Strategic Cooperatives: How to select and make the most of Cooperative Purchasing Programs

Brad Stefanoni Purchasing & Procurement Services Greenbush Education Service Center, Kansas Katrina Brunette, CPPO, CPPB Procurement & Contracting Manager Oakland Schools, Michigan

Procurement…

Today’s Overview  Importance of the procurement function  Common pitfalls of bidding  Improvement strategies  Strategic cooperatives  How to choose a strategic cooperative

Public Procurement Goal  What is the goal? –Compliance –Insure public funds are spent properly –Allow fair and open competition –Transparency

Common Bidding Pitfalls  Lack of skilled purchasing staff  Lack of solid procedures  Poorly defined responsibilities  Poorly written specifications  Poor communication (procurement process, requirements, roles of team members, etc.)

Solicitation Types Invitation for Bid (IFB) vs. Request for Proposal (RFP) …What is the difference?

Solicitation Types Invitation for Bid (IFB)Request for Proposals (RFP) *Detailed specifications*Specifications less precise, solution-based *Pricing read aloud at public bid opening*Proposals/pricing not publicly read aloud *Review is based on whether bid complies with requirements and specifications *Reviewed by evaluation team with SMEs and often includes demos or interviews *Award to lowest responsive and responsible bidder *Award based on best value or “price and other factors” *Supplies, materials, equipment, construction-related *Software, technical solutions, services *Rigid*Flexible

Solicitation Process  Critical components of process: –Clearly written and non-restrictive specifications –Communication ONLY through contracting officer –Share same information with ALL bidders –Include Subject Matter Experts (SME) in process (writing of specifications & review)

Bidding Improvement Strategies  What can school districts do? –Employ skilled procurement staff –Have clearly defined processes –Select proper solicitation type –Involve right staff (Subject Matter Experts)

So the question is… What if you don’t have skilled procurement staff?

Benefits of Strategic Cooperatives  Save time  Save money (bid process & price savings)  Don’t have to manage overall contract

Select the Right Cooperative 1.Identify available contracts 2.Due diligence A.Meet state statutes? B.Meet local policy?

AEPA Fast Facts  Founded in 2000 by ten states  Mission is to work collaboratively to save schools and other public agencies time and money  Currently 24 member states  Strategic partner of AESA  "Nationally bid, locally awarded"  More than $400 million in annual gross sales

Current AEPA Member States  California  Colorado  Connecticut  Florida  Iowa  Indiana  Kansas  Kentucky  Massachusetts  Michigan  Minnesota  Missouri  Montana  North Dakota  Nebraska  New Mexico  Ohio  Oregon  Pennsylvania  Texas  Virginia  Washington  West Virginia  Wisconsin  Wyoming

Current AEPA Contract Categories  Athletic Equipment  Sports/Health Supplies  Athletic Tracks, Courts, Artificial Turf, Hardwood/Synthetic Flooring  Carpeting  Classroom Supplies  Copiers/Document Management  Facilities Management  Furniture  Industrial Supplies  Janitorial Supplies  Kitchen Equipment/Supplies  Mobile Learning Solutions  Musical Instruments/Supplies  Office Supplies  Parent Notification Systems  Portable/Modular Classrooms  Roofing  Scoreboards/Marquee Signage  Technology Equipment  Vehicles/Utility Vehicles  Work Order/Asset Management

AEPA states are shown in blue, but contracts are available in all states through piggyback contract options.

Questions?