Piggybacking vs. Bidding: A Quantitative Analysis

Report
Piggybacking vs.
Bidding:
A Quantitative
Analysis
Jeff LaPorta: Supervisor of Purchasing,
Harford County Public Schools
Eric Younkin: The Garland Company
Tyler McCall: US Communities Program
Manager
Piggybacking
Why Do It?
Soft Cost Savings
But…How Much?
What Do We Need To Know To
Calculate Savings?
What Are The Steps Involved In A Bid?
Who Is Involved In The Process?
What Is The Cost For Them To Do This?
What Are The Steps Involved In A Bid?
•
•
•
•
•
•
•
•
Work With The End User For S.O.W.
Review Specifications & Finalize Bid
Pre-Bid Conference
Process Questions From Pre-Bid
Bid Opening
Analyze Bid Responses
Evaluate Bid Tab & Determine Awardee
Complete Paperwork; Contract, Board Letter,
etc.
Who Is Involved In The
Process?
•
•
•
•
Purchasing Agent
Purchasing Assistant
Project Manager/End User
Legal Office?
What’s Next?
How Long Does It Take To Do A Bid?
How Long Is Each Person Involved?
Item
Action
Buyer Time
End User
Time
Clerical
Time
Total hours
1
Work w/ end user for scope of work/items needed;
Finalize Bid; Send to end user for final review; Post &
Complete Bid Folder
30
8
3
41
2
Hold Pre-Bid Conference
1.5
1.5
2
5
3
Answer questions, respond to inquries; Issue
Addendum
0.75
0.75
0.5
2
4
Bid Opening / Bid Tab
0.5
0.5
1
5
Evaluation
4
0
4
6
Complete Paperwork (i.e. contract, correspondence,
etc.), Present to Board
1
0.75
1.75
10.25
6.75
54.75
42.40
$ 47.69
$ 22.69
Total Amount Spent Per Person $ 1,600.75
$ 488.85
$ 153.17
Total Hours
Average Hourly Rate $
37.75
Total Amount Spent to Complete Bid & Total Amount Saved by Piggybacking $2,242.76
Buyer Salary
Benefits Cost
Total Buyer Labor Cost
Buyer Hourly Rate
Project Mgr/End User Salary
Benefits Cost
Total Project Mgr/End User Labor Cost
End User Hourly Rate
Assistant Salary
Benefits Cost
Total Assistant Labor Cost
Assistant Hourly Rate
$76,000
$12,200
$88,200
$42.40
$87,000
$12,200
$99,200
$47.69
$35,000
$12,200
$47,200
$22.69
Cobb County, GA & The Garland
Company, Inc.
Benchmarking Cost Savings
The Garland Company
•U.S. Communities Roofing Products and
Services Contract
•Cobb County, GA is Lead Public Agency for
contract
Things to Consider
• What are specific requirements for certain
types of bids?
– ITB vs. RFP
– Does the Cooperative Contract meet these
requirements
• What does the Cooperative Contract provide
to bring value?
• Are there additional savings for other
departments upon contract award?
