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Assessing the value for money of OGCbuying.solutions

thirty-third report of session 2006-07 : report, together with formal minutes, oral and written evidence

OGCbuying.solutions is an executive agency of the Office of Government Commerce and a trading fund. It was established in April 2001 to maximise the value for money obtained by government departments and other public bodies through the procurement and supply of goods and services. Its operations focus on three areas: framework agreements, managed services and memoranda of undertaking. The agency reported value for money savings of £412 million in 2005-06, an increase of 71 per cent since 2003-04. Following on from a NAO report (HCP 103, session 2006-07 (ISBN 9780102944037) published in December 2006, the Committee's report focuses on three main issues: creating a 'fit for purpose' organisation; increasing market share through smarter engagement with customers; and the role of OGCbuying.solutions in transforming government procurement.

In the last three years OGCbuying.solutions has exceeded its value for money
savings target by £32 million in 2003-04, £21 million in 2004-05 and £12 million
in 2005-06.2 It has, however, potential to increase significantly its annual savings
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Assessing the Value for Money of OGCbuying.solutions

OGCbuying.solutions is an executive agency of the Office of Government Commerce and a trading fund. It was established in April 2001 to maximise the value for money obtained by government departments and other public bodies through the procurement and supply of goods and services. Its operations focus on three areas: framework agreements, managed services and memoranda of undertaking. The agency reported value for money savings of £412 million in 2005-06, an increase of 71 per cent since 2003-04. Whilst these savings are judged to be significant, this NAO report identifies considerable potential to achieve further value for money savings and makes six recommendations to help OGCbuying.solutions further improve its performance. The NAO report estimates that these changes, combined with a more co-ordinated public sector procurement landscape, could achieve a potential £520 million to £660 million in further savings.

Whilst operating within this landscape, OGCbuying.solutions reported value for
money savings of £412 million in 2005-06, an increase of 71 per cent since 2003
-04.1 These savings have been achieved in a number of ways: I the majority of ...