Procurement News: Delay in 3 Percent Withholding Tax

U.S. Rep. Kendrick Meek’s Withholding Tax Language Included in Chairman Rangel’s Tax Collection Responsibility Act
 
Washington, DC...U.S. Representative Kendrick Meek’s (D-FL) language delaying implementation of a 3 percent withholding tax on the value of most government contracts was included in Ways and Means Committee Chairman Charles B. Rangel’s Tax Collection Responsibility Act of 2007, H.R. 3056. 
 
The legislation was marked up by the Ways and Means Committee today. 
 
“When Chairman Rangel adds language to his signature bill, you know it is an important issue for him and for the Ways and Means Committee.  The momentum is building toward complete repeal of this unfair 3 percent withholding tax provision.  We are one step closer to achieving full repeal,” said Congressman Meek.  “The private sector Government Withholding Relief Coalition and public sector entities like the National Association of Counties have played an integral part in this process.  Today’s victory is in large part due to their grassroots lobbying effort.”
 
Congressman Meek’s language in the Chairman’s bill delays implementation of Section 511 of the Tax Increase and Reconciliation Act of 2005 from 2011 to 2012, and requires the Treasury Department to submit a report to the relevant Congressional committees evaluating the costs incurred to state and local governments, and businesses of Section 511. 
 
Section 511 requires all levels of government with more than $100 million in annual procurement to withhold 3 percent of the payment for most goods and services procured by that governmental entity. This sweeping and unfunded mandate imposes massive administrative and financial burdens on local governments as they will have to retool their accounts payable systems to implement the new law. This requirement will also sap cash flows needed for day-to-day, private sector business operations and force some companies to alter their business models and pricing schemes when dealing with government customers.
 
The delay in implementation signals the Committee’s intent to find a legislative remedy to repeal the 3 percent withholding tax. 
 
Congressman Meek’s bipartisan legislation, H.R. 1023, has over 180 cosponsors and would repeal section 511 of the Tax Increase Prevention and Reconciliation Act of 2005.  Rep. Wally Herger (R-CA) is the bill’s original co-sponsor.

"Many people living below the poverty line reside in our cities, counties and urban centers and they deserve more," said Congressman Kendrick B. Meek.  "If Section 511 is not repealed, the poor will be further squeezed, while local government services and day-to-day operations would be jeopardized.” 

Congressman Meek added, “Law abiding, tax paying small businesses and companies pursuing government contracts should not all be punished because of a few bad actors.  If implemented, Section 511 would discourage many vendors from bidding on government contracts, reducing competition and increasing prices.”

U.S. Rep. Kendrick B. Meek represents the 17th Congressional District of Florida which includes parts of Miami-Dade and Broward Counties.  He serves as the lone Floridian sitting on the House Committee on Ways and Means, and also sits on the House Armed Services Committee. 

This information was reprinted from a press release written by Adam Sharon, Press Secretary, U.S. Representative Kendrick B. Meek, 1039 Longworth House Office Building,  Washington, DC 20515.
 

Education: New Advanced Course - Risk Management in Public Contracting

New in September, "Risk Management in Public Contracting". 

Risk is a critical consideration in the contracting and procurement process. A thoughtful and proactive approach toward risk, as it relates to specific procurement actions, contributes to the success of contract performance.

Risk management is directly related to the successful achievement of targeted goals and objectives. The procurement manager must ensure that the risks associated with each procurement action have been identified, assessed, and mitigated to the practicable maximum extent, while taking cost and other factors into consideration.

The emphasis of this course is on developing a solid understanding of the complexities of risk management and recognizing the importance of planning, monitoring and proactive insight and oversight into risk areas related to the contract’s stated performance outputs and outcomes. 
 
Risk Management is taught by certified NIGP instructors each of whom has significant experience with this subject matter.  A solid knowledge of contract administration is recommended as a prerequisite for this course.  This course is available September 1.

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Trends and Practices: Commercial Card for Accounts Payable

The following introduction to commercial card use by Accounts Payable departments is excerpted from a more extensive paper provided by Bank of America.*

In today's accounts payable environment, commercial card is increasingly being viewed as a low-cost, efficient, and flexible electronic payment vehicle for large-dollar transactions that were previously made via check, ACH, or wire.  For accounts payable departments the best news about commercial card is that it provides the easiest, fastest and most economical way to migrate from paper to electronic payments.

