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Four State Agencies Save Taxpayers More Than $42 Million

Dec 17, 2012

FOR IMMEDIATE RELEASE                                                                                                                                         CONTACT: DMS Communications, (850) 921-5266 



Continued fiscal responsibility leads to tremendous savings and efficient use of public resources


TALLAHASSEE, Dec. 17, 2012 – The Florida Department of Management Services (DMS) announced today that four additional state agencies have taken the right steps in answering Gov. Rick Scott’s call for a smarter, more efficient government.  The Department of Economic Opportunity (DEO), Department of Health (DOH), Department of Corrections (DOC) and Department of State (DOS) are the latest to earn the “Governor’s Savings Award” for renegotiating contracts resulting in a total of more than $42 million in savings and expanded operational capacity.


Gov. Rick Scott said, “We owe Floridians a government that prides itself on responsible stewardship.  These four agencies are leading the way in creating a high level of cost savings, which provides more efficient government services for Florida families.  We will continue our efforts each and every day to find savings and promote the most efficient use of public money.”


The Department of Economic Opportunity negotiated a new contract for mail service with an anticipated savings of $21,585,087 over the next three years, while DOH renegotiated 17 of its largest contracts to produce a savings of $9,256,806. The Department of Corrections and the Department of Management Services worked closely to renegotiate several contracts with private prison providers and will realize a cost savings of $9,797,655 over the next three years. The Department of State contributed a total of $1,575,000 in savings after renegotiating a contract renewal to lower the cost of operating the Florida Electronic Library.


Department of Economic Opportunity

The Florida Department of Economic Opportunity reduced its mail service costs by negotiating to decrease its amount of postage and eliminate excessive mail reminders.  The agency will also move its mail distribution to a central mail hub and incorporate printing functions in the new contract.  In the first year alone, DEO will realize a cost savings of $7,195,029 compared to the previous year.

“We are honored to be recognized for this award, which highlights DEO’s ongoing goal of reducing costs and being good stewards with taxpayer dollars,” said DEO Interim Executive Director Darrick D. McGhee. “Our staff is always seeking new ways to increase efficiency throughout our agency, and we look forward to identifying future opportunities to do the same.”


Department of Health

The Division of Community Health Promotion reduced administrative fees to increase the amount of screening and diagnostic services available for pregnant women as well as more services for Floridians who want to quit using tobacco. The Division of Children’s Medical Services generated $1,122,483 in savings that will be used to improve case management and provide additional medications for children using the agency’s services.  In addition, the HIV/AIDS and Hepatitis programs will receive $6,000,000 to assist in purchasing medication because of the Division of Disease Control and Health Protection’s work in obtaining rebates from multiple pharmaceutical companies. 


"The Department of Health protects, promotes, and improves the health of all people in Florida," said State Surgeon General and Secretary of Health Dr. John Armstrong. "We are constantly reviewing our resources to find ways to be more efficient. As we find savings, we are able to provide more services that make a healthy difference in people's lives."


Department of Management Services/Department of Corrections
The Department of Corrections, in coordination with the DMS Bureau of Private Prison Monitoring, achieved its goal of capturing efficiency by realizing savings without reducing services or decreasing inmate populations. The agencies renegotiated with operators of four correctional facilities (Lake City, Blackwater River, South Bay and Gadsden) to generate major funding reductions of three to five percent per correctional facility. Their efforts will allow the $9,797,655 in cost savings to be used for other budget priorities over the next three fiscal years.


“The Florida Department of Management Services is committed to finding cost savings in all of our program areas so we can further the Governor’s mission to create the most efficient state government possible,” said DMS Secretary Craig Nichols.  “We are very happy to coordinate with the Department of Corrections in this effort that will save taxpayers millions of dollars and support the efficient operation of four correctional facilities.”

Department of State

The Department of State created cost savings by renegotiating a contract to provide online database support for the Florida Electronic Library’s internet resource over the next five years. In addition to the $1,575,000 in savings, the agency negotiated a database valued at $350,000 to be added to the new contract at no additional charge. This new database will improve essential career service resources for students, graduates and veterans who are transitioning to new careers in the Florida workforce.


“The Florida Department of State is committed to being responsible stewards of taxpayer dollars,” said Secretary of State Ken Detzner. “The Florida Electronic Library remains a tremendous service to Floridians for its access to a wide variety of digital information resources, and we are honored that it has been recognized for its significant cost savings and its new workforce recovery database.”


About the “Governor’s Savings Award”

The “Governor’s Savings Award” honors state government employees and partnering private-sector companies that work together in the interest of identifying cost savings and avoidances while increasing the effectiveness of government operations. 


Since its launch in mid-October 2012, 10 agencies and more than 25 private sector businesses have been lauded for their efforts, which have resulted in a total of more than $92 million in savings and value-added services for Florida’s taxpayers.


Because of its role as a lead agency in fostering cross-cutting strategies for greater efficiencies, the Department of Management Services helps to identify candidates who meet the award criteria for the

governor’s consideration.  The awards will be presented to recipients in a quarterly reception at the Governor’s Mansion. 



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