GovPro - August/September 2012

36
AUGUST/SEPTEMBER 2012 www.govpro.com Buying Local in Oregon Help From Big Green Data Forum Awards Roundup Fred Marks on T&M Contracts How do I choose? Who has the best price? What about local preferences? Coop Meeting of the Minds A PENTON MEDIA publication The official publication of NIGP: The Institute for Public Procurement PLUS:

description

The official publication of NIGP.

Transcript of GovPro - August/September 2012

Page 1: GovPro - August/September 2012

AUGUST/SEPTEMBER 2012www.govpro.com

Buying Local in Oregon

Help From Big Green Data

Forum Awards Roundup

Fred Marks on T&M Contracts

How do I choose? Who has the best price?

What about local preferences?

Coop Meeting of the Minds

A PENTON MEDIA publication

The official publication of NIGP: The Institute for Public Procurement

PLUS:

Page 2: GovPro - August/September 2012

# " ## # " # ! $!!

Page 3: GovPro - August/September 2012

SUBSCRIPTIONS: Free subscriptions to Government

Procurement (ISSN 1078-0769) are limited to public-sector

purchasing professionals. Those qualified may apply by

calling 847-763-9670 or visiting http://www.govpro.com.

Subscriptions for others are available, subject to publisher’s

acceptance, at these rates: U.S. and U.S. possessions, $35/1

year, $45/2 years, $7/single copy; Canada, $40/1 year, $60/2

years, $8/single copy; international, $45/1 year, $70/2 years,

$10/single copy. Send subscription payment (by check or

credit card) to Penton Media Customer Service, Government

Procurement, PO Box 2100, Skokie, IL 60076-7800. For all

customer service inquiries, call 847-763-9670; fax to

847-763-9673; e-mail [email protected]; or

visit: http://www.submag.com/ sub/gp. Buy positive

microfilm or microfiche copies of out-of-print issues from

National Archive Publishing Co. (NAPC), 300 N. Zeeb Rd.,

PO Box 998, Ann Arbor, MI 48106-0998;

phone: 734-302-6500 or 800-420-6272, ext. 6578.

LIST RENTALS: To rent circulation lists of Government

Procurement, contact Merit Direct, 333 Westchester Ave., White

Plains, NY 10604; Website: http://www.meritdirect.com/market

COPYING: Permission is granted to users registered with the

Copyright Clearance Center Inc. (CCC) to photocopy any article

(except for those in which separate copyright ownership is indicated

on the first page of the article), for a base fee of $1.25 per copy

of the article plus 60 cents per page paid directly to CCC, 222

Rosewood Dr., Danvers, MA 01923. (Code No. 1078-0769/07

$1.25 + .60).

REPRINTS: For customized article reprints, contact:

Wright’s Media, phone: 877-652-5295;

email: [email protected]

PUBLISHED: Government Procurement (ISSN 1078-0769) is

published bi-monthly by Penton Media Inc., 9800 Metcalf Ave.,

Overland Park, KS 66212-2216. Canadian Post Publications

Mail agreement No. 40612608. Canada return address: Bleuchip

International, PO Box 25542, London, ON N6C 6B2. Canadian

No. R126431964. Copyright© 2012 by Penton Media Inc.

POSTMASTER: Send address changes to Government

Procurement, PO Box 2100, Skokie, IL 60076-7800.

Periodicals postage paid at Shawnee Mission, KS, and at

additional mailing offices.

SALES OFFICES ARE LISTED ON PAGE 4.

CONTENTSAUGUST/SEPTEMBER 2012

VOLUME 20, NO. 4

IN DEPTH

12 Cooperative PurchasingCOOP MEETING OF THE MINDSRepresentatives of various cooperative purchasing organizations share insights on issues facing the government market as cooperatives grow in size and infl uence – and increase in number. Based on a discussion at NIGP Forum in Seattle, the article addresses common questions procurement professionals face when navigating the evolving world of cooperative purchasing.

24 Forum Review LOOKING BACK ON NIGP’S 67TH ANNUAL FORUM AND EXPOSITIONNIGP: The Institute for Public Procurement hosted the NIGP Forum at the Washington State Convention and Trade Center in Seattle, Wash., Aug. 18-22. Here is a roundup of awards presented in recognition of procurement professionals “reaching new heights.”

PERSPECTIVES

2 Guest Editorial: Greening

government fl eets.

4 Procurement Ponderable:

Taking on a tough new job.

HOT TOPICS

7 Buying Local: Flexible price

agreement reshapes local market.

10 Green Purchasing: Data

tools provide more detail

to guide purchases.

PEOPLE

27 UPPCC Testing Data: On

latest CPPO/CPPB exams.

28 Meet the Pros: UPPCC

new certifi cation list.

BACK PAGES

31 Ad Index

32 Fred Marks: On managing time

and materials (T&M) contracts.

Page 4: GovPro - August/September 2012

2 | AUGUST/SEPTEMBER 2012

PERSPECTIVES [guest column]

PENTON MEDIA INC.

6151 Powers Ferry Road NW, Suite 200 Atlanta, GA 30339 Phone: 770-618-0112 FAX: 913-514-3887

http://www.govpro.com

EDITORIAL STAFF

Bill Wolpin Editorial Director [email protected]

Larry Anderson Editor [email protected]

Lindsay Isaacs Managing Editor [email protected]

Kim Blaski Production Manager [email protected]

Joan RoofAudience Marketing Manager [email protected]

Wes Clark Art Director [email protected]

THE INSTITUTEfor PUBLIC PROCUREMENT

151 Spring St. Herndon, VA 20170-5223 Phone: 703-736-8900 Fax: 703-736-2818

Brent Maas Marketing Director [email protected]

Cathie Patin Communications Editor [email protected]

EDITORIAL ADVISORY BOARD

Debbie Field, CPPO, VCO Virginia Department of General Services

Yolanda C. Jones, C.P.M., APP Clark County, Nev.

Jay T. McCleary, CPPB City of Red Wing, Minn.

challenge of implementing greener practices is the simple

– yet, complex – question of “Where do I begin?”

With a focus on greener off-road and heavy equipment fleets, the

Association of Equipment Management Professionals (AEMP) has

developed its Green Fleet Initiative to guide the way. Still in its early

stages, the initiative encourages and recognizes fleet managers in

their mission toward a cleaner fleet, and lets them see the benefits of

a greener fleet. Fuel savings, employee wellness and public perception

are among the numerous benefits of implementing greener practices.

Whether the goal is cost savings, enhancing grant availability or

simply to be seen as a more responsible fleet, voluntary investment

in greener practices is on the rise. Working together, fleet managers

and procurement professionals can take a more active approach

to cleaning up fleets, and be recognized for their efforts.

Through its Bronze, Silver, Gold and Platinum levels, the AEMP program

gives fleet managers a clear idea of what types of practices are crucial

to a greener fleet. Three of the four levels require upgrading to engines

meeting either Tier 2 or Tier 3 emissions standards, which requires the

purchasing manager to work with the fleet manager to make things happen.

The City of Euless, Texas, was the first public fleet to receive AEMP’s

Green Fleet status, and achieved it at the Silver level. The quest towards

Green Fleet Certification began with efforts to utilize alternative

fuels and implement a written idle policy. To achieve the Silver level

distinction, Kyle McAdams, Euless fleet and facility administrator,

also had to upgrade at least 50 percent of his fleet to Tier 2.

In addition to recognizable benefits such as reduced fuel consumption

and maintenance cost, greening a fleet also offers benefits not apparent

on a balance sheet. In the case of the City of Euless, McAdams’ team

plans to use AEMP’s Green Fleet certification to help distinguish them

in the ongoing grant process for further alternative energy efforts.

Similarly, Lee County Fleet Management in Florida pursued a greener

fleet for more than just the obvious benefits. There’s a common – and

unfair – view among the general public that heavy equipment fleets are

leading contributors to pollution and greenhouse gas emission. Responding

to this perception, Marilyn Rawlings, Lee County fleet manager, was

driven to greener practices, and set a high standard for others to follow.

Rawlings is a firm believer in helping others green and improve

their fleets in order to positively impact and boost the image of

the industry as a whole. “There needs to be somebody who sets the

standard, someone who throws down the gauntlet and challenges

other governmental fleets to take action,” she says. “We want to

raise the bar and hopefully encourage others to do the same.”

Lee County Fleet Management is the first government fleet in the United

States to be recognized as an AEMP Platinum-certified Green Fleet.

Lee County’s heavy equipment fleet currently meets all governmental

requirements for emissions, while the Platinum certification honors it for

meeting all criteria designated by AEMP in its Green Fleet program.

To achieve AEMP’s Green Fleet Bronze Level, either at least 50

A

Greening government fleets

By Stan Orr

Continued on page 4

Page 5: GovPro - August/September 2012

" " "

" "!"#

" ! ! !

! $"

Page 6: GovPro - August/September 2012

4 | AUGUST/SEPTEMBER 2012

Government Procurement welcomes your feedback.

Send letters to: [email protected] or Government Procurement,

6151 Powers Ferry Road NW, Suite 200, Atlanta GA 30339, Attn.: Bill Wolpin.

We reserve the right to edit all letters for clarity, brevity, grammar, punctuation, syntax and style.

PERSPECTIVES [discussion]

GROUP OFFICERS

Gregg Herring Group Publisher [email protected]

Susie Barroso Group Marketing Director [email protected]

Joanne Romanek Online Advertising Specialist [email protected]

ADVERTISING SALES

Dave Gibson Northeast Region Sales [email protected] Phone: 216-931-9469 NY, NC, NJ, OH, MA, CT, Wash-ington DC, VA, MD, VT, DE, ME, NH, RI, Canada (Eastern), SC, GA

Bill Perry Midwest Region Sales [email protected] Phone: 770-618-0453 IL,WI, PA, MN, WV, AK, TN, MS, AL, FL

Ron Corey Midwest Region Sales [email protected] Phone: 248-608-0994 MI, MO, IA, KY, IN, ND, SD, AR, LA, TX, OK

Julie Fincher Western Region Sales [email protected] Phone: 913-981-6139 CA, KS, CO, AZ, UT, NE, OR, WA, NV, MT, HI, ID, NM, WY, Canada (Western)

CORPORATE OFFICERS

David Kieselstein Chief Executive Officer [email protected]

Nicola Allais Chief Financial Officer Executive Vice President [email protected]

Bob MacArthur Senior Vice President [email protected]

PROCUREMENT PONDERABLE

The goal of Government Procurement is to stimulate thought

and discussion on significant issues in the profession, to

foster collaboration and community, and to encourage creative

solutions to common challenges. In that spirit, this issue of Government

Procurement presents a hypothetical scenario describing a challenge that

procurement professionals might face in the course of their careers.

