COSTARSUPDATE

SIMPLIFYING LOCAL PROCUREMENT (AND SAVING

MONEY, TOO!)

October, 2012

PA PROCUREMENT LAWAct 84 COMPETITIVE BIDDING REQUIREMENTS (as of January 1, 2012)(adjusted annually based 

on Consumer Price Index)General Contracts and 

Purchases“Exempted Categories (such as insurance and personal & professional services)

Contracts Below $10,000

No advertising or competitive bidding or price quotations are 

required

No advertising or competitive bidding or price quotations are required

Contracts Between $10,000 and $18,500

Three informal (written, telephonic, electronic)price quotations are required, with 

award to lowest

No advertising or competitive bidding or price quotations are required

Contracts Over $18,500

Advertising twice and formal competitive bidding is required (Unless utilizing COSTARS or other acceptable cooperative 

purchasing program)

No advertising or competitive bidding or price quotations are required

What is COSTARS?

COSTARS is the Commonwealth’s cooperative purchasing program.

This approach to cooperative purchasing leverages the purchasing power of more than 7681 local entities, combined with the state, to obtain more competitive pricing and choice than individual purchasers might be able to obtain on their own, while eliminating the expensive costs of public bidding procedures, and at the same time, providing increased opportunities for hundreds of businesses of all sizes in all locations, to compete for millions of dollars of government business.

COSTARS MEMBER ADVANTAGES

MORE SUPPLIERS-GREATER CHOICECUSTOMIZE YOUR SPECIFICATIONSNO FEES – COMPETITIVE PRICESNEGOTIATE LOWER PRICESMORE COMMODITY CHOICESGREATER BUYING POWERGREATER OPPORTUNITY TO BUY FROM

LOCAL SUPPLIERSSAVE MONEY-LESS FORMAL BIDDING

PROCEDURESQUICKER TURNAROUND TIME

A COSTARS member may “piggy-back” off of

state agency contracts

OR

Use a COSTARS-Exclusive contract.

Since these contracts have been previously bid by the state’s Bureau of Procurement, no additional formal bidding process is required.

What is a COSTARS Contract?

• A State agency contract that has reduced the supplier base by more than 50% requires the development of a COSTARS Contract

• Contracts that are created exclusively for the use by the LPPUs, based upon perceived need.

• COSTARS Contracts are awarded to all “responsive and responsible” bidders.

COSTARS Contracts1 Copiers3 IT Hardware4 Office Supplies5 Janitorial Supplies6 Software7 Foods8 MRO (Maintenance, Repair &

Operation Equipment & Supplies)

9 Graphic & Printing Services10 Voting Systems11 Toiletries12 Emergency Responder Loose

Supplies13 Emergency Responder

Vehicles14 Recreational & Fitness

Equipment 15 Water & Waste Water

Treatment Consumables16 Water & Waste-Water

Treatment Plant-Components/ Equipment

17 Waste, Recycling & Materials Handling Containers

18 LED Traffic Signals

19 Laboratory Supplies20 Medical Supplies21 Pest Control Services22 Weatherization Supplies24 Traffic Signs25 Municipal Work Vehicles26 Passenger Vehicles28 Energy Conservation Supplies29 Grounds Keeping (Grounds/Turf

Maintenance)30 Energy Consulting Services32 Signage33 Streetscapes (Pending)34 Theater (Auditorium) Furniture,

Fixtures and Equipment35 Furniture & Window Treatments

28 Energy Conservation SuppliesSolar Thermal, Solar Electric, Wind Turbine kitsEnergy Automation ControlsHVAC System Enhancement ComponentsLow Flow Plumbing FixturesEnergy Management & Efficiency Software

29 Grounds Keeping (Grounds/Turf )Maintenance)Landscaping & Lawn MaintenancePruning & Planting trees, shrubs, flowersFertilizingPest & Weed Control ManagementAerationSoil Sampling & TestingLeaf ControlTree & Stump RemovalSalting, Snowplowing, & Sweeping (Excluding Roadways)

NEW COSTARS CONTRACTS

NEW COSTARS CONTRACTS21 Pest Control Services

30 Energy Consulting ServicesEnergy AuditsSoftware & Marketing AnalyisEnergy Monitoring, Analysis & AdviceBrokerage Services

