april2022 - 42

GUE ST EDITORIA L
contract price, resulting in a waste of procurement
time and taxpayer funds.
Fortunately, every state now has laws to avail
itself of a cooperative contract, but the procurement
department still needs to familiarize
itself with the specific state laws before registering
with a contracting cooperative (co-op).
When you are ready to move forward, it
Photo: 109528354 | Boydz1980 | Dreamstime
Cooperative procurement:
strength in numbers
For government fleets, cooperative procurement can save
valuable time and taxpayer money. Here's how it works.
Cooperative procurement has grown exponentially
in the past 20 years, now saving
state and local government entities billions
of dollars a year. And yet it remains an
underutilized resource for many fleet managers
who continue to get bogged down in the
traditional approaches to spec'ing, bidding,
and awarding contracts.
For those not familiar with cooperative
procurement or for those who need a refresher,
the process is simple. A government
agency-state, city, county, school district,
etc.-completes the required steps of the bid
and procurement process. A contract is established
for an item or group of products, and
an award is issued to one or more vendors.
Once the contract is in place, it can now be
used by all government agencies throughout
the country.
Using cooperative procurement, an agency in
Lake Forest, Illinois, purchased a crack-sealing
machine at a cost savings of more than $6,000
over the low bid received from a local vendor.
There are thousands of examples of contracts
like this that have been secured by government
agencies using a similar approach.
Cooperative procurement truly is a win-win
proposition. The fleet manager receives the
equipment they need while the procurement
department secures a greater return for their
taxpayers' dollars, thanks to the price advantage
gained by " volume purchasing. " Best of all,
cooperative procurement allows fleet managers
to focus more on the job of running their
operations instead of writing bid specifications
for equipment.
The alternative to cooperative procurement
is the time- and cost-intensive approach
required of those who " go it alone, " something
many are all too familiar with: interviewing
potential vendors, advertising bids, responding
to pre-bid questions, analyzing responses,
and eventually making an award. In 40 years,
I have yet to meet a single fleet manager who
says they enjoy this process or who believes
it's the best use of their time.
Beyond the time involved, it's also expensive.
By Steve Perlstein
SALES AND MARKETING MANAGER,
MOHAWK RESOURCES LTD.
Steve Perlstein is the sales and marketing manager for
Mohawk Resources Ltd., a lift manufacturer based in
Amsterdam, New York. He has worked in the garage
equipment business since 1981 as one of the company's
founders. Perlstein is responsible for managing Mohawk's
multiple award schedule contracts with GSA, various
states, and national government cooperatives.
Mike Wenzel, former chief procurement officer
for the state of Maine and past member of
the National Association of State Procurement
Officers, estimated that the total cost of
procurement for agencies that choose this path
can be as much as $10,000, and substantially
more for complex purchases.
That was the experience of a Wisconsin transit
agency that insisted on bidding for a transit
bus lift rather than using the state contract.
In the end, the agency received responses and
spent $10,000 more than the discounted state
42 Fleet Maintenance | April 2022
is recommended that you perform your due
diligence on any co-op you may want to join.
Questions you may want to ask include:
* How long has the co-op been operating?
* Is there a fee to join?
* What procurement laws does the co-op
follow in soliciting, evaluating, and awarding
contracts?
* Is contact information provided to readily
conduct more in-depth research?
* What is the level of cu stomer service in
response to que stions, concerns, or reque sts
for information?
Cooperative procurement can be used for
a wide variety of purchases, but it is ideally
suited for items that may only need to be
purchased occasionally, such as when your
garage expands or if the existing equipment
is no longer able to service your current fleet
(e.g., lifts, tire changers, and wheel balancers).
With cooperative procurement, fleet managers
and procurement departments need not
worry about the acquisition process turning
into a virtual arm-wrestling match, as can
happen. All contracts available through established
co-ops are competitively bid and awarded
and carry a full set of government terms and
conditions the vendors must comply with for
your shop as a government buyer.
Cooperative procurement
is ideal for items that
may only need to be
purchased occasionally.
For example, NASPOValuePoint.org has a
contract titled " Vehicle Lifts and Related Garage
Equipment " that is being used by 35 different
states. The terms and conditions are clearly
spelled out, and the contract itself has a mandate
for guaranteed lowest government pricing.
With an increasing number of fleet managers
and procurement officers across the country
retiring or close to retirement age, more pressure
is being placed on staffs to secure the
equipment needed to maintain their fleets at
a fair and responsible price.
Government-to-government procurement
services hold the key to reducing the cost of
goods and services by aggregating the purchasing
power of public agencies nationwide. State
Procurement Director Steve Berg summed
up the benefits of cooperative procurement
perfectly when he said, " Why reinvent the
wheel when another state and its procurement
staff have done all the work? "
http://www.NASPOValuePoint.org
april2022

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