Q&A
DOC's process for conducting price comparisons
0:21:33
·
156 sec
Council Member Julie Won inquires about the specific process DOC uses to conduct price comparisons for commissary items. Deputy Commissioner James Conroy explains their manual process and contract terms regarding price changes.
- DOC staff physically visit local stores to compare prices, rather than using software.
- Price comparisons are done on an ongoing basis, not just at contract initiation.
- Contract terms allow for price decreases and limited increases (up to 5% for 20% of items per year) with DOC approval.
Julie Won
0:21:33
Can you tell us about your process itself of how you're doing price comparisons?
0:21:36
Are you using a software tool?
0:21:38
Are you manually collecting pricing before you sign the contract?
0:21:41
Can you tell us more about how you're doing that?
James Conroy
0:21:43
I I don't engage in this myself, but, the people that do what I understand is they actually go to the stores and look at the areas.
0:21:49
There's not a software that I'm familiar with, but I can follow back with you to see if we do have that.
0:21:54
But, I understand it's actually a physical comparison to local stores and prices, some of which can be found online, but they do utilize, again, local pricing.
Julie Won
0:22:03
Okay.
0:22:04
So you're manually going to a store and checking?
0:22:06
Because I I that isn't a fair market comparison because, for example, at the time that the that the article was written and the pricing that you have on your contract itself for female menstrual pads, female menstrual pads are double the price of what it is at CVS.
0:22:22
So how would that work?
0:22:23
Because each store may have a markdown at the week of that you're doing physical price checks.
James Conroy
0:22:29
Well, it's not a one time look in.
0:22:31
Right?
0:22:31
This is an ongoing process, and and we look at them on a rolling basis.
0:22:34
The contract is for a several year period.
0:22:37
And, again, we get
Julie Won
0:22:38
But you have testified that item prices are set for the duration of the contract.
0:22:42
So if the contract is set for more than a year, how are you doing that on a rolling basis?
James Conroy
0:22:47
They're set at the initiation of the contract, and they could only be increased.
0:22:50
However, we have seen items that are decreased based on the computer So we notice now what's what's on our menu is lower than some of the pricing obligations.
0:23:00
But the increase in prices from the initial contract implementation, I think there have only been 3 increases excluding stamps, which the stamps only cost what they cost at the post office.
0:23:11
But excluding that, I think there's only been 3 price increases and one of them was actually due to an error in the typing where we, it was for sugar packets, which went from 11¢ to 30¢, but that was an error in the initial contract price.
Julie Won
0:23:24
Okay.
0:23:24
So you're saying that the pricing for the items set in the contract can be changed to decrease or increase with your approval throughout the contract?
James Conroy
0:23:35
The they are allowed pursuant to the contract.
0:23:37
Only 20% of the items can be changed in a year, if at all, and they could only be raised by 5% of the contract price.
0:23:47
And again, that's with the approval of the Department of Corrections.
0:23:50
So, actually, we had a request for an increase in price, I think in, in July of 2024.
0:23:58
We actually declined the, one of the requests to increase the price and took the item off of our menu.
Julie Won
0:24:06
And what item was that?
James Conroy
0:24:07
I think it was pork jerky.