Purchasing biweekly bulletin - 10/02/08

News

State Contract Updates

We Need Your Feedback

General Information


The Department of Printing to host Open House & Customer Forum, November 20th, 10:00a.m.-2:00p.m.

This will be the first open house of our main plant in seven years. The Printing Plant is located at 7580 New Market Street SW in Tumwater. Hour-long sessions will feature information on: Paper Training 101 (how to select the best paper for your job), a step- by- step guide to Department of Printing online ordering, how to submit your In-Design file via PDF and more!. Facility tours will be available throughout the day and refreshments will be served. More information will be available on our website (www.prt.wa.gov) as the event gets closer.

RSVP via email at: printing@prt.wa.gov or phone 360-570-5555.

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2009/2010 Calendars, “The Arts In Washington State” now available

Calendars are now available in the following designs:

  • 2009/2010 Year at a Glance Wall Calendar – 23” x 35”, two sided, 15 month.
  • 2009/2010 Year at a Glance Cubicle Calendar – 12” x 18”, two sided, 15 month.
  • 2009 Appointment/Schedule Planning Calendar (formerly SF9205) 11” x 8.5” 13 month calendar.

The calendars are a collaborative effort between three different agencies. The Department of Printing designed the layout and styles. The art was supplied by the Arts Commission. GA’s Consolidated Mail Services will deliver the calendars to their customers.

The Washington State Parks 2009 wall calendar is also available and features brilliant high quality monthly photos and large grids. The images are by renown and mostly Washington photographers. They represent the natural, cultural and historic beauty of the state park system. The calendar measures 12 ½” x 11” folded, and 12 ½” x 22” open. Proceeds go towards the care and maintenance of Washington State Parks.

To order your calendars, please go to the Department of Printing’s website at www.prt.wa.gov or contact Chad Blake at (360) 570-3062

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New work hours at Materials Management Center aims to save taxpayer money

General Administration’s Materials Management Center will begin a new compressed work schedule starting September 29, 2008.

The new Materials Management Center schedule will be:

  • Transportation Services:
    • Tuesday through Friday, 6 a.m. to 4:30 p.m.
  • Warehouse:
    • Tuesday through Friday, 7 a.m. to 5:30 p.m.

We will continue to deliver supplies to locations statewide once a week. Specific route delivery information is available at: http://www.ga.wa.gov/centralstores/, click on the “Shipping Info” link at the bottom of this page.

As many of you know, our Transportation Services group had already transitioned to a four-day workweek to increase efficiency on the delivery and pick-up routes.

And our Surplus Programs office in Auburn will also be closed on Mondays, starting September 29.

The Surplus Programs schedule starting September 29 will be:

  • Tuesday thru Friday - 8 a.m. to 5 p.m.
  • Saturday - 7:30 a.m. to 4 p.m.

The goal in working the new compressed schedule is to save money on energy costs, which in turn benefits taxpayers and Washington citizens.

Gov. Chris Gregoire recently asked state employees for their suggestions on ways to reduce costs and save taxpayer dollars. The top employee suggestion was to move to a 10-hour, four-day workweek.

The governor said she felt it would be unwise to adopt this plan throughout state government without first giving it a test run to measure the results.

So the new Materials Management Center work schedule will be done on a trial basis for the next few months.

We will measure customer satisfaction along the way to make sure we’re on the right track. And we will be identifying internal performance measures to quantify the success of this trial.

For more information about our new schedule, please call (360) 753-3508.

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Questions on 'Mandatory' and 'Convenience' contracts

Following our broadcast of September 4th, some of you requested additional clarification regarding the contract designation announcement and below you will find GA’s response to the most frequently asked questions. Any other questions should be directed to GA customer service at (360) 902-7400 or csmail@ga.wa.gov.

OSP phases out ‘mandatory’ and ‘convenience’ contract designations

As you might be aware, General Administration’s Office of State Procurement (OSP) has started phasing out “mandatory” and “convenience” designations on OSP master contracts.

Consistent with Governor Gregoire’s directive, each agency should still strive to use state contracts whenever possible to maximize the state’s collective purchasing power. Elimination of the mandatory and convenience designations simply (and appropriately) empowers state agencies to exercise their own professional judgment in making contract decisions and be accountable for it.

