COOPERATIVE PURCHASING An Alternative to Traditional Bidding
Historic Flood to WILDCAT STADIUM Football without a home Running out of time Doubtful (at best)……. to Reality! New Car Shopping- Makeand Model!
CRITICAL TEAM MEMBERS John Mauro, School Business Executive Eric Race, Director of Health, Physical Education & Athletics David M. Gilmore, Associate Principal, Highland Associates Gene Hulbert, Jr., President, Hulbert Engineering Brady Begeal, Esq., Coughlin & Gerhart, LLP District Project Committee • Superintendent, IT Director, Board Members, Public Relations Director
Why COOPERATIVE PURCHASING • Quality goods and services at affordable prices • Ability to avoid the pitfalls of sealed bids and “low bidder” • Allows for negotiations when unit pricing is used • Specific products can be hand picked
SAVINGS POTENTIAL • Cost Savings Potential • Provides another resource • Eliminates bidding cost • Saves time • Still need due diligence NYS Contracts Other Cooperatives Local Vendors
SCHOOL DISTRICT ISSUES • Board of Education buy-in • Resolutions to adopt • Legal review and input • Educating those who participate in purchasing procedures
Clerk of the Works • FEMA Implications • Hybrid model versus traditional Clerk of the works for capital projects • Differences Not part of traditional bidding process Role of the Clerk- how is it different
Benefit to the construction process • Coordination of Schedules • Oversight of specialized contractors • Enhanced communication • Increased Documentation and accountability • Other?
BACKGROUND NYS “Piggybacking Law” • General Municipal Law s. 103(16) – August, 2012 • November, 2013 - Revised to add Best Value piggybacking • “Any officer, boardor agency of a political subdivisionor of any district therein authorized to make purchases of apparatus, materials, equipment or supplies, or to contract for services related to the installation, maintenance or repair of apparatus, materials, equipment, and supplies, may make such purchases, or may contract for such services related to the installation, maintenance or repair of apparatus, materials, equipment, and supplies, as may be required by such political subdivision or district therein through the use of a contract let by the United States of America or any agency thereof, any state or any other political subdivision or district thereinif such contract was let to the lowest responsible bidder or on the basis of best value in a manner consistent with this section and made available for use by other governmental entities.”
NYS COMPTROLLER • Only available guidance - 2013 NYS Comptroller Bulletin. • 3 Pre-requisites: The contract must have been: 1. awarded by US agency, a state or political subdivision 2. made available for use by other governments; and 3. awarded to lowest responsible bidder OR on the basis of best value, in a manner consistent with GML section 103.
NYS COMPTROLLER • Determining consistency with General Municipal Law s. 103: • Public solicitation of bids? • Sealed bids? Bid process is confidential and fair? • Preparation of specifications? A common standard for bidders to compete fairly? • Award to lowest bidder (or best value)? • Vendor met the bid specifications and was responsible/qualified?
OTHER DISTRICT REQUIREMENTS Other prerequisites to piggybacking (i.e. “CYA”): • Review/revise District procurement policy • Adopt “best value” resolution • Budget. Will piggybacking save you money? • Obtain proposal from vendor; analyze scope of work and pricing
Architect’s Role Benefits of Cooperative Purchasing on Design and Construction • In Design • Allows the design to focus specifications directly on the selected product or material • Details per exact manufacturer’s standards • Max pricing is known for budgeting reasons • In Construction • Allows selection of qualified contractors based on the quality requirements of the manufacturer
JC PROJECT – PHASE I • Went to vote in December, 2013 • Construction started in April, 2014 • Home varsity football game – September 20, 2014 • Phase I Turf field (lacrosse, football, soccer) Lights Scoreboard Bleachers/press box were bid, (there are contracts now)
JC PROJECT – PHASE II • Gym • Bleachers • Backboards • Scoreboards • Shot Clocks • Divider Curtain • Wall Padding • Sound System • Project Alternates • Auditorium Seating • Tennis court resurfacing • Roofing Contract • Base Costs and Alternates • Priorities
Cooperative Memberships Keystone Purchasing Network- http://www.thekpn.org/ US Communities- http://www.uscommunities.org/ The Cooperative Purchasing Network-http://www.tcpn.org/Pages/default.aspx National Joint Powers Alliance- http://www.njpacoop.org/
Closing Comments “Cooperative purchasing is a time-tested model that can make a significant contribution to its members’ bottom lines by lowering costs, reducing redundancy, and freeing up valuable resources for reallocation to other strategic initiatives. Cooperative contracts are only useful, however, if they deliver more than cost savings. The time and process efficiencies, knowledge, and expertise available through a cooperative can be priceless.” –Nicole Katz Outstanding Resource for AD’s Part of the process from start to finish Worth your time
Questions? Thank you for attending this session on Cooperative Purchasing