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JOINT PURCHASING ADVANTAGES

By Frank Resnik

GOVERNOR RICHARD B. OGILVIE'S joint Purchasing program, permitting local governmental units to take advantage of state contracts, has shown a tremendous increase in participation and savings by local governments in the last six months.

In a recent announcement, the Department of General Services, stated that a review of the program and the activity on the part of local governments indicates that it is being well accepted. Thomas B. Blanco, CPPO, State Purchasing Agent, submitted a report to the Director giving details on the progress of the Ogilvie program.

Volume and savings in the last six months has grown by leaps and bounds. Total volume under the program since it started about two years ago has reached $1,666,000.00. Documented savings to the 131 local governmental units now exceed $547,000.00. Approximately $840,000.00 of this volume generating savings of $289,000.00 occurred in the last six months.

As of October 1, 1971 the number of governmental units participating had increased to 131 as compared to 82 six months ago. In addition, 103 local agencies in the last six months have asked to be placed on the states' mailing list to receive information about the program. This brings the total agencies requesting such information to 525.

REQUEST BREAKDOWN

137 Cities
174 Villages
134 School Districts
44 Counties
36 other governmental units including park districts, sanitary districts and other elected officials.

At the present time there are 23 open end contracts available to local governmental units. The contracts and expiration dates are listed below:

Correspondence Sets ......................June 30, 1972
Lamps, Incandescents and
Fluorescent ..................................June 30, 1972
Sanitary Napkins ..........................June 30, 1972
Batteries, Automotive ..................June 30, 1972
Tires and Tubes ............................June 30, 1972
Rags, Wiping ..................................June 30, 1972
Anti-Freeze, Permanent Type ......June 30, 1972
Typewriter & Pencil Carbon Paper;
Typewriter, Adding Machine & Calculator Ribbons;
Solvent Carbon Copying Sheets (Mylar) ..........June 30, 1972
Office Supplies ............................August 31, 1972
Typewriters ................................August 31, 1972
Electronic Tubes ........................August 31, 1972
Duplicating Machines and Supplies ...................August 31, 1972
Adding Machines and Calculators .............August 31,1972
Dictating Machines and Supplies ..............August 31, 1972
Primary Ignition System Parts, Automotive .........August 31, 1972
Belts and Hoses, Automotive .......August 31, 1972
Air, Gas and Oil Filters, Automotive ................August 31, 1972
Spark Plugs, Automotive ..........August 31, 1972
Water Coolers ........................February 29, 1972
Metal Office Furniture ..................June 15, 1972

In addition to these contracts the State of Illinois has allowed participation in contracts covering food, police cars, trucks, heavy road equipment and road salt.

Governmental units were recently advised that the State has entered into an annual contract

Frank Resnik is Acting Director, Department of General Services, Procurement Division, State of Illinois.

Illinois Parks and Recreation 24 January/February, 1972

covering Metal Office Furniture. Local governmental units will be permitted to take advantage of the sizeable savings. Inquiries are beginning to flood the Department of General Services, Procurement Division, indicating that high volume and savings can be expected.

The City of Elgin, through Mr. Robert O. Malm, Assistant to the City Manager, notified Mr. Blanco as follows: "Not counting the savings on rock salt, we estimate that the City has reduced its procurement costs by $4,750 so far this year by using State contracts. We heartily endorse the joint purchasing program and would like to express our appreciation on your significant achievements."

The City of Elgin information Newsletter dated September 22, 1971 carried the following comments.

STATE HELPS MUNICIPALITIES STRETCH TAX DOLLARS

Salt. Elgin is one of sixty-three cities, villages and highway departments that participated this year in the joint purchase of rock salt with the State of Illinois. The combined salt requirements of the State and local government units produced a significant decrease in salt costs. Cargill, Inc. submitted a low bid of $10.00 per ton for the Elgin area. Last year our price was $11.80 per ton for the first part of the salt season and $10.88 when the City became eligible to purchase salt under the State contract on January 1, 1971. Approximately 1,200 tons of rock salt are used each year. Hence, the new price should reduce the cost of salt procurement by over $1,000.

Furniture. The State office furniture contract was recently awarded to Office Equipment Company of Chicago, bidding on Steelcase furniture. All tax supported governmental bodies are eligible to purchase at State prices directly from the vendor awarded the contract. All of our furniture purchases have been delayed until terms of the State contract were announced. Judging by the contract prices, the wait was well worth it. An example of savings is an executive desk with center drawer and laminated top at a list price of $355.50. On a competitive quote basis, the desk would sell for around $230.00. Under the State contract, however, the price is $111.55. Similar cost reductions are available on tables, chairs, bookcases and filing cabinets. Items not specifiically listed in the bid are discounted at 52.92% or 43.5% off of list price. Our hats are off to Tom Blanco, State Purchasing Agent and his fine staff for doing such an outstanding job in helping municapalities and other governmental units secure the best possible prices for quality goods.

Illinois Parks and Recreation 25 January/February, 1972