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15 November 01
GOVERNMENT ASSURED LOWEST PRICES IN NEW PRICE PLEDGE - ANDREW SMITH
A new price pledge from suppliers assuring civil departments the best price when placing orders for goods and services, such as light bulbs, CCTV and photocopying services, through a government catalogue was unveiled today by Andrew Smith, Chief Secretary to the Treasury.
The price pledge represents a contractual promise from suppliers to government using the Office of Government Commerce buying.solutions portfolio catalogue to match the best price offered to any civil central government department. This will deliver
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a contractual condition agreed with suppliers to sell to the public sector at the lowest price;
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benefits to the taxpayer from the lowest price in the market-place;
Speaking about the new price pledge Andrew Smith, Chief Secretary to the Treasury said:
"The introduction of this price pledge shows the scope that a focused approach to procurement can have in making full use of the public sector’s buying power. This is promoting the public sector’s efforts to become one of the smartest customers in the market place and to bring about best value for money for the taxpayer.”
Peter Gershon, Chief Executive of the Office of Government Commerce, welcomed the work of its trading fund, OGCbuying.solutions in developing this framework. He said:
"The pursuit of best practice and a more strategic approach to procurement across government is clearly generating results. Attitudes to procurement are changing. This is another successful step in OGC's agenda to raise the profile of procurement. This new clause follows best retail and commercial practice."
Types of goods and services purchased by government departments under this framework include :
- furniture
- stationery
- desk lights
- refrigerators and freezers
- waste disposal equipment
- temperature monitoring equipment
- catering equipment
- building materials
- engineering and industrial tools
- energy metering and monitoring
- water and waste management
- sanitary ware
- carpets and curtains
- dishwashers
Under the framework OGCbuying.solutions will negotiate the terms and conditions, including best price, with a supplier and enter into a contract with them. If at a later date the supplier chooses to sell to other public sector customers at a lower price, under equivalent conditions, then the Price Pledge clause will take effect. This will ensure that future OGCbuying.solutions. customers can buy goods and services from that supplier at the lower price.
This new clause applies to the OGC buying.solutions portfolio contracts covering a wide range of goods and services from paper clips to furniture. Over £117 million per annum is spent through Portfolio.
All contracts agreed between OGCbuying.solutions and new supplier companies will now include the Price Pledge clause as a requirement. Many of OGCbuying.solutions existing suppliers have already agreed to incorporate the Price Pledge clause as a supplementary condition from 1 October. It is expected that by March 2002 all suppliers will endorse the price pledge.
NOTES TO EDITORS
1. Office of Government Commerce is an Office of HM Treasury and was set up on 1 April 2000 to act as a catalyst for improving departments' commercial activities in the field of government procurement.
2. OGCbuying.solutions is an Executive Agency and Trading Fund of the Office of Government Commerce
3. Clare Poulter OGCbuying.solutions Deputy Chief Executive director, Liverpool, said: “We are keen to listen to and work with our customers to give them what they want from the procurement process. We have introduced the Price Pledge clause based on feedback that we have received over some time. It goes beyond the old All Star status, which was applied to some of our suppliers, as it gives more specific and measurable reassurance to customers. We hope to encourage customers to continue to engage in dialogue, both with us and each other, in order to obtain the best prices for the public sector and to share market intelligence.”
4. Kevin Cahill, Operations Director at OGC buying.solutions said: “Suppliers are keen to sign up to the price pledge because it demonstrates their wish to assure public sector purchasers that they are receiving real value for money, but it still allows pricing flexibility. The Price Pledge stamp immediately identifies suppliers as offering this assurance.”
5. The Portfolio Catalogue features goods and services procured under a series of individual framework agreements. Products include cleaning and environmental services, furniture, tools and appliances. It is available online as well as in catalogue form or a CD-ROM.
7. Press enquiries to Malcolm Graves at HM Treasury on 07785 316773 or Jacqui Goulden at OGCbuying.solutions on 0151 224 2323 or e-mail at the address below.