91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
1. What is “Opportunity” a Look at Definitions and Concepts
2. Organizational Practices that May Inhibit Taking Advantage of Opportunities
3. Why Purchasing Departments are Well Suited to Take Advantage of
Opportunities
4. Opportunities in Contracting
5. Making the Best of a Bad Situation
6. Do it Yourself and Save
7. Build it and They Will Come
8. Opportunities in Philanthropy
9. “You can lead a horse to water but you can’t make it drink”
10. Disclaimer
And of course there will be sagely advise from the ages liberally applied
throughout the presentation.
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California

A favorable or advantageous combination of
circumstances

(American Heritage Dictionary)

A favorable juncture of circumstances

(Merriam Webster Dictionary)

Quick witted; resourcefulness; occasion

(From the Chinese Mandarin word for opportunity “jīhuì” )
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Luck is what happens when preparation meets
opportunity.
Lucius Annaeus Seneca
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
It is wise to turn circumstances to
good account.
Aesop
From the Bat and the Weasel
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Knock! Knock!
Who’s There!
Opportunity!
Can’t be!
What??!!
Opportunity only knocks once!
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Opportunity is missed by most people because it
is dressed in overalls and looks like work.
Thomas Edison
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Specialization – Staff highly focused in one area
Insulation – Units physically or organizationally remote from
business activity
Culture – Personal conduct shaped by corporate morals
Job Classifications – Limit what personnel can do
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Chinese proverb
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Interacts with almost all areas of business activity.
The 10,000 ft. view
Has perceived or real authority to act.
Ability to close the “deal”
Has the ability to perform objective analysis to assess the value
proposition of the opportunity.
Looks the gift horse in the mouth
Has specialized knowledge to complete a “deal”.
Insures that taking advantage of the opportunity is appropriate
and legal and can create the appropriate contract
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
“Why Coitenly! Nuk Nuk Nuk!”
Curly Howard
If Opportunity is in deed related to circumstances, then it stands to
reason that circumstances can be altered in such a manner as to
precipitate favorable opportunities.
“If opportunity doesn't knock, build a door.”
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Milton Berle
Always carry a flagon of whiskey in case of snake bite …
also carry a small snake.
WC Fields
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Immediately identify a major stakeholder and enlist their
support. This is the person(s) who will have the most to gain
Translate the opportunity into terms approvers can
understand.
Not everyone may understand or care about the issue(s)
Make sure the “value” of the proposition is clearly
identified.
“Value” may not always equate to dollars, but a “$” helps
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
A wise man will make more opportunities than he finds.
Francis Bacon
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
From The Royal Society for the Prevention of Accidents
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
The Supply Contract bid Dilemma
Lab Casework Change Order Fiasco
The Tired Sales Person
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
Annual bids based on previous year’s buy
Administration time was excessive
Products outside of bid offer’s range were not discounted
Results:
Multiyear contracts
Pricing based on list less discount structure
All products discounted at some level
Invoiced monthly
Savings – Approximately $500, 000 Annually
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
Change orders for casework in construction projects were taking
months to process
Approvals had to be obtained for the architect, project manger, general
contractor, etc.
The University Architect requested help in making the process simpler
Results:
Multiyear contracts direct with the casework manufacturer
Pricing based on discount structure so all changes could be budgeted
Project cost dropped dramatically, changes orders processed in weeks
Savings – Approached $1,000, 000 Annually
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Slide image provided by Fisher-Hamilton
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
ISU requires demonstration of major research equipment
Demo inventories were tight required extra work for sales rep to bid
Equipment hauled around in cars took time to set up
Equipment did not always work correctly for demonstrations after being moved
Results:
Multi year contracts required demonstration equipment remain on site
All products offered on discount structures
ISU Modified the lab space and now maintains the equipment
Free casework provided through another contract
Demo equipment can be used for teaching as well as research
Savings – Approximately $700,000 lease cost, $100,000 Annually in product savings
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Primary Contract Holder Lab - View 1
Primary Contract Holder Lab - View 2
Secondary Contract Holder Lab - View 1
Secondary Contract Holder Lab - View 2
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
