1/20/2015

1

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!

1/20/2015

2

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

1/20/2015

3

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

1/20/2015

4

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.

1/20/2015

5

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

1/20/2015

6

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.

1/20/2015

7

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.

1/20/2015

8

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

1/20/2015

9

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

1/20/2015

10

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

1/20/2015

11

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

1/20/2015

12

$934 Million in FY2013!

0

100000

200000

300000

400000

500000

600000

700000

2006 2007 2008 2010 2011 2012

COSTARS SALES GROWTH

COSTARS SALES GROWTH

1/20/2015

13

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

1/20/2015

14

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.

1/20/2015

15

1/20/2015

16

1/20/2015

17

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

1/20/2015

18

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

1/20/2015

19

NEW OR EDIT COSTARS MEMBERSHIP

1/20/2015

20

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

1/20/2015

21

Use Drop Down Arrows to select

1/20/2015

22

COSTARS Contract Overview

Vendor Contract

1/20/2015

23

Vendor Contract – Ten Questions

Vendor Contract – Service Area

1/20/2015

24

Vendor Contract – Product Categories and Brands

Vendor Contract – Supplier Ancillary Services

1/20/2015

25

Vendor Contract – Supplier Prices

Pricing Format: Percent, Discount, Cost Plus or Custom

Customized Price List may be attached

1/20/2015

26

1/20/2015

27

Use your Keystone Login (Same as you use for Salt)

1/20/2015

28

1/20/2015

29

How to Purchase

Using

COSTARS

Example: Passenger Van

Follow the steps to Search COSTARS Contracts.Is your product available?

YES!!!

COSTARS – 26 Passenger Vehicles

1/20/2015

30

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.

1/20/2015

31

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.

1/20/2015

32

View overview, article index sheet and supplier info

1/20/2015

33

Compare with COSTARS quotes. Make sure you are comparing like vehicles.

Call your finalists.

NEGOTIATE!

Finalize the deal.

Prepare your

Purchase Order.

1/20/2015

34

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

1/20/2015

35

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

1/20/2015

36

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

1/20/2015

37

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

1/20/2015

38

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!”