In keeping with Governor Edward G. Rendell's focus on increasing opportunity for disadvantaged business, 9 percent of the value of the contract will go to small, disadvantaged Pennsylvania businesses.
The two-year contract, which has two, one-year extensions, has an estimated value of $23.5 million each year. The announcement brings the total annual savings generated by Governor Rendell's strategic sourcing purchasing initiative to $82.7 million. The initiative maximizes the commonwealth's buying power by aggregating the purchasing power of all state agencies.
"This contract award continues the reduction of costs for the taxpayers of Pennsylvania in the purchasing of goods and services to supply commonwealth workers," Secretary Cunningham said. "It also continues to increase opportunities for small disadvantaged businesses to participate in state government contracts."
By the end of 2004, the commonwealth expects to generate more than $100 million in annual savings through the strategic purchasing of 20 commodities. Contracts previously announced for software, asphalt, computer maintenance, office supplies, copiers, computers, office furniture, computer servers and cleaning supplies generated annual savings of $4 million, $2.4 million, $4.2 million, $9.65 million, $11 million, $19.1 million, $7 million, $13.4 million, and $3.5 million for state taxpayers, respectively. The strategic sourcing "Taxpayer Savings Thermometer" can be viewed online.
As specified in recently signed House Bill 1996, the Department of General Services will soon begin work on establishing a separate contract for use only by local procurement units for computer hardware. This new contract will make it easier for small, Pennsylvania businesses to contract with local governments, school districts, colleges and universities and non-profits.
