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Government defends new procurement policy

5 May 2011

The government has issued a defence of its new centralised procurement policy against criticisms that it will not deliver the promised savings.

Concerns have been raised over the initially small-scale implementation of the new set-up, which is aimed at saving Whitehall 25 per cent on the £13 billion spent on common goods and services over a four-year period, reports Supply Management.

However, HM Revenue & Customs commercial director David Thomas argued that volumes will increase over time, with the initial baseline reflecting the demands of the on-boarding process.

He went on to add that the new system represents a "fundamental" change from previous framework arrangements.

"This is an advert for a single, central-government, contractual vehicle, which will buy on behalf of all departments with committed volumes to maximise leverage," Mr Thomas explained.

The director was among the nine 'crown representatives' appointed to oversee central government procurement activities last month, with others including Home Office commercial director Bill Crothers and Ministry of Justice procurement director Vincent Godfrey.

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Categories: Central Government

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