The University of California System's Sustainability Policy says that "Environmentally Sustainable Purchasing underlies all other areas of sustainable practice..." Find out how UC's System-Wide Strategic Sourcing Organization is embedding sustainability into its business processes and helping the UC be a global leader in sustainability.
2. The Mission of UC Procurement is the Mission of the UC
Expand opportunities for teaching,
research and public service by
delivering savings and efficient
procurement services across the
University of California
Our Mission
7/23/2015 2
3. 1,993.1
953.7
324.8 287.2 236.0 228.6 209.0
368.0 419.0
68.2 82.9
278.1
411.3
563.2
634.7
Significant Opportunities in All Areas of Spend
7/23/2015 3Source: Spend Radar campus and US Bank PCard data Apr 2012 – Mar 2013
Health &
Welfare
Building &
Construction
Services
Financial &
Insurance
Services
Travel Healthcare
Services
Engineering
Services
Utilities Other
(<$200M
each)
Unclassified Food &
Dining
Services
Office
Supplies,
Express
Package &
Environments
MRO/
Facilities
IT &
Telecom
Professional
Services
Life
Sciences
Total $5B Annual Spend Total $2B Annual Spend
“Non-Traditional” Categories “Traditional” Categories
Actively managed by
UC Procurement Services
~230 professionals at
UCOP and 10 campuses
UC Annualized Spend in Millions
(Apr 2012 - Mar 2013)
$7+ billion in addressable annual spend supporting all aspects of
University operations, academia and research
4. 4
The story of strategic sourcing begins with a single
item…
5. 5
Strategic Sourcing at the UC…
Long before Critical Mass rides started in the early 1990s, an
earlier wave of ecology-minded folks cycled en masse through the
streets of Berkeley in an annual "Smog-Free Locomotion Day, this
one held February 28, 1971. – Source: FoundSF.org
6. 6
Berkeley: 35+
Davis: 34
Irvine: 16
LA: 20
Merced: 6
Riverside: 5
San Diego: 30+
Santa Barbara: 35
Santa Cruz: 22
San Francisco: 1
Total: 204
The UC is home to over 200 Student Sustainability
Organizations…
8. After Policy (2015)
METRICS
• 0.1 MW Renewable Energy
• 1 LEED certification
• Beg for $$ for energy
efficiency
Institutional Change
• No discussion of GHGs
• 1 sustainability FTE
• No sustainability language in
purchasing contracts
METRICS
• 17 MW Renewable Energy
• 191 LEED certifications
• Regents approved $240 million
energy efficiency program; saved
$140 million
Institutional Change
• ACUPCC Founding Signatories
• 39 sustainability FTEs
• Sustainability language/metrics
in all RFPs/Contracts/Quarterly
Reviews
Before Policy (2004)
Sustainability at the UC…
9. “Environmentally preferable purchasing
underlies and enables all other areas of
sustainable practice in this policy.”
-University of California Policy on
Sustainable Practices
9
Green Building Design
Clean Energy
Climate Protection
Sustainable Transportation
Sustainable Building Operations
Recycling and Waste Management
Sustainable Foodsevices
Sustainable Water Systems
10. • Sustainability Purchasing Working Group
– Created by the Sustainability Steering Committee
– Proposes amendments to policy
– Coordinates implementation of policy
– Shares best practices and creates economies of scale for system-wide
initiatives.
• Global Climate Leadership Council
– Created in 2014 to support Carbon Neutrality Initiative
– Supports UC goal of achieving carbon neutrality by 2025
• Sustainable and Nutritious Food Procurement
– Part of the operations committee of the Global Food Initiative
– Supports the achievement of UC Sustainability goals for food services.
– Promotes best practices across the UC and Higher Education.
10
Procurement and Sustainability are Natural Partners…
11. 11
Ideas often come to us as independent project ideas…
These Stirling freezers use
a lot less energy, can we
get a system-wide
agreement?
What if we ONLY bought
refillable pens?
The heat pumps that we
put on our modular
buildings have gotten a lot
more efficient – could we
replace them?
What if every vehicle we
bought was alternative fuel?
Hybrid? Electric? What if
every employee could by a
hybrid or electric at a
discounted price?
