15 April 2014

Welsh National Procurement Service combines expenditure savings and job creation

The Welsh government is hoping for annual savings of around £25 million (approximately €30 million) following the introduction of a National Procurement Service (NPS) to coordinate contracts for spend across the public sector in Wales. As well as saving money, the new service is expected provide a boost to local jobs by directing public expenditure to Welsh companies and developing more sustainable local supply chains.

The NPS is formed of more than 70 organisations with a combined annual public procurement expenditure of £4.3 billion. Just under a third of this is on common and recurring purchases of goods and services such as stationery, office furniture, IT and transport fleets. By working together, local authorities, health boards, universities, colleges, fire and rescue and police authorities can leverage their joint spending power to eliminate duplication, reduce expenditure and encourage a more sustainable and efficient procurement model.

Finance Minister Jane Hunt said "The creation of the NPS […] demonstrates that in Wales we can develop innovative approaches through a public sector that is prepared to work collaboratively across organisational boundaries for the greater good. [...] The NPS will follow the best practice set out in the Wales Procurement Policy statement published last year which will not only make it easier for suppliers to engage but will also provide crucial opportunities to develop local supply chains with local Welsh businesses."

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