March 2006 Cooperative Procurements Update 1

Cooperative Procurements:An Overview

Vern Jones - Alaska – Moderator Robert Bourne – GSA

Paul Stembler – Minnesota

NASPO 2006 Marketing to State Governments Meeting

March 2006 Cooperative Procurements Update 2

The Basics…

How do cooperative contracts begin…

• At least two (2) governmental entities decide that working together on a purchase(s) is better than doing it alone

• Some statutory or ordinance-based authority to work together exists

Example: some states cannot “lead” a procurement but can participate in one.

• Some kind of structure is defined and formalized

March 2006 Cooperative Procurements Update 3

Cooperative Models

– Federal GSA Schedules– State Governments

• NASPO/WSCA• Individual State Programs

– State and Local Governments• NIGP/US Communities, etc

– Higher Education• Higher education compacts (MHEC, WICHE,

etc.)

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Multi-State Cooperative Models

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Multi-State Cooperative Models

• WSCA Model– WSCA, comprised of the western NASPO region,

was formed in October 1993. – The purposes of WSCA are to establish the means

by which participating states may join together in cooperative multi-state contracting, to ensure the commitment of each participating state, and to provide regular and ongoing assistance to participating states in researching, developing, and administering procurement and contractual specifications and requirements.

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• WSCA membership consists of the principal procurement official that heads the state central procurement organization, or designee for that state, from the states of AK,AR,CA,CO,HA, ID,MN,MT,NV,NM,OR,SD,UT,WA, and WY.

WSCA Model

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How can vendors establish themselves on a multi-state contract?

RESPOND TO SOLICITATIONSRESPOND TO SOLICITATIONS

– If you are asked in solicitations if you would be willing to extend the pricing to “cooperative members” – say, Yes

– Many multi-state contracts start out as a contract within a state that produces good outcomes

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WSCA Solicitation Process

• Solicitations are posted/advertised on the lead state’s website. Other states may advertise as well depending on their statutory requirements

• There is no WSCA “bidders list” to be placed on, however individual states may distribute notification via their own bidders list.

March 2006 Cooperative Procurements Update 12

WSCA Award Process• Lead state staff and staff from other states

participating in the evaluation make an award recommendation to the lead state– Some state laws require participation in the evaluation to

permit a state to use contracts

• Lead state brings recommendation to WSCA state directors for final approval

• Once award recommendation is approved, lead state proceeds to enter into contract(s) and other participants issue participating addenda, as required

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Contract Administration

• Lead state administers contract

• Lead state provides ongoing analysis of sales and negotiates prices based on sales volume

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Managing Participation

The lead state is responsible for managing participation of non-state level entities from non-WSCA participating states

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Status of Current WSCA/NASPO

Contracts

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All information on current WSCA/NASPO contracts can be found on the NASPO website (www.naspo.org) under “Cooperative Purchasing” or…

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By visiting the WSCA website (www.aboutwsca.org) and selecting a contract from the drop-down menu

List of current contracts and contact information is available on your handouts.

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WSCA Potential Cooperative

Opportunities

The following “opportunities” are

currently actively being consider by WSCA

[Legal stuff – this is not an offer or is it a guarantee that ANY solicitation will

actually occur]

March 2006 Cooperative Procurements Update 20

WSCA Potential Cooperative Opportunities:

• Satellite phone; satellite phone unit, service and support

• Print management assessment; manufacturer-neutral, 3rd party assessment of print needs – networked, photocopy, fax, scanning – multi-functional approach

• Ammunition• Reload Supplies• General law enforcement equipment and supplies• Products for non-arresting authorities• Office supplies

March 2006 Cooperative Procurements Update 21

WSCA Potential Cooperative Opportunities:• Purchasing cards (followed by card acceptance

and debit cards)• Express mail service, small package delivery• Quick service copying• Janitorial supplies, paper & plastic• Consumer (small) electronics• Foodservice small ware and disposables, small

and large equipment and Canteen items• Tires• Qualified Products Lists (QPL’s are used by DOTs

in contracting)

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WSCA Potential Cooperative Opportunities:

• Safety vests• Human services arena• EBT cards

March 2006 Cooperative Procurements Update 23

Further questions?

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• Contract Administration and Management– Single entity responsible for overall administration

and management– Single point of entry into use of a contract –

Member or not a member?– Ordering/payment issues at/with facility or

member– Purchasing decisions are made by individual

participating facilities, not by the managing entity and practice and use issues are facility or member unique issues

General Services Administration

Cooperative Purchasing for Information Technology:Leveraging Buying Power to Save You Time and Money

Cooperative Purchasingwww.gsa.gov/cooperativepurchasing

Leveraging Buying Power to Save You Time and Money

e-Gov Act of 2002

Section 211 authorized GSA sales of Schedule 70 IT products and services to State & Local Governments through the

introduction of Cooperative Purchasing.

• Program sales commence May 2003• IT products and services [no other products/services]

Background of Cooperative Purchasing

Who’s Eligible?

• The 50 states• All counties,

municipalities, cities, towns and townships

• Tribal Governments• Public Authorities (Public or

Indian Housing agencies under the U.S. Housing Act of 1937)

• Public authorities, school districts, and colleges

• Voluntary

– No obligation by state and/or local governments to use the schedule.

– Contractors decide whether to accept orders from state and local governments.• About 2300 contractors have modified their

contracts to participate in Cooperative Purchasing

State & Local Use of Schedule 70

• 5-year contracts with three 5-year periods

• Streamlined acquisition program

• Commercial Catalog – approved contractors

• Prices already determined fair & reasonable

• Continuous opportunity for competitive prices

• Schedule solicitation – www.gsa.gov/elibrary

What is a Schedule?

How can Cooperative Purchasing Benefit the Customer?

• Monetary Savings

• Streamlined Process

• Commercial Items

• e-Tools

• Fair & Reasonable Prices• Greater Discounts for Large Buys

• Low Administrative Costs

• Huge Selection

• GSA has Taken Care of the Basics• Makes Buying Easy for Customers

Why Should State and Local Governments use GSA?

Small Business Participation

70%-75% of Schedule 70 contracts are held by small businesses

Over 30% of schedule sales are to small businesses

Agency orders count toward meeting Small Business goals

Getting on Schedule

1. Obtain copy of Solicitation from IT Center website: www.gsa.gov/schedule70solicitation or submit offer via e-offer: www.eoffer.gsa.gov.

2. For assistance in filling out Solicitation call 703-605-2700.

3. Submit offer. When requested, turn in additional needed information to Contracting Officer.

How to get a schedule contract

State/Local Training• FSS Center for Acquisition Excellence

– www.fsstraining.gsa.gov• On-line “Cooperative Purchasing” course• On-line “Using GSA Schedules” course

• Cooperative Purchasing Brochure

Points of ContactIT Center POC:

Tricia Reed Thomas Corcoran

213-534-0094 703-605-2764

Patricia.reed@gsa.gov thomas.corcoran@gsa.gov

Benjamin Taylor

703-605-0523

Benjamin.Taylor@gsa.gov