Denham calls for smarter council procurement
Author: Local Government Chronicle - Sep 24, 2009
Communities secretary John Denham has urged councils to join together to bulk buy goods and services in a bid to slash local government’s £42bn bill for external contracts.
A top level local government delegation met ministers, business leaders and senior academics to discuss his plans for more innovative procurement.
Local Government Association vice chairman Sir Jeremy Beecham (Lab) was joined by representatives from the Chartered Institute of Public Finance & Accountancy and a raft of councils.
The size of the local government “storeroom” means there are plenty of opportunities to trim costs with smarter procurement, from the 500,000 light bulbs used in town halls, to the 1.27m computers and approximately 50,000 vehicles, ministers said.
Officials said if councils followed Barclays, which recently replaced all computers with more energy efficient models, they could save £400m over time.
Mr Denham said: “Councils need to recognise that creative purchasing is not simply ‘buying for less’ it is also about being innovative and shaping markets - these must become the new principles of public procurement.
“All too often contracts are written with a product already in mind as though the only objective is the bottom line, but this can exclude innovative solutions and smaller businesses. By thinking creatively councils can deliver real social, environmental and economic benefits - helping to create jobs, boost skills, and support small businesses.”
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