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Office of Government Commerce - UKHUGH BARRETTChief Executive, OGCbuying.solutionsEU Procurement Learning LabFriday, 28 November 2003
VALUE FOR MONEY*
AgendaIntroduction to UK Public Sector PurchasingCross Public Sector deal with MicrosoftGovernment Procurement Card
VALUE FOR MONEY*
IntroductionSize of UK Public Sector Market PurchasesCCG (England) - 19bMinistry of Defence - 14bNational Health Service - 16bLocal Government - 37b
VALUE FOR MONEY*
Office of Government CommerceCreated in April 2000Office of HM TreasurySupervisory Board
VALUE FOR MONEY*
OGCs Purpose and AgendaOGCs vision is to work with Central Civil Government as a catalyst to achieve best value for money in commercial activities
VALUE FOR MONEY*
OGCs Objectives:From 1999 2002 1.43 billion value for money improvements.From 2002 2006Deliver 4.29 billion of value for money gains in civil government procurement through the Office of Government Commerce
Agreed measurement methodologyDepartments can keep their contribution
VALUE FOR MONEY*
Major IssuesImproving DeliverySmall and Medium size enterprisese Agenda
VALUE FOR MONEY*
OGCbuying.solutionsOGCbuying.solutions is a trading arm of the Office of Government Commerce.Agencys role is to deliver value for money gains for the public sectorManage 2b of public expenditure through central arrangementsRealising 233m of savings to the public purse in 2002
VALUE FOR MONEY*
What are Memoranda of Understanding?Aggregate demand to save public money and lower cost of sale for supplierVoluntary agreements, not procurementsSpecify pricing and terms for whole public sectorOperate within existing contractual and procurement frameworks
VALUE FOR MONEY*
The Microsoft MoUSigned in February 2002 for 3 yearsSpecifies pricing and terms on Enterprise Agreement 6.0, Select Agreement 6.0 and Software Assurance3 year payment schedule on Enterprise licensesSavings to date are 71.5m over pre-MoU pricingCovers up to 1.5 million desktops
VALUE FOR MONEY*
Government Procurement Card History GPC 1 launched in 1997Originally available to all Central Civil Government DepartmentsVisa Purchasing cardMethod of paying for low value goods and servicesVisa Corporate Card Travel and SubsistenceOriginal contract let for 5 years and expired January 2003GPC 2 contract let in February 2003
VALUE FOR MONEY*
SavingsProcess efficiency savings = Time / Environment / MonetaryKPMG Analysis 1997Review of all Central Government DepartmentsAverage savings figure = 40 per transaction
VALUE FOR MONEY*
How does GPC save cost?
Office of Government Commerce
VALUE FOR MONEY*
Growth of GPC: Spend & Savings
Chart5
133.253
5212.272
14831.391
32562.201
606108.502
Spend
Savings
Year
millions
Sheet1
SpendTransSavingsSpendSavingsTrans
Aug-99130.1163.2531999133.2530.116
Aug-00520.43812.27220005212.2720.438
Aug-011481.12131.391200114831.3911.121
Aug-023252.22162.201200232562.2012.221
Aug-036063.875108.5022003606108.5023.875
Sheet1
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Year
(million)
Year on Year Growth
Sheet2
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000
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&A
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Sheet3
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&A
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Spend & Savings ( Millions)
Transactions (Millions)
GPC Growth
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Growth of GPC: Spend & Savings
MBD0011030E.xls
All Data
GPC SpendNov-97Dec-97Jan-98Feb-98Mar-98Apr-98May-98Jun-98Jul-98Aug-98Sep-98Oct-98Nov-98Dec-98Jan-99Feb-99Mar-99Apr-99May-99Jun-99Jul-99Aug-99Sep-99Oct-99Nov-99Dec-99Jan-00Feb-00Mar-00Apr-00May-00Jun-00Jul-00Aug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
Monthly Spend112,000129,000138,848193,275218,103292,787302,996232,576291,432397,686437,120496,148496,081732,041978,1831,080,4031,328,7411,509,8641,841,5132,051,5852,037,9402,392,4452,615,7902,670,0002,229,2273,394,2743,690,0003,548,7673,508,2614,310,4564,648,4854,669,8094,972,7455,509,6136,373,1136,078,6065,685,6068,138,7748,649,6127,832,9287,684,5268,218,4398,602,0998,375,1049,056,00110,035,06011,223,78811,024,5309,481,58414,026,15215,962,38413,865,70813,257,72212,282,90314,480,44714,180,00914,761,71018,075,23320,391,82518,790,63516,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,778
Year to date112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,971496,0811,228,1222,206,3053,286,7084,615,4496,125,3137,966,82610,018,41112,056,35114,448,79617,064,58619,734,5862,229,2275,623,5019,313,50112,862,26816,370,52920,680,98525,329,47029,999,27934,972,02440,481,63746,854,75052,933,3565,685,60613,824,38022,473,99230,306,92037,991,44646,209,88554,811,98463,187,08872,243,08982,278,14993,501,937104,526,4679,481,58423,507,73639,470,12053,335,82866,593,55078,876,45393,356,900107,536,909122,298,619140,373,852160,765,677179,556,31216,933,45342,722,30269,175,54794,143,118113,576,133135,581,197157,417,975
Year To Date % on same period last yearUp 200% on Aug-99Up 191% on Sep-99Up 175% on Nov-99Up 168% on 1999Up 155% on Jan-00Up 140% on Feb-00Up 134% on Mar-00Up 121% on Apr-00Up 119% on May-00Up 88% on Jun-00Up 85% on Jul-00166.7647037097
Cumulative Grand Total0.0112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,9713,738,0524,470,0935,448,2766,528,6797,857,4209,367,28411,208,79713,260,38215,298,32217,690,76720,306,55722,976,55725,205,78428,600,05832,290,05835,838,82539,347,08643,657,54248,306,02752,975,83657,948,58163,458,19469,831,30775,909,91381,595,51989,734,29398,383,905106,216,833113,901,359122,119,798130,721,897139,097,001148,153,002158,188,062169,411,850180,436,380189,917,964203,944,116219,906,500233,772,208247,029,930259,312,833273,793,280287,973,289302,734,999320,810,232341,202,057359,992,692376,926,145402,714,994429,168,239454,135,810473,568,825495,573,889517,410,667
