 TRENTON
-- Treasurer John E. McCormac announced today that the Department of
Treasury is moving ahead with Acting Governor Codey’s efforts to
save State and local governments money by buying smarter through a new “strategic
sourcing” initiative.
In December, Governor Codey announced that the Treasury Department
would seek a consulting firm to develop a plan for strategically coordinating
the purchase of equipment, goods and services for use by State agencies
and local entities, noting that state government alone procures more
than $1.5 billion in goods and services annually. Under strategic sourcing,
joint purchasing strengthens government buying power, which ultimately
could yield economies on purchase contracts for items ranging from
computers and police cruisers to paper clips and business cards.
“New Jersey state and local governments should be getting the
best deal possible from vendors, especially when they both contract
for the same things,” said Treasurer McCormac. “We need
to fully leverage this combined buying power to generate maximum savings
to the taxpayer.”
Bearing
Point of Radnor, Pa. has been retained through a competitive contract
to perform a one-year study of New Jersey’s contract
system. The consultant will analyze State spending, evaluate processes
and procedures and recommend a course of action that will deliver measurable
savings to all government partners.
“This is a common sense, collaborative, smart approach to purchasing
that recognizes how strength in numbers and volume can influence bargaining
power,” McCormac said.
Bearing Point has developed successful strategic sourcing programs
for various public and private sector clients.
The New Jersey State government purchases more than $1.5 billion worth
of goods and services each year. This amount does not include contract
purchases made by 1,800 local entities. The consultant will deliver
recommendations designed to reduce overall state expenditures, as well
as procurement costs for local entities, such as county and municipal
governments, school boards and fire districts.
Approximately 10 other states have implemented strategic sourcing
programs in recent years.
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