Headlines: June 22nd, 2009

The public sector spends £19b each year on accommodation, office refurbishments and renovation projects and £3.8b on energy. Costs in these areas are set to fall following the negotiation of framework agreements by Buying Solutions, an executive agency of the Treasury.

The Treasury announced its Operational Efficiency Programme in April which charted ways to save £15b in efficiency savings over the next few years. The Programme identified £7.7 b of savings from collaborative procurement by 2013-14. The savings will result from volume leverage which will compel suppliers to cut prices and end the practice where, for example, some public bodies were paying twice as much for energy as others. Collaborative procurement will also allow the sharing of learning and build the capacity of staff involved in buying.

Buying Solutions has launched a new collaborative Project Management and Full Design Team Services framework agreement. This is an agreement with suppliers that sets out terms and conditions under which specific arrangements can be made by public sector customers. It will help public sector organisations in delivering a wide range of new build, regeneration, renovation and refurbishment schemes.

A major campaign has also been launched as part of the Pan-Government Energy Project to improve the way the public sector buys its energy. As part of the campaign guides have been published which aim to promote best practice management of energy procurement. These will be supported by a series of regional road-shows to publicise best practice solutions across the public sector.

Tom Logan, MOD sponsor of the Pan-Government Energy Project, said: “Publication of the guides represents a further important development in the work of the pan-government energy project, which is bringing proven improvements in the procurement of energy to the public sector. This is a good reflection of the work of the team, and an example of what can be achieved when central and local government work together.”