Use of frameworks and e-procurement tools helped government departments make big savings in 2009

Whitehall and the wider public sector saved £500m in the construction sector last year according to the Office of Government Commerce’s (OGC’s) annual statement released today.

The government said that a total of £1.4bn was saved in the procurement of energy, vehichle fleets, food, ICT, construction, professional services, travel and office solutions in 2008/2009.

According to the Working together: delivering value report costs were cut through 'collaborative procurement'.

It said the the use of frameworks and e-procurement tools helped made the procurment process more efficient.

Nigel Smith, chief executive of the OGC said: “Getting maximum value from government spend has never been more important than now, and the OGC is helping the public sector deliver this.”

Breakdown of the £1.4bn saving according to the OGC report:

• Energy: £139.8m

• Fleet: £61.9m

• Office Solutions: £61.1m

• Travel: £26.8m

• Professional Services: £428.4m

• ICT - £196.7m

• Food - £26.1m

• Construction - £459.3m

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