Government's e-buying scheme takes next step

By ADAM GIFFORD

The Government has called for proposals for its whole of government electronic procurement project.

State Services Minister Trevor Mallard said Inland Revenue, Work and Income, the Fire Service, Treasury Department and Ministry of Fisheries would be involved in the initial pilot, which will run until next June.

"Then the Government will make a decision on whether to roll out e-procurement more widely," Mr Mallard said.

A State Services Commission study last year found departments spent about $1.252 million a year on goods and services.

This did not include capital spending and specialised goods such as military equipment.

"The Government is confident e-procurement can bring savings in those costs," Mr Mallard said.

"E-procurement is also part of the Government's wider aim of getting departments and agencies to work together more."

Project manager Greg Nicholls, from the SSC's e-government unit, said vendors had until October 9 to put in proposals, and one should be chosen by the end of November.

Mr Nicholls said there were savings to be made from syndicated procurement and process improvements.

While an earlier pilot involving Work and Income had "provided some learning", it was a clean slate for vendors.

In that pilot Oracle and iPlanet were chosen from a short list of five vendors, and were required at their own expense to put their software on a server to which DWI staff gained access over the internet.

Since that tender, consulting firm Accenture has bought Epylon, which makes a public sector-specific e-procurement system using the Ariba engine.

Accenture has established a dedicated unit in New Zealand to deliver e-procurement services and will be pushing hard for the business.

So will SupplyNet, which has just introduced the latest version of the Commerce One MarketSite e-commerce management system.

Also in the picture will be local player e:\\volution, which teamed with Westpac and Metiom for the DWI bid.