Office of Government Commerce - UKHUGH BARRETTChief Executive, OGCbuying.solutionsEU Procurement Learning LabFriday, 28 November 2003

VALUE FOR MONEY*

AgendaIntroduction to UK Public Sector PurchasingCross Public Sector deal with MicrosoftGovernment Procurement Card

VALUE FOR MONEY*

IntroductionSize of UK Public Sector Market PurchasesCCG (England) - 19bMinistry of Defence - 14bNational Health Service - 16bLocal Government - 37b

VALUE FOR MONEY*

Office of Government CommerceCreated in April 2000Office of HM TreasurySupervisory Board

VALUE FOR MONEY*

OGCs Purpose and AgendaOGCs vision is to work with Central Civil Government as a catalyst to achieve best value for money in commercial activities

VALUE FOR MONEY*

OGCs Objectives:From 1999 2002 1.43 billion value for money improvements.From 2002 2006Deliver 4.29 billion of value for money gains in civil government procurement through the Office of Government Commerce

Agreed measurement methodologyDepartments can keep their contribution

VALUE FOR MONEY*

Major IssuesImproving DeliverySmall and Medium size enterprisese Agenda

VALUE FOR MONEY*

OGCbuying.solutionsOGCbuying.solutions is a trading arm of the Office of Government Commerce.Agencys role is to deliver value for money gains for the public sectorManage 2b of public expenditure through central arrangementsRealising 233m of savings to the public purse in 2002

VALUE FOR MONEY*

What are Memoranda of Understanding?Aggregate demand to save public money and lower cost of sale for supplierVoluntary agreements, not procurementsSpecify pricing and terms for whole public sectorOperate within existing contractual and procurement frameworks

VALUE FOR MONEY*

The Microsoft MoUSigned in February 2002 for 3 yearsSpecifies pricing and terms on Enterprise Agreement 6.0, Select Agreement 6.0 and Software Assurance3 year payment schedule on Enterprise licensesSavings to date are 71.5m over pre-MoU pricingCovers up to 1.5 million desktops

VALUE FOR MONEY*

Government Procurement Card History GPC 1 launched in 1997Originally available to all Central Civil Government DepartmentsVisa Purchasing cardMethod of paying for low value goods and servicesVisa Corporate Card Travel and SubsistenceOriginal contract let for 5 years and expired January 2003GPC 2 contract let in February 2003

VALUE FOR MONEY*

SavingsProcess efficiency savings = Time / Environment / MonetaryKPMG Analysis 1997Review of all Central Government DepartmentsAverage savings figure = 40 per transaction

VALUE FOR MONEY*

How does GPC save cost?

Office of Government Commerce

VALUE FOR MONEY*

Growth of GPC: Spend & Savings

Chart5

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606108.502

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Sheet1

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Aug-99130.1163.2531999133.2530.116

Aug-00520.43812.27220005212.2720.438

Aug-011481.12131.391200114831.3911.121

Aug-023252.22162.201200232562.2012.221

Aug-036063.875108.5022003606108.5023.875

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Growth of GPC: Spend & Savings

MBD0011030E.xls

All Data

GPC SpendNov-97Dec-97Jan-98Feb-98Mar-98Apr-98May-98Jun-98Jul-98Aug-98Sep-98Oct-98Nov-98Dec-98Jan-99Feb-99Mar-99Apr-99May-99Jun-99Jul-99Aug-99Sep-99Oct-99Nov-99Dec-99Jan-00Feb-00Mar-00Apr-00May-00Jun-00Jul-00Aug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

Monthly Spend112,000129,000138,848193,275218,103292,787302,996232,576291,432397,686437,120496,148496,081732,041978,1831,080,4031,328,7411,509,8641,841,5132,051,5852,037,9402,392,4452,615,7902,670,0002,229,2273,394,2743,690,0003,548,7673,508,2614,310,4564,648,4854,669,8094,972,7455,509,6136,373,1136,078,6065,685,6068,138,7748,649,6127,832,9287,684,5268,218,4398,602,0998,375,1049,056,00110,035,06011,223,78811,024,5309,481,58414,026,15215,962,38413,865,70813,257,72212,282,90314,480,44714,180,00914,761,71018,075,23320,391,82518,790,63516,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,778

Year to date112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,971496,0811,228,1222,206,3053,286,7084,615,4496,125,3137,966,82610,018,41112,056,35114,448,79617,064,58619,734,5862,229,2275,623,5019,313,50112,862,26816,370,52920,680,98525,329,47029,999,27934,972,02440,481,63746,854,75052,933,3565,685,60613,824,38022,473,99230,306,92037,991,44646,209,88554,811,98463,187,08872,243,08982,278,14993,501,937104,526,4679,481,58423,507,73639,470,12053,335,82866,593,55078,876,45393,356,900107,536,909122,298,619140,373,852160,765,677179,556,31216,933,45342,722,30269,175,54794,143,118113,576,133135,581,197157,417,975

Year To Date % on same period last yearUp 200% on Aug-99Up 191% on Sep-99Up 175% on Nov-99Up 168% on 1999Up 155% on Jan-00Up 140% on Feb-00Up 134% on Mar-00Up 121% on Apr-00Up 119% on May-00Up 88% on Jun-00Up 85% on Jul-00166.7647037097

Cumulative Grand Total0.0112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,9713,738,0524,470,0935,448,2766,528,6797,857,4209,367,28411,208,79713,260,38215,298,32217,690,76720,306,55722,976,55725,205,78428,600,05832,290,05835,838,82539,347,08643,657,54248,306,02752,975,83657,948,58163,458,19469,831,30775,909,91381,595,51989,734,29398,383,905106,216,833113,901,359122,119,798130,721,897139,097,001148,153,002158,188,062169,411,850180,436,380189,917,964203,944,116219,906,500233,772,208247,029,930259,312,833273,793,280287,973,289302,734,999320,810,232341,202,057359,992,692376,926,145402,714,994429,168,239454,135,810473,568,825495,573,889517,410,667

