36
APRIL/MAY 2012 www.govpro.com The International Green Construction Code Research to Boost Fleet Fuel Efficiency Social Media Impacts Procurement The Benefits of Spend Analysis Keeping the Lights On Alternative construction delivery methods help when cost and speed are critical* A PENTON MEDIA publication The official publication of NIGP: The Institute for Public Procurement THE GROWTH OF DESIGN-BUILD PLUS: *Such as when the Minnesota Department of Transportation needed to rebuild the I-35 bridge.

GovPro - April/May 2012

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The official publication of NIGP.

Citation preview

Page 1: GovPro - April/May 2012

APRILMAY 2012wwwgovprocom

The International Green Construction

Code

Research to Boost Fleet Fuel

Efficiency

Social Media Impacts Procurement

The Benefits of Spend Analysis

Keeping the Lights On

Alternative construction delivery methods help when cost and speed are critical

A PENTON MEDIA publication

The official publication of NIGP The Institute for Public Procurement

THE GROWTH OF DESIGN-BUILD

PLUSSuch as when the Minnesota Department of Transportation needed to rebuild the I-35 bridge

13131313131313 $

$

amp $

$

131313

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 httpwwwgovprocom

Subscriptions for others are available subject to publisherrsquos

acceptance at these rates US and US possessions $351

year $452 years $7single copy Canada $401 year $602

years $8single copy international $451 year $702 years

$10single 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 governmentprocurementhalldatacom or

visit httpwwwsubmagcom subgp 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 httpwwwmeritdirectcommarket

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 $125 per copy

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

Rosewood Dr Danvers MA 01923 (Code No 1078-076907

$125 + 60)

REPRINTS For customized article reprints contact

Wrightrsquos Media phone 877-652-5295

email pentonwrightsmediacom

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 Copyrightcopy 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

CONTENTSAPRILMAY 2012

VOLUME 20 NO 2

IN DEPTH

20 Construction THE GROWTH (AND GROWING PAINS)OF DESIGN-BUILD CONSTRUCTION Design-build is not only more effi cient in time it can also save money Choosing the right construction delivery strategy takes acumen and the discerning experience of a professional contractingprocurement offi cer

BY EDWARD J PABOR AND RICHARD PENNINGTON

24 Green PurchasingASSESSING THE INTERNATIONALGREEN CONSTRUCTION CODEThe code that was just released is designed to complement not replace existing green building tools Will it move green building forward

BY MARK ROSSOLO

28 Fleet UpdateBOOSTING FUEL EFFICIENCY

Trucks and cars will use less fuel very soon thanks in part to a government-industry research program

BY SEAN KILCARR

PERSPECTIVES

2 Guest Column In defense

of factory visits

4 Procurement Ponderable

Dilemma surrounds smugglers

and Homeland Security

HOT TOPICS

7 Fair Competition

Guarding against the

impact of social media

10 Emergency Preparedness

Oregonrsquos disaster toolkit

put to the test

12 Best Practices NIGP and

CIPS release Ten Global Public

Procurement Practices

14 Best Practices Whatrsquos all the

buzz about spend analysis

16 Energy Planning Keeping the

lights on in an emergency

RESOURCES

30 NIGP Recognizing milestone

agency anniversaries

31 Calendar of Events

Upcoming courses listed

BACK PAGES

31 Ad Index

32 Fred Marks On facts

lies and negotiations

2 | APRILMAY 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

httpwwwgovprocom

EDITORIAL STAFF

Bill Wolpin Editorial Director billwolpinpentoncom

Larry Anderson Editor landerson1976aimcom

Lindsay Isaacs Managing Editor lindsayisaacspentoncom

Kim Blaski Production Manager kimblaskipentoncom

Joan RoofAudience Marketing Manager joanroofpentoncom

Wes Clark Art Director wesleyclarkpentoncom

THE INSTITUTEfor PUBLIC PROCUREMENT

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

Brent Maas Marketing Director bmaasnigporg

Cathie Patin Communications Editor cpatinnigporg

EDITORIAL ADVISORY BOARD

Debbie Field CPPO VCO Virginia Department of General Services

Yolanda C Jones CPM APP Clark County Nev

Jay T McCleary CPPB City of Red Wing Minn

In Defense of Factory Visits

iscal budgets are being stretched and purchasing decisions are

being weighed and watched more closely than ever particularly

when municipal state or federal tax dollars are involved But there is a

common policy that is getting in the way of government officialsrsquo ability

to make the most informed decisions prohibitions on factory visits

Itrsquos not hard to understand the underlying fear that produces the

policy The playbook of some vendors is filled with expensive dinners

elaborate trips andor high-end gifts that are solely intended to bring

or keep business But are those bad apples really a prudent justification

for preventing all decision-makers from doing their due diligence

Either we trust our decision-makers or we donrsquot in which case we

have the wrong people in those positions Consider also that if we donrsquot

trust our decision-makers then wersquore inherently placing more trust in the

vendors because we now have to take their word at face value relying on

information from their website literature or other marketing material

Although cities can require sample products to be shipped to them for

reviewtestingcomparison a factory visit can often raise questions about

production methods or materials that officials would not be aware of

otherwise and which could ultimately affect a purchasing decision

To address the concern of any impropriety rather than issuing a

moratorium on visits of this sort many cities have adopted practices that

allow their staff to perform due diligence while reducing temptations

Common practices include not allowing a vendor to pay for meals or

hotel accommodations Vendors can cover airfare tofrom their facilities

but they may not put anybody up in a ritzy hotel or provide expensive

dinners Meals are covered by a reasonable per diem There are often

limits on any gift that an official can accept usually around $15 to $20

While itrsquos difficult to police this policy the municipal officials are keenly

aware that they may be risking their jobs to accept more expensive gifts

Some cities use the buddy system and send two people rather

than one on factory visits Itrsquos harder to do something questionable

when therersquos another person from the city on the trip especially

if itrsquos not a close friend from the same department

Another benefit derived from factory visits is the continuing

education and training that many vendors offer such as educational

seminars at the factor The seminars are not commercials

but rather an update on the latest technology materials or

production methods relative to the governmentrsquos project

Factory visits are not automatic traps for ethical violations and they are

not a waste of time or money Either we trust our officials to make good

decisions and behave properly or we donrsquot Itrsquos really that simple

PAUL MITCHELL is responsible for sales and nationwide education

for Sternberg Lighting Roselle Ill He has written several articles related

to lighting and municipal RFPs Email him at pmitchellsatxrrcom

F

Over 900000 products for the ones who get it doneCall Click Stop Byreg wwwgraingercom

4 | APRILMAY 2012

Government Procurement welcomes your feedback

Send letters to publicationsnigporg 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 greggherringpentoncom

Susie Barroso Group Marketing Director susiebarrosopentoncom

Joanne Romanek Online Advertising Specialist joanneromanekpentoncom

ADVERTISING SALES

Dave Gibson Northeast Region Sales davegibsonpentoncom 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 billperrypentoncom Phone 770-618-0453 ILWI PA MN WV AK TN MS AL FL

Ron Corey Midwest Region Sales ronaldcoreypentoncom Phone 248-608-0994 MI MO IA KY IN ND SD AR LA TX OK

Julie Fincher Western Region Sales juliefincherpentoncom 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 davidkieselsteinpentoncom

Nicola Allais Chief Financial Officer Executive Vice President nicolaallaispentoncom

Bob MacArthur Senior Vice President bobmacarthurpentoncom

Reader feedback

gt A VIEW FROM THE SALARY FRONT LINEI read ldquoHowrsquos Your Payrdquo [FebruaryMarch 2012] with much interest I have

been the Warehouse Manager for the largest ldquostoresrdquo operation for the

City of Philadelphia for 16 years and my base salary is only $43000 a year

For the City of Philadelphia regardless of how large or small a department

is regardless of the value of the inventory regardless of the amount of work

we all make the same (with the exception of the automotive personnel

which is one pay grade higher because they have been declared a specialty

for some reason or another) I can make the same salary operating this huge

operation as I can handing out pencils and paper from a broom closet

I would have loved to have been part of this survey

mdash Bob Deck Manager Philadelphia Fire Department Whse

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 ndash and we hope that you do ndash wersquoll publish

your comments in an upcoming issue of Government Procurement

You are a senior civilian contracting officer who reports to the chief of information

technology (IT) procurement for the US Department of Homeland Security

(DHS) The IT procurement chief has asked you to represent him in a meeting

of high-level functional specialists within DHS who have been called together by

the Deputy Secretary of DHS to discuss a very serious strategic problem

Smugglers have demonstrated on more than one occasion that they can stop Coast

Guard ships and other watercraft ldquodead in the waterrdquo by taking control of the vesselsrsquo

onboard operating systems including those systems not directly connected to the Internet

After consulting with everyone in the room except you to elicit their thoughts on what

can be done practicably to resolve the problem the Deputy Secretary turns to you and

says ldquoWell Mr Senior Contracting Officer I havenrsquot heard one practicable solution yet

Can I count on you to help preserve the Coast Guardrsquos ability to execute its missionrdquo

How do you respond to the Deputy Secretary Remember shersquos looking for

solutions that are practicable ndash that is practical and possible ndash no ldquoboil the oceanrdquo

solutions will be entertained Even if she likes your high-level explanation

of your solution(s) you know she is going to press for details

EDITORrsquoS NOTE Additional details on how the survey was

conducted and complete survey results are available at nigporg

Reported salary numbers did not include benefits or pensions

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

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8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

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sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

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gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

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gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

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)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

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Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

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savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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Page 2: GovPro - April/May 2012

13131313131313 $

$

amp $

$

131313

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 httpwwwgovprocom

Subscriptions for others are available subject to publisherrsquos

acceptance at these rates US and US possessions $351

year $452 years $7single copy Canada $401 year $602

years $8single copy international $451 year $702 years

$10single 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

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LIST RENTALS To rent circulation lists of Government

Procurement contact Merit Direct 333 Westchester Ave White

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COPYING Permission is granted to users registered with the

Copyright Clearance Center Inc (CCC) to photocopy any article

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on the first page of the article) for a base fee of $125 per copy

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

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$125 + 60)

REPRINTS For customized article reprints contact

Wrightrsquos Media phone 877-652-5295

email pentonwrightsmediacom

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 Copyrightcopy 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

CONTENTSAPRILMAY 2012

VOLUME 20 NO 2

IN DEPTH

20 Construction THE GROWTH (AND GROWING PAINS)OF DESIGN-BUILD CONSTRUCTION Design-build is not only more effi cient in time it can also save money Choosing the right construction delivery strategy takes acumen and the discerning experience of a professional contractingprocurement offi cer

BY EDWARD J PABOR AND RICHARD PENNINGTON

24 Green PurchasingASSESSING THE INTERNATIONALGREEN CONSTRUCTION CODEThe code that was just released is designed to complement not replace existing green building tools Will it move green building forward

BY MARK ROSSOLO

28 Fleet UpdateBOOSTING FUEL EFFICIENCY

Trucks and cars will use less fuel very soon thanks in part to a government-industry research program

BY SEAN KILCARR

PERSPECTIVES

2 Guest Column In defense

of factory visits

4 Procurement Ponderable

Dilemma surrounds smugglers

and Homeland Security

HOT TOPICS

7 Fair Competition

Guarding against the

impact of social media

10 Emergency Preparedness

Oregonrsquos disaster toolkit

put to the test

12 Best Practices NIGP and

CIPS release Ten Global Public

Procurement Practices

14 Best Practices Whatrsquos all the

buzz about spend analysis

16 Energy Planning Keeping the

lights on in an emergency

RESOURCES

30 NIGP Recognizing milestone

agency anniversaries

31 Calendar of Events

Upcoming courses listed

BACK PAGES

31 Ad Index

32 Fred Marks On facts

lies and negotiations

2 | APRILMAY 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

httpwwwgovprocom

EDITORIAL STAFF

Bill Wolpin Editorial Director billwolpinpentoncom

Larry Anderson Editor landerson1976aimcom

Lindsay Isaacs Managing Editor lindsayisaacspentoncom

Kim Blaski Production Manager kimblaskipentoncom

Joan RoofAudience Marketing Manager joanroofpentoncom

Wes Clark Art Director wesleyclarkpentoncom

THE INSTITUTEfor PUBLIC PROCUREMENT

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

Brent Maas Marketing Director bmaasnigporg

Cathie Patin Communications Editor cpatinnigporg

EDITORIAL ADVISORY BOARD

Debbie Field CPPO VCO Virginia Department of General Services

Yolanda C Jones CPM APP Clark County Nev

Jay T McCleary CPPB City of Red Wing Minn

In Defense of Factory Visits

iscal budgets are being stretched and purchasing decisions are

being weighed and watched more closely than ever particularly

when municipal state or federal tax dollars are involved But there is a

common policy that is getting in the way of government officialsrsquo ability

to make the most informed decisions prohibitions on factory visits

Itrsquos not hard to understand the underlying fear that produces the

policy The playbook of some vendors is filled with expensive dinners

elaborate trips andor high-end gifts that are solely intended to bring

or keep business But are those bad apples really a prudent justification

for preventing all decision-makers from doing their due diligence

Either we trust our decision-makers or we donrsquot in which case we

have the wrong people in those positions Consider also that if we donrsquot

trust our decision-makers then wersquore inherently placing more trust in the

vendors because we now have to take their word at face value relying on

information from their website literature or other marketing material

Although cities can require sample products to be shipped to them for

reviewtestingcomparison a factory visit can often raise questions about

production methods or materials that officials would not be aware of

otherwise and which could ultimately affect a purchasing decision

To address the concern of any impropriety rather than issuing a

moratorium on visits of this sort many cities have adopted practices that

allow their staff to perform due diligence while reducing temptations

Common practices include not allowing a vendor to pay for meals or

hotel accommodations Vendors can cover airfare tofrom their facilities

but they may not put anybody up in a ritzy hotel or provide expensive

dinners Meals are covered by a reasonable per diem There are often

limits on any gift that an official can accept usually around $15 to $20

While itrsquos difficult to police this policy the municipal officials are keenly

aware that they may be risking their jobs to accept more expensive gifts

Some cities use the buddy system and send two people rather

than one on factory visits Itrsquos harder to do something questionable

when therersquos another person from the city on the trip especially

if itrsquos not a close friend from the same department

Another benefit derived from factory visits is the continuing

education and training that many vendors offer such as educational

seminars at the factor The seminars are not commercials

but rather an update on the latest technology materials or

production methods relative to the governmentrsquos project

Factory visits are not automatic traps for ethical violations and they are

not a waste of time or money Either we trust our officials to make good

decisions and behave properly or we donrsquot Itrsquos really that simple

PAUL MITCHELL is responsible for sales and nationwide education

for Sternberg Lighting Roselle Ill He has written several articles related

to lighting and municipal RFPs Email him at pmitchellsatxrrcom

F

Over 900000 products for the ones who get it doneCall Click Stop Byreg wwwgraingercom

