FOR IMMEDIATE RELEASE
March 16, 2022
General Services' Cumulative Contribution to Commonwealth's
Bottom Line Totals More Than $613 Million in Cost Savings, Avoidances
Harrisburg, PA – The Department of General Services has contributed nearly $613 million in savings or cost avoidances to the commonwealth's bottom line over the past seven years according to Secretary Curt Topper today.
"For the last seven years, the Department of General Services has been quietly working behind the scenes, making a significant contribution to the commonwealth's bottom line," Topper said. "$613 million cost savings and cost avoidances is due to the hard work, innovation and creativity demonstrated by DGS staff across the department."
General Services' work contributed directly to the commonwealth's fiscal rebound that Governor Tom Wolf outlined during his recent budget address. Over the past seven years, the Wolf Administration has turned a $2-3 billion structural budget deficit into a $2-3 billion budget surplus. The state's Rainy Day Fund totals more than $2.8 billion — the highest it's ever been.
"DGS has been at the center of the Wolf Administration's successful efforts to reduce operating costs and to deliver greater value for our customers and citizens," Topper noted. "We recognize that the expectations and needs of our client agencies will continue to evolve, and we look forward to the operational and financial efficiencies we can offer our customers and ultimately the taxpayers of Pennsylvania."
Topper pointed to four primary areas where DGS has seen significant savings over the past seven years: Procurement, Competitive Utility Purchasing, Print & Mail, and Guaranteed Energy Savings Act (GESA) projects.
- More than $571 million in savings has come through the department's Bureau of Procurement through reverse auctions, renewal negotiations with incumbent contract holders, leveraging volume into lots, and requesting discounts through contract negotiations. Also included in that number is $116.7 million saved in utility costs over the past seven years by the commonwealth adjusting its purchasing approach to longer term, 4-year fixed-price contracts that result in better pricing and budget stability.
- By combining print operations and consolidating mail presort operations to be performed in-house, DGS reduced state agency costs by $19.7 million. Mail collection and delivery are now faster and more efficient as well.
- Through the Guaranteed Energy Savings Act (GESA), $21.6 million in savings have been realized through eight projects that implement energy efficiency measures at state facilities now and pay for them over time with the annual savings from reduced utility consumption, rather than using commonwealth funds for upfront capital investments. Eight more projects are in-process that will add to the savings already experienced.
"The Department of General Services has been steadfast in our commitment to meeting the challenges issued by Governor Wolf to create and identify savings within our lines of business," Topper said. "As the Governor pointed out, this didn't happen overnight. It took dedication, innovation and cooperation among DGS employees and the customer agencies we serve throughout the commonwealth."
The Department of General Services' mission is "to help government operate more efficiently, effectively and safely – delivering exceptional value for all Pennsylvanians." The department is comprised of nearly 800 dedicated public servants who assist our customers through their roles as police officers, engineers, maintenance technicians, professional buyers, auto mechanics, architects, real estate professionals, custodians, accountants, project managers, equipment operators, state contracting diversity specialists and more. Learn more about DGS at www.dgs.pa.gov.
MEDIA CONTACT: Troy Thompson, 717-787-3197
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