State of NY OGS Cuts Equipment Maintenance Costs By 25 Percent

New York State Office of General Services (OGS) Commissioner Daniel D. Hogan announced today that the State has entered into an agreement with The Remi Group, LLC, to continue a successful Equipment Maintenance Program (EMP).

(PRWEB) September 28, 2005 -- New York State Office of General Services (OGS) Commissioner Daniel D. Hogan announced today that the State has entered into an agreement with The Remi Group, LLC, to continue a successful Equipment Maintenance Program (EMP) that, since its inception in 2002, has saved the State more than $800,000.

Governor Pataki has continually urged State government to find ways to cut costs, while maintaining the same level of service," said Commissioner Hogan. This program has already saved the State more than $800,000, and with more State agencies coming on board and the additional 5 percent reduction in program costs with this new contract, it will continue to save the taxpayers of the State even more in the future."

In May 2005, The Remi Group was awarded a new three-year contract with OGS to maintain and expand an already successful Equipment Maintenance Program, which was put in place in April 2002. As in the prior contract term, the new contract will once again be financially backed and underwritten by Zurich North America. Zurich is one of the most secure and strongest financial services companies in the world as recognized by independent rating agencies such as A.M. Best and Standard and Poors.

Each agency owns a vast array of equipment, such as printers, copiers and fire alarm systems, which are covered by individual service contracts. Under the EMP, rather than having various contracts for each, which are then renewed regularly with each equipment manufacturer or service provider by the various divisions within the agency, a comprehensive centralized database of equipment has been established under one service contract. When a machine needs to be serviced, the agency contacts the manufacturer or authorized repair service, but the invoices for maintenance and repair are now sent directly to The Remi Group. The Remi Group assumes the risk for costs to repair the machines, not the State. This process insures continued excellent service at a reduced cost to the State. Existing vendor service contracts are amended or allowed to expire.

The original contract, awarded in April 2002, reduced equipment maintenance costs by more than 20 percent and initially only included equipment owned by the OGS. With the new contract and the partnership that has developed between OGS, The Remi Group, and Zurich, New York State will now realize a 25 percent savings off vendor service contract expenditures.

The new program now includes an additional 30 agencies and in excess of 3,400 pieces of equipment covered for repair and preventative maintenance. Every new agency participating in the program realizes immediate hard dollar" savings on their annual equipment maintenance budget and contributes to the cumulative program-related savings generated for the State. The process of educating and enrolling additional agencies, as well as expanding the program in those agencies currently participating will continue. Representatives from The Remi Group and OGS have, and continue to visit interested agencies to help describe the program, assist in the enrollment process, and help customize the program to meet the specific needs of each agency or department.

The New York State Office of General Services (OGS) provides a broad range of support services that facilitate the operations of State government, and also assist local governments, public authorities and public and private agencies. OGS offers numerous services to clients throughout the Empire State, including property management, design and construction, information technology, procurement, and various support services.

###