The Card Electronic Alternative

For a growing number of U.S. corporate accounts payable (AP) departments, commerical card has become an attractive electronic payment alternative to checks.  The 2005 Purchasing Card Benchmark Survey Report, produced by RPMG Research Corporation cited that annual purchasing card spend in North America is expected to increase by 2010 to $185 billion, growing at a rate of 11 percent each year.

If your organization has not considered using commercial card for AP, some principal reasons to consider making more business-to-business (B2B) payments by card include:

•  Low costs
•  Financial incentives for card usage
•  Ease of transition from paper to electronic
•  Streamlined accounting and cost allocation
•  More efficient AP processing
•  Stronger controls over payments
•  Leverage for discounts

Find more information about commercial card for accounts payable in the upcoming September issue of The Source .

*Bank of America is a member of the NIGP Business Council and an NIGP Premier Sponsor. [ return to top ]

Membership: Eileen Miller Wins Ethics Essay

NIGP proudly announces that Eileen Miller, CPPO, C.P.M., Purchasing Management Analyst at Chemeketa Community College in Salem, Oregon is the winner of the 11th Annual NIGP Ethics Essay Contest. 

The following is Eileen's award-winning entry:

"Far to Fall"

"Set your sights high," was my father's implication as he inexplicably retrieved an extension ladder from our barn, complete with four-foot, worn cotton rope that was intended for securely tying the ladder to skyscraping trees! Public procurement officers are ". . .governed by the highest ideals of honor and integrity in all public and personal relationships in order to merit the respect and inspire the confidence of the organization and the public being served" (NIGP Code of Ethics). The ethical fiber of the Code compels us to do the right thing. It might even be construed to mean that we are governed by a strong sense of obligation to mentor those with whom we interact—at all levels of the organization and within our community. While I haven't always been guided by NIGP's Code of Ethics, as a young child I did have the opportunity to glean a few important lessons from my family's cherry orchard--lessons that remain with me today.

It was the pits!  With heartfelt trepidation and gelatinous legs, I spent every summer climbing ladders and picking cherries from the 30-foot behemoths that both my father and his father had planted some 50 years prior. It was a hot job, the deep bruises and indentations that formed in my shins from the ladder's rungs outlasted the summer, and the days were long—6:00 AM to 5:00 PM. I still remember that feeling of intense jubilation when the last cherry of the season had been plucked from its branch and hauled off to the cannery.

While my father passed away seven years ago, and the orchard has since been cut
down, the seven lessons I learned have transcended to my role as a procurement officer:

Lesson 1 - Damage to fruit spurs affects future crops (i.e., train your
staff/customers today, so you may reap the rewards tomorrow)

Lesson 2 - Appreciate low-hanging fruit (i.e., set your sights high, celebrate your accomplishments, but don't overlook your immediate goals)

Lesson 3 - Murphy's Law will inevitably occur, if you place your ladder precariously uphill of another (i.e., strategize, perform risk assessments, and expect the unexpected)

Lesson 4 - Heavy-gauge aluminum pails falling unexpectedly from high places are capable of splitting scalps (i.e., cover your assets, implement checks and balances)

Lesson 5 - Rocks, dirt clods, leaves and rot affect quality and inspection rates (i.e., INTEGRITY MATTERS)

Lesson 6 - With very little practice, a pit can be spat into the mouth of another, while the "catcher" is mid-stream in conversation (i.e., listen more, speak less)

Lesson 7- rain—it happens! From the smell of the dewy- morning leaves, to the harsh, blazing afternoon sun, those cherry picking memories are ingrained in me—even 25
years into my procurement career.

So what I do with these lessons and the subsequent wisdom they've brought me in procurement is entirely up to me, right? Wrong. Sharing the lessons I've learned as a procurement officer will ensure my organization's training dollars continue to be well spent. It's an obligation. We are an aging workforce. "According to a recent study by the Conference Board, by 2010 about 64 million workers—40 percent of the nation's workforce—will be poised for retirement. . . ." (Kiger, Patrick J.; Workforce 84, no. 13, November 21, 2005). If you're one of your agency's best-kept secrets, perhaps it's time you came out of your cubicle. "Time is a great teacher, but unfortunately it kills all its pupils" (Louis Hector Berlioz). Procurement officers are challenged with an impending shortage of replacements in the workforce, mercurial legislation, technological shifts, an ever-changing marketplace, and an obligation to share and train the next generation. The lessons and ethics I gained as a picker have outlasted the orchard. What legacy will you leave your agency when you collect the proverbial gold watch?

