PA Procurement Law Contracts Below $10,500 No advertising or competitive bidding or price quotes required Contracts Between $10,500 and $19,400 Three informal price quotes are required with award to the lowest Contracts Over $19,400 Advertise twice and formal competitive bidding is required.
COSTARS is the Commonwealth s cooperative purchasing program. The COSTARS program provides registered local public procurement units (LPPU) within the Commonwealth and Suppliers a tool to do business with each other effectively through the use of a contract established by DGS. This approach leverages the purchasing power of more than 8,100 local entities combined with the State to obtain more competitive pricing and choice than individual purchasers might be able to obtain on their own, while eliminating the expensive costs of public bidding procedures, and at the same time, providing increased opportunities for hundreds of businesses of all sizes in all locations, to compete for millions of dollars of government business.
A local public procurement unit (LPPU) is defined as: Any political subdivision Any public authority Any tax exempt, nonprofit education or public health institution or organization Any nonprofit fire company, nonprofit rescue company, nonprofit ambulance company And to the extent provided by law, any other entity, including council of government or an area government, that expends public funds for the procurement of supplies and services LPPUs must register on the COSTARS website to become members. Once registered, members are able to purchase from available COSTARS or Statewide contracts. The Department reserves the right to review on a case by case basis.
MEMBER HISTORY 2005 Membership 2,996 2009 Membership 6,587 Today Over 8,100
A COSTARS member may piggy-back off of state agency contracts OR Use a COSTARS Exclusive contract. Since these contracts have been previously bid by the state s Bureau of Procurement, no additional formal bidding process is required.
COSTARS Contracts A State agency contract that has reduced the supplier base by more than 50% requires the development of a COSTARS Contract Contracts that are created exclusively for the use by the LPPUs, based upon perceived need. COSTARS Contracts are awarded to all responsive and responsible bidders. Suppliers may bid ancillary services such as maintenance, training, and other unknowns related to the specified product.
COSTARS The cooperative purchasing program COSTARS MEMBER - A registered Local Public Procurement Unit The buyer. COSTARS-EXCLUSIVE CONTRACT A generic multiple vendor contract awarded to all responsive and responsible suppliers. STATEWIDE CONTRACT A contract awarded by the state government, authorizing the vendor to sell certain specified goods and/or services to agencies of the state government. COSTARS-AUTHORIZED SUPPLIER- A named holder of a COSTARS-exclusive contract. COSTARS-PARTICIPATING SUPPLIER - A named holder of a statewide contract that has voluntarily chosen to sell to COSTARS members under the same terms & conditions it sells to the state and pays the annual administrative fee.
COSTARS Contracts 1 Copiers 3 IT Hardware 4 Office Supplies 5 Janitorial Supplies 6 Software 7 Foods 8 Maintenance, Repair & Operation Equip & Supplies) 9 Graphic & Printing Services 10 Voting Systems 11 Toiletries 12 Emergency Responder Loose Supplies 13 Emergency Responder Vehicles 14 Recreational & Fitness Equipment 15 Water & Waste Water Treatment Consumables 16 Water & Waste-Water Treatment Plant- Components/Equipment 17 Waste, Recycling & Materials Handling Containers 18 LED Traffic Signals 19 Laboratory Supplies 20 Medical Supplies 21 Pest Control Services 22 Weatherization Supplies 24 Traffic Signs 25 Municipal Work Vehicles 26 Passenger Vehicles 28 Energy Conservation Supplies 29 Grounds Keeping (Grounds/Turf Maintenance) 30 Energy Consulting Services 32 Signage 33 Streetscapes 34 Theater (Auditorium) Furniture, Fixtures and Equipment 35 Furniture & Window Treatments 36 Appliances, Cafeteria Supplies & Equipment 37 Uniforms
BROAD SCOPE OF CONTRACTS
Suppliers History 2007 483 Suppliers 1500 Suppliers 2008 600 Suppliers Today Over 1,200 1000 500 0 2007 2008 Today Suppliers
PLUS 200 State Agency Contracts available to COSTARS members, for products such as: Power Equipment Audio Visual Services & Equipment Fuel Spring Water Temporary Clerical Services Carpet Universal Fleet Card Small Package Delivery Aggregates Drafting & Engineering Supplies Bituminous Materials Equipment Maintenance Roadsalt Medical Services Professional Training Services
COSTARS contracts VS STATE contracts COSTARS contracts have multiple choice of suppliers STATE contracts often offer one or a few suppliers COSTARS contracts offer competitive pricing STATE contracts are competitively priced through supplier bidding (low bid typically or best value)
NEW CONTRACT PROPOSALS Several members write to us Associations write to us Legislators write to us Periodic Surveys for YOUR input
Member Benefits Dollar Savings Volume Purchasing results in lower prices. As a member, you eliminate the need, cost and time for the bid process. You can negotiate with suppliers. Membership is free! Convenience Using COSTARS you can simply issue a purchase order to the COSTARS supplier or State Contract Supplier of record. Flexibility and Variety Broad selection of commodities and suppliers. More than 200 state contracts with a pool of over 2,000 suppliers. Free Training, workshops, a toll-free phone assistance, and a quarterly newsletter are provided by the COSTARS staff.