• How do we estimate the impact?
• How do these align with our goals?
• I’m working on all of these other projects and now you want me
to work on this too?
Aquaponics!
12. Process Standards
ISO
International Organization for Standardization
12
Leveraging processes and product standards allows
high impact SCALABLE sustainable practice…
• Sustainability in Building
Construction
• Earth Moving Machinery
• Sustainability in Buildings and
Civil Engineering Works
• Event Sustainability and
Management Systems
• Social Responsibility
• Information Technology
Product Standards
Accepted under the UC Sustainability Policy
13. 1. Be supplied by 100%
Renewable Energy
2. Create Zero Waste
3. Sell products that sustain
people and the environment
13
Wal-Mart has moved environmental sustainability to
the core of it’s business…
Source: corporate.Walmart.com
14. How can the UC Procurement
put sustainability at the core
of what it does?
14
15. 1. Aligning with the 3 key Presidential Sustainability Initiatives:
– Zero Waste by 2020
– Carbon Neutrality by 2025
– Global Food Initiative
2. Embed sustainability into the core of our business process
3. Deliver results that allow us to purchase more sustainable
products and services more sustainably
15
UC Procurement can put Sustainability at its core by…
16. 16
1. Align with 3 key Presidential Sustainability Initiatives…
Zero Waste by 2020
Divert 95% of municipal solid waste from
landfill by 2020
• Reduce consumption of goods.
• Reduce packaging
• Convert packaging to recyclable and
reusable materials.
• Reduce the cost of procuring recyclable
and compostable products
Carbon Neutrality by 2025
Make the UC the first major research
University to achieve carbon neutrality.
• Reduce the cost of renewable energy
• Introduce products that reduce energy
consumption and carbon emissions
• Introduce supply chain practices that
reduce the number vehicles traveling to
and from our campuses.
Global Food Initiative
Improve food security, health and
sustainability at UC – our campuses,
medical centers and national labs – and
through California, the U.S. and the world
• Reduce the cost of sustainable food
• Increase the transparency of our food
supply chain
• Share best practices within Higher
Education and Industry
17. 17
2. Embed Sustainability Into Our Core Business Process
The 7-step Strategic Sourcing Methodology consistently and efficiently guides high value
procurement outcomes.
•Supplier
Evaluation
Criteria Matrix
•RFI (optional)
•Fact Based
Negotiation Package
•Sourcing Award
Recommendation
•Updated Business
Case
7.0 Implement
New Agreement
6.0 Negotiate &
Develop
Strategic
Sourcing
Recommen-
dation
5.0 Conduct
Competitive
Exercise
4.0 Identify
Minimum
Requirements &
Evaluation
Criteria
3.0 Develop
Category/Sub-
Category
Strategy
2.0 Develop
Category/Sub-
Category Profile
1.0 Develop
Strategic Sourcing
Project Work Plan
1.1 Mobilize
Project Team
1.2 Conduct
Project Kick-
Off
1.3 Finalize
Project Plan
2.1 Conduct
Internal
Analysis
2.2 Conduct
Industry
Analysis
3.1 Develop
Sub-Category
Opportunity
Baseline
3.2 Develop
To-Be Process
Flow
3.3 Develop &
Summarize
Category
Strategy
2.3 Build TCO
Model
4.1 Finalize
Supplier
Evaluation
Criteria
4.2 Develop
Scoring
Document
4.3 Conduct
Supplier
Analysis
5.1 Develop
Tender
Document
5.2 Distribute
Tender
Document
6.1 Finalize
Fact-Based
Negotiation
6.2 Plan and
Conduct Fact-
Based
Negotiation
6.3 Develop &
Recommend
Sourcing
Decision
5.3 Evaluate &
Score Tender
Document
7.1 Develop
Category
Savings
Summary
7.2 Develop
Implementatio
n Plan
7.3 Deploy
Contract
Campus-Wide
•Internal Profile
•TCO Model
•Baseline TCO
•As-Is Process Flow
•External Profile
•Cost Reduction
Ideas
•Preliminary
Business Case
•Sourcing Project
Work Plan
•Kick-Off Meeting &
Presentation
•Category/Sub
-Category
Strategy
•Business Case
•Market Solicitation
Documents
•Evaluated
Responses
•Short List of Top
Suppliers
•Implementation
Plan
•Communication
Plan
•Supplier
Performance
Management
Approach
KeyOutputs
18. 18
2. Embed Sustainability Into Our Core Business Process
The 7-step Strategic Sourcing Methodology consistently and efficiently guides high value
procurement outcomes.