The rules, regulations, policies, procedures and other riveting material that
circumscribe a procurement officer's daily work might be considered by some to be
an insomniac's prescription for a better night's sleep. Unfortunately, procurement
knowledge and a heightened olfactory sense for detecting suspicious activities
(i.e., passing the sniff test), isn't a birthright; it comes with training, experience, dedication, and knowledge gained from the school of hard knocks, professional development, and/or coursework from an accredited institution. Locking that knowledge away equates to burying your money and is contrary to achieving best value for your agency.

If you're a seasoned procurement professional, you may be confident in your ability to detect unscrupulous behavior, regulatory circumventions, collusion, fragmenting, or sharp practices, but what about your coworker, your internal customer, or the budget manager who's just been offered a personal discount on a new, four-wheel drive, candy- apple red, sport-utility vehicle with sun roof, navigation system, and leather interior? Can a public official be found guilty of receiving kickbacks or bribes, if they don't know the laws that prohibit such actions? Ignorance is a weak defense. Internalize and teach the "but for" clause--but for your position as a government employee, you would not have been granted such a price or offer. But for your position as a procurement officer, you would not have been offered tickets to the Seahawks' playoff game. Check your local paper for FREE, scandalous instructional material on the latest improprieties, and use that information to educate. There are plenty of stories published on what public officials should NOT be doing. The training you receive, and the training you provide, may be enough for you or your constituents to receive a "get out of jail free card."

In third grade, while learning my multiplication tables, I learned the value of one. One times one doesn't change anything, but one times ten, or twenty-five, or even FIFTY does! You can't train or reach everyone, and the good news is, you don't have to. Be a well spring of knowledge, and the ripple effect will naturally occur whether it is intended or not. What will your legacy be? Will you be remembered as the consummate professional who unselfishly trained and shared experiences with others, whose ethics and integrity were unquestionable, whose procurement prowess was stellar, or will you be remembered as the individual who inadvertently hit the "Reply to All" button on the
listserv?

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Chapters: Local Awards

NIGP congratulates the winners of the local Chapter Buyer and Purchasing Manager of the Year and other local chapter awards.  These awards are selected by the local chapters and submitted to NIGP for special recognition.

NIGP Chapter Professional Buyer of the Year
Award Winners

Arkansas Chapter of NIGP
Debra J. Potter, CPPB
Purchasing Agent ll
Arkansas State Military Department
North Little Rock, AR

Arizona State Capitol Chapter of NIGP
Raymond E. Nader, Jr., CPPB
Contract Analyst
City of Glendale
Glendale, AZ

Central Florida Chapter of NIGP 
Carrie F. Woodell, CFCM, A.P.P.
Purchasing Manager
City of Winter Park
Winter Park, FL

Illinois Association of Public Procurement Officials, Inc. Chapter of NIGP
LuCinda Krebs, CPPB
Buyer II
State of Illinois, Central Management Services
Springfield, IL

Mississippi Association of Governmental Purchasing & Property Agents Chapter of NIGP
Claudette Anderson
Senior Purchasing Agent
Jackson State University
Jackson, MS

Missouri Association of Public Purchasing Chapter of NIGP - Large Entity
Elizabeth A. Sanders, CPPB
Senior Buyer
City of Columbia
Columbia, MO

Missouri Association of Public Purchasing Chapter of NIGP – Small Entity
Heather R. Turner, CPPB
Buyer
Boone County Purchasing Department
Columbia, MO

North Louisiana Chapter of NIGP
Darlene Cooper, CPPB
Buyer
Caddo Parish Commission
Shreveport, LA

Oregon Public Purchasing Association, Inc. Chapter of NIGP
Leslie A. Johnson, CPPB
Senior Buyer
Washington County
Hillsboro, OR

