On March 24, 2010 the Center for Public Administration and Public Policy at Kent State University held their second forum on intergovernmental collaboration in Northeast Ohio. To conclude the forum, Bruce Tague & Bob Aber from the Sourcing Office shared how they can easily help local governments save money through their joint purchasing programs. Sourcing Office makes the procurement of goods and services easy for government buyers and the suppliers that serve them. Check out the presentation to learn about all the programs Sourcing Office provides. For more information visit http://www.sourcingoffice.org

1. Intergovernmental
g
Opportunities Forum II
In What Ways Is Sourcing Office
Facilitating Collaboration Across Northeast Ohio
March 24, 2010

2. Discussion Points
Di i P i t
 Overview of Sourcing Office
 The Sourcing Office story
 Purpose & functions
 Organizational structure
 Procurement Methodology
 Overview
 Day-to-day activities
 Savings & Collaboration Opportunities
 Current programs
 Soon-to-be-launched programs
 In what ways can your organization leverage Sourcing Office
 Current participants, successes, & contact information
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3. The S
Th Sourcing Office Story
i Offi St
 THE SITUATION: extensive government fragmentation and
duplication of activities with over 90,000 governments in the U.S.
 THE SOLUTION: deploy private sector operating methodologies in
the public sector
 THE STARTING POINT: procurement & shared services
 OUR EVOLUTION: 13 cities to a national platform in four years
 THE OPPORTUNITY: public, private, and not-for-profit entities
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4. Our P
O Purpose & F
Functions
ti
 DEVELOP group purchasing programs that serve the public private
public, private,
and not-for-profit sectors
 SAVE participants time & money
p p y
 TARGET suppliers and channel partners committed to operational
excellence and total cost of ownership solutions
 WORK in a spirit of partnership (creating wins for all parties)
 SOURCE, MATCH & MANAGE supplier contracts with participants
 ORGANIZED as a regional Co ncil of Go ernments under Section 167
Council Governments nder
of the Ohio Revised Code and 501(c)(3) not-for-profit entity
 GENERATE REVENUE as a percentage of dollars spent with our
supplier partners
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5. Our O
O Operating Structure
ti St t
SBAM OFIC COSE ERC Northeast Ohio
Member Member Municipalities Non-profits
Member Member Companies Counties
Member Schools 5
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6. What W D
Wh t We Do
Current procurement process:
- Repeated 100+ times per year, per entity -
“Anything that we can do to bypass
Develop bid Create bid Advertise bid
our own bid process is a good thing.
specifications
ifi ti package
k opportunity
t it I repeat, anything ”
repeat anything.
Current customer, an elected official
Tabulate bid Receive bid Hold pre-bid
responses proposals meeting
Select bid Negotiate Approve Execute Start buying
winner Contract Contract Contract
SAVE MONEY
Buying through Sourcing Office: •8 to 20% savings
•Avoid bidding costs
SAVE TIME
Sign up for Start buying •Avoid bid spec development
program •Delegate bid process
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7. What W D
Wh t We Do
PROGRAM DEVELOPMENT MARKETING & MATCHING
 Survey members  Identify early adopters
 Analyze budgets  Build “raving fans”
 Conduct market research  Create mail and email
 Select spending categories campaigns
 Create bid specifications
C f  Communicate through
C
 Manage bid/RFP process association channels
 Negotiate and contract with  Manage quality control
suppliers  Coordinate customer service
 Manage implementations  Generate positive publicity for
associations and their members
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8. Office Supplies
Offi S li
 Approximately 20 organizations supplied their
purchasing history, shared their core list, and/or
committed their annual office supplies spend to
this program
 Includes office supplies, paper, off-site printing,
toner, and related supplies
 Saving
S i an average of 25% f participants
f for ti i t
FAQ
 In what ways did OfficeMax stand out through the
procurement process?
 How much volume is currently being procured through
this contract?
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9. Comprehensive Print MGMT.
C h i P i t MGMT
 Complete audit is conducted to identify the
greatest savings
 Contract capabilities include hardware purchase,
copier service, printer service software needs
service service, needs,
and related imaging services
 Saving an average of 23% for participants
FAQ
 Why did you choose ComDoc?