•Supplier
Evaluation
Criteria Matrix
•RFI (optional)
•Fact Based
Negotiation Package
•Sourcing Award
Recommendation
•Updated Business
Case
7.0 Implement
New Agreement
6.0 Negotiate &
Develop
Strategic
Sourcing
Recommen-
dation
5.0 Conduct
Competitive
Exercise
4.0 Identify
Minimum
Requirements &
Evaluation
Criteria
3.0 Develop
Category/Sub-
Category
Strategy
2.0 Develop
Category/Sub-
Category Profile
1.0 Develop
Strategic Sourcing
Project Work Plan
1.1 Mobilize
Project Team
1.2 Conduct
Project Kick-
Off
1.3 Finalize
Project Plan
2.1 Conduct
Internal
Analysis
2.2 Conduct
Industry
Analysis
3.1 Develop
Sub-Category
Opportunity
Baseline
3.2 Develop
To-Be Process
Flow
3.3 Develop &
Summarize
Category
Strategy
2.3 Build TCO
Model
4.1 Finalize
Supplier
Evaluation
Criteria
4.2 Develop
Scoring
Document
4.3 Conduct
Supplier
Analysis
5.1 Develop
Tender
Document
5.2 Distribute
Tender
Document
6.1 Finalize
Fact-Based
Negotiation
6.2 Plan and
Conduct Fact-
Based
Negotiation
6.3 Develop &
Recommend
Sourcing
Decision
5.3 Evaluate &
Score Tender
Document
7.1 Develop
Category
Savings
Summary
7.2 Develop
Implementatio
n Plan
7.3 Deploy
Contract
Campus-Wide
•Internal Profile
•TCO Model
•Baseline TCO
•As-Is Process Flow
•External Profile
•Cost Reduction
Ideas
•Preliminary
Business Case
•Sourcing Project
Work Plan
•Kick-Off Meeting &
Presentation
•Category/Sub
-Category
Strategy
•Business Case
•Market Solicitation
Documents
•Evaluated
Responses
•Short List of Top
Suppliers
•Implementation
Plan
•Communication
Plan
•Supplier
Performance
Management
Approach
KeyOutputs
Items in red require PLC approval
19. 19
2. Embed Sustainability Into Our Core Business Process
The 7-step Strategic Sourcing Methodology consistently and efficiently guides high value
procurement outcomes.
•Supplier
Evaluation
Criteria Matrix
•RFI (optional)
•Fact Based
Negotiation Package
•Sourcing Award
Recommendation
•Updated Business
Case
7.0 Implement
New Agreement
6.0 Negotiate &
Develop
Strategic
Sourcing
Recommen-
dation
5.0 Conduct
Competitive
Exercise
4.0 Identify
Minimum
Requirements &
Evaluation
Criteria
3.0 Develop
Category/Sub-
Category
Strategy
2.0 Develop
Category/Sub-
Category Profile
1.0 Develop
Strategic Sourcing
Project Work Plan
1.1 Mobilize
Project Team
1.2 Conduct
Project Kick-
Off
1.3 Finalize
Project Plan
2.1 Conduct
Internal
Analysis
2.2 Conduct
Industry
Analysis
3.1 Develop
Sub-Category
Opportunity
Baseline
3.2 Develop
To-Be Process
Flow
3.3 Develop &
Summarize
Category
Strategy
2.3 Build TCO
Model
4.1 Finalize
Supplier
Evaluation
Criteria
4.2 Develop
Scoring
Document
4.3 Conduct
Supplier
Analysis
5.1 Develop
Tender
Document
5.2 Distribute
Tender
Document
6.1 Finalize
Fact-Based
Negotiation
6.2 Plan and
Conduct Fact-
Based
Negotiation
6.3 Develop &
Recommend
Sourcing
Decision
5.3 Evaluate &
Score Tender
Document
7.1 Develop
Category
Savings
Summary
7.2 Develop
Implementatio
n Plan
7.3 Deploy
Contract
Campus-Wide
•Internal Profile
•TCO Model
•Baseline TCO
•As-Is Process Flow
•External Profile
•Cost Reduction
Ideas
•Preliminary
Business Case
•Sourcing Project
Work Plan
•Kick-Off Meeting &
Presentation
•Category/Sub
-Category
Strategy
•Business Case
•Market Solicitation
Documents
•Evaluated
Responses
•Short List of Top
Suppliers
•Implementation
Plan
•Communication
Plan
•Supplier
Performance
Management
Approach
KeyOutputs
Items in red require PLC approval
Working with campus procurement and sustainability experts
to create a roster of sustainability subject matter experts for
specific categories.