The following scenario was created by Stephen B. Gordon,

PhD, FNIGP, CPPO, who is the Director of the Graduate

Certificate Program in Public Procurement and Contract

Management at Old Dominion University in Norfolk, Va.

If you feel moved to respond – and we hope that you do – we’ll publish

your comments in an upcoming issue of Government Procurement.

You have been named the Director of Procurement for the XYZ Urban County

Government. The government has a long-standing and well-deserved reputation

for corruption and poor business practices generally. You were brought in by

the newly-elected County Executive to create, implement and institutionalize

a world-class procurement program. Not all stakeholders in the current

program are excited that you will be coming on board. It is unclear whether the

stakeholders who say they support the County Executive’s goal actually do.

Given that you had a very nice “job-for-life” in a very well-run city

halfway across the country, why did you agree to take on this challenge?

What is your time frame for institutionalizing the

world-class procurement program?

What are the principal elements of your strategy for creating,

implementing, and institutionalizing the world-class program?

percent of the fleet must be Tier 2 or better OR a written idle policy must be

in place and enforced. Fulfilling both these requirements earns a Silver level

certification. The Gold level requires at least 50 percent of the fleet to be Tier

3 or better AND that a written idle policy be in place and enforced. To earn

Platinum certification, a fleet must also show 10 percent or more of the fleet

uses diesel particulate filter (DPF), diesel oxidation catalyst (DOC) or interim

or final Tier 4 technologies (in addition to meeting the Gold requirements).

Government fleets interested in applying for AEMP Green Fleet status can view

details on the program at aemp.org. A few standard guidelines apply, and all diesel

vehicles 25 horsepower and greater need to be included in the fleet application.

On January 1, 2013, changes go into effect for AEMP’s Green Fleet program.

These include new standards for meeting the qualifications on each level. It’s

AEMP’s plan to redefine parameters every two years in an effort to encourage

fleet managers to stay head of the curve, set goals and continue best practices.

Additionally, certain fleets certified in 2011 will need to be re-certified, as the

program will be coming up on its two-year anniversary of existence.

STAN ORR, CAE, is president and chief strategy officer of the Association

of Equipment Management Professionals (AEMP), Colorado Springs, Colo.

Continued from page 2

Page 8: GovPro - August/September 2012

ADVANCING CONVENIENCE ADVANCING COMMERCE

% ! !!

# "#

'!"

!" !" & "!" " !!" " " "

!""!"!&%"!" !" &

#&# !"! #!"!&" "!%" "!" !!!" !"

"!$&# &!# $"&&"!&!!!

#"! "!" ! !" !

"!! !%&!" ""

Learn more at mastercard.com/payroll.

Page 9: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 7

HOTTOPICS [buying local]

OREGON GROCERY CONTRACT RESHAPES LOCAL MARKET By Greg Hopkins

regon legislators want government agencies, such as

schools, to have the option of buying local agricultural

products. Oregon’s Procurement Office has responded with a

highly flexible price agreement that includes local producers.

The grocery contract is open to all state and local agencies. Through

a cooperative purchasing agreement, local agencies from Oregon,

Washington and Idaho become “authorized purchasers” by paying an

annual fee based on their yearly budget. The fees, which range from

$50 to $5,000, also open the door to all statewide price agreements

including copy machines, janitorial supplies, industrial supplies,

lawn and garden equipment, and many other goods and services.

Local providers on the contract include Childers Meat, Charlie’s

Produce, Spring Valley Dairy, and Umpqua Dairy. National suppliers,

Sysco and Food Services of America (FSA), are also on the contract

and compete with local providers. For orders of less than $5,000,

agencies can buy from local farms of their choice, although agencies

receiving USDA Child Nutrition Funds who do this must get two or

three quotes. Agencies can even spend up to 10 percent more for local

food compared to food coming from out of state, although contract

manager Dave Reynolds reports “there hasn’t been a single instance”

when this allowance was needed. “The local prices have been the same

or even lower than the prices from the large carriers,” he said.

O

With the MasterCard

Payroll Card,®

Omni Hotels

& Resortseliminatedmore than128,000*

paper checksin one year—andall the processing fees

and printing costs that

came along with them.

©2012 MasterCard.

See how Omni Hotelssimplified payday with

MasterCard.

Download the case study atmastercard.com/payroll.

*MasterCard, “Payroll Card Saves Time and Money for Omni Hotels & Resorts and Its

Associates,” Case Study (2011): 4.

Dave Reynolds, contract manager for Oregon Procurement’s grocery contract, checks out product quality at the source.

Page 10: GovPro - August/September 2012

8 | AUGUST/SEPTEMBER 2012

HOTTOPICS [buying local]

Suppliers on the price agreement comply with

the requirements of the Federal Child Nutrition

Funds, which “encourages” doing business with local

sources and requires fair and open competition. Since

the grocery contract encourages price comparison

among providers, free market competition is created

that keeps prices competitive and reduces the hassle

of dealing with requests for price increases.

Agency buyers can request new items on the delivery

list from Sysco or FSA if they meet a minimum order

requirement of about five cases a week. In one example,

an agency wanted grains from Bob’s Red Mill and was

able to have these products added to regular deliveries.

Reynolds worked with Todd Pommier, food

service manager at the Oregon State Hospital, and

other agency buyers to iron out the details. Reynolds

said his main question was “How do we set up a

contract that will generate ongoing competition?”

In addition, Reynolds wanted a contract that would

allow an agency to buy a load of carrots from a local

farm – or fresh local meat – without shipping it from

two states away. The grocery contract with multiple

suppliers makes these goals possible – and more.

RESULTS EXCEED EXPECTATIONS

Since the contract launched in 2008, quarterly sales

have increased at least 250 percent to about $8 million

annually. Agencies realize the advantages of using

the contract, rather than creating their own bids, and

prices can’t be beat. One school was paying over a

dollar per pint for milk. Now they pay about a quarter

of that, which quickly repays their annual fee to use

the contract. Across the board, the grocery contracts

have experienced a 4.59 percent cost reduction since

2011. Negotiations under way currently are for deeper

cost reductions on fresh fruits and vegetables.

The number of agencies using the contract

also is growing. Recently, two large school

districts in Washington with a combined annual

spend of more than $2 million have signed

on. The Department of Corrections, with a

huge annual spend, is also evaluating potential

cost savings by switching to the contract.

RURAL BUYERS BENEFIT

Because of the large number of agencies using the

contract, extending delivery routes into remote

areas is feasible for the large carriers. Lori Smith

buys food supplies for the school in Dayville, Ore.,

which has a population of 111 people, is 39 miles

from the closest town, and has 65 children in the

entire school system. Previously, Smith has had a

$5,000 minimum for food deliveries, which meant

twice a year she ordered items that could be frozen.

Recently, thanks to the new contract, she has

been able to get regular food deliveries from Food

Services of America for a $400 minimum order.

“When we achieved that, I considered it a

milestone in the contract,” Reynolds said.

In a small place like Dayville, the person doing

the buying might be stocking shelves in the morning

and driving a bus in the afternoon. The plug-and-

play price agreement takes several headaches away.

LESSONS LEARNED AND NEXT STEPS

There has been some market reshuffling due to

the aggressive pricing and ease of use of the new

contract. A large supplier consortium that acts as

a broker to schools has lost some schools who have

decided to order directly from the contract. A few

suppliers bumped from long-established ties are

not happy. However, overall the contract has had

few problems and has generated many benefits.

The next contract rebid will likely be in

the summer of 2013. Reynolds is analyzing

ways to make the contract even better. A few

of the changes he hopes to see include:

> Foods that meet the USDA Child

Nutrition Certification clearly tagged in

catalogs so school purchasers know what

qualifies for Federal reimbursement.

> An efficient, wider delivery network. There

may be a way to use empty space on trucks

that are already going to delivery destinations,

especially in remote areas. Another idea is to

explore more efficient distribution hubs.

> A way to accept and distribute donated food.

> Improved process for setting up accounts

and viewing suppliers’ catalogs.

> Increased outreach to schools and other

food buyers to inform them of the contract,

how it works and what other price

agreements from which they can benefit.

> More vendors on the contract,

especially local producers.

> More specific guidance on making

direct buys from local farms, dairies,

orchards, and meat packers.

For those contemplating a similar contract,

Reynolds has one piece of advice: “Listen to your

customers and design the contract to meet their needs.

And don’t listen to all of the people who say you can’t

implement your ideas. They’re usually wrong.”

GREG HOPKINS is training specialist,

procurement services, for the state of Oregon.

Page 11: GovPro - August/September 2012

Ensuring citizen safety and supporting critical business operations are important even during tough economic times. At GSA we offer direct access to a wide range of quality local and global contractors offering products and services at pre-negotiated ceiling prices. Our online tools and customer support specialists are available and ready to help you respond quickly to your state and local needs. GSA helps you generate efficiencies and savings for the American people.

To learn more, call 703-605-9155 or visit www.gsa.gov/stateandlocal.

Law Enforcement & Security

Information Technology

Emergency Response & Recovery

Firefighting Protection

Time, Money, and Lives.Solutions That Save

Page 12: GovPro - August/September 2012

10 | AUGUST/SEPTEMBER 2012

HOTTOPICS [green purchasing]

Big Green DataEMERGING TOOLS GIVE GOVERNMENT PURCHASERS BETTER ACCESS TO ENVIRONMENTAL INFORMATION By Scot Case

overnment agencies looking to buy greener

products and services are examining new

tools to provide greater flexibility to define and

identify greener choices. GoodGuide, which was

recently purchased by UL Environment, collects

publicly available environmental information on

more than 175,000 products. Government purchasers

are beginning to experiment with ways to use the

information to make greener purchasing decisions.

Traditional environmental standards such as

those developed by Green Seal and UL Environment

(including the EcoLogo and GREENGUARD

standards also owned by UL Environment) provide

government purchasers with a binary decision

point – products are either certified as meeting

the relevant environmental standard or not.

GoodGuide and other big data-driven solutions

such as Greencurement and the EPEAT (Electronic

Product Environmental Assessment Tool)

registry allow government purchasers to review

more detailed information and make additional

distinctions among the products. More data

also makes it possible for different organizations

with different definitions of green to identify

greener products using a common data source to

identify products meeting their unique needs.

The State of California, for example, focuses

on different environmental considerations than

Georgia. The City of San Francisco defines green

differently than Kalamazoo, Mich. All of them,

however, can base purchasing decisions on

information from a common data repository.

GoodGuide and other similar approaches

make it possible for each entity to define its

own environmental requirements and quickly

identify products meeting those requirements.

