Staffordshire Council signs Capita to save £18.5 million in purchasing

2 May 2012

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2 May 2012 | Adam Leach

Staffordshire County Council has announced Capita will be its private sector partner in a “payment by results” deal to save the authority £18.5 million over three years.

The authority said the contract, announced yesterday and running for a period of three years, won’t cost taxpayers a penny as Capita will be paid on a “shared results basis”, taking a portion of the savings generated.

As SM reported in January, the Council agreed to go out to tender for a private company to provide added support and expertise to its internal procurement function.

Speaking on the signing of the deal with Capita, Ian Parry, deputy leader of Staffordshire Council, said: “We spend around £525 million every year buying goods and services and I want to make sure we are getting the maximum value for our money. We are confident that a more commercial, streamlined approach will deliver multi-million pound savings.”

Ben Eggleston, head of local government at Capita’s consulting business, said in a statement: “We’re looking forward to working in partnership with Staffordshire County Council to drive procurement savings across the Council and explore ways of working with local suppliers to improve local economic conditions.”

The Council stated exploring how the authority’s purchasing power can be used to support local business is a key objective of the partnership. In addition, to help the council look at this, bringing in private sector expertise would “speed” improvements in its procurement operations.

Discussing the “payment by results” format with SM earlier this year, Parry said: “The more successful they are, the more they will earn. If they save us 10 million quid, they’ll get part of that ten million quid.”

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