GPC Transactions

Monthly Transactions6088089931,4631,8602,4222,8162,6402,7293,5134,0234,5854,6806,4738,40210,04712,61613,88215,69915,92816,11618,93521,02622,08018,14225,55027,00028,39330,19338,11439,39537,17237,31042,45350,11445,37938,98155,54255,65953,47451,23056,11356,92156,00356,01560,48070,62767,69355,95279,65977,17476,16179,85374,96986,18983,03989,801103,477125,551109,36191,722133,294126,539118,915113,426126,964127,715

Year to date6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,4604,68011,15319,55529,60242,21856,10071,79987,727103,843122,778143,804165,88418,14243,69270,69299,085129,278167,392206,787243,959281,269323,722373,836419,21538,98194,523150,182203,656254,886310,999367,920423,923479,938540,418611,045678,73855,952135,611212,785288,946368,799443,768529,957612,996702,797806,274931,8251,041,18691,722225,016351,555470,470583,896710,860838,575

Year To Date % on same period last yearUp 277% on Aug-00Up 160% on sameUp 152% on sameUp 115% on Jan-00Up 117% on Feb-00Up 105% on Mar-00Up 89% on Apr-00Up 70% on May-00Up 50% on Jun-00Up 44% on Jul-00

Cumulative Grand Total6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,46033,14039,61348,01558,06270,67884,560100,259116,187132,303151,238172,264194,344212,469238,019265,019293,454323,647361,761401,156437,027474,337516,790566,904612,283651,261706,806762,465815,939867,169923,282980,2031,036,2061,092,2211,152,7011,223,3281,295,3521,351,3041,430,9631,508,1371,584,2981,664,1511,739,1201,825,3091,908,3481,998,1492,101,6262,227,1772,336,5382,428,2602,561,5542,688,0932,807,0082,920,4343,047,3983,175,113

Average Transaction Value ()184.21159.65159149138133127119117116115114113114114112109109111114126126.35124.40120.92122.87132.84136.66124.98116.19113.09117.99125.62133.28129.78127.17134145.85146.53155.40146.48150.00146.46151.12149.54161.67165.92158.91162.86169.45176.07206.84179.69166.03163.84168.01170.76164.38174.68162.42171.82184.61193.47209.05209.96171.33173.32170.98

Cards (End Month)4775075306757779019521,0001,2471,4011,5831,8723,0623,4004,1244,5094,7775,1775,3835,6476,3477,1327,4677,0327,6127,9748,8009,3269,80110,77211,04211,54011,98412,18312,84613,56314,25914,75715,29415,70015,70016,87816,95817,75218,60619,12021,33321,68122,23922,79723,48425,58026,25726,93527,52827,83928,40328,61030,22530,77431,42231,49132,03231,99032,91033,27133,284

Programmes34 implementing34 implementing32 implementing32 implementing18 Implementing125135143139144148152148155149158159158158164165170172175173173175175176177178186188195197199

T & S SpendNov-97Dec-97Jan-98Feb-98Mar-98Apr-98May-98Jun-98Jul-98Aug-98Sep-98Oct-98Nov-98Dec-98Jan-99Feb-99Mar-99Apr-99May-99Jun-99Jul-99Aug-99Sep-99Oct-99Nov-99Dec-99Jan-00Feb-00Mar-00Apr-00May-00Jun-00Jul-00Aug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03

Monthly Spend546,410806,565403,485695,142818,381823,255824,590864,0152,455,0282,032,6391,951,0732,300,4202,455,792.002,493,9451,637,3222,253,1282,686,6292,623,8712,512,5082,717,8532,796,9132,332,1902,199,5682,601,5792,663,7032,736,0401,747,9082,593,9592,593,6732,943,1542,315,2272,971,1762,776,930

Year to Date5,942,6406,749,205403,4851,098,6271,917,0082,740,2633,564,8534,428,8686,883,8968,916,62510,867,69813,168,11815,623,910.0018,117,8551,637,3223,890,4506,577,0799,200,95011,713,45814,431,31117,228,22419,560,41421,759,98222,358,03725,021,74027,757,7801,747,9084,341,8676,935,5409,878,69412,193,92115,165,09717,942,027

Year To Date % on same period last year

Cumulative Grand Total19,755,17722,008,30524,694,93427,318,80529,831,31332,549,16635,346,07937,678,26939,877,83742,479,41645,143,11947,879,15949,627,06752,221,02654,814,69957,757,85360,073,08063,044,25665,821,186

T & S Transactions

Monthly Transactions4,4506,5683,2865,6616,6646,7046,7187,03619,99216,55215,88818,73319,99820,30913,84218,34121,13319,79819,58921,47822,66720,77419,43123,15924,04523,88116,53223,27323,25023,32219,37224,88224,465

Year to Date4,4506,5683,28613,84232,18353,31673,11492,703114,181136,848157,622177,053200,212224,257248,13816,53239,80563,05586,377105,749130,631155,096

Year To Date % on same period last year

Cumulative Grand Total13,84232,18353,31673,11492,703114,181136,848157,622177,053200,212224,257248,138264,670287,943311,193334,515353,887378,769403,234

Average Transaction Value ()122.79122.80122.79122.79122.81122.80122.74122.80122.80122.80122.80122.80122.80122.80118.29122.85127.13132.53128.26126.54123.39112.26113.20112.34110.78114.57105.73111.46111.56126.20119.51119.41113.51

Cards (End Month)1,5951,6241,7341,7421,9802,0322,0472,0766,1976,1976,1976,1976,1976,0275,7835,8665,9976,3377,4527,6487,7867,8957,8978,0678,1718,2838,3338,8899,0758,8898,5058,6698,679

Programmes26273032323333353637363637343636364040404043

TOTAL (GPC / T & S)Jan-98Feb-98Mar-98Apr-98May-98Jun-98Jul-98Aug-98Sep-98Oct-98Nov-98Dec-98Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03

