Contracts Below $10,500 No advertising or competitive ... · Contracts Below $10,500 No advertising...

Contracts Below $10,500 No advertising or competitive bidding or price quotes required

Contracts Between $10,500 and $19,400 Three informal price quotes are required with

award to the lowest

Contracts Over $19,400 Advertise twice and formal competitive bidding is required.

PA Procurement Law

The COSTARS program provides registered local public procurement units (LPPU) within the Commonwealth and Suppliers a tool to do business with each other effectively through the use of a contract

established by DGS.

This approach leverages the purchasing power of more than 8,100 local entities combined with the State to obtain more competitive pricing and choice than individual purchasers might be able to obtain on their own, while eliminating the expensive costs of public bidding procedures, and

at the same time, providing increased opportunities for hundreds of businesses of all sizes in all locations, to compete for millions of dollars

of government business.

COSTARS is the Commonwealth’s cooperative purchasing program.

A local public procurement unit (LPPU) is defined as:

• Any political subdivision

• Any tax exempt, nonprofit education or public health institution or organization

• Any public authority

LPPUs must register on the COSTARS website to become members.

Once registered, members are able to purchase from available COSTARS or Statewide contracts.

The Department reserves the right to review on a case by case basis.

• And to the extent provided by law, any other entity, including council of government or an area government, that expends public funds for the procurement of supplies and services

• Any nonprofit fire company, nonprofit rescue company, nonprofit ambulance company

MEMBER HISTORY

2005 Membership 2,996

2009 Membership

6,587

Today Over 8,100

A COSTARS member may “piggy-back” off of state

agency contracts

OR

Use a COSTARS Exclusive contract.

Since these contracts have been previously bid by the state’s Bureau of Procurement, no additional formal bidding process is required.

A State agency contract that has reduced the supplier base by more than 50% requires the development of a COSTARS Contract Contracts that are created exclusively for the use by the LPPUs, based upon perceived need. COSTARS Contracts are awarded to all “responsive and responsible” bidders. Suppliers may bid “ancillary services” such as maintenance, training, and other unknowns related to the specified product.

COSTARS Contracts

COSTARS – The cooperative purchasing program COSTARS MEMBER - A registered Local Public Procurement Unit – The buyer. COSTARS-EXCLUSIVE CONTRACT – A generic multiple vendor contract awarded to all responsive and responsible suppliers. STATEWIDE CONTRACT – A contract awarded by the state government, authorizing the vendor to sell certain specified goods and/or services to agencies of the state government. COSTARS-AUTHORIZED SUPPLIER- A named holder of a COSTARS-exclusive contract. COSTARS-PARTICIPATING SUPPLIER - A named holder of a statewide contract that has voluntarily chosen to sell to COSTARS members under the same terms & conditions it sells to the state and pays the annual administrative fee.

1 Copiers 3 IT Hardware 4 Office Supplies

5 Janitorial Supplies

6 Software 7 Foods 8 Maintenance, Repair & Operation Equip & Supplies) 9 Graphic & Printing Services 10 Voting Systems 11 Toiletries 12 Emergency Responder Loose

Supplies 13 Emergency Responder

Vehicles 14 Recreational & Fitness

Equipment 15 Water & Waste Water

Treatment Consumables 16 Water & Waste-Water

Treatment Plant-Components/Equipment

17 Waste, Recycling & Materials Handling Containers

18 LED Traffic Signals 19 Laboratory Supplies 20 Medical Supplies 21 Pest Control Services 22 Weatherization Supplies 24 Traffic Signs 25 Municipal Work Vehicles 26 Passenger Vehicles 28 Energy Conservation Supplies 29 Grounds Keeping (Grounds/Turf

Maintenance) 30 Energy Consulting Services 32 Signage 33 Streetscapes 34 Theater (Auditorium) Furniture,

Fixtures and Equipment 35 Furniture & Window Treatments 36 Appliances, Cafeteria Supplies &

Equipment 37 Uniforms

COSTARS Contracts

BROAD SCOPE OF CONTRACTS

0

500

1000

1500

2007 2008 Today

Suppliers

Suppliers

2007 483 Suppliers

2008 600 Suppliers

Today Over 1,200

Suppliers History

PLUS 200 State Agency Contracts

available to COSTARS members, for products such as:

