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Local Aid and Finance Regional purchasing group formed
Inspired in part by what has long been in place on Cape Cod, 10 communities in the southeast region of the state have formed a purchasing consortium.
In late June, the two cities and eight towns – Acushnet, Berkeley, Dartmouth, Fairhaven, Fall River, Freetown, Marion, New Bedford, Somerset and Westport – joined to negotiate a joint contract for heating oil and propane gas.
By pooling their purchasing power, the consortium was able to secure a contract limiting the provider’s maximum profit to less than 9 cents per gallon, roughly half of what the state’s contract for fuel oil allows, according to Freetown Town Administrator Winn Davis.
In an era of fuel-price volatility, “We felt that this validated the consortium approach,” Davis said.
The consortium, which Davis said is likely to attract other area towns, also plans to bid jointly on gasoline and diesel oil, salt and sand, and office supplies.
The idea for the procurement program grew out of a conversation last fall between Jean Fox, a Freetown selectman, and New Bedford Mayor Scott Lang. Davis, a former Dukes County manager, said the local program is based on the template used in Barnstable County.
Over the past eight years, Barnstable County has been able to save towns a total of $9 million in heating oil costs and $5 million in gasoline and diesel costs, according to Elaine Davis, Barnstable County’s chief procurement officer. She said that during the past fiscal year, the savings were particularly notable.
“We definitely save the towns money, and I think most of the towns on the Cape really appreciate what we do,” she said.
Local Aid and Finance Regional purchasing group formed
Regional purchasing group formed
Inspired in part by what has long been in place on Cape Cod, 10 communities in the southeast region of the state have formed a purchasing consortium.
In late June, the two cities and eight towns – Acushnet, Berkeley, Dartmouth, Fairhaven, Fall River, Freetown, Marion, New Bedford, Somerset and Westport – joined to negotiate a joint contract for heating oil and propane gas.
By pooling their purchasing power, the consortium was able to secure a contract limiting the provider’s maximum profit to less than 9 cents per gallon, roughly half of what the state’s contract for fuel oil allows, according to Freetown Town Administrator Winn Davis.
In an era of fuel-price volatility, “We felt that this validated the consortium approach,” Davis said.
The consortium, which Davis said is likely to attract other area towns, also plans to bid jointly on gasoline and diesel oil, salt and sand, and office supplies.
The idea for the procurement program grew out of a conversation last fall between Jean Fox, a Freetown selectman, and New Bedford Mayor Scott Lang. Davis, a former Dukes County manager, said the local program is based on the template used in Barnstable County.
Over the past eight years, Barnstable County has been able to save towns a total of $9 million in heating oil costs and $5 million in gasoline and diesel costs, according to Elaine Davis, Barnstable County’s chief procurement officer. She said that during the past fiscal year, the savings were particularly notable.
“We definitely save the towns money, and I think most of the towns on the Cape really appreciate what we do,” she said.
Written by MMA Associate Editor Mitch Evich
