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CONNECTING CRITICAL
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CONTENTS
DECEMBER 2022
VOLUME 30, NO. 4
IN DEPTH
PERSPECTIVES
2 Procurement Ponderable:
Using Outcome-Based Contracting
to Help Your Entity Achieve its
Strategic Goals for Sustainablity
HOT TOPICS
4 Looking Ahead: The interconnected
future of cooperative purchasing
and eProcurement
BACK PAGE
13 Darin Matthews: Procurement
Has Some Real Characters
2 | DECEMBER 2022
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HOTTOPICS [looking ahead]
PROCUREMENT TOGETHER—AN
INTERCONNECTED FUTURE
By Steve Isaac
to be able to run these operations entirely online— by suppliers when they bid. When entered
cloud-based eProcurement is on the rise. into a cloud-based eProcurement platform,
eProcurement is starting to develop some these responses become structured data.
measure of community connection with features Readers of The Economist know why that
like RFP template sharing, but most platforms matters. They know that “the world’s most
still don’t connect procurement professionals with valuable resource is no longer oil, but data.”
direct supplier insights from their colleagues. Procurement is starting to get into the game.
That said, eProcurement providers are
recognizing that purchasers are eager to see PROCUREMENT’S INTERCONNECTED FUTURE
shared insights integrated into their platforms. Cooperative procurement and eProcurement are
Periscope and OpenGov Procurement, for two pieces of a jigsaw puzzle of interconnectedness for
example, have both started integrating supplier public purchasing. And while both have recognized that
insights and reviews into their platforms. there is value in allowing procurement professionals
What eProcurement does do—and what to learn and benefit from each other’s experiences,
will be critically important in the next phase neither was designed expressly for that purpose.
of interconnected procurement—is transform A new class of tool is out there that is designed
procurements into structured data. explicitly to meet that need. Today, thousands of
Top-line and line-item prices, delivery times, purchasers are sharing their experiences and insights
emissions information, supply-chain details, about suppliers online on Procurated. They are
service areas, resale values, etc. These are some of collaborating to build a free resource where a buyer
the thousands of examples of answers provided from Portland, Maine, can learn directly from the
experiences of their colleagues in Portland, Ore.,
despite the 3,000 miles separating them.
This new tool is also creating structured data
in the form of ratings. Supplier performance is
being rated on a uniform scale, making it possible
to aggregate the experiences of hundreds of
buyers. This empowers purchasers to compare
suppliers within a category, apples-to-apples.
The value of this data is recognized by
counterparts in the co-op and eProcurement
spaces, with supplier insights and ratings being
directly integrated so that buyers can see them
within the tools they use every single day.
6 | DECEMBER 2022
Procurement Together is a movement, a
shared belief in the power of our procurement
community when it is truly interconnected.
I started this article with some questions about
supplier insights. Then I asked, “Is there any
reason (beyond the logistics of achieving such a
thing) that this information should not be freely
accessible to every purchaser in the country?”
If you believe, like we do, that every purchaser
should have these insights at their fingertips, then
strap in. Our interconnected future is just beginning.
americancityandcounty.com
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8 | DECEMBER 2022
A comprehensive look at some of the
government trends of the future
By Tammy Rimes, MPA
T
he expression “there is no constant, checklist of capabilities—without any independent
except for change” has been a truism verification. Our philosophy is trust, but still verify.”
for government and educational teams Through a StateRAMP free membership, a government
as ever-changing challenges have been member planning a purchase of software or cloud
thrust upon them in an unprecedented services, can now require that the supplier be verified
manner. Strategic organizations are by StateRAMP. With a nominal charge to the supplier,
seeking to become more adaptable to address future trends. a verification model and vetting process ensures that
more than 170 specific security points must be achieved
CYBER SECURITY IS TOP PRIORITY and maintained to receive an annual credential.
Data breach costs in the public sector are increasing and While the process can be lengthy—up to six months—
ransom payments, where data is “stolen” by hackers and it is extremely thorough. A contract award can still be
money is demanded for its return, is on the rise. According made and then the verification process negotiated to be
to Sophos State of Ransomware 2022 report, state and local conducted within the first year of the contract. Once
governments average payments of $214,000 per incident. verified, the supplier can then show this verification
In many cases, ransomed data has been sold for nefarious to other government clients to establish security
reasons. When further sales cannot be made, the data is then credentials. Over time, StateRAMP strives to be the
ransomed back to the originating agency. However, paying standard for security among government clients.
the ransom does not guarantee the data will be returned.
