AFSCME Privatization Update

Source: By RYAN J. FOLEY, Associated Press (WI), 04.29.08, 5:39 PM ET

The headline-grabbing claim from Gov. Jim Doyle in March 2005 couldn't have been clearer. At a news conference, Doyle said his administration would save taxpayers up to $200 million over four years through better management of the state bureaucracy under the so-called ACE Initiative.

The state would negotiate new contracts to buy goods and services for less money. It would sell off surplus property. And it would consolidate a number of other functions across state government to find savings.

...... Jill Malak, a spokeswoman for AFT-Wisconsin, a state employees union, said her union warned the program wouldn't work from the beginning because it relied too heavily on private contractors.

Posted by Info Center at 3:48 PM in Purchasing | Permalink
Tags: Wisconsin

Source: Penny Gurstein and Stuart Murray, with Anisha Datta and Marika Albert, Canadian Centre for Policy Initiatives, October 2007

This report examines two cases of alternative service delivery (ASD) to assess the impact on customer service and the quality of working life for the outsourced workers in BC. Our findings suggest that, contrary to the government's claim that "this is alternative service delivery, not privatization," ASD is a form of privatization. ASD allows partnerships to form between the government and companies that specialize in outsourcing, changing the culture and delivery of public services.

This paper looks at how outsourcing has impacted government services and affected the economic security of the workers involved by focusing on two case studies:

• Outsourcing of "back office" work at BC Hydro to Accenture, including customer services, IT services, human resources, financial systems, purchasing, and buildings services; and

• Outsourcing of administration of the Medical Services Plan and PharmaCare to Maximus.

In both cases, work previously done by public sector employees is now administered by a multinational for-profit corporation.

Posted by Info Center at 4:26 PM in Custodial | Human Resources | Information Technology | Maintenance | Purchasing | Permalink

Source: By ANDREW PETTY, JUNEAU EMPIRE (AK), June 30, 2006

The state's controversial "pilot" program to privatize procurement services - said to cost Alaska an extra $1 million - sunsets today. ....... An independent study showed the contractor, Anchorage-based Alaska Supply Chain Integrators, ran the state's bills up $1 million more during a one-year period than the work previously done by state employees in the same amount of time.

...... "The evidence is clear that the privatization didn't work," said Sen. Kim Elton, D-Juneau.

Posted by Info Center at 1:20 PM in Horror Stories | Purchasing | Permalink

Source: J. Andrew Curliss, News Observer (NC), April 29, 2006

The state mishandled the seemingly easy task of buying paper clips, pencils and other supplies, a judge ruled Friday. After four days of testimony, including a focus on ethics in government, Administrative Law Judge Beecher "Gus" Gray said the state's handling of its office supplies contract appeared unethical and was unfair.

....... A big issue in the hearings was the state's hiring of consulting company Accenture to help prepare and evaluate the bids. The state paid Accenture $300,000 for the work, according to court documents and the company. Accenture has received millions from Office Depot under separate contracts at the corporate level.

Other documents in the case -- one was described by Corporate Express lawyers as the "smoking gun" -- showed that Accenture played a role in deciding a key point: that extra weight would go to bidders with retail outlets.

Posted by Info Center at 11:33 AM in Horror Stories | Purchasing | Permalink