Title
Request for Adoption of Resolution of Opposition - House Bills 4587 and 4588 Requiring Local Governments to Purchase Through the State's MiDeal Program
Body
Whereas, these Bills would require the City of Rochester Hills to participate in the MiDeal Plan, a State cooperative bulk purchasing program and will have a negative affect on the procurement process of Rochester Hills and our effort to obtain the best value. Although the MiDeal cooperative program is beneficial to some local governments, these contracts do not always provide the best value in terms of cost, timeliness, delivery, quantity and quality to local communities; and
Whereas, the State currently receives a percentage of the cost of purchases on its contracts used by local governments. These Bills will increase State revenues at the expense of local government. There are multiple governmental cooperative groups and contracts, which local governments may utilize, from national to local levels. Rochester Hills' decision to utilize a cooperative contract is based on the value of the contract to the City that best meets its needs in all capacities; and
Whereas, the Bills limit competition to suppliers who may not have the ability and capacity to deliver to a large entity with statewide delivery; and
Whereas, the market in southeastern Michigan is not the same as the rest of the State. The local MITN cooperative group in southeastern Michigan obtained pricing for road salt in 2006 at approximately $2.00 a ton less than the State contract; and
Whereas, the Bills lessen the credibility of local governments and the solicitation processes, when a local government bids a product or service, but is required to utilize a State contract; and
Whereas, the Bills add another layer of bureaucracy and administrative expense to the procurement process. Significant staff will be required in the State Treasurer's office to determine if local governments overpaid based on State prices and...
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