{"id":2983,"date":"2010-11-08T15:06:00","date_gmt":"2010-11-08T15:06:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2010\/11\/08\/local-jobs-and-total-cost-and-bankrolling-by-the-government-oh-my\/"},"modified":"2021-07-27T09:59:07","modified_gmt":"2021-07-27T13:59:07","slug":"local-jobs-and-total-cost-and-bankrolling-by-the-government-oh-my","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/local-jobs-and-total-cost-and-bankrolling-by-the-government-oh-my\/","title":{"rendered":"Local Jobs And Total Cost And Bankrolling By The Government, Oh My!"},"content":{"rendered":"<p>Rich Lord of the Pittsburgh Post-Gazette is becoming one of the country\u2019s better reporters for sniffing out government procurement controversies. In an article in today\u2019s edition, he sheds some light on some details behind a million dollar procurement of lights by the Allegheny County Airport Authority. In this procurement, the Airport Authority spent nearly 30% more than it could have by selecting another supplier.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>So is there something shady going on here?<\/p>\n<p>Not necessarily. The winning supplier had some advantages that apparently warranted the premium.<\/p>\n<p>What were those advantages? They included the following:<\/p>\n<ul>\n<li>They supported local business and jobs: the distributor of the lights is located in Allegheny County and the manufacturer is also local, based in a Pennsylvania town just outside of the county.<\/li>\n<li>The Airport Authority estimates that it will achieve an \u201cestimated $160,000-per-year savings on its electricity bill\u201d by using the winning bidder\u2019s lights, which put \u201cout more light per watt than products made by bigger competitors.\u201d<\/li>\n<li>The Airport Authority had previously won a grant from the State of Pennsylvania which covered half of the cost of replacing its outdoor lights with LEDs. This grant factored into the supplier selection as the article that that if \u201cthe authority hadn\u2019t bought products that created in-state jobs\u2026it would have lost the $800,000 state grant.\u201d<\/li>\n<\/ul>\n<p>In my view, this was a fair deal as long as:<\/p>\n<ul>\n<li>The total cost calculations and estimates were done correctly;<\/li>\n<li>The total cost represents the best long-term deal to the taxpayers of Allegheny County; and<\/li>\n<li>The supplier selection criteria were published in advance of bid submission.<\/li>\n<\/ul>\n<p>Of course, competitors to the winning supplier are barking about the award, saying things like the winning manufacturer must be \u201ctrading off something,\u201d claiming that the winning manufacturer\u2019s lights \u201cmay burn out more quickly,\u201d and requesting engineering evaluations.<\/p>\n<p>Time will tell how bright this decision was.<\/p>\n<p>And, when it does, here\u2019s hoping that the Airport Authority documents what it did right or wrong and applies any lessons learned to future purchases so that it can avoid being the subject of a Rich Lord column.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rich Lord of the Pittsburgh Post-Gazette is becoming one of [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4089,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Local Jobs And Total Cost And Bankrolling By The Government, Oh My! 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