4 | APRILMAY 2012

Government Procurement welcomes your feedback

Send letters to publicationsnigporg 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 greggherringpentoncom

Susie Barroso Group Marketing Director susiebarrosopentoncom

Joanne Romanek Online Advertising Specialist joanneromanekpentoncom

ADVERTISING SALES

Dave Gibson Northeast Region Sales davegibsonpentoncom 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 billperrypentoncom Phone 770-618-0453 ILWI PA MN WV AK TN MS AL FL

Ron Corey Midwest Region Sales ronaldcoreypentoncom Phone 248-608-0994 MI MO IA KY IN ND SD AR LA TX OK

Julie Fincher Western Region Sales juliefincherpentoncom 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 davidkieselsteinpentoncom

Nicola Allais Chief Financial Officer Executive Vice President nicolaallaispentoncom

Bob MacArthur Senior Vice President bobmacarthurpentoncom

Reader feedback

gt A VIEW FROM THE SALARY FRONT LINEI read ldquoHowrsquos Your Payrdquo [FebruaryMarch 2012] with much interest I have

been the Warehouse Manager for the largest ldquostoresrdquo operation for the

City of Philadelphia for 16 years and my base salary is only $43000 a year

For the City of Philadelphia regardless of how large or small a department

is regardless of the value of the inventory regardless of the amount of work

we all make the same (with the exception of the automotive personnel

which is one pay grade higher because they have been declared a specialty

for some reason or another) I can make the same salary operating this huge

operation as I can handing out pencils and paper from a broom closet

I would have loved to have been part of this survey

mdash Bob Deck Manager Philadelphia Fire Department Whse

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 ndash and we hope that you do ndash wersquoll publish

your comments in an upcoming issue of Government Procurement

You are a senior civilian contracting officer who reports to the chief of information

technology (IT) procurement for the US Department of Homeland Security

(DHS) The IT procurement chief has asked you to represent him in a meeting

of high-level functional specialists within DHS who have been called together by

the Deputy Secretary of DHS to discuss a very serious strategic problem

Smugglers have demonstrated on more than one occasion that they can stop Coast

Guard ships and other watercraft ldquodead in the waterrdquo by taking control of the vesselsrsquo

onboard operating systems including those systems not directly connected to the Internet

After consulting with everyone in the room except you to elicit their thoughts on what

can be done practicably to resolve the problem the Deputy Secretary turns to you and

says ldquoWell Mr Senior Contracting Officer I havenrsquot heard one practicable solution yet

Can I count on you to help preserve the Coast Guardrsquos ability to execute its missionrdquo

How do you respond to the Deputy Secretary Remember shersquos looking for

solutions that are practicable ndash that is practical and possible ndash no ldquoboil the oceanrdquo

solutions will be entertained Even if she likes your high-level explanation

of your solution(s) you know she is going to press for details

EDITORrsquoS NOTE Additional details on how the survey was

conducted and complete survey results are available at nigporg

Reported salary numbers did not include benefits or pensions

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

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8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

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of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

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Saving energy shouldnrsquot

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ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName 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Page 3: GovPro - April/May 2012

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

purchasing professionals Those qualified may apply by

calling 847-763-9670 or visiting httpwwwgovprocom

Subscriptions for others are available subject to publisherrsquos

acceptance at these rates US and US possessions $351

year $452 years $7single copy Canada $401 year $602

years $8single copy international $451 year $702 years

$10single 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

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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 httpwwwmeritdirectcommarket

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 $125 per copy

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

Rosewood Dr Danvers MA 01923 (Code No 1078-076907

$125 + 60)

REPRINTS For customized article reprints contact

Wrightrsquos Media phone 877-652-5295

email pentonwrightsmediacom

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 Copyrightcopy 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

CONTENTSAPRILMAY 2012

VOLUME 20 NO 2

IN DEPTH

20 Construction THE GROWTH (AND GROWING PAINS)OF DESIGN-BUILD CONSTRUCTION Design-build is not only more effi cient in time it can also save money Choosing the right construction delivery strategy takes acumen and the discerning experience of a professional contractingprocurement offi cer

BY EDWARD J PABOR AND RICHARD PENNINGTON

24 Green PurchasingASSESSING THE INTERNATIONALGREEN CONSTRUCTION CODEThe code that was just released is designed to complement not replace existing green building tools Will it move green building forward

BY MARK ROSSOLO

28 Fleet UpdateBOOSTING FUEL EFFICIENCY

Trucks and cars will use less fuel very soon thanks in part to a government-industry research program

BY SEAN KILCARR

PERSPECTIVES

2 Guest Column In defense

of factory visits

4 Procurement Ponderable

Dilemma surrounds smugglers

and Homeland Security

HOT TOPICS

7 Fair Competition

Guarding against the

impact of social media

10 Emergency Preparedness

Oregonrsquos disaster toolkit

put to the test

12 Best Practices NIGP and

CIPS release Ten Global Public

Procurement Practices

14 Best Practices Whatrsquos all the

buzz about spend analysis

16 Energy Planning Keeping the

lights on in an emergency

RESOURCES

30 NIGP Recognizing milestone

agency anniversaries

31 Calendar of Events

Upcoming courses listed

BACK PAGES

31 Ad Index

32 Fred Marks On facts

lies and negotiations

2 | APRILMAY 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

httpwwwgovprocom

EDITORIAL STAFF

Bill Wolpin Editorial Director billwolpinpentoncom

Larry Anderson Editor landerson1976aimcom

Lindsay Isaacs Managing Editor lindsayisaacspentoncom

Kim Blaski Production Manager kimblaskipentoncom

Joan RoofAudience Marketing Manager joanroofpentoncom

Wes Clark Art Director wesleyclarkpentoncom

THE INSTITUTEfor PUBLIC PROCUREMENT

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

Brent Maas Marketing Director bmaasnigporg

Cathie Patin Communications Editor cpatinnigporg

EDITORIAL ADVISORY BOARD

Debbie Field CPPO VCO Virginia Department of General Services

Yolanda C Jones CPM APP Clark County Nev

Jay T McCleary CPPB City of Red Wing Minn

In Defense of Factory Visits

iscal budgets are being stretched and purchasing decisions are

being weighed and watched more closely than ever particularly

when municipal state or federal tax dollars are involved But there is a

common policy that is getting in the way of government officialsrsquo ability

to make the most informed decisions prohibitions on factory visits

Itrsquos not hard to understand the underlying fear that produces the

policy The playbook of some vendors is filled with expensive dinners

elaborate trips andor high-end gifts that are solely intended to bring

or keep business But are those bad apples really a prudent justification

for preventing all decision-makers from doing their due diligence

Either we trust our decision-makers or we donrsquot in which case we

have the wrong people in those positions Consider also that if we donrsquot

trust our decision-makers then wersquore inherently placing more trust in the

vendors because we now have to take their word at face value relying on

information from their website literature or other marketing material

Although cities can require sample products to be shipped to them for

reviewtestingcomparison a factory visit can often raise questions about

production methods or materials that officials would not be aware of

otherwise and which could ultimately affect a purchasing decision

To address the concern of any impropriety rather than issuing a

moratorium on visits of this sort many cities have adopted practices that

allow their staff to perform due diligence while reducing temptations

Common practices include not allowing a vendor to pay for meals or

hotel accommodations Vendors can cover airfare tofrom their facilities

but they may not put anybody up in a ritzy hotel or provide expensive

dinners Meals are covered by a reasonable per diem There are often

limits on any gift that an official can accept usually around $15 to $20

While itrsquos difficult to police this policy the municipal officials are keenly

aware that they may be risking their jobs to accept more expensive gifts

Some cities use the buddy system and send two people rather

than one on factory visits Itrsquos harder to do something questionable

when therersquos another person from the city on the trip especially

if itrsquos not a close friend from the same department

Another benefit derived from factory visits is the continuing

education and training that many vendors offer such as educational

seminars at the factor The seminars are not commercials

but rather an update on the latest technology materials or

production methods relative to the governmentrsquos project

Factory visits are not automatic traps for ethical violations and they are

not a waste of time or money Either we trust our officials to make good

decisions and behave properly or we donrsquot Itrsquos really that simple

PAUL MITCHELL is responsible for sales and nationwide education

for Sternberg Lighting Roselle Ill He has written several articles related

to lighting and municipal RFPs Email him at pmitchellsatxrrcom

F

Over 900000 products for the ones who get it doneCall Click Stop Byreg wwwgraingercom

4 | APRILMAY 2012

Government Procurement welcomes your feedback

Send letters to publicationsnigporg 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 greggherringpentoncom

Susie Barroso Group Marketing Director susiebarrosopentoncom

Joanne Romanek Online Advertising Specialist joanneromanekpentoncom

ADVERTISING SALES

Dave Gibson Northeast Region Sales davegibsonpentoncom 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 billperrypentoncom Phone 770-618-0453 ILWI PA MN WV AK TN MS AL FL

Ron Corey Midwest Region Sales ronaldcoreypentoncom Phone 248-608-0994 MI MO IA KY IN ND SD AR LA TX OK

Julie Fincher Western Region Sales juliefincherpentoncom 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 davidkieselsteinpentoncom

Nicola Allais Chief Financial Officer Executive Vice President nicolaallaispentoncom

Bob MacArthur Senior Vice President bobmacarthurpentoncom

Reader feedback

gt A VIEW FROM THE SALARY FRONT LINEI read ldquoHowrsquos Your Payrdquo [FebruaryMarch 2012] with much interest I have

been the Warehouse Manager for the largest ldquostoresrdquo operation for the

City of Philadelphia for 16 years and my base salary is only $43000 a year

For the City of Philadelphia regardless of how large or small a department

is regardless of the value of the inventory regardless of the amount of work

we all make the same (with the exception of the automotive personnel

which is one pay grade higher because they have been declared a specialty

for some reason or another) I can make the same salary operating this huge

operation as I can handing out pencils and paper from a broom closet

I would have loved to have been part of this survey

mdash Bob Deck Manager Philadelphia Fire Department Whse

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 ndash and we hope that you do ndash wersquoll publish

your comments in an upcoming issue of Government Procurement

You are a senior civilian contracting officer who reports to the chief of information

technology (IT) procurement for the US Department of Homeland Security

(DHS) The IT procurement chief has asked you to represent him in a meeting

of high-level functional specialists within DHS who have been called together by

the Deputy Secretary of DHS to discuss a very serious strategic problem

Smugglers have demonstrated on more than one occasion that they can stop Coast

Guard ships and other watercraft ldquodead in the waterrdquo by taking control of the vesselsrsquo

onboard operating systems including those systems not directly connected to the Internet

After consulting with everyone in the room except you to elicit their thoughts on what

can be done practicably to resolve the problem the Deputy Secretary turns to you and

says ldquoWell Mr Senior Contracting Officer I havenrsquot heard one practicable solution yet

Can I count on you to help preserve the Coast Guardrsquos ability to execute its missionrdquo

How do you respond to the Deputy Secretary Remember shersquos looking for

solutions that are practicable ndash that is practical and possible ndash no ldquoboil the oceanrdquo

solutions will be entertained Even if she likes your high-level explanation

of your solution(s) you know she is going to press for details

EDITORrsquoS NOTE Additional details on how the survey was

conducted and complete survey results are available at nigporg

Reported salary numbers did not include benefits or pensions

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

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8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

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of General Services

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of Transportation ndash

Central Office

Celebrating 50 Years

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Celebrating 35 Years

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Celebrating 30 Years

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Schools Colo

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of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

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of Natural Resources SC

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South Carolina

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at College Park Md

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Celebrating 25 Years

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of Parks Ky

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Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

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gt Summit County

BMRDD Ohio

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Community College Tenn

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Purchasing Wis

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Police Jury La

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Commissioners Fla

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of Public Works SC

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Management District Fla

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Department Mo

gt Spokane County Wash

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Board Fla

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Springfield Mo

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gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

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reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 4: GovPro - April/May 2012

