaries and benefits 395 total employees with less than 10% being General fund based Overhead Recovery* ‐ 47% Job Cost* ‐ 40% General Fund ‐ 9% Categorical* ‐ 2% Bond Fund* ‐ 1% P‐Card Rebate* ‐ 1% * No encroachment on General Fund. 1/7/11 3
Improvements Made in the Last Three Years Mail Unit Cost to District if we did not have a Mail Unit: $14 million per year
Improvements Made in the Last Three Years Mail Unit • Savings from: • Conver7ng first class to non‐profit ‐ $0.23 per le[er savings • Using a presort mailing house that comingles LAUSD with other organiza7ons – volume discounts • Specific savings: – Student Tes7ng $38,000 – Health Benefits $19,600 – Food Service $12,000 • New metering equipment savings: – $1.20 per piece of cer7fied mail – $24,756 per year in rental savings
Improvements Made in the Last Three Years Repro Unit • We print in‐house where most cost effec:ve • Review layouts and recommend more efficient methods • Saved on Parent Student Handbooks: $118,000 per year • Saved on Health Benefits: $202,000 per year • Use of non‐peak demand :me to print forms
On Line Shopping
On Line Shopping • Everything we carry in our Distribu:on Center can be purchased with our on‐line catalog • We are building links within this catalog to other vendors websites who offer us discounted prices based on our compe::vely awarded master contracts • We are adding other professional services ordering ability to our on‐line catalog
Improvements Made in the Last Three Years Consolida:ng “Like” Contracts • Support 25 private schools and 4 consor7ums with $29M worth of master contracts. • Combined 19 contracts for City‐Year. • Reduce M&O support contracts from over 100 to 15. • Food Service Strategic Master Contracts Ability to order off master contracts reduces procurement :me from months to weeks. Economy of scales save money per order. Contracts are compe::vely awarded.
Support of Green Resolu:on
LAUSD Surplus Property Program Launch end of FY 2011 Federal, State, and LAUSD Surplus Sites. 1/7/11 11
Suppor:ng All Employees • PSD University is a 7 course or 2 year program. This program provides onsite courses (Nego7a7ons, Advance Purchasing, Legal Aspects, Strategic Sourcing, Cost Es7ma7ng, Pricing, Basics) from UCLA Extension that leads to both a cer7ficate and cer7fica7on through Na7onal Contract Management Associa7on (NCMA). Presenta7on to employees 14 graduates. • School based training • Webinars and online training tools • Employee recogni7on 1/7/11 12
Improvements Underway • P‐Card – B‐card with higher limits and more control – Gas cards Faster – Less Admin Work‐ Quicker Payment Rebates can make the programs pay for themselves
Other Big Ticket Savings Ini7a7ves • Print Services – expected to save $millions • Bulk Contrac7ng Rebates – help to eliminate Procurement burden on General Fund. • Grants Advanced Contract Support • Consolida7on of func7ons with Facili7es Contracts
Ques7ons?
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