State Emissions Inspection Contract Launch
On Monday, October 23, 2006, at the Tire Pros Automotive Service Center in Johnston RI, Governor Donald L. Carcieri and the Fiscal Fitness Program team announced significant taxpayer savings through the award of a statewide Emissions and Safety Testing contract.
The emissions contract includes three cost components that contribute to the total cost paid by the motorist: the contractor’s administration fee, the State’s administration cost, and the amount paid to the inspection station performing the testing. The new contract lowers the fee paid to the program contractor from $13 to just $4, cutting costs to the State by almost seventy percent. It raises the amount paid to the service station by $1, increasing it from $18 to $19 for each test. Finally, the State’s portion of the total fee stays “as is” at $16. There are approximately 350,000 inspections that occur annually in Rhode Island, which amounts to anticipated savings of $15 million over the five-year contract period.
The contract award was spearheaded by the Governor’s Fiscal Fitness Program and the State’s Division of Purchases by seeking competitive bids for a new contract. The State’s Purchasing Agent, Brian Stern, also spoke at the event on behalf of the Governor’s Fiscal Fitness Program. Several companies provided bids, and those who provided the top three bids were subsequently asked for their ultimate “best and final” price. As a result, the State awarded SysTech International the contract for meeting service requirements at the best price. It was also noted that the current fee structure establishing emissions testing fees is written in statute. Governor Carcieri proposes amending the legislation so that the net contract savings of $8 per inspection will be passed along to the consumer – reducing the inspection fee from $47 to $39 per vehicle. “It is hard to imagine why the General Assembly mandated a specific dollar value to be paid to a vendor,” the Governor commented. “This new contract demonstrates without a doubt why an open and transparent competitive bidding process has resulted in significant savings for Rhode Island taxpayers.”
Savings achieved through renegotiation of existing contracts and strategic purchasing is a major Fiscal Fitness initiative for the Governor. The Governor created the Fiscal Fitness Program to find inefficiencies and look for opportunities to save state money. Getting a better deal on a major contract like the emissions testing program is one example of how the Governor has put theory into practice, resulting in real savings for Rhode Island’s taxpayers.
Press Release: State Purchasing Officials Applaud Ruling On Emissions Contract