2 | APRILMAY 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

httpwwwgovprocom

EDITORIAL STAFF

Bill Wolpin Editorial Director billwolpinpentoncom

Larry Anderson Editor landerson1976aimcom

Lindsay Isaacs Managing Editor lindsayisaacspentoncom

Kim Blaski Production Manager kimblaskipentoncom

Joan RoofAudience Marketing Manager joanroofpentoncom

Wes Clark Art Director wesleyclarkpentoncom

THE INSTITUTEfor PUBLIC PROCUREMENT

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

Brent Maas Marketing Director bmaasnigporg

Cathie Patin Communications Editor cpatinnigporg

EDITORIAL ADVISORY BOARD

Debbie Field CPPO VCO Virginia Department of General Services

Yolanda C Jones CPM APP Clark County Nev

Jay T McCleary CPPB City of Red Wing Minn

In Defense of Factory Visits

iscal budgets are being stretched and purchasing decisions are

being weighed and watched more closely than ever particularly

when municipal state or federal tax dollars are involved But there is a

common policy that is getting in the way of government officialsrsquo ability

to make the most informed decisions prohibitions on factory visits

Itrsquos not hard to understand the underlying fear that produces the

policy The playbook of some vendors is filled with expensive dinners

elaborate trips andor high-end gifts that are solely intended to bring

or keep business But are those bad apples really a prudent justification

for preventing all decision-makers from doing their due diligence

Either we trust our decision-makers or we donrsquot in which case we

have the wrong people in those positions Consider also that if we donrsquot

trust our decision-makers then wersquore inherently placing more trust in the

vendors because we now have to take their word at face value relying on

information from their website literature or other marketing material

Although cities can require sample products to be shipped to them for

reviewtestingcomparison a factory visit can often raise questions about

production methods or materials that officials would not be aware of

otherwise and which could ultimately affect a purchasing decision

To address the concern of any impropriety rather than issuing a

moratorium on visits of this sort many cities have adopted practices that

allow their staff to perform due diligence while reducing temptations

Common practices include not allowing a vendor to pay for meals or

hotel accommodations Vendors can cover airfare tofrom their facilities

but they may not put anybody up in a ritzy hotel or provide expensive

dinners Meals are covered by a reasonable per diem There are often

limits on any gift that an official can accept usually around $15 to $20

While itrsquos difficult to police this policy the municipal officials are keenly

aware that they may be risking their jobs to accept more expensive gifts

Some cities use the buddy system and send two people rather

than one on factory visits Itrsquos harder to do something questionable

when therersquos another person from the city on the trip especially

if itrsquos not a close friend from the same department

Another benefit derived from factory visits is the continuing

education and training that many vendors offer such as educational

seminars at the factor The seminars are not commercials

but rather an update on the latest technology materials or

production methods relative to the governmentrsquos project

Factory visits are not automatic traps for ethical violations and they are

not a waste of time or money Either we trust our officials to make good

decisions and behave properly or we donrsquot Itrsquos really that simple

PAUL MITCHELL is responsible for sales and nationwide education

for Sternberg Lighting Roselle Ill He has written several articles related

to lighting and municipal RFPs Email him at pmitchellsatxrrcom

F

Over 900000 products for the ones who get it doneCall Click Stop Byreg wwwgraingercom

4 | APRILMAY 2012

Government Procurement welcomes your feedback

Send letters to publicationsnigporg 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 greggherringpentoncom

Susie Barroso Group Marketing Director susiebarrosopentoncom

Joanne Romanek Online Advertising Specialist joanneromanekpentoncom

ADVERTISING SALES

Dave Gibson Northeast Region Sales davegibsonpentoncom 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 billperrypentoncom Phone 770-618-0453 ILWI PA MN WV AK TN MS AL FL

Ron Corey Midwest Region Sales ronaldcoreypentoncom Phone 248-608-0994 MI MO IA KY IN ND SD AR LA TX OK

Julie Fincher Western Region Sales juliefincherpentoncom 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 davidkieselsteinpentoncom

Nicola Allais Chief Financial Officer Executive Vice President nicolaallaispentoncom

Bob MacArthur Senior Vice President bobmacarthurpentoncom

Reader feedback

gt A VIEW FROM THE SALARY FRONT LINEI read ldquoHowrsquos Your Payrdquo [FebruaryMarch 2012] with much interest I have

been the Warehouse Manager for the largest ldquostoresrdquo operation for the

City of Philadelphia for 16 years and my base salary is only $43000 a year

For the City of Philadelphia regardless of how large or small a department

is regardless of the value of the inventory regardless of the amount of work

we all make the same (with the exception of the automotive personnel

which is one pay grade higher because they have been declared a specialty

for some reason or another) I can make the same salary operating this huge

operation as I can handing out pencils and paper from a broom closet

I would have loved to have been part of this survey

mdash Bob Deck Manager Philadelphia Fire Department Whse

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 ndash and we hope that you do ndash wersquoll publish

your comments in an upcoming issue of Government Procurement

You are a senior civilian contracting officer who reports to the chief of information

technology (IT) procurement for the US Department of Homeland Security

(DHS) The IT procurement chief has asked you to represent him in a meeting

of high-level functional specialists within DHS who have been called together by

the Deputy Secretary of DHS to discuss a very serious strategic problem

Smugglers have demonstrated on more than one occasion that they can stop Coast

Guard ships and other watercraft ldquodead in the waterrdquo by taking control of the vesselsrsquo

onboard operating systems including those systems not directly connected to the Internet

After consulting with everyone in the room except you to elicit their thoughts on what

can be done practicably to resolve the problem the Deputy Secretary turns to you and

says ldquoWell Mr Senior Contracting Officer I havenrsquot heard one practicable solution yet

Can I count on you to help preserve the Coast Guardrsquos ability to execute its missionrdquo

How do you respond to the Deputy Secretary Remember shersquos looking for

solutions that are practicable ndash that is practical and possible ndash no ldquoboil the oceanrdquo

solutions will be entertained Even if she likes your high-level explanation

of your solution(s) you know she is going to press for details

EDITORrsquoS NOTE Additional details on how the survey was

conducted and complete survey results are available at nigporg

Reported salary numbers did not include benefits or pensions

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

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8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

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Celebrating 55 Years

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of General Services

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of Transportation ndash

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Celebrating 50 Years

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Celebrating 30 Years

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of Transportation

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Regulatory Affairs Texas

gt King County Wash

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Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

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of Natural Resources SC

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Celebrating 25 Years

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of Parks Ky

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Public Schools Va

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State University Mo

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gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

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well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

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Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

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ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 5: GovPro - April/May 2012

Over 900000 products for the ones who get it doneCall Click Stop Byreg wwwgraingercom

4 | APRILMAY 2012

Government Procurement welcomes your feedback

Send letters to publicationsnigporg 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 greggherringpentoncom

Susie Barroso Group Marketing Director susiebarrosopentoncom

Joanne Romanek Online Advertising Specialist joanneromanekpentoncom

ADVERTISING SALES

Dave Gibson Northeast Region Sales davegibsonpentoncom 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 billperrypentoncom Phone 770-618-0453 ILWI PA MN WV AK TN MS AL FL

Ron Corey Midwest Region Sales ronaldcoreypentoncom Phone 248-608-0994 MI MO IA KY IN ND SD AR LA TX OK

Julie Fincher Western Region Sales juliefincherpentoncom 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 davidkieselsteinpentoncom

Nicola Allais Chief Financial Officer Executive Vice President nicolaallaispentoncom

Bob MacArthur Senior Vice President bobmacarthurpentoncom

Reader feedback

gt A VIEW FROM THE SALARY FRONT LINEI read ldquoHowrsquos Your Payrdquo [FebruaryMarch 2012] with much interest I have

been the Warehouse Manager for the largest ldquostoresrdquo operation for the

City of Philadelphia for 16 years and my base salary is only $43000 a year

For the City of Philadelphia regardless of how large or small a department

is regardless of the value of the inventory regardless of the amount of work

we all make the same (with the exception of the automotive personnel

which is one pay grade higher because they have been declared a specialty

for some reason or another) I can make the same salary operating this huge

operation as I can handing out pencils and paper from a broom closet

I would have loved to have been part of this survey

mdash Bob Deck Manager Philadelphia Fire Department Whse

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 ndash and we hope that you do ndash wersquoll publish

your comments in an upcoming issue of Government Procurement

You are a senior civilian contracting officer who reports to the chief of information

technology (IT) procurement for the US Department of Homeland Security

(DHS) The IT procurement chief has asked you to represent him in a meeting

of high-level functional specialists within DHS who have been called together by

the Deputy Secretary of DHS to discuss a very serious strategic problem

Smugglers have demonstrated on more than one occasion that they can stop Coast

Guard ships and other watercraft ldquodead in the waterrdquo by taking control of the vesselsrsquo

onboard operating systems including those systems not directly connected to the Internet

After consulting with everyone in the room except you to elicit their thoughts on what

can be done practicably to resolve the problem the Deputy Secretary turns to you and

says ldquoWell Mr Senior Contracting Officer I havenrsquot heard one practicable solution yet

Can I count on you to help preserve the Coast Guardrsquos ability to execute its missionrdquo

How do you respond to the Deputy Secretary Remember shersquos looking for

solutions that are practicable ndash that is practical and possible ndash no ldquoboil the oceanrdquo

solutions will be entertained Even if she likes your high-level explanation

of your solution(s) you know she is going to press for details

EDITORrsquoS NOTE Additional details on how the survey was

conducted and complete survey results are available at nigporg

Reported salary numbers did not include benefits or pensions

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

copy2012 MasterCard

A benefits card

with extra benefits

MasterCardreg prepaid

benefits cards reduce

disbursement costs

improve operational

efficiency and enhance

service to recipients in

several ways including

bull On-time payments and

easy access to funds

bull Ability to make purchases

pay bills and access cash

at millions of locations

nationwide

bull No bank account required

For more ways MasterCard can

benefit you and recipients visit

mastercardcompublicsector

8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

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of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

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gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 6: GovPro - April/May 2012

4 | APRILMAY 2012

Government Procurement welcomes your feedback

Send letters to publicationsnigporg 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 greggherringpentoncom

Susie Barroso Group Marketing Director susiebarrosopentoncom

Joanne Romanek Online Advertising Specialist joanneromanekpentoncom

ADVERTISING SALES

Dave Gibson Northeast Region Sales davegibsonpentoncom 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 billperrypentoncom Phone 770-618-0453 ILWI PA MN WV AK TN MS AL FL

Ron Corey Midwest Region Sales ronaldcoreypentoncom Phone 248-608-0994 MI MO IA KY IN ND SD AR LA TX OK

Julie Fincher Western Region Sales juliefincherpentoncom 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 davidkieselsteinpentoncom

Nicola Allais Chief Financial Officer Executive Vice President nicolaallaispentoncom

Bob MacArthur Senior Vice President bobmacarthurpentoncom

Reader feedback

gt A VIEW FROM THE SALARY FRONT LINEI read ldquoHowrsquos Your Payrdquo [FebruaryMarch 2012] with much interest I have

been the Warehouse Manager for the largest ldquostoresrdquo operation for the

City of Philadelphia for 16 years and my base salary is only $43000 a year

For the City of Philadelphia regardless of how large or small a department

is regardless of the value of the inventory regardless of the amount of work

we all make the same (with the exception of the automotive personnel

which is one pay grade higher because they have been declared a specialty

for some reason or another) I can make the same salary operating this huge

operation as I can handing out pencils and paper from a broom closet

I would have loved to have been part of this survey

mdash Bob Deck Manager Philadelphia Fire Department Whse

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 ndash and we hope that you do ndash wersquoll publish

your comments in an upcoming issue of Government Procurement

You are a senior civilian contracting officer who reports to the chief of information

technology (IT) procurement for the US Department of Homeland Security

(DHS) The IT procurement chief has asked you to represent him in a meeting

of high-level functional specialists within DHS who have been called together by

the Deputy Secretary of DHS to discuss a very serious strategic problem

Smugglers have demonstrated on more than one occasion that they can stop Coast

Guard ships and other watercraft ldquodead in the waterrdquo by taking control of the vesselsrsquo

onboard operating systems including those systems not directly connected to the Internet

After consulting with everyone in the room except you to elicit their thoughts on what

can be done practicably to resolve the problem the Deputy Secretary turns to you and

says ldquoWell Mr Senior Contracting Officer I havenrsquot heard one practicable solution yet

Can I count on you to help preserve the Coast Guardrsquos ability to execute its missionrdquo

How do you respond to the Deputy Secretary Remember shersquos looking for

solutions that are practicable ndash that is practical and possible ndash no ldquoboil the oceanrdquo

solutions will be entertained Even if she likes your high-level explanation

of your solution(s) you know she is going to press for details

EDITORrsquoS NOTE Additional details on how the survey was

conducted and complete survey results are available at nigporg

Reported salary numbers did not include benefits or pensions

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

copy2012 MasterCard

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with extra benefits

MasterCardreg prepaid

benefits cards reduce

disbursement costs

improve operational

efficiency and enhance

service to recipients in

several ways including

bull On-time payments and

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at millions of locations

nationwide

bull No bank account required

For more ways MasterCard can

benefit you and recipients visit

mastercardcompublicsector

8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

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sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

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ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 7: GovPro - April/May 2012

ADVANCING EFFICIENCY ADVANCING COMMERCE

)13

13 13 $ 13 13 13 13

131313

$

1313131313131313

13 $ $$

13 ( 13 ( $

13 $ ( $amp

$ $

13 $

$$

Explore our prepaid card solutions at mastercardcomgovernment

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

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8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

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12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

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So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

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For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

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savings are yours to keep Contact us today and start

making energy efficiency work for you

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StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 8: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 7

n some government agencies and municipalities rules codes or

guidelines restrict the manner and the period for communication

between applicants and agency personnel during a public competitive

selection process Miami Dade County Fla for example has implemented

what is known as the ldquoCone of Silencerdquo Th e intent of the concept is to

channel all communications between applicants competing for goods

services and capital projects through the procurement department

Th is is done to avoid communications between competing vendors and

members of an evaluating committee end-users or administration

personnel Doing so diminishes the opportunity for inappropriate

communication between applicants and agency personnel Th is

practice reduces the opportunity of an applicant to infl uence the

outcome of a competitive process and violating the guideline may

result in disqualifi cation of the applicant from the selection process

Th e explosion in the use of social media has made its way into the public

procurement sector Inadvertently or purposefully employees or individuals

associated with companies seeking to do business with government agencies

may fi nd themselves in a precarious situation related to comments posted

in social media during a selection process Recently I came across an issue

I

IMPACT OF SOCIAL MEDIA ON PUBLIC PROCUREMENT

HOTTOPICS [fair competition]

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8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

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For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 9: GovPro - April/May 2012

