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The government is expected to save around $60 million over the next five years after signing all-of-government procurement contracts for mobile voice and data services, Economic Development Minister Steven Joyce says.
The new contracts are part of a public-sector wide Government Procurement Reform Programme aimed at making government buying as efficient as possible and reducing costs. It includes all public sector agencies, councils and up to 2500 schools.
“The contracts will mean we have achieved an estimated total saving of $350 million from the seven contracts that have been completed to date,” Mr Joyce says.
The mobile voice and data contracts have been awarded to Gen-I, Two Degrees and Vodafone. They include all voice minutes and data used on mobile phones held by government employees.
Mr Joyce said every dollar saved means extra support for improved public services, essential infrastructure and for growing the economy.
“We are continuing to show the substantial negotiating power of government when procuring for all-of-government services. Mobile voice and data services are a significant cost for government so these new contacts are a great result,” Mr Joyce says.
“We are also seeing some additional benefits. Government agencies are spending considerably less on items such as computers and the uptake is increasing as contracts expire. Agencies and suppliers are also saving on resource costs due to now having preferred suppliers.”
The Government Procurement Reform Programme, being managed by the Ministry of Economic Development in collaboration with the Department of Internal Affairs, is also developing contracts for banking services, energy management, advertising, travel management and recruitment.