Total SpendMonthly112,000129,000138,848193,275218,103292,787302,996232,576291,432397,686437,120496,148496,081732,041978,1831,080,4031,328,7411,509,8641,841,5132,051,5852,037,9402,392,4452,615,7902,670,0002,229,2273,394,2743,690,0003,548,7673,508,2614,310,4564,648,4854,669,8095,519,1556,316,1786,373,1136,078,6066,089,0918,833,9169,467,9938,656,1838,509,1169,082,45411,057,12710,407,74311,007,07412,335,48013,679,58013,518,47511,118,90616,279,28018,649,01316,489,57915,770,23015,000,75617,277,36016,512,19916,961,27820,676,81223,055,52821,526,67518,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,708

Year to Date112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,971496,0811,228,1222,206,3053,286,7084,615,4496,125,3137,966,82610,018,41112,056,35114,448,79617,064,58619,734,5862,229,2275,623,5019,313,50112,862,26816,370,52920,680,98525,329,47029,999,27935,518,43441,834,61248,207,72554,286,3316,089,09114,923,00724,391,00033,047,18341,556,29950,638,75361,695,88072,103,62383,110,69795,446,177109,125,757122,644,23211,118,90627,398,18646,047,19962,536,77878,307,00893,307,764110,585,124127,097,323144,058,601164,735,413187,790,941209,317,61618,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,002

Cumulative Grand Total112,000241,000379,848573,123791,2261,084,0131,387,0091,619,5851,911,0172,308,7032,745,8233,241,9713,738,0524,470,0935,448,2766,528,6797,857,4209,367,28411,208,79713,260,38215,298,32217,690,76720,306,55722,976,55725,205,78428,600,05832,290,05835,838,82539,347,08643,657,54248,306,02752,975,83658,494,99164,811,16971,184,28277,262,88882,017,40290,851,318100,319,311103,975,494109,786,926126,567,228137,624,355148,032,188159,039,262171,374,742185,054,322198,572,797209,691,703225,970,983244,619,996261,109,575276,879,805291,880,561309,157,921325,670,120342,631,398363,308,210386,363,738407,890,413426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,415

Total TransactionsMonthly6088089931,4631,8602,4222,8162,6402,7293,5134,0234,5854,6806,4738,40210,04712,61613,88215,69915,92816,11618,93521,02622,08018,14225,55027,00028,39330,19338,11439,39537,17241,76049,02150,11445,37942,26761,20362,32360,17857,94863,14976,91372,55571,90379,21390,62588,00269,79498,00098,30795,95999,44296,447108,856103,813109,232126,636149,596133,242108,254156,567149,789142,237132,798151,846152,180

Year to Date6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,4604,68011,15319,55529,60242,21856,10071,79987,727103,843122,778143,804165,884184,026209,576236,576264,969295,162333,276372,671409,843451,603500,624550,738596,11742,267103,470165,793225,971283,919347,068423,981496,536568,439647,652738,277826,27969,794167,794266,101362,060461,502557,949666,805770,618879,8501,006,4861,156,0821,289,324108,254264,821414,610556,847689,645841,491993,671

Cumulative Grand Total6081,4162,4093,8725,7328,15410,97013,61016,33919,85223,87528,46033,14039,61348,01558,06270,67884,560100,259116,187132,303151,238172,264194,344212,486238,036265,036293,429323,622361,736401,131438,303480,063529,084579,198624,577666,844728,047790,370850,548908,496971,6451,048,5581,121,1131,193,0161,272,2291,362,8541,450,8561,520,6501,618,6501,716,9571,812,9161,912,3582,008,8052,117,6612,221,4742,330,7062,457,3422,606,9382,740,1802,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,851

Total SavingsMonthly17,02422,62427,80440,96452,08067,81678,84873,92076,41298,364112,644128,380131,040181,244235,256281,316353,248388,696439,572445,984451,248530,180588,728618,240507,976715,400756,000795,004845,4041,067,1921,103,0601,040,8161,169,2801,372,5881,403,1921,270,6121,183,4761,713,6841,745,0441,684,9841,622,5441,768,1722,153,5642,031,5402,013,2842,217,9642,537,5002,464,0561,954,2322,744,0002,752,5962,686,8522,784,3762,700,5163,047,9682,906,7643,058,4963,545,8084,188,6883,730,7763,031,1124,383,8764,194,0923,982,6363,718,3444,251,6884,261,040

Year to Date1,183,4762,897,1604,642,2046,327,1887,949,7329,717,90411,871,46813,903,00815,916,29218,134,25620,671,75623,135,8121,954,2324,698,2327,450,82810,137,68012,922,05615,622,57218,670,54021,577,30424,635,80028,181,60832,370,29636,101,0723,031,1127,414,98811,609,08015,591,71619,310,06023,561,74827,822,788

Cumulative Grand Total17,02439,64867,452108,416160,496228,312307,160381,080457,492555,856668,500796,880927,9201,109,1641,344,4201,625,7361,978,9842,367,6802,807,2523,253,2363,704,4844,234,6644,823,3925,441,6325,949,6086,665,0087,421,0088,216,0129,061,41610,128,60811,231,66812,272,48413,441,76414,814,35216,217,54417,488,15618,671,63220,385,31622,130,36023,815,34425,437,88827,206,06029,359,62431,391,16433,404,44835,622,41238,159,91240,623,96842,578,20045,322,20048,074,79650,761,64853,546,02456,246,54059,294,50862,201,27265,259,76868,805,57672,994,26476,725,04079,756,15284,140,02888,334,12092,316,75696,035,100100,286,788104,547,828

Total CardsCards4775075306757779019521,0001,2471,4011,5831,8723,0623,4004,1244,5094,7775,1775,3835,6476,3477,1327,4677,0327,6127,9748,8009,3269,80110,77211,04211,54013,57913,80712,84613,56315,99316,49917,27417,73217,74718,95423,15523,94924,80325,31727,53027,70828,02228,66329,48131,91733,70934,58335,31435,73436,30036,67738,39639,05739,75540,38041,10740,87941,41541,94041,963

