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YELLOW SHEET Office of the State Auditor of Missouri |
Report No. 2005-40
June 2005
Money may be saved if three state departments buying similar
tractors, trucks coordinated purchases
This audit reviewed whether three departments - Conservation, Natural Resources
(DNR) and Transportation (MoDOT) - coordinated their purchases of trucks,
tractors and specialty equipment to achieve the lowest prices. The three
departments spent $31 million on heavy equipment during the 2003 and 2004 fiscal
years, with about $10 million spent on very similar equipment, often from the
same manufacturer. In addition, auditors analyzed how well each department
monitors the equipment use. Auditors recommended the three agencies periodically
meet to discuss coordinating equipment purchases.
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Conservation saved money by buying off MoDOT contract |
Auditors found Conservation used an
existing MoDOT heavy equipment contract to save $21,000 on a $72,000
purchase of four skid steer loaders in 2003. Conservation usually
purchases through the Office of Adminstration (OA), but after reviewing
bids obtained by OA, realized it could save money purchasing the loaders
through the MoDOT contract. (See page 6)
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Officials said they could coordinate more |
Department officials acknowledged they
have not coordinated annual equipment purchases or determined potential
savings with consolidated purchasing. State law requires Conservation
and DNR to obtain purchasing approval from the OA, before buying from a
MoDOT contract. OA officials said they are not opposed to the two
agencies buying through MoDOT if savings occur. (See page 6)
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All agencies lack good policies to ensure full use of equipment |
The agencies lacked adequate policies
and criteria to ensure full use of the owned and leased heavy equipment.
MoDOT's 2003 analysis showed 9 out of 10 districts used tractors less
than the department's 300 hours a year criteria. In addition, auditors
found MoDOT had 292 tractors that did not meet its use criteria.
Conservation has tracked tractor use, but not established specific use
criteria. DNR also has not established use thresholds, and has not
analyzed its usage data for trends. (See pages 7, 10)
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Equipment could be shared more among MoDOT districts |
Auditors found tractor use varied
substantially within MoDOT's 10 districts. For example, one district's
weekly tractor use ranged from 1 to 3 hours per week. MoDOT does not
have a policy requiring districts to
share equipment when possible. MoDOT officials said districts have
shared equipment, but the extent of sharing was not tracked. (See page
9)
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