Fire and rescue authorities (FRAs) are being encouraged to co-ordinate their buying in order to make significant savings - and also to consider their choice of suppliers.
The national procurement strategy for the Fire and rescue service in England, published by the department for communities and local government, is advising authorities to work together to achieve their joint needs while achieving best value through bulk buying.
By co-ordinating their buying, FRAs could save at least £3.5million a year from the £100million they spend on goods and services such as vehicles, ladders and breathing apparatus.
FRAs are also being encouraged to consider how their choice of suppliers can help increase career and training opportunities for local people to benefit the economy.
As part of the new strategy, communities secretary John Denham is encouraging FRAs to explore the potential for skills development, apprenticeships and innovation when joint-purchasing from suppliers.
"The new procurement strategy for the fire and rescue service will help authorities achieve value for money especially if they join up to buy a product they all need. More efficient purchasing by FRAs should enable them to save millions of pounds to make the taxpayers' pound go further," said Denham.
"But it is not just about what money is spent on, but how it is spent. If FRAs look at a wider range of suppliers, including smaller companies, they have the opportunity to find the best products to purchase, foster innovation, help to create jobs and support local business."
By widening the range of companies invited to tender, and including smaller and medium sized enterprises, increased demand for products may enable more jobs to be created. The strategy also recommends making it easier and less costly for smaller companies to apply by simplifying and standardising paperwork.
The strategy also recommends that FRAs using professional buying organisations - such as Buying Solutions, Central Buying Consortium, the National Policing Improvement Agency and Firebuy – will gain the most favourable contract terms and value for money for the taxpayer.
This strategy is just one part of wider government initiatives that aim to get better value for tax payers' money and support economic development.
The department for business innovation and skills announced recently that every small business will now have access free of charge to the government's website www.supply2government.gov.uk which is the official government portal for the advertisement of lower-value (typically below £100,000) contract opportunities.
From Whitehall Watch
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