WSCA-NASPO Cooperative Purchasing Organization, LLC Cooperative Contracting (What did we get into?) Ronda Miller Nevada Purchasing Paul Stembler Cooperative Development Coordinator October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Agenda Introductions Paul Contract Awards and Status Ronda Cooperative Contracting and Contract Participation Process eMarket Center Kate Offerdahl Questions October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Ronda’s Stuff Master Service Agreement (MSA) Contracts have been fully executed. Start date of November 1, 2013 thru October 31, 2017 with the option to renew for an additional 2 years. Nevada Participating Addendums start dates are: Fire ~ November 1, 2013 Security ~ December 1, 2013 Use of Sub-Contractors ~ It is the vendors responsibility to make sure if you use Subs that they are licensed and insured per the RFP requirements. October, 2013 Cooperative Contract Participation

What is in it for me (us) to participate in this contract In CY 2012, WSCA-NASPO had $8.5 billion in sales passed through our cooperative contracts Better than 50% of those sales are NOT from state agencies (in other words, local governments and other eligible entities) Currently have over 61 contracts up and running Have a free eMarket Center that allows participating states to allow direct, electronic access to contractors Participation by providers is expected, you will be contacted By one count (which we don’t do regularly), over 15,000 separate entities use our largest cooperative contract In many states, a state’s participation allows participation of ALL of its local governments and other eligible entities. October, 2013 Cooperative Contract Participation

National Association of State Procurement Officials The National Association of State Procurement Officials (NASPO), Inc. was formally established on January 29, 1947, in Chicago, Illinois.    NASPO is a non-profit association dedicated to strengthening the procurement community through education, research, and communication. It is made up of the directors of the central purchasing offices in each of the 50 states, the District of Columbia and the territories of the United States. NASPO is an organization through which the member purchasing officials provide leadership in professional public procurement, improve the quality of procurement, exchange information and cooperate to attain greater efficiency, economy, and customer satisfaction. NASPO is divided into four geographic regions – Eastern, Southern, Midwestern and Western. These regions have provided a means for supporting education and communications within NASPO. NASPO contracts with AMR Management Services to “manage” the association.     October, 2013 Cooperative Contract Participation

Cooperative Contract Participation October, 2013 Cooperative Contract Participation

Cooperative Purchasing Organization, LLC NASPO 501(c)(3) professional association of 56 state chief procurement officials AMR A professional association management firm hired by the NASPO board to run NAPSO and by the WSCA-NASPO CPO to assist in running the LLC WSCA-NASPO Cooperative Purchasing Organization, LLC A 501(c)(3) wholly owned by NASPO A management board of (currently) 21 NASPO directors leads the LLC WSCA-NASPO cooperative contracts actually (individually) belong to the designated LEAD STATE. That state controls and manages the creation, publishing, evaluation, awarding and on-going management of the cooperative contract. WSCA-NASPO, through coordination by AMR and the WSCA-NASPO Cooperative Development Team (that is Doug, Kate, Paul, Tim, Richard Carlson and Richard Pennington) provide coordination, facilitation and assistance to the lead states, the Sourcing Teams and participating entities. October, 2013 Cooperative Contract Participation

A Short History of Cooperative Contracting inside NASPO The Western States Contracting Alliance (WSCA) a cooperative of 15 state procurement directors (the Western Region and a two others (SD & MN)) whose sole focus was creating and managing COOPERATIVE CONTRACTS was created in 1993 NASPO was always the legal entity in the background Geography (distance and size) and population density were key factors WSCA directors talked monthly on a conference call History (talking with each other almost monthly since 1993) makes it appear “easier” for the western region to make things work As utilization of the cooperative contracts grew, the other three NASPO regions started sponsoring cooperative contracts through the NASPO Cooperative Committee In 2012, under the leadership of Ron Bell, Virginia CPO and NASPO President, and Kent Beers, Utah CPO and WSCA Chair, we spent almost a year examining alternatives and options. October, 2013 Cooperative Contract Participation