32 SignageBanners & BillboardsDigital, Electric, Neon & LED SignsMessage BoardsPlaques & MarkersScoreboardsSupport Posts, Fasteners, Hardware & Accessories

NEW COSTARS CONTRACTS34 Theater (Auditorium) Furniture, Fixtures and

EquipmentAuditorium Furniture, Seating & StorageAccessories, such as Armrests, Cup Holders, Number & Letter PlatesPodiums, Lecterns, & StandsFixtures, such as Umbrella stands, Coat Racks, etc.Portable Stage, Risers & SkirtingStage Curtains & PartitionsPortable Audio/Video Equipment, Carts & AccessoriesPortable Stage Lighting & Accessories

35 Furniture & Window TreatmentsAudio/Visual, Book, Chair CartsCafeteria, Computer, Preschool, Dormitory, Healthcare & Lab FurnitureCasegoodsFiling & Storage UnitsFreestanding Bookcases, Display casesFreestanding Office Furniture, Panels & PartitionsLaw Enforcement Furniture, Evidence Lockers, Weapons RacksLibrary, Lobby, Mailroom, Training Room, Outdoor Patio, Studio FurnitureWindow Blinds/Shades, Curtains/Draperies, Drapery Hardware

11

Pending COSTARS Contract

STREET SCAPES

Street LightsDecorative ClocksBenchesParking Meters

NEW CONTRACT PROPOSALS

Several members write to us

Association writes to us

Legislators write to us

Periodic Surveys

Online Member Feedback Survey

PLUS• 200 State Agency Contracts available to

COSTARS members, for products such as:• Sodium Chloride (Roadsalt)• Aggregates• Heavy Duty Power Equipment• Universal Fleet Card• Pharmaceuticals• Police & Specialty Vehicles• Tires• Delivery service• Carpet & Installation• Food Service equipment• Wheelchair vehicles

ENERGY RELATED CONTRACTS

State Contracts

Energy Commodity Supply & Related ServicesElectricity, Natural Gas, Renewable Energy Credits, Energy Controls

Liquid FuelsDiesel, Heating Oil, Bio-diesel, etc.

Unleaded Gasoline

Energy ITQ

Universal Fleet Card

15

ITQ Service ContractState Contract #4400004480 IT Services

• Multiple Vendor Contract • Service Categories

–Cabling–Commercial Off-The-Shelf (COTS) Software Services–General IT Consulting–IT Project Management Consulting–IT Security Consulting–IV & V Consulting–Network & Telecom Consulting–Radio Services Consulting–Disaster Recovery–Geospatial Technologies–IT Integration–IT Training–Modified Off-The-Shelf (MOTS) Services–Software Development–Subscription Based Web Application Services

Contact for questions: Joe Millovich, ITQ Manager

(717)214-3434)jmillovich@state.pa.us

COSTARS vs. State Contracts

• COSTARS contracts have multiple choice of suppliers

• STATE contracts often offer one or a few suppliers

• COSTARS contracts offer competitive pricing• STATE contracts are competitively priced through

supplier bidding (low bid typically or best value)

• COSTARS contracts allow COSTARS members to choose suppliers based on price, geography, quality, etc.

Year COSTARS Members2005 1,6002009 6,5872012 7,681

17

Members History

0

1000

2000

3000

4000

5000

6000

7000

2005 2006 2007 2008 2009 TODAY

$ $ $ $ $ $ $ $

• In 2011, we estimate COSTARS members spent over $580 million utilizing the COSTARS Program!

• A typical municipality can purchase a large majority of their commodity and equipment needs through the COSTARS program!