Stats for 2003

Summary of Stats for 2003

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0

GPC Transactions 200391,722133,294126,539118,915113,426126,964127,71500000

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

Cumulative Grand Spend376,926,145402,714,994429,168,239454,135,810473,568,825495,573,889517,410,6670.00.00.00.00.0

2003 Year To Date - Savings3,031,1127,414,98811,609,08015,591,71619,310,06023,561,74827,822,7880.00.00.00.00.0

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

GPC & T&S Spend18,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,7080.00.00.00.00.0

GPC & T&S YTD18,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,0020.00.00.00.00.0

GPC & T&S Cumulative426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,4150.00.00.00.00.0

GPC & T&S Transactions108,254156,567149,789142,237132,798151,846152,1800.00.00.00.00.0

GPC & T&S YTD Transactions108,254264,821414,610556,847689,645841,491993,6710.00.00.00.00.0

GPC & T&S Cumulative Transactions2,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,8510.00.00.00.00.0

&A

&C&P

Stats for 2003

1693345391722

25788849133294

26453245126539

24967571118915

19433015113426

22005064126964

21836778127715

00

00

00

00

00

&A

Page &P

GPC Spend

GPC Transactions 2003

Month

Spend

Transactions

2003 GPC Spend & Transactions

Q1Info 98-03

18681361108254

28382808156567

29046918149789

27910725142237

21748242132798

24976240151846

24613708152180

00

00

00

00

00

&A

Page &P

GPC & T&S Spend

GPC & T&S Transactions

Q2 Info 98-03

00

00

00

00

00

00

00

00

00

00

00

00

&A

Page &P

GPC & T&S YTD

GPC & T&S Cumulative

Month

Year to Date Spend

Cumulative Spend

GPC Year To Date & Cumulative Spend

Chart3

00

00

00

00

00

00

00

00

00

00

00

00

&A

Page &P

Cumulative Grand Spend

2003 Year To Date - Savings

Cumulative

2003 Year To Date

Cumulative Grand Spend & 2003 Year To Date Comparison

Sheet1

Comparison of Q1 information (Jan-Mar) 1998 - 2003

199819992000200120022003% Change

Total Spend379,8482,206,3059,313,50124,391,00046,459,42276,111,087190%

Total transactions2,40919,55570,692165,793266,101414,610161%

Total no of cards5304,1248,80017,27429,48141,107170%

&A

&C&P

Sheet1

3798482409

220630519555

931350170692

24391000165793

46459422266101

76111087414610

&A

Page &P

Total Spend

Total transactions

Q1 Year

Spend

Transactions

Q1 Comparison of Total Spend & Transactions

Q3 Info 98-03

Comparison of Q2 information (Apr-Jun) 1998 - 2003

199819992000200120022003% Change

Total Spend827,0045,931,03814,291,03926,247,75347,260,56574,635,207180%

Total transactions8,18547,743113,877181,275291,848426,881161%

Total no of cards1,2476,34711,98418,95434,58341,940182%

&A

&C&P

Q3 Info 98-03

00

00

00

00

00

&A

Page &P

Total Spend

Total transactions

Q2 Year

Spend

Transactions

Q2 Comparison of Total Spend & Transactions

Q4 Info 98-03

111189061868136169794108254

162792802838280898000156567

186490132904691898307149789

164895792791072595959142237

157702302174824299442132798

150007562497624096447151846

1727736024613708108856152180

1651219901038130

1696127801092320

&A

Page &P

Spend 2002

Spend 2003

Transactions 2002

Transactions 2003

Month

Spend

Transactions

Growth Statistics Jan '02 to Sep '03

Qtrly Spend & Graph

Figures for 2003JanFebMarAprMayJunJulAugSepTotal to date

Spend 200211,118,90616,279,28018,649,01316,489,57915,770,23015,000,75617,277,36016,512,19916,961,278144,058,601

Spend 200318,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,70800175,360,002

Transactions 200269,79498,00098,30795,95999,44296,447108,856103,813109,232879,850

Transactions 2003108,254156,567149,789142,237132,798151,846152,18000993,671

Cards 200228,02228,66329,48131,91733,70934,58335,31435,73436,300

Cards 200339755403804110740879414154194041963

Qtrly Spend & Graph

1693345391722

25788849133294

26453245126539

24967571118915

19433015113426

22005064126964

21836778127715

00

00

00

00

00

&A

Page &P

GPC Spend 2003

GPC Transactions 2003

Month

Spend

Transactions

2003 Monthly Spend & Transactions

2003

1111890669794

1627928098000

1864901398307

1648957995959

1577023099442

1500075696447

17277360108856

16512199103813

16961278109232

20676812126636

23055528149596

21526675133242

GPC Spend 2002

GPC Transactions 2002

Month

Spend

Transactions

2003 Monthly Spend & Transactions

2003 figures

1111890618681361

1627928028382808

1864901329046918

1648957927910725

1577023021748242

1500075624976240

1727736024613708

165121990

169612780

206768120

230555280

215266750

GPC Spend 2002

GPC Spend 2003

Since OGC Takeover

Comparison of Q3 information (Jul-Sep) 1998 - 2000

19981999200020012002% Change

Total Spend827,0045,931,03814,291,03932,471,94450,750,837156%

Total transactions8,18547,743113,877168,939321,901191%

Total no of cards1,2476,34711,98418,60636,300195%

&A

&C&P

Since OGC Takeover

8270048185

593103847743

14291039113877

32471944168939

50750837321901

&A

Page &P

Total Spend

Total transactions

Q3 Years 1998 - 2002

Spend

Transactions

Q3 Comparison of Total Spend & Transactions

Mth June Comparison

Comparison of Q4 information (Oct-Dec) 1998 - 2000

19981999200020012002% Change

Total Spend1,330,9547,678,23517,961,33239,533,53565,259,01565%

Total transactions12,12162,041144,514257,840409,47463%

Total no of cards1,8727,03213,56327,70839,05771%

&A

&C&P

Mth June Comparison

133095412121

767823562041

17961332144514

39533535257840

65259015409474

&A

Page &P

Total Spend

Total transactions

Q4 Year

Spend

Transactions

Q4 Comparison of Total Spend & Transactions

Mth August Comparison

MonthMar-98Jun-98Sep-98Dec-98Mar-99Jun-99Sep-99Dec-99Mar-00Jun-00Sep-00Dec-00Mar-01Jun-01Sep-01Dec-01Mar-02Jun-02Sep-02Dec-02Mar-03Apr-03May-03Jun-03Jul-03