Power Equipment Audio Visual Services & Equipment Fuel Spring Water Temporary Clerical Services Carpet Universal Fleet Card Small Package Delivery Aggregates Drafting & Engineering Supplies Bituminous Materials Equipment Maintenance Roadsalt Medical Services Professional Training Services

VS contracts

COSTARS contracts have multiple choice of suppliers STATE contracts often offer one or a few suppliers COSTARS contracts offer competitive pricing STATE contracts are competitively priced through supplier bidding (low bid typically or best value)

contracts

STATE

COSTARS

NEW CONTRACT PROPOSALS

Several members write to us

Associations write to us

Legislators write to us

Periodic Surveys for YOUR input

Member Benefits

Dollar Savings – Volume Purchasing results in lower prices. As a member, you eliminate the need, cost and time for the bid process. You can negotiate with suppliers. Membership is free!

Convenience – Using COSTARS you can simply issue a purchase order to the COSTARS supplier or State Contract Supplier of record.

Flexibility and Variety – Broad selection of commodities and suppliers. More than 200 state contracts with a pool of over 2,000 suppliers.

Free Training, workshops, a toll-free phone assistance, and a quarterly newsletter are provided by the COSTARS staff.

• Access to large Pennsylvania customer base

• Market area selection • Customize products and services • Necessity and cost of local bidding

process is eliminated • Negotiate to “get the sale”

• Sell quality, not just price

• Reliable payment • Increased sales and profit • Access to marketing training and

toll-free customer assistance • Easy to use

Member & Supplier Benefit

COSTARS contracts allow COSTARS members to choose

suppliers based on whatever criteria they think is

important; e.g. price, geography, quality, etc.

Register as a Vendor on The PA Supplier Portal: Have Ready your:

Employer ID#

Functioning email address Security Number (SSN) for your business

Legal name of company (must match IRS info)

Business Type (Corporation, LLC, etc)

Physical address with phone number and zip+4 code

Contact person

County of business location

For assistance: 1-877-435-7363, Option 1

• Register as a vendor at www.pasupplierportal.state.pa.us, receive your 6-digit vendor number, and self-certify as a small business (if applicable)

• Subscribe to DGS eAlerts for bidding opportunities • Respond to COSTARS bidding opportunities

• Read & Understand Terms & Conditions

• Submit a responsible and responsive bid • Complete Bid Item Workbook

• Pay annual administrative fee when awarded the contract

– The only fees connected with the COSTARS Program are charged to

contract suppliers to offset administrative costs to administer the Program.

• Flat annual fee of $1500 per Contract ($500 for small businesses – less than 100 full-time employees AND Gross Annual Revenue less than $20 million.)

• Includes a nonexclusive license to use the COSTARS Brand (Name and Logo), as permitted under Contract provisions

$934 Million in FY2013!

0

100000

200000

300000

400000

500000

600000

700000

2006 2007 2008 2010 2011 2012

COSTARS SALES GROWTH

COSTARS SALES GROWTH

LOCAL STATS

P U R C H A S E S CHANGE % USING COSTAR STATE TOTAL CAMBRIA (168) $5,644,877 $3,202,505 $8,847,382 +78.5% 56.4% SOMERSET (94) $3,139,347 $1,735,992 $4,875,339 +79% 58.8%

SCHOOLS 28%

MUNIC 26%

COLLEGE 17%

COUNTY 9%

OTHER 3%

EMS 2%

% HEALTH 7%

AUTHORITIES 8%

FY2013 TOTAL COSTARS SPEND BY LPPU CATEGORY

SAVINGS TO COSTARS

MEMBERS

FY2013 OVERVIEW o TRANSACTIONAL SAVINGS

COSTARS CONTRACTS $39,590,237

STATE AGENCY CONTRACTS $10,064,470

o TOTAL $49,654,707

o COMMODITY SAVINGS

COSTARS CONTRACTS $74,730,444

STATE AGENCY CONTRACTS $77,286,700

o TOTAL $152,017,144

o TOTAL $201,671,851

FY 2013 TOTAL SPEND $934,689,885

COSTARS Enhanced Website

MEMBERS Member Registration is free and completed

online Your COSTARS Member listing will alert

awarded suppliers that you are an approved participant in the program

You can easily update member profile, such as changing or adding contacts, address and other member information

Complete Annual Salt Participation Contract online.

SUPPLIERS Access to current list of members,

including contact information to do direct marketing and to confirm membership.

