The Financial Times today published a letter from Surrey County Council’s Cabinet Member for Change and Efficiency Denise Le Gal about savings made by the authority through driving harder bargains on contracts. Her letter is below.
Sir, Andrew Hooke may like to know that specialist outsourcing professionals were not called in to help Surrey county council save £56m on contracts that also provide better service.
That’s the amount our procurement team has saved in the past two financial years by driving harder bargains.
Among the successes were a new road maintenance and improvement contract with May Gurney that saves £4.1m annually when compared with the previous deal and sees potholes fixed faster while a street light replacement scheme will save £12m over the 25-year lifespan of the agreement and provide huge environmental benefits.
Of course, there will always be times when external negotiating capability is required but I very much doubt that the private sector consultants Mr Hooke is so keen to champion would have got close to providing such value for money on those contracts.