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6.1.13. - Page 5 for all purchasing functions. Due to centralized purchasing authority, purchasing agents are better able to identify goods and services with a high potential for savings and then leverage their experience, greater knowledge of markets, and their municipality's market power to negotiate better terms, including lower prices, with vendors. This report identifies ways the Cities can attain the cost-saving benefits of centralized purchasing systems while retaining the benefits of a decentralized purchasing system. Three approaches can improve decentralized purchasing systems without increasing staffing and operations costs: (1) Increase the use of "piggybacking" to access beneficial terms of contracts previously entered by public entities. (2) Utilize cooperative purchasing agreements to allow Cities to obtain volume discounts among themselves, even without County participation. (3) Collaborate with the County's Procurement Division to negotiate lower prices for common goods and services. If these changes resulted in even a conservative five percent average savings on procurements, the County could save more than $15 million and the Cities collectively could save more than $21.25 million per year. GLOSSARY and ABBREVIATIONS California Association of Public Procurement Officials (the CAPPO): The CAPPO is a nonprofit organization dedicated to maintaining the highest standards of professional behavior and ethical conduct in public purchasing. As the oldest public procurement association in the United States, CAPPO works to provide tools to buyers in the public sector that will help them develop their professional skills for their benefit and the benefit of their agencies. California Department of General Services (the DGS or General Services?): The DGS serves as business manager for the state of California. The DGS provides a variety of services to state agencies, including procurement and acquisition solutions. Centralized Procurement: Centralized procurement means that a single department controls and manages the purchasing for the whole organization. Ideally a manager oversees the purchasing department regarding what materials need to be purchased and in what quantity.5 City -County Procurement Cooperation (C -CPC): C -CPC is a term for practices, if adopted, that will allow Cities and the County to save millions of dollars on procurement each year. Cooperative Purchasing Agreements: A type of procurement in which multiple purchasing entities collaborate in purchasing to increase their market power, thereby gaining access to lower prices. 5 Effia Soft, "Centralized vs. Decentralized Purchasing" Effiasoft.com Accessed on May 20, 2018 https: //effiasoft. com/centralized-vs-decentralized-purchasing. 2017-2018 San Mateo County Civil Grand Jury