MOD Reverse Auctions helps make £100 million Government saving
Published June 28th, 2007
A DE&S project team has combined MoD’s office supplies requirement with those of eight other Government departments in the biggest ever public sector reverse auction to generate combined savings over existing spending of £100M over the next four years.
MoD combined its own office supplies requirement with Her Majesty’s Revenue and Customs, Home Office, Dept of Constitutional Affairs, Metropolitan Police, Foreign and Commonwealth Office, HM Treasury, Office of Government Commerce and HM Prison Service to generate the savings.
This collaboration has resulted in extraordinary savings in the procurement of office supplies; a saving to the MoD alone of £50million over the span of the contract.
Dr Philip Mason, who headed the Group Supplies team tasked with delivering the services, said:
“Group Supplies are proud to have been entrusted with this complex and prestigious project which allowed us to demonstrate to the MoD the added value we can bring with our commercial approach.â€
This complex competition was the largest and most successful Public Sector reverse auction achieving the greatest saving ever using an auction process. The 2,432 bids was the highest number of bids in a single auction, there was the longest extension period of 13 hours and 45 minutes. The auction also produced the highest saving per hour at a single auction of £6.4 million per hour
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