In an effort to bring down supplier costs, National Treasury’s Office of the Chief Procurement Officer (OCPO) has successfully renegotiated an existing contract with Telkom-owned Business Connexion (BCX).
It is expected that the renegotiated fixed-line telecommunication services contract will save national and provincial departments “hundreds of millions of rands” over the next two years, as part of Treasury's work to effect greater efficiencies in government procurement.
“Under the leadership of Finance Minister Pravin Gordhan, we unwaveringly pursue efficiencies in government procurement to effect major savings,” said chief procurement officer Kenneth Brown in a statement on Monday.
During the 2016/17 financial year, the OCPO committed to renegotiate with government’s top 100 suppliers, with the information and communication technology- (ICT-) related contracts targeted within the “first leg” of the negotiations, along with the construction and travel sectors, and leases.
“In the current tough economic climate, many businesses are reviewing their ICT spend. We are able to look at the total picture and then identify the areas where greater efficiencies are possible. These skills were used to great effect with the government and we are pleased to have been able to come to an agreement,” said BCX CEO Isaac Mophatlane.
BCX has offered the government undisclosed discounted prices for its fixed-line telecommunication services.