A half million dollar electron microscope is left open with circuit boards
exposed
Repairman stated that the company no longer supports the unit (purchased
only a year earlier) then left in frustration
Major research grant is depended on this instrument
Results:
Dispute resolution negotiated over dinner with Japanese Vice President
Next day company offered a model upgrade as compensation
Warranty was also extended for a year
Happy research team recommended agent for professional service award
Savings – Approximately $150, 000 over original unit
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Electron microscope provided to ISU as settlement offer
Nuclear Reactor Decommissioning
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
ISU was preparing to decommission its NRC teaching reactor in 1999.
Typical scenario would be to hire consultants to define project, prepare and evaluate RFP.
Consultants estimated $1 million in fees and $1 million in decommissioning cost.
The University did not have $2 million on hand, the money would come from other
programs.
Results:
I convinced the University to utilize our Engineering staff in lieu of hiring consultants.
Awarded contractor stated it was one of the best RFPs they had seen, they bid $875,000.
Project was finished on time and on budget, an industry first according to our contractor.
Savings – Approximately $1,125,000 over original estimates
This scenario was repeated successfully on two other nuclear clean up projects
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
ISU’s reactor casing was so well constructed that an automated jackhammer
could not break it up. Hydraulic fracturing was utilized to break apart the
casing. This technique was first documented by Roman historian Livy as being
used by Hannibal’s engineers in 218 BC when crossing the Alps.
Before with fracture holes drilled
After fracturing technique was applied
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
A Request for Assistance
A Better Way to Hatch Butterflies
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
1995 - The Iowa Department of Economic Development and the Iowa
Business Council created the Iowa Biotechnology Association.
The problem then became how to fund it.
Iowa State was asked to develop a sustainable funding model for the new
association.
Results:
Successful supply contracts were managed through the IBA as a
consortia procurement effort.
A one percent management fee was charged on the consortium contracts.
Funding, primarily from three major contracts, has kept the association
viable with approximately 60 organization participating.
Savings – ISU receives several hundred thousand dollars in incremental
savings using IBA consortium contracts.
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
ISU was building a new garden center which would incorporate a butterfly garden as its main
attraction.
Typical installations used display cases to hatch butterfly pupae but hatching success is limited for
tropical species, could be as low as 50%.
How to increase hatch rates and still allow the public to witness the hatching process.
Results:
After initial consultation the project architect, facilities manager and a local growth chamber company
engineer were called by Purchasing to meet at the installation site.
Designs based on the purchasing agent’s experience with growth chambers were laid out an a legal
pad and then tweaked by the team.
The growth chamber company offered to build three prototype units incorporating heating and
cooling, humidity control and glass front door and rear panel. The cost would the same as for a
standard growth chamber. Hatch rates increased to as high as 95%.
Savings – Thousands of pupae were saved annually at a cost of $2-$4 each. On the PR side - the
growth chamber company, an Iowa firm, had developed a new product they could market.
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Paraphrase from Matthew 7:7
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
The most efficient purchasing agent will acquire goods at zero cost.
Some mission critical gifts may require a purchasing component.
Purchasing may be aware of users interested in potential donations
others may not be aware of.
Fund raising efforts at times may conflict with procurement initiatives,
so good communications with fund raising organizations is essential.
At ISU donations initiated through Purchasing allow credit to be taken by the
fund raising entity as well, creating a win-win scenario.
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
English Proverb
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Publilius Syrus
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
The Rejected Accelerator
The Grant Equipment Conflict
New Aircraft Electronics
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
A university had rejected a new linear accelerator for failing to perform.
The unit was identical to a unit owned by Iowa State.
ISU had not rejected their accelerator and could use components from this unit.
Purchasing was asked to acquire the rejected accelerator at minimum cost.
The manufacturer knew ISU and was not willing to sell cheap.
Results:
I negotiated the unit as a gift from the accelerator manufacturer’s parent
company.
The requirement was ISU had to remove the unit within two weeks.
Removal and transportation cost around $20,000.
The gifted unit provided ISU with spare parts for 5 years.
Savings – The donation was independently appraised at 1.4 million dollars
