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COOPERATIVE PURCHASING The Benefits of Cooperative Purchasing with School Districts and Other Public Entities A Presentation to the MPS Governing Board.

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Presentation on theme: "COOPERATIVE PURCHASING The Benefits of Cooperative Purchasing with School Districts and Other Public Entities A Presentation to the MPS Governing Board."— Presentation transcript:

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

2 What are Cooperatives? Cooperative Purchasing means procurement conducted by, or on behalf of, more than one public procurement unit. Cooperative Purchasing means procurement conducted by, or on behalf of, more than one public procurement unit.

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

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

5 The Cooperative Arena Types TypesState/School/City/Interstate How Do We Get Involved w/Them How Do We Get Involved w/Them More Highly Visible Than in the Past More Highly Visible Than in the Past

6 Advantages of Cooperative Purchasing Cost Savings (Economies of Scale) Cost Savings (Economies of Scale) Purchasing Power Purchasing Power Standardization of Requirements Standardization of Requirements Reduction of Administrative Duplication Reduction of Administrative Duplication More Efficient Utilization of Resources More Efficient Utilization of Resources Greater Breadth of Expertise Greater Breadth of Expertise Reduction in Responses for Vendors Reduction in Responses for Vendors Timelines Can Be Reduced Timelines Can Be Reduced Networking/Learning Opportunities Networking/Learning Opportunities Lots of Options/Budgets Stretched Lots of Options/Budgets Stretched

7 Disadvantages of Cooperative Purchasing Timing of the Bid/RFP Timing of the Bid/RFP Increased Coordination/Planning Increased Coordination/Planning Standardization of Requirements Standardization of Requirements Contract Administration Responsibilities Contract Administration Responsibilities Potential Lack of Expertise Potential Lack of Expertise Auditing Becomes More Complicated Auditing Becomes More Complicated Resistance to Change/Vendor Complaints Resistance to Change/Vendor Complaints Confusion About Contract Availability Confusion About Contract Availability Code Compliance/Contract Terms Code Compliance/Contract Terms Research, Research, Research Research, Research, Research

8 Purchasing Responsibilities Our roles and responsibilities as procurement professionals are very different than they were even 5 years ago as a result of due diligence requirements. Our roles and responsibilities as procurement professionals are very different than they were even 5 years ago as a result of due diligence requirements. This is Purchasings time to shine! This is Purchasings time to shine! The only sure thing is… The only sure thing is…

9 CONSTANT CHANGE

10 TheMPSPurchasing Website Website

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23 Cooperative Purchasing Mesa Public Schools is a member of and participates in the following purchasing consortiums: Arizona State Contracts (AZSPO) Arizona Dept of Education Contracts Mohave Educational Services Cooperative (MESC) The Cooperative Purchasing Network (TCPN) Greater Phoenix Purchasing Consortium of Schools (GPPCS) Strategic Alliance for Volume Expenditures (SAVE)

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29 MPS SAVE Contracts Issued The following SAVE contracts have been issued by the MPS Purchasing in the last 12 months: RFP MB Shade Structures RFP 29-14MP Grant Writing RFP 29-72MP Education & Prevention Program Consultant Services Program Consultant Services Bid 28-53MB Fencing Bid 29-58MP Contracted Transportation

30 Our Newest Partnership: AZPurchasing.org

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37 Proposed Partnership: MPS as a Principal Procurement Agency on Behalf of National IPA Consortiumfor Educational Furniture

38 National IPA Educational Furniture Cooperative What is in it for MPS? National Bulk Buying Power Directly from Manufacturers National Bulk Buying Power Directly from Manufacturers Tap IPAs Expertise Tap IPAs Expertise Rebate Potential as a Possible Revenue Source Rebate Potential as a Possible Revenue Source MPS gains recognition as a national Leader in Educational Furniture Purchasing MPS gains recognition as a national Leader in Educational Furniture Purchasing

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41 Summary There are several types of Purchasing Cooperatives that offer a great resource for the MPS Purchasing Departments and its Vendors, it is our fiduciary responsibility to seek out these opportunities and maximize the value of the MPS purchasing dollar. There are several types of Purchasing Cooperatives that offer a great resource for the MPS Purchasing Departments and its Vendors, it is our fiduciary responsibility to seek out these opportunities and maximize the value of the MPS purchasing dollar. Cooperatives provide the means to achieve cost- effective and efficient acquisition of quality products and services. We as procurement professionals are ready to educate and enlighten the public on this form of procurement. Cooperatives provide the means to achieve cost- effective and efficient acquisition of quality products and services. We as procurement professionals are ready to educate and enlighten the public on this form of procurement. Save Taxpayers $$$$$$$$$$$--MPS financial gains and opportunities are expanded through cooperative purchasing. Save Taxpayers $$$$$$$$$$$--MPS financial gains and opportunities are expanded through cooperative purchasing.

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