Cobb County, GA Study
• Things to considers
– Garland’s contract provides design assistance as
part of the overall package
• Typical design fees 7-10% of total project cost
– Project/Construction Management throughout
the entire process/project
• Saves facilities staff time during construction process
– Life cycle cost studies for various roof systems to
quantify final cost
– Time Savings for Purchasing and Facilities
Lets Look at the Analysis
Agency Time and Money Savings
Value-Added Services Provided
• Estimated initial project cost - $275,000
• New cost - $242,766 = 11% savings
www.uscommunities.org
National Cooperative Purchasing Program
• No cost to use; no commitments or minimum order requirements
• Operates on the same principles as local and regional
cooperatives
• National structure for public agencies to aggregate collective
purchasing power – over 60,000 agencies registered
• Improves the overall effectiveness of the purchasing processes
• Nonprofit organization: partnership dedicated to establishing
solutions to save time and money
• Dedicated team of field and administrative professionals to ensure
supplier performance and public agency benefit
www.uscommunities.org
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Presence and Credibility
National Association of
Counties (NACo)
National League of
Cities (NLC)
Association of School
Business Officials
International (ASBO)
NIGP: The Institute for
Public Procurement
United States Conference
of Mayors (USCM)
State Sponsors:
Over 90 State Sponsors Nationally
www.uscommunities.org
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Advisory Board
Professional Oversight: Advisory Board of well-respected public procurement
professionals to ensure responsible and ethical best practices
Auburn University, AL
City of Chicago, IL
City and County of Denver, CO
City of Houston, TX
City of Kansas City, MO
City of Los Angeles, CA
City of San Antonio, TX
City of Seattle, WA
Cobb County, GA
Denver Public Schools, CO
Emory University, GA
Fairfax County, VA
Fresno Unified School District, CA
Great Valley School District, PA
Harford County Public Schools, MD
Hennepin County, MN
Los Angeles County, CA
Maricopa County, AZ
Miami-Dade County, FL
Nassau BOCES, NY
North Carolina State University, NC
Orange County, NY
Port of Portland, OR
Prince William County Schools, VA
Salem-Keizer School District, OR
San Diego Unified School District, CA
The School District of Collier County, FL
Advisory Board Program Purchased Over $146 Million in 2013
www.uscommunities.org
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Eligible Agencies
• Cities
• Counties
• Special Districts
• K-12 (Public or Private)
• Universities and Colleges (Public or Private)
• Nonprofit Organizations
• State Agencies
www.uscommunities.org
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Registration Growth
70000
6,945
60000
6,195
50000
5,251
4,735
40000
4,802
4,925
30000
20000
6,500
4,800
5,449
10000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013
www.uscommunities.org
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Solicitation Process: Lead Public Agency Model
• Solicitations are run by a Lead Public Agency (LPA)
 The RFP or ITB is issued by the LPA and posted online
 National evaluation team - public procurement officials from 3
to 5 public agencies across the country
• Evaluation is performed and award is made
• Contracts are held and managed day to day by LPA
• All RFP/ITB and Contract documents are available on
www.uscommunities.org
• LPA’s are available for questions about solicitation
www.uscommunities.org
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Solutions
www.uscommunities.org
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Supplier Savings Example
•
Each supplier has committed their U.S. Communities price is their best
overall government pricing
•
Hertz – discounts from 15-55%, average savings of 20-30%
•
Applied Industrial Technologies – 10-70% discount
•
Ricoh family of copiers – up to 67% discount
•
The Home Depot – up to 3% rebate on annual purchase amounts
•
Independent Stationers – ability to use local office supply dealers and save
up to 86% off list pricing
www.uscommunities.org
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•
•
•
•
•
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Free to U.S. Communities participants
Single source login for access to multiple suppliers
Immediate visibility into products and pricing
Ability to make purchases with p-card or credit card
Provides comprehensive reporting
Eliminates paper entirely – your green procurement solution
www.uscommunities.org/shop
www.uscommunities.org
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How to Participate
www.uscommunities.org/register
1.
2. Complete registration information
3. Can register more than one dept. and buyer
4. Registration enables agency to use program and to be
automatically notified of new contracts and solutions
Already a customer of a supplier partner?
Never worked with a company?
 Work directly with your current
 Work with Program Manager to connect with
representative and request “best
U.S. Communities member pricing”.
 Pay exactly as you always have.
www.uscommunities.org
sales representative.
 Set up an account and pay the company
directly.
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Program Information
www.uscommunities.org
• Register online
• Authorizing legal statutes
• Frequently asked questions (FAQ) sheet
• Documentation: original solicitation and contract
• References: Advisory Board members, state sponsors
• Supplier links, product information & contact information
• Participant login page
www.uscommunities.org
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Contact Information
www.uscommunities.org
Tyler McCall
• U.S. Communities
• Cell: 704-776-3193
• [email protected]
www.uscommunities.org
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