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COOPERATIVE PURCHASING The Benefits of Cooperative Purchasing with School Districts and Other Public Entities A Presentation to the MPS Governing Board Bill Munch, Director of Purchasing November, 2008. What are Cooperatives?.

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COOPERATIVE PURCHASING

The Benefits of Cooperative Purchasing with School Districts and Other Public Entities

A Presentation to the MPS Governing Board

Bill Munch, Director of Purchasing

November, 2008

what are cooperatives
What are Cooperatives?

“Cooperative Purchasing” means procurement conducted by, or on behalf of, more than one public procurement unit.

why cooperatives
Why Cooperatives?

The main goal of a cooperative is to gain cost-effective and efficient acquisition of quality products and services while saving time and personnel resources through greater buying power.

mps purchasing strategy
MPS Purchasing Strategy

The main strategy we have been implementing in the Purchasing Department this past year and moving forward is to get as many of our vendors covered under formal procurement contracts. This strategy allows us to reduce the requirement for quoting and make our purchases more compliant while maintaining the best possible and competitive pricing.

the cooperative arena
The Cooperative Arena
  • Types

State/School/City/Interstate

  • How Do We Get Involved w/Them
  • More Highly Visible Than in the Past
advantages of cooperative purchasing
Advantages of Cooperative Purchasing
  • Cost Savings (Economies of Scale)
  • Purchasing Power
  • Standardization of Requirements
  • Reduction of Administrative Duplication
  • More Efficient Utilization of Resources
  • Greater Breadth of Expertise
  • Reduction in Responses for Vendors
  • Timelines Can Be Reduced
  • Networking/Learning Opportunities
  • Lots of Options/Budgets Stretched
disadvantages of cooperative purchasing
Disadvantages of Cooperative Purchasing
  • Timing of the Bid/RFP
  • Increased Coordination/Planning
  • Standardization of Requirements
  • Contract Administration Responsibilities
  • Potential Lack of Expertise
  • Auditing Becomes More Complicated
  • Resistance to Change/Vendor Complaints
  • Confusion About Contract Availability
  • Code Compliance/Contract Terms
  • Research, Research, Research
purchasing responsibilities
PurchasingResponsibilities
  • Our roles and responsibilities as procurement professionals are very different than they were even 5 years ago as a result of due diligence requirements.
  • This is Purchasing’s time to shine!
  • The only sure thing is…
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The

MPS

Purchasing

Website

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Cooperative Purchasing

  • Mesa Public Schools is a member of and participates in the following purchasing consortiums:
  • Arizona State Contracts (AZSPO)
  • Arizona Dept of Education Contracts 
  • Mohave Educational Services Cooperative (MESC)
  • The Cooperative Purchasing Network (TCPN)
  • Greater Phoenix Purchasing Consortium of Schools

(GPPCS)

  •  Strategic Alliance for Volume Expenditures (SAVE)
mps save contracts issued
MPS SAVE Contracts Issued

The following SAVE contracts have been issued by the MPS Purchasing in the last 12 months:

RFP 27-128MB Shade Structures

RFP 29-14MP Grant Writing

RFP 29-72MP Education & Prevention

Program Consultant Services

Bid 28-53MB Fencing

Bid 29-58MP Contracted Transportation

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Our Newest Partnership:

AZPurchasing.org

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Proposed Partnership:

MPS as a

“Principal Procurement Agency”

on Behalf of

National IPA

Consortium

for

Educational Furniture

national ipa educational furniture cooperative
National IPA Educational Furniture Cooperative

What is in it for MPS?

  • National Bulk Buying Power Directly from Manufacturers
  • Tap IPA’s Expertise
  • Rebate Potential as a Possible Revenue Source
  • MPS gains recognition as a national “Leader” in Educational Furniture Purchasing
summary
Summary
  • There are several types of Purchasing Cooperatives that offer a great resource for the MPS Purchasing Departments and its Vendors, it is our fiduciary responsibility to seek out these opportunities and maximize the value of the MPS purchasing dollar.
  • Cooperatives provide the means to achieve cost-effective and efficient acquisition of quality products and services. We as procurement professionals are ready to educate and enlighten the public on this form of procurement.
  • Save Taxpayers’ $$$$$$$$$$$--MPS financial gains and opportunities are expanded through cooperative purchasing.