March 2006Cooperative Procurements Update1 Cooperative Procurements: An Overview Vern Jones - Alaska – Moderator Robert Bourne – GSA Paul Stembler – Minnesota NASPO 2006 Marketing to State Governments Meeting

March 2006Cooperative Procurements Update2 The Basics… How do cooperative contracts begin… At least two (2) governmental entities decide that working together on a purchase(s) is better than doing it alone Some statutory or ordinance-based authority to work together exists Example: some states cannot “lead” a procurement but can participate in one. Some kind of structure is defined and formalized

March 2006Cooperative Procurements Update3 Cooperative Models –Federal GSA Schedules –State Governments NASPO/WSCA Individual State Programs –State and Local Governments NIGP/US Communities, etc –Higher Education Higher education compacts (MHEC, WICHE, etc.)

March 2006Cooperative Procurements Update4 Some Cooperative Purchasing Terms Cooperative Purchasing – governmental entities sharing contracts, to increase volume and save costs Lead State/Entity - the state/entity in the multi-state model conducting the cooperative solicitation and centrally administering any resulting price agreement.

March 2006Cooperative Procurements Update5 Some Terms That Get Confusing Purchasing Entity - in multi-state model a Participating State/entity or another legal entity, such as a political subdivision, properly authorized by a Participating State to enter into a contract for the purchase of goods described in the solicitation. Participating Addendum – an agreement executed by a contractor and a Participating State that clarifies the operation of the price agreement for the state concerned, e.g. ordering procedures specific to a state, or adds other state-specific language or requirements that are not in the original contract.

March 2006Cooperative Procurements Update6 Multi-State Cooperative Models

March 2006Cooperative Procurements Update7 Multi-State Cooperative Models WSCA Model –WSCA, comprised of the western NASPO region, was formed in October –The purposes of WSCA are to establish the means by which participating states may join together in cooperative multi- state contracting, to ensure the commitment of each participating state, and to provide regular and ongoing assistance to participating states in researching, developing, and administering procurement and contractual specifications and requirements.

March 2006Cooperative Procurements Update8 WSCA membership consists of the principal procurement official that heads the state central procurement organization, or designee for that state, from the states of AK,AR,CA,CO,HA, ID,MN,MT,NV,NM,OR,SD,UT,WA, and WY. WSCA Model

March 2006Cooperative Procurements Update9 Creating a “WSCA contract” is the result of a series of actions taken by and approved by the WSCA state directors Ideas are generated from participating states and regions Upcoming opportunities are posted under the “Plans” section on the WSCA website: All contracts are competitively bid, evaluated and awarded

March 2006Cooperative Procurements Update10 How can vendors establish themselves on a multi-state contract? RESPOND TO SOLICITATIONS –If you are asked in solicitations if you would be willing to extend the pricing to “cooperative members” – say, Yes –Many multi-state contracts start out as a contract within a state that produces good outcomes

March 2006Cooperative Procurements Update11 WSCA Solicitation Process Solicitations are posted/advertised on the lead state’s website. Other states may advertise as well depending on their statutory requirements There is no WSCA “bidders list” to be placed on, however individual states may distribute notification via their own bidders list.

March 2006Cooperative Procurements Update12 WSCA Award Process Lead state staff and staff from other states participating in the evaluation make an award recommendation to the lead state –Some state laws require participation in the evaluation to permit a state to use contracts Lead state brings recommendation to WSCA state directors for final approval Once award recommendation is approved, lead state proceeds to enter into contract(s) and other participants issue participating addenda, as required

March 2006Cooperative Procurements Update13 Contract Administration Lead state administers contract Lead state provides ongoing analysis of sales and negotiates prices based on sales volume

March 2006Cooperative Procurements Update14 Amendments –Lead state is responsible for amending base contract as required (if amendment has substantial impact on contract, amendment should be pre- approved by WSCA state directors) Extending Contract/Re-soliciting Contract –Extensions (to term) of contract are pre-approved by WSCA state directors –Re-soliciting a contract follows the process described above (only the lead state creates the “forms”)

March 2006Cooperative Procurements Update15 Managing Participation The lead state is responsible for managing participation of non-state level entities from non-WSCA participating states

March 2006Cooperative Procurements Update16 Status of Current WSCA/NASPO Contracts

March 2006Cooperative Procurements Update17 All information on current WSCA/NASPO contracts can be found on the NASPO website ( under “Cooperative Purchasing” or…

March 2006Cooperative Procurements Update18 By visiting the WSCA website ( and selecting a contract from the drop-down menuwww.aboutwsca.org List of current contracts and contact information is available on your handouts.