Outcomes:
• Ensures that sustainable expertise is available and
incorporated into every initiative from the start.
• Helps to identify sustainable products, and sustainable
practices and how to evaluate them.
20. 20
2. Embed Sustainability Into Our Core Business Process
The 7-step Strategic Sourcing Methodology consistently and efficiently guides high value
procurement outcomes.
•Supplier
Evaluation
Criteria Matrix
•RFI (optional)
•Fact Based
Negotiation Package
•Sourcing Award
Recommendation
•Updated Business
Case
7.0 Implement
New Agreement
6.0 Negotiate &
Develop
Strategic
Sourcing
Recommen-
dation
5.0 Conduct
Competitive
Exercise
4.0 Identify
Minimum
Requirements &
Evaluation
Criteria
3.0 Develop
Category/Sub-
Category
Strategy
2.0 Develop
Category/Sub-
Category Profile
1.0 Develop
Strategic Sourcing
Project Work Plan
1.1 Mobilize
Project Team
1.2 Conduct
Project Kick-
Off
1.3 Finalize
Project Plan
2.1 Conduct
Internal
Analysis
2.2 Conduct
Industry
Analysis
3.1 Develop
Sub-Category
Opportunity
Baseline
3.2 Develop
To-Be Process
Flow
3.3 Develop &
Summarize
Category
Strategy
2.3 Build TCO
Model
4.1 Finalize
Supplier
Evaluation
Criteria
4.2 Develop
Scoring
Document
4.3 Conduct
Supplier
Analysis
5.1 Develop
Tender
Document
5.2 Distribute
Tender
Document
6.1 Finalize
Fact-Based
Negotiation
6.2 Plan and
Conduct Fact-
Based
Negotiation
6.3 Develop &
Recommend
Sourcing
Decision
5.3 Evaluate &
Score Tender
Document
7.1 Develop
Category
Savings
Summary
7.2 Develop
Implementatio
n Plan
7.3 Deploy
Contract
Campus-Wide
•Internal Profile
•TCO Model
•Baseline TCO
•As-Is Process Flow
•External Profile
•Cost Reduction
Ideas
•Preliminary
Business Case
•Sourcing Project
Work Plan
•Kick-Off Meeting &
Presentation
•Category/Sub
-Category
Strategy
•Business Case
•Market Solicitation
Documents
•Evaluated
Responses
•Short List of Top
Suppliers
•Implementation
Plan
•Communication
Plan
•Supplier
Performance
Management
Approach
KeyOutputs
Address sustainability strategies in Business Decision
documentation.
Outcomes:
• Ensures that we have explicitly considered, documented
and discussed sustainability impacts in system-wide
source decisions.
• Allows us to consider multiple sustainability attributes
beyond the selection of the specific product and its
pricing.
21. 21
2. Embed Sustainability Into Our Core Business Process
The 7-step Strategic Sourcing Methodology consistently and efficiently guides high value
procurement outcomes.
