Buying Solutions to subsidise e-auctions

The procurement agency of the Office of Government Commerce has said it will provide financial support for some public sector electronic auctions

GC News
Kable, Thursday 4 February 2010 00.05 GMT

Buying Solutions said it will consider contributing to the set-up costs for any organisation committing to an e-auction before the end of the financial year on 31 March.

A spokesperson told GC News it has £100,000 available with the maximum for any one body set at £10,000 and decisions to be made on a case by case basis. The money has to be spent through Buying Solutions' framework agreements on ICT, energy, property and office solutions, professional services, payment solutions or travel.

The move is part of its effort, on which it has been working with the OGC Centre for e-Auctions, to increase their impact on the public sector.

The spokesperson said that Buying Solutions is considering another financial support package for next year.

It has highlighted a recent e-auction in which Derby City Council saved more than £250,000, 40% of its original projected cost, on new mobile phones for its workforce.

Rob Knapman, Buying Solutions' director of e-commerce, said: "We were delighted to provide Derby City Council with financial assistance to help to run what has been a hugely successful exercise - but because we would also like other organisations to share in the excellent results that e-auctions can clearly deliver, we decided to put this latest offer together.

"Secure, online e-auctions are increasingly being used across the public sector as an effective procurement tool providing an excellent value for money solution which encourages a heightened level of competition as the auction unfolds and optimises cost savings.

"We have recently facilitated e-auctions across mobile solutions, IT hardware and furniture, with customers benefiting from savings ranging from 13% to 45% across these categories. The benefits are not limited to these areas with products and services from most of our framework agreements suitable for an e-auction."