1. Regional Contracting and Supplier Diversity NAEB Regional Meeting Ocean City, Maryland October 7, 2004 Presenters Gary Link, Educational & Institutional Cooperative Service (E&I) Ralph Maier, University of Pennsylvania

2. E&I 2004 Contract Goals   Expand & Diversify the Contract Portfolio   Implement E&I Exchange   Evaluate & Implement Regional Contracting Opportunities   Implement Reverse Auctions   Implement State Compliance Initiatives

3. Regional Contracting

4. Benefits of Regional Contracting   Focus on regional based product/services   Contract management and administration   Supplier diversity   Resource re-allocation   Indirect cost avoidance   Increased direct cost avoidance   Expedite solicitation process

5. Elements for Regional Contracting   Consensus with members to commit to project   Small group focused RFP teams   Detailed spend analysis   Detailed specifications   “Best practice” evaluation matrices   Comprehensive member communication plan   Post-award contract management

6. Current Regional Models   Philadelphia Area Collegiate Cooperative   Western Region   CICPC   Texas HUB

7. Member Roles and Responsibilities   Determine products/services for participation   Source prospective suppliers   Aggregate/commit volume   Provide data for spend analysis   Assist with development of specifications   Review RFP document prior to release   Participate in evaluation process   Make award recommendations

8. E&I Roles and Responsibilities   Regional contracting representative assigned to regional group   Collaborate with group regarding their needs   Coordination of RFP Teams   Conduct spend analysis for all upcoming solicitations   Aggregate volume   Pre and Post benchmark solicitations/contracts   Facilitate solicitation process   Prepare, issue and receipt of RFP document   Contract administration and management   Enhance the Supplier Diversity Program

9. Philadelphia Area Collegiate Cooperative (PACC)   Regional group purchasing initiative founded in 2000 and based in Philadelphia   14 members (13 Philadelphia based institutions and Princeton University)   Formed to better leverage member resources and buying power   Support for supplier diversity in all bidding events   Request for Proposals used for all member requirements but successful bidder enters into institution specific contracts   Reverse auction technology used for competitive bidding events when appropriate

10. PACC Overview   PACC “Chair Person” is appointed to two year term   Formal By-Laws, competitive bidding and contract award procedures are in place to manage all initiatives   Representatives from each member institution attend monthly working meetings   Commodity teams are created to handle each commodity initiative   Additional staff resources are recruited as subject matter experts   Pre-commitments are required for all commodity initiatives

11. PACC Accomplishments   PACC contracts available for 14 commodities   4 commodity contracts competitively bid and awarded for a second time   3 new members added in 2004   15 commodities targeted for future contracting opportunities   3 RFPs currently in development   Approximately $1M in documented product cost savings   New professional purchasing services partnership with the Educational & Institutional Cooperative Service (E&I)

12. PACC & E&I   Partnership agreement initiated in August 2004   E&I partnership enables PACC members to increase capacity for competitive bidding events without additional commitment of resources   E&I will recruit additional buying commitments from other local institutions for specific commodity events and handle all RFP activities   PACC retains all decision making authority   Initial RFP for cylinder gas to be issued in late October (event to include Yale University)   Additional commodities currently in development

13. Benefits to PACC   Supports transition from tactical to strategic purchasing   Maximizes opportunities with same or less resources   Increases leverage with local supplier community   Enhances cooperation between member institutions (best practices, shared technologies, etc..)   Cost savings   Additional information is available at: www.purchasing.upenn.edu/pacc

14. Supplier Diversity

15. E&I Supplier Diversity Program   The E&I Supplier Diversity Program represents a belief that we are an organization dedicated to being socially responsible.   The program’s primary purpose is to ensure that the suppliers of goods and services to our members include certified disadvantaged businesses owned by minority groups and women.   The objective of this initiative is to source and mentor to disadvantaged business enterprises so that the competitive pool of suppliers mirrors the diverse environment of our members.

16. Supplier Diversity Strategy   The E&I strategy incorporates a four-prong approach that includes:   Identifying and categorizing diverse suppliers   Sourcing and contracting with diverse suppliers   Mentoring programs   Sustaining the diversity program

17. Identify and Categorize   The E&I Contracts department will utilize the following methods for identifying these suppliers:   The National Minority and Women-Owned Business Directory   The National Minority Supplier Development Council and Regional Councils   Small Business Administration   Membership

18. Sourcing   It is the E&I policy to include disadvantaged business enterprises among its sources of supply. We will accomplish this through the following methods:   Advertising solicitations in diversity publications and through the SBA   Membership   Relationships with Diversity Councils

19. Mentoring   E&I develops relationships with diverse suppliers through education and mentoring. Through education and mentoring, we increase diverse supplier sourcing efforts and help prepare these suppliers to be able to compete effectively in higher education procurement process.   NMSDC Membership   Diversity Events and Seminars   Assistance with Certification Requirements and Processes   Development of Suppliers

20. Sustaining the Program   In order to have an effective program measures must be established to maintain and grow the program. Measures of continued success of the E&I program depend upon the implementation and monitoring of the following:   Participation/Inclusion of diverse suppliers in solicitations   Contract opportunities both nationally and regionally for diverse suppliers   Effective Member communications   Ability of awarded suppliers to achieve certifications   Participation of diverse suppliers in educational events   Development and implementation of mentoring programs   Maintenance of the diverse supplier database

21. Supplier Diversity Advisory Team Lorelei Meeker, C.P.M.- Indiana University Marty Newman, University of Maryland College Park Alan Philips, C.P.M.- University of Houston Rob Halter, IUPUI Patricia Menguito, University of Illinois at Chicago Ed Kochert, IU Southeast Sue Saliee, EIU Mary Ellen McClettan, Emory Eddie Jackson, RIT Ernest Webster, University of Arizona David Jones, Vanderbilt Walter Werner, Carnegie Mellon Juliana Huehn-Johnson, USC

22. Questions and Answers