Newsletter - December 2017 Print

Meeting Minutes

Meeting Minutes

Minutes of the VALUE Meeting
November 15, 2017

Present   
  Name Organization
Barwick, Robert City of West Allis
 x Fleming, Matt Kenosha County
  Hartmann, Roy Washington County
  Jacobson, JoAnne Port Washington/Saukville School District
  Jeffries, Karen City of Milwaukee
  Kurer, Bill Washington County
  Martin, Catherine Waukesha County
McKinney, Duane Racine County
 x Matz, Cindy Walworth County
x Nash, Vicky Waukesha County Technical College
Schaack, Beth City of Waukesha
 x Schleimer, Laurel City of Wauwatosa
White, Jen Milwaukee Metropolitan Sewerage District

 

 

 

 

 

 

 

Common Solutions / Open Forum Discussion

  • Duane asked how difficult of a process it is to switch p-card programs?  The JP Morgan Chase system was just extended through May to accommodate the switch many agencies are making to the State program with US Bank or to allow them time to negotiate a new contract with Chase.  We discussed some of the details to potentially switch, but nobody has actually switched programs.

  • Duane asked if anyone uses DocuSign.  Cindy indicated they use this system.  DocuSign allows you to securely encrypt the contract and collect electronic signatures internally and externally.  The Committee discussed the features of DocuSign.

  • Robert asked if anyone bids out their lawn cutting for boulevards.  He indicated that of the public entities he asked, those who bid out this service subsequently brought the work back in-house because the employees are lowest paid and seasonal, and because the entity already owned the equipment.  Nobody on the Committee has bid out this service recently.  The various things that must be considered to bid this out were discussed – bid bonds, risk, specs, map of the locations for service to be provided, etc.  It was suggested that a list of prequalified vendors might be a way to approach the issue.  Jen indicated she has a list of prequalified vendors for landscaping services and a sample bid which she will share.

  • Cindy asked if anyone who uses a fingerprinting system bid out that system, or was it a sole source?  Who did they buy the equipment from?  Matt said he thought Portage County had purchased one and that they bought off GSA.  He will let Cindy know if he can locate the vendor awarded the contract.

  • Cindy asked who does the installation for telephone data installs (installing phones, copiers, faxes, etc.) at their agency, and whether they bid out this service.  Everyone indicated they used either the CDW-G contract or their in-house people performed this work.  However, any electrician can do this, and there is likely a list of electricians on one of the State contracts.

Business Meeting 

 

Beth mentioned she will be attending a leadership class on Wednesdays for the next several months and will not be able to attend several of the VALUE meetings.  She shared that one of the books she is reading, called “A Whole New Mind” by Daniel H. Pink, might assist us with determining what future services VALUE might be able to provide for its members.  Larger companies are hiring less analytical people to determine what their goals should be – they’ve already outsourced the cost portions to bring down costs (left brain activity), and the individuals who are more “right-brained” are now being hired to determine what other advantages can be offered to consumers for the products they sell.  We discussed that Purchasing needs an advocate to initiate more modern purchasing methods for recommending and initiating conversations for changes to acceptable purchasing processes that meet the essential components of transparency and fairness while simultaneously speeding the purchasing process.

Treasurer’s Report as of 10/31/2017:

Checking:  $13,368.56
Savings:  $10,013.24

New Members:  Milwaukee Public Schools

Hiring a Financial Advisor:
Matt reached out to two vendors regarding our needs, as discussed in prior meetings.  One response was received to date, from Reinhart Law.  The options include:

  • Do Nothing
  • Dissolve
  • Incorporate and become our own organization
  • Become a committee of WAPP
  • Become a separate organization similar to WAPP, but under NIGP, National Procurement Institute Inc (NPIconnection.org), American Purchasing Society, or another similar organization

 

We briefly discussed the pros and cons of each option.  At our January meeting, Matt requested that the Committee consider which option they would like to pursue.

December Meeting
The December meeting will be by invitation only, and will be held at the Water Street Brewery in Grafton on December 13.  We will meet at the restaurant at 11:00 am.  JoAnne Jacobson will be joining us.

Annual Meeting Planning

The registration table will be staffed by:

  •       Duane McKinney, Racine County
  •       Laurel Schleimer, City of Wauwatosa


Vicky Nash will reach out to Sung Ye Jacobs (Retired, Milwaukee County) to see if she would be interested in assisting again this year.  Cindy Matz will reach out to Nick Cramer (Walworth County) to see if he would also be interested.

JoAnne Jacobson will be stepping down as our Treasurer.  We discussed candidates for taking on this role for our Committee.

Robert Barwick is working on filling the 3:00-5:00pm presentations for Friday.  Jeff Holden of NASPO ValuePoint is considering the request for a presentation, as is the representative from US Bank.  Robert indicated he should have more information on Monday.