STANDARDS MAKE GREEN PURCHASING EASIER

Back in 1999 when the Commonwealth of

Massachusetts was evaluating bids for greener cleaning

products, it received boxes and boxes of hard copy

information from suppliers claiming to provide

greener cleaning products. The Commonwealth had

requested information on more than a dozen different

environmental criteria such as aquatic toxicity, pH,

biodegradability, and the results of eye and skin

irritability tests. Reviewing and comparing all of

the information proved incredibly challenging.

To avoid the challenge of wading through reams

of data for future solicitations, Massachusetts

and hundreds of other government purchasing

professionals began requiring cleaning products to

be certified to the Green Seal or EcoLogo standards.

Requiring certification drastically

simplifies the solicitation process, but there

are several challenges with this approach:

> All certified products are treated as equally

good. While this is true for all standards

and certifications, it does not make it

easy to compare products to see which

of the certified products is “greener.”

> Standards and certifications are not available for

all of the products and services governments buy.

> Traditional environmental standards need to

be updated on a regular basis because scientific

understanding of the risks and benefits of

various materials, chemistries, and technologies

changes. Not all environmental standards,

however, are updated as frequently as needed.

BIG DATA CAN MAKE GREEN PURCHASING EASIER

Environmental data management tools like

GoodGuide (goodguide.com), Greencurement

(greencurement.com), or the EPEAT registry (epeat.

net) provide purchasers with the ability to compare

products based on a variety of environmental

data points. They permit purchasers to identify

and prioritize the environmental features they

care most about and use those preferences to

identify products meeting their requirements.

Big data solutions also make it possible for

government purchasers to have near-instantaneous

information about the latest environmental benefits

and concerns of their purchasing specifications.

There is no need to wait for standards to be

updated. Purchasing specifications can be quickly

updated based on the latest information.

Had this technology been available in 1999

when the Commonwealth of Massachusetts

was initially seeking greener cleaning products,

the reams of data Massachusetts suppliers

submitted could have been managed easily

G

Page 13: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 11

in a system that permitted Massachusetts purchasers to

sort products based on their environmental profiles.

ENHANCEMENTS UNDER WAY

As government purchasers begin examining big data tools,

they are suggesting enhancements that will make the tools

even more useful. One enhancement is providing additional

assurance about the accuracy of the data contained within

the systems. Government purchasers now rely on the

certification results from organizations like Green Seal and

UL Environment that investigate products to ensure they meet

relevant environmental standards. Systems like GoodGuide,

Greencurement, and the EPEAT registry rely on data that has

not been subjected to the same level of scrutiny. Concerns

about data quality are being addressed by integrating third-

party validation into the data collection processes.

Another significant enhancement is merging the environmental

filtering capabilities of these data tools into existing online

purchasing systems. This makes it possible for government

purchasing cooperatives or other suppliers with online ordering

systems to present purchasers with greener products meeting

their local environmental purchasing requirements.

SCOT CASE has been researching and promoting responsible

purchasing for 17 years. He is market development director

for UL Environment. Contact him via e-mail at scot.case@

ulenvironment.com or in Reading, PA, at 610-779-3770.

GREEN DATA SOURCES

EPEAT – epeat.net. Focused exclusively on desktop and

laptop computers and monitors (with plans to expand into

other electronic product categories), EPEAT provides detailed

environmental information on more than 2,000 products. The

products are ranked as bronze, silver, and gold based on the

IEEE 1680 standard. The database also provides additional

product information permitting purchasers to compare

products based on things like energy efficiency, recyclability,

and the environmental practices of the manufacturer.

GoodGuide – goodguide.com. Provides environmental,

health, and social data on more than 175,000 products

and 5,000 companies by compiling information from more

than 1,000 different sources. GoodGuide helps purchasers

identify safe, healthy and socially responsible products and

companies. It currently offers detailed product information

for personal care, household chemical, and food products,

as well as appliances, apparel, and automobiles. It allows

users to find and choose products quickly, easily, and

according to personally customizable search criteria.

Greencurement – greencurement.com. With

product, environmental, and health information on tens of

thousands of commercially available products aggregated

from dozens of data sources, Greencurement makes it

possible to search for products with specific environmental

benefits. Greencurement also offers a variety of consulting

services to help government purchasers use the data.

1-3$FRQWUDFWVDUHFRPSHWLWLYHO\ELGRQ\RXUEHKDOIDQGZLOOFRQQHFW\RXWRQDWLRQDOO\OHYHUDJHGFRQWUDFWSULFLQJ$QRFRVWQRREOLJDWLRQRUOLDELOLW\0HPEHUVKLSLVDOO\RXQHHGWR´VZHHSμXSWKHVDYLQJV

<RXUÀUVWVWHS"-RLQWRGD\DWZZZQMSDFRRSRUJ

ZZZQMSDFRRSRUJ_3XEOLF:RUNV&RQWUDFW3XUFKDVLQJ6ROXWLRQV

D´&/($1(5μZD\WRSXUFKDVH

A L i q u i d i t y S e r v i c e s M a r ke t p l a ce

Page 14: GovPro - August/September 2012

12 | AUGUST/SEPTEMBER 2012

IN DEPTH [coop purchase]

Representatives of cooperative purchasing

refl ect on its growing impact on government procurement

ith so many coops, how can I

choose the best one? How do I

know if a coop follows my local

legal requirements? How do I

deal with local preferences? Am

I really getting the best price?

Such questions are common with the proliferation of

cooperative purchasing in the government procurement

sector. Th e rise of coops has provided both a wealth of

benefi ts and more than a little confusion for procurement

professionals tasked with maximizing the usefulness of

the various cooperatives for their local governments.

To provide insight, representatives from several

cooperatives gathered at NIGP Forum in Seattle last month

for a meeting of the minds moderated by Bill Wolpin,

editorial director of Government Procurement magazine.

Here are some edited excerpts from that discussion, covering

several issues facing the government market as cooperatives

grow in size and infl uence – and increase in number.

TOO MANY COOPS: HOW DO YOU CHOOSE?

Peter Torvik, managing director, U.S. Communities

Government Purchasing Alliance: We know from Chinese

restaurants and mutual funds that choice isn’t something

that helps in every situation. Th is is an industry that has had

no barriers to entry over the last fi ve years. We are looking

forward to a period of searching and consolidation and

standard-setting and taking this whole thing to the next

level. We know you cannot solve your agency’s budgetary

problems buying a pencil 10 percent cheaper. We need to look

for things that have real budgetary impact, that really save

your department time and money and are transparent and

clear. We’re going to just have to innovate faster as a group.

David Yarkin, whose consulting company

Government Sourcing Solutions helps governments save

money by using cooperatives: Th ere is nothing in your

statute that says you have to compare each and every single

cooperative purchasing agreement out there for everything

you will use them for. If you do that, it defeats one of the

purposes of cooperative purchasing, which is to shorten the

procurement cycle and make it less labor intensive for your

staff . [When I was chief procurement offi cer in Pennsylvania,]

we would fi nd a cooperative that met our legal requirement,

solved a business need, and, most important, saved us

real hard dollars. If you do that, you have no obligation

to go to every cooperative out there. Your obligation is to

the taxpayers. Don’t be intimidated by all the options.

Duff Erholtz, membership manager, National Joint

Powers Alliance: At the end of the day, there isn’t one

consortium with a comprehensive set of solutions to serve

you. I’m not sure, collectively, we have a comprehensive set

of solutions. Don’t get hung up on what type of a coop or

what type of a program. If you need a specifi c brand, say

Toro, you have a limited number of options. Some things

everyone has. Some companies everyone has. But for the

majority [of products], there will be [fewer choices].

Coop Meeting

of the Minds

Page 15: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 13

THE OUTSOURCING ASPECT OF

COOPERATIVE PURCHASING

Wayne Casper, group director, National

Intergovernmental Purchasing Alliance (National

IPA): What you’re doing when you use a cooperative

is, in a sense, you’re substituting your source selection

process with the source selection process by somebody

else. What you need to think about is: Who awarded

that contract, who bid it, who administered it? Are you

confident with their procurement processes and that

they did as good a job as you would do yourself?

Tim Hay, state of Oregon, member of Western States

Contracting Alliance (WSCA): With the WSCA/NASPO

(National Association of State Procurement Officials) model,

outsourcing isn’t really the key. We use a collaborative effort

and work with all the states in the development of the RFP. One

state is designated as the lead state that actually releases the

RFP, but we work in collaboration with five or six states that

comprise the WSCA sourcing team for a particular commodity.

Right now there are 38 WSCA or NASPO combination

contracts, and a procurement professional participated from

each state on the sourcing team. We are more about in-

sourcing than outsourcing, and we use resources and talent

of each of the states to develop the cooperative agreements.

David Yarkin: You can’t outsource the entire

procurement function to a cooperative. You can break the

world of piggybacking into two buckets on the government

side – the large entities, for whom the large coop contracts

won’t be good enough, and then other, smaller governments

for whom the basic pricing from a cooperative contract are

pretty good, and better than they could do in their own.

One idea to take advantage of cooperative prices, while

promoting competition, would be to hold a “bakeoff” and

allow multiple cooperatives to compete based on price and

other qualitative factors instead of doing a full-fledged

RFP. You can shave a lot of time off a procurement cycle.

Peter Torvik: We don’t believe that all cooperatives follow

the same procedures. After 15 years in the business, there is

still confusion out there and there still isn’t the confidence

we would like to see to use any of the cooperative contracts

presented to you. This is an embryonic industry; it’s way

less than a percent of your discretionary spend across the

country. If it even went to 5 or 10 percent, it would save

governments tens of billions of dollars a year. We want to see

the industry go to the next level and find a set of standards you

can all understand and be confident in. Then we all benefit.

Every dollar you spend in a coop should save you money,

and that’s the atmosphere we’re looking for in the future.

DEALING WITH LOCAL PREFERENCES

Wayne Casper: The broader question of local preferences

[is one] that everybody in public procurement has dealt

with from day one. That issue will always come up. My

experience has been that when the economy is down, you

get more of it. All of a sudden there are more local vendors

than there were when everything was going well. But part

of it will vary by cooperative contract. Some contracts are

national contracts that sell directly. But you have your big-

three office supply companies – Office Depot, OfficeMax

and Staples, for example. In most cities they have local

big-box stores where they hire a lot of people. A lot of the

cooperative contracts are with major manufacturers, and they

are resold through local dealers. That’s the case with office

furniture, copiers and equipment. Some heavy equipment

contracts have local dealers that have been in business in the

local community for 50 or 60 years; they are very strong in

the local community. It’s going to depend on the contract

itself, but you can work around it with many contracts.

Tim Hay: Depending upon the commodity and the

political sensitivity, there are some contracts that are let

that have both a national presence as well as a regional

preference. When we did the sourcing team for express mail

and small package delivery services, we actually had local

components for in-state delivery services in both California

and Alaska. We are sensitive to that need, and if there are

needs for local preferences, it is built into the solicitation.

