Contractor asked for $500M in savings proposals
BATON ROUGE - A contractor getting $4.2 million from Gov. Bobby Jindal's administration for an efficiency study is expected to find ways the state can save $500 million annually.
Commissioner of Administration Kristy Nichols said Friday the expectations were included in the bid request. However, the savings target isn't directly spelled out in the contract signed with consulting firm Alvarez & Marsal.
The firm will wrap up its recommendations by mid-April.
Nichols said if the state isn't satisfied with Alvarez & Marsal's work, it can cut its payment to the company by 15 percent. But she said she was confident the contract would more than pay for itself in identified savings.
The contract runs through 2016. If the Jindal administration wants more work beyond April, the price tag would grow beyond $4 million.