Purchasing + Cooperative Purchasing and Purchasing Central Services

1. Purchasing + Cooperative Purchasing and Purchasing Central Services Presentation for The WI Municipal Treasurers Association September 21, 2018

2. Speakers/Background • Frank Draxler, Director of Purchasing, City & County of Eau Claire • Chris Finn, Purchasing Analyst/Project Communications, City & County of Eau Claire

3. Speakers/Background • Frank Draxler, Dodge Ram Truck owner

4. Speakers/Background • Vintage Dodge Ram Truck owner

5. Purchasing & Central Services • Procurement Process • Project Management • Risk Management / Insurance • Central Printing / Mail / Auction-Surplus • Shared Services/ City and County

6. Procurement Organizations • Member of WAPP • Member of NIGP • Education, awareness, sharing information, up to date practices and procedures

7. www.wapp.org/

8. Certification • NIGP – Certified Public Procurement Officer/Buyer • Model Procurement Code, by American Bar Association and NIGP

9. Procurement • Shared purchasing staff • Centralize buying power • Fair and transparent process • Align City/County purchasing thresholds • Cooperative Contracts

10. Topics for Today • Cooperative Purchasing • Purchasing Thresholds • Project Management • Proper uses of “BIDs vs Quotes vs RFP’s”

11. Why Cooperative Purchasing? • From Services to Large Equipment Purchases • Shared Services • Cost control and cost savings • Time savings • Solutions require: • Understanding and identifying a complex system • Creating momentum and purchasing leverage • Agreed on approaches • Focus and persistence

12. Purchasing cooperatives

13. DEFINITION OF JOINT PURCHASING • Full spectrum from sharing information to collective purchasing • Definition of Cooperative Purchasing

14. Understanding Cooperatives • How they started • Who they represent • Accredited • Administration fees • Cost is transparent • Do Cooperatives understand purchasing? • Profit

15. Purchasing Cooperatives • Combined, we pay less • 2 municipalities can cooperate to issue a joint purchase • A small group • Large group or State agency • WI Municipal Treasurers Association • Super group or Nation-wide Cooperative

16. Purchasing Cooperatives • History • Current Status • Future • Other municipalities – joint or piggyback

17. Purchasing Cooperatives

18. Top Municipal Cooperatives • Vendornet(State of WI) https://vendornet.wi.gov/ • Banking, P-cards, phones, computers, Cisco, IT, vehicles, flooring, lab supplies • Other items?

19. Top Municipal Cooperatives • US Communities - www.uscommunities.org http://www.uscommunities.org/suppliers/all-contracts-by-supplier/ • Graybar, Tapco, Kone • Value (WI based) https://value4gov.org/ • ProcureSource

20. Top Municipal Cooperatives • Sourcewell – used to be NJPA • Good contracts • Not Transparent • Admin fee • Food - State of WI • Healthcare - Shared Services (La Crosse)

21. Prices sometimes not listed

22. Save Time - probably • Search various Cooperatives • Check for published price • Check for published bids • Compare • Negotiate $ and Terms

23. Where Do We Go From Here? • Work with more than one Cooperative • Use a combination of Coops/bids/RFPs • Urge Cooperatives to publish costs and terms

24. THE PROPOSED CONTRACT IS FOR THE FURNISHING OF ROAD SALT FOR THE 2018/2019 WINTER SEASON IN ACCORDANCE WITH THE WISCONSIN DEPARTMENT OF TRANSPORTATION (WIS/DOT) STATE COOPERATIVE PURCHASING CONTRACT #407472. THE CITY PARTICIPATED WITH SEVERAL OTHER WISCONSIN MUNICIPALITIES AND THE STATE OF WISCONSIN TO BID THE FURNISHING OF SNOW AND ICE CONTROL SALT. THE COOPERATIVE PROCUREMENT CONTRACT FOR THE COMBINED QUANTITIES IN EAU CLAIRE COUNTY WAS AWARDED BY THE STATE TO COMPASS MINERALS WHICH WILL RESULT IN LOWER COSTS TO THE CITY AS A BENEFIT OF PARTICIPATING IN THIS JOINT PURCHASING EFFORT. Example of coop purchasing

25. Section 2 • Project Management 

26. Major Projects • County Building Project – Government Center • Shared Law Enforcement Center – ECPD/ECSO • New County Jail • City/County Narrowband 911 Communications • Towers • City/County Joint Law Enforcement Software

