Wisconsin State Purchasing Contracts to Save $80 Million

In an announcement yesterday Governor Jim Doyle said taxpayers will save more than $16 million a year -- a total of nearly $80 million over the lifetime of new state procurement contracts on seven categories of goods and services.

Awarded through a competitive bidding process, the new contracts will provide the state with lower costs on a variety of goods and services including: janitorial supplies, software, computer equipment, IT service suppliers, printers, copiers and faxes, and office supplies. All of the contracts already have, or will take effect in about a month.

Under the new contracts, Wisconsin will save:

• 20 percent on janitorial supplies
  
  
• 10 percent on software
  
  
• 25 percent on computer equipment
  
  
• 17 percent on IT services suppliers
  
  
• 27 percent on printers
  
  
• 14 percent on copiers and faxes
  
  
• 33 percent on office supplies

The new contracts are part of Governor Doyle's Accountability, Consolidation, and Efficiency (ACE) Initiative to ensure taxpayer dollars are used responsibly. Beyond procurement, the ACE Initiative is also generating savings by standardizing human resources staffing levels, improving state facility management, and strengthening the state's information technology infrastructure. All together, these changes will save Wisconsin taxpayers up to $200 million over the next four years, according to the Governor's Office.

"We've made significant progress in cleaning up the excesses of the 1990s, but there is much more work to be done if we are going to provide Wisconsin's taxpayers with the relief they deserve," Governor Doyle said. "We must replace outdated methods and improve how government operates so it can better serve citizens and do so at a lower cost."

To accomplish this, ACE is combining best business practices with the same kind of common sense families use to control their household costs without sacrificing quality, namely: buy in bulk when possible, don't buy unnecessary bells and whistles, and always search for the best deal.

In the area of procurement, the ACE Initiative places the state in a better bargaining position by improving data collection and providing a more accurate snapshot of the state's actual requirements for goods and services. This ensures that the state is buying the right product at the right price.

Small and Minority Businesses and ACE

Governor Doyle also announced that Wisconsin Minority-Owned Business Enterprises (MBEs), as well as other small and traditionally under-represented businesses, have thrived in the most recent round of state contracts awarded as part of Governor Doyle's ACE initiative. Right now, the state only spends 2.1 percent on MBE contracts, but with nine percent of the vendors under the new contracts being MBEs, the state has an opportunity to significantly increase that spending.

"We must ensure that small and minority owned businesses have an equal opportunity to work with the state," Governor Doyle said. "I'm pleased that so many hardworking and dedicated entrepreneurs took advantage of this opportunity and worked with us to cut costs and increase value for citizens."

Contracts Open to Local Governments, Tribes, Schools, and Universities

Wisconsin's local governments, Tribes, schools, and universities will also have the opportunity to share in the benefits of the state's leveraged purchasing power. All ACE contracts will be available to these units of government and educational institutions so they can control their own costs without cutting the quality of public programs.