Access to large Pennsylvania customer base Market area selection Customize products and services Necessity and cost of local bidding process is eliminated Negotiate to get the sale Sell quality, not just price Reliable payment Increased sales and profit Access to marketing training and toll-free customer assistance Easy to use Member & Supplier Benefit COSTARS contracts allow COSTARS members to choose suppliers based on whatever criteria they think is important; e.g. price, geography, quality, etc.
Register as a Vendor on The PA Supplier Portal: Have Ready your: Employer ID# Functioning email address Security Number (SSN) for your business Legal name of company (must match IRS info) Business Type (Corporation, LLC, etc) Physical address with phone number and zip+4 code Contact person County of business location For assistance: 1-877-435-7363, Option 1
Register as a vendor at www.pasupplierportal.state.pa.us, receive your 6-digit vendor number, and self-certify as a small business (if applicable) Subscribe to DGS ealerts for bidding opportunities Respond to COSTARS bidding opportunities Read & Understand Terms & Conditions Submit a responsible and responsive bid Complete Bid Item Workbook Pay annual administrative fee when awarded the contract The only fees connected with the COSTARS Program are charged to contract suppliers to offset administrative costs to administer the Program. Flat annual fee of $1500 per Contract ($500 for small businesses less than 100 full-time employees AND Gross Annual Revenue less than $20 million.) Includes a nonexclusive license to use the COSTARS Brand (Name and Logo), as permitted under Contract provisions
700000 COSTARS SALES GROWTH 600000 500000 400000 300000 COSTARS SALES GROWTH 200000 100000 0 2006 2007 2008 2010 2011 2012 $934 Million in FY2013!
LOCAL STATS P U R C H A S E S CHANGE % USING COSTAR STATE TOTAL CAMBRIA (168) $5,644,877 $3,202,505 $8,847,382 +78.5% 56.4% SOMERSET (94) $3,139,347 $1,735,992 $4,875,339 +79% 58.8%
FY2013 TOTAL COSTARS SPEND BY LPPU CATEGORY OTHER 3% EMS 2% % HEALTH 7% AUTHORITIES 8% SCHOOLS 28% COUNTY 9% COLLEGE 17% MUNIC 26%
o SAVINGS TO COSTARS MEMBERS FY2013 OVERVIEW TRANSACTIONAL SAVINGS COSTARS CONTRACTS $39,590,237 STATE AGENCY CONTRACTS $10,064,470 o TOTAL $49,654,707 o COMMODITY SAVINGS COSTARS CONTRACTS $74,730,444 STATE AGENCY CONTRACTS $77,286,700 o TOTAL $152,017,144 o TOTAL $201,671,851 FY 2013 TOTAL SPEND $934,689,885
COSTARS Enhanced Website MEMBERS Member Registration is free and completed online Your COSTARS Member listing will alert awarded suppliers that you are an approved participant in the program You can easily update member profile, such as changing or adding contacts, address and other member information Complete Annual Salt Participation Contract online. SUPPLIERS Access to current list of members, including contact information to do direct marketing and to confirm membership. Access to your contract s terms and conditions, as well as your competitors. Access to your Supplier s contract exactly as it appears to members to review. Review and update your company s profile, such as contact person, address, and other information. Electronically assemble and report your quarterly sales. Download COSTARS Logo for use on Marketing materials. Online payment of your administrative fee. MEMBERS & SUPPLIERS You can access both COSTARS and State Contracts Read Newsflashes that will provide you important program information Providing an email address will enable you to receive information promptly Quarterly Newsletters Access to the Resource/Training Center
WEBSITE CHANGES New COSTARS Home Page www.costars.state.pa.us To access Members Page To access Suppliers Page
WEBSITE CHANGES www.costars.state.pa.us Or, Members can select the COSTARS (Cooperative Purchasing) link at the top of the page under the Local Government and Schools link, then select Member Information. You can also click on Program Resources.
