Embed Size (px)
DESCRIPTION
The official publication of NIGP. Check this issue for the latest details on Forum 2012!
Citation preview
JUNE/JULY 2012www.govpro.com
Reach New Heights at
NIGP Forum
2012 in Seattle
A PENTON MEDIA publication
The official publication of NIGP: The Institute for Public Procurement
SUBSCRIPTIONS: Free subscriptions to Government
Procurement (ISSN 1078-0769) are limited to public-sector
purchasing professionals. Those qualified may apply by
calling 847-763-9670 or visiting http://www.govpro.com.
Subscriptions for others are available, subject to publisher’s
acceptance, at these rates: U.S. and U.S. possessions, $35/1 year, $45/2 years, $7/single copy; Canada, $40/1 year, $60/2
years, $8/single copy; international, $45/1 year, $70/2 years,
$10/single copy. Send subscription payment (by check or
credit card) to Penton Media Customer Service, Government
Procurement, PO Box 2100, Skokie, IL 60076-7800. For all
customer service inquiries, call 847-763-9670; fax to
847-763-9673; e-mail [email protected]; or
visit: http://www.submag.com/ sub/gp. Buy positive
microfilm or microfiche copies of out-of-print issues from
National Archive Publishing Co. (NAPC), 300 N. Zeeb Rd.,
PO Box 998, Ann Arbor, MI 48106-0998;
phone: 734-302-6500 or 800-420-6272, ext. 6578.LIST RENTALS: To rent circulation lists of Government
Procurement, contact Merit Direct, 333 Westchester Ave., White
Plains, NY 10604; Website: http://www.meritdirect.com/market
COPYING: Permission is granted to users registered with the Copyright Clearance Center Inc. (CCC) to photocopy any article
(except for those in which separate copyright ownership is indicated
on the first page of the article), for a base fee of $1.25 per copy
of the article plus 60 cents per page paid directly to CCC, 222
Rosewood Dr., Danvers, MA 01923. (Code No. 1078-0769/07
$1.25 + .60).
REPRINTS: For customized article reprints, contact:
Wright’s Media, phone: 877-652-5295; email: [email protected]
PUBLISHED: Government Procurement (ISSN 1078-0769) is
published bi-monthly by Penton Media Inc., 9800 Metcalf Ave.,
Overland Park, KS 66212-2216. Canadian Post Publications
Mail agreement No. 40612608. Canada return address: Bleuchip International, PO Box 25542, London, ON N6C 6B2. Canadian
No. R126431964. Copyright© 2012 by Penton Media Inc.
POSTMASTER: Send address changes to Government
Procurement, PO Box 2100, Skokie, IL 60076-7800.
Periodicals postage paid at Shawnee Mission, KS, and at additional mailing offices.
SALES OFFICES ARE LISTED ON PAGE 4.
CONTENTSJUNE/JULY 2012
VOLUME 20, NO. 3IN DEPTH
23 Forum Preview NIGP FORUM 2012: REACHING NEW HEIGHTSOur preview section covers highlights of the upcoming 67th annual NIGP Forum in Seattle, Aug.18-22
41 TransportationNO FEAR OF COMMITMENT AT ATLANTA PUBLIC SCHOOLSThe school district buys transportation fuel a year at a time to get lower pricing but has to accurately project its fuel usage for the year.
BY LARRY ANDERSON
44 Best PracticesMODERNIZING CHARLESTON’S CLASSROOMSProcurement project for school furniture, fi xtures and equipment incorporates sustainable standards, addresses evolving education needs and saves money.
BY LARRY ANDERSON
47 Legal Pro UNTYING THE LEGALISTIC STRAIGHTJACKETCourts generally defer to procurement’s decision-making processes – if they are documented.
BY RICHARD PENNINGTON
PERSPECTIVES
2 Guest Editorial: Embrace public service at Forum.
4 Reader Feedback: Innovation another benefi t of design-build.
HOT TOPICS
7 Associations: Fanning the fl ames of community.
10 NIGP Code: Maryland’s approach to certify small business involvement.
14 Outsourcing: Managing contract risks.
18 Real Estate: Financing structure saves money in New York.
20 Green Purchasing: Back to school.
22 Grounds Maintenance: Minimizing the impact of Tier IV emission rules.
RESOURCES
54 Calendar of Events: Check out upcoming courses.
BACK PAGES
55 Ad Index
56 Fred Marks: Thank your leaders … and be one.
2 | JUNE/JULY 2012
PERSPECTIVES [guest column]
PENTON MEDIA INC.
6151 Powers Ferry Road NW, Suite 200 Atlanta, GA 30339 Phone: 770-618-0112 FAX: 913-514-3887
http://www.govpro.com
EDITORIAL STAFF
Bill Wolpin
Editorial Director [email protected]
Larry Anderson
Editor [email protected]
Lindsay Isaacs
Managing Editor [email protected]
Kim Blaski
Production Manager [email protected]
Joan Roof
Audience Marketing Manager [email protected]
Wes Clark
Art Director [email protected]
THE INSTITUTEfor PUBLIC PROCUREMENT
151 Spring St. Herndon, VA 20170-5223 Phone: 703-736-8900 Fax: 703-736-2818
Brent Maas
Marketing Director [email protected]
Cathie Patin
Communications Editor [email protected]
EDITORIAL ADVISORY BOARD
Debbie Field, CPPO, VCO
Virginia Department of General Services
Yolanda C. Jones, C.P.M., APP
Clark County, Nev.
Jay T. McCleary, CPPB
City of Red Wing, Minn.
Public Servants Doing Public Service
very day, procurement professionals support their communities
by being good stewards of public funds. Just doing the job
of procurement supports the community where procurement
professionals work every day. Additionally, procurement professionals
are giving back to the local community where NIGP Forum is being
held simply by attending. Meetings and conventions generate more
than $11 billion in state and local tax revenue in the United States,
which helps communities thrive and keeps people employed.
Here are several additional opportunities for NIGP
Forum 2012 attendees to “give back:”
Communities in Schools of Seattle (CISS). NIGP is committed to
supporting the local communities where Forum is held, and this year is
partnering with Communities In Schools of Seattle (CISS). CISS works in
public schools to close the achievement gap and bolster graduation rates for
students with high dropout risk factors such as low academic achievement
and poor attendance. Seattle public schools face a 30 percent dropout rate. For
youth of color and low-income youth, the dropout rate is even greater. The
average yearly cost of school supplies for a child is more than $60. This burden
forces many families to decide between feeding their family and purchasing
school supplies. With the help of CISS, this struggle for families is eliminated.
Backpack Drive. NIGP will be conducting a backpack drive at Forum in
Seattle. Attendees can bring a new backpack and fill it with pencils, erasers,
crayons, and paper and help a child in need be prepared for the first day
of school. This year’s Forum falls two weeks before the start of school in
Seattle – perfect timing. Anyone who cannot bring donations to Forum can
take advantage of several office supply stores within walking distance of the
Washington State Convention Center. Donations will be accepted at the NIGP
Registration Center Saturday, August 18, through Monday, August 20. On
Tuesday, August 21, the donation box will be located in the exhibit hall near the
Communities In Schools’ booth. Donations will be transported directly after
the close of the exhibit hall. Exhibitors can also participate by donating leftover
trade show items, gift cards, cash and items included on the schools’ wish lists.
Northwest Harvest. The mission of Northwest Harvest is to provide
nutritious food to hungry people statewide in a manner that respects
their dignity, while fighting to eliminate hunger. Their vision is to
have ample nutritious food available to everyone in Washington State.
Forum attendees are devoting time on Saturday, August 18 (noon to 4
p.m.) to work in their warehouse to package items for their food banks.
Transportation, lunch and a t-shirt are provided to each volunteer.
Let’s gather together to show Seattle what our
NIGP community is all about.
CHERAL JONES is procurement unit manager of Washington
state’s Department of Enterprise Services, Contracts and Legal
Services, Master Contract and Consulting, Olympia, Wash.; and
CARRIE RAWN is director of conferences and meetings for
NIGP: The Institute for Public Procurement, Herndon, Va.
E
Over 900,000 products for the ones who get it done.Call. Click. Stop By.® www.grainger.com
4 | JUNE/JULY 2012
Reader feedback
Government Procurement welcomes your feedback.
Send letters to: [email protected] or Government Procurement,
6151 Powers Ferry Road NW, Suite 200, Atlanta GA 30339, Attn.: Bill Wolpin.
We reserve the right to edit all letters for clarity, brevity, grammar, punctuation, syntax and style.
PERSPECTIVES [discussion]
GROUP OFFICERS
Gregg Herring
Group Publisher [email protected]
Susie Barroso
Group Marketing Director [email protected]
Joanne Romanek
Online Advertising Specialist [email protected]
ADVERTISING SALES
Dave Gibson
Northeast Region Sales [email protected] Phone: 216-931-9469 NY, NC, NJ, OH, MA, CT, Wash-ington DC, VA, MD, VT, DE, ME, NH, RI, Canada (Eastern), SC, GA
Bill Perry
Midwest Region Sales [email protected] Phone: 770-618-0453 IL,WI, PA, MN, WV, AK, TN, MS, AL, FL
Ron Corey
Midwest Region Sales [email protected] Phone: 248-608-0994 MI, MO, IA, KY, IN, ND, SD, AR, LA, TX, OK
Julie Fincher
Western Region Sales [email protected] Phone: 913-981-6139 CA, KS, CO, AZ, UT, NE, OR, WA, NV, MT, HI, ID, NM, WY, Canada (Western)
CORPORATE OFFICERS
David Kieselstein
Chief Executive Officer [email protected]
Nicola Allais
Chief Financial Officer Executive Vice President [email protected]
Bob MacArthur
Senior Vice President [email protected]
PROCUREMENT PONDERABLE
Here is a response to the last issue’s Procurement Ponderable,
which described your dilemma as a senior civilian contracting
officer called to join a meeting to discuss the problem of smugglers
stopping Coast Guard ships and other watercraft by taking control of
the vessels’ onboard operating systems. After hearing from everyone else
in the meeting, the Deputy Secretary of the Department of Homeland
Security (DHS) turns to you for a practical solution. What do you say?
The following response comes from Steven M. Demel, CPPO,
Tacoma School District Purchasing Manager:
I recommend that we conduct a two-step source selection by inviting technology
companies to propose a practicable solution to this serious strategic problem.
Once proposals are received, I suggest a team of our best people evaluate each
proposal and identify the ones that appear to be feasible. Then the team should
hold separate discussions with each of the companies with a feasible proposal
to ensure each company fully understands our requirements, as well as to make
any necessary refinements to the requirement. Each of these companies would
then be invited to provide a best and final offer. The evaluation team could
then choose to award one or more contracts to the companies deemed most
likely to succeed. Final selection of a full production contract could be based
on delivery and test of working prototypes (“fly before you buy”).
Procurement professionals are key to successful design-build project
delivery, and therefore the Design-Build Institute of America (DBIA) was
very pleased to see the article “The Growth and Growing Pains of Design-
Build Construction” [April/May 2012]. DBIA promotes the value of
design-build project delivery and teaches the effective integration of design
and construction services to ensure success for owners and design and
construction practitioners. The article identified many of the advantages
of design-build as a delivery method, particularly in the wake of natural
or manmade disasters, and in cases where cutting edge or highly complex
facilities are needed. Unfortunately, the article failed to note that innovation,
as well as time and cost savings, is a hallmark of design-build and that this
is one reason design-build is increasingly used for projects like hospitals,
communication facilities, and the other “leading edge” project types cited.
Procurement professionals play a much more significant role in shaping
a project under the design-build method than they do under the traditional
method. Design-build is a different way of doing business and the authors
repeatedly and correctly noted that procurement officials need to understand
> INNOVATION ANOTHER BENEFIT OF DESIGN-BUILD
Continued on page 55
ADVANCING EFFICIENCY ADVANCING COMMERCE
) !"
!" !" $ "# ! !" #" '"#"!" !" " ! !" " " "
%!"''"'#
" ''$
" !" %* $ !!$!#"!"$ " !!! # !"'
"'" !" # " '" #"!( " !" ( $ "
"! !" $ "# ! ('# #!" "$&!!
! " ! ' " !# #! ' $ ! $
"! '! !" # " !# !" !#"! $ "
$""$ '"
Explore our prepaid card solutions at mastercard.com/government.
www.govpro.com • GOVERNMENT PROCUREMENT | 7
T
Fanning the flames of community SHARED CHALLENGES DEFINE COMMON GOALS AND IGNITE A SPIRIT OF UNITY AND MUTUAL ENCOURAGEMENT
By Brent Maas
he Waldo Canyon, Colo., fire that began on June 23 and
blazed for nearly two weeks has been declared the most
destructive fire in the state’s history. In that time, the fire claimed
two lives, displaced 32,000 people, burned over 18,000 acres and
350 homes, and caused $110 million in property damage.
As the largest of the ten major fires in the state, it drew the attention
of the national media and a presidential visit. Perhaps more personally
valuable to those devastated by the fire was the help from strangers across
the region and the state who contributed to a grass-roots relief fund that
quickly grew to more than $420,000. Others came to Waldo Canyon to
cheer on and recognize the sacrificing efforts of the 1,000 emergency
responders who came from 34 states to join the containment effort.
As members of a professional community immediately involved in
emergency preparedness and response, we don’t need to look far before
we identify an immediate friend or friend-of-a-friend who knows — or
is — a victim of the Waldo Canyon fire. So it may not be a surprise that
our own Rocky Mountain Governmental Purchasing Chapter of NIGP
would undertake a fundraising campaign on behalf of the American
Red Cross to support those impacted by the Colorado wildfires.
RMGPA’s efforts bring to life the fundamental nature and value of
professional associations: support of community. At a time when the
association industry is concerned about changing demographics and
the impact of social media and virtual organizations on the traditional
association-membership model, the value of association — of long-
standing relationships and access to personal networks — is immediately
apparent during times of need. Still, it begs the question about the
value of association membership in normal day-to-day challenges.
Our culture formed on principles of independence and individualism,
and today’s technology-powered self-sufficiency has no doubt eroded the
requirement for lasting personal networks to gain access to privileged
information. Compounding that, marketers have unintentionally done
associations a disservice by hi-jacking the meaning of the word membership.
Our understanding of what it means to be a member is undermined by
never-ending retailer enticements of discounts and “special opportunities”
to become a “member” of their frequent buyer’s club. Frequent buyer
PERSPECTIVES [guest column]
Associations’ intrinsic value is their
ability to provide the means to
sustain meaningful relationships.
*Source: RPMG Research Corporation, 2010 Purchasing Card Benchmark Survey Results.©2012 MasterCard. MasterCard, MasterCard Purchase Control, and the
MasterCard Brand Mark are all trademarks of MasterCard International Incorporated.
Reduce costs and increase
operational efficiency with
MasterCard Purchase Control.®
Learn how at
mastercard.com/incontrol.
8 | JUNE/JULY 2012
PERSPECTIVES [guest column]
clubs are in fact affinity programs, which mean they offer discounts and
“reward benefits” so that you’ll like them and spend more money with
them versus with a competitor. The impact of these ongoing enticements
is that our experience of membership is defined through short-lived one-
off transactions rather than sustained shared experiences with peers.
Associations often offer members discounts for products and services,
but their intrinsic value is their ability to provide the means to sustain
meaningful relationships. Associations
may employ technology to help
improve members’ ability to
communicate and maintain access
to information and stay connected
across distances, but the ultimate
association member experience is
founded on the community gatherings
we know as chapter meetings,
regional conferences and Forum. Ask
a member why they go to chapter
meetings or national conferences
and you will hear answers like, “It’s
where I go to get connected;” “Being
with 1,000 other professionals who
‘get it’— it’s how I get my professional
batteries recharged;” “I always learn
something new;” or “I get re-energized
when I talk with members from
different parts of the country and find
out we have the same challenges.”
If you haven’t been to Forum before,
or even if you have, take a close look
at the Forum Preview section in this
issue of Government Procurement.
NIGP’s upcoming annual event in
Seattle features over 70 workshops
across four days, our largest exhibitor
roster to-date and a compelling
slate of professional speakers.
Whether recovering from a Waldo
Canyon fire or overcoming mundane
day-to-day operational fires, the
value of membership comes through
in the ready support available from
member peers and the professional
bonds made at chapter and national
events. You’ll find that for every
fire you put out with the assistance
of your association colleagues,
you’re stoking your professional
fire and fanning the flames of our
professional community.
BRENT MAAS is the marketing
director for NIGP: The Institute for
Public Procurement. If you would like
to support RMGPA’s fundraising efforts
on behalf of the Red Cross to benefit
victims of the Colorado wildfires,
visit www.rmgpa.org. Donations are
being accepted through July 27.