Cooperative Contract Participation 2013 a year of transitions On December 31, 2012, the Western States Contracting Alliance agreement was terminated On January 1, 2013, the NASPO Cooperative Purchasing Organization, LLC (dba: WSCA-NASPO Cooperative Purchasing Organization) was activated The LLC is a wholly owned subsidiary of NASPO (so still a 501(c)(3) and tax exempt) There is a 21 member Management Board of the LLC which is currently composed of the 15 directors from what was WSCA and then 2 directors from each of the other 3 regions Over the next 10 years it is intended that the membership shift to 4 directors from each of 4 NASPO regions (or 16 members) The LLC has a group of contractors called the WSCA-NASPO Cooperative Development Team (WNCDT) headed by the LLC CEO (Doug Richins) the support, facilitate, mentor and coordinate state staffs October, 2013 Cooperative Contract Participation

Lead State (in WSCA-NASPO model) “Lead State” issues solicitation and contract for the group Participation by other “states” from the beginning Participation (through Sourcing Team) in creation of solicitation, evaluation, award, and on-going contract management Other entities can “join” with the permission of that state chief procurement official Contractors are encouraged to accept additional terms or conditions imposed by entities joining after solicitation was closed October, 2013 Cooperative Contract Participation

WSCA- NASPO PROCUREMENT COOPERATIVE Enabling cooperative procurements among NASPO Member States NASPO – 501(c))(3) professional association of state chief procurement officials – formed in 1947. 50 states, the District of Columbia and the five organized territories are eligible to be members of NASPO. The WSCA-NASPO Procurement Cooperative has been established through a Memorandum of Agreement among all 56 members NASPO is organized regionally (East, South, Midwest and West) Regions act as incubators and workgroups to create cooperative opportunities WSCA-NASPO Cooperative Purchasing Organization Management Board acts as coordinator, facilitator and integrator of a uniform process Provides a vehicle for all NASPO states to participate in cooperative purchasing, but does not commit states to expenditure of any funds October, 2013 Cooperative Contract Participation

Who Can use a Cooperative? There are 56 members of the WSCA-NASPO Cooperative, they love each other dearly but there are 56 sets of rules That is both the good news and the bad news Eligibility is not, narrowly speaking, a provider’s problem But, it will be a real burden if it goes wrong WSCA-NASPO Cooperative Development Team will work with you to make it a success Don’t let your sales force get in the fray The issue is based on “legal relationship” not “government price” It can be a nasty mess – especially after an audit finding has been issued The central issue for any purchase: the availability of a price from you IS NOT the authority for the entity to spend money October, 2013 Cooperative Contract Participation

Next Steps…… Each participating state (eligible political subdivision or other eligible entities using the contracts separately) needs to execute Participating Addendum(s) with selected contractors Participating Addendum Process to follow October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Participating Addendums Through the Participating Addendum, states may: Select Contractors Include their own Administrative Fee Include required (unique) terms and conditions Identify options for political subdivisions Request entity-specific reporting or other requirements October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Eligibility Process In all cases STATE CHIEF PROCUREMENT OFFICIAL will have the final say on who can and cannot participate within a state The WNCDT will notify State Chief Procurement Officials directly to start the process once Master Agreements are fully executed All 50 states, the District of Columbia and the five organized territories and local governmental or other eligible entities are able to use any WSCA- NASPO cooperative contract October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Participation Levels Participation at different levels: State signs a Participating Addenda for entire state and its cooperative purchasing venture Every legally eligible entity in the state can use State signs a Participating Addenda ONLY for non state entities Every legally eligible entity that is not a STATE agency can use State does not sign a Participating Addenda Every political subdivision PA within that state must be approved by the state chief procurement official Sometimes individually Sometimes by entity (cities, counties, etc.) October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Participation Process - Details How do we get people signed up? 1. Email request from entity (can be through providers) as long as these details are included: contact individual’s name, full name of entity, phone number, email address, physical address 2. WNCDT emails state director and request authorization for participation 3. WNCDT emails both provider(s) and entity with authorization to proceed to complete the participating addendum 4. Entity completes provider’s draft participating addendum (from the WNCDT), negotiates, signs and forwards to contract providers point of contact [this can be done by scanning signed documents if permitted by the entity] October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Details Continued How do we get people signed up? 5. Contract providers point of contact signs participating addendum and forwards to WNCDT 6. WNCDT will annotate on participating addendum state authorization, create a PDF file of the participating addendum and the state authorization 7. WNCDT will forward copies of the PDF file to entity, contract providers point of contact and the entity October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Then What? Participating addenda will be posted on the WSCA-NASPO website -This is done to provide easy, direct access for your agencies, political subdivisions and other entities eligible to participate under your authority Providers should create and maintain state specific landing pages from their main contract landing page October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Administrative Fees a. The Contractor shall pay to the WSCA-NASPO Cooperative Purchasing Organization, or its assignee, a WSCA-NASPO Administrative Fee of one-quarter of one percent (0.25% or 0.0025) no later than 60 (sixty) days following the end of each calendar quarter. The WSCA-NASPO Administrative Fee shall be submitted quarterly and is based on sales of products and services (less any charges for taxes or shipping). The WSCA-NASPO Administrative Fee is not negotiable. This fee is to be included as part of the pricing submitted with proposal. b. Additionally, some states may require an additional fee be paid directly to the state on purchases made by Purchasing Entities within that state. For all such requests, the fee level, payment method and schedule for such reports and payments will be incorporated into the Participating Addendum that is made a part of the Master Agreement. The Contractor may adjust the Master Agreement pricing accordingly for purchases made by Purchasing Entities within the jurisdiction of the state. All such agreements shall not affect the WSCA-NASPO Administrative Fee or the prices paid by the Purchasing Entities outside the jurisdiction of the state requesting the additional fee. October, 2013 Cooperative Contract Participation

