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18 November 2012 | Anna Reynolds
Spend data gathered over the past year has enabled the Government Procurement Service (GPS) to identify savings it’s already made and opportunities for the future.
The four-year contract with BravoSolution, which began in December 2011, is providing detailed spend analysis across central government. It covers around £60 billion of annual spend with some 500,000 suppliers to the 17 central departments and many of their arms-length bodies.
Fiona Carpenter e-enablement programme director at GPS, told SM: “For the first time we have visibility of about 84 per cent of the procurement expenditure of central government. We can use this to identify opportunities for the year ahead, move expenditure into GPS frameworks which releases savings and use the analysis to identify where we have got areas of non-compliance.”
The analysis identified that £2.5 billion savings were made across central government between 2011 and 2012, the majority of which (around 70 per cent) came from demand management strategies.
Information on what it spends is now being used to set up framework deals covering nine categories. These are ICT, communications, office solutions, energy, fleet, travel, print management, property, and consultancy contingent labour.
“We are taking detailed data from around 80 different organisations [including arms-length bodies] who up until now have all had autonomy. It is a huge step forward in government procurement,” said Carpenter.
David Murray, director of resources at GPS, told SM: “Government departments and the wider public sector have looked at the prices we are achieving and the commercial terms we are putting in place and seeing it as an attractive arrangement. They are migrating towards the GPS construct.”