The introduction of a centralised Government procurement service has helped to generate savings of more than £2 million over the past two years.
Officers from across Government Departments were brought together in April 2011 to create a specialist procurement team based within Treasury. The main focus was on achieving better value for taxpayers’ money while supporting the local economy wherever possible.
The central team was also tasked with improving standards, efficiency and transparency in respect of the Government tender process and award of contracts. Treasury Minister Eddie Teare MHK says the new co-ordinated approach to buying goods and services is continuing to make an important contribution to the rebalancing of Government finances.
He commented:
‘Government spends a considerable amount of money on the things it needs to provide a comprehensive range of services to the Manx public, so it made sense for departments to work together to achieve the best deal for the taxpayer. I am pleased to say that the success of the central team has exceeded our initial expectations, with savings in excess of £2 million. Driving forward efficiencies and cost savings in the public sector is absolutely vital in the current financial climate. Procurement also has a wider role to play in terms of stimulating the local economy and ensuring Government spends money on behalf of the taxpayer in a fair, open and transparent manner.’
The seven-strong central team led by Neil Davidson, Government’s Head of Procurement, became operational on 1 April 2011. In addition to securing cost savings through a more consistent and joined-up approach to purchasing, the team was also set up to ensure –
• Contracts are awarded as the result of a clear and open competition
• All suppliers are given the opportunity to bid for Government contracts
• All suppliers are treated fairly and equally
Collaborative working between Treasury and other departments has so far resulted in a 150% increase in Government tender activity, and the development of a new standard tender process which is far quicker than its UK equivalent. In order to build on the success achieved to date, the Treasury Minister has appointed a new political champion of Government procurement.
Alex Downie OBE MLC, who will chair the recently established Procurement Committee, said:
‘I am delighted to take on this responsibility as procurement has a key role to play in Government’s overall budget rebalancing strategy. The centralised team is making a real impact on public sector purchasing and I look forward to overseeing a period of further progress in the months ahead.’