Rocky Mountain Government Purchasing Association Chapter of NIGP
Terri Kindsfather, CPPB, CPM
Contract Administrator
City of Lakewood
Lakewood, CO

Tallahassee Area Chapter of NIGP
Jessie C. Moseley, CPPB, FCPA, FCPM, FCCM
Government Operations Consultant (GOC) II
Florida Department of Corrections
Tallahassee, FL

Virginia Association of Governmental Purchasing, Inc. Chapter of NIGP
Robin C. Wyatt, CPPB, VCO
General Services Coordinator
Colonial Services Board
Williamsburg, VA

Washington State Chapter of NIGP
Amon Billups, Jr.
Lead Senior Buyer
King County
Seattle, WA


Local NIGP Chapter Professional Purchasing Manager
of the Year Award Winners

Arkansas Chapter
Timothy W. Smith, CPPB
Team Leader
Arkansas Department of Finance & Administration, Office of Procurement
Little Rock, AR

Columbia Chapter of NIGP
Christine Moody, CPPO, CPPB
Purchasing Manager
City of Portland
Portland, OR

Illinois Association of Public Procurement Officials, Inc. Chapter of NIGP
William J. Sarley
Purchasing Agent
Village of Glenview
Glenview, IL

Mississippi Association of Governmental Purchasing and Property Agents Chapter of NIGP
Sharion T. Smith, CPPB
Chief of Purchasing
Mississippi Fair Commission
Jackson, MS

Missouri Association of Public Purchasing Chapter of NIGP - Large Entity
James F. Tillman Jr., C.P.M.
Purchasing Agent
City of Springfield
Springfield, MO

Missouri Association of Public Purchasing Chapter of NIGP – Small Entity
Don Dickey, CPPB
Fiscal Officer
Supreme Court of Missouri
Jefferson City, MO

North Louisiana Chapter of NIGP
John G. Adger, CPPO, CPPB
Purchasing Manager
Caddo Parish Commission
Shreveport. LA

Oregon Public Purchasing Association, Inc. Chapter of NIGP
Brian Woodall, CPPB
Contracts Manager
Tri-County Metropolitan Transportation District of Oregon
Portland, OR

Rocky Mountain Government Purchasing Association Chapter of NIGP
Traci A. Burtnett, CPPO, CPPB
Director, Materials & Procurement Services
Thompson School District R2-J
Loveland, CO

Tallahassee Area Chapter of NIGP
Janice B. Pursley, CPPB, FCPA, FCPM
Commodities Administrator
Florida Dept of Environmental Protection
Talahassee, FL

Virginia Association of Governmental Purchasing, Inc. Chapter of NIGP
Timothy W. Moore, CPPB
Associate Director for Procurement
Virginia Department of Education
Richmond, VA

Washington State Chapter of NIGP
Susan R. Ownby, CPPO, CPPB
Purchasing Manager
City of Yakima
Yakima, WA

Local NIGP Chapter Member of the Year Award Winner

Louisiana Chapter of NIGP
Tammy Grant, CPPB
State Purchasing Manager
Louisiana State Purchasing Office
Baton Rouge, LA 

Local Chapter President’s Award Winner
(selected by outgoing president every two years)

Louisiana Chapter of NIGP
Karen Pierce, CPPB
Procurement Manager
Louisiana Office of Public Safety
Baton Rouge, LA

Local NIGP Chapter Purchaser of the Year Award Winner

Carolinas Association of Governmental Purchasing Chapter of NIGP
Frances S. Wright
Purchasing Manager
Edgecombe County
Tarbora, NC

Local NIGP Chapter Member of the Year Award Winner

Louisiana Chapter of NIGP
Tammy Grant, CPPB
State Purchasing Manager
Louisiana State Purchasing Office
Baton Rouge, LA

Local NIGP Chapter President’s Award Winner
(selected by outgoing president every two years)

Louisiana Chapter of NIGP
Karen Pierce, CPPB
Procurement Manager
Louisiana Office of Public Safety
Baton Rouge, LA 

Local NIGP Chapter Purchaser of the Year Award Winner

Carolinas Association of Governmental Purchasing Chapter of NIGP
Frances S. Wright
Purchasing Manager
Edgecombe County
Tarbora, NC

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Upcoming Webinars: Going Green & Cooperative Purchasing Benefits

Going Green?  Learn How Professional Purchasers are Avoiding Misleading Environmental Product Claims
Thursday, August 16
1PM - 2:30PM (EDT)
Registration Deadline:  Wednesday, August 8

                                                    Presenter:

                                           
                                                    Scot Case  
                   Vice President for TerraChoice Environmental Marketing

Register for this session if you are interested in or tasked with developing or implementing a policy to buy more environmentally preferable or green products.

