Detroit Public Schools

Profile 

Agency: Detroit Public Schools
Population: 951,127
Employees: 25,000 (largest employer in the City of Detroit)
Onvia Member Since: April, 2001
Buyers Using Onvia: 7
Annual Budget: approximately $1.8 billion (operating budget)
Bid Volume: 144 Formal Bids / 338 Informal Quotes 

Agency Challenges 
The Detroit Public Schools (DPS) has been under a state mandated educational reform law (Public Act 10) since March of 1999. The reforms resulted in the selection of a Chief Executive Officer, Dr. Kenneth Stephen Burnley, who immediately established four key district goals, one of which included "creating a more effective, efficient organization." To facilitate this goal, Dr. Burnley sought to overhaul the entire purchasing system. He established a Contracting and Procurement Department and, after a nationwide search to bring to Detroit the most talented persons from across the country to lead this new Department, appointed a Chief Contracting Officer and three Contracting Officers. These persons found no existing computerized vendor database or vendor classification management system to which vendors desiring to do business with Detroit Public Schools could be enrolled in order for them to receive ITBs, RFPs, RFIs and RFQs for the many goods and services needed to improve student achievement in the nation's tenth largest K-12 school system. It addition, implementation of a $1.5 Billion bond project for the construction of new schools was on an aggressive timetable with four new schools opening in August, 2001 that would require all the furniture, fixtures and equipment (FF&E) typically purchased by the Owner in school construction projects. Therefore, there was an immediate need to build a vendor database management system that would stimulate competition for DPS' business, reduce paperwork and operational costs, expedite implementation of the new Contracting and Procurement Department, and create/promote a level playing field for all vendors desiring to do business with DPS.

Solutions 
Proposals were examined from vendors who desired to provide DPS with the desired services. After due consideration, it was determined that Onvia DemandStar was the best solution for DPS. In-house training on Onvia DemandStar was provided by an Onvia DemandStar trainer, with simultaneous training provided on the National Institute of Governmental Purchasing, Inc. (NIGP) Commodity and Service Code System that is used by Onvia DemandStar to categorize Vendors according to the goods and/or services which they desire to provide to government agencies. The Chief Contracting Officer wrote to every active vendor doing business with DPS, informing of the decision to have Onvia DemandStar host its vendor database management system, and providing information on how Vendors would subscribe to Onvia DemandStar in order to receive ITBs, RFPs, RFIs and RFQs released by DPS. The Contracting and Procurement Department held an "Industry Day" in Detroit to inform vendors of the rapid progress being made by Dr. Burnley in the overhaul of DPS' purchasing system, with emphasis on the important role of Onvia DemandStar in the daily operations of the new Department.

As soon as ITBs, RFPs, RFIs and RFQs were distributed via Onvia DemandStar, many benefits were immediately realized. The quality and reliability of Onvia DemandStar were quickly evident. Management of complex solicitation documents was simplified. An immediate cost savings was realized with the elimination of not only the labor costs needed to copy and package solicitation documents but also their associated delivery costs. Addendum were able to be quickly and efficiently delivered to all persons known to have received a copy of the initial solicitation documents. DPS was also able to be aggressive in using Onvia DemandStar's QuoteWire® functionality in the purchase of goods which further reduced the delivery time for goods ordered by schools for use in the classroom.

Summary 
Onvia DemandStar has exceeded the initial expectations of the Contracting and Procurement Department. The size and strength of the Onvia DemandStar network has produced a vendor pool in virtually every marketplace from which DPS purchases goods and services. Competition for DPS' business has increased, resulting in an increase in both the quantity and quality of responses received. The operational cost savings realized by using Onvia DemandStar has resulted in the Department being able to re-allocate budgeted funds to enhance its services provided to schools. The Onvia DemandStar customer service staff has been responsive to the needs of both DPS and vendors. A level playing field for all vendors desiring to compete for DPS' business has been established.