COSTARS SPEND

• 2006 $150 Million• 2007 $300 Million• 2008 $400 Million• 2010 $480 Million• 2011 $580 Million

20

Total COSTARS Spend by LPPU Classification

SCHOOLS

40%

MUNIC22%

COLLEGE

13%

COUNTY10%

OTHER2%

EMS3%

HEALTH 1%

AUTHORITIES9%

2011 COSTARS CONTRACT SPEND BY

LPPU CATEGORY

SCHOOLS31%

MUNIC30%

COLLEGE14%

COUNTY9%

OTHER3%

EMS2% % HEALTH 

2%

AUTHORITIES9%

2011 TOTAL COSTARS SPEND BY  LPPU 

CATEGORY 

SCHOOLS11%

MUNIC47%

COLLEGE17%

COUNTY8%

OTHER4%

EMS0%

HEALTH 5%

AUTHORITIES8%

2011 STATE CONTRACT SPEND BY LPPU

CATEGORY

SAVINGS TO COSTARS MEMBERS

2011 OVERVIEWo TRANSACTIONAL SAVINGS

COSTARS CONTRACTS $21,951,304

STATE AGENCY CONTRACTS $12,397,628

o TOTAL $34,348,932

o COMMODITY SAVINGS

COSTARS CONTRACTS $56,417,262

STATE AGENCY CONTRACTS $43,974,212

o TOTAL $100,391,475

o TOTAL $134,740,407

LPPU Website Benefits• Members listing will alert awarded suppliers that you are

an approved participant in the program.

• Providing an e-mail address will enable you to receive information promptly.

• Access to DGS contracts for LPPU’s

• Newsflashes that will provide important information on new or renewed contracts, surplus information, etc.

• Provide Commonwealth Instant Feedback

• Immediate update to the member profile, such as contact person, address and other member information

• Register

• Access the Newsletter

MAKE SURE OUR EMAIL CAN GET PAST YOUR JUNK FILTER!

OTHER NEWS

COSTARS HOME PAGE www.dgs.state.pa.us/costars

FOR ASSISTANCE

CLICK ON RESOURCE CENTER

CLICK ON MEMBERS BUTTON

TO REGISTER AS A MEMBER

COSTARS RESOURCE CENTER

COSTARS TRAINING

• How to view COSTARS Contracts

• How to view State Agency Contracts

Click on COSTARS Contracts

TO UPDATEPROFILE

TO SEARCH COSTARS CONTRACTS

Search COSTARS ContractS

TO VIEW ENTIRE LIST OF COSTARS CONTRACTS OR TO SELECT A PARTICULAR CONTRACT, CLICK ON DROP-DOWN LIST.

TO NARROW THE SEARCH TO A PARTICULAR CATEGORY OF PRODUCTS, CLICK ON THIS DROP-DOWN LIST.

Search COSTARS ContractSTO VIEW ENTIRE LIST OF COSTARS AUTHORIZED SUPPLIERS OR TO SEARCH FOR A PARTICULAR SUPPLIER, CLICK ON THIS DROP-DOWN LIST.

Search COSTARS ContractS

TO VIEW THE CONTRACT OVERVIEW AND THE CONTRACT TERMS & CONDITIONS, CLICK HERE.

TO VIEW A PARTICULAR SUPPLIER’S DATA, SERVICE AREA, PRICE SHEETS, LIST OF ANCILLARY SERVICES, ORDER INSTRUCTIONS, ETC., CLICK HERE.

COSTARS TRAINING

• How to view COSTARS Contracts

• How to view State Agency Contracts

Search STATE Contracts

HERE OR HERE

Search STATE Contracts

YOU CAN SEARCH BY:

CONTRACT #

SUPPLIER

DESCRIPTION

KEYWORD

BY CLICKING ON THE DROP-DOWN LIST.

SEARCH STATEWIDE CONTRACTSREVIEW LIST OF STATEWIDE CONTRACTS

CLICK “VIEW LIST OF CONTRACTS”

SEARCH STATEWIDE CONTRACTSREVIEW LIST OF STATEWIDE CONTRACTS CHANGE “10

ENTRIES PER PAGE” TO “ALL”

CLICK ON DESCRIPTION TWICE

ALPHABETIC LIST OF CONTRACTS WILL BE DISPLAYED

CLICK ON CONTRACT NUMBER TO DISPLAY CONTRACT

Search STATE ContractsEACH LISTING INCLUDES:

EXPIRATION DATE

WHETHER COSTARS MEMBERS CAN PIGGY-BACK

CONTRACT ADMINISTRATOR

YOU CAN CLICK ON THE ICON TO VIEW THE CONTRACT OVERVIEW OR THE ENTIRE CONTRACT.

