The latest eAuction was a collaborative event being supported by Capital Ambition, London's Regional Improvement and Efficiency Partnership, which provided senior sponsorship and project management resources via PA Consulting Group, and Buying Solutions.
Forty-seven public sector organisations, made up of councils, NHS trusts and central government departments, joined together in the latest OGC eAuction, which was run as part of OGC's Collaborative Procurement Programme's continued drive to encourage and harness collaborative procurement solutions across the public sector.
Speaking about the latest initiative, Angela Eagle, Exchequer Secretary to the Treasury, said:
"This eAuction has delivered an extremely competitive deal and I welcome the significant savings that have been made for the taxpayer. Innovation in the way the public sector buys goods and services is key to securing value for money alongside world class service delivery. eAuctions provide a very useful mechanism for public sector organisations to engage in and benefit from collaborative buying, and achieve the best value for the taxpayer.
"All public sector procurement professionals should consider how they might be able to use eAuctions as part of their procurement strategy and how they can make even greater value for money savings by joining up with other organisations to buy collectively."
Since the first OGC eAuction in September 2005, 117 central government and wider public sector organisations have got involved in the events saving a total of over £43 million. The recent savings of £10.5 million represent a total cost reduction over 21%, based on the average savings made against previous contract value on the lots that were auctioned on the day.
Nigel Smith, Chief Executive of the Office of Government Commerce, said:
"This demonstrates the huge benefits that public sector organisations can achieve by working together and engaging with suppliers effectively. Twenty six of the participants have been involved in at least one of the previous eAuctions, and in seeing the value of them have returned to save more money. I would encourage further participation across the public sector with future OGC eAuctions."
Rob Leak, a member of Capital Ambition and Chief Executive of the London Borough of Enfield, one of the participating councils, said:
"We are delighted with the results achieved through this eAuction as it gives us a tangible cashable saving and proves that collaborative working delivers results. I am eager that the collaborative approach extends to other Councils across London and indeed the country as I am sure that there are even more savings to be exploited by working together and influencing markets."
Public sector organisations interested in making cash savings by participating in the next OGC ICT eAuction, which is planned for the autumn, should contact the OGC Service Desk.
Notes to Editors
About OGC eAuction 10
The eAuctions run by the OGC are 'reverse' auctions, so suppliers are bidding decreasing prices for the contract offered. Tenders are assessed in advance against all relevant criteria, from which a provisional ranking is formed. During the auction, which is conducted online using specialist software, sellers continually lower their prices in response to competitors' bids. Only the buyer can see who is offering each price. After the auction has closed, the final contract will be chosen, taking into account both the price offered and the previous evaluation.
The latest eAuction was supported by Capital Ambition and Buying Solutions which provided senior sponsorship and project management resources via PA Consulting Group. The OGC, London Boroughs of Brent, Camden and Enfield, assisted with technical, commercial and project management support, drawing on the lessons and successes of its previous nine ICT eAuctions. For more information about Capital Ambition, London's Regional Improvement and Efficiency Partnership, visit www.capitalambition.gov.uk
About the OGC
The Office of Government Commerce (OGC) is an independent office of HM Treasury, established to help Government deliver best value from its spending. The OGC works with central Government departments and other public sector organisations to ensure the achievement of six key goals:
Delivery of value for money from third party spend;
Delivery of projects to time, quality and cost, realising benefits;
Getting the best from the Government's £30bn estate;
Improving the sustainability of the Government estate and operations, including reducing carbon emissions by 12.5% by 2010-11, through stronger performance management and guidance;
Helping achieve delivery of further Government policy goals, including innovation, equality, and support for small and medium enterprises (SMEs);
And driving forward the improvement of central Government capability in procurement, project and programme management, and estates management through the development of people skills, processes and tools.
OGC provides policy standards and guidance on best practice in procurement, projects and estate management, and monitors and challenges departments' performance against these standards, grounded in an evidence base of information and assurance. It promotes and fosters collaborative procurement across the public sector to deliver better value for money and better public services; and it provides innovative ways to develop Government's commercial and procurement capability, including leadership of the Government Procurement Service.