November 8, 2011

 OSBI Facing Budget Shortfalls ◦ Hiring Freeze ◦ Vehicle and Equipment on Hold ◦ Training Budget Reduced ◦ Service Contracts Reduced ◦ Possible Furloughs  Products and Services

 Products and Services Used by OSBI  Compared Same or Like Items  Included Shipping Costs  Goal – Save Money

 Doing a Great Job  Mandatory vs Non-Mandatory  Best Interest of the State

 Lab Supplies - $80,000 more  Maintenance, Repair and Operations – MRO ◦ Thousands of Items – Impossible to Assure Lowest Price ◦ More Items Added – Trash Bags – Gallon  Cancelled Contract - $24.99  MRO - $59.05  136% Increase ◦ Exemption Requests – OSBI and Others

 Best Interest of the State ◦ Conditions Change ◦ Prices Fluctuate ◦ Fewer Providers Can Result in Higher Prices ◦ 5 Year Contract – No Incentive to Lower Price ◦ DCS Renegotiating - Not Realistic ◦ Large Vendor Pools vs. Small Vendor Pools ◦ Manufacturers Retail Price - Discount  Successful Mandatory Contracts ◦ Extensive knowledge and expertise ◦ Multiple commodities ◦ Time constraints

 1.5% Administrative Fee  Quarterly Reports  Must be Registered With DCS ◦ Even on contracts awarded at agency level ◦ Sole source vendors ◦ Other States

 Assists Persons with Developmental Disabilities  Support  Paying 1000% Higher Unreasonable  Exception for Price Not Possible

 Blu Ray Disks – Optical Optimum – 50 Pk ◦ State Use - $ ◦ Newegg.com - $ $.99 shipping - $38.98 ◦ Difference of 690%  #2 Pencils ◦ State Use - $.18 each ◦ Federal GSA Contract – Office Depot - $.02 (free shipping) ◦ Difference of 800%  Ink Pens – 1000%  Toner Cartridges and CD Sleeves – Almost 400%

 Trained to do Purchasing  Experts for Designated Agency  Conscientious About Getting Best Value for Taxpayer $  Should Be Given Opportunity to Buy at the Lowest Price  Exception Requests

 If Better Pricing From Open Market ◦ Allow Purchase From the One Who Provides Best Value for Taxpayer $ ◦ Without Exception Request ◦ Small % Markup in Calculation for Admin Fee and reporting requirements  Not Mandatory - Could Motivate Vendors to Bid More Competitively

THANK YOU