 
Cooperative Purchasing Benefits – The U.S. Communities Program
Thursday, August 30
1PM - 2:30PM (EDT)
Registration Deadline: Wednesday, August 22

                                                    Presenters: 

                                                 

           Darren C. Muci, CPPO                            Art Hanby, CPPO, CPPB,
                                                                                C.P.M., A.P.P.

Register for this session if you want to understand what constitutes cooperative purchasing and the issues regarding its legalities, benefits of cooperative purchasing opportunities, and how the U.S. Communities program operates. 

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New Member Welcome

Agency Members 

Charlotte Area Transit System
Jamela Buxton-Tetteh, CPPB
Charlotte, NC

City of Milton
Carol Wolfe 
Milton, GA

City of Watauga
Deby Woodard 
Watauga, TX

Frederick County Sanitation Authority
Connie Morrison-Henry
Winchester, VA

Housing Opportunities Commission of Montgomery County
William Anderson
Kensington, MD

Kansas City Public Library
Donna Whitner
Kansas City, MO

Maury County Budget Office
Christy Mash
Columbia, TN

Metropolitan Transit Authority
Randall Dunn,CPPO, CPPB
Nashville, TN

Ontario Lottery and Gaming
Vince Albanese, CPPO
Sault St. Marie, ON

Oregon Department of Human Services
Michael Lamon 
Salem, OR

Springfield Housing Authority
Michael Bailey 
Springfield, MA

Tacoma School District
Steven Demel, CPPO
Tacoma, WA

Town of Purcellville
Elizabeth Krens 
Purcellville, VA

University of Alberta - Supply Management
Brian Stewart, CPP
Edmonton, AB

Virginia Department of Taxation
Theda Hudson, CPPB, VCO
Richmond, VA

Weber County
Annette Jacobs 
Ogden, UT 84401-0000

Individual Memberships

Tracy Assis
Toronto, ON
Canada

Robert Billingsley
Arlington, VA

Lashawn Boston-Knowles
Washington, DC

Janice Schlitters
Brighton, MI

Cedrick Seay
Chicago, IL

Randy Sullivan
Charleston, WV

Retired Members

Tesfai Tsehaie, CPPB
Jefferson City,  MO
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UPPCC Certifications: June 2007

Congratulations to the following individuals for successfully completing the Universal Public Purchasing Certification Council (UPPCC) certification requirements!

New CPPOs   

 

California
Rosa Ceniceros, CPPO, C.P.M., CPPB
Procurement Services Manager
County of Ventura

Georgia
Donna Jenkins, CPPO, M.B.A.
Assistant Purchasing Agent
Fulton County - Department of Purchasing

Malcolm Tyson, CPPO, CPPB
Assistant Purchasing Agent
Fulton County - Department of Purchasing

Michigan
Greg Vlietstra, CPPO
Deputy Director of Purchasing and Risk Management
City of Portage

Oregon
Craig Heilman, CPPO, C.P.M., A.P.P., CPPB
Retired USCoast Guard

Texas
Teresa Crum, CPPO, CPPB
Purchasing Manager
University of Texas Health Science Center at San Antonio

Beth Fleming, CPPO, C.P.M., A.P.P.
Director of Purchasing
Denton County

California
Kiauna Norman, CPPB
Procurement Specialist
City of Sacramento

Connecticut
Salvatore Amadeo, CPPB
Purchasing Agent
Town of Wallingford

Donna Imme, CPPB
Purchasing Assistant
City of Middletown

Cynthia Shea, CPPB
Contract Specialist
State of Connecticut

District of Columbia
Gary Griebel, CPPB
Supervisory Contract Administrator
Washington Metropolitan Area Transit Authority

Florida
Maria Carballeira, CPPB
Administrative Manager
Miami Dade County Department of Procurement Management

