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Online auction slashes gov't laptop costs in half
And cuts PC prices by 20 per cent...

By Andy McCue

Published: Friday 22 August 2008

The government's buying body has slashed the cost of procuring laptops and desktop PCs using online reverse auctions.

The e-auction, facilitated by the Office of Government Commerce (OGC) and sponsored by OGCbuying.solutions, was for 5,000 laptops and 5,000 PCs and achieved savings of 50 per cent on the laptops and 20 per cent on the PCs.

The reverse auctions work by forcing suppliers to bid decreasing prices for the contract offered, in response to competitor's bids. Only the buyer can see who is offering each price.

Terry Love, senior category manager responsible for client devices at OGCbuying.solutions, said in a statement: "To say I'm pleased with the results is an understatement. We were hoping for prices of up to 40 per cent lower than the current benchmark. Achieving around 50 per cent savings for the laptops is a phenomenal result. This will really pave the way in helping our customers meet their savings targets."

Chris Chettle, ICT commercial delivery manager of OGC, added in a statement: "We have always been convinced of the potential for savings through collaboration and e-auctions, and are really pleased with these latest results. The nine e-auctions we have undertaken so far have realised total savings of 35 per cent - which equates to £33.3m saved overall."

The laptops and PCs are available to all public sector customers and there will also be a range of upgrades available, which will be offered at discount prices.

The winner of the laptop and PC auction was IT supplier Insight.