Post on 02-Oct-2020
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COSTARS
Simplifying Local Procurement
January 21, 2015
Your Cooperation is Needed
Please mute your phone *6
To ask questions and open your line *6
This will help all of our friends!
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PSAB’s Blended Training
�WebinarsWebinarsWebinarsWebinars
�Traditional Classroom SessionsTraditional Classroom SessionsTraditional Classroom SessionsTraditional Classroom Sessions
�OneOneOneOne----onononon----One Assistance One Assistance One Assistance One Assistance
Upcoming Training
Webinars
The Elected Officials Role in Subdivision & Land Dev. Jan 28**Duties and Responsibilities of Council Feb 4 */**Municipal Insurance 101 Feb 4Understanding the Sunshine Law and Amendments Feb 11 The Proper Disciplining of Police Officers Feb 12Mayor – Council Relations Feb 18*
* Free to PSAB Members** Evening Session
4
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Upcoming Classroom Training
The Open Records Act & Record ManagementThe Ethics Act and Open Records
Your Role as Municipal Secretary/AdministratorPolice Civil Service Training
Establishing a Rental Property Inspection ProgramThe Course in Community Planning
The Course in Zoning The Course in Subdivision & Land Development Review
The Course in Zoning Administration
Reserve Your Seat for 2015!
Pennsylvania State Association of Boroughs2015 Annual Conference
April 26-29, 2015Lancaster, Pa
www.boroughs.org
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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.
PA Procurement Law
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.
COSTARS is the Commonwealth’s cooperative purchasing program.
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A local public procurement unit (LPPU) is defined as:
• Any political subdivision
• Any tax exempt, nonprofit education or public health institution or organization
• Any public authority
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.
• 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
• Any nonprofit fire company, nonprofit rescue company, nonprofit ambulance company
MEMBER HISTORY
2005 Membership2,996
2009 Membership6,587
TodayOver 8,100
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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.
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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 Contracts
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.
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VScontracts
COSTARS contracts have multiple choice of suppliersSTATE contracts often offer one or a few suppliers
COSTARS contracts offer competitive pricingSTATE contracts are competitively priced through supplier bidding (low bid typically or best value)
COSTARS contracts allow COSTARS members to choose suppliers based on price, geography, quality, etc.
contracts
STATECOSTARS
1 Copiers3 IT Hardware4 Office Supplies
5 Janitorial Supplies
6 Software7 Foods8 Maintenance, Repair &
Operation Equip & Supplies)9 Graphic & Printing Services10 Voting Systems11 Toiletries12 Emergency Responder
Loose Supplies13 Emergency Responder
Vehicles14 Recreational & Fitness
Equipment 15 Water & Waste Water
Treatment Consumables16 Water & Waste-Water
Treatment Plant-Components/Equipment
17 Waste, Recycling & Materials Handling Containers
18 LED Traffic Signals19 Laboratory Supplies20 Medical Supplies21 Pest Control Services22 Weatherization Supplies24 Traffic Signs25 Municipal Work Vehicles26 Passenger Vehicles28 Energy Conservation Supplies29 Grounds Keeping
(Grounds/Turf Maintenance)30 Energy Consulting Services32 Signage33 Streetscapes 34 Theater (Auditorium) Furniture,
Fixtures and Equipment35 Furniture & Window
Treatments36 Appliances, Cafeteria Supplies
& Equipment37 Uniforms
COSTARS
Contracts
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COSTARS-5 Janitorial Supplies
� Cleaning Supplies & Chemicals� Commercial & Industrial Floor
Mats� Deodorizer/Odor
Counteractants� Dilution Control Systems� Floor Care Machines� Floor Finisher & Remover� Janitorial Paper Prods� Specialized Floor Cleaning Equip
Rental� Trash Liners� Vacuums & Accessories
0
500
1000
1500
2007 2008 Today
Suppliers
Suppliers
2007 483 Suppliers
2008 600 Suppliers
Today Over 1,200
Suppliers History
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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
NEW CONTRACT PROPOSALS
Several members write to us
Associations write to us
Legislators write to us
Periodic Surveys for YOUR input
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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.
COSTARS Enhanced Website
� Member Registration is free and completed online� Your COSTARS Member listing will alert awarded suppliers that you are
an approved participant in the program� Providing an email address will enable you to receive information
promptly� You can access both COSTARS and State Contracts� Read Newsflashes that will provide you important program information� Quarterly Newsletters� You can easily update member profile, such as changing or adding
contacts, address and other member information� You have access to the Resource/Training Center
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$934 Million in FY2013!
0
100000
200000
300000
400000
500000
600000
700000
2006 2007 2008 2010 2011 2012
COSTARS SALES GROWTH
COSTARS SALES GROWTH
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SCHOOLS
28%
MUNIC
26%
COLLEGE
17%
COUNTY
9%
OTHER
3%
EMS
2%% HEALTH
7%
AUTHORITIES
8%
FY2013 TOTAL COSTARS SPEND BY
LPPU CATEGORY
SAVINGS TO COSTARS SAVINGS TO COSTARS SAVINGS TO COSTARS SAVINGS TO COSTARS
MEMBERSMEMBERSMEMBERSMEMBERS
FY2013 OVERVIEWFY2013 OVERVIEWFY2013 OVERVIEWFY2013 OVERVIEWo 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
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WEBSITE CHANGES
New COSTARS Home Page
www.costars.state.pa.us
To access
Members’
Page
WEBSITE CHANGESwww.costars.state.pa.us
Or, you 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.
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DO’S & DON’TS OF THE ROAD SALT CONTRACT # 6810-02 (Sodium Chloride)
Eligibility RequirementsYou 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.
NotificationThe 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
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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 addressUse a different email
Password is invalid Check that all requirements are met
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NEW OR EDIT COSTARS MEMBERSHIP
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COSTARS Contract Search, Statewide Contract Search and Statewide ITQ Search: Members hover over this link to search for available contracts managed by DGS
How to view
Contracts
Members’ Area
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Use Drop Down Arrows to select
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COSTARS Contract Overview
Vendor Contract
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Vendor Contract – Ten Questions
Vendor Contract – Service Area
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Vendor Contract – Product Categories and Brands
Vendor Contract – Supplier Ancillary Services
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Vendor Contract – Supplier Prices
Pricing Format: Percent, Discount, Cost Plus or Custom
Customized Price List may be attached
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Use your Keystone Login (Same as you use for Salt)
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How to Purchase
Using
COSTARS
Example: Passenger Van
Follow the steps to Search COSTARS Contracts.Is your product available?
YES!!!
COSTARS – 26 Passenger Vehicles
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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.
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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.
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View overview, article index sheet and supplier info
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Compare with COSTARS quotes. Make sure you are comparing like vehicles.
Call your finalists.
NEGOTIATE!
Finalize the deal.
Prepare your
Purchase Order.
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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
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
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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
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Other Uses Of The COSTARS Program
PRICE BENCHMARKINGEven 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
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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 Manager717-346-2678
Claire Osborne, Marketing Manager717-346-3838
Dawn Eshenour, Program Manager
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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!”