Procurement reform delivers more savings

Procurement reform delivers more savings

State-sector wide procurement reforms are continuing apace, with contracts for printing, copying, fax and scanning machines set to save taxpayers more than $20 million dollars over the next five years, Economic Development Minister Gerry Brownlee says.

Contracts have been awarded to Canon New Zealand Limited, Fuji Xerox New Zealand Limited, Konica Minolta Business Solutions New Zealand Limited and Ricoh New Zealand Limited.

The Department of Internal Affairs negotiated contracts are part of government-wide procurement reforms led by the Ministry of Economic Development.

Mr Brownlee says he is pleased with the outcome.

“By using the collective buying power of the State sector, we can save money without compromising on quality.

“Overseas experience shows major cost savings when agencies take a strategic approach and move print volumes to low-cost devices.

“I have asked the Internal Affairs to work closely with agencies to ensure potential savings are maximised,” Mr Brownlee said.

“The contracts also make it easier to do business with government by cutting red tape and simplifying the process for suppliers.

This announcement is one of four all-of-government contract segments that together are expected to deliver savings of over $115 million over the next five years. The contract for office supplies was announced in July and the contract for passenger vehicles was announced in August. Contracts for laptop and desktop computers will be announced soon.

Cabinet has asked officials to look at developing all-of-government contracts for other government purchases, including external legal services, travel, recruitment, ICT hardware and utilities.

Government currently spends around $30 billion a year on procuring goods and services. For more details on government procurement and all-of-government contracts visit: www.procurement.govt.nz

ENDS