Crown Commercial Service
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eAuctions bring substantial savings for the public sector
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
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