Our primary focus is to develop and provide successful contracts for our customers. Our role is not to police off-contract spending. Instead, we incorporated into our modern practices a strong emphasis on stakeholder collaboration to achieve best-value contracts. This includes learning what our customers need and setting goals for best price, quality, total cost of ownership, environmental responsibility and diversity.

Although we work hard to satisfy agency needs, we realize there will be contracts that cannot meet every agency’s requirements. In those limited instances, agencies are justifiably excused from using OSP contracts. Agency purchasing staff must then conform to all relevant procurement rules and regulations, and for audit purposes, must document their justification for off-contract purchases, including a record of competition if applicable.

State agencies can also exercise the “Best Buy” option when appropriate. However, remember that such action may dilute the state’s collective buying power and OSP’s ability to negotiate future contract improvements. If you decide to exercise the Best Buy option, it is vital that the information is captured via the online reporting form accessible from each contract summary page found on OSP’s Website.

We hope this provides some clarity, and at the same time reminds us to work together whenever possible so that collectively we can achieve the best overall value for our state.

Frequently Asked Questions:

Is OSP saying state agencies don’t have to use General Administration’s Office of State Procurement (GA/OSP) master contracts?
No. This is not a change in overall policy. The purpose of phasing out mandatory or convenience contract use designations is to be consistent with our statutory requirements. RCW 43.19.190 requires GA to purchase all material, supplies, services and equipment needed in support of state agencies requirements. This is accomplished through GA contracts. It does not include use designations, such as mandatory and convenience. As a result, any new contract or contracts that are re-bid will not have a use designation. Therefore, they should be treated as mandatory contracts for state agencies. However, if a contract truly cannot satisfy your agency’s needs, then the purchase is considered unavailable on a GA contract. In addition, the “Best Buy” provisions still apply to GA contracts.

Agency use of a GA/OSP contract should be the rule and not the exception. Agencies should always look to GA/OSP contracts first to meet their purchasing needs. The success of state-wide purchasing requires the collective cooperation and compliance of all state agencies. However, our goal is not to be so prescriptive in our guidelines that it prevents purchasers from legitimately exercising professional judgment and sound stewardship principles.

How does this decision affect those legacy contracts that include the mandatory or convenience designation?
The decision to phase out the mandatory or convenience designation will have no affect or alter those legacy contracts that include this distinction. If/when these contracts are rebid, they will not include a contract use designation.

How does this decision apply to Correctional Industry (CI) Contracts?
With regard to CI contracts, established under RCW 43.19.534, WAC 236-49-055 specifically references the use of the ‘mandatory’ designation and also precludes purchasers from exercising the “Best Buy” provision. Accordingly, CI contracts will continue to include the mandatory designation, as it is specified in rule.

Does this mean that “Best Buy” process is no longer required?
No. As stated above, the “Best Buy” option is still available when appropriate and those procedures must be followed. Additionally, as with any purchase, competitive procurement requirements must still be met. Note that CI contracts are an exception - you cannot use the “Best Buy” option with CI contracts. However, pursuant to WAC 236-49-055, purchasers may apply for a one-year exemption in certain situations. Please contact CI directly or GA to request an exemption form if needed.

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New P-card, fleet card programs offer flexibility and savings

Since its launch 10 years ago, the State Purchasing Card Program has grown dramatically.

The P-card has become an integral part of government purchasing as a preferred method of payment. State agencies, political subdivisions and institutions of higher education have received tremendous benefits from using the program.

Purchasing card transactions have increased from $30.3 million in 2000 to $253.5 million in 2007. The state realized $1.7 million in rebates in 2007, compared to $44,000 for 2000.

The state has also earned time and cost savings in the processing of payments. The average cost of a transaction using the traditional purchase order (PO) process is approximately $85-$125, compared to the average cost of a purchasing card transaction of $9-$25.

And it’s only going to get better. Last January 1, Washington began the transition to a new multi-state purchasing card program with U.S. Bank. As a member of the Western States Contracting Alliance (WSCA) multi-state cooperative, we were able to tap into the benefits that California and 15 other states collectively achieved.

This has meant an improved rebate structure (now paid to agencies quarterly instead of annually), a dedicated customer service team and an online transaction approval and reporting system that offers customers security and a real-time view into spend data. This means rebate figures should increase and be received in a more timely way.