Ensuring citizen safety and supporting critical business operations are important even during tough economic times. At GSA we offer direct access to a wide range of quality local and global contractors offering products and services at pre-negotiated ceiling prices. Our online tools and customer support specialists are available and ready to help you respond quickly to your state and local needs. GSA helps you generate efficiencies and savings for the American people.
To learn more, call 703-605-9155 or visit www.gsa.gov/stateandlocal.
Law Enforcement & Security
Information Technology
Emergency Response & Recovery
Firefighting Protection
Time, Money, and Lives.Solutions That Save
10 | JUNE/JULY 2012
S
Fuel Small Business – Fuel the EconomyMARYLAND’S SIMPLE APPROACH TO CERTIFY AND MANAGE SMALL BUSINESS INVOLVEMENT
By Brittany Devine
HOTTOPICS [NIGP code]
mall businesses are the driving force behind a
strong U.S. economy. More than 60 to 80 percent
of all new jobs come from small businesses. According
to Jim Clifton, author of The Coming Jobs War, there
were about 6 million businesses in the United States
with at least one employee, as of 2007. Businesses
with 500 or fewer employees represent more than 99
percent of these 6 million. Contrary to popular opinion,
it is not jumbo corporations that run and dominate
the economy, but small and mid-sized companies.
Political officials across the country are putting
the full-court press on procurement organizations
to level vendor playing fields and encourage small to
mid-size company growth. Vendors, regardless of size,
should have an equal opportunity to supply goods and
services to the public sector. Economic development
offices are implementing new initiatives and calling
for legislation to stimulate small business growth.
State and local governments are issuing “set-aside”
procurement opportunities for small business.
The State of Maryland understands the impact
its economic engine has on small business and
revamped their eMaryland Marketplace to improve
the landscape for these businesses to compete.
Maryland worked with Periscope Holdings to deploy
BuySpeed’s new Small Business Engine (SBE). The
new automated engine qualifies and certifies vendors
as small business participants within the eMaryland
Marketplace during on-line vendor registration.
In addition, all Maryland vendors now register
with the NIGP commodity code, which helps the state
understand which vendors supply what goods and
services. With the SBE, Maryland not only certifies
small businesses but can now also use the NIGP
Code to report on the specific goods and services that
are provided by small business vendors. Maryland’s
eMarketplace provides a one-stop-shop for vendor
registration, small business certification, solicitation
management and contract management. The state
expects to revive small business involvement through
its consolidated paperless vendor qualifying system.
“Maryland has opened a new door into small
business involvement,” said Maryland Gov. Martin
O’Malley. “This new tool helps the state accomplish
our economic development strategy to generate,
grow and sustain the state’s economy from within.”
Maryland went live with SBE functionality on
February 20, 2012, and already has more than
4,500 small businesses registered in the eMaryland
Marketplace. Small business opportunities have
increased two-fold. Since go-live, an average of 246
new small businesses have enrolled weekly. Forty-six
percent of all vendors now registered in eMaryland
Marketplace are qualified small businesses.
Maryland’s BuySpeed Small Business
Engine, allows the state to:
Maryland’s eMarketplace
provides a one-stop-shop
for vendor registration,
small business certification,
solicitation management
and contract management.
12 | JUNE/JULY 2012
> Set configurable vendor qualifying questions
> Certify small business within the system, thus
eliminating paper affidavits and certificates
> Identify small business vendors and extend invitations
to participate in set-aside procurements
> Track contracts awarded to small businesses
> Monitor small business involvement goals
> Send renewal notifications to vendors
> Report expired and renewed small business vendors
Small businesses are not the only classification that can
benefit from the small business engine module. The flexible
nature of the rules-based engine can be used to promote
local, minority, women and veteran-owned businesses.
“Political officials nationwide are instituting programs to
stimulate categorical business participation; however, most
governments lack a way to manage new policies,” said Brian
Utley, President and CEO, Periscope Holdings, Inc. “We’re
pleased to have successfully worked with Maryland to level
their vendor playing field with BuySpeed’s one-stop-shop
for vendor registration, solicitation management, contract/
catalog management and small business certification.”
When small businesses grow, the government tax base
grows. When small businesses shrink, the government tax
base shrinks, slashing entitlements and government programs.
Small businesses are looking for every opportunity to prosper.
Today’s economic headwinds have small, medium and large
businesses fiercely competing for public sector contracts.
Small business initiatives are great in theory; however,
historically someone had to certify, track and monitor
participation. Ultimately, that responsibility has fallen on
procurement, and the concern over how to manage new
initiatives becomes a reality. Who qualifies as a small business?
How am I going to verify small business compliance? How
do I track awards? The common response: I don’t have
available personnel to oversee small business involvement.
Typically, procurement organizations have manually
certified small businesses through paper affidavits and
notarized documents. This tedious task was either outsourced
or most commonly neglected leaving small businesses
overlooked in favor of their large counterparts. In addition,
most procurement systems are not integrated with vendor
pools or solicitation processes, so categorical “set-asides” are
difficult to execute. In the end, opportunities to spur small
business growth are diminished because organizations lack
an efficient way to manage small business involvement.
Success of Maryland’s enhanced marketplace demonstrates
how strengthening small business vendor outreach
can open bid opportunities in which it has previously
been difficult for small businesses to compete.
BRITTANY DEVINE oversees product
marketing for Periscope Holdings, Inc. Contact
her at [email protected].
HOTTOPICS [NIGP code]R E L I A B L E P U R C H A S I N G S U P P O R T, W I T H E V E R Y S T E P.
Purchase with confidence, backed by the steadying hand of TCPN, a network of experienced pros who give you the leverage of more than 30,000 governmental entities. Over 100 years of combined experience, balanced with TCPN’s ability to write the best cooperative contracts in the industry…that’s co-op buying power that never misses a step.
BOOTH # 732 www.TCPN.org
©20
12 T
he T
oro
Com
pan
y. A
ll rig
hts
rese
rved
.
The all-new Toro Groundsmaster 360 reinvents the way a mower performs.
This machine utilizes revolutionary Quad-Steer all wheel steering to maximize
productivity. Climb hills with ease. Make 180° turns without tearing turf.
Hug the turns or side hills while mowing in total comfort. Save time without
sacrificing quality. Intuitive controls and unparalleled maneuverability turn work
into play. To learn more visit:
Publicly solicited and awarded national agreement. Available at participating Toro distributors.
U.S. General Services Administration Contract GS-06F-0012R
14 | JUNE/JULY 2012
HOTTOPICS [outsourcing]
M
MANAGING CONTRACT RISKS IN OUTSOURCING AGREEMENTS By Kenneth Hayslette
anaging risks in regular governmental
contracts is a challenge. Identifying the
contract risks, trying to develop a practical plan to
prevent or preclude them from occurring, and then
trying to mitigate the impact if an identified risk
occurs are significant challenges in “regular” contracts.
Outsourcing contracts have all of the “regular” risks
associated with any contract – technical, financial,
schedule, and hazards – but each also has its own
special set of risks. An outsourcing agreement is a
situation in which the government decides to contract
with an outside provider to perform services that had
previously been provided by government employees.
Of course, the risk of performance failure is very
significant in an outsourcing agreement. If the
contractor does not perform the services for the
government’s citizens, clients and/or constituents, then
the government has failed in its duties. Sometimes
failure in performance can be life-threatening. Think
about the impact of performance failure in ambulance
services, fire services, or other health and safety
services. If these services are not performed properly
and in a timely manner, people can die. Other services,
such as managing the issuance of automotive tags
or other “administrative” government, are not life-
threatening; however, the impact of nonperformance
on the taxpayers and constituents can be severe.
If an outsourcing contractor embezzles only a few
thousand dollars, what is the impact of that lost
money to the fiscal health of the government? Look
at what has happened to some of the governments
around the nation and their financial situations.
Another special risk issue in outsourcing contracts
is ethical standards, which all government contractors
have a duty to maintain. Because the outsourcing
contractor is a representative of the government, any
breach or apparent breach of ethical standards will
be magnified and reflected back on the government.
The question is: How do we, as public procurement
professionals, analyze and develop a risk management
plan to preclude any ethical, moral or integrity
breaches? Can we write ethical standards into the
contract document? Even if these standards are in
the contract document, how do we monitor and
enforce them? And, if there is an ethical breach in
the performance of the contract, what can we do
to mitigate its impact on future performance of the
contract and upon the reputation of the government?
As a part of the performance risk, the contractor’s
fiscal health is more important in an outsourcing
agreement than in a regular contract. In a regular
contract we usually have the opportunity to go to
another contractor to buy replacement performance.
In an outsourcing agreement, while that option
may be still available, it is much more difficult and
expensive to buy replacement performance when all
of our proverbial eggs are in the contractor’s basket.
The importance of the contract administration/
monitoring function in an outsourcing agreement
is even more significant than in a regular service
contract. Unfortunately, many governments have
outsourced performance of governmental work to
private contractors and have not maintained adequate
staff to administer the contract once it’s been awarded.
Some government leaders think that outsourcing is a
tool to reduce the number of government employees.
This is true; however, the government must maintain
adequate contract administration staff with the
needed knowledge, skills, and resources to properly
monitor and manage the contract, and especially to
address the key risks that have been identified in the
Because the outsourcing
contractor is a representative
of the government, any
breach or apparent breach
of ethical standards will be
magnified and reflected
back on the government.
ZZZQMSDFRRSRUJJRSUR
&RPSHWLWLYHO\%LG&RQWUDFW3XUFKDVLQJ6ROXWLRQV
A L i q u i d i t y S e r v i c e s M a r ke t p l a c e
TM
SM
®
)UHH\RXUVHOIRIWKH7LPHFRQVXPLQJSURFHVV&RPSOLFDWHGVSHFLÀFDWLRQV3URFXUHPHQWGHOD\V
1-3$&RQWUDFWVKDYHXQGHUJRQHDQDWLRQDOVROLFLWDWLRQDQGFRPSHWLWLYHELGSURFHVVRQ\RXUEHKDOI$QRFRVWQRREOLJDWLRQRUOLDELOLW\0HPEHUVKLSLVDOO\RXQHHGWRDYRLGUHSHDWLQJWKHZRUNZH·YHDOUHDG\GRQHIRU\RX3OXV\RXU0HPEHUVKLSZLOOJLYH\RXDFFHVVWRRYHUFRPSHWLWLYHO\ELGDZDUGHGFRQWUDFWV
0D[LPL]HHIÀFLHQFLHVDQGMRLQ1-3$WRGD\
<RXUÀUVWVWHS"-RLQWRGD\DWZZZQMSDFRRSRUJJRSUR
5)3"1RWIRUPH
16 | JUNE/JULY 2012
outsourcing risk management plan. Otherwise, the
opportunity for contract failure is greatly increased
and therefore the citizens will be dis-serviced.
There’s no simple answer or a single matrix to
plug in information and come up with the ideal risk
management plan. Every outsourcing agreement
is unique. However, there is a magic formula
that you can use to assist you in managing the
risks in an outsourcing contract. Before you start
crafting your RFP, follow the following steps.
> Consider that Murphy was an optimist!
> Think about everything that could go wrong
in the ensuing contract. Write them all down.
> Identify and rank the top 25 potential failures
from your list that would impact the success of
the contract -- and the success of the government
in performing its services for its citizens.
> Think about and write out the risk factors
for each of the first 25 potential failures.
> For each risk factor identified,
answer the following:
> What is the key causative agent
for the risk factor?
> What would trigger the risk factor?
> How can we prevent it?
> How can we mitigate the impacts if it occurs?
> How can we ensure that if something goes wrong
that it has the least amount of impact on the
government and its citizens and constituents?
Now take these ideas and develop your risk
management plan. Include all of the items from your
plan in the performance requirements of the Statement
/ Scope of Work for your Request for Proposals (RFP).
As part of the RFP, ask the potential proposers to
provide their analysis of the potential contract risks
and how would they go about precluding the risk, or
mitigating the impacts if the risk factor becomes reality.
The last and most difficult part –
proactively manage the risks!
If outsourcing contracts were easy, then there
would be no need for procurement professionals.
Contractual risk management is a challenging
concept, but the challenges can be overcome so that all
parties are successful regardless of what occurs.
EDITOR’S NOTE: The author, KENNETH
HAYSLETTE, CPPO, C.P.M., CPCM, Alexandria, Va.,
will be conducting the workshop “Contractual Risk
Management in Outsourcing Agreements” at NIGP
Forum on Wednesday, Aug. 22, from 1:30 to 2:30 p.m.
HOTTOPICS [outsourcing]
CertainTeed Gypsum is serious about sustainability.
Team up with the leader in materials that contribute to a sustainable built
environment. We’ll save a seat for you at the head of the table.
Learn more about our award-winning innovations and third-party
certifications by visiting our website. www.CertainTeed.com/Sustainable
Sustainability TeamCERTAINTEED GYPSUM
SUSTAINABLE MATERIALS
RECYCLED CONTENT FIRE SAFETY
MOISTURE &
MOLD RESISTANCE INDOOR AIR QUALITY ACOUSTICS
800-233-8990tXXXDFSUBJOUFFEDPN
300'*/(t4*%*/(t53*.t%&$,*/(t3"*-*/(t'&/$&t'06/%"5*0/4
GYPSUMt$&*-*/(4t*/46-"5*0/t1*1&
18 | JUNE/JULY 2012
FINANCING STRUCTURE PROVIDES SAVINGS FOR NEW YORK CITY AGENCY CONSOLIDATIONBy Richard L. Podos
A
HOTTOPICS [real estate]
n innovation in the funding for large-scale
tenant improvements, paid for by financing a
portion of the rent, has enabled the Human Resources
Administration (HRA) of New York City to save
significant dollars and complete a complex transaction
for a 400,000-square-foot facility in downtown
Brooklyn. HRA is the primary Health and Human
Services agency and delivery vehicle in New York.
The project, which included more than $100 million
in construction work for renovations, demonstrates
how municipalities, in the face of unprecedented
budget stringency, can economically and efficiently
complete large, complex transactions that might not
otherwise get done without a large capital outlay
to build out the office space. The time is past when
government agencies could afford to leave money on
the table that is available to fund their operations.
HRA was consolidating three locations into
one and downsizing from approximately 600,000
square feet of office space to reduce budget spend. In
searching for a new location, New York City identified
a former manufacturing building being converted
to office space. The nature of the renovations at the
location, however, required significant construction
work to create an appropriate office environment.
The deal was not able to close until Lance Capital,
in a unique approach, arranged a non-recourse $44
million tenant improvements loan for the building
owner, provided by CGA Capital Corp. The loan was
backed not by the property or other forms of traditional
equity, but by a portion of the rent payable by HRA
under the lease. Bonds tied to the rental stream and
loan were privately placed with institutional investors.
Those bonds, which fully amortize over seven years,
are unrated, but implicitly benefit from the double-A
rating of New York City, resulting in a loan rate just
over 4 percent, much less expensive than traditional
real estate financing. The resulting savings were then
passed on to HRA in a lower rental rate, and further,
the rent is an allowable administrative expense
for federal and state reimbursement purposes.
Tenants typically receive a tenant improvements
contribution from the landlord to perform build-
out and renovations, and the tenant provides capital
for the balance – often 50 percent or more – from
their own budget. In this case, HRA did not want to
make a large up-front expenditure and preferred that
GFI Development, the building owner, take the loan
exposure for the full tenant improvements budget,
perform the build-out and provide a turnkey solution.
Most importantly for NYC and HRA, by funding the
entire tenant improvements budget for the leased
space through the landlord, what
would otherwise have been capital
improvements expenditures
were converted to rent and thus
administrative expense, allowable as
an indirect cost for reimbursement
under federal and state guidelines.
The leasing transaction structure
was reviewed and approved by New
York City’s Department of Citywide
Administrative Services, Office
of Management and Budget, and
Corporation Counsel. All funding
for the tenant improvements
budget under the Lance Capital
structure was deposited into
escrow at the lease closing, to
be controlled by the landlord
during construction but under
The nature of the renovations at 470 Vanderbilt Avenue in downtown Brooklyn required significant construction work to create an appropriate office environment.
www.govpro.com • GOVERNMENT PROCUREMENT | 19
New York City’s oversight as tenant.