 Is this program different than “state term?”
 Do I have to implement an entire print management
approach today?
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10. Electricity
El t i it
 Two unique programs to meet the needs of
every Sourcing Office participant
 Approximately 250 million kilowatt hours
currently under contract
 Reliable supplier with strong local presence
 Saving an average of 18% for larger participants
FAQ
 What portion of my electric bill is Sourcing Office able to
offer a discount on?
 How is Sourcing Office planning on addressing the rate
auctions in 2011?
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11. RFP - Alt
Alternative Energy
ti E
 Wind, solar, geothermal, and biomass sources
are included in the RFP
 Goal of simplifying complex scenarios through a
pre-procured
pre procured approach which meets all needs
 Significant state and federal grants are currently
available
 Expected l
E t d launch i M 2010
h in May
FAQ
 Will financing be available?
 Will all aspects of the program be addressed (zoning,
consulting, etc.)?
 What is the average length to install a wind turbine?
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12. RFP - HR I A B
HR-In-A-Box
 RFP addresses; benefits administration, benefits
consulting, HR consulting, property & casualty
insurance, payroll, and wellness programs
 Anticipated multiple awards
 A top requested program since inception of
Sourcing Office
 Expected l
E t d launch i M 2010
h in May
FAQ
 Who are you talking to about this program?
 These are solutions which need to be customized to the
customer; how will you address this fact?
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13. In D
I Development - J /S & S f t S
l t Jan/San Safety Supplies
li
 RFP addresses; janitorial supplies, sanitation
needs, safety supplies, and related categories
 Green and sustainable solutions are being
stressed
 Value added services, such as inventory control,
will weigh heavily in the scoring
 Expected l
E t d launch i M /J
h in May/June 2010
FAQ
 Is there a “one throat to choke” solution in this industry?
 Is this a big spend category?
 Which companies are you talking to in this industry?
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14. In Development - Temporary Staffing
 Significant spend category for higher education
and special districts
 Growing need due to staff realignments
 Currently finalizing the search for a subject
matter expert to assist in program creation
 Seeking interested organizations to participate in
sourcing process
i
 Expected launch in July 2010
FAQ
 Will you be able to address the diverse temporary
staffing needs by your participants?
 Will my organization be required to commit to a certain
amount in spending to participate in the sourcing
process?
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15. Current P ti i
C t Participants
t
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16. Recent S
R t Successes
 Ohio s
Ohio’s Largest Community College – now saving 30% on office
supplies
 Community Recreation Center – achieved 18% savings on electricity
(a $125,000+ annual savings) without event switching suppliers
 Local School District – saving more than 22% on copiers and printers
 Ohio’s Largest County – now saving 42% on office supplies (a
$300,000
$300,000+ annual savings)
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17. What O P ti i
Wh t Our Participants Say
t S
We rolled out the [Office Products] implementation
on April 1st [2009] and from what I can see and
p [ ]
hear, it went flawlessly. The team at OfficeMax &
Sourcing Office are real pro’s and delivered at
every l
level.”
l”
 Jerry Hourigan Director of Procurement
Hourigan,
Cuyahoga Community College – annual budget of $300 million
Sent unsolicited April 10, 2009 to prospective p
p , p p participants
p
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18. Action It
A ti Items
JOIN
A Sourcing Office Affiliate Agreement is
included in the hand out materials.
REVIEW
Discuss available programs with Sourcing
Office team members Additionally ask
members. Additionally,
how you can be first in line as future
programs are developed.
Participate
Commit your organization to sitting on a
sourcing committee to d
i i develop f
l future
programs.
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19. Contact Information
C t tI f ti
Bruce L. Tague Sourcing Office
Executive Director 5422 East 96th Street, Suite 120
P: 216.581.6200 x103 Cleveland, Ohio 44122
Bruce.Tague@SourcingOffice.org
Bob Aber P: 216.581.6200
Director of Sales & Marketing F: 216.581.6213
P: 216.581.6200 x105 E: info@sourcingoffice.org
Bob.Aber@SourcingOffice.org U: www.SourcingOffice.org
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