Purchasing Practices Focus of Government Procurement Review

Improving the way goods and services are purchased is the focus of a new initiative by the Government of Newfoundland and Labrador. The Strategic Procurement Project will also identify opportunities to help mitigate budget pressures, while supporting Newfoundland and Labrador’s business community and the provincial economy.

The Provincial Government has engaged the expertise of Deloitte to work with a cross-government team to achieve minimum targeted savings of approximately $15 million annually, with the contract with Deloitte valued at approximately $4 million. The team will work with the regional health authorities, school boards, College of the North Atlantic and Memorial University of Newfoundland, among others. Deloitte has worked with other provincial governments in Canada on similar projects.

New procurement practices are being developed in the areas of fleet purchasing, travel, facilities management, laboratory and medical equipment.

“It is important that we make smart and efficient purchases that achieve real savings and represent best value for every dollar spent,” said the Honourable Nick McGrath, Minister of Service NL and Minister Responsible for the Government Purchasing Agency.

“The Provincial Government has a solid history of sound financial management and we have worked very hard to get our fiscal house in order. This review of government purchasing certainly supports that goal and will help us focus on priorities to improve the way we purchase goods and services.”

The Government of Newfoundland and Labrador has set a 10-year fiscal plan to reduce Newfoundland and Labrador’s debt level to the all-province average. This initiative supports that plan.

The Strategic Procurement Project is expected to be completed by August 2013 with savings achieved in the latter part of 2013-14.

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Media contact:
Vanessa Colman-Sadd
Director of Communications
Service NL
709-729-4860, 682-6593
vanessacolmansadd@gov.nl.ca 

2013 03 05                                 2:30 p.m.