8 | APRILMAY 2012

HOTTOPICS [fair competition]

related to social media and my institutionrsquos practice

of the Cone of Silence doctrine during a selection

process for a capital project Searching similar cases

that could provide me with solutions or guidelines

on how to handle the situation brought to light a lack

of standards and common practices to address this

issue I solicited input or feedback from colleagues

in the field but received very limited responses

Those who responded limited their comments to

the recognition of potential issues surrounding the

matter but had no formal guidelines to address it

Letrsquos face it Some vendors will stop at nothing in

trying to influence a selection process They will call

end users ask for additional information regarding

projects seek inside knowledge of the project from

administration personnel solicit budgets etc Some

of them will go so far as to discredit competitors

by disseminating rumors and horror stories about

their performance and personnel Vendors have

the right to solicit additional information but they

must do so by following proper communication

protocols that guarantee transparency and equality

to all competing vendors Otherwise the contact is

inappropriate No applicant should try to influence

a committee member or administration member

regarding the selection of an applicant by direct

contact with that individual whether done in person

by phone or by the use of social media tools

With proliferation of the Internet many firms

have developed web sites and engaged in the use

of social media sites such as Twitter Facebook My

Space and blogs as marketing vehicles Agencies

now have the need to adapt the concept of the Cone

of Silence to todayrsquos reality of electronic media My

opinion is that agencies should take steps to monitor

or regulate companies their personnel consultants

andor retained professionals from posting comments

offering opinions or engaging in discussions that

are directly related to a project during the evaluation

or selection process Agencies may find themselves

equally challenged to prevent committee members

and administration personnel from reading these

postings during the evaluation and selection period

or worse to engage and respond to them An

article published recently by Reuters looked into the

challenges courts across the nation are facing with

jurors communicating researching and posting

opinions about ongoing cases on social media

Several cases have been dismissed due to this issue

Agencies face the challenge of creating language that

addresses their concern about the use of social media

by competing vendors Equally agencies must educate

committee members and administration personnel to

be alert to emails and invitations to ldquofriendrdquo or to ldquolikerdquo

companies or individuals on Facebook My Space or

LinkedIn They must be instructed to disregard any

commentary or postings they come across regarding

applicants while using the Internet during ongoing

selections They should be instructed to report to

procurement any occurrence of what may be considered

inappropriate commentary regarding the selection or

the process at hand You may want to recommend or

suggest to them to avoid social media while engaging

in the selection process although this request may

be seen as extreme One should consider if such a

request hinders the ability of committee members to

research and learn about a particular product similar

projects or a company history and its competitors

At this time we do not mandate that companies

or professionals not engage in social media during

selections However we do express an expectation

from the agency (noted in writing in the solicitation

document) that applicants whether firms or

individuals refrain from doing so during a selection

period Once that concern has been expressed in a

solicitation document applicants are put on notice

about any deliberate attempt to make use of social

media as an alternate vehicle to breach the Cone of

Silence or communication protocols It will make

them aware that you have the option to invoke that

rule should you come across evidence of a deliberate

attempt by an applicant to influence a selection Legal

counsel should be involved in drafting the language and

in the implementation of these new guidelines This

is not an attempt to prevent applicants from posting

online but to persuade them to be careful what they

say in social media so it doesnrsquot come back to bite

them So you thought your teenage kid was your only

concern regarding social media Think again

RAMON S BRISTOL CASTRILLON CPPO

FCCM is assistant purchasing director facilities

plant maintenance at Miami-Dade College

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

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Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 10: GovPro - April/May 2012

10 | APRILMAY 2012

For procurement staff working from the

Emergency Response Center war room

things happen fast Half a dozen phones ring off

the hook Supply requests come in from towns that

look like swamps of muddy water The potential

for fouled communication abounds No I thought

you canceled that order for two more backhoes

Recently during an emergency caused by heavy

rains Oregonrsquos award-winning disaster response

purchasing toolkit was put to use with great results

The toolkit has user-friendly forms that help organize

the rapid flow of requests for supplies and services

Even a phone script is included to ensure that adequate

information is obtained when supply orders are called

in from the field ldquoWe didnrsquot have time to look at thick

binders when we were in the Emergency Command

Centerrdquo said Melissa Canfield Oregon procurement

internal operations manager ldquoThe flow chart

and the one-page forms in the toolkit

gave us the guidance we neededrdquo

In case of a full-scale disaster

a mobile office also is on hand

that contains paper purchase

orders lists of contracts

that have disaster-related

supplies employee phone

numbers locations of Wi-Fi

hot spots and other items

necessary to do business

from the trunk of a car

Looking back just a few

years the level of disaster preparedness and inter-

agency cooperation mostly involved silo efforts and

dusty binders filled with business continuity plans

THE WAKEUP CALL

On Aug 29 2005 Hurricane Katrina hit landfall The

storm left approximately 1800 people dead nearly

destroyed New Orleans and cut a wide swath of

destruction across seven states The frightening

chaos that ensued prompted agencies around the

nation to examine their disaster response plans

At that time in Oregon procurement wasnrsquot in

the picture at the Oregon Office of Emergency

Management (OEM) ldquoI didnrsquot even think about

the role of procurement but during a disaster

procurement eventually touches everythingrdquo said

Ken Murphy who was then Director of the OEM

A multi-agency effort ensued to develop the

first disaster toolkit and to implement many

necessary changes in procedures For example

managers needed purchasing cards with high

limits such as $75000 to expedite emergency

purchasing The new toolkit was soon put to

use in 2007 during the extensive flooding of

Vernonia a town near the coast of Oregon

During the mop-up stage the procurement tracking

forms for FEMA reimbursement proved their worth

Stacie Younk charged with sorting out the disaster-

related expenses was able to assemble accurate

purchasing records from the notes on the forms ldquoWe

got 100 percent reimbursement from FEMA because we

had all of the documentation they neededrdquo she said

REFINING THE TOOLKIT

After the 2007 deacutebut Marscy Stone outreach manager

for the Oregon State Procurement Office led

a multi-agency stakeholder team charged

with refining the toolkit Unlike many

committees that never seem to gel this

group became a high-performing team

The group relied on a well-defined

charter to keep their efforts on

track ldquoThe charter didnrsquot just sit on

a shelfrdquo she emphasized ldquoWe used

it continuously to keep focusedrdquo

Tim Hay a procurement analyst and

a key member of the team commented

on the effectiveness of the group ldquoThe

HOTTOPICS [emergency preparedness]

OREGONrsquoS DISASTER TOOLKIT PUT TO THE TEST

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

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The Prius Plug-in is the most advanced member of the Prius Family

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of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

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Aging equipment sustainability goals and rising

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ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 11: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 11

team didnrsquot get bogged down in a lot haggling

Everybody had assignments to work on and they had to

bring these back to the tablerdquo Having the same people

on the team for more than three years also created

cohesiveness ldquoWe broke down a lot of barriers between

agencies through this planning processrdquo he noted

The grouprsquos hard work has paid off with a

comprehensive set of disaster response resources that

support procurement activities To avoid the trap of

good ideas that donrsquot really work the checklists and

templates were tested through table-top exercises

ldquoWe brought in people who hadnrsquot participated

in disaster planning and had them run through

the book We asked them lsquowhat makes sense and

what doesnrsquot make sensersquordquo Tim Hay explained

Dave Stuckey deputy director at the Oregon

Office of Emergency Management expressed his

appreciation for the effort ldquoIn a major disaster the

procurement people will be like gold We simply must

get things like large cranes from private contractors

Procurement people will always have a seat at the tablerdquo

The disaster response team now meets quarterly to

review progress and plan next steps They can be proud

of major progress that has been made in cross-agency

coordination and procurement support tools shaped

and refined in the crucible of a real disaster response

The toolkit resources are available as free downloads

from the statersquos website [httpwwworegongov

DASSSDSPOdisaster-preparednessshtml] The

resources are also bundled on an innovative flash

drive in the form of a plastic wrist bracelet that can be

ordered for $15 The resources include a list of items

to build your own grab-and-go mobile office

GREG HOPKINS teaches

procurement classes for the

Oregon State Procurement

Office He has written articles

for Government Fleet magazine

Government Procurement and

Training and Development Journal

Besides writing and teaching

he is also a conference presenter and is an active

participant in the green procurement movement

Our most popular product is complianceShop 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

sOPARTICIPATIONFEE

s0ARTOFDUCATIONAL)NSTITUTIONALOOPERATIVE0URCHASINGA13YEAR13OLDNOT13 FOR13PROlTGROUPPURCHASINGORGANIZATION

sEVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing

Visit wwwpublicsourcingorg to start saving on the things you need

Furniture

Office Supplies

Technology

Flooring

Maintenance

Compliance

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

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For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

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(sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 12: GovPro - April/May 2012

12 | APRILMAY 2012

HOTTOPICS [best practices]

Procurement Professional Practices Go GlobalNIGP AND UNITED KINGDOMrsquoS CIPS RELEASE TEN GLOBAL PUBLIC PROCUREMENT PRACTICES TO LAUNCH ONGOING COLLABORATION

overnments and procurement departments

around the world face real challenges in

delivering good quality products and services including

challenges of mounting debt and budget cuts In

some areas of the world immaturity or corruption in

purchasing departments compound the difficulty

Good practices do exist however despite media

reports of waste and inefficiency Excellent

results are being achieved around the

world using best practice principles

Capturing

these best

practices and

sharing them

more widely with

anyone responsible

for procurement in

the public sector can

have a real impact on

standards and change

To that end NIGP

The Institute for Public

Procurement and the

United Kingdomrsquos Chartered

Institute of Purchasing

and Supply (CIPS) have

jointly released Ten Global

Public Procurement Practices Part

of a larger shared initiative to define and

formalize global professional standards for

government procurement officials these ten

standard practices provide high-level guidance

across the following procurement activities

Strategic Procurement Planning Performance

Measurement Performance Metrics Use of Cooperative

Contracts Transparency Risk Management Ethical

Procurement Procurement Policy Manual Performance

Management and Performance-Based Contracting

In addition NIGP and CIPS will continue to

jointly develop and release additional practices

while maintaining an ongoing review process to

ensure that the body of practices remains relevant

and supports the evolving needs of government

procurement practitioners over time

Public entities at all levels of government perform

many of the same procurement activities yet their

methodologies and outcomes differ because each

entityrsquos practices have been defined based on their

unique operating environments Creating a reference of

formalized standard practices established through the

collaboration of public sector professionals around

the world provides agencies an authoritative

resource to define professional standards

of practice across critical public

procurement functions

As political leaders draw

increasing scrutiny and voter

pressure to demonstrate

fiscal responsibility

procurement

professionals must

ensure that they maximize

the value of every tax dollar

US governments spend a

combined seven trillion dollars

Canadian governments 360 billion

dollars and UK governments more

than 500 billion pounds Consistent

and professional procurement

practices across governments can

positively impact the effective

expenditure of public funds

It is a mistake to see

procurement policies as a mere

set of rules governing practice and not

as a crucial strategic approach on which true

capability can be built Smart procurement teams

formalize policy and process development and

train their teams to have a thorough understanding

of process design and to decide what is appropriate

for their organization Smart procurement teams

gt have a developed set of procurement

policies and procedures

gt ensure that the procedures easily accessible

indexed and cross-referenced

gt have a high-level procurement policy in place

gt have clear procedures to inform staff

about changes in legislation

G

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

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With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

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)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

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savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 13: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 13

CIPS and NIGP have both been involved in the

public sector for decades each working in their own

sphere of influence until now Both organizations share

a common understanding and view of procurement

so it makes sense to combine their expertise The

partnershiprsquos aim is to work together for the public

good bringing professionalism and best public sector

practice to governments all over the world A lofty ideal

maybe but a simple one and a way of extending the

reach of good procurement practice to public sector

groups on a global scale Also there will be real and

tangible deliverables and not just a list of intentions The

results should change how individuals and organizations

work and the activity can be quantified and measured

to highlight the progression and improvements

Since 1944 NIGP has been developing supporting

and promoting public procurement practitioners

through premier educational and research programs

technical services and advocacy initiatives With

more than 2400 member agencies representing more

than 15000 professionals across the United States

Canada and countries outside of North America

the Institute is international in its reach NIGPrsquos

goals is recognition and esteem for the government

procurement profession and its dedicated practitioners

The Chartered Institute of Purchasing and Supply

(CIPS) is the worldrsquos largest procurement and supply

professional organization It is the worldwide center

of excellence on purchasing and supply management

issues CIPS has more than 65000 members in 150

different countries including senior business people

high-ranking civil servants and leading academics The

activities of purchasing and supply chain professionals

have a major impact on the profitability and efficiency

of all types of organization and CIPS offers corporate

solutions packages to improve business profitability

The joint global initiative is a significant milestone

for the public sector and has the potential to contribute

significantly to the public good and global economies

Establishing and leading adoption of a set of principles

and practical documents and a common procurement

language around the world is ambitious Support of

the initiative throughout the public sector can help

to achieve worthwhile and sustainable change

MAKE MOLEHILLS

OUT OF MOUNTAINS

The Cushman 1600XD lives to conquer any job

Therersquos no task too big for the 22-hp diesel engine

1600-lb payload and massive cargo bed And no

matter where work needs to be done yoursquoll get

there thanks to user-selectable 4WD a locking rear

differential and 4-wheel independent suspension

So whether yoursquore moving mountains or driving

over them the 1600XD is ready for action

LETrsquoS WORK

wwwcushmancomcopy 2012 Textron Inc All rights reserved

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

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of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

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ISD 1 Okla

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Celebrating 35 Years

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of Pasco County Fla

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of Commissioners Fla

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of Juneau Alaska

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gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

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at College Park Md

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gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

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Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

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Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

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Purchasing Wis

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Police Jury La

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Commissioners Fla

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Transportation Texas

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Broward County Fla

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of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

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gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

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)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 14: GovPro - April/May 2012

