Gov. Tom Wolf Thursday announced his administration has identified $109 million in projected cost savings and efficiencies within the first two weeks of the creation of the Governor’s Office of Transformation, Innovation, Modernization and Efficiency (GO-TIME).
Gov. Wolf is also confident that given this progress, the office will exceed the $150 million mark mandated by his executive order for FY 2015-16.
“Since the launch of GO-TIME, agencies and state employees have submitted 157 ideas to make government work more efficiently,” said Governor Wolf. “I’m heartened to know that so many people and leaders across departments share our commitment to creating a government that works.”
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 the governor tasked state agencies with finding cost savings for the 2015-16 fiscal year from efficiency and innovative initiatives to help address Pennsylvania’s $2.3 billion deficit.
The $109 million in projected savings will be achieved through the application of more efficient procurement processes, modernizing technology used to manage public works projects, and streamlining and consolidating administrative functions across departments.
Initial GO-TIME savings were found in the following ways:
— Improving Procurement Strategies ($100 million). Commonwealth agencies spend more than $3 billion per year on categories of goods and services. By conducting a thorough examination of existing contracts, applying commercial best practices and reintroducing reverse auctioning to procurement, the Department of General Services (DGS) has begun working with agencies to be more strategic about how resources are spent, particularly in these categories under review: Energy; IT hardware and software; Professional services; Telecommunications; Office equipment purchases; and Consumables
— Modernizing Technology Used to Manage Public Works Projects ($3 million). The Department of General Services administers the construction of all state-funded buildings and non-highway infrastructure, representing more than $1 billion worth of investment in the Commonwealth. However, the systems used by the department to manage these projects are decades old, largely paper-based, and a source of unnecessary frustration and cost for the Commonwealth and for the contractors who perform the work. By deploying one of the new construction contract enablement systems, consistent with up-to-date commercial standards, the Administration expects to realize an additional $3 million in annual savings.
— Streamlining and Consolidating Administrative Functions across Departments ($6 million).
— Multi Agency Transformation opportunities ($5 million). The Commonwealth currently manages 28 disparate mailrooms which results in duplication of effort and equipment such as vehicles, delivery stops and postage equipment. There are considerable opportunities to centralize, consolidate, and streamline all aspects of the mail operation as well as to implement USPS and contracted package delivery best practices, including pre-sort mail.
— Consolidation of HR services ($1 million). Savings will be realized through the consolidation of the Department of Health within the Department of Human Services human resources offices and the consolidation of the State Civil Service Commission’s human resources within the Governor’s Office of Administration.In addition to better coordinating and broadening employee input, GO-TIME initiatives may also include pursuing new opportunities to partner with the private sector and better leveraging collective buying and purchasing power. While these processes are under review, it is anticipated that they will save millions over time.