Local government buying structure 'very confused'

The complexity of local governnient procurement structure is making it difficult for buyers to identify the best deals, according to the heads of a Regional Centre of Excellence (RCE).

Speaking at the Procurement Solutions for the Public sector event in London last month, Nicol Thornton, assistant

"Which organisations are best placed tor which types of procurement? Are some better nationally, regionally or locally?"

He said the plethora of buying consortia, cross-buying groups and buying models, which otter varying levels of coverage and service, often make it difficult for local government buyers to know where to get the best deal.

Thornton added that councils are also ottered similar services by a variety of groups. For example, OGCbuying.solutions, the Central Buying Consortium and Eastern Shires Purchasing Organisation all oiler mobile phone deals for councils in the East of England.

But, he added, the RCEs are reviewing the local government procurement framework to see if it could he better organised.

One sugucstion put forward by the RCKs is to move the tactical spend of small, low-risk items to regional buying consortia.

"Why spend time on it when there are organisations who do it day in day out?" said Thornton.

Steve I Iolland, director ot the East of England RCE, said: "There is a shortage ot procurement expertise. We ought to he developing and using procurement hubs, in effect outsourcing much ot the procurement activity in each of the 388 local authorities in England."

He said the ?38 billion procurement budget of local government could be better spent and added that a national plan on the purchase ot commodities would be unveiled by October.

Both I Iolland and Thornton said by transferring tactical spend elsewhere, local authorities could concentrate on strategic, complex areas ot spend. I hey stressed that purchasers would not be out of a job as a result.

Thornton said buying consortia, OGCbuying.solutions and local government procurement experts had been consulted lor the review and had responded positively, but no timetable tor change had vet been established.