Online auctions save government £7 million on IT

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An online government procurement auction has helped 14 councils and six NHS trusts save a combined £7 million on IT hardware purchases, according to a report by the Office of Government Commerce (OGC).

The OGC eAuction site helped the councils and trusts buy six lots of IT hardware for £6.9 million, nearly half the price of the pre-auction benchmark price of £13.7 million.

The site lets public sector organisations place tenders together and buy in bulk, which helps drive prices down, said OGC eAuction manager Chris Chettle.

"These councils and NHS trusts have together achieved far greater price reductions than anything they would have obtained by each negotiating with the suppliers on an individual basis," he said in a statement.

Rob Leak, chief executive of the London Borough of Enfield, one of the participating councils, said in a statement: "We are delighted with the results achieved through this eAuction as it gives us a tangible cashable saving and proves that collaborative working delivers results."

Since the first eAuction in 2005, the service has helped 325 government and public sector organisations save £21 million. For this round, the London Centre of Excellence managed the tenders.

Aside from Enfield, the 14 councils included nine otheres in London, Barking and Dagenham, Brent, Bromley, Camden, Harrow, Islington, Lambeth, Merton and the City itself. Councils in Hull, North Lincolnshire, North East Lincolnshire and Walsall also took part.

The six NHS trusts are Poole Hospitals, the Royal Bournemouth & Christchurch Hospitals, Somerset Primary Care, Taunton and Somerset Trust, West Dorset General Hospital and Yeovil District Hospital.

Earlier this year, IT PRO reported that the Ministry of Defence has started using an online auction to sell surplus goods.

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