Councils and NHS cut hardware costs 50% with online auction

Fourteen councils and six NHS Trusts have saved £6.9m on the list price of a range of IT hardware through a five-hour online auction.

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Fourteen councils and six NHS Trusts have saved £6.9m on the list price of a range of IT hardware through a five-hour online auction.

The average saving across the six lots on offer was 50% of the pre-auctioned benchmark prices.

The process was overseen by the Office of Government Commerce (OGC), which is charged with implementing the government’s Gershon review on public sector efficiency the government’s procurement organisation the

Also involved was the London Centre of Excellence (LCE), one of nine regional bodies created in 2004 to improve public sector procurement in the regions.

Rob Leak, Chief Executive of the London Borough of Enfield, one of the participating councils, said: "We are delighted with the results achieved through this eAuction. It gives us a tangible cashable saving and proves that collaborative working delivers results.”

Leak said the collaborative approach should be extended to other high value commodities and services.”I am sure that there are even more savings to be exploited across London by working together and influencing markets."

Chris Chettle, OGC eAuction manager, said: "The eAuction has delivered an extremely competitive deal. These councils and NHS trusts have together achieved far greater price reductions than anything they would have obtained by each negotiating with the suppliers on an individual basis."

The eAuction was championed by the LCE, which provided senior sponsorship and project management resources. The OGC assisted with technical and project management support, drawing on the lessons and successes of its previous IT eAuctions.

So far 325 central government and wider public sector organisations have participated in OGC online auctions, saving a total of £21 million since September 2005.

The fourteen councils participating in the online auction were:

London Borough of Barking & Dagenham

London Borough of Brent

London Borough of Bromley

London Borough of Camden

City of London

London Borough of Enfield

London Borough of Harrow

London Borough of Islington

London Borough of Lambeth

London Borough of Merton

Hull City Council

North Lincolnshire Borough Council

North East Lincolnshire Borough Council

Walsall Metropolitan Borough Council

The NHS trusts participating in the eAuction were:

Poole Hospitals NHS Trust

The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust

Taunton & Somerset NHS Trust

West Dorset General Hospitals NHS Trust

Yeovil District Hospital NHS Foundation Trust

Somerset Primary Care Trust

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