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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
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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
%
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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
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$16,089,198
|
$1,366,272
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8.49%
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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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