Mayor Rahm Emanuel announced today the city will pay a private consulting firm to find cost savings in existing city contracts, a move he hopes could save at least $25 million by 2013. Accenture LLP has saved other large cities and states millions of dollars, Emanuel said at a news conference. The firm will receive up to 10 percent of the money it saves the city. The company will look at $500 million worth of city contracts, searching for ways to change, consolidate or end contracts. Potential savings could include areas where the city is getting similar things for different prices, or contracts where the city can get a better price by buying in greater bulk, the mayor said.
"Some of it will be in better negotiations with who we're buying from, some of it will be in the bulk purchasing," he said.
Mayor Richard Daley tried in recent years to get vendors to agree to give-backs, but was only modestly successful. City Chief Procurement Officer Jamie Rhee said she expects Accenture to do more.
"(Daley's effort) was a voluntary renegotiation," Rhee said. "This is going to come with some data that says 'Listen, we believe we can get this cheaper, and if you're not willing, then we will terminate for convenience -- which is in all of our contracts -- and go back out to bid, or tap into another agency's contract that has a better price.'"
Accenture already has a consulting deal with Cook County. Emanuel and Cook County Board President Toni Preckwinkle have already agreed to find ways to consolidate city and county contracts.
Friday, August 19, 2011
Emanuel hires firm to find cost-savings in city contracts - Chicago Tribune
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