OGC forecasts big savings on government estate

26 February 2007
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26 February 2007 | Paul Snell

The OGC expects to make £1.5 billion savings on the government estate by 2013.

It plans to reduce the amount of government property, relocate civil service staff and improve procurement of facilities management services and leases.

Outgoing chief executive John Oughton said in a statement: "Managing the civil estate strategically can release funds that can be redeployed to critical frontline services. With a government estate costing £6 billion a year to run, there is huge scope to make a significant impact."

The OGC said this was an "integral element" of the Treasury's Transforming government procurement report, published in March. This outlined radical changes to the OGC and included plans to increase procurement skills across government.

The agency also said results from its first procurement capability review, conducted at the Department for Education and Skills (DfES) in March, would be examined internally in April (Web news, 14 February). The results will be published later in the autumn with those from two other evaluations. The OGC has not yet revealed the other departments that will be assessed.

Procurement capability reviews aim to identify purchasing capacity in each department and find out if they are meeting value-for-money standards.

DfES commercial director Ian Taylor, said: "We are delighted to be in the vanguard of this process. The insights to be gained will help us to ensure procurement plays its proper role across the department, and achieve better value for money."


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