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London councils publish tender for collaborative procurement

24 January 2012

A number of councils in London have published a framework agreement for a new collaborative procurement arrangement that is designed to offer extensive savings.

Westminster City Council is acting as the contracting authority on behalf of 19 other authorities based in the capital for a scheme that will involve bulk procurement of back office technology and services, reports Supply Management.

Services affected by the new agreement will include finance, human resources, payroll, e-sourcing, business intelligence and asset data management, with the councils set to leverage their combined commercial capabilities to reduce costs.

This new contract comes as part of the London Athena Programme, which aims to introduce joint purchasing models across the capital, and is set to be valued at up to £1.4 billion.

The tender explained: "The requirements of each of the [Westminster] council and the other participating authorities under the framework may vary. Some may issue call-off contracts under each lot and some may not."

Last month, the publication reported that Surrey County Council was recently able to deliver £27 million in savings thanks to revised procurement measures.

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