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