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The official publication of NIGP.
Citation preview
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]
copy2012 MasterCard
A benefits card
with extra benefits
MasterCardreg prepaid
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disbursement costs
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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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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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gt Baltimore County Md
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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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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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Community College
District Ariz
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of Commissioners Fla
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Commission Pa
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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
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of Transportation
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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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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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Transit Texas
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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
gt City of Longwood Fla
gt Eau Clair City county
Purchasing Wis
gt City of Las Cruces NM
gt Clacasieu Parish
Police Jury La
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Commissioners Fla
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Transportation Texas
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Broward County Fla
gt Charleston Commissioners
of Public Works SC
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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
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Public Schools Va
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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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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
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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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with extra benefits
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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
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gt City of Charlottesville Va
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Community College
District Ariz
gt City of Oneonta NY
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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
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
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of Prius And itrsquos just the right vehicle for your fleet Call 1-800-732-2798 or visit fleettoyotacom
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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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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
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credit card) to Penton Media Customer Service Government
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847-763-9673 e-mail governmentprocurementhalldatacom or
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phone 734-302-6500 or 800-420-6272 ext 6578
LIST RENTALS To rent circulation lists of Government
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COPYING Permission is granted to users registered with the
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of the article plus 60 cents per page paid directly to CCC 222
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$125 + 60)
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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
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of General Services
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Celebrating 30 Years
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of Transportation
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Administration amp
Regulatory Affairs Texas
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Alberta Canada
gt Prince William County Va
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of Natural Resources SC
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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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of Parks Ky
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Public Schools Va
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gt City of Roswell Ga
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School District Ga
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Police Jury La
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Management District Fla
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Department Mo
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Board Fla
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District Colo
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gt City of Port St Lucie Fla
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Commissioners Ga
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Authority NJ
gt City of Steamboat
Springs Colo
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District Pa
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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
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VQRZEXW6QRFUHWH6QRZEORZHUVDUH
HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ
DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL
WLRQVH[SHFWHGRIWKHP
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YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ
LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH
ZK6QRFUHWH6QRZEORZHUVDUHWUXO
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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
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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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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
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
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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
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of General Services
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of Natural Resources SC
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Celebrating 25 Years
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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
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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
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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
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
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with extra benefits
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disbursement costs
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bull On-time payments and
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at millions of locations
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bull No bank account required
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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
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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
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Procurement Services Fla
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Celebrating 35 Years
gt City of Cheyenne Wyo
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of Pasco County Fla
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of Commissioners Fla
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Commission Pa
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of Juneau Alaska
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gt Hanover County Va
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Celebrating 30 Years
gt Jefferson County Public
Schools Colo
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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
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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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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
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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bull On-time payments and
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bull No bank account required
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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
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Flooring
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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
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
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gt City of Charlottesville Va
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Community College
District Ariz
gt City of Oneonta NY
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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
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
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The Prius Plug-in is the most advanced member of the Prius Family
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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
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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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
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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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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
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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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gt Baltimore County Md
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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
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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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Community College
District Ariz
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of Commissioners Fla
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Commission Pa
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gt City and Borough
of Juneau Alaska
gt Beaufort County SC
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gt City of Yuma Ariz
gt Hanover County Va
gt City of Scottsdale Ariz
Celebrating 30 Years
gt Jefferson County Public
Schools Colo
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Sewerage Department
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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
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Alberta Canada
gt Prince William County Va
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of Natural Resources SC
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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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Transit Texas
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of Parks Ky
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Washington Va
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Public Schools Va
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gt City of Roswell Ga
gt Muscogee County
School District Ga
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State University Mo
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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
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Transportation Texas
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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
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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
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Public Schools Va
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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
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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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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
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
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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
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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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gt City of Charlottesville 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
