Allegheny County Purchasing Community Outreach and Informational Seminar, January 10, 2002

1. Allegheny County PurchasingCommunity Outreach and Informational Seminar, January 10, 2002 Thomas E. Youngs, Jr., C.P.M. County of Allegheny, Department of Administrative Services, Division of Purchasing and Supplies

2. Public Purchasing Modernization Allegheny County Division of Purchasing & Supplies Vision To be the best local government purchasing organization in the nation.

3. Allegheny County General Purchasing Information Allegheny County Administrative Code requires that: “Units of the Executive Branch, County Officers, Independently Elected County Officials, the Courts and agencies which require materials, supplies, furnishings, equipment, insurance, surety and fidelity bonds, other personal property, and non-professional services shall submit a requisition to the Purchasing Officer describing the type and quantity of goods and services required.”

4. Allegheny County General Purchasing Information Allegheny County Administrative Code states that: • Requirements greater than $30,000 be purchased through a competitive bid process • Requirements between $10,000 and $30,000 be purchased with three quotes (Inquiry) • Requirements less than $10,000 are at a County department’s discretion • The Department of Public Works handles all construction bids • The procurement of Professional Services is done outside of the Division of Purchasing and Supplies and the formal bid requirements • Suppliers must get to know County users as well as Purchasing Agents

5. Allegheny County General Purchasing Information In 2000 Division of Purchasing and Supplies issued: • 22,776 purchase orders for $34 million • 110 invitations for bid and 124 inquiries County Controller processed: • 51,532 miscellaneous vouchers for $585 million

6. Allegheny County General Purchasing Information In 2001 Division of Purchasing and Supplies issued: 132 invitations for bid and 81 inquiries

7. Allegheny County Sample List of Commodities Ammunition Agricultural Supplies Clinical Supplies Arts & Crafts Audio Visual Equipment Air Filters Dental Supplies Books/Brochures Typewriter Repair Automatic Doors Appliances (Refrigerators, TV's, Microwaves) Carpeting Body Armor Carpeting, Cleaning Communications Autos Computer Paper Computer Maintenance Batteries Eyeglasses Detergents Computers & Related Items Building Materials Dish and Laundry Soap Court Reporter Equipment Calcium Chloride Hearing Aids Dockets and Folders Fax Equipment & Supplies Chemicals - Industrial Hospital Beds Elevator Maintenance Fire Alarms Chemicals - Swimming Pool Hospital Equipment Files, Office Fire Extinguishers Electrical Equipment Furniture Fire Fighting Equipment Electronic Monitoring Systems Laboratory Service Flags & Emblems www.county.allegheny.pa.us/purchasing

8. Public Purchasing Modernization Allegheny County Division of Purchasing & Supplies Vision To be the best local government purchasing organization in the nation.

9. Public Purchasing Modernization How to Get There • Change in the form of government from a Second Class Pennsylvania County to a Home Rule County • Purchasing is managed by a purchasing professional rather than a political appointee • Be more professional and less clerical, be certified - C.P.M., CPPO and CPPB • Focus on cost savings and TCO (Total Cost of Ownership) and less on number of purchase orders issued • Be more strategic and less tactical • Contract with best-in-class suppliers • Harness the power of technology

10. Public Purchasing Modernization Harness the Power of Technology • Electronic Reverse Auctions • Division of Purchasing & Supplies Web Site • Contracts • Purchasing Agent and Commodity Listing • BidNet - Central Bid Notification System

11. Electronic Reverse Auctions • Five reverse auctions to date • Janitorial Supplies • Swimming Pool Chemicals • Printed Envelopes • Linens • Rock Salt

12. Example Auction A Duration: 1 hours, 22 mins. Bidders: 6 Savings results: $13,136.50 - 27% Linens: Sheets and Pillowcases Dynamic Close - Extension Start Bid: $49,026.00 Final Bid: $35,889.50

13. Example Auction B Duration: 1 hours, 43 mins. Bidders: 7 Savings results: $10,894.30 - 13% Swimming Pool Chemicals Dynamic Close - Extension Start Bid: $83,500.10 Final Bid: $72,605.80

14. Division of Purchasing & Supplies Web Sitewww.county.allegheny.pa.us/purchasing Commodity Contracts

15. Division of Purchasing & Supplies Web Sitewww.county.allegheny.pa.us/purchasing Choose contract

16. Division of Purchasing & Supplies Web Sitewww.county.allegheny.pa.us/purchasing Choose commodity

17. BidNet • Electronic central bid notification system • $29.95 a year per supplier for email or fax notification (phone 800-677-1997) • Free for supplier without notification but can access all Invitations for Bid (IFB) • Used by Allegheny County, Pittsburgh Public Schools, Monroeville, Mt. Lebanon and Cambria County

18. BidNet • No longer mail out Invitations for Bid or Inquiries (Request for Quote) • Bidders get IFBs quicker • Bidders don’t have to worry about missing an IFB • Save on: paper costs, copying expenses and postage • Can use time for more productive activities

19. BidNet • Award tabulations are posted • Inquiries sent by email and fax to paying suppliers • Quotes come back to designated purchasing agent by email or fax

20. BidNetwww.county.allegheny.pa.us/purchasing Selling to the County

21. BidNetwww.county.allegheny.pa.us/purchasing Open Commodity Bids

22. BidNetwww.county.allegheny.pa.us/purchasing Choose Open Requirement

23. BidNetwww.county.allegheny.pa.us/purchasing Supplier Registration

24. Allegheny County PurchasingCommunity Outreach and Informational Seminar, January 10, 2002 Thomas E. Youngs, Jr., C.P.M. 412-350-4495 tyoungs@county.allegheny.pa.us www.county.allegheny.pa.us/purchasing