14 | APRILMAY 2012

HOTTOPICS [best practices]

magine you are part of a family of four and the

recession means your monthly budget has been

squeezed Gas and food prices have gone up and your

household income has stayed the same or gone down

Unfortunately this is easy for many of us to imagine

So you download a transaction history from your

online banking site and ask the rest of the family to

save receipts for things they bought with cash for a

couple of weeks It takes some time to organize the

data useful pieces of information are missing and

itrsquos not easy to categorize exactly what was bought

However it is manageable to record everything on a

piece of paper or a spreadsheet Th en you get together

as a family to discuss where you can buy things more

cheaply which store gives you the best membership

card rewards and what household items you could

probably live without Since money is one of the

top things couples and families fi ght about itrsquos not

surprising that when it comes to deciding how to cut

spending the discussion oft en turns into an argument

Multiply the number of people who can spend

money by 1000 throw in some complicated rules

governing how money can be spent and remove

direct access to the online banking site to download

transactions Now you have the situation many public

sector organizations face today Th atrsquos how I explain

the diffi culties of public sector spend analysis to people

who have never worked in or experienced it before

Like the household example above spend analysis

requires diff erent skill-sets a balance of priorities

and the right resources either internal or external

to complete three distinct steps listed below

STEP 1

Collect the data from its various locations get it

into the right shape clean it up so that you trust it

when making your decisions and add any missing

information that you need for your analysis Doing

this in a comprehensive repeatable and timely

manner is a niche skill Yoursquore in the minority if you

trust the raw data that comes out of your fi nancial

management system if it includes your purchasing

card spend and if it contains all the fi elds you need in

order to get accurate visibility over your organizationrsquos

expenditure and contracts If so you can skip this step

STEP 2

Itrsquos only when you have data you can trust in the right

shape that you can begin analyzing it Analyzing data

really boils down to looking for patterns minus and looking

for outliers Sorting manipulating and pivoting the data

in diff erent ways will raise new questions and bring to

light new opportunities that you wouldnrsquot have been

able to see without having all of the data in one place

You probably have preconceived questions such as

ldquoWhere have we exceeded our statutory spend limits

and need to get a contract in place quicklyrdquo Th e results

of analyzing spend should answer those questions

but also raise questions you had never thought to ask

before It takes a specifi c skill-set to manipulate data

in new ways to look for patterns and it may be that

you need to hire a data analyst identify the member

of your team with the best analytical skills (even if

they arenrsquot the most experienced in procurement)

or draft one part-time from another department

STEP 3

Once data transformation and analytics are

accomplished procurement professionals can really

use their dominant skill-sets assessing all the available

information deciding what to do with the results of

the analysis and prioritizing next actions to meet legal

requirements yield savings and increase procurementrsquos

overall effi ciency Th e results of the data analysis can

be used fi rst to identify the low-hanging fruit where

productive changes can be implemented fast then

I

WHATrsquoS THE BUZZ ABOUT SPEND ANALYSIS

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

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Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

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For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 15: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 15

to plan for medium-term opportunities and contracting requirements and lastly

to develop a strategic sourcing strategy that incorporates long-term purchasing

decisions as well as the structure and technology required by the organization to

achieve those goals The difficulty for many organizations is that they arenrsquot able

to ndash or allowed to ndash spend any money or commit resources to going through steps 1

and 2 before they are expected to jump directly to step 3 Itrsquos like trying to navigate

the best possible route with an incomplete map and only a scant few coordinates

WHY IS NOW A GOOD TIME

In the current climate public sector procurement teams are in a strong position to

argue for the time and resources necessary to carry out a spend analysis exercise

There is an increased focus on external spend as a means of coping with budget

difficulties and procurement teams are uniquely positioned to play a strategic

role in meeting those challenges The resources competencies and experience

level of the procurement team will dictate which projects can be undertaken but

if you are going to play a strategic role in your organizationrsquos response to funding

cuts you first need to have a firm handle on where the money is going today

JONATHAN WHITE is territory cirector for Spikes Cavell Inc which equips

decision makers in the public sector with the business intelligence online tools and

analytical insight to transform the way they procure goods and services The Spikes

Cavell Observatory is an online platform that facilitates delivery of spend and contract

visibility quickly affordably and with little effort on the agencyrsquos or institutionrsquos part

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

)amp4-2S4RUCK-OUNTEDRANE

)amp4-2S4RUCK-OUNTEDRANE

ampT13BS-OMENT2ATINGB-AXIMUMAPACITY

sampT0OWERXTENSIONsONTINUOUS2OTATIONs(EXOOMs7IRELESS2EMOTEONTROLs(IGH3PEED0LANETARYEAR7INCHsLLSTANDARDFEATURESOFTHISNEWCRANE

IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTOBS

(OUSTON4EXASs1313amp81313WWWLIFTMOORECOM

)amp4-2))amp4-2)

Naperville saves $120000 using Spikes Cavell Observatory

The City of Naperville Ill

implemented the Spikes Cavell

Observatory suite of data-driven

online tools to deliver improved

spend and contract visibility ldquoSo far we

estimate that wersquove delivered around

$120000 and with the initiatives

that the Observatory has helped us

to identify our forecast is that wersquoll

multiply our initial savings by a factor

of four by year endrdquo said Mike Bevis

Napervillersquos Chief Procurement Officer

With a total population of 140000

Naperville is the fifth largest city in

the state of Illinois behind Chicago

neighboring Aurora Rockford

and Joliet Naperville successfully

attracted a number of corporate

headquarters to the city and has

made Money magazinersquos Top 10

Places to Live for the past decade

Procurement at the City of Naperville

is centralized and the five-person

team spends around $140 million a

year purchasing everything needed

to run the city including construction

and professional services

The number one priority for

the procurement team at the City

of Naperville is managing spend

to deliver savings for the city As a

small team they have to be careful

to ensure they spend their time

working on what matters most and

an effective way to rank and prioritize

projects high on the needs list

The Naperville procurement

team has used the Spikes Cavell

Observatory a cloud-based

online service to identify savings

opportunities and in particular to

establish which of those opportunities

delivered the biggest ldquobang for

their buckrdquo Improved spend and

contract visibility have highlighted the

opportunity to collaborate with local

park and school districts who have

also implemented the Spikes Cavell

Observatory The result is that the

organizations have been able to identify

common suppliers and save money

by renegotiating relevant contracts

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

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US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

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For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 16: GovPro - April/May 2012

16 | APRILMAY 2012

HOTTOPICS [energy planning]

magine working late at city hall one

night and the lights begin to flicker

Next only a few city buildings and key public

gathering places remain lit The rest of the region

surrounding your city sits in total darkness

The power is out for two days yet the city

continues to operate with minimal disruption It

was spared from the worst effects of a power outage

because a couple of years ago it became involved in

energy assurance or energy security planning

Today more local governments are paying attention

to energy security issues which means they are

concerned about their ability to maintain essential

community services in the face of an energy disruption

And rightfully so many essential local governments

services fall into jeopardy when the power goes out

Local governments are apprehensive about the spate of

energy outages because basic economic activity can be

adversely affected without power even for a short time

ldquoWe had to change our thought process and

build energy into our business continuity plan

and figure out how we could make it through a

power outage that lasted several daysrdquo says Casper

Wyo Assistant City Manager Linda Witko

In planning for Y2K and following 911 communities

paid heavy attention to crafting and practicing

emergency response plans Now however many realize

that their emergency response plans do not include

actions that specifically address energy disruptions

Given the increasing importance of energy across most

services this gap is now deemed unacceptable by many

Although local government energy security

planning includes three steps (preparedness and

investment response and restoration) most

communities have not completed the first step pre-

event energy outage preparedness and investment

A group of 43 cities mdash from large communities

(Boston Chicago Denver and Philadelphia) to

medium and small cities (Baton Rouge La Raleigh

NC Hailey Idaho and Roswell Ga) mdash have been

designing energy assurance plans since 2006 with

the Public Technology Institute (PTI) supported by

the US Department of Energyrsquos Office of Electricity

Delivery and Energy Reliability ndash wwwoegov

ldquoIt comes down to assuring that local

governments are energy self-reliant until normal

energy services are restoredrdquo says PTIrsquos Assistant

Executive Director Ronda Mosley ldquoThis requires

partnerships with utilities and many othersrdquo

Tricia Sears project director for Portland Orersquos

energy security plan says that the program helped

the city identify its energy weaknesses and strengths

ldquoOur energy assurance planning enabled us to pull

together sustainability transportation energy and

emergency issues and integrate themrdquo she states

In a separate project PTI is assisting the California

Energy Commission (CEC) reach its goal of

having 50 local government energy security plans

complete by early 2013 Getting the attention of

California local governments may be easier because

of the recent numerous energy disruptions and

billions of utility-funded local government energy

efficiency programs invested over the last decade

ldquoThe term energy assurance is new to many

people and yes it is competing with other

issues for attentionrdquo says Witco ldquoBut once you

understand that it can help you manage your

city more effectively you have to pursue itrdquo

Because of the many threats from hazards such

as natural events and terrorism power outages

and the possible supply disruption from foreign

sources of petroleum local governments must work

with utilities regional councils of governments

neighboring communities and other stakeholders to

build strong energy assurance plans For example

local governments in the California San Joaquin Valley

are considering energy security issues regionally and

in the interest of self-reliance discussing options for

shoring-up their local energy supplies Not only are

cities like Visalia Calif designing their own energy

security plans the region is parlaying its experience

with climate action and sustainability plans into

partnerships with Fresno and other regional cities

They also are thinking regionally to keep

energy dollars and jobs in their area

ldquoWe see increased interest from our members

in energy planningrdquo says Fred Abousleman

executive director of the National Association of

Regional Councils ldquoLots of jobs are at stake with

new shale gas finds and renewables When you

combine energy assurance efforts with general

planning efforts the community winsrdquo

Local governments also are finding themselves

engaged in what typically has been a utility-only

Keeping the Lights On IN AN EMERGENCY WILL YOUR GOVERNMENT HAVE THE POWER IT NEEDS

I

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

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For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

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regarded members of a

respected professional order

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gt City of Owensboro Ky

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of General Services

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of Transportation ndash

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ISD 1 Okla

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Celebrating 45 Years

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Procurement Services Fla

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Celebrating 40 Years

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Celebrating 35 Years

gt City of Cheyenne Wyo

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Government Tenn

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of Pasco County Fla

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Public Schools Va

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of Commissioners Fla

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Commission Pa

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of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

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gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 17: GovPro - April/May 2012

13 13

131313

13131313131313

131313131313131313

$ 13

1313 13

13

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

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Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

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)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

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GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 18: GovPro - April/May 2012

18 | APRILMAY 2012

HOTTOPICS [energy planning]

world City leaders are perhaps for the first time

building real partnerships with their energy suppliers

and learning about smart grid opportunities cyber

security threats and exploring various types of

alternative energy generation They are writing new

energy security plans to minimize the impact of future

service disruptions and to reduce economic risk

Some local governments are considering

their energy security planning as an investment

similar to an insurance policy ldquoYou pay a small

premium up-front to protect against something

you hope never happensrdquo Mosley says

However energy security planning does not have to

be resource intensive she says She suggests several low-

and no-cost options used by some local governments

gt Identify and document all generator locations

the fuel used in each their fuel capacity and

make sure these generators are exercised

gt Locate and map fuel storage facilities

gt Require that all government fleet vehicles have

at least a 12 tank of fuel at the end of a shift

gt Traditional telecommuting and 4-day work

weeks help control the load growth and

energy used by your local government

gt Review all existing fuel contracts

ensuring that your government is ldquofirst

in linerdquo in an energy emergency

gt Review all available materials related to any

past energy emergency and put together a short

document that outlines the lessons learned

If an emergency occurs that affects energy

local governments must be prepared to ldquogo it

alonerdquo for at least 72 hours because state and

federal governments may not be able to provide

assistance for at least that long Mosley says ldquoIf that

happens a local government is better prepared if

it has an energy assurance planrdquo she says

GEORGE BURMEISTER is a strategic advisor to

the Public Technology Institute and president of the

Boulder Colo-based Colorado Energy Group Inc

STEVE FOUTE PHD also is a strategic advisor to

Public Technology Institute and a former environmental

manager for the City and County of Denver

Government agencies save with Staples Advantagereg

Tailored to you

Staples Advantage the business-to-business division of Staples offers tailored procurement solutions to state and local government agencies

UEcirciIgraveEcircOtildeAgraveEcircUumlEcirc gtIgravegtEcirclaquoiAgravegtIgraveUcirciEcircVIgraveAgravegtVIgraveEcirclaquoAgraveVdeg

UEcircEcirc`EcirciUcirciAgraveTHORNIgraveEcircvAgraveEcircvwViEcirclaquoAgrave`OtildeVIgraveAtilde]EcircvOtildeAgraveIgraveOtildeAgraveiEcircgt`EcircEcircvgtVIgraveiAtildeEcirclaquoAgrave`OtildeVIgraveAtildeEcircIgraveEcircIgraveiVTHORN]EcirclaquoAgraveIgravegtEcircproducts and custom print services

To learn more or to become a customer visit StaplesAdvantagecomstatelocalgov

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

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of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

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ISD 1 Okla

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Celebrating 35 Years

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of Pasco County Fla

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of Commissioners Fla

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of Juneau Alaska

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Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

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gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

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at College Park Md

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gt Placer County Calif

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Celebrating 25 Years

gt Morris County NJ

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Transit Texas

gt City of Fort Smith Ark

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of Parks Ky

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Washington Va

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gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

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Purchasing Wis

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Police Jury La

gt Lee County Board of

Commissioners Fla

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Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

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electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

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improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () 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Page 19: GovPro - April/May 2012

ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯampŽdžďŽƌŽDϬϮϬϯϱဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽampƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ

ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠ allows you to chill and heat your food

ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů

ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ

dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ

ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ

ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ

dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽampƌŝĚŐĞΠǁŝƚŚ

^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ

(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ

ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ

(Safe Plugreg Technology ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ

ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ

ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ

( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and

ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ

( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ

ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ

The Comforts of Home

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

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energy upgrades And finding capital to fund the

improvements can be almost impossible How

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Page 20: GovPro - April/May 2012

20 | APRILMAY 2012

IN DEPTH [construction]

