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Related Links Delaware State News: ''Delaware Plans to Reduce Purchasing Costs''

The News Journal: ''Bulk Purchasing Can Yield Potential Millions''



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New Dem Dispatch
Commentary & Analysis

DLC | New Dem Daily | May 16, 2003
Idea of the Week: Smart State Buying

In the midst of what the National Governors' Association has called the worst state fiscal crisis since World War II, progressive state governments are looking for ways to do more with less money. In Delaware, New Democrat State Treasurer Jack Markell has spearheaded an initiative for Gov. Ruth Minner that will re-engineer the way the state buys goods.

Already the initiative is saving Delaware taxpayers one of six dollars spent on procurement covered by the new system. And Markell, who is applying many of the lessons he learned as a Comcast executive, estimates that savings will eventually represent 15 percent of all state purchasing. Areas affected include office supplies, personal computers, uniforms, lab supplies, and copiers.

Procurement reforms, Markell says, are "not rocket science," but involve "negotiating more favorable rates for goods of the same quality and better coordinating the purchasing across the state's many agencies and school districts. In fact, in many cases, we are purchasing the same products, but for less money."

Specific procurement reform ideas that Delaware is pursuing include:

  • Bulk buying across agency lines of everyday supplies and equipment that allow suppliers to increase discounts
  • More detailed "requests for proposal" that make contract bids more competitive
  • Expanded reporting requirements for state suppliers, which help the state monitor and track spending and savings
  • "Multiple-round" bids that allow the state to demand better pricing and volume rebates
  • "Reverse" online auctions where vendors bid against each other for state business
  • "Right specifications" that keep state agencies from spending money on unnecessary frills in areas ranging from personal computers to office furniture

Procurement reform is not front-page news, but in an era of state fiscal austerity, it can create real savings and real options. And more important, it can help state and local leaders break out of the tedious trap between liberal defense of government programs and conservative demands for dismantling them. Figuring out what government should do, and then how best to achieve public goals at the lowest cost and the greatest accountability, is the New Democratic approach. Procurement reforms on display in Delaware are also under development by New Democrat Administrations in Virginia and Pennsylvania.

More for less only makes sense.