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Introduction to Cooperative Purchasing and HGACBuy T he H-GAC Cooperative Purchasing Program. What is Cooperative Purchasing?. Consortium or Group Buying pooling the purchasing needs to achieve better value through: Lower prices Increased response Efficient use of time & resources

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Introduction to Cooperative Purchasing and HGACBuy T he H-GAC Cooperative Purchasing Program

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Introduction to cooperative purchasing and hgacbuy t he h gac cooperative purchasing program

Introductionto Cooperative Purchasingand HGACBuyThe H-GAC Cooperative Purchasing Program

What is cooperative purchasing

What is Cooperative Purchasing?

  • Consortium or Group Buying pooling the purchasing needs to achieve better value through:

    • Lower prices

    • Increased response

    • Efficient use of time & resources

    • Effective application of expertise

Models of cooperative purchasing

Models of Cooperative Purchasing


Collaborative Model

Third-Party Model

Hybrid Models

Collaborative model

Collaborative Model

  • Multiple entities join together

  • Use of joint bids

  • Lead agencies take turns bidding

  • Use of standardized specifications

  • Commodity procurement more common

  • Better done locally or regionally

Third party model

Third-Party Model

  • One entity bids term contracts

  • All other entities purchase off the contracts

  • The third-party may not be a user

  • Flexibility through multiple configurations

  • Less input from end user agencies

  • Third-party may charge fee for operations

Hybrid models

Hybrid Models

  • Combines aspects of Collaborative & Third-party models

  • Use of host entity

  • Use of shared responsibilities through lead agencies

  • Piggy-backing is less formal

Model comparison

Collaborative Model

Administrative work shared

No fees

Specific purchase

Local/regional based

More member control

Third-party Model

Host program handles administration

Typically charges fees

Blanket/term contracts

Not locally tied

Less control over procurement process

Model Comparison

Analyzing a cooperative purchasing program

Analyzing a Cooperative Purchasing Program

  • Decisions must be made on which cooperative contract to utilize

    • Procurement process

    • Fees

    • Structure of program

    • Flexibility

What is h gac


  • The Houston-Galveston Area Council is a Council of Governments and a Political Sub-division of the state of Texas.

  • H-GAC began with an Interlocal Agreement between 13 Gulf Coast Counties primarily to supply planning services to their region.

  • The agency operates under the direction of a Board of Directors made up of 36 elected officials.

What is the h gac cooperative purchasing program

What is the H-GAC Cooperative Purchasing Program?

  • Thirty three years ago, the Board of Directors decided that purchasing services were needed to help the region to keep pace with the regional growth surge that was outpacing the local governments’ capabilities.

  • In 1971, the Texas legislature passes the Interlocal Cooperation Act to promote activities among local governments across Texas

  • In 2001, legislation was passed to amend the “act” to allow for nationwide participation in the program.

Texas interlocal cooperation act

Texas Interlocal Cooperation Act

Government Code, Chapter 791

“Increase the efficiency and effectiveness of local governments by authorizing them to contract, to the greatest possible extent, with one another and with agencies of the state.” Amended September 1, 2001 to include states other than Texas.

What is required to participate in the h gac cooperative purchasing program

What is required to participate inthe H-GAC Cooperative Purchasing Program?”

  • Execution of Interlocal contract by local government officials

Advantages to buying through the h gac cooperative purchasing program hgacbuy

Advantages to Buying through the H-GAC Cooperative Purchasing Program (HGACBuy)

  • Time Savings

  • Volume purchasing & Discounts

  • 3-Way Partnership between you, the end user, the Vendor and H-GAC

  • Dealing directly with purchasing professionals with more than 200 combined years of expertise.

  • Expedited procurement process.

  • Knowledge that all HGACBuy contracts have been awarded based upon a thorough competitive bid/proposal process.

Current hgacbuy contracts

Ambulances & Fire Apparatus

Chem/Bio Detectors, Robots, Rescue, & Safety Equipment

Earth Moving & Construction Equip

Vehicles, Trucks, & Fleet Equip

Tractors, Mowers, Sewer Cleaning, & Street Maintenance Equip

Video Conferencing

Radio Communications & Interoperability Equip

9-1-1 Systems & Recording Equip

Refuse Collection Equip/Containers, & Sewer Inspection Systems

School & Transit Buses

Street Sweepers & Equipment Trailers

Video Surveillance & Traffic Signal Systems

Cell Phone & Mobile Satellite Communications

Current HGACBuy Contracts

Current service contracts

Current Service Contracts

  • Lease Purchase Financing

  • Foodservice Delivery

  • Consulting

    • Environmental Consulting

    • Community Planning

    • Homeland Security Consulting & Training

    • Insurance Consulting

  • Marketing & Public Relations

  • Electricity Aggregation

Hgacbuy cooperative purchasing program update

HGACBuy Cooperative Purchasing Program Update

  • Over 1,600 End Users

  • Over 250 Contractors

  • 37 Major Product Categories

  • $216 million in Products & Services 2005

  • Activity in Texas & 23 other States

Order activity 2005

Order Activity 2005

The bid process

The Bid Process

  • Products/services researched

  • Draft specification issued

  • Solicitation advertised

  • Pre-bid conference held

  • Final specification issued

  • Bids publicly opened

  • Bids evaluated, award recommendations made

  • H-GAC Board of Directors makes awards

  • Contracts issued

The procurement process

The Procurement Process

  • Discuss product/service with contractor

  • Contractor issues detailed price quote

  • Make purchase order out to contractor

  • Send copy of PO to H-GAC

  • Contractor delivers and invoices

  • Pay contractor (including administrative fee)