THE GROWTH OF DESIGN-BUILDCONSTRUCTION

Over the last decade the public

procurement profession has seen

greater use of alternative delivery

methods of construction projects

including design-build construction

manager at risk (GCCM or CMGC)

public private partnerships (P3) and job order contracting

Th e traditional method of soliciting and contracting

design-bid-build is still the most widely used method

of construction contacting It has been the mainstay of

government construction contracting for well over 60 years

GROWTH OF DESIGN-BUILD

Many states and local governments were slow to adopt the new

construction contract delivery methods For a long time statutes

continued to require that public improvements be competitively

bid in the traditional way In fact the American Bar Association

(ABA) Model Procurement Code was not revised until 2000

to add coverage for procurement of infrastructure services

using integrated project delivery methods like design-build

Th e alternative construction delivery methods are solicited

as a request for proposal and all are intended to save time and

hopefully money As of the writing of this article all 50 states

and Washington DC allow some form of alternative contracting

methods among them design-build Moreover in 2011-2012

at least 20 states expanded their design-build authority

Design-build procurements award a single contract for

both architecturalengineering design and construction

Design-build is well suited for highway and bridge

construction But this contracting method is particularly

valuable as well for construction aft er disasters such as

tornadoes fl oods and hurricanes In 2012 for example

the Louisiana state senate unanimously voted to approve a

senate bill that expanded design-build contracting capacity

By Edward J Pabor and Richard Pennington

After the I-35W Bridge over the Mississippi River collapsed in 2007 the rebuilding project was completed three months early using design-build construction

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

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Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

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gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

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gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

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gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

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Public Schools Va

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Community College

District Ariz

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of Commissioners Fla

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Commission Pa

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gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

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)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

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reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

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Page 21: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 21

into July 2013 The Times Picayune reports that design-

build had been in place since 2007 and has been used to

repair damaged libraries hospitals and other construction

projects after the state suffered devastating hurricanes

On Aug 1 2007 the I-35W Bridge over the Mississippi River

collapsed Thirteen months later on September 18 2008 the first

cars rolled across the newly constructed bridge The Minnesota

Department of Transportation (MnDOT) used design-build to

complete the construction The biggest benefits were described

as ldquospeed of delivery and innovationrdquo The state was able to save

time by overlapping design and construction activities The

state avoided an estimated $400000 a day from lost revenue

and the costs of detouring traffic caused by the downed bridge

The MnDOT process is illustrative of design-build

project delivery The process started with a statement of

qualifications Mayor and city council approval of the design-

build contracting method was expedited The speed of

contract approval was unprecedented and the bridge was

completed in one year ndash three months ahead of schedule

The State of New York passed legislation to use design-build

in October 2011 after the destruction caused by Hurricane

Irene Likewise the State of Missouri and the Federal Emergency

Management Agency (FEMA) used design-build to help rebuild

Joplin Mo after the devastating tornado of May 2011 Many

of these jobs need to be done rapidly because there is a 180-

day window for federal reimbursement for some projects

Johnson County Kan used the design-build method for an

emergency communication center The center operates 247

and includes a 911 call center The structural design was based

on FEMA requirements making mission-critical areas within

the building capable of withstanding an F4 tornado (or 260

mile-per-hour winds) and having redundant electrical and

mechanical systems that can maintain operations for four days

The project was finished seven months earlier than scheduled

PROS AND CONS OF DESIGN-BUILD

Alternative methods of contracting for construction projects

are not the best methods for every project It takes acumen

and the discerning experience of a professional contracting

procurement officer to know the right type of construction

delivery strategy because there are some fundamental

differences In traditional design-bid-build for example the

risk of adequacy of design is on the owner The specifications

and drawings provided by the owner to the contractor are

ldquodesign specificationsrdquo Under construction law the owner

warrants their adequacy meaning the contractor is responsible

only for building to the design and does not guarantee that any

particular outcome will be achieved This legal concept the

Spearin doctrine is named after the 1919 United State Supreme

Court case that spawned it The Spearin doctrine protects

the contractor from incomplete or impractical specifications

issued by the owner or the ownerrsquos architectengineer (ldquoAErdquo)

In design-build on the other hand the statement of work

typically uses more performance-based language (even

though practically the specifications are often mixed between

performance and design-type specifications) Because the

design-build entity delivers not only construction but also

the design that company is responsible for achieving the

objectives in the statement of work While at first blush a design-

build approach seems preferable by centralizing design and

construction responsibility in a single company there are both

advantages and disadvantages to use of the delivery method

With regard to advantages the contractor is selected

based on qualifications capabilities experience and price

thus avoiding some of the pitfalls from contract awards

solely based on low price The design and construction

are performed by a single team under one contract This

reduces the ownerrsquos risk from diffused responsibility for

design and construction Time can be saved because ordering

of materials and site work begin before the total design is

complete There is a close contractual relationship between

the design and construction teams resulting in fewer change

orders by the owner that arise from occasional revisions in

design by an ownerrsquos AE Overall design-build contracting

has greater potential to save time and reduce cost

But there are disadvantages as well The owner may not have

the security (and comfort) of having an AE act as their agent

during the project Even if the owner has an independent AE

involved in oversight of the project the AE does not have as

much insight into the design details As such with design-

build the owner will lose some control of the design process

Design often is managed through owner approval of design

documents during performance While some design elements

may be specified typically the contractor is given flexibility

in design Recent federal court decisions have illuminated

the boundaries of design and construction independence

as one of the sources of tension in the relationship

Another disadvantage can be less competition Not every

company can put together an effective design-build team and

it may be more difficult to secure performance and payment

bonds on this type of project Even from the public procurement

professionalrsquos perspective the process involves best value

approaches to solicitation development evaluation and award

not always familiar to construction management personnel

Contract management is more challenging as well

Contract administration overall requires more collaboration

The absence of effective collaboration may be where

the growing pains of design-build are revealed

LEGAL DECISIONS HIGHLIGHT GROWING PAINS

As the Louisiana state senate learned when considering a bill

to extend design-build authority there is opposition to its use

by some architects and engineers In the State of California in

fact groups representing the AE community filed a lawsuit

(unsuccessfully it turned out) against the San Francisco Presidio

parkway project alleging that the design-build approach did

not comply with state law [Professional Engrsquors in California

Govrsquot v Deprsquot of Transp 198 CalApp4th 17 (2011)]

Recent court decisions illustrate some of the other friction

points that can occur when any procurement system is changed

in fundamental ways The cases discussed here are published

appellate court decisions meaning significant resources

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

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This means you can immediately start state-of-the-art

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making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 22: GovPro - April/May 2012

22 | APRILMAY 2012

IN DEPTH [construction]

were invested to resolve the issues at the heart of these cases

Public procurement professionals can learn from these cases

where they can reduce risk in solicitations and contracts

Design-Build is reframing historical procurement

processes Advanced construction delivery methods like

design-build reframe the way traditional procurement

concepts like responsiveness are applied There is a

resource and training implication of course Personnel

perhaps very experienced in construction bidding have

to learn new processes The Minneapolis I-35W bridge

reconstruction illustrates the growing pain very well

A 2010 Minnesota Supreme Court decision dealt specifically

with the application of responsiveness concepts to the I-35W

design-build project [Sayer v MN Deprsquot of Transp 790

NW2d 151 (Minn 2010)] After the award of a design-build

contract for reconstruction of the bridge disappointed offerors

protested They alleged that although the winning contractor

had the highest evaluation ratings the winnerrsquos proposal

was nonresponsive and should have been eliminated from

consideration They claimed that the winnerrsquos proposal had

deviated from the request for proposal (RFP) requirements

by planning to work outside of the right-of-way reserved for

construction and by using noncompliant concrete box designs

The court ultimately sustained the award but the reasoning

is particularly instructive The court of appeals (the appellate

court below the Minnesota supreme court) had held that the

common law definition of ldquoresponsivenessrdquo does not apply to

design-build Yet the majority on the Supreme Court proceeded

to analyze the issue as one of responsiveness undertaking

detailed analysis of the RFP specifications and concluding that

the winning contractorrsquos technical proposal did not deviate

from the requirements The chief justice of the court voted to

sustain the procurement decisions but in a concurring opinion

he used different reasoning He thought the case was squarely

focused on the application of responsiveness law to design-build

procurement In the chief justicersquos view the determination of

responsiveness had been committed by statute to the technical

review committee and was a function of the committeersquos

aggregated technical score not a microscopic examination

of technical compliance with individual RFP requirements

Thus in these kinds of procurements the construction

industry is facing the same kinds of questions arising out

of other complex service procurements [See ldquoResponsive

or notrdquo Government Procurement (FebMarch 2011)]

The use of competitive range determinations or ldquoshort

listingrdquo also highlights growing pains Last year two state courts

looked at their statutes governing construction and concluded

that short listing was not permitted as part of the competitive

negotiation process in design-build procurements [Brayman

Constr Corp v Commonwealth 30 A3d 560 (Pa Cmwlth

2011) OrsquoShea v New Jersey Schools Dev Auth A-3943-08T1

(NJ Sup Court April 7 2010)] These results discourage use

of a time-tested procurement process that permits exchange of

communications before award A government has neither the

time nor resources to engage in communication exchanges with

every responding offeror not reasonably in line for an award

Subcontractors may see a different relationship with

the government Historically in fixed price construction

the government owner had little formal relationship with

subcontractors and suppliers While statesrsquo statutes commonly

require payment bonds or retainage statutes may grant a

right to subcontractors or suppliers to file administrative

claims against final payment to the prime contractor (and

delay final settlement with the prime construction contractor

until the dispute is settled) governments otherwise stay out

of the prime-subcontractor relationship In some advanced

delivery contracts however the relationship with and

expectations of the subcontractor may be different A San

Diego subcontractor was permitted to file a protest against

the general contractor and city on a design-build contract

The subcontractor alleged that it should have been awarded

a subcontract by the general contractor The court permitted

the law suit characterizing the general contractor as a

ldquoconsultant to the cityrdquo [JT Wimsatt Contracting Co Inc v

City of San Diego D059276 (Cal App March 20 2012) In

traditional construction contracts subcontractors generally

do not have standing to bring this kind of action against the

owner challenging actions of the general contractor The

owner and subcontractor are not in ldquoprivityrdquo of contract

These cases highlight the importance of using sound selection

processes to clarify the expectations among the parties

A DIFFERENT KIND OF COLLABORATION

It takes an experienced public procurement professional

to be able to help draft the statement of work develop the

solicitation and then negotiate an equitable contract that

achieves overall good for the taxpaying public For many

leading edge projects mdash communication facilities modern

wastewater facilities hospitals schools and universities

public event facilities and even information technology

projects mdash choosing the most qualified contractors

with the best capabilities makes logical sense

Before selecting any alternative contract delivery method for

public construction consider your state or agency laws expected

outcomes of the project competition budgets and timelines

For emergencies and disasters in particular these kinds of

alternative delivery methods may provide more efficiently the

infrastructure improvements the public desperately needs

EDWARD J PABOR CPPO CDT CPM is currently the

stores supervisorbuyer for City of Eugene Ore Public Works

Department and NIGP Master Instructor

RICHARD PENNINGTON CPPO CPM JD LLM is an

NIGP Individual Member and NIGP Instructor He served as an

assistant attorney general (procurement and contract law and

litigation) and State Purchasing Director for the State of Colorado

He retired from the practice of public procurement law in 2010

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

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Public Schools Va

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Community College

District Ariz

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gt City of Bowling Green Ky

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gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

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gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 23: GovPro - April/May 2012

Millions of Parts Endless Solutions

BearingsHydraulics

PneumaticsHose

Hose FittingsRubber Products

Power TransmissionMaterial Conveyance

Services

US Communities contract 10119 publicly solicited and awarded by lead agency Maricopa County AZUS Communities membership requiredNo membership costs or registration fees

With 89 years of experience and 4 million parts wersquove helped maintenance managers reduce inventory costs by implementing our inventory management program Wersquove devised solutions to create more effi cient systems Wersquove extended the life of machinery by recommending a different bearing for the application And more You too can enjoy endless solutions to drive costs down by partnering with Applied Industrial Technologies and the US Communities Government Purchasing Alliance

For more information and to register go towwwAppliedcomuscommunities

or call 1-866-482-4145

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 24: GovPro - April/May 2012

24 | APRILMAY 2012

IN DEPTH [green purchasing]

Just released the new code is designed to complement not replace existing green building tools Will it move green building forward

A

sse

ssin

g the I

n

ternatio

nalG

re

en

Co

nstr

ucti

on Code

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

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savings are yours to keep Contact us today and start

making energy efficiency work for you

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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 25: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 25

On March 28 2012 the International

Green Construction Code (IgCC)

was offi cially released ending a

development process that lasted more

than two years and encompassed

thousands of volunteer hours by

dedicated professionals committed to furthering the green

building movement However the release of the IgCC

comes with almost as many questions as answers How will

state and local jurisdictions adopt the code Will it serve

to ultimately move the green building forward or simply

provide yet another tool in an increasingly full toolbox

Before answering these questions it is helpful to review

what the IgCC is and how it diff ers from the myriad other

well-known green building tools such as Leadership in Energy

and Environmental Design (LEED) from the US

Green Building Council (USGBC) and

Green Globes from the Green

Building Initiative (GBI)

Fundamentally

speaking the

IgCC looks

at very

similar criteria as more traditional tools such as

LEED Th ey both look at the environmental impact

of numerous categories including site energy water

indoor environmental quality and material usage Th e

diff erence is primarily in how they are applied

Th e most popular green building tools in the world (including

LEED) are points-based allowing users the fl exibility to choose

which credits to pursue based on their specifi c environmental

goals and budget Green codes conversely tend to have a

lower overall bar and the majority of credits are mandatory

Th ere are positives and negatives to both Th e more fl exible

rating systems incentivize users to achieve as many points

as possible thereby encouraging the incorporation and use

of more cutting-edge sustainability technologies However

because rating tools are points-based there is the possibility

for ldquogamingrdquo the system Th is involves installing a feature

or technology into a building simply to get the points even

if it does not have any real environmental benefi t to that

particular building or surrounding area Additionally because

of the fl exibility allowed by points-based tools two green

buildings in the same region could be substantially diff erent

from one another even though the buildings achieved a

similar number of points using the same rating system

As the IgCC is an actual building code it is written in

mandatory language so a minimum baseline must be

reached in each section Th is mandatory language is good

for helping raise the bar but typically does not encourage the

use of cutting-edge technology or new practices Th erefore

it is important that IgCC be adopted and used in a way

that is complementary to rating systems as opposed

to being used as an alternative or replacement

HOW WILL IGCC BE ADOPTED

Th e IgCC brings the promise of raising the bar and

making green building more accessible What is

still unknown and one of the primary hurdles is

how and when the code will be adopted by local

jurisdictions Code approvals and changes vary

by city and state depending on what the current

laws and regulations require An authority

having jurisdiction (AHJ) is the entity that has

responsibility for establishing minimum building

and fi re code standards as designated by current

statutory requirements Ultimately the success

of the IgCC will come down to how it is received

and implemented by AHJs across the country

As written the new code is not intended to be

adopted in its entirety by a given jurisdiction

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

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The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

