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Results: Value for money - Part 4

Procurement

Syndicated procurement contracts potentially provide value through more competitive pricing and service levels that acknowledge the higher volume of business from multiple organisations.

Fifty-seven percent of responding CIOs reported some or widespread involvement in syndicated procurement contracts involving other government organisations (Table 8), but a somewhat lower 22 percent were confident when starting a procurement exercise that they knew what similar exercises were being planned or carried out by other government organisations.

Figure 5

Graph showing Involvement in syndicated procurement contracts by government organisations (30 June 2008)

Involvement in syndicated procurement contracts by government organisations (30 June 2008)

Figure 6

Graph showing CIO knowledge of syndicated procurement contracts (30 June 2008)

CIO knowledge of syndicated procurement contracts (30 June 2008)

Table 8

Government syndicated procurement, by organisation size and type (30 June 2008)

Total number of responding organisations Degree of involvement in syndicated procurement contracts Confidence in knowledge of existing syndicated procurement contracts
don't know little or none some widespread not confident neither confident
Percent15
Organisation size16
<50 employees 10 20 50 30 0 40 50 10
50–99 employees 6 0 67 33 0 50 17 33
100–499 employees 36 3 42 50 6 58 17 25
500–999 employees 14 0 50 43 7 71 14 14
1000–4999 employees 29 3 28 62 7 72 7 21
5000 or more employees 10 0 20 60 20 30 40 30
Organisation type
Central government 93 3 37 53 8 59 17 24
State owned enterprise 12 8 58 33 0 58 33 8
Overall 105 4 39 50 7 59 19 22

Note: Due to rounding, percentages may not add to 100

In response to a question regarding outsourcing and software, Gen-I Telecom and Microsoft were identified as the predominant suppliers to Government. Several suppliers were named by a relatively high proportion of organisations, therefore there may be opportunities for future strategic procurement exercises to achieve greater value for money across government.

Table 9

Top 5 outsourcing and software suppliers with whom responding organisations were likely to do business worth $100,000 or more (estimated, 2008/2009 financial year)

Rank17 Supplier
Outsourcing supplier
1 Gen-i/Telecom
2 Datacom
3 HP/EDS
4 IBM
5 Unisys
Software supplier
1 Microsoft
2 Oracle
3 IBM
4 SAP
5 Eagle Technology

Footnotes

[15 Percentages are of all responding organisations in each size or type ]

[16 Number of employees is an estimate derived from a variety of sources including annual reports, the State Services Commission's Human Resource Capability Survey, organisation websites, and the number of reported ICT users. ]

[17 From most commonly named to least commonly named ]


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