Customers are currently transitioning to the new program. All state agencies should be on board by the end of 2008.

Fleet card program update: The state has also entered into a new fleet card contract with Comdata Corporation. Although the previous provider, Voyager, offered excellent reporting capability for type of fuel and gallons purchased, Comdata offers more options for the state.

MasterCard association
With this logo on our new fleet cards, they:

  • Are now accepted anywhere a major credit card is accepted
  • Provide real-time, online transaction and account management, removing the month-long wait to view transactions, allowing for greater control and accountability

Other benefits

  • Prompt payment rebates – paying customers for paying bills faster, the quicker you pay – the more rebate you earn, like PCard
  • They will work with you to create a free flat file in whatever format you choose for downloading into your fleet management system

The state has never received a rebate with its fleet credit card, but with Comdata we will receive a prompt-payment rebate. For example, in 2007, the state spent approximately $21 million for fuel. If every agency paid its bill every two weeks, we could receive .0035 of our total spend, or $73,500. If every agency paid its bill every week, we could receive .0070 of our total spend, or $147,000.

Questions about either of these programs may be directed to Neva Peckham at npeckha@ga.wa.gov or (360) 902-7425.

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Healthy, properly inflated tires boost fuel efficiency

In response to a recent article in the Seattle P-I about fuel-efficient tires gaining traction, GA/OSP is offering the following best practices for fuel-efficient tires and resources.

Tires can help save fuel if we remember:

  1. Proper tire inflation
    • “Two percent in fuel economy is lost by running a tire 20 psi underinflated and a tire can lose up to 5 psi in a month from air migration through the casing” (Michelin)
    • Check inflation monthly when tires are cold. “Keep them inflated at the vehicle manufacturer’s recommended pressure. That figure is typically found on a placard on the driver’s door jamb…Don’t go by the maximum inflation pressure embossed on the tire’s sidewall.” (ConsumerReports.org)
    • Improper tire inflation causes a tire to wear more quickly.
  2. Low rolling resistance tires/fuel efficient tires
    • Savings of “up to 6 percent in gasoline use” using “very efficient tires” (Treehugger.com)
    • “A typical compact car such as a Ford Focus can improve its mileage from 30 mpg to 32 mpg simply by using lower rolling resistance tires” (Treehugger.com)
  3. Speed
    • “An increase in truck speed from 55 mph to 65 mph results in an increase in aerodynamic drag by 40 percent” resulting in lower mpg. (Michelin)
  4. State contracts available to purchase tires:
    • #00108 Tires/Tubes & Service (all fuel-efficient tires are not noted as such – ask dealer for specifics)
      • Bridgestone/Firestone
      • Goodyear Tire
      • Michelin
    • #02806 Tire Retreading & 24 Hour Road Service
      • Les Schwab
      • Alpine (Woodinville area only)

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New contract notification requirement includes use of WEBS system

A new state requirement for purchases will take effect on November 1, 2008.

The departments of General Administration, Printing and the Office of Financial Management, the agencies that authorize all state purchasing, and the Information Services Board have adopted a new rule. It requires purchasers to use WEBS for all formal procurements that require advertising.

This means that any time an agency is required under state rules to advertise a bid it must use WEBS (Washington Electronic Business Solution).

As most of you know, WEBS is a free online system where vendors can register to receive automatic email notification of government bidding opportunities.

Government buyers go to the same site to post contracting opportunities.

The new requirement is part of a broader effort to streamline the state’s purchasing practices.

Several steps were taken to ensure a smooth transition to using WEBS.

To log in to WEBS as a government customer: https://fortress.wa.gov/ga/webscust/

Questions about the registration process may be directed to webscustomerservice@ga.wa.gov or (360) 902-7400, 8 a.m. to 5 p.m., Monday – Friday.

WEBS training

The next WEBS training opportunity for government will be at General Administration's Annual Training Conference and Tradeshow: the training will be held on Thursday October 30th from 10:00 - 11:00 a.m.

