The Crown Commercial Service has helped 8 customers, including 5 local councils, save an average 62% on mobile voice and data services.
Many organisations routinely purchase the same mobile goods and services, as and when they need them. This creates the perception of being tied to a particular supplier. Varying contract end dates, as a result of purchasing individual mobile phones at different times, also create a barrier to switching suppliers. This is because potential savings can be reduced or lost due to early termination charges.
The Crown Commercial Service (CCS) aggregation team wanted to help customers break this cycle by providing a way to bring together their requirements and achieve savings that would not be reduced by the early termination of existing contracts.
The concept of running regular further competitions for multiple customers based on standard specifications is a tried and tested approach for CCS. Combined volumes help attract more interest from suppliers and, therefore, achieve better value for customers.
We run these projects as a fully managed service. Customers just need to complete a form to express their interest, provide details of their requirements before we go to market and sign a contract with the successful supplier.
Using the CCS Network Services agreement (RM1045), a standardised catalogue offer was used and the most economically advantageous offer in the market was obtained by taking into consideration both price and non-price factors, such as quality. The further competition was concluded with sealed bids.
Innovative contract terms were also used so that customers would be able to move their phone connections, as and when existing contracts expire, throughout the first 2 years of the contract.
Customers were also given a comparison tool so they could compare their current pricing versus the ceiling price before we went to market.
The project brought together the common mobile voice and data requirements of 8 customers - a total of nearly 6,000 connections.
It resulted in an average, indicative saving of 62% compared to the ceiling price. This is the equivalent of a saving of £405,000 for the customers who took part.
These results clearly demonstrate that by combining volumes and using a standard specification for a commodity product or service significant cost savings can quickly be realised.
Tony Deacy, Business & Commercial Manager, IT Services, Bath & North East Somerset Council commented:
“Many thanks for delivering this procurement on time, with the result that we had hoped for. It is fair to say that we were nervous going down the aggregation route for the first time, but we were very surprised how easy it was for us, and how competitive the end result was. It was far easier than if we had to develop all the business requirements ourselves, and I’m certain that we would not have received such a competitive price had we worked in isolation. The contract will deliver us fantastic savings that will contribute to protecting our frontline services. The team has done a great job in making the process as simple as possible and we look forward to identifying another aggregation opportunity in the future.”
We would like to hear from customers across the public sector who are interested in securing savings by combining their requirements with other organisations on a range of common goods and services including mobile services, IT hardware and other telephony services.
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