Procurement flexibility

Procurement Flexibility

  • Most contracts are bid with base line items and correlating options

  • The options submitted with the bid are evaluated and considered “published options”

  • For additional flexibility, options may be added to an order that were not included in the bid – “unpublished options”

  • Change Order rules are applied to unpublished options – limiting their use to 25% of an order

Administrative fees

Administrative Fees

  • The program is “pay as you go”

  • Cost of operations is covered by an administrative fee issued on each order

  • Administrative fees are either a flat amount per unit, or a percentage of the overall order

The hgacbuy bid process

The HGACBuy Bid Process:

  • Meets the standards that end user would normally utilize

  • Supporting documentation

  • Approval through governing body

  • End user is substituting the bid process they would normally perform for the process now undertaken by the H-GAC Cooperative Program

Usage fees

Usage Fees

  • Are fees actually charged?

  • Who pays for the fees?

    • End User

    • Vendor

  • How much is the fee?

  • Customer service

  • Ease of use

Program structure

Program Structure

  • History & experience of the cooperative program

  • Staff size & expertise

  • Where do the contracts come from?

  • Knowledge of the products

  • Contract administration

  • Problem resolution

Hgacbuy offers flexibility

HGACBuy Offers Flexibility

  • End User has the ability to purchase item as needed which include the base items & options under contract

  • Customization

  • 3-Way Partnership between End User, Vendor and


Delivering value

Delivering Value

  • Cooperative contracts are only of use if they deliver value

    • Value to the End User

    • Value to the Contractor

  • Stay in the loop

  • Communicate frequently

  • Three-way partnership must be fostered

Www hgacbuy org

  • Web site contains pricing & contact information

  • Future functionality may include:

    • Online quotes

    • Product comparisons

    • Order status

    • Contract information

Law enforcement general purpose vehicles and buses

Law Enforcement, General Purpose Vehicles, and Buses

  • Staff Cars

  • Light Trucks

  • Police Cars

  • Vans

  • School Buses

Ems and fire apparatus

EMS and Fire Apparatus

  • Ambulances (Types I,II,II)

  • Pumper and Tanker Fire Apparatus

  • Aerials & Ladder Platforms

  • Rescue, Haz-Mat, & Command Centers

  • Brush/Wildland Fire Apparatus

Medium and heavy duty trucks and specialized bodies

Medium and Heavy Duty Trucks,and Specialized Bodies

  • Medium Duty Chassis

  • Heavy Duty Chassis

  • Refuse Collection Bodies

  • Sewer Cleaners

  • Van Bodies

  • Dump Bodies, Aerial Lifts, Cement Mixers,

  • Wreckers, & Water Trucks

Communications and emergency equipment and supplies

Communications and Emergency Equipment, and Supplies

  • Radios, Base Stations & Communication Systems

  • Defibrillators

  • SCBA’s

  • 9-1-1 Systems

  • Wireless Communications Services

  • Chem/Bio Detectors & EOD Robots

Public works and heavy equipment

Public Works and Heavy Equipment

  • Earth Moving Equipment

  • Tractors & Mowers

  • Traffic Signals Controls

  • Street Maintenance Equipment

  • Street Sweepers

  • Equipment Trailers & Refuse Containers

Security and electronic equipment

Security and Electronic Equipment

  • Security Video & Access Control Equipment

  • Traffic Signals Controls

  • Auxiliary Power Generators

  • Sewer Video Inspection Systems

Consulting contracts

Consulting Contracts

  • Insurance Consulting

  • Environmental Consulting

  • Homeland Security Consulting & Training

  • Community Planning

Service contracts

Service Contracts

  • Lease Purchase Financing

  • Electricity Aggregation

  • Reverse Auction Services

  • Food Products & Equipment

  • Marketing and Communications

  • Public Relations

  • Video Conferencing

Hgacbuy is a proud member

HGACBuy is a proud member



  • The H-GAC Cooperative Purchasing Program (HGACBuy) recognizes purchasing as a universal profession and has adopted the H-GAC Code of Ethics as stated in the H-GAC Procurement Policy, revised edition dated January 1, 2006

  • As a member in good standing of the National Institute of Government Purchasing, (NIGP) HGACBuy recognizes that the NIGP sets the universal standards for government procurement and therefore, HGACBuy and its employees are committed to the NIGP Code of Ethics and its principals

  • “Our goal is to provide to all of its members, quality products and services, by reputable vendors, through cost effective, ethical, moral and prudent procurement standards”




HGACBuy Program Staff

Phone: 800-926-0234

Fax: 713-993-4548



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