By having the landlord, GFI Development,
assume all ownership, funding, and construction
responsibility for the tenant improvements budget,
New York City was able to avoid a tedious procurement
RFP process and also to save the interest expense
to be incurred if New York City had financed the
build-out itself. While the additional cost of tenant
improvements funding was extremely favorable
compared to typical landlord financing options, the
added and key benefit to the transaction was the fact
that the rent assigned to secure and cover the tenant
improvements funding is approximately 70 percent
reimbursable to New York City via federal and state
reimbursement programs. Standards for determining
costs for Federal awards carried out through grants,
cost reimbursement contracts, and other agreements
with State and local governments are available in 2
CFR Part 225, “Cost Principles for State, Local, and
Indian Tribal Governments (OMB Circular A–87)”.
The Lance Capital lease-based tenant improvements
funding structure is widely applicable for all state
and local governments, in terms of both a low-cost
approach to amortizing build-out and renovation
costs into rent, and even more importantly converting
capital expenditures into reimbursable administrative
expense. Lance Capital is currently focused on
tenant improvements funding as an invaluable
tool for state and local government nationwide,
initially for Health and Human Services-related
reimbursable activity, such as Medicaid, CHIP,
WIC, TANF, etc., but also other opportunities for
federal reimbursement relating to Sustainability,
Education, Transportation, Homeland Security, etc.
Executive offices, OMB, administrative and real
estate departments, etc., should all be focused on
this opportunity: Avoid using budget for tenant
improvements capital expenditures, but where possible
“rentalize” into reimbursable administrative expense.
RICHARD PODOS is the
founder, CEO and President
of Lance Capital LLC, a
specialty corporate real estate
and finance company.
BUILT TOUGH
FOR LIFE ON
THE STREETS.
BBUUIILLTTT TTTOOOUUUGGGGHHHH
FFOORR LLLIIFFFEE OONN
THHEE SSTTRREEEEEETTSS..
While the LSV 800 is street legal on most public roads with speed limits of 35 mph
or less, this isn’t just a joy ride. A 48-volt zero-emissions electric drivetrain,
advanced hydraulic disc braking system and 5.9-cubic-foot cargo bed means this new
crew member can hold its own on the job. Visit Cushman.com/streetlegal to watch
the LSV 800 in action and find an authorized Cushman® low speed vehicle dealer.
© 2012 Textron Inc. All rights reserved.
20 | JUNE/JULY 2012
HOTTOPICS [green purchasing]
tudents learn better in greener schools –
schools with improved indoor air quality,
natural light and better materials that save taxpayer
money because of lower building operating costs.
While budgetary limitations make it impossible
for everyone to build new, greener schools,
government purchasers can make it easier for all
schools to buy greener products that help improve
school operations and student performance.
GREENER PRODUCTS AND BETTER
STUDENT PERFORMANCE
Many products purchased for use in schools, including
cleaning products, furniture, computer equipment and
other electronics, have potentially adverse impacts on
indoor air quality. These products release chemicals
into the air that pollute school environments.
While product-related chemical emissions also affect
adults, children’s rapidly growing bodies are particularly
susceptible to chemical exposure-related ailments.
Their respiratory, immune and nervous systems are
still developing and children breathe in a greater
amount of air more rapidly than adults do. Because
they have a faster metabolism, they also absorb and
process these chemicals more rapidly. Finally, children
– who are much shorter than adults – are naturally
closer to the floor, where airborne molecules tend to
suspend for extended periods of time; this increases the
potential for chemical exposure, too. Given the same
amount of chemical exposure, the physical burden on
a child is far greater than the burden on an adult.
Among the most common chemical emissions are
volatile organic compounds (VOCs). VOCs include
known carcinogens, such as formaldehyde and benzene.
Research has shown that children who are exposed
to VOCs are up to four times more likely to develop
asthma – the fastest-growing incurable, chronic
childhood disease – compared to children who are not
exposed. And, according to the Allergy and Asthma
Foundation of America, asthma is responsible for
more than 14 million missed school days each year.
Poor indoor air quality is also linked with
other short- and long-term illnesses, such
as headaches, dizziness and nausea.
BACK TO SCHOOL: BUYING GREENER FOR THE CLASSROOMBy Scot Case
S
According to the U.S. Environmental Protection
Agency (EPA), schools with better indoor air quality
produce higher student test scores, improved academic
performance and increased productivity. Children
simply learn better in healthier environments.
BUYING GREENER SCHOOL PRODUCTS
Many products commonly used in schools can emit
potentially toxic chemicals, including VOCs. Although
paint, coatings, sealants and adhesives are the products
most often associated with VOCs, there are hundreds
of other common indoor products that also emit these
compounds. Among them are furniture (like desks,
tables and chairs), bookshelves, personal computers,
flooring, cabinetry, drywall, insulation, doors, window
treatments and cleaning/janitorial products.
Luckily for those concerned about student health,
there are several product categories for which it is
quite easy to specify safer, greener alternatives:
Paints. Specify paints meeting either the UL
Environment (cross listed with EcoLogo CCD-048),
Green Seal GS-11, or GREENGUARD Children and
Schools standards. Both the UL Environment and
Green Seal standards focus on multiple environmental
issues, while the GREENGUARD standard focuses
exclusively on protecting indoor air quality.
Cleaning Products. Specify cleaning products
meeting either the UL Environment (cross listed
with EcoLogo CCD-146 or CCD-147), Green Seal
GS-37 or GS-40, or GREENGUARD Children and
Schools standards. Both the UL Environment and
Green Seal standards focus on multiple environmental
issues, while the GREENGUARD standard focuses
exclusively on protecting indoor air quality.
Computers and Office Electronics. Specify
computers meeting the IEEE 1680 standard, preferably
those that have been independently certified as meeting
the standard. The IEEE 1680 standard for computers
addresses indoor air quality, although as a point-based
standard it is possible for products to score highly
without fully addressing indoor air quality concerns.
The GREENGUARD Children and Schools standard
identifies products that meet strict indoor air quality
concerns, including computers and other office
electronic products. The UL Environment standard
(cross listed with EcoLogo CCD-035) addresses
multiple additional environmental criteria for office
electronic products, including printers and copiers.
Furniture. For furniture, specify products
certified as compliant with the ANSI/BIFMA e3
Furniture Sustainability Standard at level 1 or higher.
The ANSI/BIFMA standard addresses a variety of
environmental issues, including indoor air quality.
www.govpro.com • GOVERNMENT PROCUREMENT | 21
The GREENGUARD Children and Schools standard
focuses exclusively on indoor air quality issues and, as a
result, has more stringent human health requirements.
MEASURING INDOOR AIR QUALITY
Popular green building programs, such as the
Collaborative for High Performance Schools (CHPS)
and LEED for Schools, highlight the importance of good
indoor air quality. They require that building products
meet certain chemical emissions requirements, but
they are not as protective as some suggest is needed.
Many of the product emissions requirements
are based on California’s 01350 Specification
(CA 01350), which aims to address indoor air
quality performance of building materials.
According to Mark Rossolo, Director of Public
Affairs for UL Environment and the GREENGUARD
Environmental Institute, “California 01350 is
certainly a good start, but schools should take a
more comprehensive look because out of tens of
thousands of VOCs in commerce today, CA 01350
imposes emission limits on only 35 or so.”
There is also debate about how VOCs are measured
and assessed for their health impacts. Many products
labeled “low VOC” or “no VOC,” such as paints, have
earned that distinction based solely on their VOC
weight or content – a factor used to assess whether the
product will react with sunlight to produce ground-
level ozone – and not based their VOC emissions.
“This is problematic for two reasons,” says Rossolo.
“First, not all VOCs react with sunlight to produce
ground-level ozone, so ‘low VOC’ or ‘no VOC’ products
can still off-gas potentially toxic chemicals into the
indoor environment; and second, ground-level ozone
is an outdoor environmental issue, not an indoor one.”
To identify products most protective of indoor air
quality, Rossolo and others suggest looking for products
that have been GREENGUARD certified. A list of
GREENGUARD certified products is available on the
GREENGUARD website at www.greenguard.org.
IT’S EASY TO BUY GREEN
Government purchasers have the ability to protect the
health of the 53 million students and 5 million school
staff members learning or working in U.S. schools.
Human health and environmental standards make it
easy to identify the healthier, greener products.
SCOT CASE has been researching and promoting
responsible purchasing for 17 years. He is market
development director for UL Environment. Contact
him via e-mail at scot.case@ulenvironment.
com or in Reading, PA, at 610-779-3770.
n April 19, 2012, Neal Johnson was traveling
west on I-84 near Hood River, Ore., when,
in quick succession, two State Police cars flew past.
Johnson saw a commotion up ahead. “When I got
closer, I could see one of the policemen pulling
something off the road with a rope” she said. Both
lanes ahead were blocked. She came to a halt and, after
waiting several minutes, a State trooper approached
and told her she had two flat tires. What Johnson
had seen the trooper pull from the road turned out
to be a spike strip. The tire deflation device was
thrown across a lane of traffic to stop a car that was
leading the police on a high-speed chase. Johnson
also ran over the strip and punctured both tires on
the passenger side of her four-wheel-drive SUV.
Thanks to a new agreement between State of Oregon
and Les Schwab Tire Centers, getting Johnson’s tires
fixed was easy. The trooper called Les Schwab, dialing
a number printed on a “Spike Strip Damage Solution”
card all troopers now have in their patrol cars. Les
Schwab towed Johnson’s vehicle to the nearest shop
in Hood River and outfitted Johnson’s SUV with
four new tires. She was on her way within an hour
with no money out of pocket. She was entitled to
pro-rated reimbursement for the punctured tires
and got credit for the other two nearly-new tires on
her SUV, so the tire swap came out even. Behind the
scenes, Les Schwab sent a bill for reimbursement to
the State of Oregon Risk Management department.
In the past, Johnson’s experience would have been
much different. Getting the tires fixed would have been
her problem. Once that was done, she would need to
figure out how to submit a claim to State of Oregon
Risk Management. After two or three weeks, Risk
would evaluate the claim and send her a settlement
check. While these incidents typically happen only
about once a year, this was a frustrating situation for
the both the officers and the motorists involved.
The State Police began using the Stop Stick
brand of tire deflation devices in 1996. The strips
use hollow quills that penetrate the tire and act as
valves, releasing air at a safe, controlled rate.
This article was submitted by GREG HOPKINS
of the Oregon State Procurement Office.
NEW PROCESS HELPS INNOCENT SPIKE STRIP VICTIMS
HOTTOPICS [best practices]
O
22 | JUNE/JULY 2012
HOTTOPICS [grounds maintenance]
2013 Ushers In Tier IVSOME STRATEGIES TO MINIMIZE THE IMPACT OF NEW EMISSION RULES
By Grant Young
n 1999, the Environmental Protection Agency
began implementing new emission requirements
for off-road diesel engines between 25 and 74 hp.
The changes since then have occurred in stepped
“tiers” and, while perhaps not noticeable to end-
consumers, have become progressively more stringent.
The final stage of the regulation – Tier IV, effective
Jan. 1, 2013 – represents the most drastic change to
date, and will certainly be noticeable to everyone
in the turf and grounds maintenance industry.
The final implementation of Tier IV will target a
90 percent reduction of PM (particulate matter) and
60 percent reduction in NOx (nitrogen oxides) from
the previous tier. It’s important to note that other
categories of diesel engines have already gone through
compliance (examples: over-the-road trucks and high
horsepower tractors). Because of this, some of the
technologies developed to meet compliance in those
classifications of engines will likely be used as the basis
for meeting the standards in turf equipment. These
technologies include high-pressure fuel injection
systems and various forms of exhaust after-treatment.
Meeting the compliance standards in turf equipment
will likely require the use of one of these technologies,
or perhaps a combination of them. Although it may go
without saying, these technologies will be accompanied
by more sophisticated controllers and electronics
packages, as well as likely changes to the cooling and
other mechanical systems. As you can imagine, both
engine and equipment manufacturers are investing
significant resources to redesign the affected products.
But what does it mean? The implementation of
Tier IV will affect everyone in the turf industry in
the next two years. Primarily, after January 1, 2013,
diesel-powered turf equipment that meets the Tier IV
emissions standards can expect a price increase of at
least 10 to 20 percent, no matter what brand make or
model you choose. The most telling support for this
projection is to look at products in other industries that
have gone through compliance and compare the pricing
pre- and post-compliance. Additionally, the change
in technology will likely be accompanied by more
sophisticated service and maintenance procedures.
The good news, in addition to cleaner air
for our environment, is that there are options,
but you have to act now. Putting a proactive
acquisition plan together now could save your
organization significant dollars in the coming
years. Let’s look at some strategies to consider:
If you are planning to purchase any products in the
25-74 hp range in 2013 (this may include mowers,
utility vehicles, cultivation equipment, sprayers, blowers
etc.), you may want to consider moving that purchase
up to 2012 and avoid the impending price increase.
Similarly, you may want to flip-flop your
existing schedule - move affected products into
2012 and delayed unaffected products to 2013.
For example, if you’re planning to buy a 35 hp
large area rotary mower in 2013 and some smaller
zero turn riders under 25 hp in 2012, it may make
sense to flip-flop the order of these purchases.
With budgets being limited these days, another source
of equipment could be the pre-owned equipment arena.
Finally, explore the possibilities of alternative
energy solutions other than diesel (gas, hybrid,
other). While the feasibility and economics of
these solutions at higher horsepowers remain to be
seen, the new standard on diesel equipment could
invigorate development of these technologies.
The other good news is that your existing
fleet of equipment is grandfathered in to the
new regulations. You will not be required to
retrofit any equipment purchased prior to the
implementation date of January 1, 2013.
Now is the time to act on this information. Making
Tier 4 and its ramifications known at all levels of
your organization will not only help you make the
best equipment decisions to meet your needs, it will
also help you be the best economic steward for your
budgeted money in 2012, 2013, and beyond!
GRANT YOUNG is director of marketing,
commercial equipment at The Toro
Company, South Bloomington, Minn.
I
www.govpro.com • GOVERNMENT PROCUREMENT | 23
NIGP Forum 2012:
Reaching New Heights
Washington State Convention and Trade Center, Seattle, Wash., August 18-22
> Harnessing an extensive background
in technology, Joel Cherkis leads a team
of sales and technology professionals
who provide global strategic support to
government customers
by delivering solutions
focused on providing
citizen-based services
and enabling government
workplace and data
center modernization.
Cherkis says governments at all levels
are fundamentally rethinking how they
serve their citizens. More entities are
making commitments to change the
lack of transparency and accountability
in their agencies and to transform the
way they operate and interact with
citizens. Central to this mission are the
core goals of dramatically increasing the
openness and transparency of government,
More than 800 public procurement professionals from federal, provincial,
state and local government agencies in the United States and Canada
will converge in Seattle for the 67th Annual Forum and Products
Exposition hosted by NIGP: The Institute of Public Procurement.
Built around the theme “Reaching New Heights,” the meeting will provide opportunities
to network with colleagues and learn from industry leaders and professional speakers.
NIGP’s Forum provides knowledge to empower procurement professionals to meet the
public’s expectations with reduced staff and budgets. Four days of intensive professional
training, networking activities, product exhibits and knowledge sharing will equip
procurement professionals to make a difference through decisive, effective purchasing
programs. Content-rich workshops and knowledge exchanged at Forum enable
attendees to return home strengthened by new ideas and improved professional skills.
FORUM HIGHLIGHTS
Saturday, August 18
Host Committee Social Event:
Tilicum Village: An
Argosy Adventure
(5 – 11 p.m.)
Sunday, August 19
Opening Keynote Speaker
Joel Cherkis, General Manager,
Government and Security,
Microsoft Corp. Worldwide
Public Sector
(8 – 10 a.m.)
Monday, August 20
Products Exposition
(1 – 5 p.m.)
Awards Gala
(6:30 – 9:30 pm..)
Tuesday, August 21
Products Exposition
(9:30 a.m. – 12:30 p.m.)
Wednesday, August 22
Closing General Session
Robyn Bebincasa
(3:15 – 4:45 p.m.)
while also creating new effi ciencies and
innovative ways to engage citizens.
Vernice “Fly Girl” Armour
Who Needs a Runway?
How to Take Off From Where You Are
and Go From Zero to Breakthrough
Monday, August 20, 8:30 – 9:30 a.m.
> Known simply as “Fly Girl,” Vernice
Armour went from beat cop to combat
KEYNOTE SPEAKERS
Joel Cherkis, General Manager,
Government and Security
Microsoft Corp. Worldwide Public Sector
Opening Keynote Speaker
High Performance Government:
The Next Generation of Computing
Sunday, August 19, 8 – 10 a.m.
24 | JUNE/JULY 2012
NIGP FORUM 2012
pilot in three years.
Within a year, she
found herself flying
over the deserts of Iraq
supporting the men
and women on the
ground. She served two
tours overseas, becoming America’s first
African-American female combat pilot.