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Fire Alarm Testing/Fire Suppression Services contract awarded

The new Fire Alarm Testing/Fire Suppression Services contract, segment ‘B’ of contract 05707, has been awarded. It has been assigned its own contract number of 08008 (for tracking purposes). This is a WSCA contract, but we are not participating in the entire contract that the State of Nevada put together. Please view the Current Contract Information document for more information. This contract was awarded to Simplex Grinnell, and the point of contact for orders off of 08008 is John Richards, at 971-237-3736, or jorichards@tycoint.com. Please contact the Contracts Specialist, Kirsten Taylor, at 360-902-7433, or ktaylor@ga.wa.gov if you have questions.

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General Purpose Fasteners contract extended

The General Purpose Fasteners contract (#08104) has been extended for 24 month, to September 30, 2010. There will be no price increases at this time. For questions, please contact Diane Donahoo at 360-902-7443.

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Auto Accident Management Services contract under development

Contract 31800 - Auto Accident Management Services - is due to expire on November 19, 2008. A new contract is currently under development. Anticipated award of the new contract will be made by November 19. If the award determination has not been made by then, coverage under the current contract will continue until the new contract is in place.

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State awards electrical supplies contract to Consolidated

Contract #02908, Electrical Supplies, has been awarded to Consolidated Electrical Distributors, effective immediately. If you need more information, contact Diane Donahoo at 360-902-7443 or ddonaho@ga.wa.gov.

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OSP adds organic fertilizers to contract

The Office of State Procurement has added three organic fertilizers to State Contract 02605, Fertilizers:

  • Richlawn Pro-Rich/FE, 14-2-5, organic poultry-based material for quick green;
  • Natural Choice, 22-2-12, organic-based blend for applications where organic results are desired;
  • Proganic, 8-2-4, an all-natural fertilizer, developed for turf and agricultural production.

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State awards guardrail contract

State of Washington has awarded state master contract 03008, Guardrail, Terminal, Cable and Components, to Coral Sales Company.

This contract is designed for the as-needed purchase of highway guardrails, terminals, cable and components. The current contract term is from Sept. 12, 2008, through Sept. 11, 2010. This contract replaces contact 12101 for Guardrails, which expired on August 28, 2008.

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State sets stakeholder meeting for building materials contract

Contract #02007, Building Materials Statewide, was terminated on July 22. Any orders prior to this date will be fulfilled.

A stakeholders group for a new contract, #07408 Building Materials Statewide, will have its first meeting on Sept. 30. For more information, contact Diane Donahoo at 360-902-7443 or ddonaho@ga.wa.gov.

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De-icer contract awarded

The state recently awarded four vendors for State Contract 02708 for the purchase of roadway snow and ice control products (i.e., road salt, liquid magnesium chloride and liquid calcium chloride).

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Price adjustment for transportation management product

State master Contract 03502, Transportation Management System Equipment, has received a voluntary price adjustment (an increased percentage off manufacturers’ price list) from Advanced Traffic Products Inc. Item 25 L.E.D (manufacturer Dialight) will be offered from 6-20 percent to 23.08-38.46 percent off list. Customers are urged to take advantage of this savings.

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Vendor and Contract Report Card

The following contracts are due to expire soon: the Office of State Procurement is in need of feedback from customers who have used any of these contracts.  If you have used these contracts, please click on the feedback link and follow the instructions there to add your feedback.  Contracts can be viewed online.

Contract title Contract # Feedback due Contract expires Feedback link
Competitive contracting consulting services 31703 10/29/08 1/19/09
WSCA breast pump contract 10305 10/20/08 1/17/09

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Modular structures contract

GA’s Office of State Procurement tries to meet all of the contracting needs of our customers, but some of our procurements fall in areas with difficult environments. One of these areas is modular structures. The office is considering developing a new contract approach for this commodity and is looking for users who would be willing to assist through discussions and stakeholder participation. The need is to find a way to allow users to successfully operate with a complex set of legal regulation, while finding value in the contract.

If you could help with this project please contact Mark Gaffney, GA contract specialist, at (360) 902-7424 or mgaffne@ga.wa.gov.

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Competitive Contracting Consulting Services feedback needed

State contract 31703 - Competitive Contracting Consulting Services - will expire soon. GA’s Office of State Procurement would like feedback from customers who have used this contract, to help us determine if the contract should be extended. If you have used this contract, please visit the contract page and complete a feedback form by October 29, 2008.

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