Scottish Government
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Launch of Procurement Scotland

A new way of buying goods in Scotland has already saved taxpayers over one million pounds, it was announced today.

Finance Secretary John Swinney welcomed the results of Procurement Scotland, which was officially launched today.

An online auction last December for IT hardware for public sector bodies saved over £1.2 million, compared to an earlier auction at the start of 2007. Examples of savings already made include:

* North Ayrshire Council bought more than 1,100 desktops and laptops and saved in excess of £150,000
* Argyll Housing Association managed to achieve savings of 56 per cent on previous PC purchases
* West Lothian College saved 55 per cent on laptops and 34 per cent on desktop computers
* Grampian Fire and Rescue was able to buy laptops at 'two for the price of one'

Procurement Scotland, initially set up and known as the National Centre of Procurement Expertise, is a core part of the Scottish Government and will implement national strategies for buying common goods and services used by the public sector, from electricity to office equipment, from paper to professional services.

Cabinet Secretary for Finance John Swinney said:

"I'm looking to all parts the public sector to buy wisely and make the most effective use of their resources.

"As a first demonstration of the work of Procurement Scotland, I welcome the substantial savings of up to 56%, which will allow money to be reallocated to other priorities. But this is just the start. We need to drive forward reform for the whole public sector, improving collaboration and minimising duplication of effort.

"Procurement can make a significant contribution to our priority of delivering sustainable economic growth in Scotland. We must deliver benefits to the people of Scotland through value for money for taxpayers, improved goods and services for all our citizens; and economic opportunities for our businesses. That is what Procurement Scotland, and other procurement centres of expertise, will do.

"The Government is keen to maximise the involvement of a broad range of businesses in the procurement process and this approach will help us achieve that aim."

Public sector spending on goods and services across Scotland is around £8 billion a year.

The auction was run by the newly established Procurement Scotland. It will co-ordinate the development and implementation of collaborative procurement strategies for defined goods and services, worth around £1 billion a year. These are:

* Corporate Services
* IT Hardware
* IT Software
* Office Equipment
* Professional Services
* Telecoms
* Utilities

Central government, councils and higher and further education sectors participated in the auction. Suppliers were offered the opportunity to win cross-sector business in Scotland for committed volumes of IT hardware equipment. The auction also offered the potential of substantial future volumes from other public sector organisations off the contract over the next 12 months.

Uplifts in the specification of hardware and improved energy efficiency will also bring additional business benefits to participating organisations. In addition, experience from previous auctions suggests that other organisations are likely to come on board later, with the result that projected savings will rise to over £2.2 million.

Related Information

http://www.scotland.gov.uk/Topics/Government/Procurement/npcoe

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