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Page Updated 10/31/07

Savings studies were conducted to determine how much our members save through cooperative purchasing. Below is a brief synopsis of each report. 


CONTENTS

Fiscal Year 2001 Study
Fiscal Year 1999 Study
Fiscal Year 1997 Study


Fiscal Year 2001 Study

Third Study Confirms Results of Earlier Studies –
Cooperative Saves Public Schools Millions

Public and non-public schools in Arizona are saving over 13 percent on purchases, a third independent study of the Mohave Educational Services Cooperative (Mohave) shows.

The Phoenix accounting firm of Fester & Chapman P.C. (formerly Starkweather & Fester P.C.) conducted a half-year pricing study to determine the difference in prices paid by Mohave members compared to what vendors stated members would have paid had they ordered directly from the vendors. The study included a review of purchase orders for $22.6 million, approximately one-fourth of the purchases made through Mohave during the study period.

The study covered the period from July 1, 2001, to December 31, 2001. Purchase orders were randomly selected for testing from three categories, using a statistical sampling method. Following are the results:

 

Dollar Amount of POs Selected

Dollar Amount of Vendor Quotes

Savings

Percentage Savings

..POs More Than $40,000

$20,278,257

$23,475,002

$3,196,745

13.62 %

..POs $10,000 to $40,000

1,923,083

2,215,028

291,945

13.18 %

..POs Less Than $10,000

381,477

429,367

47,890

11.15 %

..Study Totals

$22,582,817

$26,119,397

$3,536,580

13.54 %

The previous study covering the period from January 1, 1999, to June 30, 1999, showed savings of 8.49%. The above savings do not include Mohave’s one percent processing charge.

In addition to the pricing study, a member satisfaction survey was conducted by Fester & Chapman P.C. Fifty public school and non-public school members were randomly selected to participate and thirty-seven responded. On a scale of 1 to 5, with five being strongly agree, the overall average was 4.1, which was the average in the study conducted in 1999. Mohave received the highest score, an average of 4.3, in support of the statement: We are satisfied with Mohave’s services and would recommend Mohave to other organizations.

Summary provided by Fester and Chapman P.C. April 15, 2003

Fiscal Year 1999 Study

Follow-up Study Reaches Same Conclusion-
Cooperative Saves Public Schools Millions

Public school districts and other governmental agencies in Arizona are saving over 7 percent on purchases, a second independent study of the Mohave Educational Services Cooperative (Mohave) shows.

The Phoenix accounting firm of Starkweather & Fester P.C. conducted a six months long study to determine the difference in prices paid by Mohave members compared to what vendors stated members would have paid had they ordered directly from the vendors. The study included a review of purchase orders for $14.7 million, approximately one-third of the purchases made through Mohave during the study period.

The study covered the period from January 1, 1999, to June 30, 1999. Purchase orders were randomly selected for testing from three categories, using a statistical sampling method. Following are the results:

 

Dollar Amount of POs Selected

Dollar Amount of Vendor Quotes

Savings

Percentage Savings

..POs More Than $40,000

$12,270,709

$13,201,505

 $930,796

7.05%

..POs $10,000 to $40,000

2,031,856

2,417,989

386,133

 15.97

..POs Less Than $10,000

 420,361

 469,704

 49,343

10.51

..Study Totals

$14,722,926

$16,089,198

$1,366,272

 8.49%

The previous study covering the period from July 1, 1996, to June 30, 1997, showed savings of 9.31%. The above savings do not include Mohave's one percent processing charge.

In addition to the pricing study, a member satisfaction survey was conducted by Starkweather & Fester P.C. Fifty members were randomly selected to participate and thirty-one responded. On a scale of 1 to 5, with five being strongly agree, the overall average was 4.1, compared to 3.9 for the previous study. Mohave received the highest score, an average of 4.5, in support of the statement: We save time and money associated with bid preparation, evaluation, and selection when we use a Mohave contract.

A construction savings survey of a Mohave member was also conducted as part of the study. Based on 4 major construction purchases, the member saved between 15 and 27 percent by using Mohave.

Summary provided by Starkweather and Fester, P.C., March 16, 2000

Fiscal Year 1997 Study

Cooperative Saves Public Schools Millions, Study Shows

Public school districts and other governmental agencies in Arizona are saving 8 to 10 per cent on purchases -- a total of more than $7.5 million last year alone -- an independent study of the Mohave Educational Services Cooperative (Mohave) shows.

The Phoenix accounting firm of Starkweather & Fester P.C. conducted a year long study to determine the difference in prices paid by Mohave members compared to what vendors stated members would have paid had they ordered directly from the vendors. The study included a review of purchase orders for $27 million, approximately one-third of the $83 million in purchases made through Mohave during fiscal year 1996/97.

The study covered the period from July 1, 1996, to June 30, 1997. Purchase orders were randomly selected for testing from five categories, using a statistical sampling method. Following are the results:

 

Dollar Amount of POs Selected

Dollar Amount of Vendor Quotes

Savings

Percentage Savings

..POs More Than $40,000

$16,443,837

 $18,289,532

 $1,845,695

10.09%

..POs $10,000 to $40,000

  2,052,253

 2,245,461

193,208

 8.60

..POs Less Than $10,000

 395,049

 431,567

 36,518

 8.46

..POs for Leased Property

 5,921,873

 6,629,549

 707,676

 10.67

..POs for Apple Computer

 2,281,497

 2,281,497

 0

 0.00

..Study Totals

 $27,094,509

 $29,877,606

 $2,783,097

 9.31%

The above savings do not include Mohave's one percent processing charge.

In addition to the pricing study, a member satisfaction survey was conducted by Starkweather & Fester P.C. Fifty members were randomly selected to participate and thirty responded. On a scale of 1 to 5, with five being strongly agree, the overall average was 3.9. Mohave received the highest scores, an average of 4.3, in support of the following two statements: we save time and money by avoiding preparing requests for proposals every time we want to make a major purchase; and we would recommend Mohave to other organizations.

Summary provided by Starkweather and Fester, P.C., Oct. 16, 1997

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