According to the Center for Digital Government, in 2022, WORKFORCE AUGMENTATION
92 percent of cities, 90 percent of counties and 64 percent As the Baby Boomer generation retires in greater
of states carry cyber insurance. However, insurance only numbers, the need for succession planning and
covers an entity AFTER a breach has been discovered. To be backfilling empty positions is a huge challenge. The
more proactive, the non-profit StateRAMP was created for a problem is further exacerbated by the difficulty to attract
standardized approach to cybersecurity standards for service new employees. Many are not applying for long-term
providers offering solutions to state and local governments. government careers, particularly as life-time pensions
Unauthorized access to government systems often occurs and health care are no longer guaranteed benefits.
through third-party software that might not be thoroughly Strategic Government Resources (SGR) is an organization
vetted for security measures. For instance, an invoice that helps state and local municipalities be successful in
payment system for suppliers or survey software measuring recruiting, assessing, and developing government leaders.
customer service are ways that major breaches have occurred With the second largest local government job board in the
in the past couple of years, affecting millions of people. nation, SGR serves more than 700 local governments in
Based off a successful model used at the federal level, 47 states with special projects and attracting new talent.
Rebecca Kee, StateRAMP Government Implementations, Ron Holifield, the CEO of SGR, served two decades in city
states: “Local governments need an independent management within Texas, including assistant city manager
resource to vet and certify hundreds of suppliers who in Plano; city manager in Garland, DeSoto, Farmersville
offer software and cloud-based solutions. No local and Sundown; and city manager’s staff in Lubbock. “There
entity has the resources or time to complete a deep- is a growing need to fill positions at all levels of government
dive analysis for every product acquired. Instead, they and increasing demand for specialized skill sets,” Holifiled
usually rely on the vendor to self-certify or answer a says. “In addition, generational values create a paradigm
10 | DECEMBER 2022
it focuses their efforts on offering best value solutions, there is a recent shift in Energy Efficiency as a Service
rather than spending resources on responding to hundreds (EEaaS), allowing facility upgrades without the burden
of individual solicitations. A recently awarded supplier of raising capital or relying on bond elections,” he says.
shared that by adding a cooperative contract into their “Construction and job order contracts also appear to be
sales strategy allowed them to elevate their company’s on the rise, especially for quickly needed repair projects.
public sector business over 200 percent year-to-year.” Facility directors are realizing the value of a contracted
As government needs are changing, so are the types construction team that can be quickly mobilized.”
of contract offerings. A newly formed TIPS partnership
with CommercePayments Payment Hub manages vendor URGENCY FOR SUSTAINABILITY
information and facilitates payments, while providing a As climate change increasingly affects communities,
reconciliation file back to an entity’s ERP system. The system with regional emergencies such as intensified hurricanes
simplifies and expedites the AP process—an end-to-end and wildfires, the focus on healthy environments is gaining
solution for receiving, approving, paying, reconciling and political attention. Municipalities are responding to
storing invoices. Serving as a help desk for supplier payment address the issue and reduce their own carbon footprint.
questions, a time-consuming process for resource strapped In Minnesota, St. Paul and Minneapolis unveiled their
agencies, the best part of the value proposition provides first five electric carsharing hubs in the Twin Cities, for
a revenue sharing opportunity. To date, $9 million has a joint 70-station Electronic Vehicle (EV) Spot network.
gone back to its 400+ education and government clients. The $12 million network is used to charge both private
Mabe offers a glimpse of continuing evolutionary electric vehicles and new Evie Carshare vehicles from
changes. “While energy savings performance contracts have HOURCAR, a St. Paul-based nonprofit. HOURCAR
historically been a part of cooperative contract portfolios, members can reserve EV Spots curbside within a
35-square-mile service area, allowing access to electric the community. “We scheduled the event when parents
cars that some might not be able to afford on their own. were arriving during the afternoon shift to collect their
The 70 EV Spot charging locations doubles the number children,” Young says. “Sharing information about the
of public charging ports in the Twin Cities and considered project and resulting energy savings, allowed us to introduce
the nation’s largest publicly owned electric vehicle initiative. the concept of solar energy to both students and parents.