Access to your contract’s terms and conditions, as well as your competitors.

Access to your Supplier’s contract exactly as it appears to members to review.

Review and update your company’s profile, such as contact person, address, and other information.

Electronically assemble and report your quarterly sales.

Download COSTARS Logo for use on Marketing materials.

Online payment of your administrative fee.

MEMBERS & SUPPLIERS You can access both COSTARS and State Contracts Read Newsflashes that will provide you important program information Providing an email address will enable you to receive information promptly Quarterly Newsletters Access to the Resource/Training Center

WEBSITE CHANGES New COSTARS Home Page

www.costars.state.pa.us

To access Members’ Page To access Suppliers’ Page

WEBSITE CHANGES www.costars.state.pa.us

Or, Members can select the COSTARS (Cooperative Purchasing) link at the top of the page under the Local Government and Schools link, then select Member Information. You can also click on Program Resources.

WEBSITE CHANGES www.costars.state.pa.us

Or, Suppliers can select the BUSINESSES link at the top of the page, then select MATERIALS & PROCUREMENT link, and then select COSTARS SUPPLIER INFORMATION. You can also click on Program Resources. For information on Small Business Certification, click on MINORITY, WOMEN, & VETERANS BUSINESSES or SMALL BUSINESS CONTRACTING PROGRAM.

COSTARS Contract Search, Statewide Contract Search and Statewide ITQ Search: Hover over this link to search for available contracts managed by DGS

How to view

Contracts

Members’ Area

Use Drop Down Arrows to select

COSTARS Contract Overview

Vendor Contract

Vendor Contract – Ten Questions

Vendor Contract – Service Area

Vendor Contract – Product Categories and Brands

Vendor Contract – Supplier Ancillary Services

Vendor Contract – Supplier Prices

Pricing Format: Percent, Discount, Cost Plus or Custom

Customized Price List may be attached

COMPLETE BID

DOCUMENTS

• Complete CORPORATE

CERTIFICATION

• CHECK THAT ALL DOCUMENTS ARE

COMPLETED, SIGNED, AND

NOTORIZED WHERE REQUIRED.

• MAIL OR DELIVER BY DUE DATE

• ALLOW 4-6 WEEKS FOR PROCESSING

SUPPLIER RESPONSIBILITIES

• A contractor agrees to comply with all terms and conditions of their contract and sell items or services listed in their contract to DGS-registered COSTARS members.

• Quarterly reporting of sales to COSTARS members.

• Payment of annual administrative fee.

NOTE

Since there is no requirement for COSTARS members to

purchase from any particular awarded supplier, DGS does not

guarantee volume of COSTARS contract sales. It is the sole

responsibility of the awarded supplier to promote their offered

products to registered COSTARS members.

– However, in FY2013, the average COSTARS supplier

reported more than $420,000 in COSTARS sales!

Use your Keystone Login (Same as you use for Salt)

How to Purchase

Using

COSTARS

Example: Passenger Van

Follow the steps to Search COSTARS Contracts. Is your product available?

YES!!!

COSTARS – 26 Passenger Vehicles

Choose your search parameters

Click to view Vendor Contract, Info and Pricing

If there are many vendors in your search results, choose a few vendors based on:

Familiarity with the Company

Geography

Other criteria

Check out each Company’s

pricing and details.

Call the Suppliers (at least 3 or four if possible), introduce yourself as a COSTARS member. Tell them you are calling several Suppliers to compare prices, and tell them what you need. Ask for the best price!

Check if there is an applicable State Contract.

Follow the steps to search a Statewide Contract. Search by description Passenger.

View overview, article index sheet and supplier info

Compare with COSTARS quotes. Make sure you are comparing like vehicles.

Call your finalists.

NEGOTIATE!

Finalize the deal.

Prepare your

Purchase Order.

SUPPLIER

QUESTIONS???

Negotiating With Suppliers

Suppliers are prepared to negotiate, particularly on COSTARS Contracts.

Obtain AT LEAST 3 or 4 prices, if possible.

Announce up front that you are getting prices from several suppliers.

Return to your “preferred” supplier and provide opportunity to beat lowest price.

Remember your Objective: Getting the best value for your Taxpayers!!

DO’S & DON’TS OF THE ROAD SALT CONTRACT # 6810-02 (Sodium Chloride)

Eligibility Requirements You must be registered with COSTARS to participate on the Salt Contract.