WEBSITE CHANGES www.costars.state.pa.us Or, Suppliers can select the BUSINESSES link at the top of the page, then select MATERIALS & PROCUREMENT link, and then select COSTARS SUPPLIER INFORMATION. You can also click on Program Resources. For information on Small Business Certification, click on MINORITY, WOMEN, & VETERANS BUSINESSES or SMALL BUSINESS CONTRACTING PROGRAM.
Members Area COSTARS Contract Search, Statewide Contract Search and Statewide ITQ Search: Hover over this link to search for available contracts managed by DGS How to view Contracts
Use Drop Down Arrows to select
COSTARS Contract Overview
Vendor Contract
Vendor Contract Ten Questions
Vendor Contract Service Area
Vendor Contract Product Categories and Brands
Vendor Contract Supplier Ancillary Services
Vendor Contract Supplier Prices Pricing Format: Percent, Discount, Cost Plus or Custom Customized Price List may be attached
COMPLETE BID DOCUMENTS Complete CORPORATE CERTIFICATION CHECK THAT ALL DOCUMENTS ARE COMPLETED, SIGNED, AND NOTORIZED WHERE REQUIRED. MAIL OR DELIVER BY DUE DATE ALLOW 4-6 WEEKS FOR PROCESSING
SUPPLIER RESPONSIBILITIES A contractor agrees to comply with all terms and conditions of their contract and sell items or services listed in their contract to DGS-registered COSTARS members. Quarterly reporting of sales to COSTARS members. Payment of annual administrative fee. NOTE Since there is no requirement for COSTARS members to purchase from any particular awarded supplier, DGS does not guarantee volume of COSTARS contract sales. It is the sole responsibility of the awarded supplier to promote their offered products to registered COSTARS members. However, in FY2013, the average COSTARS supplier reported more than $420,000 in COSTARS sales!
Use your Keystone Login (Same as you use for Salt)
How to Purchase Using COSTARS
Example: Passenger Van Follow the steps to Search COSTARS Contracts. Is your product available? YES!!! COSTARS 26 Passenger Vehicles
Choose your search parameters Click to view Vendor Contract, Info and Pricing
If there are many vendors in your search results, choose a few vendors based on: Familiarity with the Company Geography Other criteria Check out each Company s pricing and details.
Call the Suppliers (at least 3 or four if possible), introduce yourself as a COSTARS member. Tell them you are calling several Suppliers to compare prices, and tell them what you need. Ask for the best price! Check if there is an applicable State Contract. Follow the steps to search a Statewide Contract. Search by description Passenger.
View overview, article index sheet and supplier info
Compare with COSTARS quotes. Make sure you are comparing like vehicles. Call your finalists. NEGOTIATE! Finalize the deal. Prepare your Purchase Order.
SUPPLIER QUESTIONS???
Negotiating With Suppliers Suppliers are prepared to negotiate, particularly on COSTARS Contracts. Obtain AT LEAST 3 or 4 prices, if possible. Announce up front that you are getting prices from several suppliers. Return to your preferred supplier and provide opportunity to beat lowest price. Remember your Objective: Getting the best value for your Taxpayers!!
