1999 Outstanding Program Awards
Submissions
Purchasing & Fleet Management

Submission Categories (click below to see the submissions in each category)

Public/Private/Non-Profit Partnerships * Human Resources/Training * Purchasing & Fleet Management * Public Works * General Governmental Services * Technology/Technology Application

Georgia - Fuel Card Management Program
aaaaThe State of Georgia Fuel Card management program has been created to provide a comprehensive network of fuel sites that support the state's motor vehicle fleet. The new card is easy to use, and its accepted at more than 36,000 locations in Georgia and the southeast; more than 170,000 nationwide.
aaaaGeorgia has now partnered with a private company, Petroleum Source and Systems Group, to provide a management information system with a new and improved Fuel Card. The fuel card is a universal MasterCard that allows all state agencies access to a convenient network of commercial retail sites throughout Georgia and surrounding states.
aaaaEach participating site gathers information from a level one (basic information such as vehicle number and merchant name and address) to level three that includes level one and level two information in addition to odometer reading and driver identification. With the advanced capabilities at level two and three stations, appropriate state and county taxes can be deducted.
aaaaThe new system also has controls that allow controls to be in place.
aaaaFor more information, contact Hugh Farley, Director, Statewide Business Services at 404-657-7553 or at hmfarley@doas.state.ga.us


Maryland - Natural Gas Supply Management and Procurement
aaaa The state of Maryland has saved approximately $2 million on its natural gas purchases through a creative and flexible procurement strategy, and a strong working relationship with the selected vendor. In October 1997, Maryland's Department of General Services, embarked on a comprehensive and inclusive procurement plan to offer deregulated natural gas to agencies of the state and to piggyback state and municipal agencies seeking savings from the unbundling of local utilities. The result of this effort was to issue an RFP with significant emphasis on performance issues, technical requirements, and pricing innovation.
aaaaWashington Gas Energy Services, Inc, agree to perform a detailed list of deliverables required in the RFP, including but not limited to: provide a reliable and cost effective natural gas from its extensive resource of natural gas producers, wholesalers and suppliers; and indemnify the state for any differential in price between the local distribution company's tariff rate and the contracted price during any periods of non-performance; arrange for transport of natural gas from the supply source, recommend tariff schedules providing the lowest cost transport available.
aaaaOther issues in the contract include: responsive supplier, delivered gas, no failures, no penalties, no utility gas, customer service oriented supplier, pro-active supplier, direct facility interface, operation issues with departmental engineers, and fiscal personnel interface.
aaaaFor more information, contact William E. Culen, Director, Procurement & Contracting at 410-767-4430 or at wculen@dgs.state.md.us.


Maryland - Statewide Automated Fuel Dispensing and Management System
aaaaThe State of Maryland Automated Fuel Dispensing and Management System is a turnkey automated and management system for the refueling of state vehicles. The system was in inaugurated in April 1991 with 23 refueling locations and has expanded to 85 locations statewide. Total savings to Maryland tax payers since the system's inception is $2.63 million.
aaaaThe system provides state vehicles with access to an entire network of refueling sties; insures the security and accountability of every gallon of fuel and quart of oil that drivers put into each vehicle; provides each state agency with detailed and summary information regarding driver and vehicle performance and fuel cost data; allows each state agency to monitor and control an increasingly significant expense - the cost of fueling and operating the state's motor vehicle fleet; allows each agency to purchase fuel at the most favorable price each week; supplies fuel usage data to the Department of Budget and Management's Fleetmaster System via a diskette, relieving agencies of the labor intensive task of entering their fuel purchases. In October 1999, the Department of Budget and Management will be able to dial directly into Commercial Fuel System's server to obtain this information - eliminating the use of diskettes.
aaaaThe contractor provides these service at a price per gallon administrative fee. The Department of General Services collects from each agency a price per gallon administrative fee that pays for all Department internal associated with administering this program.
aaaaFor more information, contact Kathryn Wilson, Director, Inventory Standards and Support Services Division, at 410-767-0587 or at kwilson@dgs.state.md.us


Michigan - Extended Purchasing Program
aaaaThe State of Michigan, Office of Purchasing, coordinates a joint purchasing effort called the Extended Purchasing Program. Through this program, Michigan extends its purchasing services to any city, village, county, township, school district, intermediate school district, non-profit hospital, institution of higher education, community or junior college.
aaaa There are about 600 extended purchasing members taking advantage of more than 25,000 items on state contracts. It is neither practical nor feasible to purchase cooperatively all of the items required by governmental units. Not every contract is available through the Extended Purchasing Program. When sufficient interest is expressed in items that can be purchased in volume, the state considers entering into such contracts whenever possible.
aaaa Michigan's purchasing office, in coordinating this program, communicates to the membership with quarterly newsletters, and maintains a complete listing of the available contracts on the Internet. Since 1996, when this program was given more emphasis, attendance at seminars, conferences, exhibits and trade shows has been successful in increasing the membership from 503 in 1996 to 600 in 1998. Michigan's goal is to continue to market the program so we reach all of the prospective members, which is estimated at more than 1,600.
aaaaFor more information, contact David Ancell, State Purchasing Director, at 517-373-0300 or at ancelld@state.mi.us


