Piggybacking vs. Bidding: A Quantitative Analysis
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Transcript of Piggybacking vs. Bidding: A Quantitative Analysis
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?
• 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.
What Are The Steps Involved In A Bid?
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 15 Evaluation 4 0 4
6 Complete Paperwork (i.e. contract, correspondence, etc.), Present to Board 1 0.75 1.75
Total Hours 37.75 10.25 6.75 54.75
Average Hourly Rate $ 42.40 $ 47.69 $ 22.69
Total Amount Spent Per Person $ 1,600.75 $ 488.85 $ 153.17
Total Amount Spent to Complete Bid & Total Amount Saved by
Piggybacking $2,242.76
Buyer Salary $76,000Benefits Cost $12,200Total Buyer Labor Cost $88,200
Buyer Hourly Rate $42.40
Project Mgr/End User Salary $87,000Benefits Cost $12,200Total Project Mgr/End User Labor Cost $99,200
End User Hourly Rate $47.69
Assistant Salary $35,000Benefits Cost $12,200Total Assistant Labor Cost $47,200
Assistant Hourly Rate $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
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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
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Association of School Business
Officials International (ASBO)
State Sponsors: Over 90 State Sponsors Nationally
Presence and Credibility
National Association of Counties (NACo)
NIGP: The Institute for Public
Procurement
National League of Cities (NLC) United States
Conference of Mayors (USCM)
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Advisory Board
Auburn University, ALCity of Chicago, ILCity and County of Denver, COCity of Houston, TXCity of Kansas City, MOCity of Los Angeles, CACity of San Antonio, TXCity of Seattle, WACobb County, GADenver Public Schools, COEmory University, GAFairfax County, VAFresno Unified School District, CA
Great Valley School District, PAHarford County Public Schools, MDHennepin County, MNLos Angeles County, CAMaricopa County, AZMiami-Dade County, FLNassau BOCES, NYNorth Carolina State University, NCOrange County, NYPort of Portland, ORPrince William County Schools, VASalem-Keizer School District, ORSan Diego Unified School District, CAThe School District of Collier County, FL
Advisory Board Program Purchased Over $146 Million in 2013
Professional Oversight: Advisory Board of well-respected public procurement professionals to ensure responsible and ethical best practices
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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
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2005 2006 2007 2008 2009 2010 2011 2012 20130
10000
20000
30000
40000
50000
60000
70000
4,800 5,449
6,500 4,925
4,802 4,735
5,251 6,195
6,945
Registration Growth
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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
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Solutions
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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
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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
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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? Work directly with your current
representative and request “best U.S. Communities member pricing”.
Pay exactly as you always have.
Never worked with a company? Work with Program Manager to connect with
sales representative. Set up an account and pay the company
directly.
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Program Informationwww.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
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www.uscommunities.org
Tyler McCall• U.S. Communities• Cell: 704-776-3193• [email protected]
Contact Information