Eauction halves IT costs for Councils and NHS Trusts

Fourteen councils and six NHS Trusts have joined together to save nearly £7 million in the latest IT hardware eAuction run by the Office of Government Commerce (OGC) with the London Centre of Excellence (LCE). The councils and trusts auctioned IT hardware requirements worth £13.7 million at pre-auction benchmarked prices, achieving a price at the end of the five hour auction of £6.9 million: an average saving of 50 per cent across the six lots.

This brings the number of central government and wider public sector organisations that have so far participated in OGC eAuctions to 325, saving a total of £21 million since the first eAuction in September 2005.

Rob Leak, Chief Executive of the London Borough of Enfield, one of the participating councils, said: "We are delighted with the results achieved through this eAuction as it gives us a tangible cashable saving and proves that collaborative working delivers results. I am eager that the collaborative approach extends to other high value commodities and services highlighted by the LCE as I am sure that there are even more savings to be exploited across London by working together and influencing markets."

Chris Chettle, OGC eAuction manager, said: "The eAuction has delivered an extremely competitive deal, demonstrating the huge benefits that can be obtained by working collaboratively to engage with suppliers. These councils and NHS trusts have together achieved far greater price reductions than anything they would have obtained by each negotiating with the suppliers on an individual basis."

The eAuction was championed by the London Centre of Excellence, which provided senior sponsorship and project management resources. The OGC assisted with technical and project management support, drawing on the lessons and successes of its previous six IT eAuctions.

Ken Cole, Director of the London Centre of Excellence, said:

"These excellent results show how the Regional Centres of Excellence are bringing local authorities and other public bodies together to combine their buying power. At a time when councils are facing greater financial pressures, eAuctions can deliver substantial savings which can help protect frontline services."

Any public sector organisation interested in making cash savings by participating in an OGC IT eAuction should contact Chris Chettle at the OGC, and for local authorities, the Director of their nearest Regional Centre of Excellence.

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