Mark Conrad 22 October 2008

OGC efficiency package set to help cut procurement costs

The trading arm of the Office of Government Commerce has launched a financial analysis package which could help councils identify extra procurement savings.
OGC Buying Solutions said the tool – Spend analysis – enables public bodies to manipulate and cleanse their financial data in order to clarify their spending patterns, which could then be changed to help them achieve extra savings.
A spokesman for the OGC said: ‘In the current economic climate, public bodies such as councils will be keen to make every saving they can in order to invest in frontline services. This OGC package will help them achieve that.’
The OGC, a Treasury offshoot, will target the new service at public finance directors and procurement specialists, and expects councils to become significant customers.
A team of OGC-approved consultants could also be provided to public clients to ‘configure data analysis so they deliver the greatest benefits for customers and comply with European Union public procurement legislation’.
Firms approved to provide consultancy under the plan include Accenture, Emptoris and IBM. Robert Knapman, OGC director of e-commerce, said: ‘This is a very exciting framework agreement which will provide customers with a hugely useful, yet simple process of aggregating, classifying and leveraging spend data for the purpose of reducing costs.’
Meanwhile, the CLG has urged councils to respond to its current consultation on plans to include an efficiency statement on future council tax bills. Local government minister, John Healey, has supported the idea, because it could help the public to associate their council’s tax plans with the quality and cost of the services provided.
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