Office supplies deal to save Whitehall £18 million a year

5 August 2011

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6 August 2011 | Angeline Albert

The UK government has awarded two central purchasing deals that are expected to save it £18 million a year on office supplies.

The office supplies contracts, agreed for all government departments, have been given to Banner Business Services, owned by Office2Office and XMA Ltd.

The deals will be managed by the HM Revenue &Customs (HMRC) on behalf of Government Procurement. The HMRC was selected to lead on managing the centralised buying agreements for this category because of its purchasing expertise in the area.

Banner Business Services will provide office stationery, office paper, janitorial goods and small office machines. XMA will provide electronic office consumable goods - such as photocopiers. 

The deals have reduced the number of catalogue items available to departments from 15,000 to 3,500. As well as Whitehall departments, a number of wider public sector organisations have also decided to take up use of the agreements.

Cabinet Office minister Francis Maude said: “These contracts will bring an end to the ludicrous practice of one department buying office equipment at one price while another buys the same items at a totally different price – all central government departments and quite a few public authorities will buy through this contract. I know it’s not glamorous to talk about savings made by procuring pens and paper, but centralising our procurement in areas like this will save the government, and therefore taxpayers, millions of pounds.”

John Collington, the government’s chief procurement officer, said: “These contracts are the first of many we will source and manage of behalf of departments, where government’s buying power is being better leveraged. These results demonstrate the procurement reform strategy is delivering as planned.”

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