Monthly Spend138,848292,787291,432496,148978,1831,509,8642,037,9402,670,0003,690,0004,310,4564,972,7456,078,6068,649,6129,082,45411,007,07413,518,47519,061,23615,000,75616,961,27821,526,67529,046,91827,910,72521,748,24224,976,24024,613,708

Cumulative Spend379,8481,084,0131,911,0173,241,9715,448,2769,367,28415,298,32222,976,55732,297,06043,671,69957,966,97975,928,58198,402,303126,567,228159,039,262198,572,797217,634,033291,880,561342,631,398407,890,413484,001,500511,912,225533,660,467558,636,707583,250,415

&A

&C&P

Mth August Comparison

138848379848

2927871084013

2914321911017

4961483241971

9781835448276

15098649367284

203794015298322

267000022976557

369000032297060

431045643671699

497274557966979

607860675928581

864961298402303

9082454126567228

11007074159039262

13518475198572797

19061236217634033

15000756291880561

16961278342631398

21526675407890413

29046918484001500

&CGovernment Procurement Card - Quaterly Spend & Graph

Page &P

Monthly Spend

Cumulative Spend

Monthly Spend

Cumulative Spend

Government Procurement Card Cumulative & Quarterly Spend

T&S Mthly Spend

Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total to date

GPC Spend 200316,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0157,417,975

GPC Transactions 200391,722133,294126,539118,915113,426126,964127,7150.00.00.00.00.0838,575

Figures for 2002Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

GPC Spend 200211,118,90616,279,28018,649,01316,489,57915,770,23015,000,75617,277,36016,512,19916,961,27820,676,81223,055,52821,526,675

GPC Transactions 2002697949800098307959599944296447108856103813109232126636149596133,242

Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total to dateTarget for year

GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0157,417,975300,000,000

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target Dec-03

Figures for 2003 YTD16,933,45342,722,30269,175,54794,143,118113,576,133135,581,197157,417,975300,000,000

Target300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000300,000,000

&A

&C&P

T&S Mthly Spend

1693345391722

25788849133294

26453245126539

24967571118915

19433015113426

22005064126964

21836778127715

00

00

00

00

00

&A

Page &P

GPC Spend 2003

GPC Transactions 2003

Month

Spend

Transactions

2003 Monthly Spend & Transactions

1111890669794

1627928098000

1864901398307

1648957995959

1577023099442

1500075696447

17277360108856

16512199103813

16961278109232

20676812126636

23055528149596

21526675133242

GPC Spend 2002

GPC Transactions 2002

Month

Spend

Transactions

2003 Monthly Spend & Transactions

Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0

GPC Transactions 200191,722133,294126,539118,915113,426126,964127,7150.00.00.00.00.0

Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total To DateTarget for Year

GPC Spend16,933,45325,788,84926,453,24524,967,57119,433,01522,005,06421,836,7780.00.00.00.00.0157,417,975150,000,000

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target Dec-03

Cumulative376,926,145402,714,994429,168,239454,135,810473,568,825495,573,889517,410,6670.00.00.00.00.0150,000,000

2003 Year To Date16,933,45342,722,30269,175,54794,143,118113,576,133135,581,197157,417,975157,417,975157,417,975157,417,975157,417,975157,417,975

Target150,000,000150,000,000150,000,000150,000,000150,000,000.00150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000

Figures for 2003Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Total To DateTarget for Year

GPC & T&S Spend (Total)18,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,7080.00.00.00.00.0175,360,002150,000,000

Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target Dec-03

Cumulative Grand Total GPC & T&S426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,4150.00.00.00.00.0150,000,000

2003 Year To Date18,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,0020.00.00.00.00.0

Target150,000,000150,000,000150,000,000150,000,000150,000,000.00150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000150,000,000

MonthJan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03

Monthly Transactions108,254156,567149,789142,237132,798151,846152,1800.00.00.00.00.0

Year to Date108,254264,821414,610556,847689,645841,491993,6710.00.00.00.00.0

Total for Programme2,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,8510.00.00.00.00.0

Cards39,75540,38041,10740,87941,41541,94041,9630.00.00.00.00.0

Programmes1771781861881951971990.00.00.00.00.0

Monthly Savings3,031,1124,383,8764,194,0923,982,6363,718,3444,251,6884,261,0400.00.00.00.00.0

Cumulative Grand Total (Savings)79,756,15284,140,02888,334,12092,316,75696,035,100100,286,788104,547,8280.00.00.00.00.0

Average Mthly Department Saving17,12524,62922,54921,18419,06821,58221,4120.00.00.00.00.0

Average Department Saving450,600472,697474,915491,047492,488509,070525,3660.00.00.00.00.0

Potential Department Saving9,090,909.09

&A

&C&P

1693345391722

25788849133294

26453245126539

24967571118915

19433015113426

22005064126964

21836778127715

00

00

00

00

00

&A

Page &P

GPC Spend GPC Transactions 2001

GPC Transactions 2001

Month

Spend

Transactions

2003 Monthly Spend & Transactions

1693345337692614516933453

4272230240271499425788849

6917554742916823926453245

9414311845413581024967571

11357613347356882519433015

13558119749557388922005064

15741797551741066721836778

15741797500

15741797500

15741797500

15741797500

15741797500

&C2001

Page &P

2003 Year To Date

Cumulative

GPC Spend

222922718681361

562350147064169

931350176111087

12862268104021812

16370529125770054

20680985150746294

25329470175360002

299992790

355184340

418346120

482077250

542863310

2003 Year To Date

Year To Date Spend

2003 Cumulative Spend

GPC Spend since OGC took over August 2000

MonthAug-00Sep-00Oct-00Nov-00Dec-00Jan-01Feb-01Mar-01Apr-01May-01Jun-01Jul-01Aug-01Sep-01Oct-01Nov-01Dec-01Jan-02Feb-02Mar-02Apr-02May-02Jun-02Jul-02Aug-02Sep-02Oct-02Nov-02Dec-02Jan-03Feb-03Mar-03Apr-03May-03Jun-03Jul-03Aug-03Sep-03Oct-03Nov-03Dec-03Target