Bob Hunter, CPPB
Senior Contracts Analyst
Seminole County

Maureen Livings, CPPB
Purchasing Analyst
Florida Department of Health

Lesia Moyer, CPPB
Buyer
Miami Dade College

Regina Peeples, CPPB
Purchasing Coordinator
Lake Sumter Community College

Km! Ra, CPPB
Senior Procurement Contracting Agent
Miami Dade County Department of Procurement Management

Juan Romano, CPPB
Procurement Contracting Officer
Miami Dade County Department of Procurement Management

Michael Wilson, CPPB
Procurement Analyst
Pinellas County

Georgia
Cecilia Dixon, CPPB
Senior Contract Specialist
Metropolitan Atlanta Rapid Transit Authority (MARTA)

R.Gaynell McMillan, CPPB
Senior Buyer
DeKalb County

Delores Miles, CPPB
Procurement Officer
Fulton County - Department of Purchasing

Iowa
Diane Rodenkirk, CPPB
Purchasing Agent
City of Cedar Rapids

Illinois
Cindy Anderson, CPPB
Buyer
State of Illinois Procurement

Michigan
Monica Jackson, CPPB
Purchasing Agent
Wayne County

Jean Mira, CPPB
Purchasing Agent
Wayne County

New York
Vincent Barrett, CPPB
Associate Staff Analyst
New York City Fire Department

Asima Natal, CPPB
Procurement Analyst
New York City Department of environmental Protection

Pavel Rusinov, CPPB
Procurement Analyst
New York City Fire Department

Ohio
Russell Perry, CPPB
Purchasing Standards Analyst
State of Ohio

Oregon
Carolyn Bader, CPPB
Senior Buyer
Multnomah County

Steve Campbell, CPPB
Procurement & Contract Specialist III
Oregon Department of Environmental Quality

Linda Crawford, CPPB
Procurement and Contract Specialist 2
Oregon Secretary of State

Lori Doke, CPPB
Procurement Contract Specialist
Oregon Military Department - AGI

Stephanie Lehman, CPPB
Contracts Administrator
Oregon Department of Revenue

Cynthia McLaren, CPPB, C.P.M., A.P.P.
Purchasing Analyst
Eugene Water & Electric Board

Peggy Mitchell, CPPB
Contracts Compliance Analyst
Marion County

Andre Moran, CPPB, C.P.M., A.P.P.
Purchasing Manager
University of Oregon

Thomas Rayhel, CPPB
Procurement & Contract Specialist III
Oregon Department of Transportation

Shirley Smith, CPPB
Procurement Contract Specialist III
Oregon Military Department - AGI

Timothy Taylor, CPPB
State Procurement Analyst
Oregon Department of Administrative Service

Texas
Greg Garza, CPPB
Administrative Specialist
Tarrant Appraisal District

Mary Hudspeth, CPPB
Buyer II
City of McKinney

Jorge Talavera, CPPB
Purchasing Agent Assistant
Travis County

Utah
Dean Pope, CPPB, C.P.M.
Buyer/Manager
Granite School District

Washington
Greg Chamberlain, CPPB
Inventory Analyst
Washington State Department of Transportation

Victoria Nakamichi, CPPB
Buyer
King County

Glen Nakamichi, CPPB
Supply Officer
Washington State Department of Transportation

Michelle Poste, CPPB
Buyer
King County

Paul Price, CPPB
Purchasing Agent
Washington State Department ofTransportation, Ferries Division

Terrie Roberts, CPPB, C.P.M, A.P.P.
Buyer III
Spokane County

Mary Schumacher, CPPB
Assistant Buyer
King County

Cynthia Shaw, CPPB
Inventory Analyst
Washington State Department of Transportation

David Thompson, CPPB
Supply Officer
Washington State Department of Transportation

Connie Wahl, CPPB, A.P.P., C.P.M.
Buyer
City of Spokane

William Walker, CPPB, C.P.M.
Maintenance Buyer
City of Renton

Ruth Williamson, CPPB
Contract Specialist
King County

Lance Yount, CPPB
Contract Specialist 2
Washington State Department of Labor and Industries

All certified and recertified CPPOs and CPPBs may be found at uppcc.org. 

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