Pennsylvania Saves Nearly $15 Million Thanks to Renegotiated Road Salt Contract

road salt, snow, winter© hansslegers from Getty Images Pro / Canva

HARRISBURG, PA — The Pennsylvania Department of General Services (DGS) recently announced that taxpayers will be saving almost $15 million. This substantial saving is due to a successfully renegotiated COSTARS-enabled road salt contract. The Bureau of Procurement’s negotiation prowess has not only benefited state agencies but also extended the same pricing and terms to local public procurement units across the state.

COSTARS, the Commonwealth’s cooperative purchasing program, partners with local governments and eligible nonprofit organizations to negotiate better pricing on commodities from participating suppliers. Through this renegotiated road salt contract, local governments across the state have collectively reduced their spending by $8.8 million for the 2023-24 season. This saving was accomplished by waiving potential storage fees and providing relief for outstanding tonnage of unpurchased salt.

Moreover, the Commonwealth itself saved approximately $5.9 million this year by negotiating lower cost increases with several suppliers. This combined effort has resulted in a total saving of nearly $15 million for Pennsylvania taxpayers.

DGS Secretary Reggie McNeil stated, “The COSTARS program exists to help participating members achieve procurement savings…and this renegotiated contract offers partnering organizations better pricing while saving Pennsylvania taxpayers millions of dollars.” He further added that DGS plans to continue identifying areas where its programs can save taxpayer funds.

The COSTARS program allows local governments and eligible nonprofit organizations to leverage the purchasing power of the Commonwealth. This results in more competitive pricing and choice than individual purchasers might be able to obtain on their own. Currently, 9,440 local public procurement units participate in the program, buying anything from tires and power equipment to vehicle and office supplies.

Brian Esposito, DGS Deputy Secretary for Procurement, emphasized that the renegotiated contract will help members leverage the purchasing power of the Commonwealth, thus saving taxpayers millions of dollars.

For organizations interested in participating in the DGS Sodium Chloride (Road Salt) Contract for the upcoming August 2024 – July 2025 season, they should submit a new Salt Contract Participation Agreement electronically through the DGS COSTARS website by March 15, 2024.

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