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Statement ofthe Issue Montgomery County Organizational Reform Commission Procurement Currently, County agencies take limited advantage of their combined purchasing power resulting in duplicative costs for the procurement o f similar goods and services. Discussion ofthe Issue and Recommendations ORC members held interviews with some but not all agency heads and procurement directors. The work of the Cross-Agency Resource-Sharing (CARS) Committee also provided useful recommendations on the purchasing of vehicles and paper, but these are only part of a short-term strategy. CARS acknowledges that a long-term strategy should expand this effort to other goods and services, and references a shared-services modeL We focused on the duplicative functions and structures that have prevented procurement consolidation in the past. We concluded that a limited scope and limited procurement consolidation would probably not create a sustainable and useful change. Quasi-formal coordination groups and optional or "buy-in" arrangements are not likely to be maintained over the long run. This is due to multiple factors, including differences in approach to procurement on an agency-by-agency basis and minor differences in requirements that may be perceived as significant. Savings in consolidating these functions is likely to be achieved in two primary ways: combined purchasing power and potential elimination of workyears, due to fewer procurement activities. A third potential means ofsavings is the elimination ofduplicative or unnecessary procurements in the future. Savings by elimination of these types of procurements could be significant but are impossible to quantify. The federal government is moving in this direction, as the U.S. General Services Administration has just launched a new version of an on-line shopping system, with more than 28 million products available for its broad user base. This is a product-centric approach, similar to that of Amazon, and its result is improved service and reduced costs. )0> To increase opportunitiesfor significant cost-savings in the purchase ofgoods and services across multiple agencies, we recommend the creation of a Procurement Shared Service Center that would utilize a centralized procurement schedule and catalog. The County should take a phased approach to creating a central procurement schedule and catalog of goods and services. As noted above, centralized procurement of vehicles and paper has been recommended by CARS. However, these procurements are being consolidated within an existing entity (County government for vehicles and MCPS for paper). This collaboration is beneficial, but it is not a true shared-service model. Beginning with a comprehensive list of common goods and services, a Shared Service Center would be the central purchasing authority for these items. Among the items: office supplies, telecommunications equipment, professional services, and furniture. The catalog would be - 24PDF Image | Montgomery County Organizational Reform
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