Letter to GSA Administrator Martha Johnson U.S. General Services Administration
Letter
Today, U.S. Senator Charles E. Schumer called on the federal General Services Administration (GSA) to work with school districts in Upstate New York to help them save taxpayer funds on high technology purchases for classrooms throughout the state. This summer, as part of the property tax cap legislation passed by the New York State Legislature, a legal restriction that prevented New York State school districts from purchasing information and telecommunication technology through the GSA's Federal Supply program was lifted, unlocking the door for millions of dollars in savings for local taxpayers. Districts can now pool together and leverage lower prices utilizing the Federal Supply program. While this is a positive step that could reduce the property tax burden for individuals by allowing schools to update their classrooms with computers and networks for the 21st century, many school districts are unaware of the new arrangement and the potential savings. Schumer today called on the GSA to hold a statewide conference call in order to educate school districts on the program, and work with them to identify potential cost savings.
"State of the art networks, lightning fast computers, and high speed internet should be available in every school throughout New York," said Senator Schumer. "To help today's students find tomorrow's jobs, they need to have the world at their fingertips. Fortunately, making sure our kids have access to the latest technology doesn't have to break the bank for local taxpayers, thanks to this federal purchasing program. I'm strongly urging the GSA to work with our local school districts throughout New York to help them identify cost savings, and make the technology our schools demand affordable for all."
According to the state of New York, high tech costs have become a bigger portion of school districts' budgets in recent years, as more classrooms become equipped with state of the art technology. New York districts have been purchasing these tools on their own, without the power of the GSA's purchasing program. This year, Buffalo is expected to spend $11.5 million on information technology alone, and Westchester is going to spend $5.6 million. Local districts have not been able to afford all of their high technology needs at these higher prices, and have relied on assistance from the state to make up the shortfall.
New York has spent tens of millions of dollars helping local governments make up the shortfall and purchase high technology products. Here is how the numbers break down across the state, for the 2011-2012 school year:
· In the Capital Region, the state spends $5,401,991 on information technology
· In Western New York, the state spends $9,089,287 on information technology
· In the Rochester Finger Lakes Region, the state spends$7,962,506 on information technology
· In the Southern Tier, the state spends $3,550,163 on information technology
· In Central New York, the state spends $6,689,056 on information technology
· In the Hudson Valley, the state spends $10,230,883 on information technology
· In the North Country, the state spends $2,402,469 on information technology
The E-Government Act, which passed the U.S. Congress in 2002, authorized states, municipalities, and local school districts to engage in a process called Cooperative Purchasing, which allows for the Administrator of General Services to provide access to certain items offered through the GSA's Federal Supply Schedule 70. By making purchases through Schedule 70, state and local units of government can receive the same cost savings and streamlined purchasing processes as Federal agencies. For local school districts, this means easier and more affordable access to critical education tools like IT wireless equipment, software licenses, professional IT services, and classroom trainings.
In the last decade, school districts in many states have taken advantage of cost savings through cooperative purchasing and Schedule 70. Unfortunately in New York State, however, school districts did not have the legal authority to purchase classroom technology through federal cooperative purchasing agreements and GSA Schedule 70 because of NYS competitive bidding laws. Because of these restrictions, local school districts have never had the opportunity to purchase under Schedule 70. Under a provision in the recently passed tax cap legislation offered by State Senator Andrea Stewart-Cousins, school districts in Upstate New York now have that opportunity. School districts on Long Island have already explored some of the potential savings, finding numerous examples of ways to cut costs by purchasing through the federal program. Those examples range from a $50 savings on each Dell Latitude laptop to over $1500 in savings on a Cisco Catalyst.
Other states that have set up public purchasing programs have benefitted from large savings in the field of information technology. Missouri's Smart Buy program saved the state $283,000 on Hewlett Packard computers, $519,000 on printers, and $2.6 million on toner and office supplies in a single year. Schumer is pushing the federal government to help local districts tap into this program, which could result in even larger savings based on the size and scale of New York's information technology purchases.
According to GSA, the Schedules Program offers key Money-Saving Options for participants. They include:
* "Volume Pricing" -- GSA negotiates competitive contracts with commercial partners that offer discounts equal to or better than those provided to their best commercial customers.
* "Spot Discounts" -- Schedule contractors may lower contract prices, offer spot discounts, pass along long-term price reductions and/or provide additional concessions.
* "Price Reductions" -- Seeking additional price reductions and concessions allows the customer to achieve improved prices and delivery terms.
In his letter to Administrator Johnson, Schumer urged the GSA to host a conference call with school districts across the state and provide information about the purchasing program to ensure that local school districts aren't overpaying for classroom technology and walk them through cooperative purchasing arrangements with the GSA. Schumer wants the GSA to plan a series of forums to educate school administrators on how to get the most from the Schedule 70 program, which could save taxpayers millions of dollars in property taxes.
A copy of Schumer's letter can be found below:
GSA Administrator Martha Johnson
U.S. General Services Administration
One Constitution Square
1275 First Street, NE
Washington, DC 20410
Dear Administrator Johnson,
I write today to urge you to begin a new school taxpayer savings campaign in New York pursuant to the recent passage of State legislation authorizing local school districts to purchase information and telecommunications technology from the federal General Services Administration (GSA) program known as Schedule 70. Specifically, I would like for GSA to immediately begin consulting with all New York State school districts to identify immediate opportunities for taxpayer cost-savings on IT purchases, as well as plan a series of regional forums in New York to educate school administrators on the Schedule 70 program.
As you know, the E-Government Act of 2002 allowed states' and local governments access to federal cooperative purchasing agreements. Through these agreements, states and local units of governments can receive the same cost savings and streamlined purchasing processes as Federal agencies. Since 2002, this voluntary program has allowed schools to purchase critical education tools like IT wireless equipment, software licenses, professional IT services, and classroom trainings. According to a recent market research report cited by GSA, local sales orders off Schedule 70 were $521.8 million in 2008, which is more than double the total reported in 2006. Clearly, this program has been attractive to local schools across the country, and I suspect it will be for New York schools as well.
However, up until a few months ago, New York State school districts did not have the legal authority to purchase information and telecommunication technology hardware and software from federal cooperative purchasing agreements. As information technology continues to evolve and improve at a rapid pace and cost, it is imperative that school administrators and taxpayers have access to the best purchasing agreements and products to keep our students in cutting-edge classrooms. I am pleased to see New York State take this important step and it is my hope that GSA will focus its energies across this state to achieve taxpayer savings and keep our classrooms wired for the future.
Again, I implore you to join me in an effort to save school taxpayer dollars through the new Schedule 70 authority in New York. In a time of limited resources and tightening budgets across the country, school administrators need to have the best options available when making investments in their students. I invite your agency to immediately begin advising the school districts interested or in the greatest need of this program through a state-wide conference call as well as develop a schedule of regional informational forums for school district leadership.
Thank you for your consideration and attention to this matter. Please feel free to call my office with any questions.
Sincerely,
Charles E. Schumer
U.S. Senator
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