UK MoD Partners & Auctions to Save on Basic Supplies
As anyone who has ever dealt with them knows, national defense organizations aren’t exactly paperless. Over in Britain,
Ministry of Defense officials in Defence Equipment & Support (DE&S) realized that several MoD office supplies contracts were due to end in September 2007. They decided to combine all the planned purchases to maximize leverage with suppliers, whereupon the Office of Government Commerce saw an opportunity for wider collaboration. While other departments were added, the DE&S team commissioned Group Supplies Ltd. to help structure a commercial tender process; the company advised MoD to split the contract and undertake 4 auctions on sequential days, with the GBP 110 million stationery supplies requirement held the 1st day.
The result was a reverse auction contract involving 9 government departments, with winning bids totalling GBP 132 million in an outcome expected to save the MoD GBP 50 million over 4 years, and save all participants GBP 100 million overall. As of October 1/07, stationery will be supplied by Lyreco Uk Ltd, paper will be supplied by Office Depot UK Ltd., and Westcoast Ltd DBA Orion Media Marketing will supply magnetic media and electronic office supplies. Deliveries will take place to the UK MoD, and to Her Majesty’s Revenue and Customs, Home Office, Dept. of Constitutional Affairs, Metropolitan Police, Foreign and Commonwealth Office, Treasury, Office of Government Commerce, and Prison Service. MoD release.