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
ISU Research Accelerator
ISU Research Accelerator Power Supply and Control Room
Issues:
The University received a grant in which the equipment must be used for
both undergraduate teaching and advanced research.
Our experience had shown students would not maintain the equipment to a
level it could be used for the advanced research projects.
Both purposes had to be served or the grant money returned.
Results:
Our dilemma was stated in a proposal request for vendors to solve.
The successful bidder offered two suites of equipment one discounted system
purchased on grant funds the other donated to the university.
The donated system would be used or a one day training course each year for
clients of the donor if requested.
Savings – The donation and discounts amounted to over $250,000
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Materials Testing Equipment Donated for Undergraduate Teaching
Issues:
The University was in the process of bidding equipment upgrades and paint for
its executive aircraft.
A local electronics manufacturer saw the RFP and asked if ISU would be willing
to test a new product.
The new electronics would provided safety equivalent to a commercial airliner.
The University’s pilots were very interested in testing a new system.
Results:
Because ISU was still going to purchase some items the bid was reissued based
on the new electronics requirements.
The electronics manufacture bid dealer cost and offered a new collision
avoidance system and upgraded radar, winning the bid easily.
ISU had successfully tested the first collision avoidance system designed for
small aircraft.
Savings – Discounts and donations approached $300,000
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
ISU’s upgraded and newly painted executive aircraft
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Take time to listen to the needs of vendors and staff even if the
comments are not related to what you are working on.
They will give you the circumstances you need
Promote your client by describing research activities in your bid
documents. Vendors look for particular research to support
Never say no on the first pass. Think about it first, you may be the key
ingredient to make something workout
Don’t be afraid to ask, nicely, all they can say is no. My success rate is
about one in twenty five, but the one “hit” usually has real value
No donation is too small to be worth the effort. If the donor feels you
appreciate the gift it may lead to bigger opportunities
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Without promotion something terrible happens...
Nothing!
P T Barnum
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Old English Saying
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
The Unwanted Casework
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Issues:
The University spends significant money remodeling labs, often as soon as five years after a
building is built.
The designers would like way to reduce long term costs but prefer oak casework which is not
easily removed.
Modular casework was available but only in steel construction.
Results:
On a bet, I challenged our casework contractor to make me a modular steel cabinet with wood
doors and drawers.
About six months later the salesman delivered the cabinet to my office.
The new design would cost 25% more that traditional wood but would allow for easier
remodeling.
The cabinet design was rejected for cost and the fact it still has a steel structure.
Moral: Though not accepted by ISU the design became one of the company’s top selling
products. Any positive effort helps someone.
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Wood on Steel Casework Originally Designed at ISU’s Request
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Everything has beauty, but not everyone sees it.
Confucius
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
When one door closes, another opens; but we
often look so long and so regretfully upon the
closed door that we do not see the one which
has opened for us.
Alexander Graham Bell
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
This presentation is not intended to be a primer on how to seize opportunity but
merely relays information about opportunity for your edification.
Attempting to create or seize opportunity under the wrong circumstances can be
hazardous to your health or professional career.
If you elect to try some of the tactics conveyed in this presentation your results
may vary.
Failing to take advantage of known opportunities may result in the loss of
protection described in slide 9.
The author does not condone the use of whiskey to create opportunity.
All images use in this presentation have been taken from sites like the Library of Congress or Wikipedia and are known to
be in the public domain. Additional images have been taken by the author and are free to replicate. Gifs are from free use
sites. If for any reason any image is not in the public domain the author declares fair use under U.S. Copyright law for
illustrative purposes related to non-commercial use.
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
The pessimist sees difficulty in every opportunity.
The optimist sees the opportunity in every difficulty.
Winston Churchill
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California
Thank you for allowing me the opportunity
to share this presentation with you today!
91st Annual Meeting & Exposition
April 1 – 4, 2012
Anaheim, California