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Cruz lauds cost savings efforts by Administration

Tuesday, April 3rd, 2012 at 9:30 am

Cruz lauds cost savings efforts by Administration

Cooperative Purchase Agreements with other jurisdictions may yield considerable savings to DPHSS, Guam Fire Department, and others

(April 1, 2012 – Hagåtña)  The Department of Public Health and Social Services WIC program has found a way to save as much as 32-96% in breast pump procurement through a purchasing agreement with the Western States Contracting Alliance. Through a similar arrangement, the Guam Fire Department could realize considerable savings for fire truck purchases. In a letter to Governor Calvo sent Friday, Vice Speaker Benjamin J.F Cruz commended both DPHSS and GFD for their innovation and has lent his support by pursuing legislation that would allow such types of procurement.

DPHSS asked Cruz to amend the procurement law to allow departments and agencies to enter into joinder and mutual use contracts, among departments both on Guam and in other states for procurement purposes. Joinder or mutual use contracts are a form of cooperative purchasing. In simple terms, cooperative purchasing involves sharing procurement contracts between governments. It is defined in greater detail in the American Bar Association’s Model Procurement Code for State and Local Governments. The measure, Bill No. 430-31, would allow the any purchasing agency to join or use the contracts of other states or other government units within or outside of Guam. This measure was recommended by the Attorney General so that the government could take advantage of such contracts.

In testimony presented at a public hearing Thursday afternoon, DPHSS officials  showed that a manual breast pump which could be procured for $356.80 locally could be procured through cooperative purchasing for as little as $7.95 including shipping. The savings could be used accommodate more mothers in the program.   Fire Chief Joey San Nicolas, also present at the hearing, said that GFD could work with other fire departments around the country to purchase fire trucks with the right specifications for the local department’s needs.

“Governor, I must commend both DPHSS and GFD for the leadership they have shown in our efforts to meet the financial challenges of the government,” Cruz wrote.  “They set an example for all in public service. I am proud to help facilitate this endeavor by authoring Bill No. 430-31.”

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For more information please contact Carlos B. Pangelinan at 477-2520 or carlos.pangelinan@senatorbjcruz.com.

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