Cooperative Procurement MD Association of Community Colleges Procurement Officers June 2015

MCCPO Colleagues Allison Canada, C.P.M. Wor-Wic Community College LaTonya “LT” Holland Price George’s Community College Mary Jo McCabe, CPPB Community College of Baltimore County Joe College of Southern Maryland Yu Zhu, CPPO, C.P.M. Montgomery College

Cooperative Contracts Cooperative Procurement Two or more public procurement or nonprofit agencies combine their requirements to coordinate the economic benefits of volume purchases, delivery, best practices, and the reduction of administrative time and expenses. Intergovernmental Cooperative (a/k/a Piggyback ) An entity will be extended the same pricing and terms of a contract entered into by another entity. Typically, Generally the originating 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 would otherwise not receive if they competed on their own. (1)

Cooperative Procurement Contracts It is a best practice to consider the use of cooperative procurement contracts, on a case-by-case basis, and only after proper due diligence has been performed. Cooperative procurement contracts are usually based on the combined requirements of multiple organizations. (2) Government entities can save time and money, obtain higher quality products and services, and standardize products and services by using cooperative contracts. Note: Not every agency permits the use of, or the participation in cooperative contracts. It is up to the procurement professional to ensure compliance with all applicable laws are met.

Due Diligence Procurement is responsible to perform due diligence:  Conduct market research, compare available contracts to make a determination if this is in the best interest of the college - conduct a cost analysis of competitive solicitation to that of a Piggyback contract  Certify the cooperative contract complies with the Annotated Code of Maryland and your Board Policies and Procedures.  Ensure the cooperative contract terms and conditions are incorporated into your contract, and equally as important, remove those which are not.  If necessary, create a Contract Addendum to be signed by both the supplier and procurement

Contract Documents Obtain copies of the contract documents to keep with your file:  Verification of Full and Open Competition  Solicitation  Addenda  Bid Tab/Summary  Winning Bid or Proposal  Contract Award  Insurance Certificate  Bond Certificates as required by the contract  Federal Suspension/Debarment check on the Awarded Vendor

Project Manager: Contract Administration  Customer Satisfaction  Continuous Improvement  Document Vendor Performance  Non-compliance with specifications  Deviance from contract  Delivery  Shortages  Pricing  Ensure invoices reflect the contract price structure

Cooperative Contract  A current contract for products or services that has been competitively bid by public or nonprofit agency  May be awarded on behalf of a consortium, led by a public or nonprofit agency cooperative organization  May be a contract formed by another State, Municipality, County, etc. and does not have to be Higher Education  Contains an intergovernmental cooperative purchasing clause expressly permitting other public or non-profit agencies to “piggyback” the contract  Achieves cost savings  Saves time *Be Advised:  It is not a negotiated contract  Make certain the contract terms are beneficial to your agency

Construction and Cooperative Contracts The market and organizational structure of the construction industry is diverse, therefore cooperative relationships are not as easily achieved in construction Implementation of cooperative relationships requires changes in several elements of the traditional procurement procedures to include a long-term perspective; the willingness to use a collaborative working arrangement Early involvement with Facilities, Internal Client and your College’s Procurement Director foster collaborative working arrangements to work through procurement procedures to affect project results Each project is different – learn from each project to facilitate continual improvement

Samples - Contract Rider Clauses 1.Prince George’s Community College: COOPERATIVE PURCHASE AGREEMENT: WHERE THIS CONTRACT IS PREPARED ON BEHALF OF PRINCE GEORGE’S COMMUNITY COLLEGE, PRICING WILL BE EXTENDED FOR USE BY OTHER STATE OF MARYLAND COMMUNITY COLLEGES, OTHER STATE OF MARYLAND AND LOCAL GOVERNMENTAL AGENCIES, MARYLAND SCHOOL DISTRICTS, AND THE UNIVERSITY OF MARYLAND SYSTEM UNLESS THE CONTRACTOR SPECIFICALLY PROHIBITS OR LIMITS SUCH ARRANGEMENTS IN HIS/HER PROPOSAL. FUNDING FOR OTHER AGENCIES WILL BE THE SOLE RESPONSIBILITY OF THE RESPECTIVE AGENCY. 2. Mid-Atlantic Purchasing Team:

Cooperative Organizations State of MD Department of General Services (DGS) s.html s.html Department of Budget & Management (DBM) Baltimore Regional Cooperative Purchasing Committee (BRCPC) Education & Institutional Cooperative Services (E&I) National Association of State Procurement Officials (NASPO) U.S. Communities Western States Contracting Alliance (WSCA)

National IPA* National Joint Purchasing Alliance (NJPA)* The Cooperative Purchasing Network (TCPN)* (*In November/2014, these 3 organizations formed an independent alliance) Local County Board of Education (K-12) Library General Services Administration (GSA) Only the following GSA Contracts may be utilized: IT Schedule 70; Emergency Preparedness Schedule 84; Weapons for Mass Destruction; or Items for Drug Interdiction

Questions

Reference Appendix (1)Adapted from NASPO. (2006). Strength in numbers: An introduction to cooperative procurements. (2) NIGP (2010). Public procurement dictionary of terms. Herndon, VA: NIGP.