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Procure America Delivers Millions in Cost Reduction to Local Government During COVID-19

By June 30, 2021No Comments

Public Private Partnerships That Work!

During the onset of the COVID-19 pandemic, Procure America partner cities took action to preserve tax dollars and resources for their communities. Through the power of Procure America’s Business Intelligence Services now available through a government Regional Cooperative Agreement (RCA), dozens of cities, counties, school districts and other public agencies were able to achieve millions of dollars in net cost reduction; without any capital investment nor use of agency staff time.

In the following three examples, forward-thinking cities were able to deploy Procure America’s cost management strategies to help with the budget challenges they faced. Cost reduction and optimization projects led by Procure America, supported cities and agencies across California, provided financial relief and stability during one of the most turbulent fiscal times in recent history.

Procure America supports government agencies with Business Intelligence Services in six industry expense categories.  Each assignment delivers a proprietary Enterprise Strategic Plan designed to drive greater performance at lower costs to the government agency. Procure America’s experts leverage decades of personal industry experience, cutting-edge technology, extensive data and analytics to generate an average net savings of 38% for Procure America clients; all the while, improving operational efficiency, raising supplier levels and expense transparency. Further these services come to local government on a shared-in-savings platform through the RCA delivering a 100% self-funding program.

The Bay Area City of Hayward engaged Procure America in 2020-21 for a Utility Tariff Rate Optimization Study that resulted in a savings of over $450,000. “Not only did [Procure America] find significant savings that went far above our expectations, but the review and implementation required almost no City staff time nor resources,” said Hayward Finance Director Dustin Clausen. “This is a great example of a public/private partnership!”

In Los Angeles County, the City of Montebello found $700,000 in savings through Procure America’s Telecommunications Cost and Utility Tariff Rate Optimization studies. “The audit teams were thorough and required very little of my staff’s time to complete the projects,” said Montebello Finance Director Michael Solorza. “The firm’s in-depth analysis uncovered billing discrepancies that had been undetected for many years. They were able to identify savings in each of the categories and assist us in improving operations and increasing efficiencies. Throughout the process, Procure America was very easy to work with and clearly communicated and documented its results. I recommend them highly.”

The City of Irvine also took advantage of Procure America’s Utility Rate Optimization Studies (TROS) this past year. The City’s savings will top $3 million dollars delivered through the TROS review and continue to see cost reduction for many years to come. The savings and ease of use have led the City to recently commission a telecommunications review as well. With so many telecom usage profiles permanently altered due to new “remote working” protocols (Irvine estimates that 80% of its employees will now work off site), this is the perfect time to review this expense to identify and deploy efficiency measures.

“The men and women we have the privilege of working with in local government are the true heroes. We deliver strategies, information, and the “boots”, but without the staff empowering and supporting our team, we can’t deliver these kind of results!” said Procure America CEO Fred Armendariz. “We are proud and honored to support local government and the citizens they serve”.

About Procure America
Procure America is the nation’s leading business intelligence company supporting local government. Their services support and deliver operational efficiency, fiscal responsibility, expense transparency and material net cost reduction. Procure America has industry specific practice groups in six specific expense categories: Utilities, Waste & Recycling, Telecommunications, Document Management, Technology Optimization, and Treasury. Each review team is staffed with highly skilled experts that come directly from the industry in which they practice.