North Carolina - Vehicle Rebuild/Refurbish Project 1998-99
aaaaThe Motor Fleet Management Division of the North Carolina Department of Administration developed a pilot project to determine the feasibility of rebuilding state-owned full-size, rear-wheel drive vehicles instead of purchasing new vehicles. Part of the rationale for rebuilding vehicles is because Chevrolet no longer builds full-size, rear-wheel drive vehicles that are suitable for law enforcement use.
aaaa In the initial trial, 12 vehicles were sent to Shaheen Chevrolet in Lansing, Michigan to be rebuilt. Two more groups, a group of 16 vehicles, and a group of 32 vehicles, were sent to Shaheen for rebuilding. All of these vehicles were 1993-1996 Chevrolet Caprices. The rebuild is comprehensive and includes a new engine, brakes, suspension, new seats, carpets, dash pads, and other items. The average cost of rebuilding these vehicles was $12,845 each. New vehicles would have cost $20,909 each. An immediate savings of $474,860 was realized.
aaaa Motor Fleet Management's fleet has been expanding by approximately 350 vehicles every year for several years. Due to increased demand by state agencies and rebuilding vehicles, the budget can be stretched to accommodate the increased demand and mileage rates not have to be increased.
aaaa North Carolina has the potential to rebuild 340 Chevrolet Caprices. Based on the pilot project and a new contract, this could result in savings between $3 million and $4 million in purchase costs over the next two years.
aaaaFor more information, contact John Massey, Director, Motor Fleet & Courier Service, at 919-733-6540 or at John_Massey@mail.doa.state.nc.us.


Virginia- Small Purchase Charge Card Program
aaaaThe Commonwealth of Virginia's Small Purchase Charge Card (SPCC) Program offers state agencies and institutions an alternative, streamlined procurement procedure and payment method for small dollar purchases of goods and services. The SPCC program reduces the volume of accounts payable transactions and the associated administrative costs by eliminating individual vendor invoices and consolidating multiple vendor payments into one monthly payment per agency to the charge card contractor. Vendors are paid directly by the charge card contractor (American Express). Management information reports assist agencies in maintaining control over purchases and payments.
aaaa Research indicating that 87 percent of vendor transaction represented purchases of less than $1,000 and only 7 percent of total dollars spent in procuring goods and services. The SPCC program allows small dollar purchases, currently those less than $5,000, to be made with a purchasing card, thereby eliminating several procedural steps. The program provides for consolidation of invoices. In calendar year 198, the Commonwealth had 410,769 transactions charged using the small purchase charge card. This translated into a reduction in processing more than 400,000 vouchers for that year. In addition, the Commonwealth experienced a reduction of more than 313,000 in written checks.
aaaa Actual dollars saved by using the SPCC program in 1998 is $357,941.
aaaa For more information, contact Donald Williams, Director, Department of General Services at 804-786-3311 or at dwilliams@dgs.state.va.us

Washington - Performance-Based Contracting for the Washington State Lottery
aaaa The Washington State Lottery (WSL) requested state procurement's assistance in developing and implementing a new contract for advertising services. The Washington State Lottery spends $6.5 million each year for advertising services. The ad agency is responsible for creating, producing, and placing advertisements seen on TV and heard on the radio.
aaaa Traditionally state awards have focused on the qualifications of the ad agency and its fees as a factor (%) of media and production costs. In other words, the agency fee is added onto the production and media cost much like a markup/margin.
aaaa There were two problems with this approach. First, cost element of the award is based on the agency fee, represents only 15 percent of the costs associated with the contract. Secondly, the purpose of the ad agency was to generate sales through effective advertising, yet there was no financial risk to the agency, only the state, if they were not successful.
aaaa The Office of State Procurement announced to prospective bidders the intent to bid and held a bidder forum. Business objectives of the WSL notions of performance-based contracting and fixed price media costs were discussed. As a direct result of this process, the WSL saved $500,000 on "live drawing" media costs. It is anticipated that they will save an additional $950,000 on broadcast media costs during the initial contract term as compared to the quarterly buying strategy. In addition, because of the financial incentives offered the contractor, the WSL has secured a contractor that is very motivated to partner with them and work to exceed their sales goals.
aaaa For more information, contact Bill Joplin, Purchasing Manager, or Pat Kohler, Assistant Director, Deparment of General Administration, at 360-902-7417 or at bjoplin@ga.wa.gov.


Washington - Vehicle Ordering Process
aaaa The Office of State Procurement creates an annual contract on behalf of state agencies, colleges and universities, non-profit organizations, and local governments for the purchase of vehicles. The contract consists of 10 categories covering 41 different classifications of vehicles. For the 1999 season, more than 260 customer organizations purchased a total of 2,900 vehicles with expenditures of $56 million in approximately a six-month period. All vehicle orders are initiated by submission of a requisition form by the customer to OSP. In turn, OSP creates a purchase order that is transmitted to the dealer.
aaaa Prior to the creation of the 1999 contract it was recognized that although an ordering requisition form was available to customers online, the internal process after receipt of the requisition was very cumbersome and labor intensive. A team was formed to examine the current process and make recommendations for change. The outcome was tremendous for everyone involved. The team streamlined the process, reducing the number of people involved from eight to four. The number of times an order was touched from start to finish was reduced from 13 to five. In addition, the elapsed time from receipt of order until the customer and vendor received their PO was decreased to five days to one or less. In most cases, the customer and vendor receive the PO authorizing the purchase within a couple hours of ordering.
aaaa Cumulative time saved as a result of the changes was 967.5 hours or one half of a full-time employee per year. Additionally, printing and mailing costs associated with the process were eliminated. Not only has this system been inquired about by other states, but it has also been a model for other commodities OSP purchases. The ease of use and prompt response couple to make the system extremely user friendly and customer service focused.
aaaa For more information, contact Cami Fee, State Procurement Assistant or Pat Kohler, Assistant Director, Department of General Administration at 360-902-7420 or at cfeek@ga.wa.gov.