We discussed the timeline for finalization of the agenda, and it was agreed we needed finalization no later than our January meeting.

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Government Procurement

Cooperative Purchasing: Where is it Headed?

Derek Prall and Brent Maas

Government Procurement Magazine

Heading

Cooperative purchasing, as a concept, dates back to the ‘30s, but modern co-ops really established themselves during 2008’s Great Recession. During this period, government staffing took a huge hit, one from which procurement departments never really recovered. But as they’ve grown in popularity, co-ops are now going through the growing pains of adolescence, so to speak. Brent Maas, the executive director of business strategy and relationships for NIGP: The Institute for Public Procurement, says co-ops are coming into their own, in a sense, establishing their ongoing presence in the procurement world and understanding how they can best serve their customers. There are several trends emerging right now, he says, that will be important in the years to come.

1. Contract Complexity

In decades past, governments used to engage in what was almost line-item contracting, says Gary Link, senior vice president with E&I Cooperative Services, and soliciting these highly specific contracts was extremely labor intensive. Due to the reductions in manpower, this type of contracting became impossible and solicitations became more general. Co-ops were able to step in and provide contracts for “office supplies” rather than a specific type of pen.  

In the beginning, it was really the most “commoditized of commodities” that governments were cooperatively purchasing says David Yarkin, president of Government Sourcing Solutions.. These contracts had very low risk and very low complexity. Now, he says, contracts are continuing to evolve, becoming more complex to encompass everything from technology to construction.

“It’s interesting that in the early stages [cooperative purchasing] started off with the most simple categories,” Yarkin says, “but now it’s being used for virtually any category that’s broad enough to work for multiple governments.”

2. Inclusivity and flexibility

Times change, and so do priorities. Responding to an increased focus on inclusivity and fairness in all aspects of culture, co-ops, and procurement officers in general, have increased their attention to small businesses – particularly those run by women, minorities, the disabled or veterans.

“In many cases, a cooperative contract established for members of a co-op nationally is held by a national company,” Yarkin says. “The cooperatives have gotten smarter and have made those contracts flexible enough to allow the national companies to work with smaller, local and regional companies – often as subcontractors.” By becoming more flexible, co-ops are helping governments achieve their local, small- and disadvantaged business goals.

This is extremely important to Jamie Rhee, chief procurement officer for Chicago. “We have a vibrant and thriving women- and minority-owned business community here,” Rhee says. “We look at every contract as an opportunity for these smaller businesses to participate in government contracting and build capacity.” She adds Chicago has over a dozen programs to build this capacity among smaller, local businesses.

Co-ops, Rhee says, are picking up on this increased focus on local business. “We insist there are participation goals placed on our [cooperative] contracts to ensure a local component,” Rhee says. “You can have the national-level contract through co-ops and still get the local presence through the use of subcontracting.” Because Chicago and other cities have made this a priority, Rhee says co-ops are becoming more flexible, allowing local subcontracting to add value to local economies.

Conversely, co-ops that are not as flexible are less likely to be utilized in today’s marketplace. “We’ve had discussions where we thought we were going to be able to utilize a co-op, and we just couldn’t come to terms because they couldn’t make commitments to the local vendors,” Rhee says. “We had to go elsewhere. 

Link agrees that this increased focus on inclusivity is helping small businesses. “What we’ve been able to do in the industry is really help small businesses,” he says. This is making cooperatives more effective today than they were in the past. We were just looking at the best ways to aggregate volume, now we’re looking at how we can be a better value-added service.”

3. Increase in Options

Another emerging trend, according to Yarkin, is an increase in the number of cooperative options procurement professionals can look to for solutions. “There was a time a while back where a government would only look at one cooperative to solve their problem,” Yarkin says. However, the procurement officer of 2017 has myriad challenges they are trying to solve, and the complexities of these challenges have forced modern procurement officers to go beyond their traditional, fallback solutions.

The driving force behind these broadening horizons is twofold: an increase in the overall number of co-ops and their drive to differentiate themselves from their competition.

“An important attribute is transparency, says Jeremy Schwartz, director of cooperative contracts and procurement for the National Joint Powers Alliance (NJPA).,” “When someone wants to look and see how a procurement process was conducted, they should be able to access all the necessary documentation to validate it was conducted competitively, and to validate how pricing was originated and how decisions were made. Transparency is a basic expectation.”

Additionally, as more and more contracts become available, service is quickly becoming another differentiating factor. “Regardless of how you conduct your competitive procurement process, there will always be the opportunity to differentiate yourself with service and responsiveness,” Schwartz says.

A third differentiator, according to Link, is analytics to help organizations achieve their goals – cost savings, process, or otherwise. “Analytics plays a major role in what we do,” he says. “This is an area that is a differentiator for us in that we focus an incredible amount of time on understanding our members’ spend… Data and information analytics have become a very integral part of what we do in understanding what our members are doing and projecting where they’re going in terms of spend.”