•Supplier
Evaluation
Criteria Matrix
•RFI (optional)
•Fact Based
Negotiation Package
•Sourcing Award
Recommendation
•Updated Business
Case
7.0 Implement
New Agreement
6.0 Negotiate &
Develop
Strategic
Sourcing
Recommen-
dation
5.0 Conduct
Competitive
Exercise
4.0 Identify
Minimum
Requirements &
Evaluation
Criteria
3.0 Develop
Category/Sub-
Category
Strategy
2.0 Develop
Category/Sub-
Category Profile
1.0 Develop
Strategic Sourcing
Project Work Plan
1.1 Mobilize
Project Team
1.2 Conduct
Project Kick-
Off
1.3 Finalize
Project Plan
2.1 Conduct
Internal
Analysis
2.2 Conduct
Industry
Analysis
3.1 Develop
Sub-Category
Opportunity
Baseline
3.2 Develop
To-Be Process
Flow
3.3 Develop &
Summarize
Category
Strategy
2.3 Build TCO
Model
4.1 Finalize
Supplier
Evaluation
Criteria
4.2 Develop
Scoring
Document
4.3 Conduct
Supplier
Analysis
5.1 Develop
Tender
Document
5.2 Distribute
Tender
Document
6.1 Finalize
Fact-Based
Negotiation
6.2 Plan and
Conduct Fact-
Based
Negotiation
6.3 Develop &
Recommend
Sourcing
Decision
5.3 Evaluate &
Score Tender
Document
7.1 Develop
Category
Savings
Summary
7.2 Develop
Implementatio
n Plan
7.3 Deploy
Contract
Campus-Wide
•Internal Profile
•TCO Model
•Baseline TCO
•As-Is Process Flow
•External Profile
•Cost Reduction
Ideas
•Preliminary
Business Case
•Sourcing Project
Work Plan
•Kick-Off Meeting &
Presentation
•Category/Sub
-Category
Strategy
•Business Case
•Market Solicitation
Documents
•Evaluated
Responses
•Short List of Top
Suppliers
•Implementation
Plan
•Communication
Plan
•Supplier
Performance
Management
Approach
KeyOutputs
Regularly consider sustainability in the supplier relationship
by evaluating product offerings and business practices.
Outcomes:
• Create an environment where it easy to identify and
purchase sustainable products.
• Collaboration with suppliers and the stakeholders to
continuously evaluate new sustainable products and
practices for implementation.
22. 1. Carbon Neutrality by 2025 Jeremy Meadows
Associate Director Strategic Sourcing
Facilities & MRO
2. Global Food Initiative Eric Pollack
Commodity Manager, Food Services
22
3. Deliver results that support more sustainable
purchase more sustainably
24. University of California Power Program Overview
– System-wide Solution for Direct Access Campuses
– Energy Service Provider
– Program complies with California Renewable Portfolio
Standards (RPS)
– Created to address UC’s system-wide climate neutral energy
policy objectives
24
25. The Objective and Acquisition Profile
• UCPP’s power supply portfolio and contribute to UC’s RPS obligations.
– UCPP’s annual direct access energy use is in the range of 260,000 MW/h
– Contract Length: 25 years
– Approximate Contract Value: $350,000,000 (25 years x 14MM)
– Projects located in CA
– Project with 20MW or greater nameplate capacity
– Minimum of 33% of our annual need
25
26. RFP Development/Timeline
• RFP Timeline
- RFP Open: July 18, 2014 4 PM
- Pre-bid Conference: July 22, 2014 2 PM
- Deadline to submit questions: July 24, 2014 2 PM
- RFP Closing: July 31, 2014 4 PM
- RFP Evaluation: July 31-Aug 9
- Apparent Awardee(s) Notification: August 13, 2014
• Contract – UC PPA (Based on PG&E RAM 5 PPA)
– Industry recognized standard
– Buyer friendly
• Technology - Supplier Registration and Sourcing
26
27. Project Overview
Five Points Solar Park
Site Summary
Size: 60 MWAC
Location: Five Points, Fresno County, CA
Solar Irradiance: 2,105 kWh/kW/year
(3Tier)
Point of Interconnection: On-Site/NP-15
Location Site Map
Future Site of the 60MW Five Points Solar Park Five Points, CA
27
28. Project Overview
Giffen Solar Park
Site Summary Location Site Map
Future Site of the 20MW Giffen Solar Park Cantua Creek, CA
Size: 20 MWAC
Location: Cantua Creek Fresno County,
CA
Solar Irradiance: 2,097 kWh/kW/year
(3Tier)
Point of Interconnection: Giffen
Substation On-Site/NP-15
28
29. GLOBAL FOOD INITIATIVE:
BUYING SUSTAINABLE AND NUTRITIOUS FOOD
Eric Pollack, Commodity Manager for Food
UC Procurement Case Study
31. Definitions of Sustainable Food & Non- Food Products
• Organic Produce
• Locally Grown Produce
• Locally Farmed and Organic Dairy
• Beef – Grass Fed and Locally Raised
• Poultry & Eggs – Cage Free – Range Free- Antibiotic Free
• All Natural - Groceries, Retail
• Compostable- Utensils , Cups , Napkins, Plates
• Recyclable Packaging
31
32. Past UC Dining Purchasing Practices
• No collaboration between campuses
• Each campus contract independently
• Did not leverage their volumes
32
33. Current Purchasing Practices
• Campus Dining Organization on 6 campuses participate in system-wide food
procurement programs.
