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Cruz points to a recent analysis from the Bureau of Information Technology which found that a unified telcom contract could save GovGuam $1.5 million annually.  That contract has been stalled by a procurement protest, but the Vice Speaker suggests there is a way for the Governor to raise“this contract beyond the present protests through your executive authority.”

In addition Cruz argues that the Governor could speed up the implementation of the proposed Fee Schedule for the Department of Mental health which, he says, could save GovGuam more than $9 million dollars annually. AS PNC News reported last week, that Fee Schedule is currently under review at the Attorney General's office.

READ Senator Cruz's release in FULL below:

Cruz to Calvo: Your Executive Authority Can Save Taxpayers $10.5 million
For Immediate Release

(August 15, 2012- Hagatna) Vice Speaker Benjamin J.F. Cruz wants the government to save at least $1.5 million through a unified government telecommunications contract that is months overdue and the implementation of a fee schedule for the Department of Health and Mental Health Authority.  This is why Cruz has asked Governor Eddie Baza Calvo to consider the use of his executive authority to raise the contract beyond its pending protests.  In a letter sent to Calvo this morning, Cruz argues that in a time of fiscal austerity, significant savings constitutes a compelling government interest

In a recent conversation with Bureau of Information and Technology Chief Information Officer Ed Cruz, the Vice Speaker requested a cost benefit analysis of the proposed government wide telecommunications contract. The analysis found that the current contract costs the government approximately $2,742,532.56 per year.  By comparison, the proposed unified contract—presently mired in protest would save the government $1,513,713.84 or 55% yearly.

“Based on the significant savings we would experience and the specter of dramatic cuts to personnel and their benefits, stated Cruz.  “I urge you to explore the option of raising this contract beyond the present protests through your executive authority.”

Cruz further asked that the Governor also aid in moving forward with the DMHSA Fee Schedule which would garner between $9-12 Million per year in revenue, saving the Government from fully funding its operations. Senator Cruz estimates the savings for the telecommunications contract and the DMHSA Fee Schedule would be approximately $10.5 Million or 25% of the Governor’s $43 million target for cost reductions.