November 1, 2013
Government Purchasing Review Surpasses Goal with $20 Million in Savings Annually
Newfoundlanders and Labradorians will see better value for their tax dollars with the successful completion of a series of Request for Proposals (RFPs) and direct negotiations under the Strategic Procurement Project. The implementation of contracts resulting from these RFPs will allow the Provincial Government to achieve annual savings of approximately $20 million, $5 million more than was originally projected. With typical contracts running three years or longer, the total savings are expected to reach $80 million.
“The Provincial Government has successfully demonstrated the value of procuring goods and services more effectively and efficiently in order to achieve these savings,” said the Honourable Dan Crummell, Minister of Service NL and Minister Responsible for the Government Purchasing Agency. “This approach involved working collaboratively with provincial entities as well as the supplier community while using new approaches to procurement that resulted in smart and efficient purchases. This collaboration absolutely resulted in the success of this project.”
Under the Strategic Procurement Project, 21 RFPs and four direct negotiations were conducted in the areas of fleet, travel, purchase cards, printing and health services. Implementation for most contracts has begun while others may require some time to implement fully. All savings will go towards reducing the deficit.
In Securing Our Future: A 10-Year Sustainability Plan for Newfoundland and Labrador, the Government of Newfoundland and Labrador’s commitment to providing a sustainable future for residents included developing strategic procurement practices across the Provincial Government and its entities.
“The lessons learned from the technology, processes and partnerships used in this initiative have laid the foundation for the Provincial Government to improve the way we do procurement broadly,” said Minister Crummell. “I am very pleased with the results we have achieved with the Strategic Procurement Project as these efforts will help ensure that our province can sustain a vibrant economy, live within its means, and get back to a balanced budget.”
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Media contact:
Vanessa Colman-Sadd
Director of Communications
Service NL
709-729-4860, 682-6593
vanessacolmansadd@gov.nl.ca
2013 11 01 9:05 a.m.