CM could save Ireland EUR1.7bn

Technological transformation of the Irish government's procurement processes could result in the government shaving EUR1.7 billion off the total spend of more than EUR10 billion a year, reports Silicon Republic.

Declan Kearney, head of Irish technology company Supplierforce, which has won deals to deploy procurement transformation programmes across UK councils, says the Irish State needs to start its transformation with procurement.

According to Kearney, the problem with public procurement in Ireland is that there is little post-contract management where terms of contracts are tracked: “If a contract is not managed the business value of the deal is lost. We estimate that close to EUR1.7 billion a year is wasted this way in the Irish economy.”

Barack Obama's chosen candidate to lead government procurement has revealed plans to increase the workforce and drive contract management, states Supply Management.com.

The US president last month nominated Dan Gordon as the administrator for federal procurement policy at the Office of Management and Budget.

Priorities outlined by Gordon include helping deliver $40 billion procurement savings every year, which he says can be done through contract management and services.

The UK National Audit Office (NAO) warns £200 billion (R2.5 trillion) worth of UK public projects, including the 2012 Olympics, Crossrail and ID cards, are under threat of going over budget because government departments do not have the right skills, says HR Magazine.

It found the largest skills gaps were in contract management, managing advisers, risk identification and risk management.

The NAO found only 44% of civil servants charged with owning one of the Treasury's 'major projects' lacked sufficient commercial experience.