Cooperative buying means bulk prices

If a county can get a price break by consolidating its office supply needs into one bid, combining its buying power with other governments frequently means even more savings.

Purchasing Agent Narita Holmes recounts Ector County's bid for pagers. Beepers advertised at more than $10 were first offered at under $8 for the countywide bid and dropped to under $6 when combined with other local governments in the county, including cities, school districts and college districts.

Many counties take part in the state's General Services Commission's (GSC) purchasing contract, which requires a $150 annual fee. Purchasing through the state contract satisfies state bidding requirements, but governments are not eligible for state contract prices unless a requisition is submitted through GSC.

Another consolidated purchasing opportunity is available through the Houston-Galveston Area Council (HGAC), which specializes in vehicles, heavy equipment and radio systems. The council of government charges an administrative fee from .15 percent to three percent, based on the product and quantity.

All of the options require commissioners court resolutions for interlocal agreements, but none works for all entities in all circumstances.

Convenience sometimes makes the local bid more desirable, Holmes said.

"Sometimes the state contract will take 30-45 days to arrive for items like autos," she said. "Some county departments don't order new supplies until they've used the last envelope and then they need more immediately."

Similarly, if the state bid for patrol vehicles is only slightly lower than what can be obtained locally, buyers figure in the cost of sending employees across the state to pick up autos, she said.

On the other hand, sometimes it's worth taking advantage of a larger entity putting together complex specifications.

When Gillespie County shopped for ambulances, County Auditor Janice Menking saw the advantage of going with HGAC.

"When we looked at how complicated it was going to be to write up the specs to make sure the re-mount box would fit on the chassis, paying their fee was well worth the time it would have taken us locally," she said.

"Any purchaser will tell you that they can go out and find a lower bid than the state GSC contract or HGAC," said Parker County Purchasing Agent Mike Wiley. "I've beat state prices and they've beat mine. Sometimes the local vendor is just willing to take a smaller profit."

In Odessa, Holmes said Ector County has had good success in cooperative purchasing for fuels, lubricants, auction services, paper goods, and food and dairy items.

But there's been no success in persuading county, city and school paint crews to buy the same paints.

"We've tried and tried but we've never been able to convince the painters to switch from their preferred brands," she said. "We finally gave up."

The chart information presented in this section was gathered by Denton County Purchasing Agent Beth Fleming.