After returning home from combat,
she used her experiences to create a
seven-step process called the Zero to
Breakthrough Success Plan. She now travels
extensively to share this message through
her keynotes, coaching and seminars.
Her passion is helping organizations and
individuals create similar results. Presented
by the NIGP National Business Council.
Mark Scharenbroich, CSP, CPAE
Nice Bike: Making Meaningful
Connections on the Road of Life
Tuesday, August 21, 8:30 – 9:30 a.m.
> Mark Scharenbroich uses an
unconventional approach that includes
knockout humor and personal stories
with universal appeal.
His session focuses
on the relationship
side of creating
results by connecting
people to people -
management to front
line, team member to team member,
and company to customer.
Scharenbroich has built his speaking
career working in both business and
education, discovering how some of the
best organizations and leaders create
a culture that encourages people to
perform at a higher level. His messages
improve employee engagement, help
people to embrace change, enhance
team collaboration, fuel the passion to
serve others and create meaningful
connections. Scharenbroich’s Nice Bike
principle and newly released book by the
same name are driven by two powerful
words and three powerful actions that
make a difference in the lives of others:
Acknowledge, Honor, Connect.
Wednesday, August 22, 8:30 – 10 a.m.
> How Do You Apply the Public
Procurement Values and Guiding
Principles in Your Professional Life?
During this plenary session, speakers
who help you apply these values
into your every day life. The plenary
session provides a brief look into these
topics and each speaker presents a
more detailed “deep dive” workshop
immediately following the plenary.
David Rabiner, CSP
Topic: Obstacles to Leadership
> Excellence in leadership isn’t just
about generating leadership qualities
and checking them off one at a time.
Understanding
the obstacles to
demonstrating those
qualities – the challenges
to overcoming those
obstacles – is critical
for anyone attempting
to evolve as a leader. In this opening
presentation, international speaker
David Rabiner defines leadership
from a practical perspective -- from a
perspective of influence -- and gives
you the incentive to dedicate yourself
to enhancing your own leadership.
He sets the stage for the process of
developing your own leadership plan,
which includes overcoming the obstacles
to peak performance in leadership.
David Rabiner, CSP, is one of the more established and experienced public speakers in the United States. Since 1993, he has been averaging approximately 100 presentations each year. Overall, Rabiner has presented to more than 1,900 groups in 45 states and 12 countries.
Ed Brodow
Topic: Negotiating in Turbulent Times
> In the typical negotiation, both sides
treat each other as the “enemy.” This
is counterproductive and can lead
to problems and
misunderstandings. In
this eye-opening session
by the bestselling author
of Negotiation Boot
Camp, attendees learn
a series of innovative
techniques for creating an atmosphere
of fairness and trust with suppliers and
stakeholders without sacrificing the need
to achieve specific objectives. Emphasis is
on developing “negotiation consciousness,”
the value of listening as a negotiation tool,
adhering to ethical problem-solving, dealing
with supplier tactics, and Ed Brodow’s
Three Rules for Win-Win Negotiating.
Ed Brodow is the world’s top spokesman on the art of negotiation. A nationally recognized television personality, he has appeared as negotiation guru on PBS, ABC News, Fox News, Inside Edition, and Fortune Business Report. Brodow is negotiating consultant to some of the world’s most prominent organizations, including Microsoft, Goldman Sachs, Starbucks, Learjet, Raytheon, Philips, McKinsey, The Gap, Revlon, Zurich Insurance, Mobil Oil, and the Pentagon.
Robyn Benincasa
Closing Speaker
Ordinary People, Extraordinary Result: The
8 Essential Elements of Human Synergy
Wednesday, August 22, 2:45 – 4:15 p.m.
> Robyn Benincasa inspires people to do
amazing things. She has made an art form
of extreme performance by competing
and winning at the
highest levels of sport
and business. Benincasa
has competed in close
to 40 expedition-length
events - gnarly, multiday,
multisport killers such
as Primal Quest and Eco-Challenge. She
has biked through jungles in Borneo,
climbed Himalayan giants in Nepal, trekked
across lava fields in Fiji, rafted rapids in
Chile – and racked up multiple world
championship titles along the way.
In her spare time, Benincasa is a full-time firefighter in San Diego, on the nation’s first all-female crew. She also founded the Project Athena Foundation, a nonprofit dedicated to helping women who have endured medical setbacks achieve their athletic dreams, whether it means climbing Mount Kilimanjaro or running a local 10K. In her keynote session, Benincasa imparts the attitude and mindset that allows groups of ordinary people to accomplish truly extraordinary things together.
www.govpro.com • GOVERNMENT PROCUREMENT | 25
WORKSHOP TOPICS
The following is a preview of more than
70 workshops planned for Forum:
Avoiding the Front Page of the Newspaper: Why Ethics Matters
> Public agency employees are
regularly faced with ethical decision
making – where do you draw
the line on what is acceptable
versus unacceptable practices?
Evaluating Cooperative Programs
> Due diligence is required to identify
those contracts that may best align
with your specific product or service
requirements and local procurement
ordinances. Get strategy tips and
look at evaluation criteria
The Heart of a Good Request for Proposal (RFP)
> Learn how to construct an entire RFP
in a way that captures the attention of
your potential vendors and effectively
steers them toward submitting a
proposal most responsive to your needs
Procurement’s Next Big Challenge – Construction
> More procurement professionals are
finding themselves in the middle of
a construction project. What specific
requirements should be in the
solicitation document? Get answers
and start building your foundation
Performance Measurements and Services
> A major issue within the shift to best
value procurement is monitoring
results and mitigating the risk to both
parties. Gain an understanding of
how performance measurements
are created and tracked
Procurement Systems and Processes: Choosing an Effective Design
> The breadth and speed of technological,
social, and cultural change is continually
accelerating. Are you keeping up?
For a complete workshop schedule, visit www.nipg/org/forum or email [email protected].
APG ANNUAL MEETING
Airport Purchasing Group (APG)
will host its annual conference August 17
– 18 at the Washington State Convention
and Trade Center, Seattle. Separate
registration required. View the tentative
schedule at www.nigp.org/apgconf
2012 INTERNATIONAL
PUBLIC PROCUREMENT
CONFERENCE
The International Public Procurement
Conference (IPPC) is a global network
of public procurement practitioners
and researchers from more than 100
countries. Its objective is to advance
and share knowledge and best
practices in public procurement.
The biennial conference will be held
at the Sheraton Seattle Hotel and
Washington State Convention Center
August 17 – 19 in conjunction with
the NIGP Annual Forum and Products
Exposition. The conference provides
networking opportunities with high-
level public procurement practitioners
and experts. Participants’ interest in
sharing public procurement knowledge
benefits government, business, and
greater society around the world.
These biennial conferences have
become a forum where practitioners
and researchers (1) share their
knowledge, innovation and best
practices; and (2) build a network
with their international colleagues.
The IPPC is the largest international
public procurement conference dedicated
to academic discourse and practitioner
engagement. Thanks to the fertile
mixture of practical experiences and
academic research, IPPC draws more
than 400 academicians and experienced
professionals from 59 countries. For 2012,
IPPC aims to extend and deepen the
topics of major interest that have their
roots in the first IPPC event held in 2004.
For more information, visit www.nigp.org/ippc5.
PRE-FORUM COURSES
Pre-Forum Courses maximize
educational potential and earn points
toward UPPCC certification and
re-certification. (Space is limited).
Friday, August 17 – Saturday, August 18
> CPPB Prep: Two-Day Course
Instructor: Jeannie Readey, CPPO, CPPB
Contact Hours: 16
UPPCC Re-Certification points: 2
> CPPO Prep: Two-Day Course
Instructor: Lynda Allair, CPPO
Contact Hours: 16
UPPCC Re-Certification points: 2
> Risk Management in
Public Contracting:
Two-Day Course
Instructor: Myra Smith, CPPB
Contact Hours: 16
UPPCC Re-Certification points: 2
INTRODUCTION TO
PUBLIC PROCUREMENT
FOUR-DAY COURSE
Sunday, August 19 – Wednesday, August 22
Instructor: Ed Pabor, CPPO, CDT, C.P.M.
Contact hours: 24; UPPCC
recertification points: 3
> This NIGP foundation course will
be offered over four days within
the context of the Forum schedule.
Individuals wishing to participate in this
course must follow the course schedule
and attend every session in order to
receive credit. Attendees registering
for this course attend each course
session in lieu of Forum educational
sessions. Registration includes many of
the Forum events, including some meal
functions. Please review the schedule
prior to registering for the course.
Separate registration is required.
CHAPTER LEADERSHIP
SERIES
Sunday, August 19, Noon to 5 p.m.
Practicing Effective Leadership
Presented by: Jill McCrory and Steve
Swafford, Leadership Outfitters, LLC
> Using the practical leadership principles
in The Leadership Challenge by Barry
Kouzes and Jim Posner (Model the
Way, Inspire A Shared Vision, Challenge
the Process, Enable Others To Act, and
Encourage the Heart), this program
explores what effective leadership
looks like in the volunteer and work
environments. Although targeted for
NIGP Chapter Members, this workshop
26 | JUNE/JULY 2012
> Acme Auto Leasing
> ADT Security Services, Inc.
> AlliedBarton Security Services
> AllSeating
> Altec Industries
> Applied Industrial Technologies
> Association of Educational Purchasing Agencies (AEPA)
> AT&T Mobility
> Aurora Storage Products
> Bank of America
> Bell and Howell
> BidSync
> Bobcat Company
> Bridgestone Americas Tire Operations, LLC
> Brother International Corporation
> Canon Business Solutions
> Car Toys, Inc.
> Case IH Agriculture
> Caterpillar
> Century Products LLC
> Cisco Systems, Inc.
> Club Car Inc
> Continental Flooring Company
> CTL
> CTS LanguageLink
> Deltek
> Dun & Bradstreet
> The Sherwin Williams Co.
> Enterprise Holdings E H I
> ESM Solutions
> Fastenal Company
> FedBid, Inc.
> Federal Contracts Corp
> FedEx
> FieldTurf Tarkett
> GameTime
> Garland/DBS, Inc.
> General Services Administration
> GOJO Industries
> GovConnection
> GovDeals
> Government Sourcing Solutions
> Govini
> Grainger Industrial Supply
> Graybar
> GunLocke
> Haworth Inc.
> HD Supply
> Herman Miller, Inc.
> Hertz Equipment Rental
> Husky Trucks, LLC
> Independent Stationers, Inc.
> Info Tech Inc.
> Ion Wave Technologies, Inc.
> Jack Doheny Companies
> John Deere Company
> Kellogg Brown & Root LLC
> Keystone Purchasing Network
> Kimball Office
> Knoll, Inc.
> Kompan, Inc.
> KONE Elevators and Escalators
> Konica Minolta Printing Solutions
> Language Line Services
> LeasePlan USA
> Liquidity Services
> Little Tikes Commercial
> Lowes Companies
> Manpower
> McKesson Medical-Surgical
> Metro Office Solutions
> Milliken
> Mitel Business Systems, Inc.
> National IPA
> National Joint Powers Alliance (NJPA)
> National Office Furniture
> Simplot Partners
> Neopost
> Network Services Company
> ChapterManager
> NIGP
> Office Depot
> Officemax
> Onvia, Inc.
> O’Reilly Auto Parts
> Otis Elevator Company
> Otto Environmental Systems
> Panasonic Computer Solutions
> Paoli
> PEPPM
> Periscope Holdings, Inc.
> Pitney Bowes
> PlanetBids, Inc.
> Point Nationwide/
Gonzalez Alliance
> PPG Architectural Coatings
> Premier
> Property Room.com
> Public Sourcing Solutions
> Redwood Toxicology Laboratory, Inc.
> Ricoh Americas Corporation
> Rubbermaid Commercial Products
> Safeware-Mallory
> Samson Equipment, Inc.
> School Specialty, Inc.
> SciQuest, Inc.
> ServiceWear Apparel
> Sharp Electronics
> Sherwin-Williams Company
> SHI International Corp.
> Simplot Partners
> Spikes Cavell
> Staples Advantage
> Steelcase, Inc.
> Stertil-Koni
> Sunbelt Rentals Inc.
> Tech Depot
> Teknion
> Thatcher Company
> The Cooperative Purchasing Network (TCPN)
> The Gordian Group
> The Hartford
> The Home Depot
> The Public Group
> The Toro Company
> Toter, Inc.
> Tremco Inc.
> UL (Underwriters Laboratories)
> United Rentals
> UPS
> U.S. Communities
> Virco
> Waxie
> Western States Contracting Alliance (WSCA)
> Wright Express
> ZeroChaos
Exhibitors in red are NIGP Premier & Corporate Sponsors
Exhibitor listing as of June 6, 2012. View the complete Exhibitor List at www.nigp.org/exhibitorlist.
NIGP FORUM 2012
NIGP 2012 FORUM EXHIBITORS
Visit more than 130 companies with more than 180 exhibit booths in the exhibit hall.
series is open to all Forum
attendees. For questions
about the Chapter Leadership
Series, contact Jennifer
Steffan at [email protected].
2012 EXECUTIVE
LEADERSHIP
SERIES
WITH DAVID
RABINER
Tuesday, August 21,
Noon to 5 p.m.
> Government purchasing
officials have been given
leadership responsibility
because they have
demonstrated leadership
capabilities and have
earned the privilege to
serve their organizations.
A regular part of the
job involves two things:
(1) follow the letters of the
laws and regulations
(2) have positive working
relationships with
department staff,
department heads,
and elected officials.
Getting departments
to want to work with you
-- early in the process -- and
consider your involvement
to be an important
element of their success is
something peak performing
purchasing officials do.
This program explores the
challenges unique to leadership
in government purchasing and
builds on your leadership skills.
This session has a maximum
capacity of 30 participants.
Registration is $75 and
available on a first-come,
first-serve basis. Advance
registration required.
With BuySpeed’s® Small Business Engine, the State of Maryland:
Increased small business opportunities twofold
Has over 4,500 registered small businesses
Certifies small businesses during paperless vendor registration
Identifies small businesses for solicitations
Tracks contracts awarded to small businesses
Lots of People Talk About Helping Small Businesses and Stimulating the Economy. But Maryland Actually Did Something About It...
CALL TODAY: (877) 472-9062WWW.PERISCOPEHOLDINGS.COM
Introducing BuySpeed’s New Small Business Engine
Transparent Procurement Process:
(1) The development of the solicitation, evaluation of the responses and award determination are performed by public employees of a political subdivision* that is separate from and independent of the cooperative organization. (Lead Public Agency)
(2) A National Evaluation Team of public procurement professionals from multiple political subdivisions* participate in the creation, evaluation and award process.
(3) All decisions regarding the awarded master agreement, pricing changes etc., are made by the Lead Public Agency NOT the staffof the cooperative.
*A political subdivision is generally defined in most states as local governments created by the states to help fulfill their obligations. Political subdivisions include counties, cities, towns, villages, and special districts such as school districts, water districts, park districts, and airport districts
Some questions you may want to ask prior to using a cooperative that’s “just like U.S. Communities”
s7ERETHESOLICITATIONEVALUATIONANDAWARDALLperformed by employees of a political subdivision that is independent of the cooperative organization?
s7ASTHEPROCUREMENTPROCESSSUBSTANTIALLYsimilar to the process your agency is required to use?
s7HATKINDOFINDEPENDENTOVERSIGHTOFTHEcooperative is in place?
s$OESTHISCONTRACTMEETTHELEGALrequirements of my agency and state?If in doubt ask your attorney.
Oversight and Accountability:
(1) An Advisory Board of over 20 public procurement professionals to ensure processes and methods used are of the highest standards
(2) A Supervisory Board of National Public Associations to oversee the cooperative and to ensure the interests of their public agency members are served and protected.
(3) Annual independent third-party supplier audits to ensure contract compliance.
Public Agency Protection & Supplier Contract Compliance:
(1) Quarterly performance reviews with supplier executives and the Lead Public Agency to evaluate performance and compliance.
(2) Commitments: Corporate, Pricing, Economy& Sales.
(3) Field Program Managers focused on supporting public agencies and resolving problems or concerns.
Visit uscommunities.org/coopstandardsfor a due diligence check list
All CooperativesAre Not the Same
7HAT-AKES53#OMMUNITIES$IFFERENT
7EREJUSTLIKE53#OMMUNITIES
For more than 15 years, U.S. Communities has been a leader in providing public agencies and nonprofits the best value in the procurement of goods and services. In doing so, U.S. Communities has never wavered in putting the public agency participants interests first during the solicitation process. We enforce our four key commitments expected of each supplier which separates U.S. Communities from all other cooperatives. Although some suppliers complain U.S. Communities commitments are “too onerous,” we are dedicated to protecting a participating public agency’s ethical, legal, and financial interests at all times.
