BUYING SOLUTIONS News
Release (EAU06/05) issued by COI News Distribution Service on 18 May 2009
A series of
eAuctions have enabled public sector organisations to make 13 per
cent to 29 per cent savings across a range of products and
services, including mobile solutions, IT hardware and furniture.
The 12 eAuctions (electronic reverse auctions) were organised and
sponsored by Buying Solutions on behalf of public sector
organisations as part of a recent initiative to drive eAuction
capability across the public sector.
eAuctions are increasingly being used across government as an
effective procurement tool as part of the wider promotion of
eProcurement solutions, one of the key recommendations of the
Government's Operational Efficiency Programme. They provide
an excellent value for money solution for public sector spend as
they are designed to encourage competition and optimise cost savings.
This innovative approach offers the buyer a mechanism to benefit
from buying goods and services from collaborative, value for money
arrangements, whilst achieving best value for their organisation
by reducing costs throughout the auction process.
One eAuction, run on behalf of North Yorkshire County Council
enjoyed successes with savings reaching as high as 29 per cent
against customer current levels of spend (last purchased price).
The eAuction covered mobile phones that are used by council staff
including social workers, surveyors and engineers. The council
used the Mobile Solutions II framework agreement, available
through Buying Solutions, to select the suppliers used in the eAuction.
Ian Beverley, Director of Procurement for North Yorkshire County
Council said today: "eAuctions are a powerful tool for
delivering significant savings when used in the appropriate
circumstances. Auctioning a service such as telephony has
delivered outstanding results for North Yorkshire.
"On each occasion, this process has been used as the Further
Competition process under a Buying Solutions framework agreement,
ensuring minimum procurement overheads for maximum savings return."
Rob Knapman, Buying Solutions' eCommerce Director added:
"This innovative approach to eAuctions allows customers to
benefit from Buying Solutions' unique position as both an
expert in eProcurement and a provider of value for money framework agreements."
For more information on eAuctions and other procurement
arrangements, please contact the Buying Solutions' Customer
Service Desk on 0845 410 2222.
Notes to Editors
About eAuctions
An eAuction, which is effectively an electronic reverse auction,
is a Further Competition tool available under Buying
Solutions' framework agreements, which can be utilised to
ensure minimum procurement overheads for maximum savings return.
Suppliers take part and compete against each other to place
increasingly lower bids representing the amount they would be
prepared to accept in payment for the contract. This is how
'reverse' auctions differ from traditional auctions in
which buyers compete with one another on how much they are
prepared to pay.
The suppliers taking part are able to see the value of the latest
bids as they appear onscreen, but do not know how many other
companies they are competing against or their identities.
The bidding starts as soon as the eAuction is declared open, and
after the allotted time, the deadline can be extended as the
participants continue to big against each other. The eAuction
concludes when the lowest price has been achieved and the winning
supplier is identified.
About Buying Solutions
Buying Solutions is the national procurement partner for UK
public services. We are an Executive Agency of the Office of
Government Commerce in the Treasury.
We have extensive expertise in procurement, with over 500,000
products and services delivered through over 600 suppliers in ICT,
eCommerce, property and office solutions, energy, travel and
professional services.
Our EU-compliant, benchmarked framework agreements and other
procurement arrangements enable organisations to deliver improved
value for money in their commercial activities. We also provide
expertise and professional support to our customers.
More details are available on the website: http://www.buyingsolutions.gov.uk
Media contact:
Ben Heppenstall
ben.heppenstall@buyingsolutions.gsi.gov.uk