LACE: Unlocking Millions in Savings for California Public Agencies

By Sean Behan, Chief Operations, San Diego County Purchasing & Contracting
Marigene Lim-Viernes, Program Manager, San Diego County Purchasing & Contracting
Love Edmonson, Staples Area VP, Key Accounts, Government

💡 A Proven Path to Savings for Agencies Facing Budget Headwinds

California’s public agencies are navigating unprecedented fiscal pressures. Organizational and federal funding remain uncertain, market pricing for commodities and services is volatile due to supply chain disruptions and evolving business models, and public transparency and oversight of purchases are at an all-time high. Amid these challenges, the demand for public services continues to rise.

Public procurement professionals are uniquely positioned to meet these demands through strategic collaboration, contract evaluation, and supplier partnerships. One initiative leading the way is the Local Agency Contract Exchange (LACE).

🤝 The Collaborative Solution

During the pandemic, Los Angeles County (LACo) and San Diego County (COSD) faced product shortages and surging prices. In response, they launched a collaborative purchasing model that united the largest regional public agencies. By leveraging existing supplier relationships, the counties amplified their purchasing power, secured reliable sources, and reduced costs.

This successful partnership inspired a broader vision: the Local Agency Contract Exchange (LACE). Led by California’s public procurement professionals, LACE enables agencies to contribute and access best-in-class supplier contracts—accelerating savings statewide.

📊 COSD Staples Case Study: $600,000 in Annual Savings

To validate the LACE concept, COSD benchmarked LACo’s Staples office supplies contract against its own national contract. The initiative unfolded in nine key steps:

1. Savings Opportunity – Staples partnered with LACo to enhance contract value and pricing, expanding accessibility.

2. Benchmarking – COSD provided purchasing data; Staples identified a $600,000 (15%) annual savings opportunity.

3. Savings Verification – COSD independently validated the savings through internal review.

4. Access & Workflow – Staples confirmed its ability to meet COSD’s operational needs with minimal disruption.

5. Transition Team – COSD and Staples developed a rollout plan with defined milestones.

6. Onboarding – Over 1,000 users across 700 shipping locations were onboarded via the LACE technology platform, EzMarket.

7. Training – Users received training on COSD-specific rules, product categories (including green products), ordering, shipping, and support channels.

8. Launch – The Staples contract went live within 30 days of transition approval.

9. Monitoring – A dedicated COSD–Staples team tracked results, achieving $1 million in sales within the first 90 days.

📈 Scaling Success

Inspired by COSD’s results, counties including Orange, San Bernardino, and Tulare have completed onboarding using the Staples contract—positioning themselves for similar savings. All government, education and nonprofit agencies are eligible for the LACE Staples contract and a number are actively pursuing benchmarking to unlock further hard-dollar reductions. Based on current participation, annual savings now exceed $2 million.

🚀 The LACE Challenge

LACE invites California agencies to join the movement:

•            Request a LACo/Staples benchmarking savings analysis.

•            Share your best-in-class contracts for broader public use.

•            Collaborate with peers to maximize procurement outcomes.

🛒 The LACE Advantage

By participating in LACE’s competitively awarded contract portfolio, your organization can achieve significant savings on routinely purchased commodities and services. You’ll benefit from best-in-market pricing based on consolidated purchasing volumes and enjoy customized contract terms with a guarantee of “most favored customer” pricing.

📬 Get Involved. To accept the LACE Challenge or request more information, contact LACE Leadership today.  https://www.laceppex.com/