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An Introduction to Cooperative Procurement Erin D’Vincent – NIGP-CPP, CPPB

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An Introduction to Cooperative Procurement Erin D’Vincent – NIGP-CPP, CPPB An Introduction to Cooperative Procurement Erin D’Vincent – NIGP-CPP, CPPB Sai Xoomsai Purcell - CPPB Leadership Summit / Virtual Forum Nigp.org August 23, 2021 Your Presenters for Today Erin D’Vincent Sai Xoomsai Purcell Procurement Supervisor for the City of Austin Procurement Manager for the City of Austin • Over a decade in public procurement • 20+ years in public/private procurement • Certified Professional Public Buyer (CPPB) • Certified Professional Public Buyer (CPPB) • NIGP Certified Procurement Professional • Manages staff of nine Information Technology (NIGP-CPP) procurement professionals with contracts • Leaders Edge Class of 2020 Graduate valued at $1.3 billion • Supervises a staff of six that manage over • Fluent in Thai and conversational in 280 contracts valued at more than $450 American Sign Language million • Lover of travel and learning about other • Lover of the outdoors cultures through food 2 | NIGP FORUM 2021 nigp.org • Cooperative procurement • Rebates • Differences between an • Contract Order of Precedence interlocal/intergovernmental agreement • Supplemental Terms and Conditions and cooperative consortium • Insurance • Commonly used cooperatives • Survivability • Cooperative mergers • Procurement professional responsibilities • Analysis • Price • Cooperative roadmap • Market • Gap 3 | NIGP FORUM 2021 nigp.org What is Cooperative Procurement? NIGP defines Cooperative Procurement as the following three: • Cooperative Procurement • Intergovernmental Cooperative Purchasing • Piggyback (Piggyback Cooperatives) 4 | NIGP FORUM 2021 nigp.org Cooperative Procurement1 1. The action taken when two or more entities combine their requirements to obtain advantages of volume purchases, including administrative savings and other benefits. 2. A variety of arrangements, whereby two or more public procurement entities purchase from the same supplier or multiple suppliers using a single Invitation for Bids (IFB) or Request for Proposals (RFP). 3. Cooperative procurement efforts may result in contracts that other entities may “piggyback.” Can also be known as a Consortium – a partnership, association, or society of suppliers 1 Dictionary of Terms. NIGP, https://www.nigp.org/dictionary-of-terms nigp.org 5 | NIGP FORUM 2021 Intergovernmental Cooperative Procurement2 A variety of arrangements under which two or more governmental entities pool their commodity and/or service requirements to purchase aggregated quantities thus achieving economies of scale. The process usually involves a single combined bid or request for proposals in which all of the participating entities are named or their participation implied. 2 Dictionary of Terms. NIGP, https://www.nigp.org/dictionary-of-terms nigp.org 6 | NIGP FORUM 2021 Piggyback Cooperatives3 A form of intergovernmental cooperative purchasing in which an entity will be extended the pricing and terms of a contract entered into by a larger entity. Generally, a larger entity will competitively award a contract that will include language allowing for other entities to utilize the contract which may be to their advantage in terms of pricing, thereby gaining economies of scale that they normally would not receive if they competed on their own. 3 Dictionary of Terms. NIGP, https://www.nigp.org/dictionary-of-terms nigp.org 7 | NIGP FORUM 2021 Intergovernmental versus Cooperatives Intergovernmental/Interlocal Cooperative A contract or agreement between state or local A contract or consortium between a federally governmental entity or a federally recognized recognized Indian tribe, state, or local Indian tribe governmental entity and businesses Authorized by the governing body of each Authorized by the governing body to utilize as party to the agreement (exception for stipulated through Interlocal agreements municipally owned utilities) Typically includes a purpose, terms, rights, and Typically, a commercial contract with standard duties of the contracting parties. Commonly, a terms and conditions that include striped down contract indemnification, insurance, warranty, etc. Each party authorized to perform individually Parties follow established terms of the cooperative agreement Provide a firm price for the services to be provided Provide a price ceiling, but not always the most 8 | NIGP FORUM 2021 competitive price. Parties may seek to negotiate nigp.org better pricing for larger volume Commonly Used Cooperative Associations • Texas Association of School Boards, Inc • HGACBuy – BuyBoard • Sourcewell – formerly NJPA • Texas Department of Information • WorkQuest – formerly Texas Institute for Resources (DIR) the Blind and Handicapped (TIBH) • OMNIA – includes U.S. Communities, • TxSmartBuy