Harrisburg, PA – Pennsylvania Department of General Services (DGS) Secretary Curt Topper announced today that continued success in achieving lower costs for goods and services purchased by state agencies has saved approximately $143 million over the past two years, including $74 million in fiscal year 2016-17.
Governor Wolf identified improving procurement strategies as a top priority when he created the Governor’s Office of Transformation, Innovation, Management and Efficiency (GO-TIME) in 2015 to improve government operations and services.
“I’m proud to say that we have taken an innovative approach to the GO-TIME challenge laid out by the Governor,” Topper said. “It has given us the opportunity to be creative and look at new ways to save taxpayer dollars and ensure they are being used to their full potential.
“Several strategies, including contract renewal reductions and reverse auctions, have proven their worth to our efforts to reduce costs without sacrificing quality.”
Topper noted the use of reverse auctions has contributed to more than $20 million of the overall savings total.
Reverse auction technology enables the commonwealth to hold live, online auctions where bidders can anonymously see how their prices compare to those of other anonymous bidders competing for commonwealth contracts.
“Our use of reverse auctions is a continuous process of innovation,” Topper said. “Every time we conduct a reverse auction, we look for ways to improve the process and make it easier and more efficient for ourselves and our vendors. We look forward to continued success as we plan to use this technology more frequently in the future.”
The department is also using the contract renewal process as an opportunity to ask vendors to take a voluntary reduction as part of the commonwealth’s efforts to reduce costs and generate savings. Since 2015 when the practice went into effect, a total of nearly $3 million has been saved.
GO-TIME is working to modernize government operations to reduce costs and improve services. GO-TIME works with agencies to identify opportunities to share resources, collaborate and engage employees in transformation. These efforts have saved taxpayers over $377 million since 2015 through projects aimed at reducing costs, increasing productivity and improving services to the public.
To learn more about GO-TIME, visit www.governor.pa.gov/go-time