WSCA-NASPO Summary and Detailed Usage Reports In addition to other reports that may be required by this solicitation, the Contractor shall provide the following WSCA-NASPO reports.   a.  Summary Sales Data.  The Contractor shall submit quarterly sales reports directly to WSCA-NASPO using the WSCA-NASPO Quarterly Sales/Administrative Fee Reporting Tool found at http://www.naspo.org/WNCPO/Calculator.aspx.  Any/all sales made under the contract shall be reported as cumulative totals by state.  Even if Contractor experiences zero sales during a calendar quarter, a report is still required. Reports shall be due no later than 30 (thirty) days following the end of the calendar quarter (as specified in the reporting tool).   October, 2013 Cooperative Contract Participation

Cooperative Contract Participation Detailed Sales Data. Detailed Sales Data.  Contract Vendor shall also report detailed sales data by: (1) state; (2) entity/customer type, e.g. local government, higher education, K12, non-profit; (3) Purchasing Entity name; (4) Purchasing Entity bill-to and ship-to locations; (4) Purchasing Entity and Contract Vendor Purchase Order identifier/number(s); (5) Purchase Order Type (e.g. sales order, credit, return, upgrade, determined by industry practices); (6) Purchase Order date; (7) Ship Date; (8) and line item description, including product number if used.  The report shall be submitted in any form required by the solicitation.  Reports are due on a quarterly basis and must be received by the Lead State and WSCA-NASPO Cooperative Development Team no later than 30 (thirty) days after the end of the reporting period.    Reports shall be delivered to the Lead State and to the WSCA-NASPO Cooperative Development Team electronically through a designated portal, email, CD-Rom, flash drive or other method as determined by the Lead State.   Detailed sales data reports shall include sales information for all sales under Participating Addenda executed under this Master Agreement. The format for the detailed sales data report is in shown in Section __ Attachment ___. c. Reportable sales for the summary sales data report and detailed sales data report includes sales to employees for personal use where authorized by the solicitation and the Participating Addendum. Report data for employees should be limited to ONLY the state and entity they are participating under the authority of (state and agency, city, county, school district, etc.) and the amount of sales. No personal identification numbers, e.g. names, addresses, social security numbers or any other numerical identifier, may be submitted with any report.   d.  Timely submission of these reports is a material requirement of the Master Agreement. October, 2013 Cooperative Contract Participation

Cooperative Contract Participation For assistance please contact: -Paul Stembler, WSCA-NASPO Cooperative Development Coordinator (pstembler@wsca-naspo.org) October, 2013 Cooperative Contract Participation

Questions ??? pstembler@wsca-naspo.org Email me if you have any questions. Part of responsibilities as the WSCA-NASPO Cooperative Development Team is to assist potential vendors in participating in the cooperative process, so we might be useful contacts. We hope this has helped. October, 2013 Cooperative Contract Participation