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OGC delivers unambiguous instructions on collaborative deals

By OGCbuying.solutions

Acting OGC Chief Executive Peter Fanning has challenged Government departments to use 12 pan–government collaborative deals including Government Procurement Card and fuel cards, recycled paper, IT goods and services, mobile and fixed line telephony, photocopiers and multifunctional products.

In an unambiguous letter circulated to departments in June, Mr Fanning sets out what they need to do to help deliver the Transforming Government Procurement agenda.

He describes the ongoing work with Commercial Directors across Whitehall to develop pan–government collaborative procurement strategies for those categories of common spend that offer the best overall value from using collective buying power to cut prices and transaction costs.

Meanwhile OGC has been busy identifying currently available deals for the purchase of common commodities and to develop new deals (such as the fleet deal being set up by DWP) that that can be used by all departments. Significant progress has been made identifying best frameworks and deals and pushing volumes through on a voluntary basis.

Total public sector spend on the categories covered by the 12 deals listed by Mr Fanning is £7.3 billion.

In his letter Mr Fanning said: “We now believe that the time has come for all colleagues to ensure that their procurement spend is channelled through such collaborative deals.”

“In some cases, of course, you will be tied to current contracts that will prevent you using these arrangements immediately. If, however, you think you can get better value for money by setting up new arrangements, you will now need to demonstrate that this is the case and seek OGC's approval in writing.

“If you wish to use any other existing arrangement for these categories because you believe it to offer better value for money in your case, please let us know so that OGC can share that information with colleagues in future updates to this letter.

“By using arrangements such as these, which have already gone through the OJEU process, departments can avoid the need to undertake full EU procurement exercises. For most of these deals, departments will also benefit from the services of a dedicated contract management team, providing regular management information, and resolving any supplier relationship issues that may arise, again saving departmental resources.”

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