NSW Supply develops and administers period contracts, also known as ‘standing offers’, on behalf of the State Contracts Control Board (SCCB). NSW Supply period contracts are arranged for the supply of products and services for a specified period and cover items in categories including IT and communications, motor vehicles and transport, energy, food and hospitality, cleaning and building products and services, hardware and electrical, office products and equipment and temporary staff.
The benefits of SCCB contracts are open to all Local Government bodies. Average cost savings that can be achieved by purchasing through NSW Supply contracts are estimated at 12 per cent for medium to large organisations and 25 per cent for small organisations.
Other tangible benefits include the following.
- Cost effective service delivery to the community
- Consistent application of the highest standards of probity
- Reduced cost of doing business
- Significantly reduced contractual risk
- Socially responsible business practices.
By utilising the government contracts, significant savings in both price and business efficiency can be gained. By aggregating purchasing power across Government, NSW Supply is able to offer significant price savings on products and services to contract users. Coupled with the rigorous and probity rich tendering process ensuring quality products, services and contractors and reduced procurement risk, contract users are also able to save time and administration costs in the sourcing of products, services and suppliers.
The aggregation of buying power through contracts eliminates duplication of the procurement function for individual organisations. NSW Supply is continuing to develop systems that will provide further savings through contracts – including aggregation of purchasing across organisations to allow for further volume discounts.
Examples of the power of aggregation to reduce costs, especially through ‘pre-commitment’ by Government, is demonstrated in a proposed Enterprise Agreement with Microsoft for desktop software licences which has the potential to save approximately $93 million over three years, and the aggregation of motor vehicle bulk purchasing.
For further information about Government contracts and their use, please contact NSW Supply, telephone (02) 9372 7541 or visit www.supply.dpws.nsw.gov.au
* Copy supplied by NSW Supply
