Shared Services and Cooperative
Purchasing in Minnesota
Purchasing in Minnesota
Senator Terri E. Bonoff
District 43
District 43
Overview
Fiscal Environment/K-12 in Minnesota
S.F. 10 - Shared Services and Cooperative Purchasing
Stakeholder Reaction
Stakeholder Reaction
S.F. 10 - Second Engrossment
Conference Committee
S F 1459 L
l G t C
ti
P
h i
S.F. 1459 - Local Govt. Cooperative Purchasing
Legislative and Community Outcomes
Fiscal Environment/K-12 in
Minnesota
2010/2011Biennium – Budget deficit of $4.6
billion(6.4 billion before any ARRA funds)
341 independent school districts; over 150 charter
schools
Overall K-12 budget of $13 89 billion
Overall K 12 budget of $13.89 billion
S.F. 10 - Shared Services and
Cooperative Purchasing
January 7, 2009 - Press conference with Governor
Pawlenty and bipartisan/bicameral group of
legislators to announce Shared Services Initiative
legislators to announce Shared Services Initiative
January 8, 2009 - Senate File 10 introduced on
Senate floor
February 5, 2009 – House File 538 introduced on
Senate File 10
Part One: Cooperative Purchasing
Subdivision 1. Purchasing requirement. For fiscal year 2010 and later, a school
di t i t h t h l i i d t h d d i di t
district or charter school is required to purchase goods and services according to the requirements of subdivisions 2 and 3. A school district or charter school may not purchase goods or services from a vendor that has not been approved by the commissioner and listed according to subdivision 2. A school district or charter school is not required to make purchases or contract for services from th d li t f d i th t t ifi ll li t d i
the approved list for goods or services that are not specifically listed in subdivision 3.
Subd. 2. Approved list. The commissioner of education must develop and maintain pp p a list of approved vendors from which school districts may purchase goods or contract for services. The list shall be published on the department's Web site and must be maintained and updated as necessary.
Senate File 10
Part Two: Shared Services Consultant
Sec. 10. SHARED SERVICES CONSULTATION SERVICES.
The Department of Education shall enter into a two-year contract with a consultant to study specific services or activities across school districts and charter schools to make recommendations about combining services and
activities in order to promote improved service delivery, efficiency, and economy of operation. The Department of Education shall require the consultant to p p q
develop an implementation plan for all school districts to participate in the shared services purchasing mandate according to Minnesota Statutes,
section 123B.835. The department shall work with the consultant to develop an initial list of service providers that can offer economical and efficient delivery of goods and services. This initial list shall be published according to Minnesota
g p g
Statutes, section 123B.835. The department must contract with a consultant that agrees to receive payment as a percentage of shared services savings as measured under Minnesota Statutes, section 127A.096, subdivision 4. This percentage must not exceed five percent of the savings computed according to Minnesota Statutes, section 127A.096, subdivision 4, in fiscal , , ,
Stakeholder Reaction
Mandates
Centralization
Centralization
Job Loss
l
l
Local Control
Quality Control
S.F. 10 – Second Engrossment
Revised to Address Stakeholder Concerns
Subdivision 1 Purchasing requirement. For fiscal years 2010 2011 and 2012 a Subdivision 1. Purchasing requirement. For fiscal years 2010, 2011, and 2012, a
school district or charter school is required to purchase goods and business
services, when price competitive, from state contracts available through the cooperative purchasing venture under section 16C.10
"Business services" means both professional and technical services and service performed under a service contract for school district business management. It
S.F. 10 – Second Engrossment
Subd. 2. Exemption. Notwithstanding subdivision 1, a school district or charter school is not required to purchase a good or business service according to subdivision 1 if the school district or charter school can document that:
(1) a lower price for comparable goods or business services is available from another vendor;
(2) the available goods or business services fail to meet acceptable quality standards;;
(3) the proximity of another vendor materially affects the delivery of a particular good or business service;
(4) an urgent need justifies a purchase from another vendor; or
(5) a reasonable regional need justifies a purchase from another vendor. If (5) a reasonable regional need justifies a purchase from another vendor. If
a school district or charter school purchases a particular good or business service according to this subdivision, the district or charter school rationale must be documented.
S.F. 10 – Second Engrossment
Sec. 2. SHARED SERVICES CONSULTATION SERVICES.
The commissioner of education shall enter into a three-year contract with a consultant to study specific services or activities across school districts and charter schools to make recommendations about
districts and charter schools to make recommendations about
combining services and activities in order to promote improved service delivery, efficiency, and economy of operation. The commissioner of education shall require the consultant to develop an implementation plan for all school districts to participate in shared services. The
lt t t k ti l ith h l di t i t h t consultant must work cooperatively with school districts, charter
schools, and their employees to develop and implement this plan. The department must contract with a consultant that agrees to receive payment as a percentage of shared services savings as measured under section 3, subdivision 2, of this act. This percentage must not under section 3, subdivision 2, of this act. This percentage must not exceed five percent of the savings computed according to
section 3, subdivision 2, of this act in fiscal years 2010, 2011, and 2012.
Conference Committee
Included House website
Directed consultant to give first priority to districts
that show greatest potential for cost savings
Included reporting requirement for consultant to
education finance committees
education finance committees
S.F. 1459 - Local Government
Cooperative Purchasing
Subd. 15. Cooperative purchasing. (a) For fiscal years 2010, 2011, and 2012, whenever determined to be practicable and cost-effective by a municipality, the municipality must contract for the purchase of
supplies, materials, or equipment by utilizing contracts that are
available through the state's cooperative purchasing venture authorized by section 16C.11.
-Municipalities includes cities, counties, townships and school districts.
Outcomes
S.F. 10 passed in Senate
S F 1459 passed into law
S.F. 1459 passed into law
Shared Facilities Bonding
l
d
l h
d
Local and Regional Shared
Multi-State Cooperative
Purchasing and Sharing
March 31, 2009 – Governor Pawlenty and Governor
Doyle announce first joint Minnesota-Wisconsin
efforts.
Five Categories
- Joint Procurement and Best Practices
Jo t
ocu e e t a d est
act ces
- Cross Border Collaboration
- IT Systems
Reciprocity
- Reciprocity
Multi-State Cooperative
Purchasing and Sharing
Joint Procurement & Best Practices
:
Shipping service contractscould lower related shipping costs 30-55%; Joint Unemployment Debit Card System could save Wisconsin over $1 million; Agencies are y $ ; g
directed to contact counterparts before initiating major procurements to identify possible savings.
Cross Border Collaboration
:
Electronic state-to-state casereporting for Disease Surveillance Systems eliminates need for health providers to make multiple reports to both states.
IT Systems
:
Residency data sharing will improve data collection andreduce fraud
Shared Resources
:
Communication Tower Sites; Purchasing fromDept. of Corrections Dairy Farm in Wisconsin could save MN $250,000 d b i i $250 000 t t Wi i ti
