HMRC saves £21m with first centralised government procurement contract

The government has awarded its first centrally managed contract for print services at HMRC with outsourcing company Williams Lea. The deal is expected to save £21m, replacing 140 contracts with one.

The move is part of the government's drive to centralise procurement, as recommended by Philip Green in last year's spending review.

Speaking at an event for the government's top 20 procurement officials, Cabinet Office minister Francis Maude, said: "Collectively we have made a good start with the savings we have already delivered - but it is only the beginning. We need to challenge traditional procurement thinking and make a significant step-up in capability if we are to deliver on the challenges ahead of us."

John Collington, who was recently appointed as chief procurement officer, said the print contract is the first of a number of central deals being put in place over the next year. "It shows government departments are utilising the expertise within their teams to support our reform and delivering real change along with significant savings," he said.

Dave Thomas, HMRC commercial director said: "HMRC have been heading in this strategic direction for the last three years and the benefits of the contract align perfectly with the government procurement agenda."