A group of 34 local authorities regularly combine their IT hardware requirements to maximise their buying power and achieve the best prices. The group is overseen by its own IT Contract Board.
The group recently decided to continue to pool their requirements to buy laptops, desktops, monitors, tablets, hybrids and thin clients over a 2 year period.
Non-brand specific technical specifications were developed by the group, taking into account the common needs of all participants. Feedback was also received from suppliers, via a request for information, as part of the procurement process.
By taking on board the supplier feedback the technical specifications were optimised to reflect the current market. The group then all agreed to buy the same minimum technical specification of goods.
The specification also covered a wide range of services including imaging, asset tagging, delivery and warranty options. Optional upgrades and downgrades were added to the core specification to ensure individual customer’s specific needs could be met.
The contract board contacted the CCS technology aggregation team for advice on the options available, in order to repeat the success of previous procurements.
It was recommended that they use the Technology Products framework and run a further competition to achieve the most economically advantageous offer in the market, taking into consideration both price and non-price factors. It was also vital that technological advancement and price protection, including accounting for currency fluctuations, were fully catered for in the tender.
The further competition was concluded with an eAuction for approximately 48,000 devices. Only suppliers that were able to fully meet the stringent quality requirements were able to bid to offer their best prices in the eAuction.
Regular meetings were held with the board to agree things like evaluation criteria, lotting strategy and a communications plan. In addition, we provided advice on best practice procedures, highlighting potential risks and providing a number of recommendations to ensure the procurement was robust.
Against a pre-auction value of £24.6 million for the 48,000 devices, the eAuction achieved savings of up to 44% when 6 individual baskets of goods were compared with a combination of current prices paid and independent third party benchmarks.
In total the eAuction is expected to deliver savings of £8.8 million over the 2 year contract.
If you are interested in securing savings by combining your requirements with those of other organisations on a range of technology goods and services including mobile services, IT hardware and other telephony services please get in touch.
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