Winner of the 2018 Bloomberg Philanthropies American As of October 2022, we saved over 94.68 lbs. of carbon
Cities Climate Challenge, this project aims to curb dioxide, which is equivalent to planting over 715 trees.”
greenhouse gas emissions, particularly related to the largest
users of non-renewable energy—transportation and buildings. KEEPING GOVERNMENT ACCESSIBLE
With an expensive initial price tag for the project, a Good communication is a crucial part of providing
strategic partnership was needed with a funding source government services to the public, particularly in high
with expertise in municipal funding and fleet leasing. NCL consequent areas such as 911 emergency calls. Think of the
Government Capital provided multiple solutions for this last time you were called for jury duty, had to navigate a
complex project, including the use of federal tax credits to new DMV system or required legal representation. These
help offset a portion of the vehicle costs. The various leasing situations can be confusing. Now, imagine if you were one of
solutions gave the project the ability to access more vehicles the millions of people who is not proficient in English, or has
than they originally envisioned within the same budget. a hearing or visual impairment. Critical information might
be misinterpreted, or missed completely, along the way.
PARTNERING FOR INNOVATION Ed Regan, director of sales for GLOBO, a company
With shrinking resources, compounded with the desire dedicated to language access, shares, “an estimated
to be innovative, many entities are relying on supplier 61.6 million people—born both inside and outside the
networks and experts in industry to assist on new projects. U.S.—speak a language other than English at home. The
As a former parks and ground administrator, and now limited-English proficient (LEP) population has grown
assistant to the city manager for Greenville, S.C., Megan rapidly in recent years, increasing more than 80 percent
Young shares her experience with a major solar project. between 1990 and 2013 from 14 million to 25.1 million.
With this forward-thinking concept, in-house expertise GLOBO has been the city of Philadelphia’s comprehensive
to answer basic questions of how to proceed, who will do the language support partner since 2017. As the city transformed
work and how to quantify success did not exist. Rather than during the Covid-19 pandemic, GLOBO supported the
attempt to issue a bid and hope for the best, they decided to city’s Department of Health by transitioning to fully remote
interview industry expert suppliers and contract through home visits and meetings that required interpreters via
a cooperative contract. RoofConnect was brought onboard GLOBO’s Multi-participant Video Remote Interpreting
for their consulting expertise. “Using an already awarded solution; assisted the daily COVID press briefings
contract allowed the opportunity for a partnership rather where information was shared on city policies, testing
than a transactional relationship,” Young says. “Together, our sites, school closures and other government mandates;
teams performed a walk-through of the facilities, identified and implemented new dedicated telephone lines for
the strengths and weaknesses of various options, with open departments like the Office of Emergency Management and
and transparent conversations on what would work best.” the city’s COVID Contact Tracing Unit. Last year alone,
For the David Hellams Community Center, the city GLOBO serviced more than 350 different languages.
initially envisioned installing solar panels on the recreation With a belief that everyone should have equal access
center roof. However, through discussions with RoofConnect, to information, GLOBO calls for a more “empathetic
they determined the better option was a nearby covered future.” “The need for better experiences will no longer be
basketball court roof and scheduled installation around a nice-to-have, but a necessity,” Regan says. “To provide
recreation schedules. Young states, “Having a relationship impactful services that move the needle, government
with our chosen supplier made the process much smoother.” teams must consider the journey that all their residents
From RoofConnect’s perspective, Ken Beck, director of take when accessing resources and services.”
business development states, “We appreciate the opportunity
to share our expertise and knowledge. The traditional bid TAMMY RIMES, MPA, is the executive director of the
process does not always allow for these types of National Cooperative Procurement Partners (NCPP).
conversations and collaboration, as we are just as invested She formally served as purchasing agent for the city of San
in a project’s success.” Diego, the ninth largest city in the nation, and emergency
Supplemented by a $10,000 mini-grant from the South logistics chief during the 2007 Witch Creek Fires. Under her
Carolina Department of Energy, 100 solar panels were leadership, the city consolidated its warehouse operations,
installed last July. To embrace local support and further centralized all purchasing and contracting operations,
educational efforts, an open house was scheduled for and moved to a more customer focused approach.
12 | DECEMBER 2022
BACK PAGE [darin matthews]
DARIN MATTHEWS, CPPO, CPSM, NIGP-CPP, is the chief procurement officer for Cal Poly University in San Luis
Obispo, Calif. He has extensive management experience, speaks throughout the world on procurement issues, and has
published several books and articles on supply chain management. Contact Matthews at DarinLMatthews@gmail.com.