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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
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of Natural Resources SC
gt Medical University of
South Carolina
gt City of Cortez Colo
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at College Park Md
gt City of Chesapeake Va
gt City of Columbia SC
gt Placer County Calif
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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
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
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Services
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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
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
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gt City of Charlottesville Va
gt Maricopa County
Community College
District Ariz
gt City of Oneonta NY
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gt City of Bowling Green Ky
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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
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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
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well today
The Prius Plug-in is the most advanced member of the Prius Family
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with proven hybrid
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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
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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 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 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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
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
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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 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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
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
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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 45 Years
gt Hillsborough County
Department of
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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Community College
District Ariz
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of Commissioners Fla
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Commission Pa
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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
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Sewerage Department
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of Transportation
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Administration amp
Regulatory Affairs Texas
gt King County Wash
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Community College Wyo
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Alberta Canada
gt Prince William County Va
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of Natural Resources SC
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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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Transit Texas
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of Parks Ky
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Washington Va
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Public Schools Va
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gt City of Roswell Ga
gt Muscogee County
School District Ga
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State University Mo
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BMRDD Ohio
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Community College Tenn
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School District Mo
gt City of La Porte Texas
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gt Eau Clair City county
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
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Management District Fla
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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
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gt City Utilities of
Springfield Mo
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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
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Cabinet Ken
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District Pa
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Financial Services Fla
gt Multnomah County
Purchasing Ore
NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES
RESOURCES [anniversaries]
wwwgovprocom bull GOVERNMENT PROCUREMENT | 31
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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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VQRZEORZHUFDQEORZOLJKWIOXII
VQRZEXW6QRFUHWH6QRZEORZHUVDUH
HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ
DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL
WLRQVH[SHFWHGRIWKHP
7KH6QRFUHWHOLQHLVDYDLODEOHLQD
YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ
LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH
ZK6QRFUHWH6QRZEORZHUVDUHWUXO
WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ
EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU
ZHEVLWHWRGD
32R[
0HQQR6
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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
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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
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
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of General Services
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Celebrating 30 Years
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of Transportation
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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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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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of Parks Ky
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Washington Va
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Public Schools Va
gt City of Valdosta Ga
gt City of Roswell Ga
gt Muscogee County
School District Ga
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State University Mo
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Police Jury La
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of Public Works SC
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Management District Fla
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Department Mo
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Board Fla
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gt City of Port St Lucie Fla
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Commissioners Ga
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Authority NJ
gt City of Steamboat
Springs Colo
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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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VQRZEXW6QRFUHWH6QRZEORZHUVDUH
HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ
DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL
WLRQVH[SHFWHGRIWKHP
7KH6QRFUHWHOLQHLVDYDLODEOHLQD
YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ
LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH
ZK6QRFUHWH6QRZEORZHUVDUHWUXO
WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ
EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU
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32R[
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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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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
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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
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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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
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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
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
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of General Services
gt Virginia Department
of Transportation ndash
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Celebrating 50 Years
gt Old Dominion University Va
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gt Baltimore County Md
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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
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gt State of Mississippi Miss
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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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Community College
District Ariz
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gt City of Kansas City Mo
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of Commissioners Fla
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Commission Pa
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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
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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
gt South Carolina Department
of Natural Resources SC
gt Medical University of
South Carolina
gt City of Cortez Colo
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at College Park Md
gt City of Chesapeake Va
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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
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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
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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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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
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gt City Utilities of
Springfield Mo
gt St Vrain Valley School
District Colo
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Commissioners Ga
gt New Castle County Del
gt Delaware River Port
Authority NJ
gt City of Steamboat
Springs Colo
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College District Texas
gt Kentucky Transportation
Cabinet Ken
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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
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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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
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have contributed to our
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BMRDD Ohio
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Purchasing Wis
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Police Jury La
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gt Charleston Commissioners
of Public Works SC
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Management District Fla
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Department Mo
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Board Fla
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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
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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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
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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 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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
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
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of General Services
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of Transportation ndash
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of Natural Resources SC
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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
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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
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with proven hybrid
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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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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 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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 City of Kansas City Mo
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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
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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
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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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
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Celebrating 50 Years