Peter Torvik: We get letters forwarded from local vendors

and politicians. It started out in the office supplies business

from day one. The most recent I remember is a plywood

vendor in Florida called up and was mad because our HD

Supply contract was a much better deal than he could provide

locally. It was a woman-owned or minority contract, I can’t

remember which one, so there was a lot of political fireworks

for that politician. It was actually a Congressman. But what

it came down to was the local vendor didn’t like the effect on

his profit margin, and he was blaming the U.S. Communities

contract for affecting that. But really, any competitor in that

market, whether it was the Home Depot store down the road

or another lumber yard, could affect that pricing and profit

margin. I don’t know how you justify continuing to charge

excessive prices. The bottom line, the city or county can do

whatever it wants to do. They don’t have to purchase from

a coop. If they have that political need (to buy locally), and

it’s worse in some places than others, it can be handled.

GETTING THE BEST PRICE

Peter Torvik: From our standpoint, volume is very

important. You have to have eventual volume to get

manufacturers to push the prices where they need to be.

We try not to do anything where we aren’t seeing 50 or 100

million dollars in eventual sales for that contract, although

we don’t always get there. We have a best price guarantee, so

you don’t see a manufacturer with six contracts with various

prices on them. Then you have to audit those contracts to

make sure they live up to that price guarantee. The fantastic

part is that our collective activities here are repricing entire

industries, office supplies being one. Whether they are

buying from a coop or not, they are buying office supplies

10 percent cheaper than they were 15 years ago. That’s a

goal we all have, which is to reprice entire industries.”

Chris Penny, vice president of sales, The Cooperative

Purchasing Network (TCPN): One of the positives resulting

Page 16: GovPro - August/September 2012

14 | AUGUST/SEPTEMBER 2012

IN DEPTH [coop purchase]

from the expansion of cooperatives, both in the amount

of use coming through a cooperative and the number

of cooperatives, is that the suppliers to the vendors are

becoming more astute and aware of cooperative purchasing.

HP, for example, is now saying they will give a cooperative

discount, to lower the basis points on their toners and offer

the pricing [to the various coop contracts]. Some of the

major suppliers are becoming aware and lowering overall

government prices regardless of what platform you use.

WHEN TO USE A COOP

David Yarkin: There are 31 different flavors of cooperative

purchasing. You make a mistake by defining it too narrowly.

When I was in Pennsylvania, we were going out for bid on

a commercial off-the-shelf software. As we were working

on the RFP, we saw that Massachusetts had a contract. So

we analyzed the contract on software in Massachusetts and

compared its prices with the prices we were paying currently.

We saw we would save $4 million by piggybacking on it. We

did it. We got a tiny bit of pushback from a couple of local

suppliers that faded away after a couple of weeks. We took the

$4 million in savings and put it in the bank. My job was to the

get the best deal for my taxpayers, as long as it met the legal

requirements. There are a lot of different ways to look at this.

Phil Vasquez, independent consultant on cooperative

contracting: Cooperatives in general have gotten pretty

standard in the ways they do things. You have to ask how

the contract meets your agency’s needs. At the end of the

day, it has to make sense for your taxpayers. You have

to do your due diligence and be a good steward for the

citizens and look at what contract makes the best sense.

ENSURING COMPLIANCE WITH LOCAL LAWS

Tim Hay: WSCA is very conscientious about contacting

each state before we release a solicitation so they are aware

of what we are doing regarding future contracts to give

them the opportunity to advertise that solicitation. Some

states have very strict solicitation laws, so if they didn’t

originally advertise it, they can’t participate in it. We

want to make sure they have the opportunity to advertise.

WSCA’s model is that states collaborate with each other,

down to the end-users, to make sure those states’ needs are

met in the solicitation. Ninety-five percent of the time, the

states in the sourcing team have the same needs as states

not on the sourcing team, so all their needs are met.

Paul Stembler, WSCA/NASPO Cooperative

Development Coordinator: The issue you want to start with is

who comes closest to following the process you have to follow.

You have to deal with people inside your jurisdiction. Those are

the issues you need to look at. What kind of level of response

Our most popular product is compliance.Shop at PSS and you can piggyback on a growing list of competitively solicited contracts by lead public agencies in compliance with generally accepted public procurement standards. PSS is the place to find what you need and a better way to buy it:

s4HEEASIESTFASTESTWAYTOSAVEON everything from office supplies and computers to furniture and flooring.

s.OPARTICIPATIONFEE

s0ARTOF%DUCATIONAL)NSTITUTIONAL#OOPERATIVE0URCHASINGA YEAR OLDNOT FOR PROlTGROUPPURCHASINGORGANIZATION

s,EVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing.

Visit www.publicsourcing.org to start saving on the things you need.

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

Page 17: GovPro - August/September 2012

and process do you need in this case? Each one of you is

different. There are 56 members of NASPO and 56 sets of rules.

Tom Post, president of AEPA (Association of

Educational Purchasing Agencies): With AEPA, all of our

organizations are represented in 26 states, and we advertise and

solicit in each individual state. We give the local manufacturer

or distributor an opportunity to bid on any of our contracts.

TRANSPARENCY AND HANDLING COMPLAINTS

Wayne Casper: National IPA has a business review

meeting quarterly with all vendor partners to go through any

issues during the last quarter [including the lead agency].

Tom Post: If you have a complaint with one of

the vendors we selected, we would get involved and

go to that vendor and solve the problem. We would

find out what that problem is and make sure you’re

satisfied. That’s our job, that’s part of what we do.

Duff Erholtz: We do an annual review, but we would get

involved at any time. Vendors have a lot at stake because of

their award of a national cooperative; they are not going to let

one complaint jeopardize what could be a much larger [sale].

Every [coop] has a web site where all the documentation is

available, you can see the solicitation, the advertisement, all

the information you need, and dedicated staff can help you

[navigate] the web site and get you where you need to go.

Tim Hay: At least from WSCA, we have all the

[RFPs and supporting documents]. They all meet

that lead state’s requirements for documentation and

keeping the documentation forever, almost.

Peter Torvik: If you’re dealing with the sales department

[related to complaints], that’s not who we’re dealing with.

That’s a real advantage for our coops, especially at the local

level. We are dealing with higher-ups, such as presidents

or executive directors, people who are responsible for

the contract and take it very seriously. It’s a large part

of their sales. It’s not left to the local distribution.

Paul Stembler: If there is a problem, we need

to know about it. Waiting six or eight months or a

year or two or four years doesn’t accomplish much

for us. We need to know about it now and have the

facts so we can proceed to solve the problem.

WHAT’S NEXT?

Peter Torvik: We have a fully operational e-commerce

site that allows you to choose a lightbulb from HD Supply

or Graybar, for example. The suppliers aren’t always happy

about that, but I think it represents the first step in the

direction [of offering a web-based system to compare

coop prices]. When you buy from Amazon, you can see

all these different booksellers. Amazon has taken the

central role of guaranteeing a satisfactory transaction.

We are a few years from someone taking that central role.

The first job is to make sure of compliance and that you

could buy with confidence from everyone represented,

and then the price takes care of itself after that.

Page 18: GovPro - August/September 2012

Transparent Procurement Process:

(1) The development of the solicitation, evaluation of the responses and award determination are performed by public employees of a political subdivision* that is separate from and independent of the cooperative organization. (Lead Public Agency)

(2) A National Evaluation Team of public procurement professionals from multiple political subdivisions* participate in the creation, evaluation and award process.

(3) All decisions regarding the awarded master agreement, pricing changes etc., are made by the Lead Public Agency NOT the staffof the cooperative.

*A political subdivision is generally defined in most states as local governments created by the states to help fulfill their obligations. Political subdivisions include counties, cities, towns, villages, and special districts such as school districts, water districts, park districts, and airport districts

Some questions you may want to ask prior to using a cooperative that’s “just like U.S. Communities”

s7ERETHESOLICITATIONEVALUATIONANDAWARDALLperformed by employees of a political subdivision that is independent of the cooperative organization?

s7ASTHEPROCUREMENTPROCESSSUBSTANTIALLYsimilar to the process your agency is required to use?

s7HATKINDOFINDEPENDENTOVERSIGHTOFTHEcooperative is in place?

s$OESTHISCONTRACTMEETTHELEGALrequirements of my agency and state?If in doubt ask your attorney.

Oversight and Accountability:

(1) An Advisory Board of over 20 public procurement professionals to ensure processes and methods used are of the highest standards

(2) A Supervisory Board of National Public Associations to oversee the cooperative and to ensure the interests of their public agency members are served and protected.

(3) Annual independent third-party supplier audits to ensure contract compliance.

Public Agency Protection & Supplier Contract Compliance:

(1) Quarterly performance reviews with supplier executives and the Lead Public Agency to evaluate performance and compliance.

(2) Commitments: Corporate, Pricing, Economy& Sales.

(3) Field Program Managers focused on supporting public agencies and resolving problems or concerns.

Visit uscommunities.org/coopstandardsfor a due diligence check list

All CooperativesAre Not the Same

7HAT-AKES53#OMMUNITIES$IFFERENT

7EREJUSTLIKE53#OMMUNITIES

Page 19: GovPro - August/September 2012

For more than 15 years, U.S. Communities has been a leader in providing public agencies and nonprofits the best value in the procurement of goods and services. In doing so, U.S. Communities has never wavered in putting the public agency participants interests first during the solicitation process. We enforce our four key commitments expected of each supplier which separates U.S. Communities from all other cooperatives. Although some suppliers complain U.S. Communities commitments are “too onerous,” we are dedicated to protecting a participating public agency’s ethical, legal, and financial interests at all times.

Some questions you may want to ask prior to using a cooperative that’s “just like U.S. Communities”

s$OESTHECOOPERATIVEMANAGETHESUPPLIERS/RDOTHESUPPLIERSMANAGETHECOOPERATIVE

s7HATKINDOFPUBLICAGENCYPROTECTIONSAREREQUIREDOFTHESUPPLIERS

s(OWMANYSUPPLIERSDOESTHECOOPERATIVEHAVEANDHOWMANYCOOPERATIVESDOESTHESUPPLIERBELONGTO

s(OWDOESTHECOOPERATIVEMANAGESUPPLIERCOMPLIANCENATIONWIDE

s(OWMANYSTAFFDOESTHECOOPERATIVEHAVE

s(OWMANYSTAFFPERSUPPLIERDOESTHECOOPERATIVEHAVE

Corporate Commitment: 4HISENABLES53#OMMUNITIESTOACCESSTHETOPSUPPLIEREXECUTIVESTORESOLVEPROBLEMSANDIMPROVEPRODUCTSSERVICEANDPRICINGONBEHALFOFOURPUBLICAGENCYPARTICIPANTS

Pricing Commitment:9OUCANHAVEPEACEOFMINDKNOWINGTHATYOUAREACCESSINGTHESUPPLIERSLOWESTOVERALLPRICINGTHATTHEYOFFERTOPUBLICAGENCIES9OUWONTFINDOUTLATERTHATYOUCOULDHAVEGOTTENABETTERDEALBYGOINGTOBIDORACCESSINGADIFFERENTCONTRACTVEHICLEHELDBYTHATSUPPLIER

7HATSINACommitment?

