The Public-Public Partnership: A Guide to What it is and What it is not

1. Monterey’s Strategies for Providing Efficient Services Hans Uslar Deputy City Manager The Public-Public Partnership:A Guide to What it is and What it is not

2. Friendly Reminder

3. Talk about... • Partnerships – what? • Are Municipalities prepared to take on the challenges? • Federal rules and regulations versus municipal/state rules and ordinances... • 15 years after...How are we doing with the contracting folks?

4. Challenge -Partnership for What?

5. This may be a challenge... • Who are you? • What services? • What can we do well? • What do you need?

6. More Importantly • Partnership speak • At what costs can we provide the selected services ?AND…. • How can the agency reliably invoice the Army?

7. Another Challenge Agency’s COST CALCULATIONS 101

8. Charges / Costs / Services • Charges can be based on • fixed rates • I.e. agency receives fixed sum of money in exchange for services • I.e. street sweeping - $2,000 per month • cost reimbursement • I.e. agency receives payments in exchange for services delivered

9. Contract Formats • Contracts can be based on • Firm Fixed Price • Firm Fixed Price with Incentive • Cost Reimbursement • Cost plus Award Fee Contract • ...

10. OMB A-87

12. How prepared are Municipalities? • Federal Solicitations for municipal services • Private Industry versus public agencies • Solicitation are written with private industry in mind • Contracting may overlook the aspects of public agencies contracting with public agencies (federal - local)‏ • Municipality may or may not have staffers that understand • “FAR-ish” - “Dfar-ish” - “A-87-ish” - “....-ish” • “How-to-Negotiate” with Contracting Officers • Different levels of efficiency/funding • Deadlines • Customer Service • Result driven versus process driven

13. How prepared are Municipalities? • Contract Format • Local Agencies may or may not know the costs for delivering services • Cost reimbursement versus firm-fixed price • A-87 compliance • Work and asset management systems • Vision • Monterey's initiative is based on the vision to lower operational costs • Other municipalities may have different visions • Develop vision / coach other agencies

14. The Far Side... • FAR knowledge necessary • Excellent support from published federal websites • Use FAR's complexity to leverage win-win (make it happen!) • Municipalities need a supporter in Contracting • Without him/her the objective get lost • Bitterness will prevail!

15. Federal RulesMunicipal Rules • Local Governments have purchasing rules in place • We have our own Contracting (Double the pleasure – double the fun!)‏ • GASB requires annual audits • Monterey: • 3 informal bids required for projects up to $65K • Informal bid required for projects > $65K • Federal Government does IGE independent of market results (Double the Fun!)‏ • Federal Government treats every project > $2,500 with the same bureaucratic administration • 80% of projects are below 55K...

16. City of Monterey Cost Control mirrors Army Contracting

17. 15 years after... • Garrison Commanders • Contracting Officer • DPW Representatives • Funding Levels • Visionaries versus 'same old'

18. Section 331 • Do we still need the FAR? Sec. 2336. Intergovernmental support agreements with State and local governments ‘(a) In General- (1) The Secretary concerned may enter into an intergovernmental support agreement with a State or local government to provide, receive, or share installation-support services if the Secretary determines that the agreement will serve the best interests of the department by enhancing mission effectiveness or creating efficiencies or economies of scale, including by reducing costs.

19. 15 years after... • Principles we 'discovered'... • The COUNTER PRINCIPLE • Every FAR rule can has exceptions • The WHEEL INVENTION PRINCIPLE • Every Contracting Officer has their own experiences and preferences • PRINCIPLE OF SLOWNESS with occasional TURBO CHARGE • Example: RFPs – asked for with deadline – responded within deadline – in the virtual federal world without deadline

20. Partnership “Benefits” • Municipal - Military Partnership forced City to review own services, products and procedures • Work management system became the highly visible invoicing system • City work force became more customer oriented • In return: Residents received benefits of optimization efforts

21. Definition • Partnerships are built upon common or mutually supporting goals • Partners benefit from the partnership • Partnering requires two or more organizations • Partners share investments, execution and rewards • Partnerships carry both a legal and moral imperative to share risk

22. 5 Fundamental Reasons for Partnerships • Partnerships create mutual values that is greater than what the partners could achieve individually • Partnerships leverage resources • Partnerships address common issues • Partnerships provide communication channels • Partnerships can achieve ‘Bold Goals’quoted from 2010 SONRI, Inc.

23. What IT IS NOT = P3

24. Conclusion • Monterey Model can be replicated/cloned • Municipalities are used to responsibly manage taxpayer funds • Municipalities have contracting rules in place that favor low-bid • Roll-out will require coaching • Roll-out will require support from all levels