Some questions you may want to ask prior to using a cooperative that’s “just like U.S. Communities”
s$OESTHECOOPERATIVEMANAGETHESUPPLIERS/RDOTHESUPPLIERSMANAGETHECOOPERATIVE
s7HATKINDOFPUBLICAGENCYPROTECTIONSAREREQUIREDOFTHESUPPLIERS
s(OWMANYSUPPLIERSDOESTHECOOPERATIVEHAVEANDHOWMANYCOOPERATIVESDOESTHESUPPLIERBELONGTO
s(OWDOESTHECOOPERATIVEMANAGESUPPLIERCOMPLIANCENATIONWIDE
s(OWMANYSTAFFDOESTHECOOPERATIVEHAVE
s(OWMANYSTAFFPERSUPPLIERDOESTHECOOPERATIVEHAVE
Corporate Commitment: 4HISENABLES53#OMMUNITIESTOACCESSTHETOPSUPPLIEREXECUTIVESTORESOLVEPROBLEMSANDIMPROVEPRODUCTSSERVICEANDPRICINGONBEHALFOFOURPUBLICAGENCYPARTICIPANTS
Pricing Commitment:9OUCANHAVEPEACEOFMINDKNOWINGTHATYOUAREACCESSINGTHESUPPLIERSLOWESTOVERALLPRICINGTHATTHEYOFFERTOPUBLICAGENCIES9OUWONTFINDOUTLATERTHATYOUCOULDHAVEGOTTENABETTERDEALBYGOINGTOBIDORACCESSINGADIFFERENTCONTRACTVEHICLEHELDBYTHATSUPPLIER
7HATSINACommitment?
!LLOFTHESEAREMYBESTDEAL
Visit uscommunities.org/coopstandardsfor a due diligence check list
Economy Commitment:4HISENSURESTHATTHESUPPLIERISWILLINGANDABLETOPROVIDEYOUWITHTHENECESSARYDATADOCUMENTATIONANDANALYSESTHATYOUNEEDTOVALIDATEYOURDECISIONTOUTILIZETHEIR53#OMMUNITIESCONTRACT
Sales Commitment:4HISREQUIRESTHESUPPLIERSSALESFORCETOBEAWAREOFANDKNOWLEDGEABLEABOUTTHEIR53#OMMUNITIESCONTRACT4HISENSURESTHATYOUWILLBEABLETOGETTHEINFORMATIONYOUNEEDANDANSWERSTOYOURQUESTIONSFROMYOURLOCALSALESREPRESENTATIVEREGARDINGTHEPRODUCTSSERVICESPRICINGANDGENERAL4#SCOVEREDUNDERTHECONTRACT
PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE
D TO SERVING PUBLIC AGENCIES
32 | JUNE/JULY 2012
Very® SeatingHaworth.com
PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT
ED TO SERVING PUBLIC AGENCIES
/RZHU<RXU3URFXUHPHQW&RVWV
U.S. Communities contract #10119 publicly solicited
and awarded by lead agency Maricopa County, AZ.
*No cost to participate.
Register with U.S. Communities to start saving today!
For more information and to register go to: www.Applied.com/uscommunities
or call 1-866-482-4145
With 89 years of experience and 4 million parts, we’ve helped maintenance managers reduce
inventory costs by implementing our inventory management program. We’ve devised solutions to create more efficient systems. We’ve extended the life of machinery by recommending a different bearing for the application. And more. You, too, can enjoy endless
solutions to drive costs down, by partnering with Applied Industrial Technologies and U.S. Communities Government Purchasing Alliance.*
$POUSBDU1SJDJOHt%FFQ1SPEVDU*OWFOUPSZ
4FSWJDFt1SPEVDU&YQFSUJTFt*OWFOUPSZ.BOBHFNFOU
3FQBJS4FSWJDFTt5SBJOJOH
PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE
D TO SERVING PUBLIC AGENCIES
34 | JUNE/JULY 2012
Save resources, time and money on products and services you buy every dayThrough U.S. Communities’ Lead Public Agency, North Carolina
State University’s contract for Food Distribution and Related
Supplies and Services (Contract No. 13924), the Premier
Foodservice program offers participating public agencies the
opportunity to reduce cost through the national distribution
program serviced by US Foods, 90+ individual category contracts
offered by Premier and access to value-added services to address
operational efficiencies.
www.premier-uscommunities.com
About Premier REACHTM
Premier REACH helps organizations like hospitals, colleges and universities, early childhood education and K-12 schools, recreation, and other public agencies manage their supply chain to cut costs while improving performance. Through the program, members can take advantage of industry-leading prices offered through Premier’s contracts, innovative tools, solutions and knowledge-sharing. For more information, please visit www.premierinc.com/reach.
Proud supplier of
Supportingmunicipalities
across the country.
Exclusive auto parts supplier to:
Great people, great products, great prices! SM
888-823-6592 or [email protected]
PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT
ED TO SERVING PUBLIC AGENCIES
www.govpro.com • GOVERNMENT PROCUREMENT | 35
S
Contract#: 4400001839
Public Safety and Emergency Preparedness Equipment
All Departments - One SAFETY Contract.Register now to start saving time, money and lives.
XXX4BGFXBSF.BMMPSZDPNttVTDPNNVOJUJFT!TBGFXBSFNBMMPSZDPN
A trusted IT products and
solutions provider to state and
local government agencies
specializing in: Mobility and
End User Computing, Cloud
Solutions, and Data Center
Modernization.
Stop by the GTSI booth #USC 15
at the NIGP vendor show on the
U.S. Communities Row!
GTSI.com/uscommunities
We’re more than pens
and pencils!
t0ďDF1SPEVDUT4VQQMJFSt/BUJPOBM%JTUSJCVUJPOt&YDFQUJPOBM-PDBM4FSWJDFt$PNQFUJUJWF1SJDJOH
IUUQVTDPNNVOJUJFTJTHSPVQPSH
1SPVEUPCFB64$PNNVOJUJFT4VQQMJFS1BSUOFS
PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE
D TO SERVING PUBLIC AGENCIES
36 | JUNE/JULY 2012
Play. Without Delay.
Purchase a playground through U.S. Communities at best
government pricing and avoid the hassle of a lengthy bid process.
800.235.2440 gametime.com/usc
Less cost. Less time. More play.
Bringing together the way we live and workVisit www.knolluscommunities.com to learn more about Knoll. Our range of products, quality, history and project capabilities make Knoll the best value for our government clients. Our partnership with U.S. Communities guarantees you the best price – every day.
The family of chairs
www.knolluscommunities.com
PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT
ED TO SERVING PUBLIC AGENCIES
What’s Hiding in YourStairwell?
A huge opportunity to save energy.
Building code requires stairwells to be
illuminated 24/7, but dimming those lights when
the space is unoccupied can save a lot of energy
and money. A study by Lutron estimates that a
simple stairwell lighting retrofi t can result in up
to 80-82 percent in energy savings.*
Graybar can help you every step of the way –
with energy-saving lighting retrofi ts and much
more. Call 1-800-GRAYBAR today to learn more
about our intelligent energy products or go to
graybar.com/nigp-1.
*Lutron Reading Area Community College Case Study, 2012.
Find out how a college
saved 80 percent.
Download the case study
at graybar.com/nigp-1.
ChallengeReading Area Community College is committed to providing affordable
access, and to meeting the identified educational needs of the
community. Like virtually all educational facilities, the ability to provide
affordable access depends, in part, on keeping operating costs in line
despite increasing energy and facility maintenance costs.Mike Hodowanec, Purchasing Manager, recognized that saving energy
saves money, and worked with Lutron to analyze and evaluate how light
controls could contribute to reduced electricity bills.A walk-through of campus buildings revealed that stairwell lighting stood
out as an obvious place to gain efficiencies. Building code dictates that
stairwells be illuminated 24 hours a day, 7 days a week, but, keeping
those lights on at full brightness all the time results in a significant
amount of wasted energy.Eleven stairwells in five buildings were chosen for the lighting retrofit,
including some stairwells that are typically used for less than two hours
per week. Altogether, these stairwells accounted for 53,000 KWh of
power use, costing more than $5,000 per year.
“Controlling the stairwell lighting was easily quantifiable as a method of
saving energy.”
Mike Hodowanec, Purchasing Manager, Reading Area Community College
photo courtesy of RACC
Project OverviewReading Area Community College (RACC),
Reading, PACollege/University11 stairwells 5 buildings
Lutron stairwell retrofit fixture solution helps RACC save energy and reduce costs.
PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE
D TO SERVING PUBLIC AGENCIES
38 | JUNE/JULY 2012
Contract 11019
hdsupplysolutions.com | 1-855-526-9473
Visit us at NIGP’s 67TH
Annual Forum, Booth #USC38
FREE.
Delivered by professionals. For professionals.
To save you time and
money, our government
support team will help you
reduce procurement lead
times, lower administrative
costs, and take advantage
of our competitively
solicited U.S. Communities
contract—all while providing
free, next-day delivery*
on over 22,000 quality
maintenance and repair
products and services.
It’s an honor to serve you.
ADV-12-6531
Proud Supplier:
* On most orders to most areas. © 2012 HDS IP Holding, LLC. All Rights Reserved.
ACRO SERVICE CORPORATIONTemporary Personnel & Related Services
MANAGED SERVICE PROVIDER (MSP) SERVICES SUPPORTED BY VENDOR MANAGEMENT SYSTEMS (VMS)
Acro manages some of the nation’s largest organizations under our MSP/VMS model in various industries which include government, energy, automotive, aerospace, information technology and healthcare
Our MSP program is customizable, allowing clients to recognize sustainable cost reduction and process efficiencies in procurement and management of contract labor
Our flexible delivery of MSP/VMS services fully integrates with client systems using onsite and/or offsite program teams, combined with Acro’s proprietary eXternal Resource Management System (XRMSM)
XRMSM PROVIDES A COMPLETE VMS SOLUTION
Acro’s XRMSM Solution consists of our own web-based VMS system and expert management services to enable firms to achieve substantial program savings through automation
Our XRMSM Solution automates and streamlines the process for procuring and managing all categories of contingent labor
Provides complete requisitioning control to manage supplier distribution and billing rates while ensuring program compliance
SERVICE EFFICIENCIES, COST SAVINGS & SUCCESS
Acro leverages our industry expertise, ISO processes and dedication to help companies gain full control of their external services spend
Clients obtain better targeted pricing and greater value while simplifying and improving the acquisition and management of contingent labor
We continually ensure compliance with client policies and government regulations in order to drive continuous program improvement
Labor makes up a major percentage of state and local government spending each year. What would they think about saving up to 10% annually on these costs and not lose any valuable employee production they count on?
For tailored solutions and results that will exceed your expectations, please contact Kent Stastny, Acro Service Corporation XRMSM Solutions at 734.632.4276 or visit: www.acrocorp.com/uscommunities or www.xrmsolutions.com
Acro’s Other Service Offerings:t4UBGmOH4FSWJDFTt1SFJEFOUJmFE&NQMPZFF4FSWJDFTt*OEFQFOEFOU$POUSBDUPS$PNQMJBODF.BOBHFNFOUt5FDIOPMPHZ$POTVMUJOH
t
t
t
t
t
t
t
t
t
PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT
ED TO SERVING PUBLIC AGENCIES
ǠƓŜŜŜƓƓɮɮģƏŔȒ ŔȅƔǭĬǒƻ
tY_9OovŔDŽªƫªƫŔŔȒɚƔĬŔ
ȗqªaŰŰľɮǠ;ŔȒ!ȅƔǭƻŔDŽvŔDŽªƫǒȒǭǒȒªƔǒDŽƫƫȒƔſƏȒŔŔȒɚŔŁƫƫǒƏŔȒȒªŁŔƻªȒƧªȒŔƏŔǭȒǒǭŔȒǒŰƏŔƔȒȒŔǭŔĬƔɚŔǒɛDŽŔȒ
ZǒƻªŔȒɜƏªƔɫŔɣǒȒſŔDŽĬɣaȒſªDŽƔɫªƔǒDŽƔĻɣǒĬªDŽªƧŔªŁɛªDŽªſŔǒŰƏŔĬǒǒǭŔȒªƔɛŔǭȒĬƏªƔDŽſǭǒɜŔȒǒŰǒƻƻDŽƔƔŔǒªĬĬŔŁƔĬǒDŽŔŁȒªŔª;ŔȒɫ!ȅƔǭƻŔDŽvŔDŽªƫƔƏƻǒȒŔƏªDŽǠĻŲɯɯȒŔDŽªƫƔŔƻªɛªƔƫªġƫŔĻ;ŔȒɫ!ȅƔǭƻŔDŽvŔDŽªƫƔªǒDŽŔƓǒǭȒŔǒȒĬŔ
ŁɛªDŽªſŔǒŰĬǒDŽȒªĬƔDŽſɜƔƏ;ŔȒɫ!ȅƔǭƻŔDŽvŔDŽªƫƏȒǒſƏƏŔǒƻƻDŽƔƔŔǭȒǒſȒªƻƔDŽĬƫŁŔĺ īZǒŔȒŰŔŔ īƔĬǒDŽǒŰŰǭġƫƔƏŔŁȒŔªƔƫȒªŔ ī!ɡƔƔDŽſĬǒDŽȒªĬŰƫűƫƫĬǒƻǭŔƔƔɛŔġƔŁȒŔȅƔȒŔƻŔDŽǯƏȒǒſƏLǒƔDŽqǒɜŔȒƏǒȒƔɣDZĞ ī4ƫŔɡƔġƫŔȒŔDŽªƫǭŔȒƔǒŁĻŰȒǒƻǒDŽŔǯǠDZŁªɣǒ ɜŔƫɛŔǯǠ-DZƻǒDŽƏǒȒƫǒDŽſŔȒ ī!ɡĬƫƔɛŔƔDŽĬŔDŽƔɛŔDŽǒǒŰŰŔȒŔŁǒªDŽŁªȒŁȒŔªƔƫĬǒƻŔȒ īŔDŽĬƏƻªȒƧƔDŽſªDŽªƫɣƔªɛªƔƫªġƫŔǭǒDŽȒŔȅŔ
ĞǒDŽȒªĬªƔűŔƏŔĬǒƻǭŔƔƔɛŔġƔŁȒŔȅƔȒŔƻŔDŽƔDŽƻǒªŔqƫŔªŔȒŔɛƔŔɜɣǒȒªŔȎĬǒǒǭŔȒªƔɛŔġɣƫªɜ
_tL<X39Ytt_yY_
<VYXV_X
PROUD U.S. COMMUNITIES SUPPLIERS,COMMITTE
D TO SERVING PUBLIC AGENCIES
40 | JUNE/JULY 2012
NO QUOTE REQUIRED. AND YOU CAN QUOTE US ON THAT.THAT’S THE POWER OF THE HOME DEPOT.Our proven relationship with U.S. Communities means your government agency can shop directly at The Home Depot without requesting bids. As a U.S. Communities participant, we will accept your government procurement cards and provide access to our outside sales team to save you even more time.
FOR DETAILS VISIT homedepot.com/gov or call 1-800-589-0690
PROUD U.S. COMMUNITIES SUPPLIERS, COMMITT
ED TO SERVING PUBLIC AGENCIES
The Cooperative Gold StandardGolduscommunities.org/coopstandards
www.govpro.com • GOVERNMENT PROCUREMENT | 41
IN DEPTH [transportation]
Atlanta Public Schools use an annual
fi xed price contract for diesel fuel and
unleaded gasoline, an approach that
has provided some $2.27 million in
total savings over the last three years
and avoids the impact of price spikes
in the market by ensuring the same per-gallon price all
year. To take advantage of fi xed pricing, the district has to
accurately project how much transportation fuel it will use
over the course of the year, and the contract commits the
district to pay for any unused contracted fuel at year’s end.
Currently, the district has a fi xed price contract of $3.61
per gallon for diesel, used by the district’s fl eet of school
Atlanta’s public school district buys transportation fuel a year at a time to get lower pricing
By Larry Anderson
No Fear of
Commitment
42 | JUNE/JULY 2012
IN DEPTH [transportation]
buses, and $3.45 per gallon for unleaded, used by the district’s
“white” fl eet of passenger cars, trucks and maintenance
vehicles. A recent daily spot market price showed $3.78 for
diesel and $3.52 for unleaded (according to U.S. Energy
Information Administration data). All prices are “fully-
loaded” including taxes, fees, delivery charges, etc.
