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June 19, 2009

Management Contracts Awarded for Cape Girardeau, Mountain View & Sugar Creek License Offices

Management contracts for three more local motor vehicle/license offices were awarded today by the Missouri Department of Revenue.  The granting of the offices came as a result of a comprehensive bidding process that has been championed by Gov. Jay Nixon.

The three offices awarded today are in Cape Girardeau, Mountain View and Sugar Creek.  This brings to 25 the total number of offices granted under the new system.

The Southeast Missouri University Foundation has been awarded the contract to operate the Cape Girardeau License Office.  The foundation has been the office agent since 1993.  The office will remain at 112 S. Spanish St.

The license office in Mountain View has been awarded to Pamela Sue Smith of Mountain View.  The office will remain at its current location of 119 S. Pine St.

Paul J. Wrabec Co., Inc. has been awarded the right to operate the Sugar Creek License Office.  The new license office will be on South Sterling Avenue in Sugar Creek.

Details about any changes in office operations, if any, will be announced by the agents.

The three offices awarded today are the latest to have their management chosen using a bidding process that was implemented when Gov. Nixon took office on Jan. 12.  The process calls for people or groups to submit detailed bids to obtain the management contracts to operate the offices.  Each of the three offices awarded today had two bidders.

Karen King Mitchell, director of the Missouri Department of Revenue, said she is pleased with how the competition for license offices has progressed.

“The process to compete for the right to operate these offices is transparent and open to anyone,” Mitchell said.  “It’s been gratifying to see the quality of the bids that have resulted from this new process because the ultimate winners will be the citizens of the state of Missouri.”

Some winning bidders have chosen to return part of their estimated office revenues to the state.  The Cape Girardeau office will return 2 percent ($4,678) of its first year revenues, Mountain View will return 1 percent ($636), and the Sugar Creek office will return 3.5 percent ($7,503).  The cumulative amount of estimated funds that will be returned to the state in the first contract year from the 25 license offices that have been awarded so far is $130,644.

“The willingness of agents to return some of their profits is a great cost-efficiency measure for the state, and the amount returned to the state will undoubtedly grow as more bids are awarded,” Mitchell said.

For a list of winning bidders for license offices, please go to http://oa.mo.gov/purch/awardedfeeoffices.pdf.

All 183 local license offices provide services that are overseen by the Missouri Department of Revenue, but each office is operated by an independent contractor.  Transactions that are conducted at these offices include the issuance and renewal of driver licenses, applying for titles for motor vehicles, and the issuance and renewal of registration for motor vehicles, boats and outboard motors.

Additional information on the bids will be posted by the Missouri Office of Administration within the next few days.