Cheltenham Borough Council has driven down the cost of maintaining its closed circuit television cameras using an online reverse e-auction.

Suppliers bidding for the maintenance contract were invited to take part on an electronic ‘reverse’ auction as they competed for the contract. The result is that costs have almost halved.

Angela Cox, the council’s procurement officer, said, ‘We are getting the same level of service for a much better price thanks to this new approach. We have been very careful to specify the quality of the service and we know that we are now paying the best price.’

Councillor Andrew Wall, cabinet deputy for internal performance and service improvement, who is responsible for championing better procurement at the council, said: “As a council we are determined to reduce the costs of delivering services to our local community. This new approach is great. Not only can get the same or better service for a lot less, but the auction is really exciting to watch too.

“This auction was the first electronic reverse auction for a council in Gloucestershire. It’s good to see that Cheltenham is taking a lead in the county on getting value for our residents.”

The council commissioned local company GS Auctions Ltd to operate the internet-based auction. The auction was watched by councillors and senior council managers as the bidders improved their prices.

Six companies took part with initial bids between £80,050 and £235,000. After almost two hours of intense bidding the contract was finally won at £56,751 - that is 30 percent better than the best original tender and around half of what was paid in the previous year. The contract with the winning supplier, OpenView Group Limited, has now been signed.

The procurement team is now working on an ambitious programme of other contracts. Full details are published in the business section of the council’s website – www.cheltenham.gov.uk

Posted: 08|1|06 at 8:10 am. Filed under: UK News.