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electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

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Page 26: GovPro - April/May 2012

26 | APRILMAY 2012

IN DEPTH [green purchasing]

Instead it is designed with the intention of allowing AHJs to

adopt the aspects of the IgCC that are most relevant for their

specifi c region Ideally this fl exibility will ensure that the

baseline is moved up while preventing the building code from

becoming burdensome and complicated for a typical building

Even though the IgCC was just recently released there

has already been signifi cant interest around the country

by jurisdictions who wish to adopt it In fact even prior

to its completion Rhode Island Maryland Oregon and

Florida passed some type of state legislation recognizing

the IgCC and encouraging its use Additionally numerous

cities have also gotten into the act by recognizing the

green code in some type of city ordinance or other policy

including Portland Ore Phoenix and Richland Wash

Interestingly with the exception of Phoenix (and neighboring

Scottsdale) none of these state or municipal jurisdictions has

actually adopted the IgCC as it was intended For example

the state of Florida added the IgCC as an option that can be

used when new publicly-funded buildings in the state are

built or retrofi tted Previously Florida had required that new

construction and major renovations must be certifi ed to LEED

Green Globes or any equivalent green building rating system

Now builders will have the option to use IgCC instead of the

rating systems to show compliance with the law However it

remains to be seen how this will actually be accomplished given

that rating systems such as LEED have a third party verifi cation

process in place to show compliance whereas the IgCC does not

WILL IGCC ACTUALLY MOVE GREEN BUILDING FORWARD

Th e obvious and primary goal of the IgCC is to move green

building forward by setting a minimum sustainability

baseline and building off of it However if the code is not

adopted and used as it was intended there is a possibility it

could actually hurt or slow the green building movement

And if the early-adopters are any indication that is a

very real possibility It appears as though the marketplace

currently views the IgCC as more of a competitor (or at least

alternative) to traditional green building tools such as LEED

As the code was developed to complement not replace

existing green building practices this confusion could be

detrimental to the overall green building movement

As we have seen the IgCC is written to provide each AHJ

the ability to adopt the specifi c sections of the code that are

most relevant to their region A number of factors determine

which criteria each AHJ adopts within a building code and

which criteria they leave out including what is economically

feasible Th erefore showing consistency among buildings

in various jurisdictions will be diffi cult if not impossible

A building in Portland that uses the IgCC could have very

diff erent environmental attributes than a building in New

York Th ey both may be technically built to the IgCC but that

will not necessarily mean they have a similar environmental

footprint Ensuring that the marketplace understands this

distinction will be critical to ensuring the success of the IgCC

Similarly it is extremely important that the marketplace

understand that just because a building is built to the IgCC

does not mean that is has the same environmental impacts

as a building certifi ed to a green building rating system (and

vice versa) In the Florida example above publicly funded

buildings must meet LEED Green Globes IgCC or another

equivalent green building rating system However while LEED

and Green Globes are similar points-based rating systems

with similar tiers of achievement the IgCC is essentially a

passfail with no third party assessment process unless it is

formally adopted into the jurisdictional building code If a

builder in Florida claims the building complies with IgCC as a

means to avoid getting a LEED certifi cation how will the state

verify compliance And since the code was not meant to be

adopted as is by any AHJ what specifi c criteria will be used

Th ese are important questions that need to be answered

before widespread adoption of the IgCC is achieved If the

marketplace continues to believe that the IgCC is simply another

competitor in the increasingly muddled green building fi eld

then the goal of moving the baseline up while still incentivizing

builders to push even higher will likely not be realized Instead

the IgCC could actually hurt the green building movement

Given the economy and the fact that new construction has

been slow to recover a green code that still complies with

existing requirements but is easier (and likely cheaper) to

achieve is an attractive option Th is will not help move the

green building marketplace forward Instead it may produce

a race to the middle (or even bottom) where builders are

incentivized to do just enough to comply with the baseline green

building code but have no reason to go above and beyond

As the green building marketplace continues to evolve and

mature we face the dilemma of how to move the minimum

baseline up without removing the incentives that have

pushed many builders to incorporate as many green building

technologies as possible Th e good news is that there is already

a lot of interest and the solution while complicated is not out

of reach Using the IgCC as the new baseline and ensuring that

all new construction projects have a least a minimum amount

of green features while still encouraging the marketplace to

go even further is the ultimate goal Th e tools are all in place

and available from green codes to green rating systems Now

we just have to make sure the right policies are put in place

so that these complementary pieces can all fi t together

MARK ROSSOLO is the director of public affairs for UL

Environment (ULE) He works on policy-related sustainability

issues for ULE and has extensive experience and expertise

working with green building codes standards and programs

This article is for general information purposes and is not

intended to convey legal or other professional advice

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 27: GovPro - April/May 2012

amp13amp)$ )ampamp)$ )$amp)$ amp)

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true 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false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () 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Page 28: GovPro - April/May 2012

28 | APRILMAY 2012

IN DEPTH [fl eet update]

Boosting fuel

effi ciencyTrucks and cars will use less fuel very soon thanks in part to a government-industry research program

uel effi ciency has always been a watchword

among government fl eets but thanks to

a massive research program launched by

the US Department of Energy (DOE)

nearly two years ago fuel economy for

light medium and heavy-duty trucks

should increase signifi cantly in the very near future

And it better because light trucks face new federal fuel

economy improvement mandates starting in 2016 that roll on

through 2025 while commercial vehicles must comply with

similar regulations beginning in 2014 on into 2018 (see sidebar)

Energy Secretary Steven Chu says manufacturers are on the

cusp of big breakthroughs in vehicle technologies Th at is why

the DOE is stepping up research and development partnership

eff orts such as SuperTruck a program that is helping fund

nine projects with $187 million in federal grants to improve

fuel effi ciency for heavy-duty trucks and passenger vehicles

FUNDING AIMS AT HEAVY DUTY

Chu unveiled the ldquoSuperTruckrdquo program two years

ago and three of the nine SuperTruck projects mdash

accounting for $115 million of the $187 million in

grants mdash will focus on increasing Class 8 long-haul

tractor fuel effi ciency by at least 50 percent by 2015

Th e four main manufacturers joining with DOE mdash Navistar

Peterbilt Motors Cummins Inc and Daimler Trucks North

America (DTNA) mdash are experimenting

with advanced aerodynamics engine idling

reduction technologies a waste heat recovery

system to increase engine effi ciency advanced

combustion techniques and powertrain hybridization

For example

Cummins will receive more than $388

million to work with Peterbilt to combine

a more effi cient diesel engine advanced

waste heat recovery system and fuel cell

auxiliary power unit to reduce engine idling

with an aerodynamic tractor and trailer combination

DTNA will get $395 million to focus on engine

downsizing electrifi cation of auxiliary systems such

as oil and water pumps waste heat recovery and

improved vehicle aerodynamics and hybridization

Navistar will receive $373 million to improve

truck and trailer aerodynamics combustion

effi ciency waste heat recovery hybridization idle

reduction and reduced rolling resistance tires

DOE offi cials noted that the total contract value

for the SuperTruck eff ort is approximately $270

million which includes DOE grants alongside

what its industry partners are spending

DOE expects 40 percent of the freight fuel effi ciency

improvements from the SuperTruck research to come from

By Sean Kilcarr

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 29: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 29

engine effi ciency improvements with the remaining 60

percent to come from other vehicle system design changes

such as aerodynamics use of more light weight components

and materials drivetrain friction reduction and wider

use of hybrid powertrain systems where smaller diesel

engines are combined with electric motors and batteries

Th e department expects that some of the new technologies

will begin to enter the market in about four years

New light vehicle fuel economy standards set

Last November the Environmental Protection Agency (EPA)

and the Department of Transportation (DOT) rolled out

the second stage of a joint rulemaking effort to set higher

miles-per-gallon (mpg) fuel economy and greenhouse gas

(GHG) pollution standards for passenger cars and light trucks

This latest regulatory proposal builds on the fi rst phase

(2012-2016) of the Obama administrationrsquos MPGGHG

program which it said will raise fuel effi ciency equivalent

to 355 mpg by 2016 and result in an average light-vehicle

tailpipe carbon dioxide (CO2) level of 250 grams per mile

Combined with 2011 fuel economy standards

and the standards in effect for 2012-2016 the latest

proposal represents the most signifi cant federal

action ever taken to reduce greenhouse gas emissions

and improve fuel economy the agencies said Taken

together the agencies said those actions would reduce

greenhouse gas emissions by half and result in model

year 2025 light-duty vehicles with nearly double the fuel

economy of model year 2010 light-duty vehicles

The two agencies also are imposing the fi rst of its

kind fuel effi ciency standards for commercial vehicles

to go into effect in stages between 2014 and 2018

The rules however impose different fuel effi ciency targets

based on the size and weight of the vehicle involved

Vocational vehicles mdash including delivery trucks buses

and garbage trucks mdash will be required to reduce fuel

consumption and greenhouse gas emissions by approximately

10 percent by model year 2018 The trucks could save

an average of 1 gallon of fuel for every 100 miles

For heavy-duty pickup trucks and vans separate standards

are required for gasoline-powered and diesel trucks The

vehicles will be required to achieve up to about a 15

percent reduction in fuel consumption and GHG emissions

by model year 2018 Under the fi nal standards a typical

gasoline or diesel-powered heavy-duty pickup truck or

van could save 1 gallon of fuel for every 100 miles

DOT and EPA noted that different measurements

will apply to each vehicle category For example heavy-

duty pickup trucks and vans must meet targets for

gallons of fuel consumed per mile as well as grams of

carbon dioxide (CO2) emissions per mile However

vocational vehicles must meet targets for gallons of

fuel consumed and GHG emissions per ton-mile

LIGHTER VEHICLE RESEARCH

Signifi cant change also is expected for light vehicles

through the SuperTruck program as six projects mdash

totaling more than $71 million in grants mdash are focused on

developing engine technologies that will improve the fuel

economy of passenger vehicles by 25 percent to 40 percent

by 2015 using an engine-only approach Th e projects

and funding being underwritten by DOE include

Chrysler Group received more than $144 million to

devise a fl exible combustion system for its minivan platform

based on a downsized turbocharged engine that uses

direct gasoline injection recirculation of exhaust gases

and fl exible intake air control to reduce emissions

Cummins received $15 million to develop a fuel-effi cient

low emissions diesel engine that achieves a 40 percent fuel

economy improvement over conventional gasoline technology

and signifi cantly exceeds 2010 EPA emissions requirements

Delphi Automotive Systems obtained more than $74

million to design a new low-temperature combustion

system coupled with technologies such as continuously

variable valve control and engine ldquodown-speedingrdquo

to improve fuel economy by at least 25 percent

Ford Motor got $15 million to achieve a 25 percent

fuel economy improvement with a gasoline engine in

a 2010 mid- to large-size sedan using technologies

including engine downsizing turbo-charging direct

injection and a novel exhaust aft er-treatment system

If breakthroughs developed by the entire program mdash for

heavy-duty trucks and light vehicles alike mdash are adopted

broadly across the country they could save more than

100 million gallons of gasoline and diesel per day and

reduce carbon emissions from on-road vehicles by 20

percent by 2030 says Ramin Younessi Navistar group

vice president for product development and strategy

Near term however he believes ongoing work with

composite materials and new aluminum components

will be more rapidly applied to current truck designs as

well as aerodynamic advances to help vehicle makers

improve fuel economy ahead of the federal mandates

ldquoTh e improvements we strive to achieve will not come in

leaps for the most part but will be the sum of many smaller

but important measuresrdquo says Elmar Boeckenhoff DTNArsquos

senior vice president for engineering and technology

In the end the cost of the new technology could be

biggest challenge the participants in the SuperTruck

project must surmount says Wayne Eckerle vice

president for research and development at Cummins

ldquoOur biggest technical challenge is really getting the

costs for any and all of the technologies and systems wersquore

working on down to where the fl eets will want to buy themrdquo

he says ldquoTh ey need to be durable and reliable of course

but in the end they must off er a way to reduce total cost of

ownership in order for the customer to use themrdquo

SEAN KILCARR is senior editor for Fleet Owner

a Government Procurement sister publication

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 30: GovPro - April/May 2012

