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Talks with suppliers saved State E41m

Wednesday, February 13 10:23:21

A Government initiative where officials sit down and talk to suppliers has saved the State some E41m, according to Procurement Minister, Brian Hayes today.

The initiative from the National Procurement Service (NPS) saw savings from a wide range of business areas including legal, financial and management consulting services, ICT, waste management, facilities management, catering services, telecommunications and human resources management.

Suppliers also made a wide range of proposals regarding future savings and efficiencies.

"Getting better value for money from our suppliers is crucial to the government's work and mandate. Latest figures show we spend E9 billion procuring goods and services. One of the first things I did in coming into government was to initiate supplier talks with the leading government suppliers. I made it clear that, in future, the government will use its considerable purchasing power to get better prices, doing exactly what the private sector does when it meets its suppliers. I initiated a series of meetings between the NPS and top suppliers, with a view to negotiating a dividend to the State and clarify the extent of better pricing of goods and services being obtained by Government," the Minister said.

"As a direct result of this initiative, suppliers have so far committed to new dividends and discounts of E6m in 2012 and into 2013. The initiative also identified that State bodies are receiving additional better value from these companies through improved tender prices, procurement practices, Pro Bono work and discounts amounting to E35m since 2011".