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New York City is about to exercise its buying power muscle by totally revamping its procurement process. That is a key part of this local government effort to consolidate and modernize its back-office operations with a goal of saving $500 million over the next four years. Initiated by Mayor Michael Bloomberg and Deputy Mayor Stephen Goldsmith, the effort focuses on the Department of Citywide Administrative Services, led by Commissioner Edna Wells Handy.

"We're looking at all of the areas where we could produce a higher quality government for less cost, and none is more relevant, particularly in the short term, than procurement," Goldsmith says. "In a period when demand for services exceeds the dollars available, we have an obligation to wring every dollar out of our procurement practice while enhancing the quality of what we're procuring."