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Public Sector Spend

A Scanmarket Savings Snapshot on Service Agreements

Using eAuctions to Save Taxpayers’ Money.

Challenge

A public sector client needed to rationalize a range of over 500 products across 4 sites. Annual spend had previously been approximately £112.5k using the same incumbent supplier for many years. The biggest goal was to establish a new contract with improved service and delivery levels without increasing costs. Full compliance with OJEU legislation and all necessary public sector rules were observed prior to and during the eAuction.

Solution

The incumbent supplier as well as suppliers on the existing national framework were invited to participate in the eAuction. 3 suppliers confirmed their intent to participate, agreeing to the Terms and Conditions and the eAuction start prices prior to the event. The eAuction was structured into a single lot with the contract award based on the best price achieved during the eAuction and full compliance.

Result

More than 50 bids were submitted by the participating suppliers and the eAuction took approximately 90 minutes. Improved service and delivery options achieved and £37.5k savings identified (33%).

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