Spend4,669,8094,972,7455,509,6136,373,1136,078,6066,089,0918,833,9169,467,9938,656,1838,509,1169,082,45411,057,12710,407,74311,007,07412,335,48013,679,58013,518,47511,118,90616,279,28029,046,91816,489,57915,770,23015,000,75617,277,36016,512,19916,961,27820,676,81223,055,52821,526,67518,681,36128,382,80829,046,91827,910,72521,748,24224,976,24024,613,7080.00.00.00.00.0-

Year to Date29,999,27934,972,02440,481,63746,854,75052,933,3566,089,09114,923,00724,391,00033,047,18338,246,34250,638,75361,695,88072,103,71383,110,78795,446,267109,125,847122,644,32211,118,90616,279,28076,111,08762,536,77878,307,00893,307,764110,585,124127,097,323144,058,601164,735,413187,790,941209,317,61618,681,36147,064,16976,111,087104,021,812125,770,054150,746,294175,360,0020.00.00.00.00.0150,000,000

Total for Programme52,994,23457,966,97963,476,59269,849,70575,928,58182,017,40290,851,318100,319,311103,975,494109,786,926126,567,228137,624,355148,032,188159,039,262171,374,742185,054,322198,572,797209,691,703225,970,983484,001,500261,109,575276,879,805291,880,561309,157,921325,670,120342,631,398363,308,210386,363,738407,890,413426,571,774454,954,582484,001,500511,912,225533,660,467558,636,707583,250,4150.00.00.00.00.0300,000,000

Trans37,17237,31042,45350,11445,37938,98155,54255,65953,47451,23056,11356,92156,00356,01560,48070,62767,69369,79498,00098,30795,95999,44296,447108,856103,813109,232126,636149,596133,242108,254156,567149,789142,237132,798151,846152,1800.00.00.00.00.0-

Year to Date243,304280,614323,067373,181418,56038,98194,523150,182203,656254,886310,999367,920423,923479,938540,418611,045678,73869,79498,000266,101362,060461,502557,949666,805770,618879,8501,006,4861,156,0821,289,324108,254264,821414,610556,847689,645841,491993,6710.00.00.00.00.0-

Total for Programme437,027474,337516,790566,904612,283651,265706,806762,465815,939867,169923,282980,2031,036,2061,092,2211,152,7011,223,3281,295,3521,362,0911,460,0911,558,3981,812,9161,912,3582,008,8052,117,6612,221,4742,330,7062,457,3422,606,9382,740,1802,848,4343,005,0013,154,7903,297,0273,429,8253,581,6713,733,8510.00.00.00.00.02,500,000

Savings12,236,75613,281,43614,470,12015,873,31217,143,92418,235,42019,790,56821,349,02022,846,29224,280,73225,851,89627,445,68429,013,76830,582,18832,275,62834,253,18436,269,85638,138,54840,882,54848,074,79650,761,64853,546,02456,246,54059,294,50862,201,27265,259,76868,805,57672,994,26476,725,04079,756,15284,140,02888,334,12092,316,75696,035,100100,286,788104,547,8280.00.00.00.00.070,000,000

Cards11,54011,98412,18312,84613,56315,99316,49917,27417,73217,74718,95423,15523,15524,00924,52326,73627,70828,02228,66329,48131,91733,70934,58335,31435,73436,30036,67738,39639,05739,75540,38041,10740,87941,41541,94041,9630.00.00.00.00.0-

Programmes1121151151181211251351431391441481521481551491581591581581641651701721751731731751751761771781861881951971990.00.00.00.00.0-