gt Old Dominion University Va
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ISD 1 Okla
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Celebrating 45 Years
gt Hillsborough County
Department of
Procurement Services Fla
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Celebrating 35 Years
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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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Community College
District Ariz
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of Commissioners Fla
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Commission Pa
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of Juneau Alaska
gt Beaufort County SC
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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
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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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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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Transit Texas
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of Parks Ky
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Washington Va
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Public Schools Va
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BMRDD Ohio
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gt Eau Clair City county
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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of Public Works SC
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Department Mo
gt Spokane County Wash
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gt Miami Dade School
Board Fla
gt University of Miami Fla
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gt City Utilities of
Springfield Mo
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District Colo
gt City of Leersquos Summit Mo
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gt City of Port St Lucie Fla
gt Hall County Board of
Commissioners Ga
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gt Delaware River Port
Authority NJ
gt City of Steamboat
Springs Colo
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College District Texas
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Cabinet Ken
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District Pa
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Financial Services Fla
gt Multnomah County
Purchasing Ore
NIGP RECOGNIZES MILESTONE AGENCY ANNIVERSARIES
RESOURCES [anniversaries]
wwwgovprocom bull GOVERNMENT PROCUREMENT | 31
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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
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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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VFULEHWKHVQRZRIWKHDNRWDV$Q
VQRZEORZHUFDQEORZOLJKWIOXII
VQRZEXW6QRFUHWH6QRZEORZHUVDUH
HQJLQHHUHGWRPRYHWKHKDUGHVWVQRZ
DQGLFHDQGHQGXUHWKHKDUVKHVWFRQGL
WLRQVH[SHFWHGRIWKHP
7KH6QRFUHWHOLQHLVDYDLODEOHLQD
YDULHWRIVL]HVHDFKIHDWXULQJWZLQIDQ
LPSHOOHUVZLWKLFHFKRSSHUEDUV7RVHH
ZK6QRFUHWH6QRZEORZHUVDUHWUXO
WKHEHVWEXLOWDQGSHUIRUPLQJVQRZ
EORZHUVRQWKHPDUNHWFDOORUYLVLWRXU
ZHEVLWHWRGD
32R[
0HQQR6
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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
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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
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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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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
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Procurement Services Fla
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Celebrating 35 Years
gt City of Cheyenne Wyo
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of Pasco County Fla
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of Commissioners Fla
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Commission Pa
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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
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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
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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
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gt City of Longwood Fla
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Purchasing Wis
gt City of Las Cruces NM
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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
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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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
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mean depleting capitalLet Siemens fund your facility improvements with energy savings
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
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
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of General Services
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of Transportation ndash
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gt Old Dominion University Va
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ISD 1 Okla
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Department of
Procurement Services Fla
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gt City of Cheyenne Wyo
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of Pasco County Fla
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Commission Pa
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of Juneau Alaska
gt Beaufort County SC
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gt City of Yuma Ariz
gt Hanover County Va
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Celebrating 30 Years
gt Jefferson County Public
Schools Colo
gt Detroit Water amp
Sewerage Department
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of Transportation
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Administration amp
Regulatory Affairs Texas
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Community College Wyo
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Alberta Canada
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Celebrating 25 Years
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of Parks Ky
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Washington Va
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Public Schools Va
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State University Mo
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BMRDD Ohio
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School District Mo
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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
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Management District Fla
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Department Mo
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Board Fla
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Springfield Mo
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District Colo
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Commissioners Ga
gt New Castle County Del
gt Delaware River Port
Authority NJ
gt City of Steamboat
Springs Colo
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College District Texas
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Cabinet Ken
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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 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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
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
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
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
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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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gt Baltimore County Md
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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
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gt State of Mississippi Miss
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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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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
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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
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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
gt City of Cortez Colo
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at College Park Md
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Celebrating 25 Years
gt Morris County NJ
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Transit Texas
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of Parks Ky
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Washington Va
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Public Schools Va
gt City of Valdosta Ga
gt City of Roswell Ga
gt Muscogee County
School District Ga
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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
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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
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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
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
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
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gt City of Charlottesville Va
gt Maricopa County
Community College
District Ariz
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gt Pulaski County Ark
gt City of Bowling Green Ky
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of Commissioners Fla
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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
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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
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of Natural Resources SC
gt Medical University of
South Carolina
gt City of Cortez Colo
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at College Park Md
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gt City of Columbia SC
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Celebrating 25 Years
gt Morris County NJ
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Transit Texas
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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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This means you can immediately start state-of-the-art
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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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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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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
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with proven hybrid
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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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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
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
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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
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
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[
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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
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
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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 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
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gt City of Charlottesville Va
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Community College
District Ariz
gt City of Oneonta NY
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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
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
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of Natural Resources SC
gt Medical University of
South Carolina
gt City of Cortez Colo
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at College Park Md
gt City of Chesapeake Va
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gt Placer County Calif
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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
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
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
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
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
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
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
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