4th quarter 2007

Spending by county government, cities means millions to local suppliers

Most of us prefer to spend our money locally when possible. The same goes for Volusia County government. While the county’s Purchasing and Contracts Division always seeks the best quality at the best price, close to two thirds of the county’s spending is with Volusia companies.

“Our mission is to provide for fair and equitable treatment of all persons involved in public purchasing by the county, to maximize the purchasing value of public funds in procurement, and to provide safeguards for maintaining a procurement system of quality and integrity,” said Amy J. Rossi, CPPB, the county’s acting purchasing and contracts director.

“We are pleased when we are able to buy from local firms, and that does happen quite often,” Rossi said. “But local companies have to compete with suppliers from across the nation and sometimes around the world. Fortunately, we find that local firms are very, very competitive and often prevail when it comes to price and quality.”

Of the nearly 1,000 contracts in place last year (price agreements, architectural and engineering services, continuing contracts, etc.), 384 were Volusia County vendors. County government spending with local vendors for the 2006/2007 fiscal year was approximately $171 million.

To become a vendor with Volusia County Government, it is important to register and participate in the various requests for information. After the hurricanes of 2004, it became apparent that many goods and services that were bought from out-of-town companies could have been purchased locally. So, a broad appeal was issued to local companies to register with the county and provide necessary information to become a county supplier for the next tragedy that eventually would strike.

Unfortunately, by the time the tornadoes of 2007 roared through Volusia County, few firms had registered and, therefore, missed out on supplying the county with goods and services during the recovery period.

“It takes a certain discipline and vigilance, but for those local companies that cross the T’s and dot the I’s and offer reliable service and competitive pricing, it can be well worth the effort,” said Rossi.

While the county prefers to use local firms, there is no bidding advantage extended to local companies. When all things are equal, the award will go to a local company. With bids and requests for proposals, which are price driven and deal with common goods, also known as commodities, prices are compared on a head-to-head basis. There is no allowance for local bidders based on location unless there is a tie. Similarly, for professional services that are not selected based on price, local firms must compete with others as to qualifications, references, financial strength and experience.

One area where local firms are especially competitive is paving and road construction. Significant contracts have been won by locally-based Halifax Paving, P&S Paving, Masci Construction and Built-Rite Construction, according to Rossi, who is a certified professional public buyer, a national designation that is a professional standard among public entities.

Another area that has resulted in millions of dollars being spent with local firms is construction work on the $76-million Ocean Center expansion. Last year, in an effort to streamline construction and maximize savings, Volusia County and OCORP (the construction representative on the project) began leading the Ocean Center expansion construction.

County Manager Jim Dinneen reported that 48 percent of the building contracts are with local companies. “Working with qualified local firms is beneficial to Volusia County
Government,” said Barry Lilja, a contracts administrator on the Ocean Center expansion project and former county employee with experience in contracts administration, purchasing and public works. The expansion project is slated for completion in 2008.

Lilja estimates that spending with local firms for goods and services totals $24.6 million. This includes $17.1 million in prime contracts to local contractors, $3.7 million in direct purchase orders to local vendors and $3.8 million in contract value for the local construction manager firm. Lilja pointed out these numbers only include Volusia County firms. When considering spending among firms in nearby Flagler, Seminole, Orange and Brevard counties, the numbers expand significantly. In addition, some local firms are sub-consultants of the principal design firm and those numbers are not included above.

“We appreciate the opportunity of working with local firms,” said Lilja. “It’s good for the project, it’s good for the county, and it’s good for the local economy.” Lilja noted there could be significant communication, logistical and financial advantages in dealing locally, which add value to contracts with local firms. “I only wish more local firms would exercise their due diligence and get on the rolls as prospective vendors,” he said.

Volusia County’s interim director of purchasing, Amy Rossi (pictured, right), talks
with Dom Sotero, a purchasing agent with the county.