In 2010, the district saved 35 cents per gallon for diesel
and 21 cents per gallon for unleaded, based on comparison of
the locked-in contract prices and the average market prices
for the year. In 2011, the district saved 70 cents per gallon
for diesel and 35 cents per gallon for unleaded for the year.
In addition to better prices, the district is better able
to budget without having to manage against a fl uctuating
market price that is driven by political and environmental
changes. For example, it’s easy to remember how hurricane
Katrina caused a spike in transportation fuel costs.
A LONGER-VIEW APPROACH TO BUYING FUEL
Related to buying transportation fuel, the procurement
department is a partner to the district in providing true
strategic planning. Helping to manage expectations
throughout the upcoming fi scal year allows the district to
focus on what’s most important, educating children. Th e
operations department provides the necessary data on
trends within the district, and the procurement department
helps to develop best-case scenarios to drive solicitations
to get the best quality and price for the district.
When Randall Sellers, Director of Procurement Services,
came to Atlanta Public Schools in 2008, he immediately
did a spend analysis to look for potential savings. Even
then, the budget was getting tighter, and he realized
transportation fuel was a large cost. Of the district’s 50,000
students, about 60 percent ride school buses, whose diesel
fuel needs make up about 90 percent of the district’s
transportation fuel spend, with the unleaded fuel used by
other vehicles taking up the other roughly 10 percent.
In discussions with the transportation director in 2008, Sellers
found that transportation fuel was being purchased on the spot
market. He looked at the last fi ve years and realized that
the volume of fuel was increasing every year. Preliminary
estimates suggested annual savings ranging from $500,000
to $750,000 were possible using a fi xed price contract. Sellers
sold the idea to senior managers and the School Board,
and did a request for proposal (RFP) in 2009. (Georgia law
currently limits the duration of contracts to 12 months. Th e
transportation fuel contracts also have four option years, but
an additional commitment is required for each option year.)
Each solicitation specifi es a particular date and the number
of gallons that will be purchased during the next 12 months
from that date. Suppliers bid a fi xed price for diesel and a fi xed
price for unleaded for the specifi ed amount of fuel during
the 12 months. Because bids are based on projections from a
specifi c date, it can be useful to do the solicitation when the
market appears to be going down rather than up, such as right
before spring break when pricing usually trends down. “If
you look at the trends in the last two years, it’s hard to know
exactly when you are going to get in,” Sellers admitted.
Better pricing comes from leveraging the larger spend, and
by enabling suppliers to combine the purchase from wholesalers
with other large contracts, whether for cities and states or
buying consortia. Such factors mean that bids may vary by 35
to 40 cents, although in 2012 there was a diff erence of only
about 7 cents. Contracts have received as many as six bidders.
TRACKING VOLUME USAGE IS KEY
Th e certainty of budgeting using a fi xed price outweighs
the unlikely possibility that spot prices could go down
drastically during the contract term, says Sellers. “Some
people say it’s a risk, but I don’t think it’s risky. Your
budget is what your budget is, and we have come under
budget every year we have done this,” he said.
Th e biggest sticking point, and perhaps the reason more
entities don’t buy transportation fuel a year at a time, is
that any unused fuel at the end of the contract term has
to be paid for. “We had to make sure our volume was on
point, that we would know exactly where we would be at
the end of the year,” said Sellers. “We fi gured on the low
The biggest sticking
point, and perhaps the
reason more entities
don’t buy transportation
fuel a year at a time, is
that any unused fuel at
the end of the contract
term has to be paid for.
Atlanta Public Schools save at the pump by buying transportation fuel a year at a time for a fi xed price.
www.govpro.com • GOVERNMENT PROCUREMENT | 43
side because we wanted to make sure we didn’t come under.
In the fi rst year, we were over by 9,000 gallons because of
summer school. We keep track all year on a weekly basis to
make sure we are on track to use everything this year.”
Creating language in the contract on how to settle up at the
end of the year was one challenge of the solicitation. When the
invoice for the year’s fi nal fuel purchase is paid, the district is
committed to “true-up” by paying for the cost of the unused fuel,
which fortunately hasn’t happened yet. Th ere also is language in
the contract acknowledging that fuel purchases are contingent
on continuing receipt of K-12 appropriations and tax revenues.
Other school districts in surrounding Atlanta metro
counties are still buying transportation fuel on the spot
market. Sellers said he has reached out to other districts
about the possibility of doing a combined solicitation (with
potentially even greater savings), but so far without success,
whether because of the need to accurately project fuel usage
a year ahead or possible bureaucratic or legalistic obstacles.
For example, if four districts commit to hit a target and only
one of the four misses, then do the other districts have to
share in paying the shortfall? Th e topic has also come up at
meetings of the Metropolitan Regional Educational Service
Agency (MRESA), and there has been some interest, but
contract diff erences and inconsistent legal requirements
from one district to the next seem to present obstacles.
Another approach Atlanta Public Schools is considering
to lower costs is to buy electricity based on load patterns
of power usage throughout the day. Committing to certain
load levels, such as a lower load at night when the schools
are closed, can decrease prices and drive down costs.
‘DON’T SETTLE FOR THE NORM’
Sellers says his experience with the transportation fuel contract
demonstrates the importance of not accepting the status quo
without questioning if there might be a better approach. “Don’t
settle for the norm,” he said. “Look at diff erent, creative ways.
Look at your spend as a whole, at what you’re paying for and
how you’re paying. Just because you have done it one way in
the past doesn’t mean you have to keep doing it that way.
“Nobody ever said we couldn’t buy fi xed, it’s just that
no one ever tried it here,” he said. When doing a spend
analysis, there are only a few ways to reduce costs – by
rebidding, by negotiating, by avoiding costs, or by looking
at a diff erent model. Th e latter is proving its value at
Atlanta Public Schools. In a guaranteed contract, the
vendor knows they will get their volume and will give a
better price based on that volume. Th e only drawback:
“It’s guaranteed and you have to do it,” said Sellers.
Staples Advantage® can help your agency be more eco-conscious.susta ab e
To sign up, visit StaplesAdvantage.com/statelocalgov.
Being more environmentally responsible doesn’t mean sacrificing value or cleaning performance. Join Staples Advantage for:
UÊÊ/iÊLiÃÌÊÃ>ÛÃÊÊV«iÌiÊ facility solutions
UÊÊÊÜ`iÊÛ>ÀiÌÞÊvÊÃÕÃÌ>>LiÊ«À`ÕVÌÃ
UÊÊÃÌivviVÌÛiÊ-ÕÃÌ>>LiÊ >ÀÌÊLÞÊ-Ì>«iî
cleaning solutions
UÊÊ Ý«iÀÌÊ>`ÛViÊÌÊi«ÊÞÕÊ>ViÛiÊ D® certification
44 | JUNE/JULY 2012
IN DEPTH [best practices]
Modernizing Charleston’s Classrooms
Procurement project saves money, incorporates sustainable standards and addresses evolving education needs
By Larry Anderson
Classroom furniture has evolved a lot
since the days of heavy-gauge steel
desks arranged in straight rows all
facing the front of the classroom.
Furniture is changing to reflect new,
more flexible teaching styles and
the realization that there’s no such thing as “one style fits
all.” As educators foster a more cooperative approach and
greater community as ways to boost student achievement,
it’s essential that the classroom environment – including
furniture, fixtures and equipment – keep pace.
Sustainable furniture has also demonstrated its value
to achieve productive learning environments with ample
light, high-quality acoustics and air flow that is safe to
breathe. Incorporating the benefits of the latest trends
New modern, lightweight furniture is used for classrooms and other educational environments by the Charleston County School
District in South Carolina. New furniture offers ergonomic benefits for students and practical benefits for school administrators, such
as the ability to stack chairs on tops of desks for the cleaning crew. Educational trends such as greater cooperation and community
among students are being reflected in furniture configurations that are more flexible and promote student interaction.
www.govpro.com • GOVERNMENT PROCUREMENT | 45
in green furniture products can promote good indoor
environmental quality and support areas properly
equipped with comfortable, functional furnishings.
Charleston County School District in South Carolina
sought to take all these factors into consideration when it
began the “21st Century Classroom Modernization Program”
five years ago in conjunction with a capital building program
involving construction of 18 schools between 2005 and
2009. Leading the classroom modernization initiative, the
district’s construction procurement team developed and
established standards for sustainable furniture, fixtures and
equipment for elementary, middle and high schools. The new
standards are geared to support the learning and teaching
climate and classroom activities for existing and newly
constructed facilities. “We knew we needed to get out of our
comfort zone for the project to be successful,” remembers
Tammie Yeadon, Construction Procurement Supervisor.
DEVELOPING NEW STANDARDS
Charleston County School District undertook classroom
modernization to ensure that physical settings are conducive
to the continuous and changing needs of the learning
community. The technical infrastructure must support
current and future mobile and fixed technical equipment and
enable the sharing of all data types. All learning spaces must
provide the necessary elements that allow for instruction
and learning at all times and be mobile and flexible to
adapt to changes in the teaching and learning activities.
To develop new standards, the construction procurement
team held focus group meetings with stakeholders
(maintenance, procurement staff, information technology
[IT] staff, education staff, parent volunteers) to learn
about evolving classroom needs. “It’s important that we
include stakeholders in the process,” said Yeadon.
A dozen or so focus group meetings were held in 2006 and
2007, including five to 10 people in each group. Discussions
centered around what furniture would support education needs,
what’s comfortable, and how furniture can impact the learning
climate. Attention also centered on minimizing variables to
achieve more equity across the district while still allowing
each school to maintain its individuality. The district also
emphasized lower per-unit costs while maintaining good quality.
“We asked ourselves questions such as how would the
classroom be used? Would the furniture support a student-
centered classroom? Would it be appropriate given new
trends in technology? Would it accommodate new teaching
technologies such as iPads and smart boards?” said Yeadon.
The district also released a Request for Information (RFI)
to the public inviting suppliers across the nation to submit
green furniture products. The selection team narrowed the
products to those with the desired specifications, i.e., those
that are sustainable, flexible, adaptable, safe and lightweight.
The district held its first Furniture Vendor’s Fair at the
2008 Summer Leadership Conference, when District staff
was able to examine the quality and functionality of more
than 250 pieces of equipment provided by manufacturers
for office, classroom, media center, computer lab and
miscellaneous spaces. Participants evaluated the furniture
using a rating system. Yeadon said her department also
visited other education furniture exhibits to get a broader
view of what’s available in the market, talking to various
manufacturers to assess their quality and flexibility.
Also considered was how well the furniture could hold up
to possible rough treatment by students: would it bend or
scratch? The realities of classrooms today require desks to be
moved around by students, so the new furniture had to be
lightweight and easy to move without creating a safety issue.
Ergonomics were also considered. A doctor was invited in
to speak about the value of sustainable products and the role
of ergonomic furniture to encourage students to pay better
attention and to focus. The district became better educated
about the value of collaborative learning environments.
“You have to have a holistic point of view,” said
Yeadon. “You don’t want anything that is toxic in your
environment, but you also want to look at materials, how
the furniture is built, what’s inside the laminate tops. We
looked at samples.” Suppliers also did presentations about
their manufacturing methods to enable comparison.
FORMULATING THE ACQUISITION STRATEGY
Based on the research, Charleston County School
District adopted “Seven Essentials of Learning for the
Sustainable Furniture Approach.” The essentials include
a learner-centric environment and the abilities to adapt
to programs and personalize learning conditions. Other
factors are community connections, aesthetics, safety and
collaboration. The District’s Sustainable Furniture, Fixtures
and Equipment Standardization Approach also meets the
Environmentally Preferable Purchasing (EPP) and the district’s
stakeholders’ expectation of achieving savings. Suppliers
were evaluated based on GREENGUARD certification
and adherence to ISO 14001 environmental standards.
An acquisition strategy position paper, approved by district
management, guided the selection of furniture, fixtures and
equipment (FF&E) to modernize Charleston’s school facilities.
The district proposed using the Invitation for Bid
procurement method. Construction procurement formulated
standardized “packages” of furniture, fixtures and equipment
for elementary school, middle school, and high school,
defining all the components and facilitating the bulk purchase
process. There were also an office package, a music package,
a science and art package and a cafeteria furniture package.
Item numbers of approved products were specified, along
with the make and model, a picture of the product and the
quantity of the bulk purchase. All bids included costs such as
delivery and installation and project management services.
46 | JUNE/JULY 2012
IN DEPTH [best practices]
“We look at the value for the money, the suitability, the
durability, the safety, the ease of use,” said Yeadon. Factors
also include the possible effect of furniture on the schools’
flooring – lightweight furniture must have castors or the
ability to glide across vinyl composition tile (VCT) floors
without damage. Chairs need to be stackable and/or easily
put on top of the desk to clear way for the cleaning crew.
“Testing the little things can help avoid a big issue,” she said.
These standards were used for purchasing furniture, fixtures
and equipment (FF&E) for all school levels, supporting the
learning and teaching climate of classroom activities for
existing and newly constructed schools. Buying the furniture
in “bulk” took advantage of the larger buy to receive better
pricing. Comparison between submitted prices and catalog
prices show FF&E group price savings ranging from 50
to 56 percent. Bid prices include the cost of shipping and
installation, whereas list prices do no. At the end of the Capital
Building Project Closeout, the District saved approximately
$4 million of FF&E with the bulk purchasing bid.
STILL WORK LEFT TO DO
“My job is more than just purchasing the furniture,” said
Yeadon. “I try to get the best value by looking at the total
concept. I connect the focus groups with the manufacturers.
We have to be able to identify and assess trends.”
Yeadon is proud that Charleston is ahead of the
curve related to classroom modernization and on
par with forward-looking districts nationally.
Classroom modernization in Charleston also extends to
existing schools, which are progressing based on availability of
funds. “We’re strategically focused on upgrading various areas
that are approved by Charleston County School District,” said
Yeadon. Current furniture purchases across the board are being
made according to the established standards. The effort is five
years old now, and Yeadon says there is still work left to do.
“You have to engage your staff and stakeholders and make
them a part of the process,” said Yeadon. “As procurement,
we are there to make sure the money is well spent and there
is quality and value. You have to engage stakeholders to
make real changes.” She acknowledges the role and support
of other departments, including the academic team and
the capital building team, in implementing the program.
“Some people have ideas and don’t know how to get
them implemented. You have to have support around you
on a senior level,” Yeadon said. “We’re customer-focused.
The academic team and the procurement department work
together to identify trends that exist out there and identify
other possibilities being offered in the education market.”
Our most popular product is compliance.Shop at PSS and you can piggyback on a growing list of competitively solicited contracts by lead public agencies in compliance with generally accepted public procurement standards. PSS is the place to find what you need and a better way to buy it:
s4HEEASIESTFASTESTWAYTOSAVEON everything from office supplies and computers to furniture and flooring.
s.OPARTICIPATIONFEE
s0ARTOF%DUCATIONAL)NSTITUTIONAL#OOPERATIVE0URCHASINGA YEAR OLDNOT FOR PROlTGROUPPURCHASINGORGANIZATION
s,EVERAGEOURBUYINGPOWERANDSTREAMLINEcompliant purchasing.
Visit www.publicsourcing.org to start saving on the things you need.
Furniture
Office Supplies
Technology
Flooring
Maintenance
Compliance
www.govpro.com • GOVERNMENT PROCUREMENT | 47
IN DEPTH [legal pro]
Untying the Legalistic
Straightjacket
Courts generally defer to procurement’s decision-making processes – if they are documented
By Richard Pennington
A Rhode Island court decision recently
used the phrase “legalistic straightjacket”
in an opinion that demonstrated
judicial sensitivity to the challenges
procurement officials face in making
decisions. This article looks at recent
bid protest cases that illustrate how far courts go to preserve
the discretion exercised by procurement professionals.
COURTS EXERCISE GREAT CARE IN
INJUNCTIONS AGAINST AWARDS
The “legalistic straightjacket” phrase has been a part of the
Rhode Island bid protest lexicon since 1970. The phrase was
used again in a 2005 bid protest case involving two health care
plan providers vying for the state’s business. [Blue Cross &
Blue Shield of Rhode Island v. Najarian, 865 A.2d 1074 (Rhode
Island Supreme Court, 2005)] In Blue Cross, the trial court had
sustained a protest against the award and issued an injunction
against the execution of the contract. The Supreme Court
reversed, noting that while the contract award perhaps was not
handled perfectly (at least partly because the department was
understaffed), nevertheless a “fair and open bid process was
conducted in good faith, and we must afford a presumption of
correctness to the State’s decision. Any mistakes made during
the process simply do not rise to the level of palpable abuse of
discretion.” To hold otherwise, the court reasoned, “would place
the Judiciary in the position of litigating the award of every state
and municipal contract and would place public officials in charge
of awarding such contracts in the ‘legalistic straightjacket’.”
