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Procurement Case Studies

A couple of years from now, it could be your projects and achievements we're showcasing. To give you an idea of what you could achieve, take a look at some of the successes secured by departments and agencies already. They include:

Big Savings Through e-Auctions

Electronic reverse auctions (eAuctions) are an innovative procurement technique that use secured Internet-based technology. The sense of competition is heightened as suppliers compete in real time by bidding lower as the auction unfolds.

eAuctions are being increasingly used in public and private sectors as standard practice, both in prime contracts and in securing value in the supply chain. Suppliers are also realising the benefits of online bidding because of transparency and increased market awareness. Departments are being helped to make the optimum use of the value for money opportunity offered by eAuctions.

The Environment Agency has achieved savings totalling over £1m in nine months after deploying a system to award contracts for goods and services via electronic auction.
The system was inaugurated for a contract to supply electricity to over 300 of the Agency's sites, with four utility companies submitting bids. Auctions have since taken place for the supply of IT consumables, paper and stationery.

Efficient Payment through the Government Procurement Card

The Government Procurement Card (GPC) is a branded VISA Purchasing Card. It is available to the entire UK public sector at no cost through a framework agreement between OGCbuying.solutions, VISA and six VISA-issuing banks.

Whether utilised as an entry-level eProcurement solution or an efficient method of payment, the GPC Visa is a simple and effective business tool.

The Government Procurement Card provides:

  • A cost effective means of buying low value goods and services (typically removing 95% of administrative effort);
  • Enhanced standards of service delivery by making it simpler for employees to buy essential day-to-day items, travel tickets etc;
  • Guaranteed on-time payment to suppliers.

In short, the GPC is convenient, cost-effective, and a valuable contributor to efficiency targets.

By the end of 2008 it is anticipated that the cumulative spend will have risen to £4.5 billion from 2004's £1.1 billion.

Sustainable Procurement in the Public Sector

The UK Government Sustainable Development Strategy, published in March 2005, committed the public sector to leading by example in delivering sustainable development objectives. The public sector has a key role in furthering sustainable development through its procurement of buildings, goods and services. The Strategy established a business-led Sustainable Procurement Task Force to bring about a step-change in public sector procurement practice, such that by 2009, the UK is recognised as amongst the leaders in sustainable procurement across EU member states.

The Strategy defines sustainable development in broad social, environmental and economic terms. The term sustainable procurement therefore encompasses all issues where procurement is seen as having a role in delivering economic, social and environmental policy objectives.

OGC is fully engaged with the work of the Sustainable Procurement Task Force as it develops the national action plan. OGC is also represented on DEFRA's Sustainable Operations Board. OGC has been clear that sustainable procurement and efficiency should be mutually reinforcing.

ESourcing Gives Value for Money

eSourcing is the use of secure web-based collaborative tools by procurement professionals and suppliers to conduct the strategic activities of the procurement lifecycle online. These strategic activities, including requirements definition, tendering, negotiation, award and contract management, are designed to deliver value for money procurement solutions to the public sector.

eSourcing is playing a fundamental role in the modernisation of procurement practices and processes. The effective adoption of eSourcing technologies delivers tangible benefits including tender process cost savings of up to 28% for an OJEU tender, 25% for a non-OJEU tender and 15% for a Request For Quotation. Significant process efficiencies arise from the reduction in time spent on the tendering process.

Improving Capabilities in Construction Procurement

In 2003, £33 billion was spent on public sector construction, and in key sectors such as schools, hospitals, roads and social housing capital investment is set to continue expanding.

Well managed and successfully delivered public sector construction provides public departments and agencies with the opportunity to improve service delivery and efficiency. The Office of Government Commerce has a remit to work with client organisations across the wider public sector to help them improve their procurement capabilities.