!LLOFTHESEAREMYBESTDEAL

Visit uscommunities.org/coopstandardsfor a due diligence check list

Economy Commitment:4HISENSURESTHATTHESUPPLIERISWILLINGANDABLETOPROVIDEYOUWITHTHENECESSARYDATADOCUMENTATIONANDANALYSESTHATYOUNEEDTOVALIDATEYOURDECISIONTOUTILIZETHEIR53#OMMUNITIESCONTRACT

Sales Commitment:4HISREQUIRESTHESUPPLIERSSALESFORCETOBEAWAREOFANDKNOWLEDGEABLEABOUTTHEIR53#OMMUNITIESCONTRACT4HISENSURESTHATYOUWILLBEABLETOGETTHEINFORMATIONYOUNEEDANDANSWERSTOYOURQUESTIONSFROMYOURLOCALSALESREPRESENTATIVEREGARDINGTHEPRODUCTSSERVICESPRICINGANDGENERAL4#SCOVEREDUNDERTHECONTRACT

Page 21: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 19

PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE

D TO SERVING PUBLIC AGENCIES

Page 22: GovPro - August/September 2012

20 | AUGUST/SEPTEMBER 2012

Helping to Balance Your Workload

www.Applied.com/uscommunities

1-866-482-4152

Enjoy the benefits of working with one supplier that can make purchasing MRO supplies easy, fast and affordable at negotiated contract pricing - Applied Industrial Technologies – a proud supplier partner of U.S. Communities.

» No bid processNationally solicited; competitively awarded contract

» 1 supplier partnerSimplifying purchasing of your MRO products

» Multiple buying optionsOnline, over the phone or in person

» Full service and supportRecommending solutions to increase efficiencies

» 4 million partsMaking sure your people get the right MRO supplies to complete the job

PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT

ED TO SERVING PUBLIC AGENCIES

Page 23: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 21

PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE

D TO SERVING PUBLIC AGENCIES

Copyright © 2012 Insight Direct USA, Inc. All rights reserved. Insight and the Insight logo are registered trademarks of Insight Direct USA, Inc. All other company and product names are trademarks or service marks of their respective owners.

ENHANCING PERFORMANCETHROUGH INNOVATIVE TECHNOLOGY SOLUTIONS

1.800.INSIGHT W IPS.INSIGHT.COM

INSIGHT | INSIGHT ENTERPRISES INC | @INSIGHTENT

MOBILITY | OFFICE PRODUCTIVITY | UNIFIED COMMUNICATIONS & COLLABORATION

NETWORK & SECURITY | DATA CENTER | VIRTUALIZATION | DATA PROTECTION | CLOUD

Insight Public Sector is proud to have served as a trusted technology advisor to public entities for more than 20 years.

Insight offers hardware and software products from the world’s leading manufacturers and publishers, in addition

to advanced IT services and solutions. Our mission is simple: to assist state, local and federal government agencies,

educational institutions, public safety entities and nonprofit organizations in leveraging technology to cost-effectively

deliver on their mission to the public.

Insight Public Sector – in partnership with U.S. Communities – simplifies the procurement, implementation and

management of the solutions and technologies your organization needs. By taking advantage of Insight’s competitively-

solicited U.S. Communities Contract for Technology Products/Equipment and Services/Solutions, you’re assured of

Insight’s best available price on our full portfolio of products and solutions.

To learn more ways Insight can help you deliver on your mission to the public, contact us at 1.800.546.0578 or at

[email protected]. Or visit us online at www.ips.insight.com/uscommunities.

Page 24: GovPro - August/September 2012

Contract 11019

hdsupplysolutions.com | 1-855-526-9473

Shop online for more than 5,000

new safety products!

FREE.

Delivered by professionals. For professionals.

To save you time and

money, our government

support team will help you

reduce procurement lead

times, lower administrative

costs, and take advantage

of our competitively

solicited U.S. Communities

contract—all while providing

free, next-day delivery*

on over 22,000 quality

maintenance and repair

products and services.

It’s an honor to serve you.

ADV-12-6597

Proud Supplier:

* On most orders to most areas. © 2012 HDS IP Holding, LLC. All Rights Reserved.

PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT

ED TO SERVING PUBLIC AGENCIES

Page 25: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 23

IN DEPTH [NIGP awards]

> Created a Certification

Reward Program. All members

obtaining certification have

their chapter membership dues

paid for the following year.

> Led the way in use of social media,

educating other chapters on its use

and engaging their members. Also

launched the chapter blog as a portal

for procurement-related topics,

chapter surveys and chapter library.

Portal is linked to various social

media outlets. The chapter’s social

media RRS feed allows deployment

of content to five sites at once.

> Established the “Bring a

Guest Program” to improve

member recruitment.

Category: Large Chapter –

201 or more members

Winner: Virginia Association

of Governmental Purchasing

Chapter of NIGP

> Developed and implemented

the Leading Light Agency Award

Program to recognize an agency

that has taken the “Lead” with

innovative ideas and achievements

to “Light” the way for other public

procurement professionals.

> Legislative Committee developed

a Legislative Survey to gather and

analyze what Commonwealth of

Virginia agencies spend on legal

newspaper advertisements required

for Request for Proposals. The

information will be used for VAGP’s

2012 legislative strategies, including

working to eliminate mandatory

newspaper advertisements.

> Developed and implemented a

new Certification Scholarship to

reimburse a minimum of 12 members

for UPPCC exam fees each year.

Procurement professionals from federal, provincial,

state and local governmental agencies in the

United States and Canada gathered for the 67th

Annual Forum and Products Exposition hosted

by NIGP: The Institute of Public Procurement

at the Washington State Convention and Trade

Center in Seattle, Wash. Awards presented at

NIGP Forum Aug. 18-22 recognized procurement

professionals “reaching new heights.”

NIGP’s 67th Annual Forum and Products Exposition

2012 NIGP CHAPTER OF THE YEAR AWARDS

Category: Small Chapter –

less than 80 members

Winner: Copper Chapter of NIGP

> Expanded access to professional

development programs by purchasing

the NIGP Signature Series to meet

member needs for educational

scholarship opportunities.

> Provided recertification

scholarship to nine individuals.

> Set up conference calls for

monthly chapter meetings to

allow participation by members

constrained by time or travel.

Category: Medium Chapter

– 81 to 200 members

Winner: Central Florida

Chapter of NIGP

Page 26: GovPro - August/September 2012

24 | AUGUST/SEPTEMBER 2012

IN DEPTH [NIGP awards]

NIGP AWARD WINNERS

Darin L.

Matthews,

FNIGP, CPPO,

C.P.M., Director

of Business

Operations, North

Clackamas School

District, Ore.,

won the Albert H. Hall Memorial

Award, NIGP’s top honor. This award

recognizes a former or present member

who has made outstanding contributions

to NIGP over an extended period of

time. Established in 1977, the Institute

named the award in honor of NIGP’s

founder, Albert H. Hall, who served

as the organization’s first Executive

Vice President from 1944 to 1975. As

a writer, author and teacher, Darin

Matthews is recognized everywhere

as a true professional who constantly

promotes cutting edge practices and

regularly pushes the envelope.

Carol Hodes, CAE, Director of

Professional Development at NIGP

(left), received the 2012 Anne

Deatherage Meritorious Service

Award in honor of NIGP’s Deputy Chief

Executive Officer, Anne Deatherage,

who served the Institute in a variety of

leadership capacities from 1972 to 2005.

Presenting the award (right) is Marcheta

Gillespie, NIGP’s first vice president.

NIGP presented the Distinguished

Service Award (DSA) to three

outstanding professionals: Lynda

Allair, CPPO, Retired, BPS Supply

Chain Secretariat, Cavan, Ontario

(left); Dr. Guy Callender, FCIPS,

Professor and Chair in Leadership of

Strategic Procurement, Curtin School of

Business, Perth, Australia (center); and

Judy Meisel, CPPO, CPPB Purchasing

Manager, City of Olathe, Kan. (right).

Laurie M. Roberts, CPPB, District

School Board of Pasco County, Fla. (left),

received the 2012 Professional Buyer

of the Year Award recognizing

non-supervisory professionals who have

made significant contributions to

purchasing, professional development,

their entity, their chapter, and the

Institute. NIGP’s Third Vice President

DeWight Dopslauf (right) presented the

award.

Carrie F. Woodell, CPPO, CPPB,

CFCM, C.P.M., A.P.P., City of Winter

Park, Fla., (left) won the 2012

Professional Manager of the Year

Award recognizing management

professionals who have made

significant contributions to purchasing,

professional development, their

entity, their chapter, and the Institute.

NIGP’s First Vice President Marcheta

Gillespie (right) presented the award.

Spirit of NIGP Awards recognize

three unsung heroes of the profession

who have played a significant role in

shaping the organization. Winners are

Ken Babich, BCom, CPPO, Director,

Purchasing Services, University of

Victoria (left); Jay Jackus, CPPO,

CPPB, Purchasing Administrator, City of

Tarpon Springs, Fla.(center); and Pam

McComb, NIGP photographer. (right)

The 2011 Lewis E. Spangler

Purchasing Professional Award

from the International Federation of

Purchasing and Supply Management

(IFPSM) was presented to Mike Bevis,

CPPO, J.D. CPPO, CPSM, C.P.M., PMP,

purchasing director, City of Naperville,

Ill. (left), for outstanding commitment to

the profession of Purchasing and Supply

Management by evidence of successful

contribution to the bottom line and

by support given to collaborators in

the area of education and training.

Don Buffum, NIGP’s second vice

president (right), presented the award.

New this year, the Measure Up Award

recognizes one NIGP agency member

best using the free member tool called

Measure to capture and report savings

Page 27: GovPro - August/September 2012

and efficiency gains through procurement

activities. The inaugural recipient of

this award is the Washington State

Department of Transportation,

which documented almost $10

million of savings and efficiency gains

last fiscal year through demand,

supplier and process management

Multnomah County Purchasing,

Ore., won the NIGP Innovation

Award for developing an in-house,

low-cost computer-based platform

to train those with procurement and

contract development roles throughout

the organization. Using off-the-shelf

computer-based course development

software and a freeware learning

management system, they were able

to achieve a 69 percent savings over

contracting for the work. In addition,

the computer-based training provides

Contract Administrators access to greatly

needed educational resources that are

flexible to their individual schedules.

