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6.1.B. - Page 15 The Cities and County can implement these processes, without substantially changing their existing procurement processes.60 City finance departments already create preferred vendor lists and disseminate them to departments. The PD's purchasing agents already conduct negotiations with vendors to unlock volume -based discounts. Indeed, the increased cost savings are unlocked by combining preexisting and previously independent operations as to maximize the negotiating power of all parties involved. Given that the Cities and the County spend over $725 million per year, and assuming only a 1 percent average cost saving, for example, municipalities in San Mateo County would save upwards of $7 million. In a review of the federal government's Strategic Sourcing, 61 the Government Accountability Office found that, "when strategic sourcing was used, annual savings was along the lines of 5-20 percent. ,62 While the mechanisms by which federal government's Strategic Sourcing achieved savings is equivalent to C -CPC, Strategic Sourcing's larger scale means C -CPC is unlikely to achieve 20 percent savings. The Grand Jury estimates that a 5-15 percent annual savings spread is achievable through C -CPC. When the 5-15 percent annual average savings spread is applied to C -CPC, projected savings are between $15 million and $45 million for the County and $21.25 million and $63.75 million for the Cities, for a total savings of $108.75 million. There is precedent for C -CPC within the County and throughout California. As previously discussed, the Cities and the County have already achieved significant savings through cooperatively purchased goods and services. Because of this cooperation, the Cities and the County are familiar with cooperative purchasing agreements and piggyback contracts. As such, C -CPC would not be introducing new purchasing methods, but rather be introducing a formal mechanism by which the Cities and County could expand and formalize the use of cooperative purchasing practices to achieve greater savings. Other counties and the State of California have successfully adopted similar C -CPC practices. For instance, in 1999 Los Angeles County created a cooperative purchasing program with the cities with its jurisdiction for the purchase of recycled paper goods. 63 Under this program, cities could join Los Angeles County in purchasing recycled paper such that participating entities benefitted from greater purchasing power. Per the Los Angeles County Procurement Program website, 26 cities participate in the program, with the City of Los Angeles and County of Los Angeles alone saving $84,000 and $40,000 per year, respectively. 64 Similarly, Alameda County uses cooperative purchasing with cities to achieve its Strategic Vision for environmental 61 Interviews with City Finance Officials. 61 Strategic Sourcing is the term for cooperative purchasing between federal agencies overseen by the Office of Federal Procurement Policy. 62 Charles Clark, "Government Doesn't use Bulk -Purchasing Initiative Enough, Auditors Say" Government Executive October 4, 2014. Accessed On: May 15, 2018.<httvs: //www. jzovexec. com/contractinj/2012/10%overnment-doesnt-use-bulk-_purchasinjz-initiative-enoujh- a udi tors-sav/58590/> 63 Department of Public Works "Los Angeles County Procurement Programs" The County of Los Angeles Accessed on April 20, 2018 https://dnw.lacounty.eov/end/awards/nrocurement.cfm. 64 Ibid. 2017-2018 San Mateo County Civil Grand Jury 12