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Leveraging Choice in Procurement
When are cooperative agreements right for my organization?
Presented byDuff Erholtz Dave DuhnManager of Membership Services Lead Contract Manager
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Today’s Agenda….
WHAT WE HOPE TO COMMUNICATE
When are Cooperative agreements right for youWhere it began – Why is it changing? Evolving?How are they tools in your procurement tool belt?Dealing with reductions in – staff – budgets - timeEvaluating cooperative agreementsCase StudiesFeedback from the audience
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But first…
Who are we? A Municipal Contracting Agency
Established under Minnesota Statute 123A.21Enabled by Minnesota Statute 471.59 (Joint Powers Law)Follow Uniform Municipal Contracting Law under Minnesota Statute 471.345
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And more importantly, who are you?!
How long have you been in procurement?
How much experience do you have with Cooperative agreements?
Will this be Cooperative Purchasing 101? Or 501?
What is a Cooperative Agreement?
Lets Define:
Local
Regional
National
History of Cooperative Agreements…
1)Where it all began
2)Why it is changing…Evolving?!
3)What does the future hold
COOPERATIVE AGREEMENTS ARE TOOLS IN YOUR
PROCUREMENT TOOL BELT!
WHY MIGHT I NEED TOOLS?
1)Reduced staff
2)Reduced budgets
3)Time constraints – “I need it now!”
WHY MIGHT I NEED TOOLS?
1) Lack of expertise – writing and evaluating the RFP/IFB
2) New to the Profession of procurement! Use the Coop’s to “stay afloat” until you learn to swim!
WHY MIGHT I NEED TOOLS?
What adversity are you now facing in your job – time, lack of support, lack of resources, etc…that is FORCING you to seek new ways to …
“GET ER DONE…”
Have you ever been burned by “low bid”?
Brand preferenceDealer preferenceLife cycle costingLocal preference (dealer!)More subjective reasons?
IS IT POSSIBLE TO HAVE TOO MANY CHOICES?
IF Choice Breeds Competition…
Start With The Actual Contract!
Evaluating Cooperative Agreements
Evaluating Cooperative Agreements
Written With Cooperative Language?
Evaluating Cooperative Agreements
Source of The Contract
TO BID, OR NOT TO BID…WHEN IS THE
QUESTION?
Reinvent The Wheel -vs-
Choose A Cooperative Agreement
70% OF WHAT Cory HarmsPURCHASES, EVERY ONE OF
YOU PURCHASE!
Focus on the 30% that are unique to your organization
WHAT ARE ADDITIONAL BENEFITS OF UTILIZING
COOPERATIVE AGREEMENTS?
1) CLOUT! Leverage your spend in the
marketplace
2) Reduction of processing expense and time
3) Matching supply to demand
4) Improving customer service…
(YES! Our departments are customers!)
Case Study #1
Large University
Technology contract about to expire
Current vendor has contract solution
Case Study #2
Municipal
Decides to only shop contract solution(s)
“Bake-off” of major national contracts
Case Study #3
City
Wants to purchase off contract
Items to be purchased are NOT on contract
Purchase would be solely “sourced goods”
Case Study #4
University
Initially tries to NOT go to RFP and just compare contract solutions
Feels local pressure to go to bid
At Pre-Bid 40+ vendors attend
Now believes contract is “best” solution
Case Study #5
K-12 school
Natural disaster destroys playground
60 days until school starts
Purchases off contract
Case Study #6
K-12 school
Complicated technology solution for multiple locations
Unsure of the scope of the ongoing project
Selects contract solution to assure pricing containment for ongoing implementation
Case Study #7
City
State has contract
Items to be purchased NOT on state contract
Contract solution used as a “gap filler”
Let’s hear from you…
So what did we learn?
Contract Purchasing
Saves time?
Saves money?
Leverage expertise of others?
Avoids struggle(s) with “lowest responsible bidder”?
Allows “CHOICE”?
More questions?
Don’t hesitate to reach out.
Duff ErholtzManager of Membership Office 218.894.5490Cell [email protected]
David DuhnLead Contract Manager Office: 218.894.5469Cell: [email protected]
