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For Immediate
Release
4/18/07
CONTACT:
Liz Ferry
215-368-1500
 
Senator Wonderling Resolution to Investigate Department of General
Services Adopted by Senate
HARRISBURG – Today, the
Pennsylvania Senate unanimously adopted Senate Resolution 41 directing the
Legislative Budget and Finance Committee (LBFC) to investigate the Department of
General Services' strategic sourcing initiative. The measure was introduced by
Senator Rob Wonderling (R-24th).
Having long been used by Fortune 500 companies,
strategic sourcing is a series of procurement best practices, including reserve
auctions and the aggregation of purchasing contracts. The Governor asserts the
Commonwealth has saved over $180 million since the inception of the strategic
sourcing program in 2004. However, unlike private business, the "bottom line"
savings the state has seen may be negated by the effect strategic sourcing has
had on Pennsylvania's economy.
Senator Wonderling's resolution requires the LBFC to
analyze procurement spending data to accurately measure actual savings and costs
of strategic sourcing, including government operational costs, economic
development costs, and any decrease in revenue to the Commonwealth from a
possible loss of corporate and personal income tax revenue. It also requires the
committee to investigate whether or not strategic sourcing has accelerated
technology or enhanced outsourcing efforts.
The LBFC will also investigate the department's
development and implementation of strategic sourcing, especially with regard to
the impact on Pennsylvania small businesses to determine the mix of contracts
awarded since strategic sourcing began. Additionally, pre-strategic sourcing
and post-strategic sourcing procurement data regarding small business and
women-owned and minority-owned businesses will be compared.
Contractors and vendor awards will be reviewed for
compliance with current procurement policies and statutes. Local governments
and school districts will be surveyed and the implementation of COSTARS
contracts assessed. The study will also include an evaluation of other
contracting methodologies, including vehicles such as Federal GSA and State
consortium contracts.
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