Saint Paul – As a result of Governor Tim Pawlenty’s Drive to Excellence state government reform initiative, state and local governments will save more than $250 million on goods and services they are purchasing through July 2011. The accomplishments are highlighted in a report issued by the Drive to Excellence Sub-Cabinet, headed by Department of Administration Commissioner Sheila M. Reger.

“We need to hold state government accountable for every taxpayer dollar spent,” Governor Pawlenty said. “The Drive to Excellence initiative is producing real results in our ongoing efforts to streamline and make government more efficient and effective in the services it delivers.”

In addition to cost savings, the report notes customer service and quality improvements such as faster disbursal of community development block grant funds by the Department of Employment and Economic Development, quicker filling of vacancies by the Minnesota Army National Guard and earlier starts to construction projects managed by the Department of Administration.

Lower costs for goods and services that state government purchases are being realized through a process known as “strategic sourcing,” which includes product standardization, contract negotiations and increasing the emphasis on pricing in evaluating proposals from vendors. These strategies have resulted in significant cost avoidance across government:

• Nearly $155 million by establishing standards for office computers, photocopiers, cell phones and other common goods.
• More than $95 million by negotiating contracts, including $3.9 million on contracts with the vendors for the state’s new financial and procurement information systems.
• Over $1.1 million by increasing the emphasis on pricing in the proposal evaluation process.

Since the adoption two years ago of “Lean Thinking” as state government’s preferred process improvement tool, 15 agencies have completed more than 110 sessions that have yielded significant improvements in the delivery of state government services.

These services range from Veterans Home admissions procedures and state-issued dairy and food licenses to water quality testing and newborn screening.

Additionally, professional licensing for peace officers and emergency medical technicians is now conducted online through a new e-licensing portal that includes license content and search, identity management and electronic payment.

The recent reforms are detailed in the Drive to Excellence 2009 Annual Report to the Governor, available online at www.excellence.state.mn.us

The Drive to Excellence, launched by Governor Pawlenty in April 2005, includes 14 specific projects – eight of which have been completed – for improving quality and customer service and reducing costs in the delivery of government services to citizens.