leveraging choice in procurement

Leveraging Choice in Procurement

When are cooperative agreements right for my organization?

Presented byDuff Erholtz Dave DuhnManager of Membership Services Lead Contract Manager

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Today’s Agenda….WHAT WE HOPE TO COMMUNICATE

When are Cooperative agreements right for youWhere it began – Why is it changing? Evolving?How are they tools in your procurement tool belt?Dealing with reductions in – staff – budgets - timeEvaluating cooperative agreementsCase StudiesFeedback from the audience

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But first…

Who are we? A Municipal Contracting Agency

Established under Minnesota Statute 123A.21Enabled by Minnesota Statute 471.59 (Joint Powers Law)Follow Uniform Municipal Contracting Law under Minnesota Statute 471.345

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And more importantly, who are you?!

How long have you been in procurement?

How much experience do you have with Cooperative agreements?

Will this be Cooperative Purchasing 101? Or 501?

What is a Cooperative Agreement?

Lets Define:Local

Regional

National

History of Cooperative Agreements…

1)Where it all began

2)Why it is changing…Evolving?!

3)What does the future hold

COOPERATIVE AGREEMENTS ARE TOOLS IN YOUR

PROCUREMENT TOOL BELT!

WHY MIGHT I NEED TOOLS?

1)Reduced staff

2)Reduced budgets

3)Time constraints – “I need it now!”

WHY MIGHT I NEED TOOLS?

1) Lack of expertise – writing and evaluating the RFP/IFB

2) New to the Profession of procurement! Use the Coop’s to “stay afloat” until you learn to swim!

WHY MIGHT I NEED TOOLS?

What adversity are you now facing in your job – time, lack of support, lack of resources, etc…that is FORCING you to seek new ways to …

“GET ER DONE…”

Have you ever been burned by “low bid”?

Brand preferenceDealer preferenceLife cycle costingLocal preference (dealer!)More subjective reasons?

IS IT POSSIBLE TO HAVE TOO MANY CHOICES?

IF Choice Breeds Competition…

Start With The Actual Contract!

Evaluating Cooperative Agreements

Evaluating Cooperative Agreements

Written With Cooperative Language?

Evaluating Cooperative Agreements

Source of The Contract

TO BID, OR NOT TO BID…WHEN IS THE

QUESTION?Reinvent The Wheel

-vs- Choose A Cooperative

Agreement

70% OF WHAT Cory HarmsPURCHASES, EVERY ONE OF

YOU PURCHASE!

Focus on the 30% that are unique to your organization

WHAT ARE ADDITIONAL BENEFITS OF UTILIZING

COOPERATIVE AGREEMENTS?1) CLOUT! Leverage your spend in the

marketplace2) Reduction of processing expense and time3) Matching supply to demand4) Improving customer service…(YES! Our departments are customers!)

Case Study #1Large University

Technology contract about to expireCurrent vendor has contract solution

Case Study #2Municipal

Decides to only shop contract solution(s)“Bake-off” of major national contracts

Case Study #3City

Wants to purchase off contractItems to be purchased are NOT on contractPurchase would be solely “sourced goods”

Case Study #4University

Initially tries to NOT go to RFP and just compare contract solutionsFeels local pressure to go to bidAt Pre-Bid 40+ vendors attendNow believes contract is “best” solution

Case Study #5K-12 school

Natural disaster destroys playground60 days until school startsPurchases off contract

Case Study #6K-12 school

Complicated technology solution for multiple locationsUnsure of the scope of the ongoing projectSelects contract solution to assure pricing containment for ongoing implementation

Case Study #7City

State has contractItems to be purchased NOT on state contractContract solution used as a “gap filler”

Let’s hear from you…

So what did we learn?Contract Purchasing

Saves time?Saves money?Leverage expertise of others?Avoids struggle(s) with “lowest responsible bidder”?Allows “CHOICE”?

More questions?

Don’t hesitate to reach out.Duff ErholtzManager of Membership Office 218.894.5490Cell 218.894.6812Duff.Erholtz@njpacoop.org

David DuhnLead Contract Manager Office: 218.894.5469Cell: 218.839.4335David.Duhn@njpacoop.org