This court decision illustrates the great care taken in
overturning award decisions. In the author’s experience,
courts are reluctant to overturn executive agency decisions
without clear evidence that a substantial error was made.
THE PROPER EXERCISE OF DISCRETION HAS LIMITS
Two 2012 cases illustrate other courts’ views of the range of
discretion. In Ohio, an evaluation committee determined that
an offeror proposing on the Columbus Airport Authority’s
baggage handling system was not responsible. [Glidepath, LLC
v. Columbus Regional Airport Authority, 2012 Ohio 20 (Ohio
Court of Appeals, 2012)] The court upheld the determination,
finding the responsibility analysis comprehensive. The airport’s
finance director was a member of the evaluation committee.
Financial statements and Dun & Bradstreet reports were
analyzed. The committee also considered reports about late
payments to subcontractors and evidence that the company
had limited project management experience. The court
concluded that it would not substitute its judgment and would
“presume that the Airport performed its duties in a lawful
manner … [The Airport] made qualitative determinations
regarding Glidepath’s resources, capacity, and overall ability
to perform the project. Based upon our review, the Airport’s
responsibility determination was supported by logic and reason.”
Still, sometimes the process looks otherwise to a court. A
Virginia court decision considered the fact that different reasons
were given during debriefings for the protester’s not winning
the contract. [Professional Building Maintenance Corp. v. School
Board of County of Spotsylvania, No. 110410 (Virginia Supreme
Court, 2012)] In that case, the county held two post-award
meetings with the vendor. As the court saw the meetings, the
first emphasized a weakness in the company’s environmentally
preferable purchasing program. In the second meeting,
48 | JUNE/JULY 2012
IN DEPTH [legal pro]
BUILDING EQUIPMENT THAT CREATES OPPORTUNITIES
With its new wider and more ergonomic infeed, the Morbark® Beever™ M12R eagerly welcomes and chips branchy material, with less need for sawing and groundwork. So you save time and money with a powerful chipper that:
t'FFET#FUUFS – Self-reversing auto-feed with hydraulically assisted down-pressure gives you crushing power to spare, while feeding at the most efficient horsepower ratio.
t$IJQT#FUUFS – The 25% wider opening, combined with hydraulically assisted down-pressure, feeds the drum smoothly at a consistent speed, giving you more-uniform, high-quality chips with less dust!
t5ISPXT#FUUFS – The boxed air chamber increases air flow through the system, throwing chips faster and farther, and allowing you to fill your truck quickly.
The Morbark Beever M12R is part of a full line of heavy-duty industrial tree and brush chippers from the leader in the industry. Learn more about our machines and our extensive product support network at www.morbark.com.
.PSF$IJQT-FTT8PSL
SEE THE FULL LINE AT
WWW.MORBARK.COM
MODELS
AVAILABLE9
according to the court’s findings, the
county raised different reasons for the
company’s not being successful: issues
of responsibility, problems with the plan
for transitioning from the incumbent
contractor, and concerns about the
method of conducting background
checks. The justices found that the award
decision was arbitrary and capricious.
On the other hand, a New Jersey
case illustrates the common deference
given to procurement professionals’
decisions to cancel solicitations. [A&A
Industrial Piping, Inc. v. County of Passaic,
A-4902-10T4 (New Jersey Supreme
Court, 2012)] In A&A, bids had been
received for upgrades to the heating,
ventilation, air conditioning, and fire
protection systems for the county jail.
A&A protested the intended award to the
low bidder on various grounds, including
the fact that the apparent awardee
was not prequalified by the county to
perform structural steel or HVAC work.
The county realized it inadvertently
had omitted prequalification of
contractors in the solicitation terms
and conditions. The county cancelled
the solicitation. A&A sued.
The court sustained the county’s
decision, agreeing with the trial court
judge that the county did not abuse its
discretion in determining that it needed
to rebid the project to ensure that only
prequalified contractors worked on the
project. The court reasoned that the
county’s cancellation and re-solicitation
decision put potential bidders on an
equal footing – ensuring that they
had a common understanding of the
qualification requirements. “[T]here
can be no judicial declaration of
invalidity in the absence of clear abuse
of discretion,” the court concluded.
PUTTING THE BEST FACE ON
PROCUREMENT DECISIONS
Judges do not want to second-guess
procurement decisions. Still, they have
a responsibility – like procurement
professionals – to safeguard equity
and integrity in the process.
In the bid protest context, courts
generally defer to procurement
decisions if they are not arbitrary and
capricious. “Arbitrary” and “capricious”
are terms that suggest there was no
considered judgment: decisions were
made on a whim without analysis,
reasoning or application of standards.
Remember that local laws,
ordinances, or policies may have
specific requirements, but here
are approaches that help courts
understand how discretion was properly
exercised in a contract award:
Document key decisions. If your
www.govpro.com • GOVERNMENT PROCUREMENT | 49
statutes or ordinances refer to “findings”
or “determinations,” courts look for
memoranda that document key decisions.
Even if laws do not require written
determinations, the procurement file
should “tell the story.” Remember that
the first impression of disappointed
bidders, their counsel, and courts is
gained from the procurement file. Include
brief memoranda that recite the rule and
explain the rationale for key decisions like
rejection of bids that are not responsive,
correction of bid mistakes, waivers of
minor irregularities, and determinations
that bidders are not responsible.
Brief evaluation members about the
importance of following the process
and the fact that their evaluation
comments will be subject to review by
disappointed bidders (in many if not
most states). Better yet, on complex
requests for proposal (RFP) projects,
use an evaluation plan that clearly aligns
with the RFP’s evaluation language.
Be on the lookout for evaluation
comments or documents that do
not make sense. For example, wide
variations in past experience evaluations
from poor to outstanding can be a
red flag during a company’s review of
the procurement file. An evaluator’s
strike-out, change, and “reconsidered
after discussion” comment helps show
considered judgment. Numerical scores
(if used) don’t have to be identical –
evaluators can disagree about application
of criteria – but unexplained, unexpected
variations can raise questions. Make
sure that evaluators talk about wide
initial evaluation disparities and that the
procurement file shows that they did.
Use a succinct evaluation
memorandum that tracks the RFP
language and summarizes the strengths
of the winning offer. Highlight why
the winning proposal won using RFP
evaluation factors as the guide. If an
offer wasn’t as strong in one area, say
so. It shows a balanced evaluation.
(Said another way, don’t just let the
spreadsheet – if you use numerical
ratings -- speak for itself entirely.
People decide. Spreadsheets don’t!)
&T ,BS-OMENT2ATING,B-AXIMUM#APACITY
,)&4-//2%S4RUCK-OUNTED#RANE,)&4-//2%S
4RUCK-OUNTED#RANE&T ,BS-OMENT2ATING,B-AXIMUM#APACITY
s&T0OWER%XTENSIONs#ONTINUOUS2OTATIONs(EX"OOMs7IRELESS2EMOTE#ONTROLs(IGH3PEED0LANETARY'EAR7INCHs!LLSTANDARDFEATURESOFTHISNEWCRANE
,IFTMOOREMANUFACTURESELECTRICANDHYDRAULICCRANESWITHCAPACITIESTO,BS
(OUSTON4EXASs &!8 WWWLIFTMOORECOM
,)&4-//2%).#,)&4-//2%).#
Be prepared for RFP post-award
debriefings and have one person lead
the discussion. We owe industry (who
often spends a lot of money and time
developing proposals) an explanation
about how they can improve proposals.
Some states (and the federal government)
require debriefings by law under certain
circumstances. An inconsistency between
a debriefing and the procurement file puts
a chink in the armor of court deference
to procurement professional discretion.
FILES SHOULD DESERVE DEFERENCE
Your state laws will vary, but in
my experience the court decisions
in this article illustrate common
themes nationally. If your experience
differs significantly, talk with
your counsel about why.
NIGP has given you the tools
to tell a compelling procurement
story in your procurement file that
should convince a court not to put
you in a “legalistic straightjacket.”
At NIGP Forum this year, think
and talk about the special role that
procurement professionals play
in fostering an equitable, effective
and efficient public procurement
system. Do the decisions in your
procurement files deserve the deference
that courts often give them?
RICHARD PENNINGTON,
CPPO, C.P.M., J.D., LL.M. is an NIGP
Individual Member and NIGP Instructor.
He served as an assistant attorney
general (procurement and contract
law and litigation) and State Purchasing
Director for the State of Colorado.
He retired from the practice of
public procurement law in 2010.
50 | JUNE/JULY 2012
EXHIBITORS SHOWCASE
BOOTH: USC3
Company Address:
39209 West Six Mile
Road, Suite 250
Livonia, Michigan 48152
www.acrocorp.com/uscommunities
Contact: Kent Stastny,
Director, MSP Solutions
734-632-4276 – direct phone
Founded in 1982, Acro Service
Corporation is a leading global
provider of a complete range of
staffi ng, technology and consulting
solutions for all labor categories,
including IT, engineering, light
industrial, clerical, professional
and administration. Additionally,
we have a dedicated team
supporting the unique needs of
local, state, and federal government
agencies. Acro is a pioneer in
the creation and use of offshore
software development centers
and has 33 offi ces worldwide.
Acro has a proven and
industry leading Managed Service
Provider (MSP) solution that
enables our clients to streamline
and optimize their contingent
workforce related processes and
cost (spend). Acro’s state-of-the-
art VMS system, XRMSM System
automates the total life cycle of
contingent workforce utilization
(procurement-to-pay or P2P cycle)
through a hosted web-based
service that is customized for each
client’s unique requirements.
BOOTH: USC6
Company Address:
1 Applied Plaza
Cleveland, OH 44115
1-877-279-2799
Applied Industrial Technologies
understands that in these tough,
economic times, you’re responsible
for cutting costs. We can help you
lower your cost of procurement
and make ordering maintenance
products easy through our
value-added services, technical
expertise, multiple ordering
methods, and partnership with
the U.S. Communities cooperative
(contract #11019). Learn how
Applied® can help you stretch
your budget dollar at www.
applied.com/uscommunities.
BOOTH: 24
Company Address:
34 N. Meramec Avenue
St. Louis, MO 63105
www.graybar.com
Contact:
With decades of experience
in supply chain management
and more than 240 stocking
locations throughout North
America, Graybar has a long track
record of helping our customers
improve their bottom-line results.
You can count on Graybar for
quality products, reliable service
and innovative solutions. We
earn our customers’ trust every
day by demonstrating integrity
and delivering real value. As
an employee-owned company,
our people have a stake in
our long-term success—and
yours. Find out how Graybar
can work to your advantage.
ACRO SERVICE
CORPORATION
APPLIED INDUSTRIAL
TECHNOLOGIESGRAYBAR
www.govpro.com • GOVERNMENT PROCUREMENT | 51
BOOTH: USC19
Company address:
One Haworth Center
Holland, MI 49423-9576
Contact:
www.haworth.com
www.organicworkspaces.com
www.haworthcollection.com
@haworthinc
www.facebook.com/haworthinc
Haworth is a global leader in
the design and manufacture
of offi ce furniture and organic
workspaces, including raised access
fl oors, moveable walls, systems
furniture, seating, storage and
wood casegoods. Family-owned,
Haworth is headquartered in
Michigan and serves markets
in more than 120 countries.
BOOTH: USC38
Contact:
www.hdsupplysolutions.com/usc
1-877-610-6912
At HD Supply Facilities
Maintenance, our government
support team will help you
reduce procurement lead
times, lower administrative
costs, and take advantage of
our competitively awarded U.S.
Communities contract. Offering
government agencies access to
free, next-day delivery on over
22,000 quality maintenance
and repair products, and robust
e-procurement capabilities we can
help save you time and money.
BOOTH: N/A
Company address:
MasterCard Worldwide
2000 Purchase Street
Purchase, NY 10577
MasterCard Worldwide, a
leading global payments solutions
company, is a driving force at the
heart of commerce—enabling
global transactions and bringing
insights into the payments
process to make commerce
faster, more secure, and more
valuable to everyone involved.
HAWORTH HD SUPPLYMASTERCARD
WORLDWIDE
52 | JUNE/JULY 201220JUNE/J 1252 | J JULY 252 | JUNE/JULY 2012JUNE/JUL
BOOTH: 521
Company Address:
211 East 7th Street
Suite 1100
Austin, TX 78701
877-472-9062
www.periscopeholdings.com
Contact:
Ken McFarland
VP Sales & Marketing
512-666-9387
Periscope Holdings, Inc. is a
leading provider of public sector
procurement solutions, serving
customers nationwide. We work
to eradicate waste and bring
value to every dollar spent by our
clients. Our solutions streamline
processes, increase effi ciency,
decrease expenditures and
create transparency. Periscope
offers BuySpeed™ an enterprise
eProcurement software suite,
rated #1 for public sector use by
Gartner; it’s designed to manage
vendors, requisitions, solicitations,
purchase orders, contracts and
inventory. We also serve as the
sole custodian of the NIGP
Commodity/Services Code and
offer consultative services.
BOOTH: 732
Company address:
11280 West Rd.
Houston, Texas 77065
As a trusted national governmental
purchasing cooperative, TCPN
provides access to one of the
largest pools of purchasing
potential…saving time, cost and
compliance worries for educational
and governmental entities. Our
wide range of vendors offers large
and small entities the same best
value pricing as the largest buyers–
even from national vendors!
BOOTH: USC39
Company Address:
9711 Washingtonian Blvd., Ste 100
Gaithersburg, MD 20878
www.uscommunities.org
Contact:
Chris Robb
(571) 243-1651
(925) 933-8457 Fax
U.S. Communities cooperative
purchasing program is the
gold standard when it comes
to honest and effective public
procurement. For more than
15 years, U.S. Communities has
been committed to serving and
protecting a participating public
agency’s ethical, legal, and fi nancial
interest at all times. The program
delivers comprehensive business
solutions that help agencies
maximize cost control and
improve operational effi ciencies
and performance. To learn
more about U.S. Communities
visit www.uscommunities.org.
PERISCOPE
HOLDINGS, INC
TCPN (The Cooperative
Purchasing Network)U.S. COMMUNITIES
EXHIBITORS SHOWCASE
®
!#*"&* &"*)$* )&'*'&'*)$* )$'*&#)$ !"&)#
54 | JUNE/JULY 2012
RESOURCES [calendar of events]
Face-2-Face Courses
SEPT.
Contract Administration
Date: Sept. 24 – 26Location: Austin, TexasInstructor: Kirk Buffington, CPPO, C.P.M, MBAHosted by: Texas Association of Public Purchasers Chapter of NIGP
Contract Administration
Date: Sept. 25 – 27Location: Overland Park, Kan.Instructor: David Nash, CPPO, CPPBHosted by: Mid-America Council of Public Purchasing Chapter of NIGP
Contract Administration
Date: Sept. 26 -28Location: Centennial, Colo.Instructor: Joyce Foster, CPPO, CPPBHosted by: Rocky Mountain Governmental Purchasing Association Chapter of NIGP
Contract Administration
Date: Sept. 26 -28Location: Fairfax, Va.Instructor: Sally Barkley, CPPO, C.P.M., MBAHosted by: Virginia Association of Governmental Purchasing, Inc. Chapter of NIGP
Contracting for
Construction Services
Date: Sept. 13 -14Location: McKinney, TexasInstructor: Kenneth Hayslette, CPPO, C.P.M., CPCMHosted by: Dallas Fort Worth Metroplex Chapter of NIGP
CPPB Prep
Date: Sept. 13 – 14Location: Wilsonville, Ore.Instructor: Robin Rickard, CPPO, OPBCHosted by: Oregon Public Purchasing Association, Inc. Chapter of NIGP
CPPB Prep
Date: Sept. 27-28Location: Miami, Fla.Instructor: Sharon Lewis, CPPB, C.P.M., VCOHosted by: Greater Miami Chapter of NIGP, Inc.
