updated: 7/9/2009 9:54:23 AM

State Program to Save Millions on Road Salt

InsideINdianaBusiness.com Report

The state's expanded OneIndiana initiative is expected to save local governments $8.5 million in road salt this winter. A total of 160 local units of government participated in a joint purchasing agreement with the state on a road salt contract, which became effective July 1. The units are working directly with the state's vendors to determine delivery dates.

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Source: Inside INdiana Business

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Press Release

INDIANAPOLIS (July 9, 2009) – The Indiana Department of Administration (IDOA) and the Indiana Department of Transportation (INDOT) today announced $8.5 million in local government savings resulting from the state's expanded OneIndiana initiative. The expanded initiative invites cities, towns, counties, and schools to participate in the state's contracting process from day one. The first contract available through the expanded initiative: road salt.

Heavy snow and ice over the past two winters led to salt availability issues and high spot pricing. These factors put a strain on local budgets, making it more costly for cities and county governments to keep streets and highways clear of snow and ice.

After working with local officials throughout the spring, IDOA aggregated city and county salt needs and state volumes into a single, statewide bid. The outcome is telling: Indiana cities, town, and counties will save $8.5 million—40 percent—this winter.

"Historically, communities have gone it alone and been forced to pay a higher price for salt,” said Mark W. Everson, commissioner, IDOA. "In these difficult economic times, it is important to leverage the state's buying power. Communities can salt away these substantial savings and then plow them back into essential services for Hoosiers. This is a clear win-win for both the state and locals."

To tackle the availability and pricing issues faced by local governments and schools in past years, IDOA, in coordination with the Indiana Association of Cities and Towns (IACT) and the Association of Indiana Counties (AIC), worked with localities to aggregate their volume commitments, structured the bid around those committed volumes, and went to market early. The size of the combined demand, coupled with the state’s early bid timeline, were key to securing the competitive pricing.

"Last winter many of our members were struggling to afford and obtain the necessary amount of road salt. This partnership has not only alleviated that concern, but exceeds our expectations," said IACT Executive Director Matt Greller.

"This type of joint purchasing with the state is illustrative of the type of partnership state and local government should strive for to improve local communities and stretch public resources. We can work better together as partners to improve services for taxpayers," said David A. Bottorff, executive director, Association of Indiana Counties.

Salt Purchases: Local Highlights

City/Town/County
08/09 Price per Ton
09/10 Price per Ton
Expected Savings

Brownsburg
$80.69
$62.25
$22,128

Elkhart
$97.17
$62.43
$132,012

Gary
$101.67
$54.67
$188,000

Hammond
$101.89
$54.67
$269,154

Lake County
$101.89
$54.67
$519,420

Marion
$126.00
$62.43
$95,355

Michigan City
$176.50
$54.67
$536,052

Muncie
$109.35
$70.65
$123,840

St. Joe County
$151.59
$54.67
$775,360

Valparaiso
$142.00
$54.67
$130,995

A total of 160 local units of government participated in the road salt contract. A complete list of participating entities and their expected savings is attached.

The contract for road salt became effective July 1, well in advance of wintry weather. Local units of government are working directly with the state's vendors to determine delivery dates.

The road salt cooperative purchasing project is part of Governor Daniels' OneIndiana initiative. Launched in 2005, and recently expanded to include local purchases wherever possible, the Operating with New Efficiency (ONE) Indiana initiative is designed to leverage the state's aggregate purchasing power, increasing procurement efficiency and saving Indiana taxpayers millions of dollars.

About IDOA

The Indiana Department of Administration (IDOA) provides support services to state agencies. IDOA centrally manages activities related to state purchasing, the vehicle and aviation fleet, state travel, real estate leases, and property dispositions, among others. Through its operations, IDOA helps to ensure the smooth function of state government, finding efficient, effective solutions to government-wide needs.

Source: Indiana Department of Administration

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