"Every family knows the value of buying in bulk -- that buying a case of pop from the grocery store costs less than buying individual cans," Governor Doyle said. "We are looking line by line at how state government spends money, and will consolidate purchases across state government to get better prices on everything from paper clips to copiers."
Since inheriting the largest deficit in state history, Governor Doyle has focused on streamlining state government, and reversing course on a decade of wasteful spending. The ACE Initiative will build on the cost-saving successes of his Administration's other recently negotiated statewide deals, such as the desktop computer contract.
"This is about setting priorities," Governor Doyle said. "And my priorities are making sure we reduce the burden on property taxpayers, grow our economy, and give every kid a good start. Every dollar we save on the office functions of state government is a dollar we can invest in our priorities."
In the case of the computer desktops, the state was able to bring the average purchase price of a computer down from $1,600 to $600 simply by consolidating purchases onto a single contract.
"In the past, the state's buying power was diluted because most of the state agencies were making purchasing decisions on their own without any coordination," Administration Secretary Marc Marotta said. "This resulted in agencies paying different prices for the same product, often without any of them getting the lowest price possible. With this initiative, that will end."
Under the direction of Secretary Marotta and the Department of Administration, the ACE Initiative will allow the state to spend measurably less for goods and services and institutionalize a streamlined, efficient approach to procurement, state facilities management, human resources, and information technology resources across state government to provide a higher level of service.
The consolidation of procurement across state agencies is expected to save taxpayers $50 million over the next two years. Sales of surplus land over the next two years are expected to generate $36 million, which will be deposited into the state's rainy day fund. Consolidating human resources staff from 17 smaller agencies will save taxpayers $860,000 over the next two years. Once these changes are fully implemented, cost savings are expected to increase, reshaping the way state government does business.
The state is consolidating the number of computer servers in state government, saving taxpayers $3.7 million over the next two years. When the project is fully implemented, the state will be saving almost $9 million a year. Wisconsin is the first state in the nation to do this type of server consolidation, helping earn the state national recognition from Government Technology Magazine.
Local governments will also share in the benefits of the ACE Initiative, because all of the contracts will contain provisions allowing local units of government to purchase goods and services at the same price received by the state.
