"This is smart contracting and a major money-saver for the State," said Governor Glendening. "It is a great example of how we can make government more efficient, while also contributing to Baltimore County's and the State's economies by selecting a local firm."

     Administered by the Maryland Department of General Services, the new contract, with Jetsort, Inc., of Baltimore County, covers 15 participating State agencies that have mail volume of almost 22 million pieces annually. Jetsort employs almost 100 people at 9108 Yellow Brick Road in the Golden Ring area.

     The Board of Public Works approved a $1,202,400 three-year contract with two one-year renewal options. With the new contract, the State's cost for postage using five digit barcoded zip codes is 27.05 cents per piece of mail compared to 34 cents for regular postage. If the renewals are exercised the State will save more than $7 million over five years on 110 million pieces of mail.

     "Our mission is to support other State agencies effectively enabling them to meet their operational needs in a cost-effective manner," said DGS Secretary Peta N. Richkus. "With this new DGS-administered contract, participating agencies will realize significant postal expense savings."

     DGS has administered a Statewide Mail Service Contract for the past 18 years. The current contract, with Jetsort, Inc., services 15 agencies by pre-sorting and pre-barcoding the State's mail. The agencies realize a direct savings as a result of postage discount rates approved by the United States Postal Service (USPS) under the USPS Reclassification Act.

     During the course of the current contract, in a cooperative effort between DGS and Jetsort, excellent results have been achieved in moving 47.1% of the total annual mail volume of approximately 22,000,000 pieces to the maximum USPS discount level of 5 digit presort/barcode. Over the last five years, a similar contract has saved the State more than $1 million annually in postage costs.

     The new contract amount of $1,202,400 represents the processing fees charged by the contractor for the various levels of presorting and barcoding at current volumes. The new pricing structure provides the same flat rate per piece which provides a greater incentive for agencies to further improve the quality of their mail to the highest postage savings category. Over the three year term of the contract, the State will realize a minimum savings of $4,401,300 in postage expense.

     The agencies participating in this contract are the Comptroller of the Treasury--Support Services, Sales and Use Tax units and Central Collection unit; the Maryland State Retirement Agency; the Motor Vehicle Administration; the Department of Natural Resources; the Department of Labor, Licensing and Regulation; the Department of Health and Mental Hygiene; the Department of Human Resources; the Department of Assessments and Taxation; the Department of General Services; the State Department of Education; the Workmen's Compensation Commission; the Maryland Insurance Administration; the State Highway Administration; and the Maryland Association of Counties.

CONTACT:

Dave Humphrey, Director of External Affairs
DGS Office of External Affairs
410-767-4652
E-MAIL: Dave.Humphrey@dgs.state.md.us

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