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Reason Foundation

Gov. Rendell, Strategic Sourcing Show Promise

Geoffrey Segal
June 26, 2004, 7:33pm

Pennsylvania Governor Ed Rendell has created an ambitious new program for procuring the goods and services the state needs. "Strategic Sourcing" is similar to how many American families shop today - we go to Costco or WalMart and buy in bulk, utilizing purchasing power to get the best deal. To date, the Governor's office estimates that its saved over $72 million through strategic sourcing. Rendell and his team should be heralded for this effort. However, as Matt Brouillette at the Commonwealth Foundation is quick to point out this effort is not privatization and will not necessarily slow the growth of government. Regardless, the program holds much promise and serves as a model for procurement reform. Rendell does have a history of privatization while he was mayor of Philadelphia.


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