• Consolidated and leveraging the UC & CSU purchasing volume of $75,000 million
annually.
• Awarded produce and master food distribution to a single regional vendor
West Central Produce – S. Cal Trinity Produce – N. Cal
Sysco -S. Cal PFG – N. Cal
Elimination of additional trucks on campuses
• More transparency to farmers and manufacturers
• We now have the ability to negotiate and contract directly with local farmers,
processors and national manufacturers for organic and all natural food and non-
food products at lower costs
33
34. Supplier Transparency and Reporting
• UC has total transparency & traceability to all growers
• In the UC agreement we require monthly sustainability impact
reports from our produce vendors.
• We are working toward obtaining the same reports from our
master distribution partners ( Sysco & Performance Food
Group)
• Reports are based on each campus definition of sustainable
local and organic offering
34
35. Defining Locally Grown Produce Across the UC
• University of California defines locally grown – 500 mile radius from
farm to campus
• UCSD – 250 miles radius - farm to campus
• UCR – 500 mile radius - farm to campus
• UCSB – 150 mile radius - farm to campus
• UCSC – 250 mile radius
• UC Merced – 250 mile radius
• UC Berkeley – 250 mile radius – farm to distributor to campus
35
36. University of California Locally and Organically Grown
CAMPUS Purchases of Locally & Organically Grown Produce
UC San Diego 55.25%
UC Riverside 38.85%
UC Santa Cruz 40%
UC Berkeley 35%
UC Merced 39%
UC Santa Barbra 54.8%
36
37. Annual Savings Due to UC & CSU Campuses
Collaboration
Programs Annual Savings
S. California Produce $985,000
N. California Produce $400,000
Master Distribution ( Sysco & PFG) $700,000
Total Annual Savings $2,085,000
37
38. Additional Food Sustainability Projects
• Dairy – Local dairy farms and processing
• Local sustainable poultry - Mary’s
• Other locally raised poultry
• Fresh sustainable seafood – Sea to Table
• Aquaponiclly grown produce – Viridis Aquaponics
• Sustainable proteins – Beef & Pork
38
39. What’s in a Can of Pineapple Tidbits?
39
DW 6# Brix 15 Malaysia
DW 6.25# Brix 15 Indonesia
1 ½ # More per case
40. More food in can = fewer cans bought and disposed of…
Annual Canned
(6/#10) Products
Purchases of 2,000
cases
Additional Can Wt. Benefit of
Additional Wt.
Avoided in
Disposing of
12,000 cans .25 # 750 #
125 cans
20+ cases
40
41. Summary
• Defining what foods are under sustainable category
• Get your campuses to collaborate
• Leverage your volume
• Transparency
• What’s in the can? Make sure that you get value
41
42. 1. Sustainability is at the core of UC Procurement’s Mission
2. UC Procurement is a vital partner in advancing the
sustainability agenda and is an underlying component of any
sustainability project.
3. The Strategic Sourcing Process provides a platform for
participation and collaboration to help the UC achieve its
mission and program goals.
42
In Conclusion…
43. “UC, like California, simply cannot afford to
stand still. If you’re standing still in
California, you’re falling behind. This is a
dynamic institution, and a dynamic state,
living together in a dynamic time.”
Janet Napolitano
University of California President
43
Notes de l'éditeur
“Force of Nature” profiled Wal-Marts sustainability efforts.