It was a bold move for a government entity. In 2005, the commonwealth of Pennsylvania hired a private company to overhaul the archaic way it buys goods and services. It seemed simple enough, but what was innovative — and daring — was a key condition: 30 percent of the contractor’s compensation would come from the savings achieved. No savings, no payment.
Putting such a risk on the contractor paid off handsomely. Among other things, officials combined the buying clout and pricing data of all 89 executive branch agencies and departments to strike better deals. Without cutting a single program or service, Pennsylvania saved more than $140 million, or 21 percent, from its annual $700 million tab for everything from office and cleaning supplies to information technology services and tires. The savings far exceeded projections.
Pennsylvania is not alone. Similar value-based contracts enabled the New York City Board of Education to shave $86 million from its $720 million procurement budget, and state and local agencies are experiencing similar savings. Continue reading “Before Slashing Budgets, Find the Savings”
By Molly K. Hooper and Erik Wasson – 08/30/12 09:20 AM ET
TAMPA, Fla. — House GOP leaders say Rep. Paul Ryan “hit it out of the state” in his maiden speech as the official vice presidential nominee.
The leadership team sat together in a sky box facing the stage, and House Speaker John Boehner (R-Ohio) told The Hill that “it was all good.”
Ryan is getting raves Thursday morning for a speech that lacerated President Obama while touting Mitt Romney’s candidacy. Romney will accept the GOP presidential nomination tonight.
Lawmakers sitting close to Boehner say the Speaker, who is known for choking up, became teary as he watched the wonky Ryan receive thunderous applause from delegates gathered in the Tampa Bay Times Forum. Continue reading “Ryan wows crowd, GOP leaders”
Ryan’s ‘Tough Issues’: More Tax Breaks for the Rich, Cuts to Medicare and Social Security for Everyone Else