1. Introduction to Cooperative Purchasing and HGACBuy The H-GAC Cooperative Purchasing Program

2. What is Cooperative Purchasing?
Consortium or Group Buying pooling the purchasing needs to achieve better value through:
Lower prices
Increased response
Efficient use of time & resources
Effective application of expertise

3. Models of Cooperative Purchasing
3-Types
Collaborative Model
Third-Party Model
Hybrid Models

4. Collaborative Model Multiple entities join together Use of joint bids
Lead agencies take turns bidding
Use of standardized specifications
Commodity procurement more common
Better done locally or regionally

5. Third-Party Model One entity bids term contracts
All other entities purchase off the contracts
The third-party may not be a user
Flexibility through multiple configurations
Less input from end user agencies
Third-party may charge fee for operations

6. Hybrid Models Combines aspects of Collaborative & Third-party models
Use of host entity
Use of shared responsibilities through lead agencies
Piggy-backing is less formal

7. Model Comparison Collaborative Model Administrative work shared
No fees
Specific purchase
Local/regional based
More member control
Third-party Model
Host program handles administration
Typically charges fees
Blanket/term contracts
Not locally tied
Less control over procurement process

8. Analyzing a Cooperative Purchasing Program
Decisions must be made on which cooperative contract to utilize
Procurement process
Fees
Structure of program
Flexibility

9. WHAT IS H-GAC?
The Houston-Galveston Area Council is a Council of Governments and a Political Sub-division of the state of Texas.
H-GAC began with an Interlocal Agreement between 13 Gulf Coast Counties primarily to supply planning services to their region.
The agency operates under the direction of a Board of Directors made up of 36 elected officials.

10. What is the H-GAC Cooperative Purchasing Program?
Thirty three years ago, the Board of Directors decided that purchasing services were needed to help the region to keep pace with the regional growth surge that was outpacing the local governments’ capabilities.
In 1971, the Texas legislature passes the Interlocal Cooperation Act to promote activities among local governments across Texas
In 2001, legislation was passed to amend the “act” to allow for nationwide participation in the program.

11. Texas Interlocal Cooperation Act
Government Code, Chapter 791
“Increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state.” Amended September 1, 2001 to include states other than Texas.

12. What is required to participate in the H-GAC Cooperative Purchasing Program?”
Execution of Interlocal contract by local government officials

13. Advantages to Buying through the H-GAC Cooperative Purchasing Program (HGACBuy)
Time Savings
Volume purchasing & Discounts
3-Way Partnership between you, the end user, the Vendor and H-GAC
Dealing directly with purchasing professionals with more than 200 combined years of expertise.
Expedited procurement process.
Knowledge that all HGACBuy contracts have been awarded based upon a thorough competitive bid/proposal process.

14. Current HGACBuy Contracts
Ambulances & Fire Apparatus
Chem/Bio Detectors, Robots, Rescue, & Safety Equipment
Earth Moving & Construction Equip
Vehicles, Trucks, & Fleet Equip
Tractors, Mowers, Sewer Cleaning, & Street Maintenance Equip
Video Conferencing
Radio Communications & Interoperability Equip
9-1-1 Systems & Recording Equip
Refuse Collection Equip/Containers, & Sewer Inspection Systems
School & Transit Buses
Street Sweepers & Equipment Trailers
Video Surveillance & Traffic Signal Systems
Cell Phone & Mobile Satellite Communications

15. Current Service Contracts
Lease Purchase Financing
Foodservice Delivery
Consulting
Environmental Consulting
Community Planning
Homeland Security Consulting & Training
Insurance Consulting
Marketing & Public Relations
Electricity Aggregation

16. HGACBuy Cooperative Purchasing Program Update
Over 1,600 End Users
Over 250 Contractors
37 Major Product Categories
$216 million in Products & Services 2005
Activity in Texas & 23 other States

17. Order Activity 2005

18. The Bid Process Products/services researched
Draft specification issued
Solicitation advertised
Pre-bid conference held
Final specification issued
Bids publicly opened
Bids evaluated, award recommendations made
H-GAC Board of Directors makes awards
Contracts issued