This procurement training solution was

made available to support the training

needs of other agency departments.

Sound Transit Procurement and

Contracts Division, Seattle, Wash.,

won the Pareto Award of Excellence

in Public Procurement. The Pareto

Award is the pinnacle award for public

procurement excellence. It is tantamount

to the Malcolm Baldridge National

Quality Award and the Deming Prize for

&T ,BS-OMENT2ATING,B-AXIMUM#APACITY

,)&4-//2%S4RUCK-OUNTED#RANE

,)&4-//2%S4RUCK-OUNTED#RANE

&T ,BS-OMENT2ATING,B-AXIMUM#APACITY

s&T0OWER%XTENSIONs#ONTINUOUS2OTATIONs(EX"OOMs7IRELESS2EMOTE#ONTROLs(IGH3PEED0LANETARY'EAR7INCHs!LLSTANDARDFEATURESOFTHISNEWCRANE

,IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTO,BS

(OUSTON4EXASs &!8 WWWLIFTMOORECOM

,)&4-//2%).#,)&4-//2%).#

Quality. The Pareto Award accreditation

is earned only by OA4 accredited

agencies who have undergone extensive

evaluation by a third party review team

and met all performance requirements.

Kelly Okken, CPPB, VCO, James

Madison University, Va., won the

NIGP Diversity Essay Award

for “Can Diversity Be Evaluated in

Public Sector Procurement Process?”

Ruth Estrada, CPPB, City of Tucson,

Ariz., won the NIGP Ethics Essay

Award for “Even Superman Has a

Weakness: What is Your Kryptonite?”

OA4 ACCREDITATION AWARD RECIPIENTS

Achievement of OA4 accreditation is

awarded based on successful completion

of an agency self-evaluation process that

assesses performance in 12 key functional

areas. Obtaining OA4 accreditation is a

prerequisite to qualifying for the pinnacle

agency accreditation in public procurement,

the Pareto Award of Excellence.

Arizona Department of Transportation

Atlanta Public Schools, Ga.

Chesterfield County, Va.

City and County of Honolulu, Hawaii

City of Chandler, Ariz.

City of Richmond, Va.

Cobb County School District, Ga.

Cobb County, Ga.

Colorado Springs School

District 11, Colo.

Denver Public Schools, Colo.

Fulton County, Ga.

Gwinnett County, Ga.

Howard County, Md.

Loudoun County, Va.

Miami-Dade County, Fla.

Pima County, Ariz.

Region of Peel, Ontario

Texas Department of Transportation

Page 28: GovPro - August/September 2012

26 | AUGUST/SEPTEMBER 2012

IN DEPTH [NIGP awards]

A smarter way to meet sustainability goals.Staples Advantage,® the contract division of Staples, offers sustainable products for the best office solutions that support your environmental objectives and your budget.

UÊÊ«>ÀÌiÀÊVÌÌi`ÊÌÊÞÕÀÊÃÕÃÌ>>LÌÞÊ>Ã

UÊÊ"ÛiÀÊ£ä]äääÊ«À`ÕVÌÃÊÜÌÊÀi`ÕVi`ÊiÛÀiÌ>Ê«>VÌ

UÊÊÕiivwViÌÊ`iÛiÀÞÊÌÀÕÊ>iiVÌÀVÊÌÀÕVÃ]Êëii`ÊÀi`ÕVÌÊ>`ÊÀi

UÊÊ,iVÞVÊÃiÀÛViÃÊvÀÊÌiÀÊ>`Ê]ÊiÜ>ÃÌi]ÊViÊ«iÃÊ>`ÊvÕÀÌÕÀiÊ«À`ÕVÌÃ

To learn more or to become a customer, visit StaplesAdvantage.com/statelocalgov

Bright. Green.

2012 CERTIFIED AGENCIES

Alaska Department of General Services

Anderson County, Tenn.

Anne Arundel County Schools, Md.

Arizona Offi ce of Tourism

City of Ames, Iowa

City of Cedar Rapids, Iowa

City of Chandler, Ariz.

City of Dunwoody, Ga.

City of Clearwater, Fla.

City of Goodyear, Ariz.

City of Fort Collins, Colo.

City of Fort Lauderdale, Fla.

City of League City, Texas

City of Longmont, Colo.

City of Miami Gardens, Fla.

City of Naperville, Ill.

City of Olathe, Kan.

City of Oviedo, Fla.

City of Raymore, Mo.

City of Port St Lucie, Fla.

City of Red Wing, Minn.

City of Sparks, Nev.

City of Tarpon Springs, Fla.

City of Venice, Fla.

City of Wheaton, Ill.

City of Winter Park, Fla.

Glendale Elementary

School District, Ariz.

Hinds Community College, Miss.

Johnson County, Kan.

Kentucky Division of Engineering

and Contract Administration

King George County, Va.

Larimer County, Colo.

Little Rock Wastewater, Ark.

Livingston County, Mich.

Louisiana Dept of Transportation

and Development

Maricopa County, Ariz.

Nashville Electric Service, Tenn.

Ohio Department of Aging

Ohio Lottery Commission

Old Dominion University, Va.

Polk State College, Fla.

Santa Rosa Co School Board, Fla.

Technical College System of Georgia

Texas Racing Commission

Town of Marana, Ariz.

Town of Oro Valley, Ariz.

Unifi ed Purchasing Cooperative

of the Ohio River Valley, Ohio

Village of Glenview, Ill.

Village of Niles, Ill.

Warren County, Miss.

Wichita Public Schools, Unifi ed

School District 259, Kan.

NOTE: Bold text indicates

Sterling Agency Award Recipient.

Through its Agency Certifi cation Award

program, the Universal Public Purchasing

Certifi cation Council (UPPCC) identifi es

organizations that have earned the

distinguished and unique honor of

achieving and/or maintaining a UPPCC

fully certifi ed public procurement

staff. This program was developed

to recognize those organizations that

have made a concerted effort to

achieve procurement excellence.

Sterling Agencies have maintained

Certifi ed Agency standing for three

or more consecutive year. Visit www.

uppcc.org to learn what it takes

to become a Certifi ed Agency.

Page 29: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 27

PEOPLE [cppo/cppb]

The Snocrete® name was adopted by

Fair Mfg. Inc., as a word used to de-

scribe the snow of the Dakotas. Any

snowblower can blow light fluffy

snow, but Snocrete® Snowblowers are

engineered to move the hardest snow

and ice, and endure the harshest condi-

tions expected of them.

The Snocrete® line is available in a

variety of sizes, each featuring twin fan

impellers with ice chopper bars. To see

why Snocrete® Snowblowers are truly

the best built and performing snow-

blowers on the market, call or visit our

website today.

PO Box 536

Menno, SD 57045

(605) 387-2389

[email protected]

www.fairmfg.com

®

uccessfully completing UPPCC certifi cation

exams in May 2012 were 208 individuals,

including 151 who earned the CPPB certifi cation and 57

who earned the CPPO. To date, 8,921 CPPB and 2,125

CPPO certifi cations have been awarded by the UPPCC.

(See complete list of May certifi cants on page 28.)

Th e Certifi ed Public Purchasing Offi cer (CPPO) and

Certifi ed Professional Public Buyer (CPPB) are globally

recognized credentials off ered exclusively by the Universal

Public Purchasing Certifi cation Council (UPPCC). Th e

certifi cation programs systematically raise the level of

professionalism within the public procurement profession

by off ering recognition to those individuals who meet

an established standard of competency for public

procurement demonstrated through a rigorous application

process and superior examination performance.

A comprehensive written examination (specifi c to

each certifi cation) is required to confi rm the candidate’s

mastery of a variety of public procurement concepts

found in the UPPCC Body of Knowledge.

Th e UPPCC has released key performance

data from the May 2012 examinations:

Overall Scoring/Passing Rates. Sixty-one

percent of the 94 total candidates who tested for the

CPPO passed, while 57 percent of the 264 candidates

who tested for the CPPB passed. Mean passing scores for

CPPB candidates were 36 points higher than for CPPO.

Testing Time. Th e total testing time permitted for

both examinations is 3.5 hours. Th is equates to a total of

210 minutes for 190 questions (175 operational or scored

and 15 pre-test questions), or on average 1 minute and

10 seconds for each test question. For CPPO, the average

completion time was 2.70 hours with a range from 3.5

hours maximum to .75 hours minimum. For the CPPB,

the average completion time was 2.63 hours with a range

from 3.5 hours maximum to 1.05 hours minimum.

Exam Content. Content for both the CPPO

and CPPB examinations are dictated by the 2008

UPPCC Body of Knowledge (BOK). A total

of 10 domain areas comprise the BOK:

1. Administration Aspects of Purchasing

2. Procurement Requests

3. Solicitation and Evaluation of Bids/Proposals

4. Supplier Analysis

5. Negotiation Process

6. Contract Award and Administration

7. External/Internal Relationships

8. Materiels Management

9. Human Resources/Personnel

10. Forecasting and Strategies

Th e UPPCC reports that for both CPPO and CPPB,

candidates performed the best in Domain 6: Contract

Award and Administration. CPPO candidates performed

the poorest in Domain 4: Supplier Analysis and Domain 8:

Materiels Management. Conversely, CPPB candidates had the

most diffi culty in Domain10: Forecasting and Strategies.

Candidate Preparation. UPPCC reports that

most candidates indicated, via a post examination survey,

spending between three and six months preparing for their

respective examinations. Th e organization also reports

that CPPO candidates who indicated spending one month

or less preparing experienced the highest rates of passing

compared to other timeframes of preparation; however,

in evaluating CPPB candidate performance, preparation

times between one and three months, as indicated by high

passing rates, appeared to be the optimal timeframe.

PERFORMANCE DATA ON THE LATEST CERTIFICATION EXAMS

S

Page 30: GovPro - August/September 2012

28 | AUGUST/SEPTEMBER 2012

PEOPLE [meet the pros]

> UPPCC new certificationsMay 2012—The Universal Public Procurement Certification Council (UPPCC) announces that 196

individuals successfully completed the spring 2012 UPPCC certification examinations administered May

7-19, 2012.The Certified Public Procurement Officer (CPPO) and Certified Professional Public Buyer

(CPPB) credentials are recognized throughout the public procurement profession as demonstration

of an individual’s comprehensive knowledge of public procurement. Of the 208 newly certified

individuals, 151 earned the CPPB certification and 57earned the CPPO certification. This newest class

of professionals brings the total number certified for CPPB and CPPO to 8,921 and 2,125 respectively.

CPPOAlice C. Bailey, CPPO, C.P.M. City of Sumter, S.C.

