Cost Savings

The Division of Purchases' Cost Savings Team was created in 2009 to fulfill Public Law, Chapter 213, LD 353, Part UU, and Public Law, Chapter 571, LD 1671, Part A.  The team was responsible for identifying and achieving approximately $600,000 in General Fund cost savings in the FY 10/11 biennium, and is now responsible for General Fund cost savings of $2,000,000 per year in FY12 and in FY13.  Savings are achieved through (1) aggregation of state agency spend and establishing statewide master agreements through competitive bidding or cooperative purchasing, (2) greater use of interstate and cooperative purchasing, and (3) monitoring state contracts to ensure efficient use of state funds.  The team also manages the State Procurement Card (P-Card) program, the IT staff augmentation contract, and other procurements established as part of savings initiatives.

The below tables detail the savings achieved and captured through the various initiatives undertaken by the cost savings team.

Realization of Procurement-Related Cost Savings under Public Law, Chapter 213, Part UU
Initiative	Department	General Fund Savings FY10	General Fund Savings FY11
Printer Toner Direct Delivery	All	$15,384	$40,895
Contract Reduction	DHHS OCFS	$222,464	$234,465
	Total	$237,848	$275,360

 

Realization of Procurement-Related Cost Savings under Public Law, Chapter 571, Part A
Initiative	Department	General Fund Savings FY11
Drug Test Kits	Corrections	$69,242
	Public Safety	$869
	Subtotal	$70,111
Graybar Electrical Supplies	Corrections	$1,570
	Defense and Veterans	$594
	Subtotal	$2,164
American Sign Language Interpretation	Corrections	$212
	DHHS	$6,318
	Labor	$2,372
	DHHS (BDS)	$3,814
	DHHS Riverview	$121
	DHHS Office of Substance Abuse	$2,057
	Public Safety	$69
	Subtotal	$14,963
Contract Reduction	DHHS	$13,994
	Total	$101,232