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Senate to Hold Hearings on
So-Called "Strategic Sourcing"
The Pennsylvania Senate last night passed a bill
which would open the Rendell Administration's so-called "strategic sourcing"
initiative to inspection, and the administration has responded by threatening to
veto the legislation.
"Unfortunately, it's not surprising that the
governor would respond like this," said Senate Majority Leader David J.
Brightbill (R-Lebanon). "But his strong reaction indicates that they believe
there's something to hide. Certainly, it is impossible to understand why he so
vehemently objects to implementing a rational process."
Senator Robert J. Thompson (R-Chester), chairman of
the Senate Appropriations Committee, announced today that the Senate will hold
at least one hearing -- and possibly more -- on the issue of "strategic sourcing."
"Don't forget that the Rendell Administration is
paying millions to an offshore company -- Accenture, based in Bermuda -- to
implement their scheme," Brightbill added.
"The Rendell Administration also has a history of
avoiding public disclosure," said Brightbill. "They paid millions to a
Philadelphia company, Public Financial Management, with much work being done
before a contract was even signed -- and are now being audited by Auditor General
Robert Casey Jr. for doing so. In fact, Auditor General Casey has criticized the
administration for not 'fully or adequately address[ing] the concerns' raised
about their relationship with PFM.
"This much is clear: the Rendell Administration does
not like sunshine. If anyone believes differently, just look at lobbying
disclosure, where the governor's leadership has been non-existent."
For months, the National Federation of Independent
Businesses and small businesspeople all over Pennsylvania have been contacting
legislators asking for help in dealing with the Administration's push for
"strategic sourcing."
The Department of General Services (DGS) has ignored
repeated requests from businesses and members of the General Assembly that the
implementation of "strategic sourcing" be slowed in order to provide
Pennsylvania businesses with the opportunity to better understand it.
"The governor claimed that 'taxpayers should be
outraged' by last night's vote. He called it 'preposterous' and 'unfathomable',"
Brightbill said. "The truth is that taxpayers should be outraged by the Rendell
plan, which many believe will eliminate competition from small businesses and is
likely to drive up prices in the long run, even if there are some short-term
savings.
"This administration likes to proclaim that it saves
pennies -- unfortunately, they then secretly spend dollars."
Brightbill pointed out that the governor's reaction
is truly "preposterous" and "unfathomable" because House Bill 1996, as amended
by the Senate would not prevent the Rendell Administration from moving forward
with its "strategic sourcing" initiative.
"All this bill would do," Brightbill said, "is give
companies a reasonable amount of time to respond to the Rendell 'strategic
sourcing' proposals."
HB 1996 would affect situations when the state plans
to bundle contracts which were previously not bundled. It would, quite simply,
require DGS to:
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Publish notification of and a draft Request for
Proposal (RFP) of any new proposed contract bundling.
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Accept comments on the proposal for at least 60
days.
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Publish a summary of the comments, taking up to 30
days to do so.
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After the summary has been available for 30 days,
publish a finalized RFP.
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Provide a 90-day period for companies to respond
to the finalized RFP, giving them a legitimate opportunity to develop a
realistic proposal and to form consortiums with other businesses when
necessary.
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