GO-TIME: Department of Corrections Food Procurement Services and Management Software System Contract to Save an Estimated $16.6 Million Over Three Years
February 15, 2017
Harrisburg, PA – Pennsylvania Department of General Services (DGS) Secretary Curt Topper and Department of Corrections (DOC) Secretary John Wetzel today announced another GO-TIME success with the award of a Food Procurement Services and Food Management Software System to Aramark Correctional Industries, LLC that will save the commonwealth $16.6 million over the three year-term of the contract.
The contract is worth an estimated amount of nearly $154 million for the three-year initial term. There are two one-year renewal options and the first prison is expected to go online by the end of February 2017.
“GO-TIME, or the Governor’ Office of Transformation, Innovation, Management and Efficiency, has changed the way the commonwealth looks at our operations, purchases, and ways of doing business,” Secretary Topper said. “The awarding of this contract is the latest in a long line of successful examples that show how when action is taken to leverage resources, streamline processes, and create efficiencies, we all benefit from increased quality and decreased costs.”
The contract implements a unique and innovative model in which the DOC has complete control over creating the food menus, inspecting the food to maintain quality and nutritional standards, preparing the food, and then serving it. Through the use of a software system, Aramark will manage the purchase, logistics. and food inventory for the DOC’s 26 facilities across the commonwealth.
“Ensuring the quality and nutritional value of the food we serve at our facilities is a priority for the Department of Corrections,” Secretary Wetzel noted. “This contract model enables us to leverage our buying power to realize significant savings without having to sacrifice quality in any other areas. We are still able to maintain our staff-delivered food operations within our institutions, including educating inmates on food preparation, determining portions, and adhering to food regulations.”
The commonwealth bid the contract out using the Request for Proposal, or RFP, method which factored in the technical capabilities of the supplier, cost, use of a domestic workforce, and subcontracting with small diverse and small businesses.
“In addition to supporting a Pennsylvania-based business and keeping those dollars in the commonwealth’s economy, we are seeing nearly 12 percent of the total contract value being committed to subcontracting with a small diverse business and a small business,” Secretary Topper said. “We’ve taken several steps to improve on the RFP process to reward prime contractors for committing to spending contract dollars with small diverse and small businesses and we are seeing progress.”
The implementation of the contract will occur through a transition period at each facility. The DOC and Aramark will work together to coordinate the transition period for each facility to ensure a seamless transfer of services.
GO-TIME leverages inter-agency coordination and collaboration to maximize efficiency, modernize state government operations, and provide the highest quality services. The Executive Order signed by Governor Tom Wolf tasks state agencies with finding cost savings from efficiency and innovative initiatives to better leverage state government resources and taxpayer dollars.
Efforts through this initiative have saved more than $156 million in FY 15-16, exceeding the $150 million savings goal set by the Governor. The Governor is now challenging GO-TIME to build upon this success by achieving $500 million in savings by 2020.
To learn more about GO-TIME, visit www.governor.pa.gov/go-time/.
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