Facilities Institutional Value Analysis Committee

FACILITIES INSTITUTIONAL VALUE ANALYSIS COMMITTEE

Minutes – October 13, 2014

Present:

Theresa Carrig

Tito Nieves

Jamie Penner

Denise Parrish

Stjohn Sturton

Danny Allen

Jack Tarpley

Neil Hart

Nilesh Shah

Janell Faust

Danielle Grissom

Forklift/Material Handling Equipment/Rigging/Heavy Equipment

-Marcel mentions that currently for every type of material moving equipment, there is just a one off sourcing project. We would like to see if there are any opportunities to find one vendor/contract/solution to handle all of this.

-Currently working on forklifts. Tito reached out to Neal Cooper and found out that they just purchased a used forklift as an Ike Replacement, and is waiting to hear back from Lloyd Greenard. Marcel mentioned that they shared the forklift.

-Stjohn is currently working on forklifts for the warehouse, and is looking at leasing with maintenance included.

-Theresa states that we need to look at whether it makes sense to have one agreement for all types of material moving equipment, or if it would be better to have one for forklifts, one for rigging, etc.

-Marcel suggests getting a RFQ (or RFI) to see what companies can do, and what is feasible.

-Denise asks if we are looking for an agreement to provide service of equipment and be able to get one-off rentals. The idea would be to have one contract to handle it all.

-Janell asks if we would be having contractors move the materials or contractors. In Stjohn’s area, UTMB employees are moving the materials in the warehouse, where as other areas often use contractors to move heavy equipment.

-Purchasing has concerns about volume and if there is enough to work towards such a solution.

-Tito provides what Materials Management spent on maintenance in FY’14.

-To quantify further opportunities, Data Analytics will pull spend on vendors used for lifting services. Once we can see what the spend is on, with who, and for what, there may be overlap and opportunities for RFPs.

ACTION ITEM:

-Danny Allen will provide list of vendors to Data Analytics (Tito and Theresa).

-Data Analytics will pull the spend on the vendors provided by Danny and any other data that may apply

Blanket Orders/Grainger Opportunities

-Marcel wanted to discuss this because at one point he was told that the goal was to reduce Blanket Purchase Orders (BPO). If that is the case, he wants to see what the alternatives are.

-Marcel provides the example of auto parts. Fleet will leave to go to Auto Zone to pick up parts and pay for it, which is costing them times (and money) when they could use a BPO to just have the parts delivered. Is the solution a BPO, converting to Grainger, or something to save that time?

-Currently no one owns the relationship with Grainger since it is through the UT Alliance.

-The goal is to look at the BPO’s used and see if other agreements can be used, Grainger or not.

-Neil’s area uses BPO’s for services on certain things that are for service that will be performed regularly.

-The issue is not with those BPO for certain amounts (like those that are for maintenance done every month). The warehouse can’t receive some of these orders because the amount is not put in correctly.

-Jack asks what the correct way to use a BPO? He says the solution (whatever it is), is to remove the burden from the technical people to go through the purchasing process. Marcel provides the example of the mammography bus, in which a half day and 3 employees’ time was used to get the purchase/ordering process of service done correctly using a Pro-card. What are the other ways to do things besides using a Pro-card?

-Whatever solution we come to, has to provide transparency in the spend details. Denise mentions that Chase may be able to provide reporting on Pro-card spend.

-We agree to look at the BPO’s and see what Grainger may be able to handle.

Action Item:

-Data Analytics will work to get list of BPO’s currently being used.

Ceiling Tiles

-Currently no contract. We will have to find any vendors used from David Ketchen’s area.

-This will be only for maintenance/replacement. Nilesh shared that in construction, go off master plans.

-Similarily, Air Filters in David’s area will be researched further for next meeting.

New Opportunities/Open Discussion:

-Stjohn asks about paint and who we buy this from. We currently have an in house painting shop used for small projects, but we are not sure where the paint comes from.

-Nilesh suggests furniture because at most institutions they only have 1 vendor, but at UTMB each building seems to use a different vendor. The Business IVA is working on office supplies and that could potentially remove the furniture from that catalog. However, in anything we look into, we cannot get away from HUB dealers.

-Batteries: we need to determine what we spend. It is believed that not all areas are getting batteries from Material Management. Vehicle/Truck batteries come from fleet, while UPS batteries are in the service contract.

-Marcel mentions refrigerants. We currently purchase each in one offs. Could we get 1 contract company-wide that would include disposal as well?