March 2006Cooperative Procurements Update19 WSCA Potential Cooperative Opportunities The following “opportunities” are currently actively being consider by WSCA [Legal stuff – this is not an offer or is it a guarantee that ANY solicitation will actually occur]

March 2006Cooperative Procurements Update20 WSCA Potential Cooperative Opportunities: Satellite phone; satellite phone unit, service and support Print management assessment; manufacturer-neutral, 3 rd party assessment of print needs – networked, photocopy, fax, scanning – multi-functional approach Ammunition Reload Supplies General law enforcement equipment and supplies Products for non-arresting authorities Office supplies

March 2006Cooperative Procurements Update21 WSCA Potential Cooperative Opportunities: Purchasing cards (followed by card acceptance and debit cards) Express mail service, small package delivery Quick service copying Janitorial supplies, paper & plastic Consumer (small) electronics Foodservice small ware and disposables, small and large equipment and Canteen items Tires Qualified Products Lists (QPL’s are used by DOTs in contracting)

March 2006Cooperative Procurements Update22 WSCA Potential Cooperative Opportunities: Safety vests Human services arena EBT cards

March 2006Cooperative Procurements Update23 Further questions?

March 2006Cooperative Procurements Update24 Minnesota Multi-State Contracting Alliance for Pharmacy (MMCAP)

March 2006Cooperative Procurements Update25 Managing State Cooperative Model MMCAP model –MMCAP is a cooperative of 43 states and the City of Chicago. Contractually binding joint powers agreements between Minnesota and the participating states prescribe the relationship and funding structure. There is no fee to the states or the facilities to participate. Contracted manufacturers pay negotiated administrative fees of up to 2% of their contract sales. The administrative fees fund all operating costs of the program. Administrative fees in excess of program operating costs are credited back to participating facilities under the terms of the joint powers agreements based on the facilities' share of contract purchases.

March 2006Cooperative Procurements Update26 Participation not mandatory or binding –Members (and facilities within a member) choose to participate, but do not have to –No commitment of volume –Members can “join” whenever the JPA is executed –Members or facilities within a member can leave whenever they choose Solicitation and Award Process is determined by a single set of statutory requirements –Based on statutory requirements of members, participation at several stages may reflect group process –May be advertised by multiple members –Multiple awards

March 2006Cooperative Procurements Update27 Contract Administration and Management –Single entity responsible for overall administration and management –Single point of entry into use of a contract – Member or not a member? –Ordering/payment issues at/with facility or member –Purchasing decisions are made by individual participating facilities, not by the managing entity and practice and use issues are facility or member unique issues

General Services Administration Cooperative Purchasing for Information Technology: Leveraging Buying Power to Save You Time and Money Cooperative Purchasing Leveraging Buying Power to Save You Time and Money

e-Gov Act of 2002 Section 211 authorized GSA sales of Schedule 70 IT products and services to State & Local Governments through the introduction of Cooperative Purchasing. Program sales commence May 2003 IT products and services [no other products/services] Background of Cooperative Purchasing

Who’s Eligible? The 50 states All counties, municipalities, cities, towns and townships Tribal Governments Public Authorities (Public or Indian Housing agencies under the U.S. Housing Act of 1937) Public authorities, school districts, and colleges

Voluntary –No obligation by state and/or local governments to use the schedule. –Contractors decide whether to accept orders from state and local governments. About 2300 contractors have modified their contracts to participate in Cooperative Purchasing State & Local Use of Schedule 70

5-year contracts with three 5-year periods Streamlined acquisition program Commercial Catalog – approved contractors Prices already determined fair & reasonable Continuous opportunity for competitive prices Schedule solicitation – What is a Schedule?

How can Cooperative Purchasing Benefit the Customer? Monetary Savings Streamlined Process Commercial Items e-Tools

Fair & Reasonable Prices Greater Discounts for Large Buys Low Administrative Costs Huge Selection GSA has Taken Care of the Basics Makes Buying Easy for Customers Why Should State and Local Governments use GSA?

Small Business Participation  70%-75% of Schedule 70 contracts are held by small businesses  Over 30% of schedule sales are to small businesses  Agency orders count toward meeting Small Business goals

Getting on Schedule 1.Obtain copy of Solicitation from IT Center website: or submit offer via e-offer: 2.For assistance in filling out Solicitation call Submit offer. When requested, turn in additional needed information to Contracting Officer. How to get a schedule contract

State/Local Training FSS Center for Acquisition Excellence – On-line “Cooperative Purchasing” course On-line “Using GSA Schedules” course Cooperative Purchasing Brochure

Points of Contact IT Center POC: Tricia ReedThomas Corcoran Benjamin Taylor