Food - Awarded
Food Contracts Save $7.4 Million
Texas state government spends millions of dollars on food each year, primarily to feed prisoners in Texas Department of Criminal Justice’s 111 prison units. Although TDCJ produces a lot of food in its own farms, other commodities are purchased. Strategic Sourcing was able to achieve economies of scale on the truckloads of staples, perishables and frozen items that are bought from external vendors.
Strategic Sourcing conducted multiple rounds of negotiations and reached agreements that tied food price adjustments to related producer price indexes for food commodities. Since 2009, the three TDCJ contracts for frozen food, perishables and staples have totaled more than $190 million in expenditures. The 3.7 percent net savings achieved through these purchases reduced the cost to Texas taxpayers by $7.4 million.
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Contract pricing (and savings) can be achieved on these contracts when orders are placed through TxSmartBuy.com.
Food Products - Frozen - CPA Term Contract 385-G0
Food Products - Perishables - CPA Term Contract 390-G0
Food Products – Staples - CPA Term Contract 393-G0