A completed Salt Participation Agreement is needed for inclusion on this contract. The Salt Participation Agreement can be accessed from the COSTARS website (the

orange bar on the Members page) between January 1 to March 15 of each year. A completed salt requirement form MUST BE RECEIVED BY March 15.

Notification The Salt Contract will be posted in August indicating who your supplier is and your pricing. The contract Can be printed out for your records by using the COSTARS website.

Ordering

Your township or organization will place all orders with the supplier (NOT DGS). Consider ordering your salt early. The earlier you order salt, the better your road

department will be able to respond to the winter road conditions. When ordering salt, try to think ahead of your overall needs. Although pricing will remain constant (no more monthly fuel adjustments), availability of shipments may be affected by weather conditions and/or needs of other customers of your supplier.

IF YOU CLICK ON THE ROAD SALT BAR

User Registration and COSTARS Membership: New users must first complete the User Registration to create a personal login to the COSTARS system. Once the user has completed the user registration they can create a new member organization or be added to an existing member organization. Only users who are authorized to edit the member profile and/or complete the salt participation agreement are required to create a User Registration.

Common Error Messages

Your email is already in use Go to Forgot Password

Due to technical reasons you cannot use this email address Use a different email

Password is invalid Check that all requirements are met

NEW OR EDIT COSTARS MEMBERSHIP

State Aggregates Contract

There are two methods members can use to purchase from the State Aggregates Contract: 1. Mini-bid Process

• If you require the supplier to deliver your order, you must use the Mini-bid Process

• If you prefer to pick up your order, you may use the Mini-bid Process or Source Pick-up Pricing

2. Source Pick-up Pricing

• Identify the supplier who sells the material you require and purchase directly from that supplier

Mini-bid Process • You MUST send a Request for Quote to ALL qualified suppliers • Do not send a Request for Quote to, or accept a quote from any supplier

who has not indicated they will allow Piggyback Purchases • Do not send a Request for Quote to, or accept a quote from any supplier

not listed in the Aggregates and Anti-skid Materials Contract Number 5610-15 • Doing so is a violation of the contract and can result in an Audit

Finding against your municipality • Ultimately, you MUST choose the low-bid supplier or reject all bids.

Source Pick-up Pricing • Choose a vendor, aggregate and price for the material you require from e-

Marketplace • Contact the supplier using the information in the Vendor Information tab in the

Overview at the bottom of the spreadsheet • Identify yourself as a COSTARS member and that you would like to use the Source

Pick-up Pricing • If you are picking up the material yourself, you may account for your transportation

cost to determine the lowest quote (e.g. if supplier A quotes $10 per ton and is 25 miles away, and supplier B quotes $10.25 per ton and is one mile away, you may choose supplier B based upon the better value)

• Place your order. Always reference the Supplier’s contract # on your P.O.

Search Aggregates

Other Uses Of The COSTARS Program

PRICE BENCHMARKING Even if you purchase through another source, use the COSTARS

or State Agency Contract to ensure competitive price.

BUDGETING

While preparing your budget, use the COSTARS or

State Agency Contract to estimate your commodity purchasing costs.

GRANT WRITING

While preparing your grant, use the COSTARS or State Agency

Contract to estimate your costs.

Audit – Ready Suggestion

Print COSTARS Supplier Contract

Include name of Supplier

Include the Price/Discount

Attach these items to your copy of your Purchase Order

By Phone • Live technical support from COSTARS

staff

• (866) 768-STAR (7827)

Online • www.costars.state.pa.us

• Self-service Portal for research and customer service needs

• E-mail: gs-pacostars@state.pa.us

In Person • Training and Education

• Town Hall Meetings and Workshops

COSTARS Contact Information

Bruce Beardsley, Marketing Manager 717-214-3432

Kim Bullivant, Marketing Manager

717-346-2678

Claire Osborne, Marketing Manager 717-346-3838

Dawn Eshenour, Program Manager

Reduces Administrative Costs of Bidding and Contract Award Provides flexibility in choosing a supplier Multiple commodity choices to meet members’ needs. Allows for product customization Competitive Pricing plus negotiation saves Taxpayer funds Provides opportunities for local businesses to “get a piece of the pie”

“….The COSTARS Program is….a great example of how our

government can partner with the private sector to produce taxpayer

savings!”