CPPO Prep
Date: Sept. 17 – 18Location: Jackson, Miss.Instructor: Jennie Readey, CPPO, CPPBHosted by: Mississippi
Association of Governmental Purchasing and Property Agents Chapter of NIGP
CPPO Prep
Date: Sept. 20-21Location: Tallmadge, OhioInstructor: Kirk Buffington, CPPO, C.P.M., MBAHosted by: Central Ohio Organization of Public Purchasers Chapter of NIGP
CPPO Prep
Date: Sept. 26-27Location: Thunder Bay, Ont.Instructor: Jennie Readey, CPPO, CPPBHosted by: Ontario Public Buyers Association, Inc. Chapter of NIGP
Developing and
Managing RFPs
Date: Sept. 19-21Location: Richmond, Va.Instructor: Ronald King, CPPO, CPPB, VCOHosted by: Virginia Association of Governmental Purchasing, Inc. Chapter of NIGP
Effective Contract
Writing
Date: Sept. 26 -27Location: Victoria, B.C.Instructor: Michael Kolodisner, CPPOHosted by: Cascadia Chapter of NIGP
Introduction to Public
Procurement
Date: Sept. 11-13Location: Des Moines, IowaInstructor: Bill Davison, CPPOHosted by: Iowa Public Procurement Association, Inc. Chapter of NIGP
Introduction to Public
Procurement
Date: Sept. 12 - 14Location: Frankfort, Ky.Instructor: Peter Rigterink, CPPO, CPPB, VCOHosted by: Kentucky Public Procurement Association
Managing Your End
Users and Suppliers
Date: Sept. 27Location: Thunder Bay, Ont.Instructor: Michael Bevis, CPPO, JD, CPSM, C.P.M., PMPHosted by: Ontario Public Buyers Association Seminar Site
Protests and Disputes:
What’s a Buyer To Do?
Date: Sept. 26
Location: Thunder Bay, Ont.Instructor: Michael Bevis, CPPO, JD, CPSM, C.P.M., PMPHosted by: Ontario Public Buyers Association Seminar Site
Risk Management in
Public Contracting
Date: Sept. 26 – 27Location: Albuquerque, N.M.Instructor: Kenneth Hayslette, CPPO, C.P.M., CPCMHosted by: New Mexico Public Procurement Association Chapter of NIGP
Strategic Procurement
Planning
Date: Sept. 5 -7Location: Columbus, OhioInstructor: Barbara Johnson, CPPO, CPPBHosted by: Central Ohio Organization of Public Purchasers Chapter of NIGP
Strategic Procurement
Planning
Date: Sept. 5 – 7Location: Norristown, Pa.Instructor: Edmund Grant, CPPO, CPPB, RPPOHosted by: Pennsylvania Public Purchasing Association Chapter of NIGP
World Class
Procurement Practices
Date: Sept. 14Location: Norman, Okla.Instructor: Darin Matthews, CPPO, C.P.M.Hosted by: Oklahoma Association of Public Procurement, Inc. Chapter of NIGP
OCT.
Adding Value to the
Procurement Process
Date: Oct. 3Location: Baton Rouge, La.Instructor: Darin MatthewsHosted by: Louisiana Chapter of NIGP
Change Management
for the Procurement
Professional
Date: Oct. 17-18Location: Midwest City, Okla.Instructor: Leslie Vallie, CPPOHosted by: Oklahoma Association of Public Procurement, Inc. Chapter of NIGP
Contract Administration
Date: Oct. 1 – 3Location: Edmonton, AlbertaInstructor: Ken Babich, BCom, CPPOHosted by: Canada West Chapter of NIGP
Contract Administration
Date: Oct. 15-17Location: City of Brantford, Ont.Instructor: Stan Gal, CPPO, CPPBHosted by: Ontario Public Buyers Association, Inc. Chapter of NIGP
Contracting for
Construction Services
Date: Oct. 2-3Location: Chesterfield, Va.Instructor: Edward Pabor, CPPO, CDT, C.P.M.Hosted by: Virginia Association of Governmental Purchasing, Inc. Chapter of NIGP
Contracting for Public
Sector Services
Date: Oct. 10 – 11Location: Austin, TexasInstructor: David Nash, CPPO, CPPBHosted by: Texas Association of Public Purchasers Chapter of NIGP
CPPB Prep
Date: Oct. 15-16Location: Norristown, Pa.Instructor: Lynda Allair, CPPOHosted by: Pennsylvania Public Purchasing Association Chapter of NIGP
Legal Aspects of
Public Procurement
Date: Oct. 24-26Location: Columbia, S.C.Instructor: James Davis, CPPO, MBAHosted by: South Carolina Association of Governmental Purchasing Officials Chapter of NIGP
Managing Your End-
Users and Suppliers
Date: Oct. 17Location: Des Moines, IowaInstructor: Darin Matthews, CPPO, C.P.M.Hosted by: Iowa Public Procurement Association, Inc. Chapter of NIGP
Marketing 101 For The
Procurement Professional
Date: Oct. 5Location: Tampa, Fla.Instructor: Paul Brennan, CPPOHosted by: Tampa Bay Area Chapter of NIGP
www.govpro.com • GOVERNMENT PROCUREMENT | 55
ADVERTISER INDEX
ADVERTISER ........................................................ PAGE
ACRO SERVICE CORPORATION ............................................38
APPLIED INDUSTRIAL TECHNOLOGIES ..............................33
CARQUEST .....................................................................................34
CERTAINTEED GYPSUM, INC. ..................................................17
ELECTRALED, INC. .......................................................................16
E-Z-GO .............................................................................................19
FABENCO, INC. ..............................................................................8
FORD MOTOR COMPANY .......................................................11
GAMETIME ......................................................................................36
GRAINGER ........................................................................................3
GRAYBAR ........................................................................................37
GTSI CORP. .....................................................................................35
HAWORTH INCORPORATED ................................................32
HD SUPPLY FACILITIES MAINTENANCE ..............................38
HERTZ EQUIPMENT RENTAL CORPORATION ................39
IMAGING SUPPLIES COALITION ..............................................5
INDEPENDENT STATIONERS, INC. ........................................35
INTIRION-MICROFRIDGE ...................................................... IBC
JOHN DEERE ................................................................................IFC
KNOLL, INC. ...................................................................................36
LIFTMOORE INC. ..........................................................................49
MASTERCARD INTERNATIONAL ........................................6, 7
MORBARK INC .............................................................................48
NATIONAL JOINT POWERS ASSOCIATION.......................15
PERISCOPE HOLDINGS..............................................................27
PREMIER INC. .................................................................................34
PUBLIC SOURCING SOLUTIONS ...........................................46
SAFEWARE-MALLORY ...............................................................35
SERVICEWEAR APPAREL ...........................................................31
SIEMENS ......................................................................................... BC
STAPLES ADVANTAGE .................................................................43
TCPN ................................................................................................12
THE GARLAND COMPANY, INC. ............................................34
THE HOME DEPOT ......................................................................40
TORO COMPANY .......................................................................13
U.S. COMMUNITIES......................................................... 28-29, 30
U.S. GENERAL SERVICES ADMINISTRATION .......................9
ZEP, INC ...........................................................................................36
Protests and Disputes:
What’s a Buyer To Do?
Date: Oct. 12Location: Austin, TexasInstructor: David Nash, CPPO, CPPBHosted by: Texas Association of Public Purchasers Chapter of NIGP
Strategic Procurement
Planning
Date: Oct. 17 -19Location: McKinney, TexasInstructor: Edmund Grant, CPPO, CPPB, RPPOHosted by: Dallas Fort Worth Metroplex Chapter of NIGP
Online Courses
Developing and
Managing RFPs
Date: Sept. 4 – Nov. 6Registration Deadline: Aug. 28
Contracting for Public
Sector Services
Date: Sept. 12 – Oct. 31Registration Deadline: Sept. 5
Contract Administration
Date: Sept. 20 – Nov. 22Registration Deadline: Sept. 13
that, yet they failed to provide any concrete insight into how
procurement professionals can get the best possible design-
build project by setting the groundwork for the kind of truly
integrated project that satisfies owner and stakeholder needs.
For example, DBIA has long espoused the view that the
predominant factor in the selection of a design-builder should
be the qualifications of the design-build team. Owners who
choose their design-builders based largely on qualifications
reap substantial benefits – such as increased teamwork,
proactive behavior, and collaboration – that contribute to
project success. These benefits are well-understood by federal
and state agencies. For decades federal and state agencies
have selected their design professionals through qualifications
under the Brooks Act and “mini” Brooks Acts, and have
developed shortlists based on the qualifications of design-
builders proposing under a best value procurement process.
In instances where qualifications-based selection (QBS) is not
viable, DBIA advises using a two-step design-build for projects
that are large or technically complex. The two-step process
relies on an RFQ phase to select the three most qualified
teams to submit proposals. The corresponding RFP should
thoroughly outline project requirements via performance
specifications, establish the criteria for award, and determine
the winning team through a best value selection process.
DBIA educates both owner agencies and their procurement
staffs on how to maximize design-build project delivery
through a synergistic, three-pronged approach that includes:
> Performance requirement that clearly articulate
owners’ needs while providing flexibility,
opportunities for creativity and accountability;
> Source selection processes that ensure
the right team gets the job; and
> Rewards for high performance through aspirational
contracts with awards and incentives.
Yes, it is a different approach that even seasoned procurement
officials may initially feel challenged by. However, these
are the best practices that have been used to successfully
procure numerous and highly complex public projects
including the recently completed renovation of the Pentagon
and the Department of Energy’s much heralded net-zero
National Renewable Resources Laboratory in Golden,
Colo. I have attended numerous Owners-Only Forums at
DBIA’s conferences in which procurement officials have
testified to the success of DBIA best practices even as they
acknowledge that a “mental shift” away from the traditional
design-bid-build mindset is required by all parties involved.
These professionals, from agencies large and small, and
representing federal, state, and local governments, were
excited by design-build not only because it is a cost-effective
means of delivering value to the public but also because
design-build represents an opportunity for engagement
and professional satisfaction beyond business as usual.
— Susan Hines, Managing Director Public
Relations and Information, Design-Build
Institute of America, Washington, D.C.
Continued from page 4
56 | JUNE/JULY 2012
BACK PAGES [fred marks]
FREDERICK MARKS, CPPO, VCO, is a retired purchasing officer who has held positions as a supervising buyer for the Port Authority of New York and New Jersey as well as director of material management for Northern Virginia Community College. Contact Marks at [email protected].
here have been volumes written about professionalism but I would like to explore
the responsibility we take on with our professionalism. Purchasing is not for the
faint of heart; it’s a control position in management with awesome responsibilities, tough
decisions and challenges. It’s for the “look them in the eye” and “stand by your decision”
personality. The weak and wimpy are looked down upon and rarely last long.
Responsibility is knowing the importance of being forthright when confronting a
difficult situation, of not sending an e-mail or a note (or worse yet, having someone else
do it for you), when a phone call or personal visit will solve the problem. It’s not using
position power and undue influence to further a personal agenda. There can be no ego in
what we do! It’s explaining your decisions and not using others to fight your battles.
The monies we collect for our organizations come largely from public funding. We have a
responsibility to treat them as public, even though they may be considered private funds. It
is appropriate and professional for those responsible for expenditures to have a public money
mindset when approving expenditures and contractual agreements. It’s unprofessional and
irregular to use an organization’s money for expenses that exceed the limits of most public
agencies’ protocols. If you are unclear about a situation, use the gold standard of asking yourself
“what would my membership think and how would they react if they knew what I was doing?”
It’s unspoken, and perhaps uncomfortable to discuss, but there is a personal
element of respect and civilized behavior toward each other, both interpersonally
and professionally, that we need to maintain and constantly reinforce.
We have a responsibility to pass the spirit of involvement and volunteerism along to those who come
after us. We have a responsibility to share our moral and ethical capital with our organizations. As
public servants we are taught from the first day to do more for our profession.
The sharing of information and advice among purchasing professionals
sets us apart. Phone calls and e-mails about professional subjects are always
returned with the best and most candid advice the sender can offer.
There is a dual responsibility when we elect those who represent
us on the governing boards of our organizations. Our responsibility
is to elect the very best we have, those with whom we entrust our
destiny. We ask these elected board members to look into the future
and determine where we go as a profession in the next years, and they
have a responsibility to work, think, research, discuss and lead us.
In every chapter and in our national organizations there is a core group of
people who work without credit or ego; without compensation, often paying
to attend classes and conferences out of their own pockets, but with a devotion
to the profession and a desire to help. They are the ones that get up early and
stay late at events. They hand out programs, collect tickets, do the heavy lifting
and are the most reliable of our group. And they recognize the value of what
they do for the profession. They take it as a responsibility. Next time you see one of these special
people at an event that is seamless, make sure you thank them. And if you have never been one of
them, now is the time to start. It’s rewarding for its own sake. Just knowing that you are contributing
is a high form of professionalism. It’s the first step in the ladder of leadership. Poll your board
members and you will find most started as that person on a committee who did the grunt work.
Thank your leaders … and be one
T
/ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮŶŶĞƩĞZŽĂĚ^ƵŝƚĞϯ&ŽdžďŽƌŽDϬϮϬϯϱ;ဒϬϬϲϯϳϳϱϲϳǁǁǁŵŝĐƌŽĨƌŝĚŐĞĐŽŵ$ŐŽƉƌŽDŝĐƌŽ&ƌŝĚŐĞΠĂŶĚ^ĂĨĞWůƵŐΠĂƌĞƌĞŐŝƐƚĞƌĞĚƚƌĂĚĞŵĂƌŬƐŽĨ/ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶΞ/ŶƟƌŝŽŶŽƌƉŽƌĂƟŽŶϮϬϭϮ
ŝŶŽŶĞĐŽŶǀĞŶŝĞŶƚĂƉƉůŝĂŶĐĞDŝĐƌŽ&ƌŝĚŐĞΠǁŝƚŚ
^ĂĨĞWůƵŐΠ allows you to chill and heat your food
ĂŶĚĐŚĂƌŐĞLJŽƵƌĞǀĞƌLJĚĂLJĞůĞĐƚƌŽŶŝĐƐƐƵĐŚĂƐĐĞůů
ƉŚŽŶĞƐůĂƉƚŽƉƐDWϯƉůĂLJĞƌƐĂŶĚĚŝŐŝƚĂůĐĂŵĞƌĂƐ
dŚĞŵŽƐƚƉŽƉƵůĂƌĐŽŵďŝŶĂƟŽŶĂƉƉůŝĂŶĐĞŝŶ
ŵĞƌŝĐĂŽīĞƌƐƚŚĞƐĂĨĞƚLJĂŶĚĞŶĞƌŐLJĐŽŶƐĞƌǀĂƟŽŶ
ďĞŶĞĮƚƐǁŝƚŚ^ĂĨĞWůƵŐΠƚĞĐŚŶŽůŽŐLJ
dŚŝƐŝƐŶŽŽƌĚŝŶĂƌLJƌĞĨƌŝŐĞƌĂƚŽƌDŝĐƌŽ&ƌŝĚŐĞΠǁŝƚŚ
^ĂĨĞWůƵŐΠƉƌŽǀŝĚĞƐ,
(10-Year WarrantyKƵƌŽŶ)ƐŝƚĞƐĞƌǀŝĐĞŽŶůLJĂĚĚƐ
ƚŽǁŚĂƚŝƐďLJĨĂƌĂŶŝŶĚƵƐƚƌLJďĞƐƚǁĂƌƌĂŶƚLJ
(Safe Plug® Technology: ƉĂƚĞŶƚ)ƉĞŶĚŝŶŐƉŽǁĞƌ
ŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵƚŚĂƚĐŽŶƐĞƌǀĞƐĞŶĞƌŐLJĂŶĚ
ƉƌĞǀĞŶƚƐĐŝƌĐƵŝƚŽǀĞƌůŽĂĚƐ
( ƵĂůŚĂƌŐŝŶŐ^ƚĂƟŽŶMakes it easy and
ĐŽŶǀĞŶŝĞŶƚƚŽĐŚĂƌŐĞƉĞƌƐŽŶĂůĞůĞĐƚƌŽŶŝĐĚĞǀŝĐĞƐ
( ŶĞƌŐLJĸĐŝĞŶƚŽŶƐĞƌǀĞĞŶĞƌŐLJƐĂǀĞƵƟůŝƟĞƐ
ĂŶĚƉƌŽƚĞĐƚƚŚĞĞŶǀŝƌŽŶŵĞŶƚ
The Comforts of Home
Answers for infrastructure.
www.usa.siemens.com
Saving energy shouldn’t
mean depleting capital.Let Siemens fund your facility improvements with energy savings.
Aging equipment, sustainability goals and rising
operational costs can add to the pressure to make
energy upgrades. And finding capital to fund the
improvements can be almost impossible. How
can you finance upgrades without capital funds?
Siemens can help you do more with less. With
Siemens performance-based contracts, improvements
are funded by the very energy savings they produce.
This means you can immediately start state-of-the-art
equipment upgrades. Our professionals build custom
solutions to help you lower your operating expenses and
reach sustainability goals. Plus, Siemens guarantees 0%
capital expense to you. If energy-saving goals are not
met, Siemens pays the difference. And 100% of excess
savings are yours to keep. Contact us today and start
making energy efficiency work for you.
