Governor McCrory Efficiency Program Will Save Taxpayers $30 Million | Eastern North Carolina Now

    Raleigh, N.C.     One of Governor Pat McCrory's top efficiency initiatives, North Carolina's Procurement Transformation Project, is saving the state an estimated $32 million over the course of three years on four major state contracts.

    "My administration is committed to bringing the best practices of the private sector to government," said Governor McCrory. "With these fundamental state contract reforms, we've turned ideas into action — saving North Carolina's taxpayers tens of millions of dollars already with more to come."

    Secretary of Administration Bill Daughtridge launched the Project in the Department's Purchase & Contracts Division (P&C) soon after his appointment by Governor McCrory. According to the Department of Administration, cost savings include:

• $14.9M in savings for office supplies/paper
• $4.02M in savings for laboratory supplies
• $11.6M in savings for maintenance supplies
• $1.35M in savings for food supplies

    The $10M per year in costs savings is expected to substantially increase as educational institutions and local governments take advantage of the improved pricing created by this initiative. The first contracts awarded under the program, for office supplies and paper, have saved 24 percent more than expected through its first two quarters as additional entities used the contracts.

    Currently, the Project involves the state's cabinet-level agencies and its community college system with buy-in from local entities. The Department of Administration was supported by Accenture, a leading global management consulting, technology and outsourcing company, in overhauling its P&C Division. The cost savings are being achieved by standardizing and consolidating various state agency contracts, streamlining the ordering process, leveraging buying power, strengthening contract oversight and boosting vendor performance requirements.

    The Project reformed P&C's approach, personnel and processes and adopted best contracting practices from the private sector, including thorough, data-driven analyses of customer needs, past purchases and usage. It has improved vendor service to the state, from faster delivery of goods to more rapid response to customer needs and challenges. And through competitive bidding, much of the business has gone to North Carolina companies.

    "We take seriously our responsibility to spend the taxpayers' money wisely and efficiently," said Secretary Daughtridge. "This program not only saves the public millions of dollars a year, it also improves vendor service to our state agencies and their many customers. It's not just cheaper, it's better."

• Contact: Crystal Feldman
•     govpress@nc.gov