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CENTRALIZED MAILING SYSTEM NETS OVER $2.5 MILLION IN 1993 SAVINGS

 HARRISBURG, Pa., Nov. 29 /PRNewswire/ -- A contract with a centralized mail processing company in Reading, Pa., has saved more than $2.5 million for the Commonwealth during the first nine months of 1993, according to state General Services Secretary David L. Jannetta.
 JETSORT Inc. has processed 68 million pieces of first class mail for the Commonwealth through Sept. 24 for a net saving of $2,524,125.
 Since the Commonwealth contracted with JETSORT in 1991, the company has processed 208,178,182 pieces of mail, at a total saving of over $7.8 million -- which is the real dollar return after a 1.25-cent administrative charge per piece of mail is applied.
 "The savings continue to exceed our initial estimates," Jannetta said. "This is evidence of Gov. Casey's commitment to explore and implement every opportunity to cut the cost of state government and promote economic development on every front."
 The contract, which was awarded through competitive bid, enables Pennsylvania to take advantage of U.S. Postal Service discounts for pre- sorted and pre-barcoded mail. First class mail is collected at least once daily from 17 state agencies and transported by truck to the Reading facility for processing.
 Additionally, the contract has contributed to economic development in Pennsylvania by creating jobs and prompting economic investment.
 Because of the state contract, JETSORT made a $1.3 million capital investment in sorting and barcoding devices and spent more than $1 million for other equipment.
 The equipment was obtained from a Pennsylvania firm, which also provides maintenance under a $170,000 annual contract. Additionally, $140,000 in Pennsylvania truck leases was generated with the contract.
 In terms of job creation, the contract brought 18 new jobs to the Reading area. Additional business was obtained from New York and Maryland, resulting in another 16 jobs.
 The JETSORT facility in Reading has grown from five employees in September 1990 to 70 employees today. The company's annual payroll exceeds $1 million.
 /delval/
 -0- 11/29/93
 /CONTACT: Bradley Swartz of the Department of General Services, 717-787-3197/


CO: Pennsylvania Department of General Services; JETSORT Inc. ST: Pennsylvania IN: SU:

MK -- PH023 -- 8358 11/29/93 14:25 EST
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Publication:PR Newswire
Date:Nov 29, 1993
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