CONTRACT OVERVIEW

Viewing Specific Supplier

THE TEN QUESTIONS

Viewing Specific Supplier Service Area

Viewing Supplier Categories & Brands

Viewing Supplier Ancillary Services

Viewing Supplier Prices

NEGOTIATING WITH SUPPLIERS

Suppliers are prepared to negotiate, particularly on COSTARS Contracts.

Obtain at least 3 or 4 prices, if possible.Announce up front that you are getting

prices from several suppliers.After getting several quotes, return to your

“preferred” supplier and provide an opportunity to beat your lowest price.

REMEMBER YOUR OBJECTIVE:GETTING THE BEST VALUE FOR YOUR

TAXPAYERS!

EXAMPLE

Step 1 – On the internet, go to:

www.dgs.state.pa.us/costars

EXAMPLE PICKUP TRUCK

Step 1 – Is your product available under a COSTARS Contract? Search COSTARS Contracts.

YES. COSTARS-25Municipal Work Vehicles

Example 1 Pick-up TruckStep 4 –Choose a few vendors that seem

to have the product you need, based on: Familiarity with company or brand Geography Other criteria

For example, choose Hondru FordStep 5 – Check out each company’s

pricing and other details

F-150 Pick-up

24% off Man.

Sugg. Price.

Step 6 – Call the dealers (at least 3 or 4), introduce yourself as a COSTARS member, tell them you’re calling several dealers to compare prices, and tell them what you need, and ask for their best price. Make notes.

Step 7 – Is there an applicable state contract? Go to eMarketPlace.Step 8 – Search by description: “Pickup”

Search by description.

Type in “pickup truck”

Suppliers will be listed

Click on Overview

Example Pick-up Truck

Step 9 – View an overview.Review list of suppliers.Review index sheet.Review included options.

INDEX SHEET

INCLUDED OPTIONS

SUPPLIERS LISTING

Example Pick-up Truck

Step 10 – Compare with COSTARS quotes. Make sure you are comparing like vehicles.

Step 11 – Call your finalists. Negotiate.

Step 12 – Finalize the deal. Prepare your purchase order.

LIQUID FUEL MONIESAll Municipalities receive liquid fuel funds based on population and the number of miles of roadways located within the borough.

Liquid Fuel monies must be spent on roadway maintenance, such as Aggregates, Highway Support vehicles, Drainage systems and components, LED Traffic Lighting, Guardrails, etc.

All spending of liquid fuel monies are monitored and audited by the state.

All purchased commodities must meet PennDot specifications.

All state contracts meet PennDot specifications.

TWO UNIQUE STATE CONTRACTS

Roadsalt (Sodium Chloride)Sign up in advance

Aggregates (Road Stone)Must do a mini-bid and award to lowest bidder

TO VIEW CURRENT SALT CONTRACT

ROADSALTDO’S & DON’TS OF THE ROAD SALT CONTRACT

# 6810-02 (Sodium Chloride)Eligibility Requirements

You must be registered with COSTARS to participate on the Salt Contract.A completed Salt Participation Agreement is needed for inclusion on this contract. The Salt

Participation Agreement will be posted on the COSTARS website (www.dgs.state.pa.us/costars) between January 1 to March 15 of each year.

A completed salt requirement form MUST BE RECEIVED BY March 15. Notification

The Salt Contract will be posted in August indicating who your supplier is and your pricing. The contract can be printed out for your records by using the COSTARS website.

Ordering Your township or organization will place all orders with the supplier (NOT DGS).

Consider ordering your salt early. The earlier you order salt, the better your road department will be able to respond to the winter road conditions.

When ordering salt, try to think ahead of your overall needs. Although pricing will remain constant (except for monthly fuel adjustments based on OPIS, beginning in November), availability of

shipments may be affected by weather conditions and/or needs of other customers of your supplier.

Storage Fees

SALT PARTICIPATION AGREEMENT

How to Order Aggregates

Click on Procurement

Click on AggregatesSearch

How to Order Aggregates

Click on ViewCommodity

Codes and DescriptionsTo find theaggregateyou arelooking for…

Click on the Viewbutton associated withyour required

aggregate (its number will self-populate into the appropriate field)

Click on your County and press the submitbutton

Here is thelist of suppliersyou will needto contact:

Each View buttonwill reveal eachSupplier’s

Contactinformation

Note: you only need to send one RFQ per supplier (ex: only one RFQ is requiredfor Hanson …)

Whether you e-mail or fax your RFQ’s, remember you are required to contact every supplier in your county.

