If you have read very many of these updates in the past, you are familiar with the savings to taxpayers due to the modernization of state government processes. However, it is important to note that the commitment of the Legislature and Governor to make state government processes more efficient does not just result in savings in state government. Because of these reforms, the taxpayers are realizing a savings at the local level of government as well.
For example, one of the most important focuses of the efforts to streamline government processes has been the effort to reform the state central purchasing policies. Past legislation has made it possible for state purchasing officials to focus on managing contracts on behalf of the taxpayers and it has given them the ability to renegotiate contracts when taxpayers are no longer getting the best possible service.
Once these contracts are managed, purchasing officials are supposed to analyze the usage of the contract and leverage the buying power of the state to buy in bulk and continue to drive down costs.
Taxpayer savings under this new system is approximately $20M over the life of the managed contracts. It’s important to note that not all of this savings is from state government, however. City and county governments are also eligible to participate in contracts and receive the same pricing structure as state agencies. Sometimes vendors will just provide the product or service to the local government entity at the state contract rate. At other times, local governments will opt in to a state contract.
For instance, Logan County District 2 recently needed to replace three trucks. By using the state’s vehicle contract, District 2 saved approximately $20,000 on the purchase price. To put this in perspective, the $20,000 saved represents approximately one-ninth of the cost of the very important two mile Midwest Road repaving project that is set to commence shortly. Midwest Road is probably the worst road in Logan County and local residents have waited many years for this project.
The City of Guthrie recently opted into the state’s purchase card contract. This contract should allow the city to streamline their purchasing procedures and earn a rebate on each purchase made.
The City of Guthrie has also entered into a managed document service contract with the company that pioneered the state mandatory document service contract model and saved the state thousands of dollars. If the City of Guthrie replicates the state model, I would expect the savings to be considerable.
By taking advantage of or emulating state reforms, local officials are serving their taxpayers well by preventing the needless waste of tax dollars through inefficient processes.