Daphne A. Burch, CPPO, GCPA, GCPCA Armstrong Atlantic State University, Ga.

Stephanie H. Chen, CPPOSan Diego Convention Center, Calif.

Sandra E. Clifford, CPPO, J.D. Maryland Port Administration

James W. Cockrell, CPPOState of Illinois Procurement

Bruce D. Collins, CPPOCity of El Paso, Texas

Michelle L. Comeau, CPPO, CPPB Halifax Regional Water Commission, Nova Scotia, Canada

Randy M. Cross, CPPOCity of Miramar, Fla.

Rufus G. Crowder, CPPO,CPPB County of Galveston, Texas

Kenneth Crutcher, CPPOState of Illinois Procurement

Marilyn J. Douglas, CPPO,CPPB City of Longwood, Fla.

Christopher M. Flynn, CPPO State of Illinois Procurement

Karen S. Forbes, CPPOCity of Pasadena, Texas

Laurie A. Gaudet, CPPO, CPPB Corporation of the County of Simcoe, Ontario, Canada

Sherry George, CPPOPort Chester-Rye School District, N.Y.

Jon W. Hopkins, CPPO, A.A.,B.A. County of Amador, Calif.

Karen D. Hubbard-Washington, CPPO, C.P.M.Washington, DC

Dean P. Hudson, CPPOCoastal Carolina University, S.C.

Courtney A. Hunt, CPPO, CPPB Fulton County Schools, Ga.

Robert P. Jones, CPPO, CPPB Oregon Department of Community Colleges and Workforce Development

Cheral A. Jones, CPPO, CPPB Washington - Department of Enterprise Services, Contracts and Legal Services – Master Contracts and Consulting

Philip C. Kaufmann, CPPO State of Illinois Procurement

Terri L. Kindsfather, CPPO, CPPB, CPIM City of Lakewood, Colo.

Pamela A. Lange, CPPO, CPPB, C.P.M. Clark County School District, Nev.

Mark W. Lutte, CPPOState of Maine, Maine

Robin A. Lynes, CPPO, CPPB Wichita Public Schools, Kan.

Paula K. Mah, CPPO, CPPBCity of Edmonton, Alberta, Canada

Adam P. Manne, CPPOPrince William County, Va.

Yetta S. Meadows, CPPOMarshall University, W.V.

Wendy L. Miller, CPPO, CPPB St. Johns River Water Management District, Fla.

Elizabeth H. Moss, CPPO, J.D. Howard Community College, Md.

Cathie L. Nash, CPPO, CPPB Maryland State Retirement Agency

Rey A. Palma, CPPO, CPPB, MPA Georgia Building Authority, Ga.

Catherine A. Payne, CPPO, CPPB Corporation of the County of Simcoe, Ontario, Canada

Kathy W. Perry, CPPO, CPPB Texas Department of Transportation

Loralei M. Poll, CPPO, CPPB Valley Metro Rail Procurement Department, Ariz.

John E. Red Horse, CPPO, CPPB Pinal County, Ariz.

Christine A. Rewis, CPPO, CPPB, FCCM Polk County Board of County Commissioners, Fla.

Ronald R. Rowland, CPPOState of Ohio

Maria J. Salvatierra, CPPO, CPPB, MBA City of North Miami Beach, Fla.

Jennifer D. Sanchez, CPPO Town of Orange Park, Fla.

Amadu Sankoh, CPPOOhio Department of Education

Kevin M. Scheirer, CPPOState of Maine

Billie F. Smith, CPPO, CPPB City of Huntsville, Texas

Edward L. Smylie, CPPOCity of Farmington, N.M.

Laura Stephens, CPPO, CPPB Kentucky Transportation Cabinet, Ky.

Julie Taylor, CPPO, CPPBSan Mateo County Transit, Calif.

Brandon D. Thomas, CPPO Utah Valley University, Utah

David R. Tincher, CPPOWest Virginia Department of Administration

Page 31: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 29

Roberta Wagner, CPPO, CPPB, CPIM West Virginia Department of Administration

Dave D. Wells, CPPO, CPPB Toronto District School Board, Ontario, Canada

Michael A. Wenzel, CPPOState of Maine

Angela C. White, CPPOPrince William County Service Authority, Va.

Lezlye S. Williams, CPPOBroward County Sheriff ’s Office, Fla.

Michael J. Woodall, CPPODistrict School Board of Pasco County, Fla.

Dwayne A. Young, CPPO, CPPB, VCCO, VCO Old Dominion University, N.C.

Yu Zhu, CPPO, C.P.M.Montgomery Community College, Va.

CPPBDeborah J. Adams, CPPBCity of Punta Gorda, Fla.

Scott A. Agnello, CPPBCorporation of the City of Kitchener, Ontario, Canada

Amy Almanzar, CPPBBroward County Board of County Commissioners, Fla.

Cynthia Alonzo, CPPBCity of Denton, Texas

Lori A. Andrews, CPPBState of Illinois Procurement

Colleen T. Bailey, CPPBCity of Yakima, Wash.

Debbie L. Bakker, CPPBCorporation of the City of Brantford, Ontario, Canada

Sherry-Ann Besla, CPPBRegional Municipality of Peel, Ontario, Canada

Kayci E. Bohlen, CPPBState of Illinois Procurement

Tara K. Bohnsack, CPPBHernando County, Fla.

Bambi L. Brenden, CPPBArizona Department of Administration

Christopher L. Bresley, CPPB Loudoun County, Va.

Delia Bridges, CPPBCity of Macon, Ga.

Adrian Brown, CPPB,JDCity of Palo Alto, Calif.

Guinevere A. Bruner, CPPB County of Bucks, Pa.

Joanna Brzezicki, CPPBRegional Municipality of Peel, Ontario, Canada

Steven R. Burns, CPPBSt. Mary’s County Government, Md.

Tracie A. Byrne, CPPBCity of Hamilton, Ontario, Canada

Holly G. Cafferata, CPPBGwinnett County, Ga.

Warivone (Vonnie) Caporiccio, CPPBRegional Municipality of Halton, Ontario, Canada

Michael S. Carter, CPPBMohave Educational Services Cooperative, Ariz.

Deborah M. Castaldo, CPPB Washington Suburban Sanitary Commission, Md.

Colleen L. Caton, CPPBState of Illinois Procurement

Michelle E.Charnoski, CPPB City of Dallas, Texas

Jason K. Chernecky, CPPBYork University, Ontario, Canada

Christopher C. Cohen, CPPB Washington State Department of Transportation

Mitchell P. Cohen, CPPBBroward County Board of County Commissioners, Fla.

Nancy L. Colbaugh, CPPBMohave Educational Services Cooperative, Ariz.

LaSonya Collins, CPPBCity of Indianapolis, Ind.

Kristen L. Collora, CPPBFlagler County Board of County Commissioners, Fla.

Edward (Ted) F. Coyman, CPPB Sarasota County, Fla.

Mirjana Maryanne Cucuz, CPPBCity of Hamilton, Ontario, Canada

Nyesha Daley, CPPBSmyrna, Ga.

Gerrell Y. Dangerfield, CPPB Berkeley County, S.C.

Michael F. Dauta, CPPBCity of Boynton Beach, Fla.

Alfredo De Luna, CPPBCounty of Los Angeles, Calif.

Eduardo (Ed) F. DeLaVega, CPPBVillage of Wellington, Fla.

Teresa Donsbach, CPPB,CTPS City of Indianapolis, Ind.

Belinda G. Dunn, CPPBDeKalb County, Ga.

Karma L. Durre, CPPBPolk County Sheriff ’s Office, Fla.

Victor C. Emenanjor, CPPB New York City Human Resources Administration

Debra A. Espinoza, CPPBEl Paso Community College, Texas

Tiffany M. Evans, CPPBFairfax County Public Schools, Va.

Wanda R. Farmer, CPPB, M.B.A. City of Newport News, Va.

Susan (Su) A. Fennern, CPPB, OPBC Oregon Department of Education, Ore.

Jeannette D. Ferrell, CPPB, MBA Broward County Board of County Commissioners, Fla.

Krista S. Ferrell, CPPBWest Virginia Department of Administration

Jo-Anne L. Filipkowski, CPPB Hauppauge Public Schools, N.Y.

Robin F. Friefield, CPPBCity of Mississauga, Ontario, Canada

Kathleen P. George, CPPBOregon State Lottery

Toby W. Giddings, CPPBOregon Department of Administrative Service

Janielle M. Graham, CPPBState of Illinois Procurement

Stacy Gregg, CPPBRichland County School District One, S.C.

Christine A. Grommons, CPPB Las Vegas Convention and Visitors Authority, Nev.

Joetta Gross, CPPBUniversity of Missouri System, Mo.

Marlys K. Hagen, CPPB, C.P.M. State of Alaska

Harold W. Hamby, CPPBPolk County School Board, Fla.

James L. Hanney, CPPBHillsborough County Department of Procurement Services, Fla.

Mary K. Harper, CPPBCity of Columbus, Ohio

Mark M. Haywood, CPPBDeKalb County, Ga.

Kathleen A. Herman, CPPB San Diego Unified School District, Calif.

James H. Hoagland, CPPBDelaware Department of Transportation, DE

Rebecca C. Hoffman, CPPB Fairfax County Government, Va.

Page 32: GovPro - August/September 2012

PEOPLE [meet the pros]

Anthony Holt, CPPBCentral Contra Costa Sanitary District, Calif.

Eileen M. Hunt, CPPBSchool Board of Broward County, Fla.

Lenika A. Hutchens, CPPBWashington County , Ore.

Nicole Jensson, CPPBOlmsted County, Minn.

Anne Jewell, CPPBState of Maryland

Jeannine C. Joergensen, CPPB San Diego Unified School District, Calif.

Jennifer M. Jolley, CPPBOregon Department of Revenue

Rachelle L. Jones, CPPBHernando County, Fla.

Edward M. Jordan, CPPBCounty of Ulster, N.Y.

Chad M. Jorissen, CPPBWhatcom Transportation Authority, Wash.

Maye E. Kelsey, CPPBState of Illinois Procurement

Kellye Keyes Jackson, CPPB State of Illinois Procurement

Jonathan Klinkenberg, CPPB Saint Paul Public Schools ISD #625, Minn.

John C. Knittle, CPPBState of Illinois Procurement

Nancy B. Knudsen, CPPBMaryland State Highway Administration

John W. Kohut, CPPBCity of Dallas, Texas

Yuliana Konovalova, CPPBMetro Transit Authority, N.Y.

Laura R. Langston, CPPBHouston County Board of Education, Ga.

Sau Lee, CPPBCounty of Los Angeles, Calif.

