NZ Government IT procurement in for shake up

Computer manufacturers may be the first to lose out from government plans to radically shake up procurement contracts worth $30 billion a year.

Commerce Minister Simon Power announced this month that the Government would establish "centres of expertise" to buy products on behalf of all government agencies.

Computers, vehicles and electricity bills are among the items of expenditure on which the Government believes it could easily achieve savings.

The Economic Development Ministry says the Government spends $71 million on new PCs each year. It estimates an "all-of-government" contract would save 5 per cent to 10 per cent.

The Cabinet paper said consultations would take place to identify a lead agency that would act as a centre of expertise in establishing an all-of-government computer hardware contract.

A ministry spokeswoman says an agency has expressed an interest in "leading work in this area" and an announcement is likely next month.

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