New office charged with saving up to €600m a year

The Government has moved to trim its massive €9bn annual outlay on procurement by setting up a National Procurement Office charged with saving up to €600m a year.

The plan was given the green light at yesterday’s Cabinet meeting, with the new office — led by a Chief Procurement Officer, to be appointed shortly — to look at procurement strategy, policy and operations.

The body will operate under the Department of Public Expenditure and Reform, with a target of bringing in annual savings of between €200m and €600m.

More detail on the establishment of the office will be presented tomorrow by Minister for Public Expenditure and Reform Brendan Howlin and Minister of State for Public Service Reform Brian Hayes.

The position of Chief Procurement Officer will be advertised shortly.

Earlier in the summer, Mr Hayes, who has responsibility for procurement of goods and services, said the Government had mandated the public sector to use centralised framework contracts put in place by the state’s National Procurement Service.

The NPS, which operates within the Office of Public Works, already has approximately 50 centralised purchasing arrangements in place.

The proposals, to be outlined in full tomorrow, are the latest in a series of measures aimed at effecting savings in procurement.

Earlier this year, Mr Hayes said: “For a country that faces a budget deficit of €18bn this year, we have to move in the direction of central purchasing. I cannot emphasise enough the importance of all officials embracing the opportunities afforded by central purchasing.”