19. The Procurement Process
Discuss product/service with contractor
Contractor issues detailed price quote
Make purchase order out to contractor
Send copy of PO to H-GAC
Contractor delivers and invoices
Pay contractor (including administrative fee)

20. Procurement Flexibility
Most contracts are bid with base line items and correlating options
The options submitted with the bid are evaluated and considered “published options”
For additional flexibility, options may be added to an order that were not included in the bid – “unpublished options”
Change Order rules are applied to unpublished options – limiting their use to 25% of an order

21. Administrative Fees The program is “pay as you go”
Cost of operations is covered by an administrative fee issued on each order
Administrative fees are either a flat amount per unit, or a percentage of the overall order

22. The HGACBuy Bid Process:
Meets the standards that end user would normally utilize
Supporting documentation
Approval through governing body
End user is substituting the bid process they would normally perform for the process now undertaken by the H-GAC Cooperative Program

23. Usage Fees Are fees actually charged? Who pays for the fees?
End User
Vendor
How much is the fee?
Customer service
Ease of use

24. Program Structure History & experience of the cooperative program
Staff size & expertise
Where do the contracts come from?
Knowledge of the products
Contract administration
Problem resolution

25. HGACBuy Offers Flexibility
End User has the ability to purchase item as needed which include the base items & options under contract
Customization
3-Way Partnership between End User, Vendor and
H-GAC

26. Delivering Value
Cooperative contracts are only of use if they deliver value
Value to the End User
Value to the Contractor
Stay in the loop
Communicate frequently
Three-way partnership must be fostered

27.
Web site contains pricing & contact information
Future functionality may include:
Online quotes
Product comparisons
Order status
Contract information

28. Law Enforcement, General Purpose Vehicles, and Buses
Staff Cars
Light Trucks
Police Cars
Vans
School Buses

29. EMS and Fire Apparatus Ambulances (Types I,II,II)
Pumper and Tanker Fire Apparatus
Aerials & Ladder Platforms
Rescue, Haz-Mat, & Command Centers
Brush/Wildland Fire Apparatus

30. Medium and Heavy Duty Trucks, and Specialized Bodies
Medium Duty Chassis
Heavy Duty Chassis
Refuse Collection Bodies
Sewer Cleaners
Van Bodies
Dump Bodies, Aerial Lifts, Cement Mixers,
Wreckers, & Water Trucks

31. Communications and Emergency Equipment, and Supplies
Radios, Base Stations & Communication Systems
Defibrillators
SCBA’s
9-1-1 Systems
Wireless Communications Services
Chem/Bio Detectors & EOD Robots

32. Public Works and Heavy Equipment
Earth Moving Equipment
Tractors & Mowers
Traffic Signals Controls
Street Maintenance Equipment
Street Sweepers
Equipment Trailers & Refuse Containers

33. Security and Electronic Equipment
Security Video & Access Control Equipment
Traffic Signals Controls
Auxiliary Power Generators
Sewer Video Inspection Systems

34. Consulting Contracts Insurance Consulting Environmental Consulting
Homeland Security Consulting & Training
Community Planning

35. Service Contracts Lease Purchase Financing Electricity Aggregation
Reverse Auction Services
Food Products & Equipment
Marketing and Communications
Public Relations
Video Conferencing

36. HGACBuy is a proud member

37. HGACBuy
The H-GAC Cooperative Purchasing Program (HGACBuy) recognizes purchasing as a universal profession and has adopted the H-GAC Code of Ethics as stated in the H-GAC Procurement Policy, revised edition dated January 1, 2006
As a member in good standing of the National Institute of Government Purchasing, (NIGP) HGACBuy recognizes that the NIGP sets the universal standards for government procurement and therefore, HGACBuy and its employees are committed to the NIGP Code of Ethics and its principals
“Our goal is to provide to all of its members, quality products and services, by reputable vendors, through cost effective, ethical, moral and prudent procurement standards”

38. Questions Contact: HGACBuy Program Staff Phone: 800-926-0234
Fax:
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