States Working Together WSCA-NASPO Contracting Processes 1

Today’s Public Purchasing Challenges  Unprecented Fiscal Problems  Reduced Administrative Support  A Changing Workforce  Deficit of Citizen Trust and Confidence in Government 2

You Play a Critical & Pivotal Role ! 3

4

Things to Consider  Understand Your Strengths  Understand Your Handicap  What’s the Best Tournament Play Format  Club Selection 5

Cooperative Purchasing  Leveraging Collective Buying Power  Stimulate Competition – Best Value  Reduction of Administrative Time/Expense  Favorable Terms and Conditions 6

Types of Cooperatives  Internal Cooperative – State of Utah is a perfect Model!  Piggyback  Third Party Aggregator  Pure Cooperative 7

Cooperative Purchasing Organizations

Two Organizations

The National Association of State Procurement Officials (NASPO) ● NASPO ─ Established in 1947 ─ Non-profit Association ─ Focus on education, research, and communication ● Membership ─ Chief Procurement Officers ─ Representing States, D.C. and US territories ● Dedicated to Strengthening State Procurement Community

WSCA-NASPO Cooperative Purchasing Organization ● WSCA-NASPO ─ Established as WSCA in 1992 ─ State Purchasing Directors ─ Multi-State Purchasing Arm of NASPO ● NASPO Cooperative Purchasing Organization, LLC ─ Governance Evaluation Process 2012 ─ DBA – WSCA-NASPO Cooperative Purchasing Organization ─ Management Board Structure (21 Members) ─ Regional Representation ─ Roles and Responsibilities

WSCA-NASPO Cooperative Purchasing Organization ● Pure Cooperative ─ Shared Vision and Participation ─ Lead State and Multi-State Sourcing Team ─ Shared Volume ─ Increase market place share ─ Reduce administrative costs

Participation by other “states” from the beginning Participation (through Sourcing Team) in creation of solicitation, evaluation, award and on-going contract management Entirely compliant with State Procurement Laws (including advertising) Executes Master Price Agreement for WSCA Participating Addendum How does the WSCA-NASPO process work? Lead State & Sourcing Team RFP & Evaluation Master Agreement Lead State Individual States Participating Addendums

WSCA-NASPO Sourcing Teams -Chaired by the Lead State -Procurement Experts from several states -Subject Matter Experts from several states - Support from WSCA-NASPO Cooperative Development Team 14

WSCA-NASPO Sourcing Teams - Reimbursement - Lead State - Sourcing Team Members - Participation - Solicitation Development - Evaluation - Contract Administration 15 Reimbursements are paid to sourcing team member employer – NOT directly to the sourcing team member

WSCA-NASPO Funding 16 WSCA-NASPO funded by usage of the master agreements Most master agreements have a modest administrative fee added to the master agreement pricing. Contractor collects the administrative fee and remits it to WSCA-NASPO on a quarterly basis. This is what funds the cooperative. WSCA-NASPO Management Board recently lowered the administration fee from ½ of one percent to ¼ of one percent for new and re-competed contracts making our administration fees the lowest of any public purchasing cooperative.

Admin Fees Comparison 17 Organization Administrative Fee (Percent of Total Sales) WSCA-NASPOUp to.25% US Communities1% to 2.5% National Joint Powers Alliance2% Cooperative Purchasing Network2% Educational & Institutional Cooperative Purchasing3% Novation2.10% Minnesota Multistate Contracting Alliance for PharmacyUp to 3% U.S. General Services Administration.75% to 2.0%

WSCA- NASPO Utah How does it all fit together with State Contracts?