27. Project management training • Make this a discipline • Have a dedicated PMO (Project Management Office) • Establish policies and procedures to use best practices • Use resources effectively • Single point of entry for all project requests • Master project list • Coordinate shared teams – IS/Purchasing • Creates transparency and shared services

28. Project management training • Use different methodologies – agile, waterfall, hybrid • Project coordinators help determine structure • Flexibility is key • Coaching and mentoring help educate departments • PM’s not necessarily trained when they become PM’s

29. Project Management guidelines KICK-OFF • Schedule meeting • Owner & Project Manager (PM) run meeting • Introductions and share contact info • Discuss back ups and teams GOALS • Quality project • On time – within budget • Excellent communication • Good PLANNING – good PLANS – good SCOPE

30. Project Management guidelines schedule • Share and discuss • Review and agree on schedule • Written record to accept/approve • Tie deliverables to schedule and payment phaseS • Indicate and highlight phases of project • Before proceeding – get it in writing!

31. Project Management guidelines PAYMENT • Deliverables – discuss and review • Monitoring disbursements • Pay on-time for good performance • Written reason(s) to hold or withhold payment • Track payments for contracts and entire project • Contingency • Owner’s equipment and supplies (owners contingency)

32. Project Management guidelines CONTRACT • Digital format to track changes easily • Everything in order and signed electronically • Certificate of Insurance included • Changes to contract need to be in writing Risk • Review potential problems that could end the project • Good practice to involve others sooner rather than later • Purchasing is always there to advise and communicate

33. The most important aspect of Project Management is…

35. Communication

37. Project Management guidelines Communication • Establish single POC (point of contact) • Create good working relationships • Determine communication patterns • Bi-weekly meetings • Weekly phone calls for updates • Use e-mails for approvals (written record) • Establish written update (s) • Weekly update for team • Monthly update for stakeholders

38. Project Management guidelines Close out • Anticipate a successful project • Celebrate success and communicate success • Close out documents with a checklist (contract) • Include update of plans due to change orders • Long term relationship is the goal

39. Section 3 • Purchasing Thresholds   • Proper uses of “BIDs vs Quotes vs RFP’s”

40. Quick reference guide

41. Purchasing Acronyms/Terms • RFB – Request for Bid (formal) • RFP – Request for Proposal (formal) • RFI – Request for Information (formal) • RFQ – Request for Quote (informal) • P.O. – Purchase Order • Req.– Requisition • Sole Source Purchase • Emergency Purchase • Small Purchase • Procurement Card

42. Request For Bid (RFB) • If you can hold it or kick it…it’s a BID!

43. Request For Bid (RFB) • To be used for equipment and construction • Specifications (determine quality) • Stay competitive - more than one • Vendor names/address (especially for quotes) • Estimated Cost • Time Frame • Low Bid?? (based on specs /criteria)

44. Request for Proposal (RFP) • Services (sometimes equipment) • Scope Detail - what you want them to perform • Delivery – what are we expecting • Payment – tie to delivery, not just timeframe

45. Request for Proposal (RFP) • Departments provide info. + estimated costs • Purchasing drafts and processes RFP • Evaluation Criteria and Cost • proposed scope, experience, time frame cost, deliverables, value added, etc. • Purchasing makes Recommendation • After – Purchasing provides debriefing

46. Request for Information (RFI) • Non-binding request for input from interested suppliers for upcoming solicitation • Generally price is not required • Feedback may include best practices, industry standards, technology issues, etc.

47. Request for Qualifications (RFQu) • Issued to obtain statement of qualifications from bidders prior to issuing a solicitation • An attempt to gauge potential competition and obtain information which may be helpful in writing a scope of work or develop a specification

48. Sole Source Purchase • One source for supply, service or construction • Form filled out for justification and approval by the Purchasing Manager and City Manager • Determination made by Purchasing Manager • Purchase may be negotiated • Other methods of selection may be disregarded • Purchasing Manager must make this determination in writing – Federal Funds and City Code

49. Emergency Purchase • Purchases made in an emergency situation • Nature of Emergency • General Description of the items to be purchased • Estimated Cost • Account Number • Department verified there is enough money in budget to cover the expense

50. Contracts • Use CITY contracts, NOT vendor contracts • System to review contracts • Unless standard contract, route: • Purchasing/Finance • Risk • Attorney