National IPA (formerly TCPN) • MMCAP • GSA Advantage • NASPO ValuePoint 9 | NIGP FORUM 2021 nigp.org Cooperative Mergers • First, speak with your legal counsel to determine how to proceed • Typically, an amendment can be issued for a name change or merger • If a new entity is named, you may need to request approval from your governing board to approve the use of those contracts (e.g. when OMNIA acquired U.S. Communities and National IPA) nigp.org 10 | NIGP FORUM 2021 Analysis • Procurement Specialist takes the lead role • Determine if a rebate is applicable to conduct the analysis • The Purchasing Department reserves the right • An analysis within a single cooperative, to determine if using a cooperative is in the among multiple cooperatives, among best interest of the entity current/prior entity contracts, and within the • Procurement professional provides market open market analysis to management and puts in contract • Evaluates quantitative and qualitative file. elements of the cooperative compared to other means of procurement to ensure the entity is getting the best value. 11 | NIGP FORUM 2021 nigp.org Market Analysis Vendors: Med Wheels Sterlington Medical HeartSafe One Beat CPR Capabilities WBE/MBE Yes No No No Cooperative Contract Yes Yes Yes No Cooperative Contract Name Texas BuyBoard Texas BuyBoard Texas BuyBoard No Coop Contract End Date May-23 May-23 31-May No Coop Contract Number 610-20 610-20 610-20 No Coop Contract Name HGACBuy No Coop End Date 31-Jul No Coop Contract Number EE08-19 No M/WBE Certified Yes/Yes No No No AED & ALS Supplies Yes No No No Sells all AED Brands Yes Yes Yes No Available PAD Models 4 4 4 2 Possible BLS Models 2 2 2 1 Master Distributor Yes Yes Physio Philips and Physio Local Independent Consultant (See notes below) Yes No No No Top 3 AED Pricing HeartSine 350p $999 $1,030 $1,095 $1,145 Physio CR Plus $1,350 $1,350 $1,400 $1,325 Zoll AED Plus $1,400 $1,400 $1,500 $1,699 Minimum Manufacturer Cat Discount Physio/HeartSine 20% 15% 10% 15% Zoll 20% 15% 10% 0% Philips 20% 15% 10% 15% Supplies 20% 15% 10% 15% Supplies AED Supplies Yes Yes Yes Yes ALS Supplies Yes (See attached Spreadsheet) No Yes (Physio Control only) Yes Approved CPR Feedback Device Yes Yes No Yes nigp.org 12 | NIGP FORUM 2021 Price Comparison nigp.org 13 | NIGP FORUM 2021 Gap Analysis • Helps determine if a cooperative contract can meet your needs • Pull the cooperative solicitation/contract documents and review against your standard documents • Determine which sustainability programs such as M/WBE participation, HUB Certification, certified small business, living wage, SDVBE, or other programs may be applicable or not • Determine what contract terms and conditions would be important to add; however, be very cautious as it cannot materially change the cooperative terms and conditions 14 | NIGP FORUM 2021 nigp.org Rebates The City of Austin receives annual rebates from the following suppliers based on cooperative contracts $1.2 Million Average annual rebate received by the City of Austin over the last three fiscal years • Bank of America • BuyBoard • Home Depot • Sourcewell (NJPA) • Staples • Gaston Sheehan • Grainger 15 | NIGP FORUM 2021 nigp.org Contract Order of Precedence Anything supplemental to the original cooperative contract takes precedence Be very cautious what you supplement to the contract to make sure it doesn’t materially change the original cooperative contract 1. This Contract is composed of the following documents in order of precedence: 1.1 This Document 1.2 Supplemental Terms, incorporated herein and attached as Insert Exhibit hereto. 1.3 Scope of Work, attached as Insert Exhibit hereto. 1.4 Cooperative Contract Name and Number, incorporated herein by reference. 1.5 Contractor’s Offer, dated Insert Date, incorporated herein and attached as Insert Exhibit hereto. 16 | NIGP FORUM 2021 nigp.org Supplemental Terms to Consider • Invoices and payment • Audits and Records • Assignment Delegation • Non-Debarment Certification • Equal Opportunity • Equal Employment Opportunity • Non-Retaliation • American with Disabilities Act (ADA) Compliance • Subcontractors • Security Requirements • Specific Terms per State/Local Government Code • Mandatory Anti-Israel Boycott Provision • Prohibition on LGBTQ+Conversion Therapy • Specific Terms as Related to what is being procured. • IT Examples • Data Handling Controls • Network Access 17 | NIGP FORUM 2021 nigp.org Insurance • Always a good idea • Cooperatives commonly include insurance in their requirements • Check to see what the cooperative contract states • You can always ask a contractor to provide insurance • If contractor is unable or unwilling, determine if that’s a deal breaker. If your entity decides to proceed without insurance, then document the file. 18 | NIGP FORUM 2021 nigp.org Survivability • The term of the contract should not exceed the
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