Javon S. Lewis, CPPBMontgomery County Department of Job and Family Services, Ohio

Susana Liang, CPPBTown of Richmond Hill, Ontario, Canada

Christina D. Lochbaum, CPPB Ohio Department of Public Safety

Yvonne A. Lucas, CPPBCity of Long Beach, Calif.

Patrice D. Luehring, CPPB, BS Little Rock National Airport, Ark.

Christopher J. Maher, CPPB City of Mesa, Ariz.

Tesfamichael Makonnen, CPPB State of Ohio

Janet L. Malloy, CPPBYork Regional Police, Ontario, Canada

Frederick P. Mannino, CPPB City of Biloxi, Miss.

Sheila R. Mansell, CPPBFlorida Department of Military Affairs, Fla.

Erick A. Martinez, CPPBMiami Dade County Internal Services Department, Fla.

Miguel A. Martinez, CPPB,FCCM Orlando, Fla.

Michael J. Marzullo, CPPBLoudoun County, Va.

Mansfield W. Matthewson, CPPB, C. P. M. Grand Rapids Community College, Mich.

Joan M. McCarty, CPPBRegion of Waterloo, Ontario, Canada

MAKE MOLEHILLS

OUT OF MOUNTAINS.

The Cushman 1600XD lives to conquer any job.

There’s no task too big for the 22-hp diesel engine,

1,600-lb payload and massive cargo bed. And no

matter where work needs to be done, you’ll get

there thanks to user-selectable 4WD, a locking rear

differential and 4-wheel independent suspension.

So, whether you’re moving mountains or driving

over them, the 1600XD is ready for action.

LET’S WORK.

www.cushman.com© 2012 Textron Inc. All rights reserved.

Page 33: GovPro - August/September 2012

XXXHPWQSPDPNrGOVERNMENT PROCUREMENT | 31

Clare A. McGrane, CPPBPinellas County, Fla.

Molly McLoughlin, CPPBBoulder Valley School District, Colo.

Betty (Elizabeth) Miller, CPPB City of Mississauga, Ontario, Canada

Jolena K. Missildine, CPPB, CCM Washington State Department of Transportation

Terry V. Nicholson, CPPBCity of Austin, Texas

Catherine A. Nocco, CPPB Sachem Central School District, N.Y.

Jamie D. Oakley, CPPBRegional Municipality of York, Ontario, Canada

Jacqueline Osti, CPPBCounty of Wellington, Ontario, Canada

Lisa A. Parkison, CPPBWayne-Finger Lakes BOCES, N.Y.

Carrie D. Parks, CPPBPlacer County Water Agency, Calif.

Carrie A. Patrick, CPPBHarris County, Texas

Michael A. Pfister, CPPBCounty of Santa Clara, Calif.

Wanda G. Pleasant, CPPBHouston Community College, Procurement Operations Department, Texas

Monica Powery, CPPBCity of Greenacres, Fla.

Darlene D. Reynolds, CPPB District of Columbia Superior Court, DC

Cynthia J. Rigby, CPPBQueensbury Union Free School District, N.Y.

Zaida Riollano, CPPB,CCABroward College, Fla.

Vearnetta N. Rivers, CPPB Fulton County - Department of Purchasing, Ga.

Jesus D. Rosario, CPPB, C.P.M. Sacramento Job Corps Center, Calif.

Gustavo M. Rossell, CPPBAlbuquerque Public Schools, N.M.

Sarah L. Roth, CPPBOregon Secretary of State, Ore.

Kate H. Rouse, CPPBHillsborough County Public Schools, Fla.

Adrian C. Ruger, CPPB, C.P.M. State of Utah, Division of Purchasing, Utah

Lisa S. Ryals, CPPBCollege Center for Library Automation, Fla.

Cyndee D. Sams, CPPB,FCCN,FCCM Florida Department of Children and Families, Fla.

Sandra S. Sanchez, CPPB,C.P.M.,A.P.P. Albuquerque Public Schools, N.M.

Claudia Sanchez, CPPBMontebello Unified School District, Calif.

David E. Schlueter, CPPBCity of Minneapolis, Minn.

Denise Schulsinger, CPPBHernando County, Fla.

Doug W. Schwartz, CPPBPublic School Retirement System of Mo.

Debra L. Scott, CPPB,OBPC,OPMA Oregon Department of Administrative Service

Richelieu M. Sese, CPPBCity of Independence, Mo.

Jennifer L. Shaefer, CPPBState of Ohio

Sarah S. Shanmugam, CPPB Regional Municipality of Peel, Ontario, Canada

Cathrine A.Sheckell, CPPB Health and Hospital Corporation of Marion County, Ind.

Terri A. Smith, CPPBCity of Virginia Beach, Va.

Aimee O. Storm, CPPBPlano, Texas

Peter G. Taylor, CPPBChignecto-Central Regional School Board, Nova Scotia, Canada

Eric J. Thompson, CPPBUniversity of Wisconsin Madison SSEC

Gayle A. Thomson, CPPBKitsap Transit, Wash.

Marina L. Tuileta, CPPBSuperior Court of California, County of Orange

Life A. Verlooy, CPPBSt. Louis County - Purchasing Division, Minn.

Candace J. Vis, CPPBTown of Queen Creek, Ariz.

Adam Walker, CPPBCity of Ottawa, Ontario

Rose M. Weaver, CPPBCity of Virginia Beach, Va.

Solomon Wedderburn, CPPB Corporation of the City of Brantford, Ontario, Canada

Karl L. Wendt, CPPB,CPSM Iowa Dept of Administrative Services

Guy A. Werner, CPPBMaryland State Retirement Agency

Amy M. Wheeler, CPPBNashville Electric Service, Tenn.

Robert D. Wicker, CPPBCity of Jacksonville – Fla.

Larry L. Woo, CPPBPinal County, Ariz.

Beverly M. Yount, CPPBCity of Piqua, Ohio

Andrew M. Yunt, CPPB,BA/BS Commission for Children with Special Health Care Needs, Ky.

Elizabeth J. Zink, CPPBPinal County, Ariz.

ADVERTISER INDEX

ADVERTISER .......................................................PAGE

APPLIED INDUSTRIAL TECHNOLOGIES ......... 20

ARI FLEET .................................................................BC

ELECTRALED, INC. ................................................. 15

E-Z-GO ........................................................................ 30

FAIR MANUFACTURING, INC. ............................ 27

FORD MOTOR COMPANY ....................................... 3

HD SUPPLY FACILITIES MAINTENANCE ......... 22

IMAGING SUPPLIES COALITION .......................... 5

INSIGHT ENTERPRISES, INC. .............................. 21

INTIRION-MICROFRIDGE .................................. IBC

JOHN DEERE ...........................................................IFC

LIFTMOORE INC. ..................................................... 25

MASTERCARD INTERNATIONAL ..................... 6, 7

NATIONAL JOINT POWERS ASSOCIATION.... 11

PUBLIC SOURCING SOLUTIONS ....................... 14

SERVICEWEAR APPAREL ..................................... 19

STAPLES ADVANTAGE .......................................... 26

U.S. COMMUNITIES ..................................... 16-17, 18

U.S. GENERAL SERVICES ADMINISTRATION .. 9

Page 34: GovPro - August/September 2012

32 | AUGUST/SEPTEMBER 2012

BACK PAGES [fred marks]

FREDERICK MARKS, CPPO, VCO, is a retired purchasing officer who has held positions as a supervising buyer for the Port Authority of New York and New Jersey as well as director of material management for Northern Virginia Community College. Contact Marks at [email protected].

T&M: Not a license to stealention a T&M contract to most buyers and you’ll see their face frozen in dismay.

You can just hear the words “blank check” and “license to steal” going through their

minds. Time and material contracts are a complex method of contracting with potential

for abuse. You are paying for direct labor at a fixed hourly rate (which includes direct and

indirect labor, overhead and profit) and materials at cost or at a previously agreed-upon

material cost markup. The most common types of T&M contracts are repair or service

contracts. Each one has special needs and requirements, and the buyer, contract administrator

and vendor each have important roles to play if the contract is to be successful.

It’s up to the buyer to research the particular pricing structure and labor rates of the categories

that will be performing on their contract. I have previously written here about repair contracts

(Government Procurement, June 2008) and how one can structure estimated hours to effect a

repair. A journeyman mechanic is priced at a different rate than a trades helper. Labor rates differ in

each specialized trade depending on experience, time in grade, training, certification and abilities.

Check information on the contractor’s personnel; ask for copies of their certifications and the

standing of those certifications in a particular industry. Anyone can print a certificate. You should

be looking for certifications that can be verified by training and education and have transparency.

The contract administrator has a difficult job in that he or she is responsible to verify not

only that the work is done correctly, but also the time each category of labor spends on a

specific project task. In the case of a large number of employees, such as a painting contract,

verification of the vendor’s personnel should be done by sign-in sheets,

proof of identity using government-issued ID, and a random taking of

attendance. You may be better served by using a database to keep track

of the vendor’s personnel. Your buyer, client and contract administrator

should work as a team to set down the rules on how the contract will

be administered, and I would also include those rules in the contract

documents. Remember the “no surprises” rule. Neither party wants them!

One of the biggest complaints about a T&M contract from Bill Lindsey

of Gloucester County, Va., is that there is no incentive for the vendor to

control costs or to have an end in sight. I would like to think that most

vendors are responsible businesses and want to provide enough detailed

information to a buyer so their costs are covered in the schedule of unit

prices and other pricing information revealed by the buyer’s research.

To that end, it’s the responsibility of the buyer to ensure that a detailed

account of what needs to be accomplished is provided and approved prior to the

commencement of any work. Verification of the vendor’s claims for additional work is difficult unless

you have an expert on staff who can help you. Just remember, you can rent help. Look around and see

what an independent consultant will charge to verify claims. Contact a testing lab; ask a colleague

in another public body if they will “loan” you an expert (it’s how we work together as a profession).

Some buyers put in a “not to exceed” clause which may work for your particular needs.

Some use estimated hours, and others rely on a quote prior to the start of work. Whatever

you use, verify, verify and verify. There are instances of additional work to be performed

after agreed-upon work starts. Write a decent and liberal extra work clause and make

it dependent on the vendor’s complete explanation of what needs to be performed. The

agreement of the client and contract administrator will complete your audit trail.

M

Page 35: GovPro - August/September 2012

/ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯ&ŽdžďŽƌŽDϬϮϬϯϱ;ဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽ&ƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨ/ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞ/ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽ&ƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽ&ƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ,

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plug® Technology: ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

Page 36: GovPro - August/September 2012

Call today for a demo: 800-477-4715

arifl eet.com

Think big.We’re talking about the ability to handle Big

Data—more data than ever before. Diverse

data, on a global scale. And not just handle

it. Master it. So you can get more done. In

fact, ARI analytics™ does everything in a big

way—including saving you time and money.

Get reports on the fl y across multiple categories and much more.

analytics