Procurement Scotland Collaborative Procurement Arrangement (CPA) for IT Hardware
In the second eAuction for IT hardware, suppliers were offered the opportunity to win cross-sectoral business in Scotland for a committed volume which, prior to the live auction, was in excess of 80,000 units of IT hardware equipment which includes desktop PCs, laptops and monitors.
While prices attained at the December 2008 eAuction are higher than those achieved in the previous year, it is important to consider the following points:
- In the first 6 months of this calendar year, the Pound had depreciated against the US Dollar by around 25%, with a similar depreciation against the Euro in the final quarter of 2008. This has led to around a 25% increase in IT hardware component costs. Although there has been some improvement in the Pound, this has not been reflected in manufacturer's pricing.
- Given the severe economic downturn, hardware component manufacturers in Asia have significantly reduced their factory capacity, leading to continuing upward pricing pressures.
- In the context of the turmoil in the financial markets, IT hardware manufacturers are now more focussed on profitability and taking a balanced approach to risk, rather than gaining market share.
- The standard monitor size has increased to 19" height adjustable compared with last year's 17" fixed height.
- The new range of products have improved specifications, increased energy efficiency and therefore are not "like for like" as you would expect. We have recently seen an increase in specification of both laptops, at no additional cost.
As a result of accessing this collaborative arrangement for IT hardware, public sector bodies can report non-cashable savings through removing the duplication of effort involved in the procurement of these goods. In addition, improvements in specification and increased energy efficiency also realise additional measurable business benefits.
Given the above factors, Procurement Scotland is confident that the current Arrangement still offers the best possible price available in the market at this time.
This CPA, which is subject to the terms of the OGCbs Catalist Framework Agreement, facilitates the contract between the Contracting Authority and the supplier; no further procurement action is required.
Unit prices achieved in the auction have been held for the duration of each product's lifespan and any Scottish Public Sector body can call-off from this arrangement. All equipment available is of the latest release with a full 15 month roadmap for desktops and monitors and 15 months for laptops.
You can access detailed content information, including pricing and ePS format catalogues, through our secure stakeholder site. To gain access, please contact either Jim Thomson or Lorraine Hook.