4. Cooperative Cooperatives

As partnerships are forged and networks grow, Yarkin says we’re starting to see co-ops being cooperative with each other. This is a trend that’s just starting to emerge, Yarkin says, “but I think it’s a great development for procurement officers that cooperatives are trying to find ways to solve problems for their members instead of being competitive with one another.”

Schwartz agrees that teamwork among cooperatives is becoming a priority. “Although there are a lot of options out there, we think highly of our public procurement peers as well as those that are providing alternate options,” he says. “We believe we are best when we collaborate and communicate with others. We believe a collegial, professional dialogue... will help us provide a higher level of service across the board.” Better Utilizing Co-ops

For procurement officials considering expanded use of cooperative purchasing, Yarkin says it’s important to look at all the options with an open mind. “It’s easy to fall into the trap of thinking that your organization can do any contract better than anyone else can,” Yarkin says. “It’s good to have pride in the abilities of your team, but … realize that there are other organizations that can do contracts well, too.”

It’s also important to ensure that the legislative bodies involved understand cooperative purchasing – its goals, its benefits and its function. “To the layperson, it might seem confusing and they might think you’re not conducting a bid,” Yarkin says. “When in truth, someone else has done the bid on your behalf, and you’re leveraging competition that already took place.” That’s why educating legislators on the fundamentals of cooperative purchasing is important from the beginning.

Yarkin also advises to not let the perfect become the enemy of the good. There are many cooperatives and a wealth of very good contracts. It would be impossible to go out and look at every single contract in a particular product category offered across the country, he says. The procurement officer’s job is to find the best value for taxpayers, and time savings should be factored into this equation. If a cooperative contract will add value to your department, it should be utilized rather than fretted over. What’s next?

For the past 10 years, the arrow has only been pointed in the direction of more cooperative purchasing. Yarkin does not expect this to change anytime soon. He foresees a relaxing of state and local regulations that currently limit the use of co-ops, and with this increased freedom, a steady growth in cooperative purchasing’s popularity.

Standardization in practice will also become important in the coming years, but won’t come easily due to the complex nature of cooperative purchasing and procurement in general. “It’s like any industry when you have thousands of public procurement professionals trying to find some common themes they all agree are must-haves, versus having 100 perspectives on must-haves and none of them really meshing,” Schwartz says. “That is the challenge – collecting those subject matter experts and having them agree.”

This idea of standardization leads to the question of accreditation, but who will be the accrediting body, and what will its processes be? NIGP has created an accreditation program already, but acceptance isn’t universal. The problem, Link says, is that there are so many different co-ops in existence, which have all been working to differentiate themselves from the others. It’s exceedingly difficult to come up with a standardized list of criteria for accreditation while taking into account the overwhelming complexities of the marketplace.

Regardless of these challenges, Maas says that over the next five years, local government leaders can expect uninterrupted use and sustained growth of cooperative programs as they continue to evolve to meet the diverse needs of the thousands of agencies who take advantage of them. “The good news for procurement professionals,” Maas says, “is that cooperative programs committed to sustaining the integrity of cooperative practice continue to adopt and implement a standard of practice that aligns more consistently with the transparency, reporting and procedural requirements of public entities.”

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Piggyback Updates

Pig

Below are changes or additions to the various piggyback opportunities available to VALUE member agencies.  Visit the piggyback page on the VALUE website, and click on the Pig to see the full list.

Do you have a contract to add to the list? Contact cmatz@co.walworth.wi.us to add your contracts to the piggyback list!

New Contracts

Asphalt Concrete
Barricade Flashers
Cable - Traffic Signals
Mental Health Consultation Services
Quick Set & Portland Cement

Snow Plowing, Salting & Removal Services

 

Contract Extensions

Aftermarket Auto Parts & Supplies
Applicant Tracking/Testing Software
Dairy Products
De-Icing Chemical - Beet 55
De-Icing Chemical - Ice Melt
De-Icing Chimical - Liquid Calcium Chloride
Employee Service Recognition Rewards
Food Products & Supplies
Vending Machine Services
Water Softener Salt

 

Contract Expirations

Actuarial Services
Brass Fittings & Miscellaneous Repairs
Calcium Chloride
Cleaning of Exhaust Ducts & Hoods
Content Management System
Copper Tubing
Domestic Violence Victim Liaison Svcs
Hardware & Industrial Supplies
Pest Control Services
Plastic Bags & Can Liners
Water Treatment Services
Weapons Screening Services

 

 

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State of Wisconsin Contract Updates

Wisconsin

Updates to State of Wisconsin contracts are issued weekly by the State of Wisconsin.  VALUE is reprinting the weekly information received as a courtesy to our members. 

