As reported by Nextgov, the USDA, in an effort to cut costs, has drastically reduced its monthly cell phone bill by consolidating its contracts. The move will save the USDA an estimated $400k per-month, a yearly savings of about $4.8 million. The previous combined contracts cost the USDA about $1.6 million/month; now the consolidated contracts come at a cost of $1.2 million/month. In an email about the move, a USDA spokeswoman had this to say:
“Over the past year, USDA has moved from over 700 separate mobile service plans with three carriers that account for the largest portion of USDA cellular services to 10 service plans in three contracts at an estimated 18 percent to 20 percent savings,”
The USDA is no stranger to consolidating services for increased efficiency. It was also one of the first departments to move to a unified cloud-based email system.
Are other federal departments doing as good a job at consolidating its services to cut-costs and increase efficiency?