News - Cellular Services Contracts Signed
Up to 20% savings for government under new contracts for Cellular Services
4 April 2005
The State Services Commission has signed syndicated contracts with Telecom and Vodafone for the supply of cellular services, expected to realise savings of up to twenty per cent for participating government agencies the Director of the E-government Unit, Laurence Millar, announced today.
Under the Commission�s Syndicated Procurement Programme, these three-year contracts are available to other public sector agencies, including local authorities, to join on the same terms and conditions, including pricing.
�These contracts are an example of coordinated State Services, enabling government agencies to collaborate to deliver savings and efficiencies to New Zealanders above and beyond what could be expected of them operating individually,� Mr Millar said.
Financial models based on existing calling patterns of government agencies have indicated that savings of up to twenty per cent can be achieved by agencies joining the agreements.
�Networking government delivers proven savings and other benefits to government. Last financial year, government agencies net savings through syndicated procurement deals was $2.32 million.� Mr Millar said.
Agencies that participate in the Cellular Services contract can expect these benefits:
- More competitive pricing, particularly for smaller and medium sized agencies, with pricing driven by the total volume under each supplier agreement, rather than just an individual agency's volume.
- Regular price reviews that get passed on to all agencies who have joined the agreements.
- The ability for coordinated contract management (each agency will manage their own relationship with the vendor/s, however the formal contract management and reviews will be managed by the Commission using a team of agency representatives, thus facilitating the sharing of knowledge and information across the participating agencies).
- There will be no need for agencies to tender their mobile services if either one of the two syndicated procurement contracts meets their needs.
For more information, see www.procurement.govt.nz