&A

&C&P

4669809

4972745

5509613

6373113

6078606

6089091

8833916

9467993

8656183

8509116

9082454

11057127

10407743

11007074

12335480

13679580

13518475

11118906

16279280

29046918

16489579

15770230

15000756

17277360

16512199

16961278

Spend

Month

Spend

Monthly Spend Since OGC tookover

29999279

34972024

40481637

46854750

52933356

Year To Date Cumulative Total

Month

Spend

2000 Year to DateSpend Since OGC Tookover

0

0

0

0

0

0

0

0

0

0

0

0

Month

Spend

2001 Year To Date Spend

52994234

57966979

63476592

69849705

75928581

82017402

90851318

100319311

103975494

109786926

126567228

137624355

148032188

159039262

171374742

185054322

198572797

209691703

225970983

484001500

261109575

276879805

291880561

309157921

325670120

342631398

Month

Cumulative Spend

Cumulative Spend From When OGC Tookover

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Month

Transactions

Monthly Transactions Since OGC Tookover

243304

280614

323067

373181

418560

Transactions

Month

Transactions

2000 Year to Date Transactions Since OGC Tookover

0

0

0

0

0

0

0

0

0

0

0

0

Month

Transactions

2001 Year to Date Transactions

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Month

Cumulative Transactions

Cumulative Transactions since OGC Tookover

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Month

Savings

Savings Since OGC Tookover

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Month

Cards

Card Totals Since OGC Tookover

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

#

Month

Programmes

Total Number of Programmes Since OGC Tookover

MonthJun-98Jun-99Jun-00Jun-01Jun-02

Spend292,7871,509,8644,310,4569,082,45415,000,756

% Annual Spend9%7.65%7.90%7.40%11.80%

% Programme Spend9%6.57%9.80%7.20%5.14%

292787

1509864

4310456

9082454

15000756

Year

Spend

GPC Spend comparison - June 1998 - June 2002

MonthAug-98Aug-99Aug-00Aug-01Aug-02

Spend232,5762,051,5854,669,80910,407,74316,512,199

% Annual Spend7.12%10.40%8.60%8.49%13.00%

% Programme Spend7.12%8.92%6.04%5.24%5.07%

232576

2051585

4669809

10407743

16512199

Year

Spend

GPC Spend comparison -August 1998 - August 2002

403485

695142

818381

823255

824590

864015

2455028

2032639

1951073

2300420

2455792

2493945

1637322

2253128

2686629

2623871

2512508

2717853

2796913

2332190

2199568

T&S

Travel & Subsistence Monthly Spend

VALUE FOR MONEY*

GPC 1 Key Aims & AchievementsAim:To achieve 430m spend by December 2002Achieved:580m cumulative spendAim:To process 2.5m transactions by December 2002, resulting in a process efficiency saving of 100mAchieved:110m in process efficiency savings

VALUE FOR MONEY*

The New GPC 2 ContractEU compliant competitive tender resulted in VISA and a consortium of 7 issuing banks being awarded new GPC ContractNew GPC Contract commenced February03 for 5 years, with option to extend for further 2 yearsNow open to wider Public SectorTarget spend - 6.4b2.1b in Central Civil Government4.3b in the Wider Public Sector

VALUE FOR MONEY*

Why the Success? Strategic BenefitsAlthough Non-Mandated it has been successful because:Link to the Modernising Government AgendaGives financial transparency and accountabilityHelps to meet the Prompt Payment InitiativeHelps to adhere to Late Payment LegislationMost cost effective e-payment methodDrives out inefficiencyEndorsed by the Treasury Chief MinisterSaves cost

VALUE FOR MONEY*

Environmentally Friendly Every transaction saves at least 6 pieces of A4 paper 11,500 pieces of paper = 1 tree

WHICH MEANS THATOver 2,000 trees saved in UK to date

Slide 1 - TitleSlide 2 - Notes to be addedSlide 3 - Notes need to be addedSlide 4 - Notes need to be addedSlide 5 - Notes need to be addedSlide 7 - Notes need to be addedSLIDE 8 WHO WE AREBULLET 1 EXECUTIVE AGENCYWe are an executive agency and a trading fund, set up to deliver value-for-money gains across the wider public sector, of the Office of Government Commerce in Her Majestys UK Treasury. We were formed in 2000 by joining together various buying and procurement departments from across UK government.BULLET 2 AGENCY ROLEOur role is to set up legally compliment framework contracts for the use of the wider public sector to ensure that value for money savings can be achieved by, among other things, aggregating demand.BULLET 3 TURNOVERWe are one of the largest procurement organisations in the UK both in the public and private sectors.BULLET 4 SAVINGSOne of our key performance indicators is the level of savings that we achieve.NEW SLIDE Slide 9 - Notes need to be addedSlide 10 - Notes need to be addedSLIDE 12 GPC HISTORY & SCOPEBULLET 1 INITIAL LAUNCHThe GPC programme was a HM Treasury initiative launched in October 1997 as a response to the results of a National Audit Office (NAO) enquiry into the purchase of high volume low value items.It found that the process costs in purchasing such as, requisitioning, obtaining quotes, issuing purchase orders, etc. far outweighed the value of the items being purchased. Indeed one particular item in question stood out. It was a padlock costing 98 pence ie less than one English pound to buy yet it was calculated that existing processes cost some 73.50 (Euro Conversion ??) to buy!! BULLET 2 CCG DEPARTMENTS A competitive tendering exercise resulted in HM Treasury awarding an initial contract to VISA along with a consortium of its UK issuing banks to run the card for Central Government only. The intention was to replace the chequebook and petty cash facilities with the GPC. BULLET 3 - VISA PURCHASING CARDThe original GPC was a branded Visa Purchasing Card and was provided to selected members of staff only to buy low value and/or routinely purchased goods and services directly from suppliers. BULLET 4 - METHOD OF PAYING FOR LOW VALUE GOODS AND SERVICESThe GPC was designed to reduce processing costs through a more streamlined purchasing procedure and to offer greater purchasing controls. Management Information reporting helped managers monitor and evaluate the purchasing activity of each cardholder by supplier, merchant category and price.CONTINUEDBULLET 5 - VISA CORPORATE CARD TRAVEL AND SUBSISTENCEInitial customer feedback highlighted the need to provide a Travel & Subsistence facility. HM Treasury (supported by National Audit Office) agreed that there was a need for a separate T&S facility particularly as there was a requirement to account separately for this type of expenditure. As a result the T&S card was launched under the same Master Agreement with Visa. BULLET 6 CONTRACT LETIt took six years from original launch to the letting of the original GPC 1 contract in January 2003.BULLET 7 GPC 2A second contract was let in February 2003 ensuring continuation of service.NEW SLIDE SLIDE 14 - SAVINGSAs I have already stated one of our key performance indicators is the level of savings that each of our brands manages to declare. Here we look at the savings for the GPC 1 program.BULLET 1 - PROCESS EFFICIENCY SAVINGS = TIME/ENVIRONMENT/MONETARYThe GPC offers departmental organisations the opportunity to free up resources, save process costs and concentrate on the value-adding elements of their work. BULLET 2 - KPMG ANALYSIS 1997As an integral part of the initial research into the possibilities of a GPC, an independent study was commissioned by HM Treasury to look at the potential savings to the Government should they decide to introduce it. The study was carried out by KPMG.BULLET 3 - REVIEW OF ALL CENTRAL GOVERNMENT DEPARTMENTSThe KPMG study looked at 28 central civil government departments and concluded that a department could potentially save over 50%, in process costs, for each transaction. This conclusion estimated that for every transaction using the GPC the public sector would save 28 on process efficiency savings. BULLET 4 - NAO ENDORSED SAVINGS FIGUREThese findings were presented to the UK National Audit Office who endorsed the findings as was re-iterated in the report Modernising Government Report published in 1999. These findings gave the green light to OGC to set about letting an initial contract for the first GPC program.NEW SLIDE Slide 19 Notes need to be addedSLIDE 17 GROWTH STATISTICS (based on s Sterling)As illustrated previously, the original Government Procurement Card programme was a tremendous success and I am please to tell you that the programme is still seeing considerable growth in spend and transactions therefore increasing the savings to the public purse. The graph illustrates the level of growth seen over the past 5 years.In August this year the programme spend passed the 600 million mark and we are expecting an annual increase of 80%. For the past 6 months the programme has seen an average spend of 21 million a month.The savings figure has also passed the 100 million and continues to grow. Every month we are seeing on average 145,000 transactions - each one saving the taxpayer 28.With the programme being opened up to the Wider Public Sector, there is no reason why we will not continue to see this type of growth for the immediate future.NEW SLIDE