**If you are getting the material delivered, you must acceptthe lowest quote!!!

**If you are picking up the material yourself, you may account for your transportation cost (ex: if supplier A quotes $10 per ton and is 25 miles away and supplier B quotes $10.25 and is 1 mile away, you may choose supplier B.)

Stockpile Delivery F.O.B. Destination: Contractors shall quote a price per ton delivered to ___________________________’s location indicated. __________________________will award to the lowest responsive and responsible quote submitter. Selected contractors will receive a letter of award if applicable. Upon notification, Selected Contractors shall begin delivery to stockpile locations within five (5) working days after ______________________ provides notification to deliver and shall continue at a rate of 100 tons per day until the requested delivery quantity is completed. Delivery shall continue on an uninterrupted basis.

Order Cancellations: _________________________ reserves the right to cancel any order where the contractor fails to make delivery in accordance with the terms and conditions or established work schedules. The remaining order balance will be awarded to the next lowest responsible and responsive quote submitter who can meet the delivery schedule.

Delivery Delays: ________________ is not responsible for delays incurred by shippers due to stacking of the contractor’s trucks or charges resulting from such delays. Delays incurred that are clearly the fault of ______________________ shall be documented and submitted to _______________________________ for approval for reimbursement.

Quote Opening Date and Time: The quote-opening date and time will be specified in each Request for Quote. _________________________ will not accept quotes submitted after the time and date specified.

Include the following spec if requesting Tailgate SpreadingShort Description of Special Condition : TAILGATE SPREADING

Tailgate Spreading: If _____________ requests tailgate spreading the Contractor shall provide tailgate spreading. Cost for this service shall be included in the unit price quote.

The Delivery Rate per day can be changed to fit your needs

Sample Quote Form

Vendors

• You MUST send a Request for Quote to ALL Qualified Vendors.

• Do not send a Request for Quote to, or accept a quote from, any vendor who has not indicated they will allow Piggyback Purchases

• Do not send a Request for Quote to, or accept a quote from, any vendor not listed in the Aggregate Contract

• Doing so is a violation of the contract and can result in an Audit Finding against your Municipality

• You MUST choose the low-bid supplier or reject all bids.

Commodity Specialist Jamon Fogarty manages the Aggregates Contract.

Please field any specific questions you may have to Jamon at:

717.346.3848 or jafogarty@pa.gov

OTHER USES OF COSTARS PROGRAM

PRICE BENCHMARKINGEven if you purchase through another source, use the COSTARS or State Agency Contract to ensure competitive price.

BUDGETINGWhile preparing your budget, use the COSTARS or State Agency Contract to estimate your commodity purchasing costs.

GRANT WRITINGWhile preparing your grant, use the COSTARS or

State Agency Contract to estimate your costs.

Resources at Your Fingertips

• By Phone• Live technical support from COSTARS staff • (866) 768-STAR (7827)

• Online• www.dgs.state.pa.us/COSTARS• Self-service Portal for research and

customer service needs• E-mail: gs-pacostars@state.pa.us

• In Person• Training and Education• Town Hall Meetings and Workshops

Contact Information

Scott Cross, Director, Programs & Systems Division

Bruce Beardsley, Manager of Marketing & Constituent Relations 717-214-3432

Richard Zuber, Manager of Marketing & Constituent Relations 717-346-3838

Dawn Eshenour, Contract Program ManagerPhone 717-346-4297

COSTARS BENEFITS

WIN/WIN/WIN

Reduces Administrative costs of Bidding & Contract Award

Flexibility in choosing Supplier

Multiple commodity choices to meet needs

Competitive pricing, saving taxpayer funds.

Provides opportunities for more businesses to “get a piece of the pie.”

Increases volume on state contracts, reducing state prices.

Collection of Suplliers’ fees defers taxpayer costs of program.

“…The COSTARS Program is… a great example of how our

government can partner with the private sector to produce

taxpayer savings!”

DGS Secretary Sheri Phillips