State of California Strategic Sourcing Initiative

The State of California, the fifth-largest economy in the world, is facing one of the worst fiscal crises in its history. In October 2003, California’s projected budget deficit had grown to US$36 billion. Today, a year and five months later, the deficit is smaller but the state still has significant cost reduction opportunities. “Last year we stopped the bleeding,” Governor Schwarzenegger said of the California economy in early March 2005. “This year we will heal the patient.”

Among the state’s efforts to “heal the patient,” California launched the California Performance Review, one of many programs designed to rein in spending. One component of this review is the California Strategic Sourcing Initiative (CSSI). Led by the California Department of General Services, CSSI is aimed at improving the way the state procures goods and services.