The Government already has service-wide contracts

Gary Lee and Khoo Lih-Han (''Pooling basic services and patients' records safe?'' Sept 5) supported the formation of the Centre for Shared Services and further suggested the Government could save by jointly procuring utilities and basic services such as telecommunication and mailing services.

We wish to thank the writers for their interest.

Government agencies are increasingly aggregating their demand for common goods and services to get better value for money and reduce duplication in procurement effort.

The Government has already established service-wide contracts for basic services such as telecommunications, postal and IT management services, and electricity supply.

These contracts have achieved significant savings.For instance, 30 public sector agencies are jointly procuring their electricity supply for 2005 and will realise savings of $8 million this year.

Another bulk contract consolidating the requirements of 13 government agencies for IT infrastructure management services will save $6 million over two years.

Other common goods and services for which Government agencies have aggregated their demand include paper, stationeries, office equipments, food and beverages, printing, courier, catering and laundry services. Average price savings of about 8-9 per cent have been achieved.

The Government is also in the process of aggregating procurement for clothing, office furniture, vehicle maintenance, vector control and freighting services.

FONG YONG KIAN
DIRECTOR (MANAGING FOR EXCELLENCE)
MINISTRY OF FINANCE