WSCA-NASPO Price Agreements ● WSCA-NASPO is about Strategic Alliances and Sourcing ─ WSCA-NASPO Contracting Areas 50 ─ Number of Suppliers 200 ● A Partial List of Commodities include: Auto Parts Body Armor Computers Copiers Data Comm. Equip Facilities MRO Tools Office Furniture Vehicle Rental Services Office Supplies Procurement Cards Radios Small Package Delivery Services Tires Wireless Communications (Cell Phones & Data) $9.7 Billion Spent in 2013

$4.9 Billion$5.1 Billion$6.2 Billion$7.1 Billion$8.4 Billion$9.7 Billion 4%22%15%18%16% Increase from previous year

Participants States States States States States States $1.5 Billion$2.1 Billion$2.8 Billion$3.5 Billion$4.3 Billion$5.0 Billion 40%35%22%24%17% Increase from previous year

Participants States States States States States $2.6 Billion$2.0 Billion$2.3 Billion$2.5 Billion$2.6 Billion$2.8 Billion -22%13%8%4%8% Decrease fromIncrease from previous year

Participants States States States States States $750 Million$825 Million$950 Million$1 Billion$1.1 Billion 10%15%12%7% Increase from previous year

Participants States States States States $303 Million$368 Million$383 Million$317 Million$446 Million$518 Million 21%4%-17%41%16% Increase from Decrease fromIncrease from previous year

Participants States States States $50 Million$113 Million$123 Million$149 Million$204 Million$243 Million 124%9%21%37%19% Increase from previous year

Participants States States States $26 Million$76 Million$138 Million 196%81% Increase from previous year

Participants States States States States States States $63 Million$76 Million$96 Million$113 Million$111 Million$117 Million 21%27%18%-2%5% Increase from Decrease fromIncrease from previous year

Participants States States States $33 Million$35 Million$34 Million$42 Million$59 Million$64 Million 5%-4%23%42%9% Increase fromDecrease fromIncrease from previous year

Participants States States States States States $1 Million$19 Million$34 Million$58 Million$75 Million 1344%79%73%29% Increase from previous year

Participants States States States States $51 Million$71 Million$74 Million$79 Million 38%4%6% Increase from previous year

Participants States States States $33 Million$35 Million$34 Million$42 Million$59 Million$64 Million 5%-4%23%42%9% Increase fromDecrease fromIncrease from previous year

Participants States States States States State $384,455$6 Million$16 Million$24 Million$26 Million 1475%163%53%8% Increase from previous year

Participants States States States States $2.5 Million$8 Million$14 Million$19 Million 213%74%37% Increase from previous year

Participants States States State $71,704$891,358$9.7 Million 1143%994% Increase from previous year

Participants States States States $386,905$1.3 Million$1.6 Million$2.6 Million4.6 Million5.4 Million 249%21%60%76%19% Increase from previous year

Participants States States States States $2.1 Million$2.4 Million$775,971$1.8 Million$2.4 Million 16%-68%137%29% Increase fromDecrease fromIncrease from previous year

Participants States States States States States States $465,000$1.2 Million$2.4 Million$2.9 Million$3.3 Million$4.3 Million 168%95%19%15%30% Increase from previous year

Participants States States States $151,873$3.1 Million$5.1 Million 1679%63% Increase from previous year

Number of Sourcing Team Members

Utah also Leads 0 Background Screening Services – Nikki Sanchez 0 Contract Compliance – Jeff Mottishaw 0 Educational Furniture – Terri O’Toole (new July 2014) 0 eProcurement Solutions – Jeff Mottishaw 0 Office Furniture – Terri O’Toole ($9 Million in 2014 Quarter 2 –9 states) 0 Public Cloud Hosting Services – Jeff Mottishaw 0 Wireless Management Services – Jeff Mottishaw 0 Floor Coverings & Installation – Terri O’Toole (in process) 40

States Represented on Sourcing Teams

eMarket Center Number of Vendor Catalogs and Punchouts Available

eMarket Center Purchases – (Total $13.3 Million since beginning)

eMarket Center Transactions – (Total 10,831 since beginning)

Douglas Richins, C.P.M. Chief Executive Officer WSCA-NASPO Cooperative Purchasing Organization (801)