SLIDE 5 KEY AIMS & ACHIEVEMENTSBULLET 1 INITIAL SPEND TARGETThe initial target was to achieve 429m cumulative spend by December 2002. It was in fact achieved four months early in July 2002BULLET 2 INITIAL TRANSACTION TARGETThe initial target to process 2.5 million transactions by December 2002 was achieved on time. This resulted in a process efficiency saving of 110 million based on the savings figure of 28 per transaction processed using the GPC.These targets were set in 1997 when no actual information was known. When the targets were set they were perceived to be extremely ambitious by the card industry and challenging. We were very proud that all were achieved and that targets smashed!.NEW SLIDE SLIDE 15 THE NEW GPC 2 CONTRACTBULLET 1 OJEU PROCESSAfter a competitive tender Visa and a consortium of seven issuing banks were awarded the contract for the second GPC programme. The increase to seven issuing banks has meant that we have enhanced competition for the wider public sector and provided customers with a real choice.BULLET 2 START DATEThe Contract duration is for 5 years plus up to a possible further 2 years extension. It is envisaged that during this contracted time Card Issuers will continue to develop the product with the reassurance of a secure contract for a guaranteed period. BULLET 3 WIDER PUBLIC SECTORDue to the success of the first programme we were receiving requests from UK local authorities to be included into the programme. As a result we extended GPC 2 into the wider public sector thus allowing greater leverage and broadening the scope of efficiencies gained. BULLET 4 TARGET SPENDThe conservative estimate is that the potential spend for GPC 2 is 2.1b for Central Civil Government and 4.3b for the wider public sector. NEW SLIDE

SLIDE 18 WHY THE SUCCESS? STRATEGIC BENEFITSWhilst there is no mandate requiring the public sector to use GPC, the following areas are all designed to promote the fact that the GPC should be the first choice ordering payment tool for all lower value procurement.BULLET 1 - LINK TO THE MODERNISING GOVERNMENT AGENDAThe White Paper Modernising Government emphasised the importance of taxpayers achieving best value from public money. In order to achieve this a programme to modernise the way department and agencies carry out their business was set out.Improving the efficiency and cost effectiveness of government procurement is an important part of the Modernising Government agenda. The GPC programme can assist the public sector organisations to achieve this modernisation.BULLET 2 - GIVES FINANCIAL TRANSPARENCY AND ACCOUNTABILITYAn initial area of concern was the use of a payment card within government accounting rules. To ensure that the GPC would be supported within the government structure, the Treasury Officer of Accounts (TAO) and the National Audit Office were briefed on the purpose and benefits of the GPC. Both organisations endorsed a generic guidance note on the use of procurement cards and this guidance was issued at the launch of the initial GPC thus overcoming any fears that Finance Directors may have had. BULLET 3 - PROMPT PAYMENT INITIATIVE The GPC is also helping the UK Government to pays its bills on time. Smaller companies, in particular, appreciate the benefit of prompt payment on their cash flow and any supplier, no matter the size, benefits from receiving payment within 2-4 days instead of what might be up to 28 days. This in turn assists with our own prompt payment target. BULLET 4 - LATE PAYMENT LEGISLATIONThe UK Late Payment Legislation also puts pressure on organisations to make payments by specific timescales. If these are not adhered to the supplier can fine the department for interest on the outstanding sum. Again, the GPC is helping organisations to negate this legislation through the prompt payment available with the GPC.BULLET 5 - MOST COST EFFECTIVE E-PAYMENT METHODProcurement cards have an important role to play in the future. Electronic commerce has become a major part of business to business purchasing and, whether this is over the Internet or through controlled channels to preferred suppliers, there is still the need for a payments process.Many GPC using organisations are embedding the card with their suppliers meaning that orders can be made electronically in a cardholder not present environment. The use of Virtual cards is expected to grow over the coming years as users share knowledge and best practices.One thing is clear, the GPC is the ideal, low-cost payment mechanism in an electronic environment and is particularly suited for use in Electronic Auctions.BULLET 6 - DRIVES OUT INEFFICIENCYSince the launch of the Government Procurement Card it has been changing the way in which government purchases lower value goods and services. By building on Best Practice in the private sector, by eradicating bureaucratic requisition and payment processes and by facilitating effective collaboration across organisations. Managing change is a responsibility of all of us if we are to improve the efficiency of public procurement and achieve real value for the taxpayer. This means constantly reviewing what we do, and how we do it. Bureaucratic payment and requisition methods are no exception. We believe that the GPC is the perfect enabler to achieve this. BULLET 7 - ENDORSED BY THE TREASURY CHIEF MINISTERA powerful message has also been emanating from HM Treasury. The Chief Secretary to the Treasury PAUSE FOR VIDEO CLIP, `Paul Boateng is on record as saying..Tools like the Government Procurement Card have made it easier for buyers to administer speed up orders and save on bureaucracy and paper. Since February, this card, managed in partnership with Visa, has been made available to buyers across the wider public sector, including local government.NEW SLIDE

SLIDE 20 ENVIRONMENTALLY FRIENDLY3,875,106 Transactions multiplied by 6 = 23,250,636 million pieces of paperDivided by 11,500 = 2021 TreesNEW SLIDE