As we've reported just last year Houston's transit authority, METRO, needed to make some tight cuts to help balance the city budget. With a deficit of $430,000 the agency wanted to come up with ways other than job cuts and fare hikes to meet that deficit. Now it seems they may have found an outlet.
Combining their needs with the city of Houston, METRO will now be able to contract for services jointly, making it a more competitive deal for both. Some of the joint services they'll be sharing with the city include:
• Gasoline and diesel fuel
• Fuel delivery
• Office supplies
• Police vehicles
• Non-revenue vehicles
METRO hopes to branch out and do a similar deal with the Houston Independent School District and local community colleges.
FULL TEXT of their press release:
For Immediate Release June 8th 2011
METRO, CITY OF HOUSTON INK COST-SAVINGS AGREEMENT
PARTNERSHIP LEVERAGES AGENCIES’ BUYING POWER, SAVES TAXPAYER DOLLARS
The new METRO and the city of Houston signed off on a first-of-a-kind inter-local purchasing agreement that will reduce costs for the two entities.
This partnering approach allows the city and METRO to buy or contract for services jointly, resulting in lower pricing, standardizing commonly-used items and allowing both to benefit from more favorable terms and conditions.
“In these tough economic times, we have to be more creative and efficient in spending taxpayer dollars,” said METRO Chairman Gilbert Garcia.
Contracting opportunities include, but are not limited to:
“One of METRO’s priorities is strategic partnering. This agreement is not only a win for METRO, it’s a win for the city and most importantly, it’s a win for the taxpayers,” said METRO President & CEO George Greanias.