The following contracts have been updated for the week of 11/6/2017 - 11/10/2017:

505ENT-O18-NASPOMAILEQ-00 NASPO ValuePoint Mailroom Equipment, Supplies and Maintenance - Stamps.com is listed as being non-compliant for Wisconsin Collection of Sales and Use Tax. At this time until they correct this problem their contract is on-hold.

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Updated Dealer Contact List

505ENT-M15-RELAYSERVC-01 Telecommunications and Captioned Relay Services - Updated the contract administrator to Jenna Schmidt.

 

The following contracts have been updated for the week of 11/13/2017 - 11/17/2017:

505ENT-M08-CENTRXSOLA-01 Centrex Services (Wood County Telephone Company d/b/a Solarus) - Amendment 2: Contract term was extended to April 30, 2020.

505ENT-M14-OFFSUPPLY-01 STATEWIDE GENERAL OFFICE SUPPLIES AND NEW TONER - Posted 2017 THANKSGIVING HOLIDAY DELIVERY SCHEDULE

505ENT-M15-BSI OFFURN-01 MANDATORY STATEWIDE OFFICE FURNITURE CONTRACT - BADGER STATE INDUSTRIES (BSI) - Posted updated TIPS FOR ORDERING FURNITURE

505ENT-M15-OFFURNITUR-00 STATEWIDE OFFICE FURNITURE - Posted updated TIPS FOR ORDERING FURNITURE.

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Added Resilient Product For Adair.  Added Resilient Products For Halverson

505ENT-M18-ELCPLSUPLS-00 Electrical & Plumbing Maintenance, Repair & Operating Supplies (MRO) - Neher has been added to the list of Electrical & Plumbing vendors who currently have a catalog enabled on WISBuy. We continue to work with all other awarded vendors to get catalogs up and running.

 

The following contracts have been updated for the week of 11/20/2017 - 11/24/2017:

505ENT-M16-CLEANGCHEMS-00 Cleaning Chemicals - Added a notice to end users in the contract synopsis section.

505ENT-M14-WTRTRTMHAC-00 Contract Information for water treatment program for Heating and cooling systems for Areas 2, 3, 4 & 5 - Added US Water Price Sheets for 2018

 

The following contracts have been updated for the week of 11/27/2017 - 12/1/2017:

505ENT-M15-PROPANESVC-00 Propane / LP Gas – Statewide - Updated location and price list.

505ENT-O15-FUEL DSCNT-00 State Fleet Fuel Discount Program - Updated station location spreadsheet.

505ENT-M15-MFDCOPIER-00 Copiers and Related Devices - Contract manager changed from Derge to Raudonis

505ENT-O16-NASPOCOMPUT-00 NASPO Computer Equipment, Peripherals, and Related Services - Contract manager changed from Derge to Raudonis

505ENT-M17-WICOMPUTER-00 Computer Equipment and Related Services - Contract manager changed from Derge to Raudonis

505ENT-O15-FLOORING-00 Statewide Flooring Including Commercial Carpet, Resilient Coverings (Virgin and Recycled) and Related Services - Added Resilient Products for Halverson

505ENT-M18-RECORDSBOX-01 STATEWIDE RECORD STORAGE BOXES - New contract

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NIGP Webinars

NIGP

NIGP Webinars

 

A Beginners Guide to Writing Specifications for Service Solicitations

Date:  January 9, 2018
Time:  1:00-2:30 CST

Some lessons are learned the hard way. Many Procurement Professionals would agree that many of the most painful lessons and contract controversies could have been avoided through careful planning, consideration, or anticipation during specification development. During this interactive work session, participants will receive tips that will help them to avoid potential challenges in future Service Contract and will be encouraged to discuss some of their own lessons learned.

 

NIGP Class

Contract Administration in the Public Sector

Dates:  January 9, 2018 - March 15, 2018

This is an on-line class.  On a weekly basis, learners will be required to:
  • Complete reading assignments from the textbook and other articles provided within the course. Participants may always read ahead.
  • Respond to discussion questions posted by the instructor on the discussion board.  Participants answer with a well thought-out response and also comment on other students' responses.
  • Collaborate within a team to complete and submit an online assignment, allowing participants to apply contract administration principles to situations. Individuals are responsible for contributing fully to the group assignments.
  • Complete a self-assessment that reviews the terminology and concepts introduced during the week.

 

At the end of the eight weeks, participants must achieve a passing score of 70% on the final exam.

Course participants will receive a non-printable eBook version of the Contract Administration text. Hardcover textbooks are available to registrants as a 40% discount through the NIGP online bookstore. The course confirmation email will contain the discount code needed to apply towards the purchase of the hardcover text. 

 
If you wish to take the face-to-face Contract Administration course instead, please view the course catalog. The content and final exam is the same for both course types. Successful completion of the online course will earn 24 contact hours for the learner. NIGP will not issue partial contact hours.

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