“Public sector procurement is in a total mess and this uncoordinated approach is costing the taxpayer dearly”.

“OGCbuying.solutions could potentially save £660 million if it could get its act together, but that is unlikely to happen whilst the public sector’s approach to buying goods and services is so disorganised”.

Mr Bacon was speaking as the Commons public accounts committee published its report into the performance of OGCbuying.solutions.  In 2005–06, OGCbuying.solutions reported value for money savings of £412 million, but the National Audit Office (NAO) has identified a further £520 million to £660 million of savings over the next 3–5 years that OGCbuying.solutions could make by improving its performance. 

The report also finds that public sector procurement is uncoordinated, with OGCbuying.solutions just one of over 50 public sector procurement organisations operating across the UK.  This lack of co-ordination results in organisations paying more than they should for goods and services.  For example, the NAO found a 139 per cent difference between the highest and lowest prices paid for a 12-pack of post-it notes.  Meanwhile prices paid for a toner cartridge ranged between £41 and £89, a 115 per cent difference^*. 

Mr Bacon added: “It is no surprise that government is paying silly prices for basic supplies.  It is relatively easy for an MP to browse the internet and find top brands at lower prices than Parliament’s official supplier can offer.  My office has already saved hundreds of pounds on printers just by shopping around”. 

27 June 2007

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See also:
PAC REPORT: OGCbuying.solutions

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