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 PurchasingNovember, 2008

 

What are Cooperatives?What are Cooperatives?

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

Why Cooperatives?Why Cooperatives?

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

MPS Purchasing StrategyMPS Purchasing Strategy

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

The Cooperative ArenaThe Cooperative Arena

TypesTypesState/School/City/InterstateState/School/City/Interstate

How Do We Get Involved w/ThemHow Do We Get Involved w/Them

More Highly Visible Than in the PastMore Highly Visible Than in the Past

Advantages of Cooperative Advantages of Cooperative PurchasingPurchasing

Cost Savings (Economies of Scale)Cost Savings (Economies of Scale) Purchasing PowerPurchasing Power Standardization of RequirementsStandardization of Requirements Reduction of Administrative DuplicationReduction of Administrative Duplication More Efficient Utilization of ResourcesMore Efficient Utilization of Resources Greater Breadth of ExpertiseGreater Breadth of Expertise Reduction in Responses for VendorsReduction in Responses for Vendors Timelines Can Be ReducedTimelines Can Be Reduced Networking/Learning OpportunitiesNetworking/Learning Opportunities Lots of Options/Budgets StretchedLots of Options/Budgets Stretched

Disadvantages of Disadvantages of Cooperative PurchasingCooperative Purchasing

Timing of the Bid/RFPTiming of the Bid/RFP Increased Coordination/PlanningIncreased Coordination/Planning Standardization of RequirementsStandardization of Requirements Contract Administration ResponsibilitiesContract Administration Responsibilities Potential Lack of ExpertisePotential Lack of Expertise Auditing Becomes More ComplicatedAuditing Becomes More Complicated Resistance to Change/Vendor Resistance to Change/Vendor

ComplaintsComplaints Confusion About Contract AvailabilityConfusion About Contract Availability Code Compliance/Contract TermsCode Compliance/Contract Terms Research, Research, ResearchResearch, Research, Research

PurchasingPurchasingResponsibilitiesResponsibilities

Our roles and responsibilities as Our roles and responsibilities as procurement professionals are very procurement professionals are very different than they were even 5 years different than they were even 5 years ago as a result of due diligence ago as a result of due diligence requirements.requirements.

This is Purchasing’s time to shine!This is Purchasing’s time to shine!

The only sure thing is…The only sure thing is…

CONSTANTCONSTANTCHANGECHANGE

The The MPSMPS

PurchasingPurchasing WebsiteWebsite

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 IssuedMPS SAVE Contracts Issued

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

RFP 27-128MB Shade StructuresRFP 27-128MB Shade Structures

RFP 29-14MP Grant WritingRFP 29-14MP Grant Writing

RFP 29-72MP Education & PreventionRFP 29-72MP Education & Prevention

Program Consultant Program Consultant ServicesServices

Bid 28-53MB FencingBid 28-53MB Fencing

Bid 29-58MP Contracted TransportationBid 29-58MP Contracted Transportation

Our Newest Our Newest Partnership:Partnership:

AZPurchasing.orgAZPurchasing.org

Proposed Partnership:Proposed Partnership:

MPS as a MPS as a ““Principal Procurement Agency”Principal Procurement Agency”

on Behalf ofon Behalf of

National IPANational IPAConsortium Consortium

forfor

Educational FurnitureEducational Furniture

National IPA National IPA Educational Furniture Educational Furniture

CooperativeCooperative

What is in it for MPS?What is in it for MPS? National Bulk Buying Power Directly National Bulk Buying Power Directly

from Manufacturersfrom Manufacturers Tap IPA’s ExpertiseTap IPA’s Expertise Rebate Potential as a Possible Rebate Potential as a Possible

Revenue SourceRevenue Source MPS gains recognition as a national MPS gains recognition as a national

“Leader” in Educational Furniture “Leader” in Educational Furniture PurchasingPurchasing

SummarySummary

There are several types of Purchasing There are several types of Purchasing Cooperatives that offer a great resource for the Cooperatives that offer a great resource for the MPS Purchasing Departments and its Vendors, it is MPS Purchasing Departments and its Vendors, it is our fiduciary responsibility to seek out these our fiduciary responsibility to seek out these opportunities and maximize the value of the MPS opportunities and maximize the value of the MPS purchasing dollar.purchasing dollar.

Cooperatives provide the means to achieve cost-Cooperatives provide the means to achieve cost-effective and efficient acquisition of quality products effective and efficient acquisition of quality products and services. We as procurement professionals and services. We as procurement professionals are ready to educate and enlighten the public on are ready to educate and enlighten the public on this form of procurement.this form of procurement.

Save Taxpayers’ $$$$$$$$$$$--MPS financial Save Taxpayers’ $$$$$$$$$$$--MPS financial gains and opportunities are expanded through gains and opportunities are expanded through cooperative purchasing.cooperative purchasing.

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