GPC Transactions
Monthly Transactions6088089931,4631,8602,4222,8162,6402,7293,5134,0234,5854,6806,4738,40210,04712,61613,88215,69915,92816,11618,93521,02622,08018,14225,55027,00028,39330,19338,11439,39537,17237,31042,45350,11445,37938,98155,54255,65953,47451,23056,11356,92156,00356,01560,48070,62767,69355,95279,65977,17476,16179,85374,96986,18983,03989,801103,477125,551109,36191,722133,294126,539118,915113,426126,964127,715
Year to date6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,4604,68011,15319,55529,60242,21856,10071,79987,727103,843122,778143,804165,88418,14243,69270,69299,085129,278167,392206,787243,959281,269323,722373,836419,21538,98194,523150,182203,656254,886310,999367,920423,923479,938540,418611,045678,73855,952135,611212,785288,946368,799443,768529,957612,996702,797806,274931,8251,041,18691,722225,016351,555470,470583,896710,860838,575
Year To Date % on same period last yearUp 277% on Aug-00Up 160% on sameUp 152% on sameUp 115% on Jan-00Up 117% on Feb-00Up 105% on Mar-00Up 89% on Apr-00Up 70% on May-00Up 50% on Jun-00Up 44% on Jul-00
Cumulative Grand Total6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,46033,14039,61348,01558,06270,67884,560100,259116,187132,303151,238172,264194,344212,469238,019265,019293,454323,647361,761401,156437,027474,337516,790566,904612,283651,261706,806762,465815,939867,169923,282980,2031,036,2061,092,2211,152,7011,223,3281,295,3521,351,3041,430,9631,508,1371,584,2981,664,1511,739,1201,825,3091,908,3481,998,1492,101,6262,227,1772,336,5382,428,2602,561,5542,688,0932,807,0082,920,4343,047,3983,175,113
Average Transaction Value ()184.21159.65159149138133127119117116115114113114114112109109111114126126.35124.40120.92122.87132.84136.66124.98116.19113.09117.99125.62133.28129.78127.17134145.85146.53155.40146.48150.00146.46151.12149.54161.67165.92158.91162.86169.45176.07206.84179.69166.03163.84168.01170.76164.38174.68162.42171.82184.61193.47209.05209.96171.33173.32170.98
Cards (End Month)4775075306757779019521,0001,2471,4011,5831,8723,0623,4004,1244,5094,7775,1775,3835,6476,3477,1327,4677,0327,6127,9748,8009,3269,80110,77211,04211,54011,98412,18312,84613,56314,25914,75715,29415,70015,70016,87816,95817,75218,60619,12021,33321,68122,23922,79723,48425,58026,25726,93527,52827,83928,40328,61030,22530,77431,42231,49132,03231,99032,91033,27133,284
Programmes34 implementing34 implementing32 implementing32 implementing18 Implementing125135143139144148152148155149158159158158164165170172175173173175175176177178186188195197199
T & S SpendNov-97Dec-97Jan-98Feb-98Mar-98Apr-98May-98Jun-98Jul-98Aug-98Sep-98Oct-98Nov-98Dec-98Jan-99Feb-99Mar-99Apr-99May-99Jun-99Jul-99Aug-99Sep-99Oct-99Nov-99Dec-99Jan-00Feb-00Mar-00Apr-00May-00Jun-00Jul-00Aug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03
Monthly Spend546,410806,565403,485695,142818,381823,255824,590864,0152,455,0282,032,6391,951,0732,300,4202,455,792.002,493,9451,637,3222,253,1282,686,6292,623,8712,512,5082,717,8532,796,9132,332,1902,199,5682,601,5792,663,7032,736,0401,747,9082,593,9592,593,6732,943,1542,315,2272,971,1762,776,930
Year to Date5,942,6406,749,205403,4851,098,6271,917,0082,740,2633,564,8534,428,8686,883,8968,916,62510,867,69813,168,11815,623,910.0018,117,8551,637,3223,890,4506,577,0799,200,95011,713,45814,431,31117,228,22419,560,41421,759,98222,358,03725,021,74027,757,7801,747,9084,341,8676,935,5409,878,69412,193,92115,165,09717,942,027
Year To Date % on same period last year
Cumulative Grand Total19,755,17722,008,30524,694,93427,318,80529,831,31332,549,16635,346,07937,678,26939,877,83742,479,41645,143,11947,879,15949,627,06752,221,02654,814,69957,757,85360,073,08063,044,25665,821,186
T & S Transactions
Monthly Transactions4,4506,5683,2865,6616,6646,7046,7187,03619,99216,55215,88818,73319,99820,30913,84218,34121,13319,79819,58921,47822,66720,77419,43123,15924,04523,88116,53223,27323,25023,32219,37224,88224,465
Year to Date4,4506,5683,28613,84232,18353,31673,11492,703114,181136,848157,622177,053200,212224,257248,13816,53239,80563,05586,377105,749130,631155,096
Year To Date % on same period last year
Cumulative Grand Total13,84232,18353,31673,11492,703114,181136,848157,622177,053200,212224,257248,138264,670287,943311,193334,515353,887378,769403,234
Average Transaction Value ()122.79122.80122.79122.79122.81122.80122.74122.80122.80122.80122.80122.80122.80122.80118.29122.85127.13132.53128.26126.54123.39112.26113.20112.34110.78114.57105.73111.46111.56126.20119.51119.41113.51
Cards (End Month)1,5951,6241,7341,7421,9802,0322,0472,0766,1976,1976,1976,1976,1976,0275,7835,8665,9976,3377,4527,6487,7867,8957,8978,0678,1718,2838,3338,8899,0758,8898,5058,6698,679
Programmes26273032323333353637363637343636364040404043
TOTAL (GPC / T & S)Jan-98Feb-98Mar-98Apr-98May-98Jun-98Jul-98Aug-98Sep-98Oct-98Nov-98Dec-98Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03
Total SpendMonthly112,000129,000138,848193,275218,103292,787302,996232,576291,432397,686437,120496,148496,081732,041978,1831,080,4031,328,7411,509,8641,841,5132,051,5852,037,9402,392,4452,615,7902,670,0002,229,2273,394,2743,690,0003,548,7673,508,2614,310,4564,648,4854,669,8095,519,1556,316,1786,373,1136,078,6066,089,0918,833,9169,467,9938,656,1838,509,1169,082,45411,057,12710,407,74311,007,07412,335,48013,679,58013,518,47511,118,90616,279,28018,649,01316,489,57915,770,23015,000,75617,277,36016,512,19916,961,27820,676,81223,055,52821,526,67518,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,708
Year to Date112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,971496,0811,228,1222,206,3053,286,7084,615,4496,125,3137,966,82610,018,41112,056,35114,448,79617,064,58619,734,5862,229,2275,623,5019,313,50112,862,26816,370,52920,680,98525,329,47029,999,27935,518,43441,834,61248,207,72554,286,3316,089,09114,923,00724,391,00033,047,18341,556,29950,638,75361,695,88072,103,62383,110,69795,446,177109,125,757122,644,23211,118,90627,398,18646,047,19962,536,77878,307,00893,307,764110,585,124127,097,323144,058,601164,735,413187,790,941209,317,61618,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,002
Cumulative Grand Total112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,9713,738,0524,470,0935,448,2766,528,6797,857,4209,367,28411,208,79713,260,38215,298,32217,690,76720,306,55722,976,55725,205,78428,600,05832,290,05835,838,82539,347,08643,657,54248,306,02752,975,83658,494,99164,811,16971,184,28277,262,88882,017,40290,851,318100,319,311103,975,494109,786,926126,567,228137,624,355148,032,188159,039,262171,374,742185,054,322198,572,797209,691,703225,970,983244,619,996261,109,575276,879,805291,880,561309,157,921325,670,120342,631,398363,308,210386,363,738407,890,413426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,415
Total TransactionsMonthly6088089931,4631,8602,4222,8162,6402,7293,5134,0234,5854,6806,4738,40210,04712,61613,88215,69915,92816,11618,93521,02622,08018,14225,55027,00028,39330,19338,11439,39537,17241,76049,02150,11445,37942,26761,20362,32360,17857,94863,14976,91372,55571,90379,21390,62588,00269,79498,00098,30795,95999,44296,447108,856103,813109,232126,636149,596133,242108,254156,567149,789142,237132,798151,846152,180
Year to Date6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,4604,68011,15319,55529,60242,21856,10071,79987,727103,843122,778143,804165,884184,026209,576236,576264,969295,162333,276372,671409,843451,603500,624550,738596,11742,267103,470165,793225,971283,919347,068423,981496,536568,439647,652738,277826,27969,794167,794266,101362,060461,502557,949666,805770,618879,8501,006,4861,156,0821,289,324108,254264,821414,610556,847689,645841,491993,671
Cumulative Grand Total6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,46033,14039,61348,01558,06270,67884,560100,259116,187132,303151,238172,264194,344212,486238,036265,036293,429323,622361,736401,131438,303480,063529,084579,198624,577666,844728,047790,370850,548908,496971,6451,048,5581,121,1131,193,0161,272,2291,362,8541,450,8561,520,6501,618,6501,716,9571,812,9161,912,3582,008,8052,117,6612,221,4742,330,7062,457,3422,606,9382,740,1802,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,851
Total SavingsMonthly17,02422,62427,80440,96452,08067,81678,84873,92076,41298,364112,644128,380131,040181,244235,256281,316353,248388,696439,572445,984451,248530,180588,728618,240507,976715,400756,000795,004845,4041,067,1921,103,0601,040,8161,169,2801,372,5881,403,1921,270,6121,183,4761,713,6841,745,0441,684,9841,622,5441,768,1722,153,5642,031,5402,013,2842,217,9642,537,5002,464,0561,954,2322,744,0002,752,5962,686,8522,784,3762,700,5163,047,9682,906,7643,058,4963,545,8084,188,6883,730,7763,031,1124,383,8764,194,0923,982,6363,718,3444,251,6884,261,040
Year to Date1,183,4762,897,1604,642,2046,327,1887,949,7329,717,90411,871,46813,903,00815,916,29218,134,25620,671,75623,135,8121,954,2324,698,2327,450,82810,137,68012,922,05615,622,57218,670,54021,577,30424,635,80028,181,60832,370,29636,101,0723,031,1127,414,98811,609,08015,591,71619,310,06023,561,74827,822,788
Cumulative Grand Total17,02439,64867,452108,416160,496228,312307,160381,080457,492555,856668,500796,880927,9201,109,1641,344,4201,625,7361,978,9842,367,6802,807,2523,253,2363,704,4844,234,6644,823,3925,441,6325,949,6086,665,0087,421,0088,216,0129,061,41610,128,60811,231,66812,272,48413,441,76414,814,35216,217,54417,488,15618,671,63220,385,31622,130,36023,815,34425,437,88827,206,06029,359,62431,391,16433,404,44835,622,41238,159,91240,623,96842,578,20045,322,20048,074,79650,761,64853,546,02456,246,54059,294,50862,201,27265,259,76868,805,57672,994,26476,725,04079,756,15284,140,02888,334,12092,316,75696,035,100100,286,788104,547,828
Total CardsCards4775075306757779019521,0001,2471,4011,5831,8723,0623,4004,1244,5094,7775,1775,3835,6476,3477,1327,4677,0327,6127,9748,8009,3269,80110,77211,04211,54013,57913,80712,84613,56315,99316,49917,27417,73217,74718,95423,15523,94924,80325,31727,53027,70828,02228,66329,48131,91733,70934,58335,31435,73436,30036,67738,39639,05739,75540,38041,10740,87941,41541,94041,963
Stats for 2003
Summary of Stats for 2003
Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0
GPC Transactions 200391,722133,294126,539118,915113,426126,964127,71500000
Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
Cumulative Grand Spend376,926,145402,714,994429,168,239454,135,810473,568,825495,573,889517,410,6670.00.00.00.00.0
2003 Year To Date - Savings3,031,1127,414,98811,609,08015,591,71619,310,06023,561,74827,822,7880.00.00.00.00.0
Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
GPC & T&S Spend18,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,7080.00.00.00.00.0
GPC & T&S YTD18,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,0020.00.00.00.00.0
GPC & T&S Cumulative426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,4150.00.00.00.00.0
GPC & T&S Transactions108,254156,567149,789142,237132,798151,846152,1800.00.00.00.00.0
GPC & T&S YTD Transactions108,254264,821414,610556,847689,645841,491993,6710.00.00.00.00.0
GPC & T&S Cumulative Transactions2,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,8510.00.00.00.00.0
&A
&C&P
Stats for 2003
1693345391722
25788849133294
26453245126539
24967571118915
19433015113426
22005064126964
21836778127715
00
00
00
00
00
&A
Page &P
GPC Spend
GPC Transactions 2003
Month
Spend
Transactions
2003 GPC Spend & Transactions
Q1Info 98-03
18681361108254
28382808156567
29046918149789
27910725142237
21748242132798
24976240151846
24613708152180
00
00
00
00
00
&A
Page &P
GPC & T&S Spend
GPC & T&S Transactions
Q2 Info 98-03
00
00
00
00
00
00
00
00
00
00
00
00
&A
Page &P
GPC & T&S YTD
GPC & T&S Cumulative
Month
Year to Date Spend
Cumulative Spend
GPC Year To Date & Cumulative Spend
Chart3
00
00
00
00
00
00
00
00
00
00
00
00
&A
Page &P
Cumulative Grand Spend
2003 Year To Date - Savings
Cumulative
2003 Year To Date
Cumulative Grand Spend & 2003 Year To Date Comparison
Sheet1
Comparison of Q1 information (Jan-Mar) 1998 - 2003
199819992000200120022003% Change
Total Spend379,8482,206,3059,313,50124,391,00046,459,42276,111,087190%
Total transactions2,40919,55570,692165,793266,101414,610161%
Total no of cards5304,1248,80017,27429,48141,107170%
&A
&C&P
Sheet1
3798482409
220630519555
931350170692
24391000165793
46459422266101
76111087414610
&A
Page &P
Total Spend
Total transactions
Q1 Year
Spend
Transactions
Q1 Comparison of Total Spend & Transactions
Q3 Info 98-03
Comparison of Q2 information (Apr-Jun) 1998 - 2003
199819992000200120022003% Change
Total Spend827,0045,931,03814,291,03926,247,75347,260,56574,635,207180%
Total transactions8,18547,743113,877181,275291,848426,881161%
Total no of cards1,2476,34711,98418,95434,58341,940182%
&A
&C&P
Q3 Info 98-03
00
00
00
00
00
&A
Page &P
Total Spend
Total transactions
Q2 Year
Spend
Transactions
Q2 Comparison of Total Spend & Transactions
Q4 Info 98-03
111189061868136169794108254
162792802838280898000156567
186490132904691898307149789
164895792791072595959142237
157702302174824299442132798
150007562497624096447151846
1727736024613708108856152180
1651219901038130
1696127801092320
&A
Page &P
Spend 2002
Spend 2003
Transactions 2002
Transactions 2003
Month
Spend
Transactions
Growth Statistics Jan '02 to Sep '03
Qtrly Spend & Graph
Figures for 2003JanFebMarAprMayJunJulAugSepTotal to date
Spend 200211,118,90616,279,28018,649,01316,489,57915,770,23015,000,75617,277,36016,512,19916,961,278144,058,601
Spend 200318,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,70800175,360,002
Transactions 200269,79498,00098,30795,95999,44296,447108,856103,813109,232879,850
Transactions 2003108,254156,567149,789142,237132,798151,846152,18000993,671
Cards 200228,02228,66329,48131,91733,70934,58335,31435,73436,300
Cards 200339755403804110740879414154194041963
Qtrly Spend & Graph
1693345391722
25788849133294
26453245126539
24967571118915
19433015113426
22005064126964
21836778127715
00
00
00
00
00
&A
Page &P
GPC Spend 2003
GPC Transactions 2003
Month
Spend
Transactions
2003 Monthly Spend & Transactions
2003
1111890669794
1627928098000
1864901398307
1648957995959
1577023099442
1500075696447
17277360108856
16512199103813
16961278109232
20676812126636
23055528149596
21526675133242
GPC Spend 2002
GPC Transactions 2002
Month
Spend
Transactions
2003 Monthly Spend & Transactions
2003 figures
1111890618681361
1627928028382808
1864901329046918
1648957927910725
1577023021748242
1500075624976240
1727736024613708
165121990
169612780
206768120
230555280
215266750
GPC Spend 2002
GPC Spend 2003
Since OGC Takeover
Comparison of Q3 information (Jul-Sep) 1998 - 2000
19981999200020012002% Change
Total Spend827,0045,931,03814,291,03932,471,94450,750,837156%
Total transactions8,18547,743113,877168,939321,901191%
Total no of cards1,2476,34711,98418,60636,300195%
&A
&C&P
Since OGC Takeover
8270048185
593103847743
14291039113877
32471944168939
50750837321901
&A
Page &P
Total Spend
Total transactions
Q3 Years 1998 - 2002
Spend
Transactions
Q3 Comparison of Total Spend & Transactions
Mth June Comparison
Comparison of Q4 information (Oct-Dec) 1998 - 2000
19981999200020012002% Change
Total Spend1,330,9547,678,23517,961,33239,533,53565,259,01565%
Total transactions12,12162,041144,514257,840409,47463%
Total no of cards1,8727,03213,56327,70839,05771%
&A
&C&P
Mth June Comparison
133095412121
767823562041
17961332144514
39533535257840
65259015409474
&A
Page &P
Total Spend
Total transactions
Q4 Year
Spend
Transactions
Q4 Comparison of Total Spend & Transactions
Mth August Comparison
MonthMar-98Jun-98Sep-98Dec-98Mar-99Jun-99Sep-99Dec-99Mar-00Jun-00Sep-00Dec-00Mar-01Jun-01Sep-01Dec-01Mar-02Jun-02Sep-02Dec-02Mar-03Apr-03May-03Jun-03Jul-03
Monthly Spend138,848292,787291,432496,148978,1831,509,8642,037,9402,670,0003,690,0004,310,4564,972,7456,078,6068,649,6129,082,45411,007,07413,518,47519,061,23615,000,75616,961,27821,526,67529,046,91827,910,72521,748,24224,976,24024,613,708
Cumulative Spend379,8481,084,0131,911,0173,241,9715,448,2769,367,28415,298,32222,976,55732,297,06043,671,69957,966,97975,928,58198,402,303126,567,228159,039,262198,572,797217,634,033291,880,561342,631,398407,890,413484,001,500511,912,225533,660,467558,636,707583,250,415
&A
&C&P
Mth August Comparison
138848379848
2927871084013
2914321911017
4961483241971
9781835448276
15098649367284
203794015298322
267000022976557
369000032297060
431045643671699
497274557966979
607860675928581
864961298402303
9082454126567228
11007074159039262
13518475198572797
19061236217634033
15000756291880561
16961278342631398
21526675407890413
29046918484001500
&CGovernment Procurement Card - Quaterly Spend & Graph
Page &P
Monthly Spend
Cumulative Spend
Monthly Spend
Cumulative Spend
Government Procurement Card Cumulative & Quarterly Spend
T&S Mthly Spend
Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total to date
GPC Spend 200316,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0157,417,975
GPC Transactions 200391,722133,294126,539118,915113,426126,964127,7150.00.00.00.00.0838,575
Figures for 2002Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
GPC Spend 200211,118,90616,279,28018,649,01316,489,57915,770,23015,000,75617,277,36016,512,19916,961,27820,676,81223,055,52821,526,675
GPC Transactions 2002697949800098307959599944296447108856103813109232126636149596133,242
Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total to dateTarget for year
GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0157,417,975300,000,000
Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target Dec-03
Figures for 2003 YTD16,933,45342,722,30269,175,54794,143,118113,576,133135,581,197157,417,975300,000,000
Target300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000
&A
&C&P
T&S Mthly Spend
1693345391722
25788849133294
26453245126539
24967571118915
19433015113426
22005064126964
21836778127715
00
00
00
00
00
&A
Page &P
GPC Spend 2003
GPC Transactions 2003
Month
Spend
Transactions
2003 Monthly Spend & Transactions
1111890669794
1627928098000
1864901398307
1648957995959
1577023099442
1500075696447
17277360108856
16512199103813
16961278109232
20676812126636
23055528149596
21526675133242
GPC Spend 2002
GPC Transactions 2002
Month
Spend
Transactions
2003 Monthly Spend & Transactions
Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0
GPC Transactions 200191,722133,294126,539118,915113,426126,964127,7150.00.00.00.00.0
Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total To DateTarget for Year
GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0157,417,975150,000,000
Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target Dec-03
Cumulative376,926,145402,714,994429,168,239454,135,810473,568,825495,573,889517,410,6670.00.00.00.00.0150,000,000
2003 Year To Date16,933,45342,722,30269,175,54794,143,118113,576,133135,581,197157,417,975157,417,975157,417,975157,417,975157,417,975157,417,975
Target150,000,000150,000,000150,000,000150,000,000150,000,000.00150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000
Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total To DateTarget for Year
GPC & T&S Spend (Total)18,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,7080.00.00.00.00.0175,360,002150,000,000
Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target Dec-03
Cumulative Grand Total GPC & T&S426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,4150.00.00.00.00.0150,000,000
2003 Year To Date18,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,0020.00.00.00.00.0
Target150,000,000150,000,000150,000,000150,000,000150,000,000.00150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000
MonthJan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03
Monthly Transactions108,254156,567149,789142,237132,798151,846152,1800.00.00.00.00.0
Year to Date108,254264,821414,610556,847689,645841,491993,6710.00.00.00.00.0
Total for Programme2,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,8510.00.00.00.00.0
Cards39,75540,38041,10740,87941,41541,94041,9630.00.00.00.00.0
Programmes1771781861881951971990.00.00.00.00.0
Monthly Savings3,031,1124,383,8764,194,0923,982,6363,718,3444,251,6884,261,0400.00.00.00.00.0
Cumulative Grand Total (Savings)79,756,15284,140,02888,334,12092,316,75696,035,100100,286,788104,547,8280.00.00.00.00.0
Average Mthly Department Saving17,12524,62922,54921,18419,06821,58221,4120.00.00.00.00.0
Average Department Saving450,600472,697474,915491,047492,488509,070525,3660.00.00.00.00.0
Potential Department Saving9,090,909.09
&A
&C&P
1693345391722
25788849133294
26453245126539
24967571118915
19433015113426
22005064126964
21836778127715
00
00
00
00
00
&A
Page &P
GPC Spend GPC Transactions 2001
GPC Transactions 2001
Month
Spend
Transactions
2003 Monthly Spend & Transactions
1693345337692614516933453
4272230240271499425788849
6917554742916823926453245
9414311845413581024967571
11357613347356882519433015
13558119749557388922005064
15741797551741066721836778
15741797500
15741797500
15741797500
15741797500
15741797500
&C2001
Page &P
2003 Year To Date
Cumulative
GPC Spend
222922718681361
562350147064169
931350176111087
12862268104021812
16370529125770054
20680985150746294
25329470175360002
299992790
355184340
418346120
482077250
542863310
2003 Year To Date
Year To Date Spend
2003 Cumulative Spend
GPC Spend since OGC took over August 2000
MonthAug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target
Spend4,669,8094,972,7455,509,6136,373,1136,078,6066,089,0918,833,9169,467,9938,656,1838,509,1169,082,45411,057,12710,407,74311,007,07412,335,48013,679,58013,518,47511,118,90616,279,28029,046,91816,489,57915,770,23015,000,75617,277,36016,512,19916,961,27820,676,81223,055,52821,526,67518,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,7080.00.00.00.00.0-
Year to Date29,999,27934,972,02440,481,63746,854,75052,933,3566,089,09114,923,00724,391,00033,047,18338,246,34250,638,75361,695,88072,103,71383,110,78795,446,267109,125,847122,644,32211,118,90616,279,28076,111,08762,536,77878,307,00893,307,764110,585,124127,097,323144,058,601164,735,413187,790,941209,317,61618,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,0020.00.00.00.00.0150,000,000
Total for Programme52,994,23457,966,97963,476,59269,849,70575,928,58182,017,40290,851,318100,319,311103,975,494109,786,926126,567,228137,624,355148,032,188159,039,262171,374,742185,054,322198,572,797209,691,703225,970,983484,001,500261,109,575276,879,805291,880,561309,157,921325,670,120342,631,398363,308,210386,363,738407,890,413426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,4150.00.00.00.00.0300,000,000
Trans37,17237,31042,45350,11445,37938,98155,54255,65953,47451,23056,11356,92156,00356,01560,48070,62767,69369,79498,00098,30795,95999,44296,447108,856103,813109,232126,636149,596133,242108,254156,567149,789142,237132,798151,846152,1800.00.00.00.00.0-
Year to Date243,304280,614323,067373,181418,56038,98194,523150,182203,656254,886310,999367,920423,923479,938540,418611,045678,73869,79498,000266,101362,060461,502557,949666,805770,618879,8501,006,4861,156,0821,289,324108,254264,821414,610556,847689,645841,491993,6710.00.00.00.00.0-
Total for Programme437,027474,337516,790566,904612,283651,265706,806762,465815,939867,169923,282980,2031,036,2061,092,2211,152,7011,223,3281,295,3521,362,0911,460,0911,558,3981,812,9161,912,3582,008,8052,117,6612,221,4742,330,7062,457,3422,606,9382,740,1802,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,8510.00.00.00.00.02,500,000
Savings12,236,75613,281,43614,470,12015,873,31217,143,92418,235,42019,790,56821,349,02022,846,29224,280,73225,851,89627,445,68429,013,76830,582,18832,275,62834,253,18436,269,85638,138,54840,882,54848,074,79650,761,64853,546,02456,246,54059,294,50862,201,27265,259,76868,805,57672,994,26476,725,04079,756,15284,140,02888,334,12092,316,75696,035,100100,286,788104,547,8280.00.00.00.00.070,000,000
Cards11,54011,98412,18312,84613,56315,99316,49917,27417,73217,74718,95423,15523,15524,00924,52326,73627,70828,02228,66329,48131,91733,70934,58335,31435,73436,30036,67738,39639,05739,75540,38041,10740,87941,41541,94041,9630.00.00.00.00.0-
Programmes1121151151181211251351431391441481521481551491581591581581641651701721751731731751751761771781861881951971990.00.00.00.00.0-
&A
&C&P
4669809
4972745
5509613
6373113
6078606
6089091
8833916
9467993
8656183
8509116
9082454
11057127
10407743
11007074
12335480
13679580
13518475
11118906
16279280
29046918
16489579
15770230
15000756
17277360
16512199
16961278
Spend
Month
Spend
Monthly Spend Since OGC tookover
29999279
34972024
40481637
46854750
52933356
Year To Date Cumulative Total
Month
Spend
2000 Year to DateSpend Since OGC Tookover
0
0
0
0
0
0
0
0
0
0
0
0
Month
Spend
2001 Year To Date Spend
52994234
57966979
63476592
69849705
75928581
82017402
90851318
100319311
103975494
109786926
126567228
137624355
148032188
159039262
171374742
185054322
198572797
209691703
225970983
484001500
261109575
276879805
291880561
309157921
325670120
342631398
Month
Cumulative Spend
Cumulative Spend From When OGC Tookover
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Month
Transactions
Monthly Transactions Since OGC Tookover
243304
280614
323067
373181
418560
Transactions
Month
Transactions
2000 Year to Date Transactions Since OGC Tookover
0
0
0
0
0
0
0
0
0
0
0
0
Month
Transactions
2001 Year to Date Transactions
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Month
Cumulative Transactions
Cumulative Transactions since OGC Tookover
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Month
Savings
Savings Since OGC Tookover
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Month
Cards
Card Totals Since OGC Tookover
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
#
Month
Programmes
Total Number of Programmes Since OGC Tookover
MonthJun-98Jun-99Jun-00Jun-01Jun-02
Spend292,7871,509,8644,310,4569,082,45415,000,756
% Annual Spend9%7.65%7.90%7.40%11.80%
% Programme Spend9%6.57%9.80%7.20%5.14%
292787
1509864
4310456
9082454
15000756
Year
Spend
GPC Spend comparison - June 1998 - June 2002
MonthAug-98Aug-99Aug-00Aug-01Aug-02
Spend232,5762,051,5854,669,80910,407,74316,512,199
% Annual Spend7.12%10.40%8.60%8.49%13.00%
% Programme Spend7.12%8.92%6.04%5.24%5.07%
232576
2051585
4669809
10407743
16512199
Year
Spend
GPC Spend comparison -August 1998 - August 2002
403485
695142
818381
823255
824590
864015
2455028
2032639
1951073
2300420
2455792
2493945
1637322
2253128
2686629
2623871
2512508
2717853
2796913
2332190
2199568
T&S
Travel & Subsistence Monthly Spend
VALUE FOR MONEY*
GPC 1 Key Aims & AchievementsAim:To achieve 430m spend by December 2002Achieved:580m cumulative spendAim:To process 2.5m transactions by December 2002, resulting in a process efficiency saving of 100mAchieved:110m in process efficiency savings
VALUE FOR MONEY*
The New GPC 2 ContractEU compliant competitive tender resulted in VISA and a consortium of 7 issuing banks being awarded new GPC ContractNew GPC Contract commenced February03 for 5 years, with option to extend for further 2 yearsNow open to wider Public SectorTarget spend - 6.4b2.1b in Central Civil Government4.3b in the Wider Public Sector
VALUE FOR MONEY*
Why the Success? Strategic BenefitsAlthough Non-Mandated it has been successful because:Link to the Modernising Government AgendaGives financial transparency and accountabilityHelps to meet the Prompt Payment InitiativeHelps to adhere to Late Payment LegislationMost cost effective e-payment methodDrives out inefficiencyEndorsed by the Treasury Chief MinisterSaves cost
VALUE FOR MONEY*
Environmentally Friendly Every transaction saves at least 6 pieces of A4 paper 11,500 pieces of paper = 1 tree
WHICH MEANS THATOver 2,000 trees saved in UK to date
Slide 1 - TitleSlide 2 - Notes to be addedSlide 3 - Notes need to be addedSlide 4 - Notes need to be addedSlide 5 - Notes need to be addedSlide 7 - Notes need to be addedSLIDE 8 WHO WE AREBULLET 1 EXECUTIVE AGENCYWe are an executive agency and a trading fund, set up to deliver value-for-money gains across the wider public sector, of the Office of Government Commerce in Her Majestys UK Treasury. We were formed in 2000 by joining together various buying and procurement departments from across UK government.BULLET 2 AGENCY ROLEOur role is to set up legally compliment framework contracts for the use of the wider public sector to ensure that value for money savings can be achieved by, among other things, aggregating demand.BULLET 3 TURNOVERWe are one of the largest procurement organisations in the UK both in the public and private sectors.BULLET 4 SAVINGSOne of our key performance indicators is the level of savings that we achieve.NEW SLIDE Slide 9 - Notes need to be addedSlide 10 - Notes need to be addedSLIDE 12 GPC HISTORY & SCOPEBULLET 1 INITIAL LAUNCHThe GPC programme was a HM Treasury initiative launched in October 1997 as a response to the results of a National Audit Office (NAO) enquiry into the purchase of high volume low value items.It found that the process costs in purchasing such as, requisitioning, obtaining quotes, issuing purchase orders, etc. far outweighed the value of the items being purchased. Indeed one particular item in question stood out. It was a padlock costing 98 pence ie less than one English pound to buy yet it was calculated that existing processes cost some 73.50 (Euro Conversion ??) to buy!! BULLET 2 CCG DEPARTMENTS A competitive tendering exercise resulted in HM Treasury awarding an initial contract to VISA along with a consortium of its UK issuing banks to run the card for Central Government only. The intention was to replace the chequebook and petty cash facilities with the GPC. BULLET 3 - VISA PURCHASING CARDThe original GPC was a branded Visa Purchasing Card and was provided to selected members of staff only to buy low value and/or routinely purchased goods and services directly from suppliers. BULLET 4 - METHOD OF PAYING FOR LOW VALUE GOODS AND SERVICESThe GPC was designed to reduce processing costs through a more streamlined purchasing procedure and to offer greater purchasing controls. Management Information reporting helped managers monitor and evaluate the purchasing activity of each cardholder by supplier, merchant category and price.CONTINUEDBULLET 5 - VISA CORPORATE CARD TRAVEL AND SUBSISTENCEInitial customer feedback highlighted the need to provide a Travel & Subsistence facility. HM Treasury (supported by National Audit Office) agreed that there was a need for a separate T&S facility particularly as there was a requirement to account separately for this type of expenditure. As a result the T&S card was launched under the same Master Agreement with Visa. BULLET 6 CONTRACT LETIt took six years from original launch to the letting of the original GPC 1 contract in January 2003.BULLET 7 GPC 2A second contract was let in February 2003 ensuring continuation of service.NEW SLIDE SLIDE 14 - SAVINGSAs I have already stated one of our key performance indicators is the level of savings that each of our brands manages to declare. Here we look at the savings for the GPC 1 program.BULLET 1 - PROCESS EFFICIENCY SAVINGS = TIME/ENVIRONMENT/MONETARYThe GPC offers departmental organisations the opportunity to free up resources, save process costs and concentrate on the value-adding elements of their work. BULLET 2 - KPMG ANALYSIS 1997As an integral part of the initial research into the possibilities of a GPC, an independent study was commissioned by HM Treasury to look at the potential savings to the Government should they decide to introduce it. The study was carried out by KPMG.BULLET 3 - REVIEW OF ALL CENTRAL GOVERNMENT DEPARTMENTSThe KPMG study looked at 28 central civil government departments and concluded that a department could potentially save over 50%, in process costs, for each transaction. This conclusion estimated that for every transaction using the GPC the public sector would save 28 on process efficiency savings. BULLET 4 - NAO ENDORSED SAVINGS FIGUREThese findings were presented to the UK National Audit Office who endorsed the findings as was re-iterated in the report Modernising Government Report published in 1999. These findings gave the green light to OGC to set about letting an initial contract for the first GPC program.NEW SLIDE Slide 19 Notes need to be addedSLIDE 17 GROWTH STATISTICS (based on s Sterling)As illustrated previously, the original Government Procurement Card programme was a tremendous success and I am please to tell you that the programme is still seeing considerable growth in spend and transactions therefore increasing the savings to the public purse. The graph illustrates the level of growth seen over the past 5 years.In August this year the programme spend passed the 600 million mark and we are expecting an annual increase of 80%. For the past 6 months the programme has seen an average spend of 21 million a month.The savings figure has also passed the 100 million and continues to grow. Every month we are seeing on average 145,000 transactions - each one saving the taxpayer 28.With the programme being opened up to the Wider Public Sector, there is no reason why we will not continue to see this type of growth for the immediate future.NEW SLIDE
SLIDE 5 KEY AIMS & ACHIEVEMENTSBULLET 1 INITIAL SPEND TARGETThe initial target was to achieve 429m cumulative spend by December 2002. It was in fact achieved four months early in July 2002BULLET 2 INITIAL TRANSACTION TARGETThe initial target to process 2.5 million transactions by December 2002 was achieved on time. This resulted in a process efficiency saving of 110 million based on the savings figure of 28 per transaction processed using the GPC.These targets were set in 1997 when no actual information was known. When the targets were set they were perceived to be extremely ambitious by the card industry and challenging. We were very proud that all were achieved and that targets smashed!.NEW SLIDE SLIDE 15 THE NEW GPC 2 CONTRACTBULLET 1 OJEU PROCESSAfter a competitive tender Visa and a consortium of seven issuing banks were awarded the contract for the second GPC programme. The increase to seven issuing banks has meant that we have enhanced competition for the wider public sector and provided customers with a real choice.BULLET 2 START DATEThe Contract duration is for 5 years plus up to a possible further 2 years extension. It is envisaged that during this contracted time Card Issuers will continue to develop the product with the reassurance of a secure contract for a guaranteed period. BULLET 3 WIDER PUBLIC SECTORDue to the success of the first programme we were receiving requests from UK local authorities to be included into the programme. As a result we extended GPC 2 into the wider public sector thus allowing greater leverage and broadening the scope of efficiencies gained. BULLET 4 TARGET SPENDThe conservative estimate is that the potential spend for GPC 2 is 2.1b for Central Civil Government and 4.3b for the wider public sector. NEW SLIDE
SLIDE 18 WHY THE SUCCESS? STRATEGIC BENEFITSWhilst there is no mandate requiring the public sector to use GPC, the following areas are all designed to promote the fact that the GPC should be the first choice ordering payment tool for all lower value procurement.BULLET 1 - LINK TO THE MODERNISING GOVERNMENT AGENDAThe White Paper Modernising Government emphasised the importance of taxpayers achieving best value from public money. In order to achieve this a programme to modernise the way department and agencies carry out their business was set out.Improving the efficiency and cost effectiveness of government procurement is an important part of the Modernising Government agenda. The GPC programme can assist the public sector organisations to achieve this modernisation.BULLET 2 - GIVES FINANCIAL TRANSPARENCY AND ACCOUNTABILITYAn initial area of concern was the use of a payment card within government accounting rules. To ensure that the GPC would be supported within the government structure, the Treasury Officer of Accounts (TAO) and the National Audit Office were briefed on the purpose and benefits of the GPC. Both organisations endorsed a generic guidance note on the use of procurement cards and this guidance was issued at the launch of the initial GPC thus overcoming any fears that Finance Directors may have had. BULLET 3 - PROMPT PAYMENT INITIATIVE The GPC is also helping the UK Government to pays its bills on time. Smaller companies, in particular, appreciate the benefit of prompt payment on their cash flow and any supplier, no matter the size, benefits from receiving payment within 2-4 days instead of what might be up to 28 days. This in turn assists with our own prompt payment target. BULLET 4 - LATE PAYMENT LEGISLATIONThe UK Late Payment Legislation also puts pressure on organisations to make payments by specific timescales. If these are not adhered to the supplier can fine the department for interest on the outstanding sum. Again, the GPC is helping organisations to negate this legislation through the prompt payment available with the GPC.BULLET 5 - MOST COST EFFECTIVE E-PAYMENT METHODProcurement cards have an important role to play in the future. Electronic commerce has become a major part of business to business purchasing and, whether this is over the Internet or through controlled channels to preferred suppliers, there is still the need for a payments process.Many GPC using organisations are embedding the card with their suppliers meaning that orders can be made electronically in a cardholder not present environment. The use of Virtual cards is expected to grow over the coming years as users share knowledge and best practices.One thing is clear, the GPC is the ideal, low-cost payment mechanism in an electronic environment and is particularly suited for use in Electronic Auctions.BULLET 6 - DRIVES OUT INEFFICIENCYSince the launch of the Government Procurement Card it has been changing the way in which government purchases lower value goods and services. By building on Best Practice in the private sector, by eradicating bureaucratic requisition and payment processes and by facilitating effective collaboration across organisations. Managing change is a responsibility of all of us if we are to improve the efficiency of public procurement and achieve real value for the taxpayer. This means constantly reviewing what we do, and how we do it. Bureaucratic payment and requisition methods are no exception. We believe that the GPC is the perfect enabler to achieve this. BULLET 7 - ENDORSED BY THE TREASURY CHIEF MINISTERA powerful message has also been emanating from HM Treasury. The Chief Secretary to the Treasury PAUSE FOR VIDEO CLIP, `Paul Boateng is on record as saying..Tools like the Government Procurement Card have made it easier for buyers to administer speed up orders and save on bureaucracy and paper. Since February, this card, managed in partnership with Visa, has been made available to buyers across the wider public sector, including local government.NEW SLIDE
SLIDE 20 ENVIRONMENTALLY FRIENDLY3,875,106 Transactions multiplied by 6 = 23,250,636 million pieces of paperDivided by 11,500 = 2021 TreesNEW SLIDE