Effective Procurement
Yields Positive Results

The federal government defines procurement as obtaining or purchasing services, supplies and equipment in conformance with applicable laws and regulations.

A large portion of the funding for services that regional development organizations administer and provide, such as affordable housing programs, come with the paperwork or “red tape” associated with procurement. In an effort to reduce delays created by red tape, regional development organizations (RDOs) have been using technology and developing procurement policies that efficiently comply with laws and regulations.

In addition, regional organizations are offering their expertise in procurement practices to local businesses interested in bidding or competing for state, federal and local contracting opportunities. Providing this assistance and enabling local businesses the opportunity to be a competitive bidder brings their rural and small metropolitan areas jobs, revenue, and indirectly enhances the tax base and potential to increase the quality of public services.

Tennessee Region Streamlines Purchasing The Upper Cumberland Development District, an EDA funded district serving a fourteen county region in Cookeville, Tennessee has streamlined purchasing by designating a purchasing officer and updating their purchasing policy. The district administers many programs including Community Development Block Grant projects and the HUD HOME program, and a variety of documentation is required for purchasing and acquiring bids. Lewis Betterton, Upper Cumberland's Director of Finance explains, “Having a designated officer and a written policy enables us to consistently comply with the multitude of grant or funding requirements attached to our programs. Having our policy based on the state price guidelines has pushed the dollar threshold at which we are required to get written bids before purchasing up to $1,000, reducing red tape.” For more information contact: Lewis Betterton of Upper Cumberland at 931/432-4111.

Optimal Procurement Practices
RDOs receive funding from state, federal, private and various local sources to support the programs they administer. Each funding source requires different purchasing and bidding documentation, which often hinders and delays the breadth and effectiveness of programs; regions manage the demands of required documentation by improving procedures with streamlining, technology and policy development.

Purchasing Officers
Some regional organizations have streamlined purchasing by hiring a procurement officer to ensure that procurement policy is followed. The purchasing officer can also identify changes in documentation requirements.

Purchasing Officer Procedures

• Process purchase requisitions

• Issue Purchase Orders (POs)

• Issue and evaluate bids, proposals, and quotations

• Provide purchasing training

• Verify licenses and insurance coverage

• Process vendor applications

e-Procurement is just one resource available that addresses the topic of procurement.

E-Procurement
Some regions have been using electronic procurement or E-procurement (online purchasing materials/supplies). E-procurement often drives down the cost and paper work involved in purchasing, and online advertisements open the competition for bidding to more vendors.

Policies
Many regional development organizations have established procurement policies that their organization’s programs must adhere to, such as setting price guidelines or the dollar threshold at which written documentation, for either bidding or purchasing, must be done.

Utah Administers Procurement Assistance In 1985, John Bryan, currently the Director of Utah Procurement Assistance at the Utah Department of Community and Economic Development, was instrumental in designing a statewide network of Procurement Technical Assistance Centers to be operated by Utah's regional development organizations. Bryan said, “The Governor worked with us to design the Centers as a way to infuse money into local economies. The Association of Governments and Economic Development Districts were and still are the appropriate body to receive procurement services.” The Six County Economic Development District (EDD), an EDA funded district in Richfield, central Utah has proven that the regional development organizations have the local know-how to promote procurement and get businesses active in pursuing bids and contracts. Emery Polelonema, Six County’s Procurement Specialist and Planning Director explained, “We get people connected online with procurement marketing resources, like the US Small Business Administration's PRO-Netâ that allows them to search for contracting opportunities in the Commerce Business Daily and list their business for potential contracting.” Six County EDD has assisted their region in obtaining procurement contracts valuing $25 million since 1989, excluding sub contracts. For more information contact: Emery Polelonema at 435/896-6730 or visit http://pro-net.sba.gov; or find a Procurement Technical Assistance Center in your state at www.sellingtothegovernment.net; or Department of Commerce’s Commerce Business Daily http://cbdnet.access.gpo.gov.

Providing Procurement Technical Assistance
With support from the Department of Defense and Small Business Administration (SBA) Small Business Development Centers, Procurement Technical Assistance Centers are teaching local businesses about becoming eligible and competitive for federal, state and local contracts including training workshops, bid preparation, bid notification assistance, counseling, certifications courses and marketing events. The certification workshops have become very popular among local businesses that want to become eligible for what are known as “vendor lists” -- a list of businesses that fit funding/program requirements, such as federal and state prisons requirements for prior security and cost efficiency certification.

Pennsylvania COG Offers Assistance The SEDA Council of Governments (SEDA COG) in Central Pennsylvania, an EDA funded district serving eleven counties operates Central Pennsylvania's Procurement Technical Assistance Center. The Center offers various workshops for minority-owned businesses to enhance their marketability to federal entities, such as the Navy. Workshops also assist businesses in obtaining certifications needed to register for the Pennsylvania Department of General Services vendor list. Other seminars provide information on the Historically Underutilized Business Zone (HUBzone) program, Federal Programs for Veteran-Owned Businesses and Government Contracting Information Online. The Center assisted businesses with the acquisition of over 2,000 contracts with a cumulative dollar value of approximately $272 million last year, not including subcontracts and works closely with Pennsylvania's Export Team. For more information contact: Scott Duncan at SEDA COG's Central Pennsylvania Procurement Technical Assistance Center, 570/524-4491 or sedapta@seda-cog.org

The workshops help businesses learn how they can adjust operations to meet program contracting or bid standards, such as using the proper recycled products or non-hazardous materials to be eligible to provide services for Environmental Protection Agency or Department of Defense contracts.

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