1 / 0

Overview of National Cooperative Contracting

Overview of National Cooperative Contracting. Rutgers University Public Purchasing Educational Forum and NIGP Region II Annual Conference  April 30, 2014 Marc Pfeiffer, Principal, PfeifferGov, LLC. In the Beginning…. Users bought whatever from whomever they wanted; then,

nelson
Download Presentation

Overview of National Cooperative Contracting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overview of National Cooperative Contracting

    Rutgers University Public Purchasing Educational Forum and NIGP Region II Annual Conference  April 30, 2014 Marc Pfeiffer, Principal, PfeifferGov, LLC
  2. In the Beginning… Users bought whatever from whomever they wanted; then, Public procurement laws requiring open competition and lowest responsible bidders; then, Development of state, then and regionalNJ cooperative contracts, then, Increased overhead of procurement process to ensure transparency, fairness, and meeting public policy goals.
  3. Then… Evolution in Lowest Responsible Bidderpolicyover time and over jurisdictions creates new procedures Marketplace and technologicalevolution creates new tools and opportunities National” cooperative purchasingdevelops and evolves from the concept of volume aggregation to a new model
  4. National Co-op Contracts “You can get anything you want, at Alice’s National Co-op” Various type of structures – government agencies, 3rd parties, non-profits, for profits Uncertain volume bids and RFPs – no commitment Everything from almost everyone under some contract Lowest responsible bids orrequest for proposals? “Best value” awards and “soft” criteria “Lowest” and “negotiated” and conflict with lowest responsible bid Subject to each jurisdiction’s laws Fee for the service involved –built in to the proposal pricing (usually 2%)
  5. Today’s Procurement Process Trade Offs Economy vs. Efficiency Competition vs. User Choice Commitment vs. Shopping Bottom line: many national co-ops are effectively non-competitive, but efficient to use; so prudency is required State law allows use of National co-ops, but with rooted in DPP process, statutory and case law
  6. So What’s a Purchasing Agent to Do? Commit: to pledged demand programs? Price:is it competitive? Consider: how was the contract awarded? Controls: how was the item determined? Shop: is it the “best” deal?
  7. TheProcess Local Finance Notice 2012-10 (P.L. 2011, c.139) Reviews the law Recommends process that is consistent with DPP procedure and DPP process adapted to local units Is a National Co-op what you need? Economy vs. efficiency questions: Can you bid it yourself? Time and attention to bidding. Do conditions of the marketplace warrant a national? Is pricing competitive? Basis of national co-op award? Does the national provide added value services? Do they meet the minimum state requirements?
  8. StateStandardsforNationalCo-ops Co-op needs to have a competitive bidding process that complies with the entity’s requirements that is also an: Open, competitive, standard process Not a negotiation Awarded by a government contracting unit Advertised as a national; not after the fact Vendor must submit to NJ local unit: BRC • Statement of Corp Ownership • P2P EEO Compliance • Non-collusion (local option)
  9. AdditionalStandards Price diligence: Must document cost savings (considering all cost factors) over conventional procedures: Compare to state contract Compare to current contract or other NJ co-ops Other comparable agency contracts You don’t have to bid it yourself first Can consider cost and time of a separate procurement Establish documentation that shows compliance = audit protection
  10. MoreStandards Process and vendor must meet state and any local pay-to-play requirements Meaning the agency issuing the contract had to use a “fair and open” process. Disclosure statements if not Agency must get verification Legal advertising consideration – a legal ad telling other vendors you are thinking about a national State has to do it; advised, but not mandated for local units. Not applicable to public works/construction services; or to GSA contracts
  11. Best Practices Review LFN 2012-10 Check to see if there is a NJ State or other co-op contract to see if they have what you want Make sure there is sound justification for making the vendor choice over other vendors Make sure there is compliance with any co-op requirements and any other state requirements Check voucher or P-card payment procedures Comptroller reporting requirements $2M/$10M Document compliance “Justification for utilizing a cooperative contract”
More Related