26 June 2007 | Antony Barton
OGCbuying.solutions must become a "fit for purpose" organisation with better staff skills and incentives to drive performance across its activities, according to the parliamentary Public Accounts Committee (PAC).
In a report on the value for money of the government buying agency, the PAC says OGCbs should secure lower prices for customers, improve the management of its suppliers and increase its market penetration.
OGCbs reported value-for-money savings of £412 million for 2005-06. But a report from the National Audit Office found potential for annual savings of between £520 million and £660 million over the next three to five years.
Edward Leigh MP, chairman of the PAC, said: "OGCbuying.solutions really should be centre stage in the drive to achieve better value public sector procurement - at present it is just one of the chorus."
He added that very little public sector spending benefits from the products available from OGCbs and, to attract more customers, it needs to drive down prices.