Savings From Governor Rendell's Strategic Sourcing Program Top $118 Million

IT Staff Augmentation, Food, Vehicles Boost Total Savings Beyond Goal

HARRISBURG, Pa., Oct. 19 -- Governor Edward G. Rendell today announced the award of Commonwealth contracts for three commodities that, together with 10 previously awarded contracts, will net Pennsylvania's taxpayers an annual savings of $118.7 million.

"I promised to save Pennsylvania taxpayers $100 million in savings this year by purchasing goods and services just as leading businesses do," said Governor Rendell. "I'm pleased to say that we've done it. We have exceeded our goal by almost 20 percent, and it is especially gratifying that all three of these contracts were won by Pennsylvania businesses. This proves that Pennsylvania firms can compete with businesses from around the world."

Governor Rendell and Secretary of General Services Donald Cunningham announced the award of contracts for information technology staff augmentation, food and vehicles for the Commonwealth's fleet. The three contracts together will save taxpayers a total of $36 million a year.

W.S. Lee and Sons, of Altoona, won the contract to supply perishable and non-perishable food to state correctional institutions, state hospitals and other state agencies across the Commonwealth, saving Pennsylvania's taxpayers $13.8 million, or 21 percent. The contract features 9.6 percent participation by minority and women-owned business, and W.S. Lee plans to add about 100 Pennsylvania jobs as a result of the contract. The total value of the contract is expected to be $51.4 million, and it will remain in place for three years, with two one-year renewal options.

"I salute Governor Rendell for transforming state purchasing to a model that more closely parallels the private sector," said Robert Lee, President and CEO of W.S. Lee. "We knew we had to sharpen our pencils to be competitive. But as a taxpayer, business owner and now business partner with the Commonwealth, it gives me great pride to know that a Pennsylvania business could compete with the largest businesses in our industry in the world and win."

Computer Aid Inc. of Allentown won the contract for IT staff augmentation, saving Pennsylvania's taxpayers $19.8 million, or 31 percent, compared with rates previously paid to service providers. The contract, which provides for short-term temporary technical staffing needs, features a broad network of more than 50 subcontractors and a 49.5 percent minority and women-owned business participation level. Also, as an added measure to combat Pennsylvania's "Brain Drain," consideration was given to vendors that showed dedication to recruiting graduates of Pennsylvania universities and colleges. The contract will remain in place for two years, with three one-year extensions and the total value is expected to be $45 million.

Northeast Auto Outlet of Philadelphia won a contract to supply the Commonwealth with more than 90 percent of the vehicles for its fleet. Together with a smaller contract awarded separately, fleet savings amount to $2.4 million, or 15 percent.

"We've managed to eliminate the waste of almost $120 million simply by bringing smart buying practices to government," Cunningham said. "Every nickel of the taxpayers money that can be saved through smarter buying and purchasing reform is a nickel that can be used to help real Pennsylvanians and the issues that matter to them."