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Arizona’s Department of Administration was recently awarded the 2011 NIGP Innovation Award for its implementation of ProcureAZ.  In 2009, the state of Arizona realized the need for state procurement modernization and launched Periscope’s end-to-end BuySpeed eProcurement solution, calling their implementation ProcureAZ. 

ProcureAZ is truly innovative as its functionality supports all State of Arizona public bodies under a single statewide license.  Over 120 state agencies and over 450 local governments and schools were included in the first phase of ProcureAZ implementation, which included a single web-based portal for vendor registration, sourcing and contract/catalog ordering.  Phase I was a success, completed in less than 100 days.  This initial phase included loading 19 WSCA contracts plus over 2,000 Arizona-specific contracts with 80,000 line items.  The impact: a level playing field for all suppliers wishing to conduct business with the State of Arizona.

In October 2010, Arizona began the roll out of ProcureAZ Phase II.  Phase II provides full procurement/sourcing functionality and allows agencies to manage inventory, requisitions, purchase orders, receipts, solicitations, vendors, contracts, and business intelligence reports all in an on-demand solution.  All state agencies have successfully implemented Phase II on time and on budget.

The State of Arizona now hosts more than 3,200 catalogs and has over 19,000 registered vendors in ProcureAZ.  The State reduced costs 30% on statewide office supply contract.  Co-op participation has increased 44%, and both PO and requisition cycle times have decreased by nearly 50%.

In contrast with other state eProcurement implementations, ProcureAZ is provided by a single software solution and provider resulting in a substantially lower cost compared to other state solutions.

Click here to learn more about how the State of Arizona won the Innovation Award.

The state of Arizona’s new BuySpeed e-procurement system – dubbed ProcureAZ by the state – went live less than 100 days after the project was initiated with Austin-based Periscope Holdings, Inc.  Phase One of the project provides the state with a single portal for vendor registration, solicitation management and contract ordering.  It was successfully launched September 1, on time and within budget. 

Periscope’s BuySpeed staff pre-loaded 1,500 vendor registrations into ProcureAZ prior to August 10.  Since then, an additional 5,000 vendors registered using the system.  On September 1, Arizona agencies began creating orders from 2,500 pre-existing state contracts that were imported into the system by Periscope.  This phase is expected to dramatically improve operational efficiencies by reducing cycle times and curtailing “maverick”, or off-contract, spending allowing Arizona to better target savings through strategic supplier relationships.

“We want to thank the state of Arizona and our implementation partner, CGI, for a successful launch of the first phase of Arizona’s ProcureAZ solution,” says Brian Utley, CEO of Periscope Holdings. 

“The state of Arizona recognizes the major accomplishments of Periscope and CGI with the project being on time and within budget, while delivering a quality e-procurement solution that clearly will advance procurement in the state of Arizona for years to come”, says Jean Clark, State Procurement Administrator.

The second phase, schedule to be completed in the spring of 2011, will integrate ProcureAZ with Arizona’s state financial system.  Arizona end-users will be able to look up account codes and check budgets online as well as create encumbrances within the state financial system.  Phase Two of ProcureAZ also includes rolling out additional BuySpeed functions already installed through Phase One..  When completed, Phase Two will further streamline Arizona’s procurement activities and reduce costs.

In May 2009, Periscope Holdings, Inc. won a competitive bid to implement the BuySpeed eProcurement system for a cost of $8.6M over 5 years.  The resulting efficiencies from the implementation of BuySpeed are projected to generate significant savings to the state of up to 20% due to improved ability for strategic spend management through the system.  

 “In these economic times, state and local governments are under increased scrutiny as they spend taxpayer dollars,” says Periscope’s President and CEO, Brian Utley.  “BuySpeed offers a solution that increases transparency, improves processes and saves money. I want to commend the state for taking on this endeavor. In these times we really need our governments to step up and implement solutions that will save taxpayers money. Jean and her staff at Arizona’s Department of Administration have always been forerunners in improving the way the state’s business is done.”