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Piggybacking vs. Bidding: A Quantitative Analysis

Piggybacking vs. Bidding: A Quantitative Analysis. Jeff LaPorta: Supervisor of Purchasing, Harford County Public Schools Eric Younkin : The Garland Company Tyler McCall: US Communities Program Manager. Piggybacking. Why Do I t? Soft Cost Savings But…How M uch?.

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Piggybacking vs. Bidding: A Quantitative Analysis

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  1. Piggybacking vs. Bidding:A Quantitative Analysis

  2. Jeff LaPorta: Supervisor of Purchasing, Harford County Public Schools Eric Younkin: The Garland Company Tyler McCall: US Communities Program Manager

  3. Piggybacking Why Do It? Soft Cost Savings But…How Much?

  4. What Do We Need To Know To Calculate Savings? What Are The Steps Involved In A Bid? Who Is Involved In The Process? What Is The Cost For Them To Do This?

  5. What Are The Steps Involved In A Bid? • Work With The End User For S.O.W. • Review Specifications & Finalize Bid • Pre-Bid Conference • Process Questions From Pre-Bid • Bid Opening • Analyze Bid Responses • Evaluate Bid Tab& Determine Awardee • Complete Paperwork; Contract, Board Letter, etc.

  6. Who Is Involved In The Process? • Purchasing Agent • Purchasing Assistant • Project Manager/End User • Legal Office?

  7. What’s Next? How Long Does It Take To Do A Bid? How Long Is Each Person Involved?

  8. Cobb County, GA & The Garland Company, Inc.Benchmarking Cost Savings

  9. The Garland Company • U.S. Communities Roofing Products and Services Contract • Cobb County, GA is Lead Public Agency for contract

  10. Things to Consider • What are specific requirements for certain types of bids? • ITB vs. RFP • Does the Cooperative Contract meet these requirements • What does the Cooperative Contract provide to bring value? • Are there additional savings for other departments upon contract award?

  11. Cobb County, GA Study • Things to considers • Garland’s contract provides design assistance as part of the overall package • Typical design fees 7-10% of total project cost • Project/Construction Management throughout the entire process/project • Saves facilities staff time during construction process • Life cycle cost studies for various roof systems to quantify final cost • Time Savings for Purchasing and Facilities

  12. Lets Look at the Analysis

  13. Agency Time and Money Savings

  14. Value-Added Services Provided • Estimated initial project cost - $275,000 • New cost - $242,766 = 11% savings

  15. National Cooperative Purchasing Program • No cost to use; no commitments or minimum order requirements • Operates on the same principles as local and regional cooperatives • National structure for public agencies to aggregate collective purchasing power – over 60,000 agencies registered • Improves the overall effectiveness of the purchasing processes • Nonprofit organization: partnership dedicated to establishing solutions to save time and money • Dedicated team of field and administrative professionals to ensure supplier performance and public agency benefit

  16. Presence and Credibility NIGP: The Institute for Public Procurement National Association of Counties (NACo) Association of School Business Officials International (ASBO) National League of Cities (NLC) United States Conference of Mayors (USCM) State Sponsors: Over 90 State Sponsors Nationally

  17. Advisory Board • Professional Oversight: Advisory Board of well-respected public procurement professionals to ensure responsible and ethical best practices Auburn University, ALCity of Chicago, IL City and County of Denver, COCity of Houston, TXCity of Kansas City, MOCity of Los Angeles, CACity of San Antonio, TXCity of Seattle, WACobb County, GADenver Public Schools, COEmory University, GAFairfax County, VAFresno Unified School District, CA Great Valley School District, PAHarford County Public Schools, MDHennepin County, MNLos Angeles County, CAMaricopa County, AZMiami-Dade County, FLNassau BOCES, NYNorth Carolina State University, NCOrange County, NYPort of Portland, ORPrince William County Schools, VA Salem-Keizer School District, ORSan Diego Unified School District, CAThe School District of Collier County, FL Advisory Board Program Purchased Over $146 Millionin 2013

  18. Eligible Agencies • Cities • Counties • Special Districts • K-12 (Public or Private) • Universities and Colleges (Public or Private) • Nonprofit Organizations • State Agencies

  19. Registration Growth

  20. Solicitation Process: Lead Public Agency Model • Solicitations are run by a Lead Public Agency (LPA) • The RFP or ITB is issued by the LPA and posted online • National evaluation team - public procurement officials from 3 to 5 public agencies across the country • Evaluation is performed and award is made • Contracts are held and managed day to day by LPA • All RFP/ITB and Contract documents are available on www.uscommunities.org • LPA’s are available for questions about solicitation

  21. Solutions

  22. Supplier Savings Example • Each supplier has committed their U.S. Communities price is their best overall government pricing • Hertz – discounts from 15-55%, average savings of 20-30% • Applied Industrial Technologies – 10-70% discount • Ricoh family of copiers – up to 67% discount • The Home Depot – up to 3% rebate on annual purchase amounts • Independent Stationers – ability to use local office supply dealers and save up to 86% off list pricing

  23. Free to U.S. Communities participants • Single source login for access to multiple suppliers • Immediate visibility into products and pricing • Ability to make purchases with p-card or credit card • Provides comprehensive reporting • Eliminates paper entirely – your green procurement solution • www.uscommunities.org/shop

  24. How to Participate www.uscommunities.org/register 1. 2. Complete registration information 3. Can register more than one dept. and buyer 4. Registration enables agency to use program and to be automatically notified of new contracts and solutions Already a customer of a supplier partner? • Work directly with your current representative and request “best U.S. Communities member pricing”. • Pay exactly as you always have. Never worked with a company? • Work with Program Manager to connect with sales representative. • Set up an account and pay the company directly.

  25. Program Information www.uscommunities.org • Register online • Authorizing legal statutes • Frequently asked questions (FAQ) sheet • Documentation: original solicitation and contract • References: Advisory Board members, state sponsors • Supplier links, product information & contact information • Participant login page

  26. www.uscommunities.org Tyler McCall U.S. Communities Cell: 704-776-3193 Tmccall@uscommunities.org Contact Information

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