Marcheta E. Gillespie, CPPO, C.P.M., CPPB, CPM NIGP National 2 nd Vice President City of Tucson Deputy Director of Procurement
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1 Marcheta E. Gillespie, CPPO, C.P.M., CPPB, CPM NIGP National 2 nd Vice President City of Tucson Deputy Director of Procurement What is cooperative procurement? What are the pros and cons? When is it better to use a cooperative? What should you do before using a coop? How do you administer the use of a coop? When you consider being a lead on your own cooperative contract? So many cooperatives, how do I choose? NIGP Values & Guiding Principles Initiative Standards of Practice: Definition: Cooperative Procurement is combining the requirements of two or more public procurement entities to obtain the benefits of volume purchases, delivery and supply chain advantages, best practices and reductions to administrative expenses and time savings.
2 Piggybacking is a form of intergovernmental cooperative purchasing in which an entity will be extended the same pricing and terms of a contract awarded by another entity. Coop before ; Piggybacking after Third Party Aggregators Handouts Cooperative Purchasing Use of Cooperative Contracts for Public Purchasing Should I establish my own contract? OR Should I use an existing contract? How should I decide?
3 Group Exercise Identify the advantages and disadvantages of creating your own contract versus using an existing of cooperative contract? Is the good/service something your agency purchases regularly? Is this a high cost item? Is there local/regional competition? Is there an existing cooperative that meets my needs and is compliant to my contracting requirements? NIGP AZ Capitol Chapter SubCommittee AZ State Agency Draft Checklist Others?
4 Unique or infrequent purchase Lack resources or skill set for purchase Urgent need Lack sufficient volume/pricing leverage No local/regional source Need a specific brand or sole source IGA/IPA with agency or member of coooperative (ability to join cooperative) Saves time May have better pricing May have better terms and conditions Generally results in lower administrative costs May enable standardization May provide a higher quality product or service Can take advantage of the expertise of another agency
5 Group Discussion What should you consider before using an existing cooperative? Due Diligence: Compliance with local laws, state statutes Compliance with your own agency requirements Special rules or requirements? Compliance w/open, competitive sourcing process Market research on supplier, product/service, lead agency and cooperative Meet the needs of the agency? Method of award Acceptable terms and conditions Any way to address additional terms and conditions via addendum or purchase order Meet the best interest of the agency Fees associated with the usage of the contract Enter into IGA/IPA or third party cooperative agreement
6 Confirm invoicing meets contract pricing Notify lead agency of pricing differences, problems w/supplier, non-compliant products or services Consider joining the cooperative for the resolicitation Audit Addressing additional agency specific needs Creating your order Customization and associated fees Shipping/delivery charges Contract pricing Do not negotiate or leverage contracts fixed pricing Special pricing deals Documentation Solicitation, tabulation, contract, insurance, bonds Pursuing legislative and policy changes Limitations by states or agencies Cooperative doesn t include your needs Partnering with existing lead agencies or cooperatives No cooperative exists
7 Availability in the market Other Interested Agencies Sufficient volume Broader applicability (regional, national) Customizable product/service Cost and level of effort to administer Revenue opportunity On your own or with a partner? Reputation Identify partnering agencies and needs Advertising, compliance with regulations? Conduct on your own or with third party Point of contact/manager Selecting the third party Additional agreements (IPAs, IGAs, other agrs?) Research and understand the market Determine pricing model Facilitate the sourcing process Negotiations, method of award, number of awards Administer the contract Roles of each party Tracking usage/reporting Determining acceptable/unacceptable practices special offers, disclosure/non-disclosure of information, levels of contact w/3 rd party Participate in reviews/performance analysis Manage disputes and concerns Adjust based upon market changes and partner agency needs
8 Oversaturation? Competition Niche markets, specializations Disclosure of information, price protection Differentiation, additional services Impacts on cooperatives Sustainability Local preference Other specialized requirements or focal points New market - Third party service providers Cooperative analysis ecommerce Resources SAVE GPPCS NIGP National, Chapters and list serves Colleagues In State cooperatives: State Procurement Office Individual Agencies (cities, counties, schools, etc) Mohave Educational Services Cooperative National Cooperatives: General Services Administration (GSA) Educational & Institutional Cooperative (E&I) National Intergovernmental Purchasing Alliance (NIPA) National Joint Powers Alliance (NJPA) The Cooperative Purchasing Network (TCPN) US Communities (USC) Western States Contracting Alliance (WSCA)
9 Marcheta E. Gillespie, CPPO, C.P.M., CPPB, CPM NIGP National 2 nd Vice President City of Tucson Deputy Director of Procurement 255 W. Alameda, 6 th Floor Tucson, AZ marcheta.gillespie@tucsonaz.gov (520)
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