Leveraging Choice in Procurement When are cooperative agreements right for my organization? Presented by Duff ErholtzDave Duhn Manager of Membership ServicesLead Contract Manager

Today’s Agenda…. WHAT WE HOPE TO COMMUNICATE 3 When are Cooperative agreements right for you Where it began – Why is it changing? Evolving? How are they tools in your procurement tool belt? Dealing with reductions in – staff – budgets - time Evaluating cooperative agreements Case Studies Feedback from the audience

But first… Who are we? 4 A Municipal Contracting Agency Established under Minnesota Statute 123A.21 Enabled by Minnesota Statute (Joint Powers Law) Follow Uniform Municipal Contracting Law under Minnesota Statute

And more importantly, who are you?! 5 How long have you been in procurement? How much experience do you have with Cooperative agreements? Will this be Cooperative Purchasing 101? Or 501?

What is a Cooperative Agreement? Lets Define: Local Regional National

History of Cooperative Agreements… 1)Where it all began 2)Why it is changing…Evolving?! 3)What does the future hold

COOPERATIVE AGREEMENTS ARE TOOLS IN YOUR PROCUREMENT TOOL BELT!

WHY MIGHT I NEED TOOLS? 1)Reduced staff 2)Reduced budgets 3)Time constraints – “I need it now!”

WHY MIGHT I NEED TOOLS? 1)Lack of expertise – writing and evaluating the RFP/IFB 2)New to the Profession of procurement! Use the Coop’s to “stay afloat” until you learn to swim!

WHY MIGHT I NEED TOOLS? What adversity are you now facing in your job – time, lack of support, lack of resources, etc…that is FORCING you to seek new ways to … “GET ER DONE…”

Have you ever been burned by “low bid”? Brand preference Dealer preference Life cycle costing Local preference (dealer!) More subjective reasons?

IS IT POSSIBLE TO HAVE TOO MANY CHOICES? IF Choice Breeds Competition…

Start With The Actual Contract! Evaluating Cooperative Agreements

Written With Cooperative Language?

Evaluating Cooperative Agreements Source of The Contract

TO BID, OR NOT TO BID… WHEN IS THE QUESTION? Reinvent The Wheel -vs- Choose A Cooperative Agreement

70% OF WHAT Cory Harms PURCHASES, EVERY ONE OF YOU PURCHASE! Focus on the 30% that are unique to your organization

WHAT ARE ADDITIONAL BENEFITS OF UTILIZING COOPERATIVE AGREEMENTS? 1)CLOUT! Leverage your spend in the marketplace 2)Reduction of processing expense and time 3)Matching supply to demand 4)Improving customer service… (YES! Our departments are customers!)

Case Study #1 Large University Technology contract about to expire Current vendor has contract solution

Case Study #2 Municipal Decides to only shop contract solution(s) “Bake-off” of major national contracts

Case Study #3 City Wants to purchase off contract Items to be purchased are NOT on contract Purchase would be solely “sourced goods”

Case Study #4 University Initially tries to NOT go to RFP and just compare contract solutions Feels local pressure to go to bid At Pre-Bid 40+ vendors attend Now believes contract is “best” solution

Case Study #5 K-12 school Natural disaster destroys playground 60 days until school starts Purchases off contract

Case Study #6 K-12 school Complicated technology solution for multiple locations Unsure of the scope of the ongoing project Selects contract solution to assure pricing containment for ongoing implementation

Case Study #7 City State has contract Items to be purchased NOT on state contract Contract solution used as a “gap filler”

Let’s hear from you…

So what did we learn? Contract Purchasing Saves time? Saves money? Leverage expertise of others? Avoids struggle(s) with “lowest responsible bidder”? Allows “CHOICE”?

More questions?

Don’t hesitate to reach out. Duff Erholtz Manager of Membership Office Cell David Duhn Lead Contract Manager Office: Cell: