Public sector bodies must work together more in order to cut the public sector’s £220bn yearly spend on procurement, the National Audit Office and the Audit Commission have warned today.

In their Review of Collaborative Procurement Across the Public Sector, which was published this morning, the two watchdogs say the public procurement landscape is fragmented and needs central governance.

The report says: “There are nearly 50 professional buying organisations, as well as individual public bodies running commercial and procurement functions. The implications for value for money are clear.  Public bodies are incurring unnecessary administration costs by duplicating procurement activity.”

In 2007, the Office of Government Commerce launched its Collaborative Procurement Programme, which is managing £18bn of public sector spending.

However, this figure is small compared with the £220bn of goods and services that the public sector procures every year.

Amyas Morse, head of the National Audit Office, said: “ Given the potential to make significant savings, it is vital that there is much better coordination of procurement activities to ensure value for money is secured across the public sector.”

To read the full report click here: Collaborative Procurement Report

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