30 | APRILMAY 2012

Your efforts and membership

have contributed to our

legacy building a world in

which public procurement

practitioners are highly

regarded members of a

respected professional order

Celebrating 60 Years

gt City of Owensboro Ky

Celebrating 55 Years

gt Virginia Department

of General Services

gt Virginia Department

of Transportation ndash

Central Office

Celebrating 50 Years

gt Old Dominion University Va

gt City of Rockford Ill

gt Baltimore County Md

gt City of Salisbury Md

gt Tulsa Public Schools

ISD 1 Okla

gt City of West Palm Beach Fla

Celebrating 45 Years

gt Hillsborough County

Department of

Procurement Services Fla

gt City of Aurora Ill

Celebrating 40 Years

gt Kauai County Hawaii

gt City of Allentown Pa

gt Village of Glenview Ill

gt City of Wilmington Del

Celebrating 35 Years

gt City of Cheyenne Wyo

gt Manatee County Fla

gt St Lucie County Fla

gt City of Lake Charles La

gt State of Mississippi Miss

gt Shelby County

Government Tenn

gt District School Board

of Pasco County Fla

gt Albermarle County Va

gt Arlington County

Public Schools Va

gt State of Idaho Idaho

gt City of Charlottesville Va

gt Maricopa County

Community College

District Ariz

gt City of Oneonta NY

gt Pulaski County Ark

gt City of Bowling Green Ky

gt City of Naples Fla

gt Coconino County Ariz

gt City of Kansas City Mo

gt Alachua County Board

of Commissioners Fla

gt Pennsylvania Turnpike

Commission Pa

gt City of Wheaton Ill

gt City of Greenville Texas

gt Village of Elk Grove Ill

gt City and Borough

of Juneau Alaska

gt Beaufort County SC

gt City of Hollywood Fla

gt City of Yuma Ariz

gt Hanover County Va

gt City of Scottsdale Ariz

Celebrating 30 Years

gt Jefferson County Public

Schools Colo

gt Detroit Water amp

Sewerage Department

gt City of Hurst Texas

gt City of Kingsport Tenn

gt City of Albuquerque NM

gt Maryland Department

of Transportation

gt City of Houston

Administration amp

Regulatory Affairs Texas

gt King County Wash

gt Laramie County

Community College Wyo

gt City of Grande Prairie

Alberta Canada

gt Prince William County Va

gt South Carolina Department

of Natural Resources SC

gt Medical University of

South Carolina

gt City of Cortez Colo

gt University of Maryland

at College Park Md

gt City of Chesapeake Va

gt City of Columbia SC

gt Placer County Calif

gt City of Winter Park Fla

Celebrating 25 Years

gt Morris County NJ

gt Dallas Area Rapid

Transit Texas

gt City of Fort Smith Ark

gt Kentucky Department

of Parks Ky

gt University of Mary

Washington Va

gt City of Beaumont Texas

gt Virginia Beach City

Public Schools Va

gt City of Valdosta Ga

gt City of Roswell Ga

gt Muscogee County

School District Ga

gt Missouri Southern

State University Mo

gt Orange County Texas

gt Summit County

BMRDD Ohio

gt Pellissippi State Tech

Community College Tenn

gt Columbia Public

School District Mo

gt City of La Porte Texas

gt City of Longwood Fla

gt Eau Clair City county

Purchasing Wis

gt City of Las Cruces NM

gt Clacasieu Parish

Police Jury La

gt Lee County Board of

Commissioners Fla

gt Texas Department of

Transportation Texas

gt School Board of

Broward County Fla

gt Charleston Commissioners

of Public Works SC

gt South Florida Water

Management District Fla

gt Kansas City Police

Department Mo

gt Spokane County Wash

gt Dakota County Minn

gt Gloucester County Va

gt Miami Dade College Fla

gt Miami Dade School

Board Fla

gt University of Miami Fla

gt City of Topeka Kan

gt City of Punta Gorda Fla

gt City Utilities of

Springfield Mo

gt St Vrain Valley School

District Colo

gt City of Leersquos Summit Mo

gt County of Lexington SC

gt City of Port St Lucie Fla

gt Hall County Board of

Commissioners Ga

gt New Castle County Del

gt Delaware River Port

Authority NJ

gt City of Steamboat

Springs Colo

gt Austin Community

College District Texas

gt Kentucky Transportation

Cabinet Ken

gt Prince William County

Public Schools Va

gt Philadelphia School

District Pa

gt Comal County Texas

gt Florida Department of

Financial Services Fla

gt Multnomah County

Purchasing Ore

NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES

RESOURCES [anniversaries]

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 31: GovPro - April/May 2012

wwwgovprocom bull GOVERNMENT PROCUREMENT | 31

RESOURCES [calendar of events]

ADVERTISER INDEX

FACE-2-FACE COURSES

JULY

Change Management for the Procurement ProfessionalDate July 26-27Location Longmont ColoInstructor Leslie Vallie CPPOHosted by Rocky Mountain Governmental Purchasing Association Chapter of NIGP

Contracting for Construction ServicesDate July 16-17Location Phoenix ArizInstructor Edward Pabor CPPO CDT CPMHosted by Arizona State Capitol Chapter of NIGP

Developing and Managing RFPsDate July 11-13Location Ocala FlaInstructor Bobbye Marsala CPPO CPPB CPMHosted by North Central Florida Chapter of NIGP

Developing and Managing RFPsDate July 18-20Location Lakewood OhioInstructor Elizabeth Lowe CPPBHosted by Central Ohio Organization of Public Purchasers Chapter of NIGP

Effective Contract WritingDate July 10-11Location Indianapolis IndInstructor Michael Kolodisner CPPOHosted by Indiana Chapter of NIGP

Introduction to Public ProcurementDate July 16-18Location Portland OreInstructor Robin Rickard CPPO OPBCHosted by Oregon Public Purchasing Association Inc Chapter of NIGP

Legal Aspects of Public PurchasingDate July 10-12Location Baton Rouge LaInstructor Ronald King CPPO CPPB VCOHosted by Louisiana Chapter of NIGP

Performance Based Requests for ProposalsDate July 19-20Location Winter Park FlaInstructor John Miller CPPOHosted by Central Florida Chapter of NIGP

Strategic Procurement PlanningDate July 11-13Location Linthicum MdInstructor Tony Reed CPPOHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Strategic Procurement PlanningDate July 23-25Location Ames IowaInstructor Barbara Johnson CPPO CPPBHosted by Iowa Public Procurement Association Inc Chapter of NIGP

AUGUST

Alternative Dispute ResolutionDate Aug 27-28Location Linthicum MdInstructor Kenneth Hayslette CPPO CPM CPCMHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Contract AdministrationDate Aug 8-10Location Linthicum MdInstructor Steven Updike CPPB FCPA FCCM FCNHosted by Maryland Public Purchasing Association Inc Chapter of NIGP

Advertiser Page

Applied Industrial Technologies 23

E-Z GO 13

Fair Manufacturing Inc 31

Ford Motor Company 17

Grainger 3

Imaging Supplies Coalition 5

Intirion-MicroFridge 19

John Deere IFC

Liftmoore Inc 15

Mastercard International 6 7

Public Sourcing Solutions 11

Siemens BC

Staples Advantage 18

Toyota IBC

US Communities 9

ONLINE COURSES

JULY ndash AUGUST

CPPB Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Bill Hertwig CPPO CPPB CPM APP

CPPO Online PrepDate Wednesday July 11 ndash Wednesday Aug 15Instructor Rob Rickard CPPO OPBC

7KH6QRFUHWHQDPHZDVDGRSWHGE

)DLU0IJQFDVDZRUGXVHGWRGH

VFULEHWKHVQRZRIWKHDNRWDV$Q

VQRZEORZHUFDQEORZOLJKWIOXII

VQRZEXW6QRFUHWH6QRZEORZHUVDUH

HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ

DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL

WLRQVH[SHFWHGRIWKHP

7KH6QRFUHWHOLQHLVDYDLODEOHLQD

YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ

LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH

ZK6QRFUHWH6QRZEORZHUVDUHWUXO

WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ

EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU

ZHEVLWHWRGD

32R[

0HQQR6

VDOHVIDLUPIJFRP

ZZZIDLUPIJFRP

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 32: GovPro - April/May 2012

32 | APRILMAY 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 fmarksmindspringcom

Facts lies and negotiationsarin Matthews and I have had an ongoing discussion about negotiation tactics for

several years He raised an interesting question recently about ldquoHow do you know

if someone is lyingrdquo I think the real answer is that someone always is but itrsquos your job as a

professional to determine to what extent the lying takes place We all stretch the facts a bit in

negotiation I have always maintained that I ldquopaint with a broad brushrdquo but I never outright

lie or deceive I donrsquot think thatrsquos what a representative of a public body should ever do

The more I thought about the question the more I realized there is no one answer

itrsquos a combination of feelings facts and intangibles Unless there is an outright

statement such as ldquothe sky is a lovely shade of mauve todayrdquo (whatever mauve is)

and itrsquos bright blue then you have to depend on your professional training

First do your research Find out everything you can about your opposite number and their

company Do they use aggressive tactics as a routine or is it just the person on the other side of the

table What is their position in the marketplace Are they leaders or just entering into a particular

area of specialization Do any of your colleagues have experience with them Have you had their

financials reviewed by someone who can give you an opinion about their financial health

Now comes the tough part the intangibles Look at their body language Are their arms crossed

do they look you in the eye when they speak to you do they talk down to you or are condescending

in their tone Professional language is important Irsquove never liked bullying tactics or yelling It

shows a lack of respect If someone says ldquotrust merdquo I generally donrsquot

Do they use exaggerated responses like gasping for air or a phony sense

of shock Do they flinch when you say something Professional attire and

demeanor are also important Do you feel comfortable in their presence

Do they agree with everything you say All negotiations are like

two tectonic plates rubbing against each other looking for a common

ground When things go too easily I suspect something is wrong

Old adage ldquoIf it looks too good to be true it usually isrdquo

Do they use techniques such as ldquogood cop bad coprdquo The best way

to defuse that is to say something like ldquoI think I saw this in a James

Cagney black-and-white movie from the 1930rsquos Yoursquore not really

trying this are yourdquo That should send a strong signal to them

Do they try to impose artificial deadlines on you ldquoThis will come to a complete

halt if we donrsquot reach an agreement by ____rdquo Frankly the world will not come

to an end if you donrsquot reach an agreement by a certain time Do they use terms

like ldquotake it or leave itrdquo Thatrsquos just a bluff and I love to call them on that The way to counter that

is to keep questioning why they ask that and what you want to do is flush out why they did that

Never let your emotions show unless itrsquos with a purpose Keep a calm demeanor unless

you want to send a very strong signal to the other party And donrsquot walk out The reality

is that you have to go back in at some point and you donrsquot want to look foolish doing

it Find a reason to take a break (ldquoI think we could all do with a break lets come back

in 15 minutesrdquo) That will give you and your team a chance to talk things over

Irsquom just scratching the surface about the topic Put this on your list of things to talk about at

staff meetings take a course do practice negotiations talk to people who are successful at it

Most of them are honest frank and forthright people who want to accomplish something

And practice until you are mauve in the face itrsquos the only way to get better

D

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 33: GovPro - April/May 2012

Prototype shown with options Production model will vary 1 Prius Plug-in EV mode works under certain conditions up to near freeway speeds for approximately 10-15 miles on a full charge Sudden acceleration or climate control usage may prevent EV mode usage 2 CAUTION When driving a hybrid vehicle pay special attention to the area around the vehicle Because there is little vehicle noise in electric-only mode pedestrians people riding bicycles or other people and vehicles in the area may not be aware of the vehicle starting off or approaching them so take extra care while driving copy2011 Toyota Motor Sales USA Inc

there hasnrsquot been a

fleet vehicle like this since

well today

The Prius Plug-in is the most advanced member of the Prius Family

combining an extended all-electric mode12

with proven hybrid

technology You also get the convenience of plug-in charging with rapid recharge times 3 hours

with a standard 120V household outlet or 15 hours with a 240V outlet The ability to choose between

electric and hybrid gives people the freedom to drive more see more and do more Itrsquos a new kind

of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice

Page 34: GovPro - April/May 2012

Answers for infrastructure

wwwusasiemenscom

Saving energy shouldnrsquot

mean depleting capitalLet Siemens fund your facility improvements with energy savings

Aging equipment sustainability goals and rising

operational costs can add to the pressure to make

energy upgrades And finding capital to fund the

improvements can be almost impossible How

can you finance upgrades without capital funds

Siemens can help you do more with less With

Siemens performance-based contracts improvements

are funded by the very energy savings they produce

This means you can immediately start state-of-the-art

equipment upgrades Our professionals build custom

solutions to help you lower your operating expenses and

reach sustainability goals Plus Siemens guarantees 0

capital expense to you If energy-saving goals are not

met Siemens pays the difference And 100 of excess

savings are yours to keep Contact us today and start

making energy efficiency work for you

ltlt ASCII85EncodePages false AllowTransparency false AutoPositionEPSFiles true AutoRotatePages All Binding Left CalGrayProfile (Dot Gain 20) CalRGBProfile (sRGB IEC61966-21) CalCMYKProfile (US Web Coated 050SWOP051 v2) sRGBProfile (sRGB IEC61966-21) CannotEmbedFontPolicy Warning CompatibilityLevel 14 CompressObjects Off CompressPages true ConvertImagesToIndexed true PassThroughJPEGImages true CreateJobTicket false DefaultRenderingIntent Default DetectBlends true DetectCurves 01000 ColorConversionStrategy sRGB DoThumbnails false EmbedAllFonts true EmbedOpenType false ParseICCProfilesInComments true EmbedJobOptions true DSCReportingLevel 0 EmitDSCWarnings false EndPage -1 ImageMemory 1048576 LockDistillerParams false MaxSubsetPct 100 Optimize true OPM 1 ParseDSCComments true ParseDSCCommentsForDocInfo true PreserveCopyPage true PreserveDICMYKValues true PreserveEPSInfo false PreserveFlatness false PreserveHalftoneInfo false PreserveOPIComments false PreserveOverprintSettings true StartPage 1 SubsetFonts false TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 300 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 150 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 300 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 076 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 015 HSamples [1 1 1 1] VSamples [1 1 1 1] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 30 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 1200 MonoImageMinResolutionPolicy OK DownsampleMonoImages false MonoImageDownsampleType Average MonoImageResolution 1200 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly true PDFXNoTrimBoxError false PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile (US Web Coated 050SWOP051 v2) PDFXOutputConditionIdentifier (CGATS TR 001) PDFXOutputCondition () PDFXRegistryName (httpwwwcolororg) PDFXTrapped False CreateJDFFile false Description ltlt ENU (Penton Media PDF Digital Edition) gtgt ExportLayers ExportVisiblePrintableLayers Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector WorkingRGB Downsample16BitImages true FlattenerPreset ltlt ClipComplexRegions false ConvertStrokesToOutlines true ConvertTextToOutlines false GradientResolution 300 LineArtTextResolution 2400 PresetName (Penton Flattener Preset) PresetSelector UseName RasterVectorBalance 1 gtgt FormElements false GenerateStructure false IncludeBookmarks false IncludeHyperlinks true IncludeInteractive true IncludeLayers false IncludeProfiles true MarksOffset 12 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector UseName PageMarksFile RomanDefault PreserveEditing true UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [300 300] PageSize [612000 792000]gtgt setpagedevice