DO S & DON TS OF THE ROAD SALT CONTRACT # 6810-02 (Sodium Chloride) Eligibility Requirements You must be registered with COSTARS to participate on the Salt Contract. A completed Salt Participation Agreement is needed for inclusion on this contract. The Salt Participation Agreement can be accessed from the COSTARS website (the orange bar on the Members page) between January 1 to March 15 of each year. A completed salt requirement form MUST BE RECEIVED BY March 15. Notification The Salt Contract will be posted in August indicating who your supplier is and your pricing. The contract Can be printed out for your records by using the COSTARS website. Ordering Your township or organization will place all orders with the supplier (NOT DGS). Consider ordering your salt early. The earlier you order salt, the better your road department will be able to respond to the winter road conditions. When ordering salt, try to think ahead of your overall needs. Although pricing will remain constant (no more monthly fuel adjustments), availability of shipments may be affected by weather conditions and/or needs of other customers of your supplier.
IF YOU CLICK ON THE ROAD SALT BAR
User Registration and COSTARS Membership: New users must first complete the User Registration to create a personal login to the COSTARS system. Once the user has completed the user registration they can create a new member organization or be added to an existing member organization. Only users who are authorized to edit the member profile and/or complete the salt participation agreement are required to create a User Registration.
Common Error Messages Your email is already in use Go to Forgot Password Due to technical reasons you cannot use this email address Use a different email Password is invalid Check that all requirements are met
NEW OR EDIT COSTARS MEMBERSHIP
State Aggregates Contract There are two methods members can use to purchase from the State Aggregates Contract: 1. Mini-bid Process If you require the supplier to deliver your order, you must use the Mini-bid Process If you prefer to pick up your order, you may use the Mini-bid Process or Source Pick-up Pricing 2. Source Pick-up Pricing Identify the supplier who sells the material you require and purchase directly from that supplier
Mini-bid Process You MUST send a Request for Quote to ALL qualified suppliers Do not send a Request for Quote to, or accept a quote from any supplier who has not indicated they will allow Piggyback Purchases Do not send a Request for Quote to, or accept a quote from any supplier not listed in the Aggregates and Anti-skid Materials Contract Number 5610-15 Doing so is a violation of the contract and can result in an Audit Finding against your municipality Ultimately, you MUST choose the low-bid supplier or reject all bids. Source Pick-up Pricing Choose a vendor, aggregate and price for the material you require from e- Marketplace Contact the supplier using the information in the Vendor Information tab in the Overview at the bottom of the spreadsheet Identify yourself as a COSTARS member and that you would like to use the Source Pick-up Pricing If you are picking up the material yourself, you may account for your transportation cost to determine the lowest quote (e.g. if supplier A quotes $10 per ton and is 25 miles away, and supplier B quotes $10.25 per ton and is one mile away, you may choose supplier B based upon the better value) Place your order. Always reference the Supplier s contract # on your P.O.
Search Aggregates
Other Uses Of The COSTARS Program PRICE BENCHMARKING Even if you purchase through another source, use the COSTARS or State Agency Contract to ensure competitive price. BUDGETING While preparing your budget, use the COSTARS or State Agency Contract to estimate your commodity purchasing costs. GRANT WRITING While preparing your grant, use the COSTARS or State Agency Contract to estimate your costs.
Audit Ready Suggestion Print COSTARS Supplier Contract Include name of Supplier Include the Price/Discount Attach these items to your copy of your Purchase Order
By Phone Live technical support from COSTARS staff (866) 768-STAR (7827) Online www.costars.state.pa.us Self-service Portal for research and customer service needs E-mail: gs-pacostars@state.pa.us In Person Training and Education Town Hall Meetings and Workshops
COSTARS Contact Information Bruce Beardsley, Marketing Manager 717-214-3432 Kim Bullivant, Marketing Manager 717-346-2678 Claire Osborne, Marketing Manager 717-346-3838 Dawn Eshenour, Program Manager
Reduces Administrative Costs of Bidding and Contract Award Provides flexibility in choosing a supplier Multiple commodity choices to meet members needs. Allows for product customization Competitive Pricing plus negotiation saves Taxpayer funds Provides opportunities for local businesses to get a piece of the pie
.The COSTARS Program is.a great example of how our government can partner with the private sector to produce taxpayer savings!